Economic Impact 5
Social Culture Impact 6
Political Impact 6
Procter & Gamble (P&G):
Procter and Gamble is well renowned American multinational consumer goods manufacturing company founded in 1837. It is the leading consumer good company in the global market with a range of products varies from beauty products and man grooming products, pet foods, household products, fabric care, baby and a family care product. Procter and Gamble are doing business globally with it’s headquarter located in Cincinnati, Ohio US (KS, 2016).
Procter & Gamble capture market of approximately 80 countries with more than 100,000 employees and has near about 50 brands which are well- known in the consumer market (Loda, 2014, p. 567). P&G touches day to day life of consumer around the world with its brands that include Ariel detergent, Gillette, Pampers, Olay etc, with its multination presence Procter and Gamble face a tough competition from rival companies in direct and indirect form, these competitor companies are Unilever, Johnson & Johnson, Kimberly- Clark Corporation etc
Proctor and Gamble offering varieties of product in FMCG Sector and is consider as one of the leading FMCG companies in the world (KS, 2016, Para 9) The company plans its marketing strategy in such a way that its product can be reachable to each and every consumer in the world, for achieving these aim they maintained a superior quality standard of their product and offer a affordable price to consumers (KS, 2016, Para 11). They offer a wide range of product in different FMCG segments but in this assignment we are talking about baby products.
Baby Care Products:
- Pampers and Luvs – baby wipes and diapers
- Dreft - Liquid Detergent for Kids
Disposable diapers under the brand name Pampers is one of the most revolutionary products of the company which was in the market in 1961 (Loda, 2014).
Disposable diapers launched by P&G under brand name pampers is considered as one of the most revolutionary product, which was launched in market in 1961. Their Pampers diapers are of good quality and aim to provide value for money to consumers, Pamper is one of the leading brands in baby kid’s product all over the globe ("P&G Pampers", 2019). It was the first brand of P&G that makes yearly revenue of 10 billion. The brand is present in more than 100 countries and serving approximately 25 million babies.
Pamper is a brand owned by leading FMCG group P&G that has a global chain for distribution of all its product . As per the vision and mission statement of P&G they want to cover every consumer around the globe (Loda, 2014). They have vast network for distribution of pamper and other products around the world. They have a well- organized distribution strategy for distribution of pampers which is handled with efficiency. Their distribution process is as follow.
- Authorized Distributor
- P&G shops
Their chain of network consist of freight forwarding service that transport and supplies pamper to wholesalers who distribute these products to retailers who are end suppliers to consumers (Payaud, 2013). Pamper have a independent marketing channel that works for the production process for the consumption of consumer.
To meet demand and supply of the market and dispatch products speedily to various outlets pampers have warehouses at appropriate places from where the supply of product can be done easily (Pulido Polo, 2018). The main suppliers of the pampers to end user are provision store, chemist’s shops, malls, and various big markets. For better logistic services and transportation pampers brand have collaboration with DHL courier which work as P&G’s service provider to ensure logistic efficiency (Van Hoof, Weisbrod & Kruse, 2014).
Pamper diapers are also sold on various e-commerce website, where consumer can buy the product while sitting at home and order the diapers at ease.(Leavy, 2013). Apart from this pampers are also available on P&G shop which is an internet-based e-commerce website that allows the company to reach end user directly. The P&G e- commerce website mainly focuses on the American market and has a limited reach in the global market. Thus, pampers approach in distributing the product of the marketing mix mainly depends on retailers. ("Procter & Gamble Company", 2019)
Procter & Gamble always produce quality products and never compromise with its brand value. The pricing strategy of P&G is mainly depended on the quality of products and consumers demand (Pulido Polo, 2018). They follow adjustable and competitive pricing policy in which the products price depends on their market value. For some products, they maintain a price range which is approximately in range of the competitor's products. In this competitive pricing policy, any change in prices of other affects the pricing policies of P&G and to maintain that price range they come up with discounts or gift scheme to counter their competitors (Payaud, 2013).
In baby care products under the brand name pampers P&G focused on Nonprime competition strategy. They mainly focused on quality, packaging, and delivery to differentiate themselves from competitors (Leavy, 2013). They don't compromise in quality, and never reduced the price to increase demands for this product, because of its excellent quality, its consumer doesn't mind to pay a price to buy these baby care products. Pamper present varieties of baby dries and whip product for different age groups of children’s. Sometime in launching of new product with specific body requirement or to cover a new consumer base, pampers follow the penetration pricing policy ("Procter & Gamble Company", 2019). According to this policy, their prices for particular diapers or baby products are lower compared to other products of a similar line without compromising the quality standards so that consumer get attracted to such products which result in higher sales and helps in generating high turnover and consumer database. Pamper also serve high- quality premium category whips and diapers, for these specific high quality products they keep high price with superior quality. These products are mainly for the section of people who can afford premium quality products (Van Hoof, Weisbrod & Kruse, 2014).
Pamper is a brand which is marketed by P&G and is a powerful FMCG company. Pampers follows aggressive marketing strategies. It invest heavy amount on online media and rely on creative ads and heavy branding through online media. (Payaud, 2013)
For effective promotions and marketing Pampers comes up with TV ads that is showing the importance of diapers to the children and the comfort kids are getting with diapers (Neuhaus, 2013). They target these advertisements to middle class and upper middle class young women’s. Moreover for the promotion of diapers and other baby products under the brand name pamper they even sponsored a movie name “Three men and a Baby”. They also contains a YouTube channel where they comes up with creative ads and video to attract more consumers throughout the world. (Payaud, 2013)
Apart from all this promotion techniques they also comes out with creative print advertisements on news papers and health and nutrition magazines (Loda, 2014). They also follow email marketing for directly promotion of pampers, In this e-mail marketing mails sent to mothers with babies with information on nutritional tips for mothers and benefits of diapers to kids , these mails also contain discount coupes to avail discount while purchasing. They also promote themselves by providing free health check-ups and medicines for babies in rural areas ("Procter & Gamble Company", 2019).
P&G have high competition in the local and global market. As free trade policy of European market has a major effect on the market share of P&G over their as other low price brands are expanding in European countries and consumers have varieties of product to choose from a range of different brands (Bradley, 2018, p. 313). Marketing competition is increasing in European countries and P&G is struggling in enhancing their market in countries like the Netherlands, Germany, and France. They are using smaller packages for some products for making it affordable to low and middle-class consumers (Leavy, 2013, p. 14).
A the change in any trade policy of American market there is a vast impact on marketing and policies of P&G, as they are leading FMCG company in use with different brands and varieties changes in economic policies does not affect consumer database of P&G as they are always focusing on the quality of products. (Cian,P. 2014, p. 7)
Social Culture Impact
As P&G deals in FMCG products related to personal, household products and consumer goods their most of the products are focused mainly on women’s. In 175 years they have improved the life of more than 500 people worldwide through sponsoring different programs to social investment (Cain, P. 2014, p. 7).
Baby care products are effects by the culture of countries and areas, P&G always focus on adopting different culture language and ethnicity etc that results in increasing demand for their products in developing countries (Bradley, 2018, p. 327).
Any changes in both international and regional political activities have a diverse effect on the business of the organization. P&G has planned and developed different strategies, which they are using to survive as a leader in different political environment and issues. They plan their strategies according to the political environment of the country so that it cannot affect their business much (Bradley, 2018, p. 324).
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| March 23, 2020