P & G Brand Strategy

755 Words4 Pages
Being a market pioneer with such a differing portfolio, P&G has been inflexible due to the size of its organization and extensive bureaucracy in shifting to emerging markets. This ill-timed shift in focus meant that P&G forgone the opportunity to engage in market improvement procedure which is pitching existing items to new market, or an expansion technique for new imaginative items brought into new and developing markets. To make up for this strategic product-mix mismatch, P&G has to reposition their products and increase decentralization of management, ensuring that they have the required marketing intelligence, in order to better understand and customize for the local needs and preferences of each emerging market. Lack of price sensitivity…show more content…
They have created unique selling propositions for their products this allows them to place their products in value propositions that that convey more advantages to their buyers. P&G has slowed innovation efforts by relating research expenditure to immediate revenue concerns. Research and innovation should be finished by P&G since they had lost its clients from developed countries like Europe to cheaper and equally capable products made by their competitor such as Unilever. As such, rivals have gained significant market share with more successful innovations and improved their market positioning, threatening P&G’s market leadership. P&G’s utilizes a multi-brand strategy, which is making new brand names in existing product categories. It allows P&G to dominate a reseller’s shelf space with multiband. However, there are disadvantage when using multi-brand strategy, the disadvantage is one brand could easily affect another through association. A scandal relating to another P&G brand could undo all the good customer relationships built by another brand with a customer. This is potentially terrible, because if one or more of P&G’s brands erode significantly, their financial status and market positioning will be adversely…show more content…
Being a multi-billion dollar MNC with a high degree of diversification in its products, P&G runs the risk of over centralization in its management. Recently, P&G’s product portfolio is largely skewed towards the high-end markets, with upward-stretching brands like SK-II looking to obtain higher margins. Being a market leader with such a diverse portfolio, P&G has been inflexible due to the size of its organization and extensive bureaucracy in shifting to emerging markets. This ill-timed shift in focus meant that P&G forgone the opportunity to engage in either a market development strategy (selling existing products to new markets), or a diversification strategy (new innovative products brought into new and growing markets). To make up for this strategic product mix mismatch, P&G has to reposition their products and increase decentralization of management, ensuring that they have the required marketing intelligence, in order to better understand and customize for the local needs and preferences of each emerging
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