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Geographical distributions and global market strategy Essay Example
Geographical distributions and global market strategy Essay Example

Geographical distributions and global market strategy Essay Example

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  • Pages: 7 (3291 words)
  • Published: October 5, 2018
  • Type: Essay
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In order to achieve a sustained and a comparative advantage in its competitive portfolio, Procter and Gamble has developed a wide network of geographical distribution and global marketing strategy. In order to achieve such attractive package of sales, the company has relied on a complex autonomy of distribution, advertising and marketing that serves a wide global region and diversified consumer needs.

It has manufacturing sites situated across the world. The geographical dispensation of manufacturing operations is characterized by five destinations which are Latin America, Africa, Europe, U. S, and Asia.It has wide network of wholly-owned manufacturing sites across these zones which totals more than 200 of such manufacturing sites. In order to attract wide range of sales and meet a wide level of consumption needs for its multicultural consumers, Procter and Gamble has embraced the culture of a broad range of products output which are produced by high technology that is founded on strong incentive into research and development. From the productive outfit of enormous research and development, the company is able to produce a wide range of product output that meets the needs of many consumers across the world.

Marketing strategy. In order to meet its global expansion and consumption strategy, Procter and Gamble has embraced various marketing strategies both through the internet and other methods. To the company, it uses marketing strategy as the concept with which it builds itself in the profitable state of satisfaction to the needs of its broad category of customers. With good marketing strategies, the company has therefore been able to achieve tremendous growth t

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hrough insights of high competitive edge.

(Mani, Minsok, 2001, p.87) The development of its diverse 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

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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

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