External Situation Analysis Of P & G

750 Words 3 Pages
External Situation Analysis
The markets in which P&G products are sold are extremely competitive. P&G competes alongside similar branded products in addition to merchants ' private-label brands on a global scale. They use well planned techniques to position themselves which include advertising, promotions and brand awareness via P&G’s expansive sales force. P&G (2012) believes that product quality, performance, value and packaging are their most important competitive factors, often creating leadership and significant market share position.
Current marketing environments are continuously favorable for Procter & Gamble, making them a leader in all their market segments. Financially, the company is staying static in stock performance. Below is
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Since the 1950s, P&G was one of the first to compile a pricing strategy known as “Value Pricing.” This strategy, according to Tim Smith (2010), entails P&G dropping the price on entry-level products while leaving prices on other, more feature enhanced and beneficial products unchanged. In doing this, P&G is avoiding direct price competition with their top branded competition, while simultaneously attacking retailer’s private brands.
In a quickly varying environment, P&G uses sales, advertising, and marketing programs to promote their brands. Celebrity endorsement is their most effective promotion practice. Brands like Gillette, Pantene, Tide and Pampers provided free samples, makeovers, hairstyles, and fresh shaves to celebrities to endorse positive word of mouth. On May 15, 2015 the company introduced a program called the “Make a Power Move” to boost the working woman’s confidence. Covergirl, Olay, and Pantene teamed up with Levo and style experts to offer beauty and career advice for professionals (Morgan,
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In the United States P&G owns a series of distribution centers in Texas, Ohio, and Louisiana. These centers in turn distribute to stores such as Walmart, Target, and other stores globally. The distribution intensity of P&G products fluctuates. According to Sean DeWitz’s case study (2011), products like Febreze and Crest are intensive, because P&G uses all suitable outlets, like Wal-Mart, Target, etc., to sell these products. Products such as Gucci and Lacoste, however, are selective because they are only sold in certain stores like department stores and their own stores as

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