International Marketing Plan - P&G PDF

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FY INSTITUTE OF TECHNOLOGY

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EDGE HILL UNIVERSITY

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BSc(Hons)Business and Management

Module Code:BUS3004F

Module Name:International Strategic Marketing

Individual Assignment

International Marketing Plan

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Content...............................................................................................................Page Preface. (1)

A.Introduction (1)

A.1Pampers brand history (1)

A.1.1Invention (1)

A.1.2Logo (1)

B.Current Situation Analysis (2)

B.1Market Analysis (2)

B.2Pampers Competitors in China (3)

B.2.1Competitor-based pricing (3)

B.3Mode of Entry (4)

C.Export Capacity (4)

C.1Large population (4)

D.S.W.O.T (5)

E.Critical Success Factors (6)

F.Objectives (6)

F.1Company mission Statement (6)

F.2Company’s Objectives (7)

G.Target Customers (7)

I.Marketing Strategies (8)

I.1Product strategies: (8)

I.2Service strategies: (8)

I.3Pricing Strategies (8)

I.4Place/Distribution strategies (9)

Content...............................................................................................................Page I.5Promotional Strategies (10)

J.Relationship Management with distributor&Business Ethics (10)

K.Advertising&Promotional Budget (11)

K.2Promotional Budget (12)

L.Sales Forecast (12)

M.Implementation (12)

N.Recommendations&Conclusion (13)

Reference: (14)

International Marketing Plan

Proctor&Gamble(Pampers diapers)

Preface

This assignment has on the international marketing plan of Pampers diapers from U.S to Shen Zhen,China.

Pampers is one of the leader brands of baby product markets by Proctor&Gamble.Pampers is the No.1-selling diaper in China even worldwide.

A.Introduction

A.1Pampers brand history

A.1.1Invention

Disposable Diapers have come a long way since

1961,when Victor Mills,an American chemical

engineer who,while working for the Procter&

Gamble Co.,revolutionized child care with the

invention of the disposable diaper;in order to help

him better care for his own grandson.Since then

moms have come to rely on them as a trusted

go-to product.(Study Pampers History)

A.1.2Logo

The Pampers logo has undergone several changes throughout the years.Its current version is a typical example of a warm,instantly recognizable mark that reflects attributes such as love,light,sunshine and care.the logo features

blue,yellow and white colors,all these colors exemplify excellence,happiness,purity and elegance.The font of the logo is a custom typeface.logo design history refer to the picture(Alex,N.2014).

B.Current Situation Analysis.

B.1Market Analysis.

It is as terrible thing to launch Pamepers

in China in1980’s.Because consumers

simply did not see a need for disposable

diapers in those days.between traditional

cloth diapers and kaidangku,Chinese

mothers felt that they had their babies

covered.Pampers is a product that

changing consumer behavior to create a

market for it in China.

Sameer,M(2013)’In2011,Chinese retail sales of diapers were around USD 4.33billion(RMB26billion),approximately the same as US sales.What makes China so attractive for P&G is that while diapers sales grew at26%over2010–2011,they declined by5%in the United States'.

B.2Pampers Competitors in China

There are many competitor in China diaper market.Such as Huggies,Merries,Mamy poko,Anerle(Owen by Hengan),Chinus,Fitti,Sealer Etc.But Huggies is the biggest competitor in China,Huggies are available in over50countries worldwide,including in North and South America,Asia/Pacific,Europe and the Middle East.They are also available in South Africa.In the Shenzhen of China,they are sold in a variety of retailers,including Walmart,Carrefour.

B.2.1Competitor-based pricing

Based on pricing at Walmart:

From the following chart that easy to know that the their price are closely related.

Unit Huggies Pampers

Little Snugglers diapers Diaper$0.26

snug and Dry diapers Diaper$0.24

Little Movers Diaper$0.36

Goodnites Diaper$0.79

cruisers Diaper$0.35

Swaddlers Diaper$0.31

sensitive Diaper$0.35

Underjams Diaper$0.67

B.3Mode of Entry

P&G entered China through a joint venture with a Hong Kong company,Hutchison Whampoa.The joint venture business formed another joint venture with Guangzhou Soup Factory and began producing P&G's first product for the Chinese market-Head&Shoulders shampoo.Within a year of launch,Head&Shoulders had gained about15%of the Guangdong market.

C.Export Capacity

C.1Large population

As everyone’s know China is a country with large population.Year2002to 2012the birth rate is similar,But the population of China at the same period is different,this means Over30million babies experience the comfort and dryness of Pampers every day.

C.2Rapid increase in consumer spending

One-child policy in China,parents want to offer the best things to the only Child.Based on the increase of the PDI(Personal disposable income).More and more educated and young mothers need the high quality disposable diapers to better care of their baby.Especially in the modern and developed City,Shenzhen city of China.This will rapid increase in consumer spending.

D.S.W.O.T

Strength

1,highest market share among its

competitors

2,Higher brand interest of consumer

in Pampers than others.

3,Aggressive advertising

4,Strong distribution network

Weakness

1,High cost

2,Aggressive competitors

Opportunities

1,Regular innovations in the product to maintain customers high involvement

2,Good CSR activities to promote the product

3,Innovative ways to connect with mothers

https://www.360docs.net/doc/9317921294.html,rge population

5.Rapid increase in consumer spending

6.To deploy new technology Threat

1,Price was with competitors

2,Sensitive product,any small mishap can hurt the image of the product and will lost the support of mothers

3,Easy substitute

https://www.360docs.net/doc/9317921294.html,ernment polices®ulation

5.Intense competition

E.Critical Success Factors

The wide availability of the Pampers brand is a key to its success as a parent-friendly brand.You can find Pampers pretty much anywhere,from mom-and-pop corner stores to big box retailers,regardless of the time of day or night.This means,when you’ve forgotten to stock up,you won’t have to desperately wait for a nearby store to open or keep your eye out for the FedEx truck if you tend to order them online.That kind of reliability is important to parents,who don't want to pay more for a substitute they haven't tried.(Study Pampers Annual Report2012)

F.Objectives

F.1Company mission Statement

Year Mission

1961The first Pampers disposable diapers arrive,instantly becoming a hit with moms and babies.

1971Moms no longer play‘Pin the Diaper on the Baby 1986Thinner and drier with Pampers Ultra

1994The first diaper with stretchy sides,made to fit like no diaper ever.

https://www.360docs.net/doc/9317921294.html, Arrives

2001Custom fit as baby grows

2002Tiny Diapers for Tiny Miracles

2003Caring for every baby,everywhere

2006protect over100million babies around the world.

2009Pampers Facebook arrives

2010Pampers first high performance diaper comes

F.2Company’s Objectives.

Pampers Objective is:Keep baby comfortable,dry and clean,reinventing childcare,value well-being of parents and babies-family oriented.

G.Target Customers

Pampers'target market is mostly new parents,though they also target parents of kids in diapers in general.This is because brand loyalty means they may end up using Pampers diapers for the entire time their child is in diapers,and they won't have their mind made up about any particular brand being best yet.Getting someone to switch from a different brand is harder,and unlike many other products people simply stop using diapers after a while because their kids become potty trained,so new parents are more valuable.

H.Positioning

Pampers is positioned as global leader in Baby Care Products that keeps babies comfortable and dry while they sleep and play.World’s leading and trusted baby care brand–Pampers innovative technology(Absorbent Gelling Material)locks wetness in faster then any other brand.Pampers targets

parents,specifically mothers throughout the different developmental stages of their baby-from birth to toddlers.Market research shows that moms associate Pampers with being a trusted and high quality product.

I.Marketing Strategies

I.1Product strategies:

seeing the world through the eyes of a baby.

I.2Service strategies:

What makes Pampers’marketing

strategy stand out is its investment in

making its website personal.On first visit

to the site,the mother is asked her child’s

age and then the site content is adjusted

What’s more,the site has a

conversational feel to it.With“Pampers

Village”(loyalty program),the brand offers

its clients three additional services:

access to promotions,newsletters

tailored to their needs depending on the

children’s age,and also the opportunity

to talk to experts.(Study Marion Braizaz,2013).

I.3Pricing Strategies

Pampers uses non price competition because they focus on product quality to distinguish its product from other competing brands.An advantage of this is that Pampers has built customer loyalty,which increases the brand’s unit sales.There are cheaper substitutes that consumers can purchase making the demand-based pricing elastic.Meaning that if the price for a product increases

the quantity demanded decreases.This is why Pampers relies on consumer loyalty to maintain sales but if the consumers buying power decreases,Pampers sales may decrease as well.Pampers is not a premium product given that there are suitable substitutions such as Huggies,Luvs,or private and generic brands.Overall,Pampers is economically affordable for any income.In addition,all of the products prices end with a nine giving the consumer a sense of value for their money.This type of pricing is called psychological pricing and is a common pricing strategy used by marketers.Pampers does a good job of serving the needs of its customers by offering them a fair and reasonable price for their products.Pampers has created customer loyalty by not sacrificing quality in order to lower their prices.

I.4Place/Distribution strategies

Includes marketing channels and physical distribution issues.Pampers uses the long-standing distribution channel C which takes the product form the producer to a wholesaler,then to a retailer,and finally to consumers.During this process,Pampers deals with physical distribution issues including order processing,inventory management,warehousing,and transportation.Pampers order processing has three main tasks.The first is order entry,the second is order handling,and the third is order delivery.All of this is done by use of electronic data interchange.Pampers uses inventory management to maintain adequate assortments of products to meet their customers’needs.By doing so Pampers is able to minimize inventory costs.Pampers have many warehouses that store and move the products.Pamper moves products from the producer to wholesaler and then to the retailer by use of transportation.Pamper uses the railroad system when available to move products cheaply.They also use trucks,waterways,and airways to move their products.Pampers is doing an adequate job when it comes to placement by minimizing the costs wherever possible.

I.5Promotional Strategies

When looking at promotion Pampers uses competitive advertising,public relations,and customer loyalty.Through competitive advertising Pampers points out their special features,uses and advantages relative to competing brands.Pampers advertise how their products change with each developmental stage from newborns to toddlers making their product stand out among other competitors.

Pampers to use the pull marketing strategy which investing in consumer advertising to build brand awareness.Pampers uses networks to accomplish their relations.Their network consists of a number of organizations that work in the best interests of parents and children.Some of which include March of Dimes,Cincinnati Children’s Hospital Medical Center,and The National Association of Pediatric Nurse Associates.Pampers makes donations to these organizations.In addition,Pampers has a website designed especially for parents and health-care professionals that educates individuals on many aspects of babies and toddlers.

Customer loyalty programs include sales promotions of coupons,sweepstakes,rewards,and free samples.Pampers use these techniques to build sales and maintain customer loyalty by rewarding the consumer for purchasing their products.Once a consumer becomes a Pampers member,Pampers uses direct marketing strategies to maintain customer loyalty.These strategies include sending brochures,pamphlets,and booklets with important information about each development stage as the consumers child grows while promoting their products that fit each particular stage.

J.Relationship Management with distributor&Business Ethics

We sell most of our products via retail customers,which consist of mass merchandisers,grocery stores,membership club stores,drug

stores,high-frequency stores,distributors and e-commerce retailers.Our success is dependent on our ability to successfully manage relationships with our retail trade customers.This includes our ability to offer trade terms that are acceptable to our customers and are aligned with our pricing and profitability targets.Our business could suffer if we cannot reach agreement with a key customer based on our trade terms and principles.Our business would be negatively impacted if a key customer were to significantly reduce the inventory level of our products or experience a significant business disruption.Consolidation among our retail customers could also create significant cost and margin pressure and lead to more complexity across broader geographic boundaries for both us and our key retailers.This would be particularly challenging if major customers are addressing local trade pressures,local law and regulation changes or financial distress.

K.Advertising&Promotional Budget

Advertising is done through magazines,television commercials,internet websites,billboards,and through direct marketing.Pampers also uses product placement in movies and shows like Three Men and a Baby or Make Room for a Baby.This is a great way that Pampers promotes its products.

K.2Promotional Budget

One reason for the marketing makeover for Pampers,which has an annual advertising budget estimated at$50million,is that mainstream marketers like P.&G.find they must compete for attention with the eye-catching,even eyebrow-raising ads peddling products and services for the new generation of dot-com entrepreneurs.

Another reason is that decades of denigration of P&G.as the purveyor of lackluster,formulaic campaigns have taken their toll,particularly as the company strives to stimulate demand for its familiar packaged goods as part of ambitious plans to double sales in five years.

L.Sales Forecast

After viewing the last few years P&G’s Baby Care&Family Care sector sales performance.We are expecting to increase sales from$15.07billion at the end of2008to$22million by the end of2014.This sales forecast is in line with the objectives the Company.

M.Implementation

P&G learned a lot from their experience over the past years,and have applied this learning to a four-point plan to drive sales forecast.

First,We need to be sure we are consistently growing our market share on these brands

Second,We’ll use fast-cycle learning techniques to get rapid consumer validation of our biggest ideas,and commercialize those ideas more quickly worldwide.

Third,We’ll build on this strength by collaborating more closely with customers.The result will be even more innovative marketing programs for new and established brands alike.

Fourth,We deployed teams to drive out waste and to find new efficiency in overhead management,marketing support and product costs.In addition,we’ve renewed our emphasis on capital investment and working-capital efficiency.

N.Recommendations&Conclusion

Pampers has been successful in positioning its brand.They are consistent with their message and their consumers are well informed about their products.Pampers is successfully promoting its products while educating individuals about the developmental stages from newborns to toddlers.Of course,there is always room for improvements.Extending the product line to include bath products is one recommendation.Some examples could include Pampers shampoos,soaps,lotions,and oils.Pampers could promote their product by including coupons within or on their packaging.This encourages customer loyalty by rewarding the consumer with extra savings.Maybe Pampers could come up with reward points by issuing membership cards and each time used they earn points that add up to Pamper dollars and then redeemed when purchasing any Pampers products.There are many ways that Pampers can improve their marketing strategy,but for now the strategy they are using works and there is no need for change at this time.

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