American Intercontinental University
Unit 4 Individual Project
MKTG 205-1205A-03 – Principles of Marketing
Sunday, December 9, 2012
When looking over the Procter and Gamble company history, there is a lot to consider and to wonder how the company has made it this long, and remained on top of the market. To do so a company would have to have strong ethics, and stand behind their products, which Procter and Gamble does do. Over the past few weeks, Mr. Roark, has taught the class different aspects of the marketing field.
Procter and Gamble
Marketing is important when it comes to getting a product to consumers, but everyone has a different understanding of what all marketing entails. From the business dictionary online, the definition of marketing is as follows:
The management process through which goods and services move from concept to the customer. It includes the coordination of four elements called the 4 P’s of marketing: (1) Identification, selection and development of a product, (2) Determination of its price,
(3) Selection of a distribution channel to reach the customer’s place, and (4) Development and implementation of a promotional strategy.
The product that is being review is Procter and Gamble’s laundry detergent. The company has a list of products on the market for consumers to select from, which makes this companies marketing strategy interesting. Through this paper environment forces, marketing strategies, product overview, pricing strategy, as well as distribution channels will be reviewed.
Procter and Gamble was established in 1837, and has continued to keep up with the changes that households have gone through. “P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G’s growth strategy, inspired by our Purpose, is to touch and improve more consumers’ lives in more parts of the world, more completely.” By standing behind their products, and everything that they release to consumers, Procter and Gamble remains the leader of the household care department. “Procter and Gamble began working together in April 1837 and by August they each contributed $3,596.47 toward the creation of a new company. The brothers-in-law signed a formal partnership agreement on Halloween, October 31, 1837, and the Procter & Gamble Company was born. Gamble oversaw the manufacturing side of the firm and Procter handled the money.” To say the business was started up with not even four thousand dollars and has now reached a sales potential yearly of $38 billion.
With Procter and Gamble having so many laundry care products this could pose as both an advantage and a disadvantage. The different environmental forces that would affect Procter and Gamble are the economy, competitors, and social. With any changes in the economy, be it a loss of jobs, or just some kind of natural disaster, sales will decrease, and there isn’t anything that can be done to prevent this from happening. There will always be a company that has a similar or comparable product which can cause consumers to question why they are spending so much on the Procter and Gamble brand. For instance, Wal-Mart, Wal-Greens and Target all have their brand of laundry detergent that is sold on the same isles as Gain and Tide laundry products. Some consumers are interested in purchasing things that were purchased by their parents, or anyone that has made an impact in their lives. This would be seen as an advantage for Procter and Gamble, being that the product has been on the market for so long, and they have changed with and altered their products appearance to be fit in with the changes over time.
By creating a target market, the company is able to then create advertisements and market things that would catch the attention of that specific age group, gender, or household...