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Market study - Sales management and negotiation techniques: Procter and Gamble

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case study
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  1. Company profile
    1. Overview
    2. Employees and sales
    3. Management and organizational structure
  2. Target consumer profile
  3. Mission statement
  4. Market analysis: Germany
  5. Strategic options
  6. Sales strategy
    1. Distribution
    2. Portfolio
  7. Case study questions

William Procter and James Gamble started their partnership by selling soap and candles in 1837 and formalizing this business in October of that year, despite the high competition presented at that time and the rumours of a possible civil war and financial panic in the country. The moon and stars started to become the trademark of the business and gained popularity when their soaps were sold to the Union armies; this event triggered the invention of more than 30 different types of soaps. Since the business performed nicely on market research, the company was able to engage the customers' needs, creating an attractive promotion resulting in successful investments in research labs and production plants.

[...] Then in 2012, it grew by and since then the value is increasing more and more each year. Value in Local Currency Value (Source: Mintel, 2016) Value in Local Currency - Value growth (Source: Mintel, 2016) Invariably since 2011, the biggest segment of the industry are laundry detergents with a value of over million followed by conditioners & softeners and laundry aids, both worth over million. Germany - Fabric Care: Retail market segmentation by value EUR) (Source: Mintel, 2016) The leader of the industry is Henkel AG & Co. [...]


[...] Brands like Always, Ariel, Gillette, Head & Shoulders, Pampers or Tampax are amongst the most consumed goods within the group since they serve either daily clothes-cleaning purposes, feminine or masculine beauty or both 2017) Case study questions Describe the Industry Environment of the German Fabric and Home Care Market The Industry Environment of the German Fabric and Home Care Market was a bit described previously through the Procter& Gamble's activities analysis. Thus, this market, which is mostly composed of laundry detergents, fabric conditioners and softeners, was worth of million of euros in 2015 and the top brands of P&G in this market are Ariel, Tide, Dawn, and Downy. This market segment also represents the most important part of Procter & Gamble's sales and earnings, with more than 30% of their sales. This market segment appears then as one of the priority market to focus on for the company managers. [...]


[...] In term of pricing, the average price of P&G's Fabric Care and Home Care products is above the average product price of its competitors, with $ 0.19 per load against $ 0.13 per load. This comparison is a good example of the company market positioning and market strategy with high quality products sold at a higher price. Moreover, there also are some trends that define specifically the German Fabric and Home Care Market. Thus, the market segment experienced stronger value sales increase in 2016. This increase is due to the introduction of new products designed to target the demand of eco-friendly and organic home care product. [...]


[...] The company has established approximately 120 manufacturing sites are located in the United States and the rest operate in nearly 40 countries. Next, the P&G's portfolios in the different business operations: 1 Beauty P&G offers skin and personal care products under the brands, such as Olay, Old Spice, Safeguard and SK-I with products that include conditioners, shampoos, styling aids and treatments under the brands Head & Shoulders, Pantene and Rejoice Grooming Shave Care and Appliances take part of this portfolio with products such as female and male blades and razors, shaving products and appliances under the brands like Braun, Fusion, Gillette, Mach3, Prestobarba, and Venus Health Care The business offers oral care (toothbrushes and toothpaste) and personal health care products in Health Care segment (gastrointestinal, rapid diagnostics, supplements) under brands such as Crest, Oral- Prilosec and Vicks Fabric & Home Care P&G's Fabric & Home Care segment consists of a range of fabric care products, including laundry detergents, additives and fabric enhancers, and home care products, such as dishwashing liquids and detergents, surface cleaners and air fresheners. [...]


[...] References Academia P&G marketing strategy. [Online] Available at: http://www.academia.edu/5492199/P_and_G_marketing_strategy [Accessed 5 May 2017]. P&G P&G 2016 - Annual Report, Cincinnati: P&G. P&G Company Strategy. [Online] Available at: http://www.pginvestor.com/Company- Strategy/Index?KeyGenPage=208821 [Accessed 5 May 2017]. P&G P&G History. [Online] Available at: http://www.pg.com/en_balkans/company/heritage.shtml [Accessed 5 May 2017]. [...]

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