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Procter and Gamble: PEST & SWOT Analysis

Procter and Gamble Market Environment

Central problem

Procter and Gamble (P&G) started its PuR task as part of selling drinking water purification technology named the PuR sachets. However, stepping into the market with drinking water purification technology possessed three major issues all related to brand and product identification. Thus, with P&G facing brand and product troubles, three major problems were threatening to decapitate the opportunities that were poured in to the PuR project. The very first problem that PuR job as creating awareness for the brand and product that was not traded before on the market. Thus, to advertise the product, the company faced two secondary problems which included difficulties in establishing ready market for the product and convincing customers that the PuR sachets were relevant in their lives. Second, the business developed the project through heavy spending. The trouble from the investment in to the PuR project is the fact that the company's under per sales did not seem to be sufficient enough for the costs, hence the management was contemplating on falling the project. Thirdly, while PuR was a reality and that the company was seeking authorization from CDC, a major problem involved the lack of people or customer demand for the merchandise whatever the undeniable fact that P&G tried to convince customers that grubby water caused the diarrhea (Hanson and Karen, 11).

Secondary problems that confronted P&G included the actual fact that the PuR used preparation method that was very hard to duplicate but very expensive as well. Thus, the company could not trade its water purification solution at a cost that customers were able to afford. Additionally, the mark market probably at an increased risk of contracting diarrhea credited to usage of dirty drinking water was the very one that cannot afford to buy the PuR sachets at the high prices. Collectively, finding market was a foundation and persisting problem that didn't favor the PuR project and also didn't have the potential to preserve the business enterprise projection of the business.

Environmental Scanning

  1. Political Factors

P&G targeted various markets with the PuR sachets. Among these were the pioneer market in Pakistan, Guatemala, and Morocco. The politics environment in the majority of these markets favored the marketing of PuR sachets but Morocco was quite difficult as testing at institution level was rejected. All the identified markets allowed for community trials of the PuR sachets which designed that the one major problem the company was facing was associated with its approach in working with various major governmental departments and ministries. Like in Morocco, the business could not get acceptance for tests at the school level but it was able to get authorization of the CDC in the US.

  1. Economic Factors

Among the monetary factor that were facing P&G included the nature of the market as well as the social course of the audience of the merchandise. First, the CDC saw potential in the PuR sachets and motivated the company to continue with the job. However, the business management had acquired enough of the under per sales due to lack of sustaining customer bottom part. Additionally, with regards to the existence of other brands and availability of bottled water, P&G was not getting the maximum amount of return on investment as it had hoped for. Finally, multiple exams and commissioning of research and development sustained for taking more of the company's financial electricity thus weakening its promotional power. The business once needed to take a anxious stance of signing a deal with nonprofit company so that it can promote the PuR sachets in expanding nations. This approach shows how financially desperate the market was making the company accessible.

  1. Social Factors

Social factors that a lot of companies come to mind about today are the income with their target market and the underlying issues that drive the demand for products and services. Among these issues, the prospective market for PuR sachets were the homeowners that experienced bottom-of-the-pyramid entities, children. However, the public class which health problems related to dusty water could affect were the low-income families. The situation with the PuR sachet marketplace is that it had very little experience in using water purification methods and also did not hold the financial potential to buy the products that the prices they were traded at. While filthy water was associated with diseases such as diarrhea, the mark market acquired other issues impacting them besides the diseases - the included household income and account of other factors besides drinking water treatment.

  1. Technological Factors

While the majority of the factors considered under this name played a negative role to the development and trading of PuR sachets, technology was the only one that experienced an all-round positive result to the anxious situation. P&G experienced the required strength to develop research and development techniques aimed at taking care of the majority of its jobs. However, considering research and development, P&G possessed to purchase technology that both determined the need for drinking water purification. On top of that, the product packaging of the PuR was light and may store the articles for over three years. This process in technology enabled the company- despite the low demand- the products did not go to waste materials due to their extended life time.

SWOT Analysis

  1. Strengths

Among the strengths of P&G include:

  • Financial durability of the company
  • The company is more developed worldwide
  • The company is diversified and has numerous other products it investments which donate to its financial strength
  • The company's philanthropic tradition attaches it with customers as it contributes to various charity events
  1. Weaknesses

Among the weaknesses of P&G include

  • The company is diversified and will be offering a continuum of products to the marketplace from health products to local animal products. This approach makes the business's strategic methodology unfocused.
  • The company is involved with non-effective marketing promotions that drain the company's financial stableness.
  • Due to poor market feasibility studies, the company's venture in Morocco, Pakistan, and Guatemala all didn't meet expectations
  • With unfocused research and development, the business was required to call back its products for redevelopment spending additional money.
  1. Opportunities
  • The company pioneered a product that sustained to attract more customers credited to health education programs
  • The company's joint venture with local companies increase its market penetration and spreads risks to make financial security.
  • With reference to Morocco, the business is able to reach out for additional customers looking for clean drinking water while in Pakistan expanding upper class population providing ready market for the PuR sachets.
  • Increasing situations of waterborne diseases create a larger market for water purification alternatives.
  1. Threats
  2. More companies and brands have ventured into the market and offer far more affordable products as compared to the PuR sachets
  3. New accessibility products have the potential to weaken the current market talk about.
  4. Regulatory agencies in today's target markets prevent the company from saturating the available market segments with the PuR sachets.

Strategic Alternatives

The proper alternatives you can use to ensure that the business can operate more profitably would be to

  1. Hire marketing company to properly promote the products and manage finances
  2. Reduce the product portfolio so that the company focuses better on the main lines of products
  3. Promote products in more active markets alternatively than slowly producing markets

Course of Action

The course of action for every of the alternative is as follows:

Alternative 1: In selecting suitable marketing company, the company would invite marketing companies to bet for a twelve months contract to determine potential markets and combine market segmentation relating to social factors affecting each type of market (Kahn, 76).

Alternative 2: Since P&G investments numerous products, the business is to select the merchandise that are least profitable to the business and discontinue their creation. This would enable the company to invest more funds to meaningful assignments while reducing cost in the development of non-value intensive products (Kahn, 78).

Alternative 3: The Company is to employ a marketing organization in cases like this or to perform research about the most favorable marketplaces worth investing in. Additionally, the current markets or countries that the business invests in could be measured in conditions of economic stability and the per capita for recognized potential clients. In consideration, the business or the employed marketing organization can check out the Gini Index of the prospective population of varied potential markets to recognize how sustainable the business operations can be in a fresh environment (Masur, 666).

Work Cited

Hanson, Margaret and Karen Powell. Procter & Gamble PuR Purifier of Water: Developing the Product and Taking it to advertise. INSEAD. 2009. Print. Retrieved from: http://www. gwu. edu/~clai/training_programs/UChile_MBA_Programs/uchilemba2010/Griffin_Readings/CSR_PuR_A_case. pdf

Kahn, Kenneth. Functional, Multifunctional, and Cross-Functional: Considerations for Marketing Management. Journal of Marketing Theory and Practice, Vol. 17, No. 1 2009: pp. 75-84. Print out.

Masur, Jonathan and Posner, Eric. Against Feasibility Research. The University of Chicago Legislation Review, Vol. 77, No. 2: 2010; pp. 657-716. Printing.

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