1. Read the following case study carefully and answer all the questions given at the end of the case. Procter and Gamble (P&G) began in 1837 when brothers-in-law Willam Procter and James Gamble, whose wives were Sisters, formed a small candle and soap company. From there, P&G innovated and launched scores of revolutionary products of superior quality and value, including Ivory Soap in 1882, Tide Laundry detergent in 1946, Crest Toothpaste with fluoride in 1955, and Pampers disposable diapers in 1961. P&G also acquired a number of companies to open the doors to new product categories. Among these were Richardson Vicks (Makers of Personal care products like Pantene, Olay, Vicks, Gillette, and Noxell. 
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3. Today, P&G is one of the most skillful marketers of consumer packaged goods in the world and holds one of the most powerful portfolios of trusted brands. The company employs 138000 people in more than 80 Countries worldwide and has total worldwide sales of more than $ 79 billion a year. It is the leader in 15 of the 21 product categories in which it competes. Its sustained market leadership rests on a number of capabilities and philosophies: Customer Knowledge: P&G studies its customers both end consumers and trade partners through continuous marketing research and intelligence gathering. It also emphasizes getting its marketers and researchers out into the field, where they can interact with consumers and retailers in the natural environment. Long-Term Outlook: P&G takes the time to analyze each opportunity carefully and prepare the best product, then commits itself to make this product a success. Recently, P&G has focused on increasing its presence in developing markets concentrating on affordability, brand awareness and distribution through e-commerce and high frequency stores. Product Innovation: P&G is an active product innovator, devoting $2 Billion annually to research and development, an impressively high amount for a packaged goods company. It employs more science PhDs than Harvard, Berkeley and MIT combined and apply for roughly 3800 patents each year. Quality strategy: P&G designs products of above-average quality and continuously improves them in ways that matter to consumers. Brand Extension strategy: P&G produces its brands in several sizes and forms. 
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5. This strategy gains more shelf space and prevents competitors from moving in to satisfy unmet market needs. P&G also uses its strong brand names to launch new products with instant recognition and much less advertising outlay. Multibrand strategy: P&G markets several brands in the same product category and each brand meets a different consumer want and competes against specific competitors brands. Hence the company has reduced its vast array of products, sizes, flavors and varieties in recent years to assemble a stronger brand portfolio. Communication pioneer: With its acquisition of Gillette, P&G became the nation’s largest advertiser, spending over $2.3 Billion a year and as such create strong consumer awareness and preference by shifting its attention to online marketing and social media efforts. These efforts help infuse stronger emotional appeals into communications and create deeper consumer connections. Aggressive sales force: P&G sales forces has been named one of the top 25 by Sales and Marketing Management Magazine. 
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7. A key to its success is its closeness to its retailers such as Walmart. Manufacturing efficiency and cost cutting: P&G reputation as a great marketing company is matched by its excellence as a manufacturing company. P&G spends significant amounts developing and improving production operations to keep its costs among the lowest in the industry, allowing it to reduce the premium prices at which some of its goods sell. Brand management system: P&G originated the brand management system, in which one executive is responsible for each brand. Recently, P&G modified its general management structure so each brand category is now run by a category manager with volume and profit responsibility. This help to sharpen strategic focus on key consumer needs and competition in the category. 
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11. 1. Assume that P&G conducts internal analysis and specifically targets the marketing function for analysis. Discuss any five (5) factors that P&G should examine under the marketing function. [15 Marks] 
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13. 2. Explain how P&G could analyze its key competitors in order to predict their future actions. [15 Marks]

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1 Factors for Analysis in the Marketing Function at PG a Consumer Behavior Analysis PG should analyze consumer behavior to understand their needs preferences and buying patterns This analysis will hel... View the full answer