P&G's_Marketing_in_China

P&G is a global, publicly traded Fortune 500 company, and the largest consumer packaged goods company in the world. P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G now has 50 Leadership Brands, which are among the world's best known household names and which account for 90% of P&G sales and more than 90% of profits. Four billion times a day, P&G brands touch the lives of people around the world. P&G utilizes multi brand strategy in conducting its business. Multi brand strategy refers to a marketing strategy under which two or more than two similar products of a firm are marketed under different brand names. In most of the cases, these products are competing ones and are marketed under the brand names which are completely unrelated. The COO of P&G said the key to a brand to be successful is it really defines what its benefit is and delivers the benefit in the way that better than any other competitors to make people’s life better. The aim is to meet needs of many people with many different ways This strategy has several advantages: First of all, by adopting multi brand strategy, a company can obtain greater space in the market, where little space is left for competitors. Secondly, by promoting similar products under different brand names, a company can fill up the price gaps and quality gaps of the target market. In this way, the market can become saturated with the similar products of the same company. In addition, this kind of strategy caters to brand-switchers users who like to experiment with different brands, and it also keeps the firm's managers on their toes by generating internal competition to improve productivity. However, it also has some disadvantages that may hurt the company’s development: Number one comes with these brands eating into each other’s sales. And it is important to note that using this strategy means confronting higher risks. Cost control is another key problem here. Obviously, the more brands there are to manage, the higher the costs. For this reason, many prudent companies prefer brand extension over multi-brands management. P&G has one of the largest and strongest portfolios of trusted brands, including Pampers, Tide, Pantene, Bounty, Pringles, Gillette, Crest and Olay. They provide not only products of various brands, but also high-quality and well-packaged ones which can satisfy customers in all aspects. As a major consumer packaged goods manufacturers, P&G has already overturned the traditional retailing channels and switch to one-stop such as malls, supermarkets and grocery stores. And also, the revolution of information technology has reshaped P&G’s distribution system since a thorough supply-chain management and control system can automatically deal orders and monitor the whole process. P&G has its own unique and suitable promotion strategy system. The first method in promoting their products is doing advertisement, involving TV, magazines, Subway and some other media Ads. Besides the advertisements, the company committed to build a good publicity and public relations. P&G’s significant Pricing tactics are defining different prices for different brands to satisfy different customers. P&G’s product prices ranged from 9.9 Yuan to more than 60 Yuan. No matter how much money the customers want to spend on hair care shampoos, P&G’s products can always satisfy customers’ needs. In addition, P&G always has great discounts such as buying a large one get a small one for free at holidays. Procter & Gamble entered Mainland China in 1988 by establishing its first joint venture - P&G (Guangzhou) Ltd. In over 20 years, P&G has made remarkable achievements in China. P&G is the largest consumer products company in China, with annual sales of US$2 billion. They are in No. 1 market share position in all categories where they compete. In the Olympic program, China athletes have cooperated with brand of P&G. They changed all the materials from marketing standpoint and their Olympic logo has the red and yellow for China. They also did some great programs with digital broadcast partners, which are China specific and made documentary films that show cases of moms and China athletes. P&G brought a lot more brands that would be expanded in China as well as different product line. Besides, China’s got Talent sponsorship for Rejoice, which makes people around China love this shampoo brand. I think P&G’s got many creative marketing ideas such as “The living artist”. It brings all the brands together and sets a magazine, a website and another system that you can go out and work with retailers to be able to buy multiple brands. Rejoice’s special idea about valentines’ day is another example, thus you can send a love message to your valentine through rejoice. They have people vote online the best messages and post those messages around 80 billboards on valentines’ day around China. This is one way that makes people love this brand: Rejoice And also, “China’s Got Talent” is a great marketing campaign for Head&shoulders. It’s great for consumers in China that the ability to express themselves in totally new way. Head&shoulders gives you confidence because it not only washes out dandruff, but also gives people confidence, thus you can express yourself in much better ways. In my humble opinion, P&G will continually have better performance.