Bangladesh University of Business & Technology

(BUBT)

Assignment On
‘Proctor & Gamble (P&G)’

Submitted To:
Nasrin Shamima
Assistant Professor
Department Of Management, BUBT
Submitted By:
“Fantastic Five”

Date of submission: 31 /07/ 2022

 GROUP LIST

SL NAME ID INTAKE/SECTION

1 KAZI MARUF RAHMAN SIAM 18192101097 48/4

2 TAMA SAHA 18192101121 48/4
3 Fatema Alam Meem 18192101092 48/4
4 Khaled Hossain Forhad 18192101109 48/4

5 Rokonuzzaman 18192101196 48/4

6 MD IMTIAZ ZAMI 18192101108 48/4

 Table of Contents

Contents Page no

Company profile........................................................................................... 1
Role of research in helping Starbucks build its various brands……. 2

Consumer preferences for selecting brand (reasons) ....................... 3

Problem to find appropriate target group .......................................... 4-6

If P&G like to gain a better understanding of how business can be selected 7

globally? ..............................................................................

Conclusion.......................................................................................... 8
 Company Overview

Procter & Gamble is an American consumer goods giant specializing in a

wide range of personal care and hygiene products. P&G was founded in
1837 by brothers-in-law William Procter, a candlemaker, and James
Gamble, a soapmaker. Today the company manufactures well-known
household products.
Procter & Gamble Co. engages in the provision of branded consumer
packaged goods. It operates through the following segments: Beauty,
Grooming, Health Care, Fabric & Home Care, and Baby, Feminine &
Family Care. The Beauty segment offers hair, skin, and personal care. The
Grooming segment consists of shave care like female and male blades and
razors, pre and post shave products, and appliances. The Health Care
segment includes oral care products like toothbrushes, toothpaste, and
personal health care such as gastrointestinal, rapid diagnostics,
respiratory, and vitamins, minerals, and supplements. The Fabric and
Home Care segment consists of fabric enhancers, laundry additives and
detergents, and air, dish, and surface care. The Baby, Feminine and
Family Care segment sells baby wipes, diapers, and pants, adult
incontinence, feminine care, paper towels, tissues, and toilet paper. P&G
dropped around 100 of its brands to make a concentrated effort on the
remaining 65, which produced 95% of the company’s profits. In 2020,
P&G announced plans for its operations to be climate neutral by 2030,
extending a previous goal to reduce emissions by half over the next 10
years.

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The role of research in helping P&G build its
various brands

Marketing research provides an invaluable role in helping P&G invent,

shape, and sell its brands since, at its core, the company is nothing more
than a collection of brands each selling a highly commoditized product at
a premium cost to a generic substitute which would essentially perform
the same function. Consumer buy the P&G brand item (soap, dish cleaner,
diapers etc.) and earn the company the higher margin per sale over a store
brand or a generic counterpart for specific personal reasons which literally
cost them money at each purchase.
The more accurate P&G can understand why consumers bear this
traditional monetary cost the easier it can tailor its brand specific
messages to a highly fragmented and niche market place. These marketing
strategies are essential to determine purchase causality or the cause-and-
effect which takes place upon each sale. For example, a consumer
motivated to buy a P&G product on the basis of perceived higher and
consistent quality is not as likely swayed by a message directed at an
emotional or nostalgic level.

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Reasons of consumer preferences for selecting
brand

Within their 10 categories they’re creating superior, science-based

products delivered with superior packaging, consumer communication,
retail execution and value in all price tiers where they compete. This is the
basis for competitive advantage — meaningful and noticeable superiority
across all elements of their consumer proposition. Superior offerings drive
market growth, creating a winning proposition for all concerned.
Superiority is a high bar. Their products must be so good that consumers
recognize the difference. Their packages must be attractive, convey brand
equity and close the sale. Their communications must create awareness,
demonstrate superior performance, and create the desire to purchase. In
stores, their retail execution must include the right product forms, sizes,
price points, shelving and merchandising execution. Online, their retail
execution must include the right content, assortment, ratings, reviews,
search and subscription offerings. Finally, their consumer value equations
must represent a good value of the total proposition, and for customers,
include important items like market growth, penny profit and margin.
They continue to raise the bar on all five vectors of superiority because
when they’re superior on at least they’re of five, they more consistently
drive market growth, sales, profit, household penetration and value share.
P&G recently received two honors that recognize the progress they’ve
made. The Cannes Lions Festival of Creativity named us the #1 Brand
Marketer of the Decade, and Target recognized us as their supplier of the
year, across all product categories. They’ve made investments to
strengthen the superiority of their brands, and they’ll continue to invest to
extend their margin of advantage and quality of execution, improving
options for consumers around the world.

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Problem to find appropriate target group

MARKET SEGMENTATION OF P&G:

Market consists of numerous buyers and buyers differ in their wants,
resources, locations, buying attitudes and buying practices. Through the
market segmentation

P&G divides its large, heterogeneous markets into smaller segments that
can be reached more efficiently and effective with products and services
that match their unique needs.

Consumer Market Segmentation:

There is no single way to segment a consumer market. P&G marketers
have to try different segmentation variables to find the best way to view
the market structure. Major variables used by P&G in segmenting its
consumer markets can be illustrated as below-

1. Demographic Segmentation: P&G divides its market into groups

based on variables such as: - Age, Sex, Family size, Income,
Occupation.

2. Geographic segmentation: Being a multinational company

operating almost worldwide with a wide variety of products.

P&G divides its market into different geographical units such as

nations, states, regions, countries, climate & density of population etc.

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 3. Psychographic Segmentation: By psychographic segmentation
P&G divides its consumers and buyers into different individual
groups based on social class, life style, life cycle and personality
characteristics. But people in a same demographic group can have
very different psychographic makeup.

4. Behavioral segmentation: By behavioral segmentation P&G

divides the buyers into groups based on their knowledge, attitudes,
uses, or responses to a product. The company marketers believe
that behavior variables are very crucial in segmenting markets.

TARGET MARKETING

P&G’s overall marketing strategy involves targeting market, a weapon

to evaluate the segments the company has developed and selecting
one or more segments. In selecting target markets P&G adopts the
following strategies: -
i. Undifferentiated marketing
ii. Differentiated marketing
iii. Concentrated and Micromarketing

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MARKET POSITIONING
Another important Marketing segmentation Strategy of P&G to occupy a
distinct Position in the market place is market positioning. A Products
Position in a place the product occupies relative to competitors in
consumer minds.

P&G markets constantly and wants to develop unique market position for
their products if products are perceived to be exactly like other markets
consumers would rarely buy it. The company markets plan positions that
distinguish their products from others competitive brands. To occupy a
desirable and distinctive place in the laundry detergent market P&G has
developed several brands instead of single brands each brand having
distinctive features to meet the different mixes of benefits of different
people.

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If the company like to gain a understanding of how
business can be selected globally?

Basically, Procter & Gamble global marketing strategy is divided into five
different areas. They are Consumer Understanding, Innovation, Brand
Building, Go-To-Market Capabilities and Scale. Furthermore, the
company was first to perform data-based market research with consumers
on the year 1924 itself. This shows that they are concerned on delivering
the best value to their end consumers. Well, this company has a very high
consumer understanding as they’ve invested a lot in market research
compared to other companies. They invest in about 350 million dollars
and conduct about 15,000 research studies annually to gain insights to
better serve their customers. Under innovation, they’ve worked with on
worldwide scale research partners. The reason for this is to create new
product lines in satisfying the new desires of consumers.

On brand building, the Procter & Gamble Company has created and still
creating brands based on purpose-driven. Their brands are innovative and
purpose-driven as to give the greatest value towards the consumers. It is
so delivering the consumers with the best products. Fourthly, the company
another global marketing strategy would be the “Go-To-Market.” They
basically reach the retailers and consumers at the right place and time.
And, they’ve achieved it as famous retailers ranked them as the most
preferable supplier. Lastly, the company is creating scale advantage by
amalgamating across their enterprise, consistently being as one company.
It will encourage efficiency and creating customer value. By being one
Company. Procter & Gamble can systematically allocate resources and
use efficiently than a single small enterprise. Thus, the combination of
many is great and maximizes the potential.

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 CONCLUSION

Procter & Gamble’s corporate strategy allows the firm to manage their
portfolio of products effectively and allows the company to innovate more
quickly and ensure consumer’s needs are met through market research and
product development. Product diversification allowed P&G to grow into
one of the most well-known consumer goods companies in the world. This
diversification is supported by product and service differentiation that
Procter & Gamble employs to deliver competitive advantage. The firm
has worked to increase productivity and expand their innovative
capabilities to be able to offer products to consumers that are of high
quality at a reasonable cost. Through differentiation and diversification,
Procter & Gamble is positioned to expand their market share in the global
marketplace and position themselves as one of the industry’s top
innovators.

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