Geographical distributions and global market strategy Essay Example

marketing strategies emanates from an adequate understanding of the nature of the market which is composed of both substitutes as well as complimentary commodities. Since its competitors follow the same marketing concepts as Procter and Gamble, strong methods of marketing have been the key factor towards the success of the company. As a companion to safeguard the interest of the high market competition, the company has a broad portfolio of high quality output which gives it a strong competitive outlay within the market. The success in its marketing strategy involves various concepts.

These are; • Selling/price effort strategy: This is the process through which Procter and Gamble uses skimming strategies in which it maintains the culture of been the first introducer of products that have very good and competitive performance within the market. The success involves selling it to its market segment by charging various premium prices for the different products. Through this strategy, the company undergoes through a series of high profits. At the discovery of these products by its competitors, Procter and Gamble then changes lines of production to undergo further process of innovation for new products.

If the market is invaded by new competitors, the price of the product consequently depreciates. The skimming strategy for the company is a contrast of the penetrating strategy that aims at seeking to gain strong market share through making sacrifices for short-terms profits which is then followed by increased price levels after gaining the market share 9Gail, Robert, 1999, p. 87) • Procter and Gamble fully understands the strengths and capacities of its competitors. Consequently, its success involves leveraging various unique abilities that gives it the possible strengths

of competition.• To win its market share, the company prepares various defensive strategies against its competitors in respect to any possible threat that may be carried along by its competitors. Such strategies to the company include those that are aimed at looking for the most adaptable methods for restoring market share when its competitors approach with various unique and more preferred product outputs.

• Its marketing strategy is also a compound of the probable competition that may be given as a response factors by its competitors.In order to arrive at a strong capacity of market competition, the role of marketing research has been of implicit function in creating various diagnostic analyses that are aimed at understanding its current level of performance, the nature of the market as well as analyzing the opportunities that may define the probable unexploited opportunities that could provide further growth. Its marketing research process is a component of variables such as semantic scaling, projective studies, intelligence studies, conjoint analysis and multidimensional scaling.These areas are; • Semantic Scaling: For Procter and Gamble, semantic scaling usually involves developing a rating scale on the customer’s perception about the various physical attributes of the different products.

It involves therefore an examination into the probable values that could be held by those attributes. However, the process of carrying out semantic scaling is not to provide very accurate responses but develop a ranked hypothesis that brings a general overview of the consumers in terms of the products consumption patterns.• Multidimensional scaling: This is an approach which the company uses in addressing the probable problems that could be held by the semantic scaling. It involves carrying out poles

on the consumers attributes by comparative association between every two products or even between the ideals and its corresponding product.

Accordingly, multidimensional scaling assumes that consumers may not necessarily report out the very corresponding attributes that gives them the desire to make their consumption choices. However, they have the ability of reporting the perceptions that they may have regarding two product brands.The aim of the multidimensional scaling is however not to give the relative indication into the importance that exists between any two attributes. • Conjoint analysis: Procter and Gamble uses the conjoint analysis to infer the scope of relativity in the importance of various attributes through a presentation of its consumers with features about any of its two or more hypothetical products then inquiring from them which product would mostly be preferred.

The same question is gone under repetition for a wide scope of value attributes.The corresponding results provide the capacity of predicting the most important attributes or even the combined set of attributes that would give the most preference. The importance attached to these research processes is that Procter and Gamble is able to make the relative studies that exist between values for its products held by the company’s activities. Consequently, domains on developing its market share are instituted which consequently help the company to evaluate its competitive status within the different market niches.In order to secure a productive and cost efficient allocation of its resources as a marketing strategy, Procter and Gamble has involved itself with various techniques in its resource allocations.

These are methods such as matching by its competitors, sales percentage, and judgment by its executive authority, allocation by the

level of the affordable resources and basement on the previous year of activity (Gail, Robert, 1999, p. 89) Elsewhere, to adequately attract a comprehensive marketing strategy, Procter and Gamble has seen it worth of importance to use the various strategies for its products management.This has been successful through the dynamic products management. Within this product management process, it has formulated two scopes of decision variables. These are on whether to follow a certain system of production or to pioneer and the possible methods it could use in the management of the life cycle of its products. To gather a good and attributable market score, a formulated method of order in its market entry for its products has been of great essence.

Every product is given a substantial method in the mode of entry that attracts the highest level of demand from the consumers.The aspect of pioneering advantage for its products occurs from a well founded and monitored concept of the demand and supply within the market. The supply side gives production advantages such as of economies attributed to raw material sourcing, cost advantages that are brought about by better experience as well as channel preemption. The demand side provides advantages such as of familiarity, chances of increasing the standards of quality as well as the choice of creating perceptional position.After the company acquires the pioneering position advantages, it undergoes a process of maintenance in improving the levels of standards, product quality, advertising and introduction of new products within the market that provides competitive advantages in the highly competitive market.

(Emiko, 1999, p. 44) Procter and Gamble can then access a greater level of market share

when it implements these marketing strategies. Elsewhere, in order to achieve a competing portfolio, Procter and Gamble clusters its products in different categories. It does this by increasing the product breadth in terms of lines of output.Increasing product breadth has also various advantages.

Firstly, the company is at a better position of serving multiple segments. It can do this by occupying more of its distribution space. Customers are offered with broader lines of selection therefore preempting an increased level of competition. In order to increase its profit levels from its existing brands, Procter and Gamble has enacted on improved levels of its production process and increasing the demand levels from product output that serves more usage, more uses and also more users.

It has also preempted on defending its levels of the existing production and competition base by expanding the currently existing brands, brand extension and increasing the research and development precepts that gives it’s the potentials of creating new brands. The success of the Procter and Gamble can also be described in terms of the use of various methods of marketing that gives it an overall comparative advantages compared to the other corporations in the market.The marketing methodology for the company captures a broad domain of methods that run concurrently with one another. This include viral marketing, advertising, positioning, direct marketing, and relationship marketing • Relationship marketing: For Procter and Gamble, it uses relationship marketing as a process of attracting its customers and even positioning the best methods for retaining them even for the future benefits.

It uses various methods that are aimed at developing an outstanding long term relationship which is also compounded by

the best modalities of retaining them.This is attained through exceeding the level of customers satisfaction aimed at developing a context of healthy and sustainable relationship for the highest level of benefits to the company. This has been achieved through promotion of its brands and products, providing high quality output/products and using comparatively high levels of its competing prices. To achieve this strategy also, it has used various methods aimed at monitoring the levels of satisfaction to its customers.

This is by creating an advocacy for customer’s satisfaction with the choice of consumption commodities. • Direct marketing: Procter and Gamble uses the method of direct marketing as a method of advertising in which it seeks towards eliciting various actions from selected groups of its consumers. This is monitored via the responses which it gets from the communication models of its marketers. Direct marketing for the company has been through various dimensions such as e-mail marketing, postal mail and telemarketing.

Consequently, the responses from the customers which are by their own measurable are collected and analyzed in making selling and distribution decisions (Gail, Robert, 1999, p. 91) • Positioning: Procter and Gamble uses the attribute of adequate positioning as a tool that defines it in respect to its competitors. The question of positioning brings out two conceptions. Firstly, what could be the fundamental attributes that makes the company unique in the market of operation? Secondly, it entrenches the aspects that bring comparative benefits in the broad market of its target.These two attributes have been of great essence in defining the conceptual facilities with which the company is to operate in order to access the most optimal sales benefits.

Positioning

to this company is a strategy with which it can propagate the most attributable success factors when it is focused on the best position it should have in order to capture the most successful environment for competition. • Public relations: This is the process through which the company’s marketing process goes by creating an attractive rapport between it and its customers. Supply chain managementThe outstanding success in the corporate activities and processes of the Procter and Gamble can perhaps be evaluated in terms of its supply chain management. The company uses the tool of supply chain management for planning, controlling and for the implementation process of the processes involved in the supply chain so that they are as efficient as possible.

This helps it in structuring such appropriate plans and processes that leads to adequacy in the flow and distribution of the raw materials, the finished products/goods, and the inventory held by the work in progress.It is the process which encompasses all the processes that are involved in the corporate process of planning, and also managing the various processes that are deemed of concern in the sourcing of materials, their conversion logistics management or even their procurement. It gives the procedures and processes that govern the collaboration and coordination with all the various partners and stakeholders in the production process. These include participants such as suppliers of raw materials, customers, service providers by third parties and corporate intermediaries.It is a tool used by the Procter and Gamble in the integration process of the demand and the supply management that would provide the highest levels of corporate success through optimal profitability (Mani, Minsok, 2001, 97) Through

the supply chain network, Procter and Gamble has undergone through different phases of self-organization into managerial network that provides the most implicit channels with which the flow of information in the production process can be initiated to provide the most profitable method of corporate activity.

To the company, supply chain management occurs as a cross-functional system of application with which the company can use in the management of its activities and the movement of processes and raw materials within the organization and accounting for all the processes and steps with which the raw materials are converted into finished goods. Elsewhere, supply chain management is implicit in monitoring and evaluating the processes that are involved in the movement of the goods from the production system towards their transfer to the consumption points.The basic aim of full implementation and adherence of supply chain management by the Procter and Gamble is to provide comparative competencies that increase its levels of flexibility which would consequently increase credibility in the processes that ensure most optimal business and productive processes. In order to attain the goal towards supply chain management, Procter and Gamble has also involved itself in the process of outsourcing which gives it comparative advantages in tackling various production activities that would be more economical if done by external persons.The role of outsourcing in its supply chain is to increase the impact of performance of corporate activities that increases more its productive activities in the most cost effective methodologies.

The role of supply chain management is also to increase the efficiency of all the departments and stakeholders that may be of importance in the production process. This is with the

aim of satisfying the demand patterns of its wide scope of customers coupled with reduced control in management processes therefore been able to control it logistics operations.Therefore, the conventional role of supply chain management to the company is to integrate the increasing levels of partners/stakeholders in the supply chain and the increased desire for less control with the central obligation been obtain corporate efficiencies. It has therefore been used as a tool for increasing the collaboration and trust among all the stakeholders, partners and departments within the production process and consequently improving the feasibility into the inventory management and a higher velocity in the flow of corporate processes.

(Sandor, Thomas, 2004, 123). To the company, the facets of supply chain are diverse and encompass the strategies, tactics, and operational methodologies aimed at arriving at the most rationally cost effective methods of corporate functionality. This may be sub-grouped into three phenomena which area; (i) Operational measures: This is the compound of all operational activities that are used in the provision of operations in the most desired manner and attributes.It is the manner with which the daily production processes are aligned and programmed adequately in the distribution processes that gives the best output of the supply chain at the most adaptable manner.

The operational process also compounds the process of scheduling the production manner and processes by incorporating the roles and the potentials of all the manufacturing facilities within the company’s supply chain. Additionally, operational variable captures the process of forecasting and planning towards corporate output demands and making a desirable coordination that meets the forecasted demand level.The obligations in meeting its requirements are then shared among the

different stakeholders into the supply chain. It also compliments planning for corporate sourcing which should incorporate the forecasted demand levels, existing levels demand that goes with fundamental collaboration with the supplying agents.

As of requisite importance, operational outlay captures the wide domain of all the inbound operations that may compliment all transportation processes from the suppliers and the points of receiving these inventories.As of necessity also, it captures the wide domain of the production operations of the company that includes raw material consumption and the probable flow of the finished commodities within the company’s processes. Operational outlay also figures the necessity into outbound operations that could hitherto compliment the fulfilled processes into inventory deliveries to customer destinations. (ii) Strategic processes: These are the components of the strategic tools which Procter and Gamble uses in fostering attractive behavioral conceptions that put it in a scope of comparative advantage.It also combines various processes that are of necessity in formulating the highest levels in the management of the supply chain. Firstly, it is endowed with optimization of its strategic network which includes its warehouse locations, sizes, numbers and the facilities for transfer and distribution centers.

It also involves the requisites of strategic partnership of the company with various stakeholders such as customers, suppliers and distributors.Consequently, a system of adequate communication is developed that provides the flow of information across the different corporate components. As of implicit rationality, the coordination into product designing remains of significance. This helps to ensure that the existing and the possible new products are maximally integrated within the fundamental layout of the supply chain to ensure the highest levels of efficiency in the company’s

activities. It is also important to safeguard the interest of the infrastructure that maximizes information technology.

This is important in increasing the efficiency of the operations that are involved in the supply chain above ensuring a well coordinated flow of information across the various points(Emiko, 1999, p. 63) (iii) Tactical ideas and measures: a comparative outlay of tactical processes and measures compliment the productive outlay of the Procter and Gamble supply chain. These include the most appropriate decisions towards contracts sourcing as well as other complimentary purchasing decisions.It is also important to mention the role played by the various decisions in production that may involve, scheduling, process planning and contracting. Various decisions that align the inventory process are also of necessity and may include the locations, the quantities of inventory and their quality. To achieve the most cost efficient supply chain process, a tactful decision on transportation ought to be made.

This is adequately captured by the procedures of Procter and Gamble.This is achieved through a well monitored transportation process that is defined in terms of external transport contracts, transport routes and their frequencies. It is equally important to mention the role played by benchmarking processes in the corporate distribution framework. This is a monitoring process into the components of the operations that are made by it competitors with the aim of creating the most competing implementations and also the most optimal practices that would keep the company at high levels of competition (Sandor, Thomas, 2004, 126)