Procter & Gamble Marketing

Introduction

According to Schisgall 2003, Procter & Gamble is a leading multinational company that produces various home based products. The company has a strong customer base in the United States because of its high-quality products. Procter & Gamble has a large target market, which led to diversification of the company’s products so that it can satisfy the needs of all customers. The company applies various marketing strategies for its products because the target customers are different, and their needs are diverse. Although the company has various products in the market, the performance of each products brand is different because the target customers are different. The following assessment will compare two of the most common beauty products produced by the company. The two brands that I will compare are beauty products namely Old Spice and Gucci. The two products satisfy the same needs, but their target customers are different.

Globalization

Globalization is the mechanism, which the companies use to make their products available in the international market. Procter & Gamble is one of the leading retailers in the global market; therefore, it has a strong global market. The performance of the two products in the world market is relatively different because of the difference in target market (Boudreaux, 2008, p.26).

One of the most important aspects of globalization is the integration of peoples culture. P& G Company ensures that its products conform to the cultures of the target market. In case of Old Spice, the company has not come up with products that suit all cultures because the returns are small. The company markets Old Spice to the regions where the culture is consistent with the original products. Most of the Old Spice products are available in the European countries, where the culture of the consumers is relatively similar. The distribution channels of Old Spice are only available in those countries that have similar consumer culture to the consumer culture of the United States. On the other hand, Gucci products have a strong global market. The company ensures that the products conform to the cultures of all the consumers. P & G differentiates Gucci products in terms of culture so that it may have a large market share. The Gucci products in United States are different from the products in Japan and China because of the difference in style and culture. Differentiation of Gucci products to suit cultures of all people makes Gucci more successful in the global market than Old Spice Products (Dyer & Dalzell, 2004, p.22).

Old Spice brand is a beauty product that targets men. It is one of the oldest products of the company but its growth is relatively low compared to other products. The product is available in many countries worldwide, but it is not familiar to most people. There are not so many channels of distribution for the product because it has not captured a large market. P & G Company does not invest heavily in marketing of this product because the returns are not very high. Most of the advertisements of Old Spice are placed on the internet sites because it is a cheap way of advertizing. The company is not using news and print media advertising. In the United States, Old Spice is advertised through a newspaper and some fashion magazines because it has a larger market in US compared to other global markets (Loth, 2004, p.41).

Relationship with other Functions and Brands in the Organization

Procter & Gamble produces a variety of products, and most of them are related at some point. Old Spice is one of the brands of the company that does not perform well in the local and global market. The relationship between Old Spice and other products of P & G is fragile because the product does not create a market for other products of the company. Old Spice has distinct characteristics and does not conform to the norms of P & G products. The product has a separate line of operation with most of its operations taking place separately from the other products. Marketing of Old Spice does not take place with other products of the company, and the marketing strategies are also different. On the contrary, Gucci is one of the most successful brands of P & G Company both locally and in the global market. Gucci plays a significant role in marketing of all companys products. Gucci products help in creating brand awareness because they have a wide customer market, and their quality is superior. P & G Company combines Gucci products with other products because this helps in generating sales for other products in the market (Schisgall, 2003, p.26).

Segmentation

Segmentation is a marketing strategy that entails dividing the target market into sets of consumers who have the same characteristics, and designing the products to suit their needs. Procter and Gamble has a broad target market that has different consumers with diverse needs. The segmentation of Old Spice and Gucci products is different because of the target market. Old Spice is a brand that targets men as the primary clients. Men widely use the product; however it has been advanced to satisfy the needs of other segments such as women and children. 70% of the market segment of Old Spice comprise of men. The product does not have a variety of uses, hence, this makes it a suitable product for men. 20% of the segment consists of women who do not have a lot of interest in fashion. 10% of the market comprise of children who do not have much decision regarding the products they use but rely on the decisions of their parents. The product does not perform very well in the market because the primary target segment is men. Men do not frequently shop; therefore, the products will not realize many sales (Loth, 2004, p.54).

Gucci products, on the other hand, are suitable for all segments. These products target all people including children, teenagers, youths and the old. The brand experiences tremendous growth because it is able to suit the needs of various market segments. The primary segment of the Gucci products is the youth who constitute 60% of the market share. 25% of the market share comprise of children, while 15% comprise of the old people. Gucci targets people of all genders, and its products are tailored to meet the prevailing trends in the industry (Schisgall, 2003, p.67).

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Environmental Issues

Procter & Gamble Company has significant interest in environmental conservation. All products of the company are friendly to the environment, and the methods, used in productions are acceptable from the environmental point of view. Gucci products have been useful in supporting environmental conservation projects. The products have been certified and approved by the United Nations Environmental Programme. The materials and processes used in the manufacturing of Gucci products are assured to be not harmful to the environment as well as for the users. Old Spice products are also environmental friendly, but there have been some claims that the product contains a chemical that may affect the user’s health. Most of the countries do not permit the marking of Old Spice products because of the risk to the health of the users (Dyer & Dalzell, 2004, p.28).

Promotion and Advertising

According to Loth 2004, Procter & Gamble is one of the multinational companies that invests heavily in the advertisements and promotion of its products. Gucci, on the other hand, is a household product that has a large market globally. Gucci experienced tremendous growth in the world because of the quality of its products. The marketing strategy for Gucci in the global market is different from Old Spice. Gucci has many distribution channels in most of the countries that use its products. P & G has set up many distribution channels so that the products can be available to all the customers. Another significant difference is advertising and promotion strategy of Gucci products by P & G Company. Advertising is one of the primary strategies that contribute to the tremendous growth of Gucci market share. The advertisement of Gucci products takes place in the major media. Gucci products are featured in the largest media so that it can reach out to many people. Gucci advertisements are common in such media as CNN, BBC, DSTV and other global media. The products are also featured on the internet sites such as social media, blogs, etc. The company has also come up with promotional strategies to market Gucci products. The company uses billboards, posters, and fliers to make its products visible to the potential clients. It also uses celebrities and other influential people in advertising Gucci products. P & G also takes part in many social activities, and Gucci is the main brand that is featured in these activities. In the latest marketing strategies, the company has ventured in sponsoring some games. The company uses Gucci products to sponsor some sporting events through the provision of sportswear or financial assistance.

Distribution Channels

Distribution is the process of making the products available to the target market. P & G Company has many distribution channels because it has a great number of products to supply to the clients. Gucci experienced tremendous growth in the world because of the quality of its products. The marketing strategy for Gucci in the global market is different from Old Spice. Gucci has many distribution channels in most of the countries that use its products. P & G has set up many distribution channels so that the products can be available to all the customers. Old Spice has few distribution channels to market its products. There are only few channels, because the products do not have a large target market compared to Gucci. Old Spice products are rare in most parts of the world, and the main market is United States (Boudreaux, 2008, p.38).

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Pricing and Purchase Decisions

Pricing is a crucial component when marketing a product. There is a significant difference in the pricing decisions of P & G products. The pricing of Old Spice products by the company is relatively high compared to Gucci products. Old Spice products do not have a large target market, and this explains why the price is high. The cost of advertising and distributing Old Spice products is relatively high compared to its sales and, therefore, the price must accommodate the advertising and distributing expenditure. On the contrary, Gucci products have the best pricing in the company. Gucci products have significant market share and, therefore, the company benefits from economies of scale (Schisgall, 2003, p.19).

Ethics

Ethics is one of the primary concerns of P & G Company in the process of producing a product. Gucci products and Old Spice products implement ethics because they do not offend the norms of the society. The products are considerate of consumers behaviors and, therefore, they do not infringe on the rights and freedom of other people. Marketing of the products is simple because most consumers accept the ethical considerations of the company (Dyer & Dalzell, 2004, p.37).

Conclusion and Recommendation

The products of Proctor & Gamble have significant benefits to the users. The brands produced by the company are of high quality, and it explains why the enterprise is experiencing tremendous growth. Gucci products are performing very well in the local and international market compared to the Old Spice brands. The company must ensure that it focuses on the quality of Old Spice products so that it can compete favorably with other markets. The marketing department of P & G Company must come up with appropriate strategies to ensure that the Old Spice brand performs well in the global market.

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