The company bought the rights to the word ‘Fairy’ and launched the first all-purpose soap in 1898. Fairy remains one of the best-known household product names to this day.
In 1930, P&G established its first overseas subsidiary with the acquisition of Thomas Hedley & Co. Ltd.
About Us
Four billion times a day, P&G brands touch the lives of people around the world. This happens because P&G provides branded products of superior quality and value to improve the lives of the world’s consumers. This results in leadership sales, profits and value creation, allowing employees, shareholders and the communities in which we operate to prosper.
The Company markets more than 300 branded products. We have on-the-ground operations in more than 80 countries and employ approx 135,000 people. P&G’s world headquarters is located in Cincinnati, Ohio, U.S.A.
What began as a small, family-operated soap and candle company now provides products and services of superior quality and value to consumers in 180 countries.
P&G is a publicly owned company. Its stock is listed and traded on the New York and Paris exchanges.
2) MARKETING OBJECTIVES & THE 4 P’s
The Marketing Objectives of Procter & Gamble. co
It has been reported that there are five general promotion objectives to choose from, and these five promotional activities should be compatible with the mission and objectives of the company, as well as their competitive and marketing strategies of the business (2005). These five promotional activities are, to provide information, to increase demand, to differentiate the product, to accentuate the value of the product, and to stabilize sales (2005). From these set promotional objectives or activities, the company can use the different types of promotion, which includes advertising, direct marketing and public relations. Given the incident concerning the Max Factor SK-II issue, it would be best to make a marketing communications plan on how to continue with the promotion of the product. Using these promotional objectives, the company can start at providing information to their consumers, of the improvements in their products. By providing the correct information, the company can regain the trust of their consumers and therefore, increase their demand for the product. With the provided information and increase of demand, SK-II products can be differentiated and distinguished from the market, as a high quality product, which would accentuate its worth from the loyalty of the consumers. These in turn, will lead to the establishment of the new improved SK-II products in the market, which would stabilize the company’s sales.
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Corporate objectives include customer loyalty, profit, market leadership, growth, employee commitment, leadership capability and global citizenship (2006). By having a good marketing plan, which is improving the products of SK-II, the company can obtain customer loyalty, for consumers will be provided with the highest quality of products, which would entail a good profit for the growth of the company and for the company’s shareholders. Improvement of the new SK-II products would also allow the company to develop market leadership, and continue to provide useful and significant products, and expand to new areas of development. These objectives would enhance employee commitment and increase performance and productivity of the company, and contribute to its mission to serve globally. The company can propose trainings, employee and systems development programs to provide with the company the appropriate information systems and good leaders for achieving excellent business results.
The marketing objectives of SK-II must include its promotional and corporate objectives mentioned, in accordance to the brand’s mission and vision to attain company profit and market establishment. The market objectives should cover the target market of SKII, such as women ages 20 and above. These would also cover marketing communications objectives that would require the company to use different types of communication media to effectively relate to the public. This includes the use of advertising media, such as billboards, printed flyers, radio, television, magazines, newspapers, posters, and the Internet. Using these forms of media is effective for many individuals are exposed to them, and are able to gather or obtain information from them. Most of the time, citizens are exposed to these forms of media, which greatly influences their decisions, such as in creating brand loyalty. In addition, the forms or types of media are responsible for producing the brand image of a specific product. With an effective brand image, many consumers are encouraged to continually purchase and support that product, for with the proper use of advertising; the target market of the company can easily be reached. In relation to the products of Max Factor and Procter & Gamble, their products are continually being supported and purchased, for many consumers believe that their products offer a high quality and an affordable price. This is because, nowadays, consumers have developed the trait of being able to demand from their producers and the desire to obtain the value of their money. Furthermore, the SK-II brand can also use direct marketing strategies, such as direct mails or emails for new product information and promotion. The company can also plan to promote their products through public relations strategies, for easier dissipation of information and relate to their consumers simultaneously in large numbers.
The 4 P’s
The marketing mix principles (also known as the 4 P’s.) are used by business as tools to assist them in pursuing their objectives. The 4 P’s are:
Product
Price
Place (distribution)
Promotion
PRODUCT
Name
SK-II
About the product
SK-II with Pitera® has become the beauty regimen of many celebrities and beautiful women around Asia and the world. Today, these women have the pleasure of a luxury which the elderly Japanese women unwittingly enjoyed, crystal clear skin.
There are many ranges of this product: SK-II Purifying, Renewing, Brightening, Nourishing, Anti-Aging, Finishing-Protecting, Finishing-Renewing, and LXP.
The benefits of using SK-II
Absorbs quickly into skin. Facial Treatment Essence’s instant application begins your SK-II journey
Instantly replenishes skin’s moisture. Rich in amino acids and minerals, Facial Treatment Essence increases skin moisture immediately.
Helps smooth your skin’s surface texture. Facial Treatment Essence helps make skin texture even and helps smoothes the skin’s surface.
Helps moderate the skin’s surface renewal cycle. Facial Treatment Essence enhances skin’s natural exfoliation rate to improve skin’s appearance.
Helps make skin tone brighter. Facial Treatment Essence helps make skin more translucent giving you a youthful and luminous glow.
P&G Product Safety Approach
CPSC Certification Letters
Under the Consumer Product Safety Improvement Act of 2008 (CPSIA), P&G and other companies must certify that certain products sold in the U.S. comply with specific rules, regulations, standards, or bans enforced by the Consumer Product Safety Commission (CPSC).
Product Ingredients
P&G has prepared listing of product ingredients for many of our products, except for “articles” like Pampers, Puffs and Bounty, and Always, and products where ingredients are listed on the package label.
MSDS
Material Safety Data Sheets (MSDS) provide a standardized listing of the chemical and physical characteristic of a product, its potential health effects, and safe handling procedures in a workplace setting (e.g. manufacturing plants, distribution centers, and customers’ retail stores). P&G has prepared MSDS for many of our products according to U.S. Occupational Health and Safety Administration workplace safety regulations.
PRICE
The price range
SK-II is often considered one of the most expensive beauty brands in the world.
The normal range of SK-II products are ranging in price from RM 80 – RM 150, while the luxury line of SK-II products are ranging in price from RM150 – RM 300.
The factors affecting the pricing of SK-II products
– Internal factors
Goal and Objectives
Company’s goals and objectives are to maintain the market share of SK-II and to survive in the market. So company shifts its prices to increase sales and maintain its market position.
Cost Aspects
Cost of production i.e. Cost includes the use of raw materials and the packaging for the SK-II products. Cost of production also involves the import of SK-II products and its promotional advertisements.
Organizational Consideration
The decisions regarding the pricing of SK-II products are undertaken by the mutual consent of the P&G Brand Director, SK-II marketing managers, SK-II brand managers and both companies’ activation managers.
– External factors
Market and Demand
The pricing ranges of SK-II products are constant due to the significant absence of competitors in the same level of branding. The demand for more natural skin care products has increased due to the current global interest in eco-friendly products. As all SK-II products are made mostly from natural ingredients, the sales of this product line have increased greatly.
Competitor’s Pricing Strategy
As there is a significant absence of competitors in the same level of branding as SK-II, the pricing strategies of other companies do not affect the shares of the SK-II company.
PLACE (distribution)
Distribution (Intermediaries) Channel:
The P&G company uses these levels of distribution of SK-II products:
Distributor
The main distributor of P&G products in Malaysia is situated in Subang Jaya. This company handles the distribution of SK-II products as well as other products throughout Malaysia
Small Distributors
SK-II products are distributed to retailers by the main distributor. These retailers are defined and divided on the base of the geographical area of the country.
Availability
SK-II products are mainly distributed to high-end departmental stores, beauty stores and certain pharmacies throughout the country.
Justification
The wide availability of the SK-II products in the market is due to the knowledge of people towards skin care. People are becoming more conscious of their looks and wellbeing, and SK-II has become one of the main products in that field.
PROMOTION
Advertising
Advertising includes the use of the different communications media, such as billboards, printed flyers, radio, television, magazines, newspapers, posters, and the Internet. Using these forms of media is effective for many individuals are exposed to them, and are able to gather or obtain information from them. Most of the time, citizens are exposed to these forms of media, which greatly influences their decisions, such as in creating brand loyalty. In addition, the forms or types of media are responsible for producing the brand image of a specific product. With an effective brand image, many consumers are encouraged to continually purchase and support that product. In relation to the products of SK-II and Procter & Gamble, their products are continually being supported and purchased, for many consumers believe that their products offer a high quality and an affordable price. This is because, nowadays, consumers have developed the trait of being able to demand from their producers and the desire to obtain the value of their money.
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With the proper use of advertising, the target market of the company can easily be reached, for most consumers are exposed to the different forms of media mentioned earlier. The company, temporarily, can produce and advertise clothing or shoes and bags. Similar with other companies, like Sara Lee and Avon, SK-II can also produce their own line of clothing, just to be sure of avoiding the same incident. Through effective advertising, the public can realize the intentions of the SK-II brand to be accepted again and serve the consumers. This plan can be done in one year, given enough budget and resources. These resources include the design for the garments, shoes and bags, the materials to be used, and other aspects in sales.
Direct Marketing
It has been reported that direct marketing is a discipline within marketing that involves the planned recording, analysis, and tracking of individual customers’ responses and transactions for the purpose of developing and prolonging mutually profitable customer relationships. Being direct, a company can use direct mails or emails to inform their consumers regarding their new product or service. If the SK-II brand will pursue on promoting their own line of clothing, shoes and bags, the brand can directly sell their products in several ways:
SK-II can snail mail or email consumers to introduce their new products. In this way, many consumers will be informed regarding their intention of promoting a new product line.
The company can produce brochures, which shows their product line and provide with themselves mall stalls or kiosk, where the consumers can individually interact with the agents from SK-II. In this way, the consumers can see the new products of SK-II from the brochures, and order right away from the agents. This strategy will enable SK-II to determine the individual wants of their customers, thus, building a personal relationship.
In addition, SK-II can do door-to-door endorsements in different neighborhoods. Similar to the second strategy, the SK-II agents can build a personal relationship with their consumers. This strategy is just the reverse of the second strategy, for here, the agents are the ones going to the house of the consumers.
Public Relations
Public relations is the art and science of managing communications between an organization and its key publics to build, manage and sustain an accurate image. With public relations, SK-II can relate to the public in large numbers. In this way, the dissipation of information is easier, for the agents from SK-II can inform
the public simultaneously. Several ways can also be used in making public relations effective:
The company can conduct press conferences to introduce first the new product to the media. In this way, the media will be enlightened regarding the product, and help expose them to the public. Exposure to the public is through newspaper and magazine write-ups, commercials and advertising, printed ads and posters, television and radio advertising, and Internet advertising.
With the support of the Procter & Gamble Company, SK-II can organize forums or talks, where the new product line will be introduced to the public. In this way, the audiences or the consumers can directly obtain the information from the company, and can even interact with them through open forums or question-and-answer portions.
Another way is to introduce to the public the new product by creating Internet chat rooms, where the agents can chat with the consumers in the chat room and entertain their questions or queries regarding the new product line. In this way, the consumers, who have no time to travel and go to the forums or talks; can be entertained by the agents online. This is a great way to use the World Wide Web and a fast and efficient strategy to reach many citizens simultaneously.
3) CONCLUSION
The discussion above has provided a detailed description of the marketing mix and channels of distribution of Procter & Gamble. The discussions found out that the level of success currently enjoyed by the company is largely influenced by these areas. Specifically, the study even pushed it further by claiming that these elements are among the factors that contribute to the competitive advantage of the firm over the rest of the competitors in the market. Seeing the conditions involved in the external environment of Procter & Gamble the use of such scheme permits effectiveness because it is clear who their customers are along with the fact that a huge demand for their products is perceptible from these customers. It must also be noted that such a system would not be practicable as it is if an effective level of control is accessible to the company. Based on the discussions above, the company is well aware on how to manage their market as well as the manner on which it could further acquire a greater market share through their channels of distribution.
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