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Running Head: BIG BRANDS ALL CHANGE!

BIG BRANDS ALL CHANGE! [Writers Name] [Institutes Name]

Contents
Contents..................................................................................................................... 2 Introduction................................................................................................................ 3 Task 1.........................................................................................................................3 Discontinuation of the Products...............................................................................3 Reasons of Discontinuation.....................................................................................3 Procter & Gamble.................................................................................................3 Unilever................................................................................................................ 5 Task 2.........................................................................................................................7 Analysis of Tools .....................................................................................................7 Procter & Gamble.................................................................................................7 Marketing Analysis Tools, Marketing Strategy and Planning Development..........7 Marketing Planning Tool and Associated Advantages .........................................8 Unilever................................................................................................................ 8 Marketing Analysis Tools, Marketing Strategy and Planning Development..........8 Marketing Planning Tool and Associated Advantages .......................................10 Task 3.......................................................................................................................10 Research and Tools Needed For Decision Making.................................................10 Procter and Gamble...........................................................................................10 Unilever.............................................................................................................. 12 Task 4.......................................................................................................................13 Description of Strategic Marketing Choices...........................................................13 Procter and Gamble ..........................................................................................13 Unilever.............................................................................................................. 14 Further Strategic Marketing Choices.....................................................................15 Procter and Gamble ..........................................................................................15 Unilever.............................................................................................................. 15 Conclusion................................................................................................................ 16 References................................................................................................................17

Introduction

Task 1 Discontinuation of the Products It is observed and reported that since many years there have been many products that have been discontinued by Procter & Gamble. In the year 2005, it was seen that one of the main products that was discontinued included Physique that stayed in the market for more than six years and Herbal Essences later on replaced it. Another important product that has been discontinued by Procter & Gamble includes Pert Plus shampoo. It has been reported that since the year of 2005, there have been more than 5 hair care products specifically shampoos that have been discontinued by Procter & Gamble. as compared to the station that has vein given for P&G, the case of Unilever is different as there are a lesser number of products that have been discontinued and these include Persil washing liquid that has been known as an important washing brand in the US. Other than this, it is observed and reported that sunflower oil Flora has also been discontinued by Unilever. Reasons of Discontinuation It has been reported by Peng (2008) that there are several reasons based on which the organizations and the manufacturers finally decide to discontinue a product and to take it off the shelves from various stores and shopping malls in the countries. Procter & Gamble In the case of Procter & Gamble, it is observed and reported that as compared to Unilever there is a large number of products that have been discontinued. There are some reasons that have

been highlighted based on which the products, especially the hair care products have been discontinued.
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One of the main reasons that has been reported in the discontinuation of the

hair care products by Procter & Gamble is that it has been reported that not much of a competition is being attracted by the hair care products thereby having greater hair care products range does not make big differences in the sales neither in the competition.
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Secondly an important fact that has been recognized at the end of the

Procter & Gamble authorities is that in the presence of a large range of hair care products, there is a need to decide in regards to which products are to be successful and which products are failing thereby are in a need to be discontinued. Here one main fact that needs to be realized is that in the case of the failing products, in the past, it has been argued that struggling with the failing product was considered as one main way to succeed but these days struggling with the failing product is considered a waste of resources. Feeling that hair care products including Pert Plus and Physique are failing and there is no change in the sales, means that there is a need to discontinue the products. Thereby the latest strategy that has been adopted by Procter and Gamble include concentrating on Pantene, Head and Shoulders, Herbal Essences and Aussie. These days it has been reported that two of the most important hair care products that are helping Procter and Gamble in gaining an increased market share that include Pantene and Head & Shoulders.

Unilever Some of the main reasons that have been seen in the case of discontinuation of the products in Unilever include the following;
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Russell (2009) has reported that most of the products that have been

discontinued are based on the geographic regions and the markets that exist in these selected geographical regions. The main reason is that ether may be a specific level of competition that exists in the market. For example in the Indian market, great competition is seen in the case of the hair care products. Geographical; competition is an important fact that is also related to the success of an organization. Thereby in the Indian market, it is seen that lesser competition is seen in the case of cooking oils that includes the sunflower oil.
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Sunflower oil Flora was discontinued in India and one of the main reasons

is that there is lesser competition in the case of cooking oils in India. Flora was one of the main products that was seen not to be making any changes in the sales figures.
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Another main reason highlighted in the case of Unilever discontinuing the

products is that Unilever is one brand that has a large number of products to manage and these include washing powders, shampoos and hair care products, tea and milk based products; based on which it can be seen that Unilever knows the fact that there is a need to discontinue some of the products based on this decisions, the product that was chosen to be discontinued included sunflower oil Flora that was not making any changes in the sales figures.

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An important fact that has been reported by Peng (2008) in the case of

Unilever is that a large range of products is one of the main reasons of an increased competition but the main challenge that is faced by Unilever is that most of the times it is hard to manage the competition thereby it is important that the products are discontinued that are not giving any sales and revenues.
5.

An important fact that has been highlighted in the case of Flora is that

there was no change in the profits of the company as a result of the sales of the oil products based on which it was decided to be discontinued. From the discussion here, some of the main facts that can be highlighted here are that if there is a multi-range product line being offered by an organization and there are certain products that are not proving to be very profitable for the organization than it is important that the products are discontinued. In the past it was believed that success of the organization can be revived if important changes are made in the failing product. But the strategy is otherwise these days and it is observed and reported that the failing products are only discontinued and are replaced by the products that are more promising in sales and sales volumes.

Task 2 Analysis of Tools Procter & Gamble Marketing Analysis Tools, Marketing Strategy and Planning Development Procter and Gamble has been known to have the largest product portfolio and two of the main challenges that are being faced by P&G include balancing and maintenance of the scale of economies and cost efficiency. After the acquisition of Gillette, it has been reported that P&G is now the owner of more than 22 brands and from each brand, more than US$ 1 billion is being earned on an annual basis. It is important for any organization that the marketing managers are diligent and are aware of the important facts that can lead to increased sales. The main factors that can help in increasing the sales is the research that is conducted by the marketing researchers within the organization. Black (2009) has reported that same is the case with Procter & Gamble. It is observed and reported that it is known by the marketing managers in Procter & Gamble that there are variety of dimensions by the help of which the consumers can be attracted and these are the days of technology based on which the marketing can also be done in a variety of ways. It has been reported that from the television media, to the print media and to the web, all kinds of the marketing strategies and platforms have been used by Procter & Gamble in order to approach more consumers. On the other hand, it is observed and reported by Russell (2009) that the PG.com is an important platform by the help of which monthly newsletters can also be subscribed for by the

customers as these newsletters have also been used as an important source of email based marketing. In the case of planning and development it is observed and reported that the main aim of Procter and Gamble is future sustainability. This P&G has been observed to participate in the activities that can help P&G in sustaining their future. Corporate Standards System is one of the main strategy that has been used in enhancing the Research and Development sector in the organization. some of the main aims that are to be achieved in these cases include an increase in innovation, a reduction in the production cost while keeping a focus on the quality of the products. Marketing Planning Tool and Associated Advantages Recently it has been reported by Peng (2008) that in order to increase the marketing on the web, marketing collaborative software has been bought by Procter & Gamble, known as Emmperative. In this case it is observed and reported that the software helps the organization in collecting the information from other colleagues sitting in other countries and markets, collecting various kinds of research from these colleagues and in applying and implementing the knowledge on the products. Unilever Marketing Analysis Tools, Marketing Strategy and Planning Development Marketing has been an important strategy adopted by Unilever. In this case, innovation has always been the main aspect of the marketing strategy of Unilever. It is observed and reported that other than an increased research being conducted by the marketing researchers in Unilever, there has been an increased reshuffling of the marketing managers and researchers in

Unilever. Shuffling not only introduces skills, improved knowledge and experiences but also a great change in the ideas that are used to market the products. As the main focus is on the stronger line expansion based on which in 2003, there were a large number of products discontinued as there was a reduction of products from 1600 to 400. Thus, the products that are now being taken into focus are the ones that match and align with the strategies of the organization and with the research and development objectives. One of the main strategies that have been used by Unilever is alliances with Pepsi. On the other hand, it is observed and reported that there is an increased competition being faced by Unilever that is also based on the alliances and mergers. In the case of planning and development, there have been many changes within Unilever. In the past as it has been reported that there were two CEOs, thereby there were two separate organizational structures and the mode of earning was also different in both cases. These were the main issues that were being faced by Unilever in the beginning, as this was the state having great negative effects on the organizations economies of scales, revenues and the outcomes from the organization. in the year of 2004, it was seen that the sales and the profits began to sore and the revenues and sales were lesser based on which a great change in the strategies was proposed. Thereby some of the main strategies that were seen to be changed included a change in the products lines, the production lines, cost elimination, buying the share backs, having an increased focus on the core products, increased spending in the research and development activities, including logistics in the buyer- supplier relationship, advertising, marketing and focusing on the regional marketing.

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Marketing Planning Tool and Associated Advantages The strategies that have been used by Unilever are much stronger as compared to those adopted by Procter and Gamble. One of the main facts that make Unilever stand out as compared to P&G is that Unilever has higher and much better brand recognition as is observed and reported in the case of products as Dove and Birds Eye. The research and development objectives that have been outlined by Unilever are even much stronger as compared to P&G. One of the main aims in the case of R&D objectives of Unilever includes an expansion in the product line and product range. Some of the main product lines that are focused to be expanded included personal care products, personal wash products and deodorants that have been related to an increased revenue and sales achieved by Unilever.

Task 3 Research and Tools Needed For Decision Making Procter and Gamble From the discussion above some issues have been seen with the marketing strategies and the development strategies. One of the main issues that are being faced at Procter and Gamble is that there is a large product line and there is a need to highlight the products that are being beneficial for the company in relation to the profits and revenues that are being gained. On the other hand the second main issue is that the products that are being produced are being targeted for different markets in different geographical locations based on which it is important that Procter and Gamble comes to know and analyze the products in relation to the best geographical location where it is needed and the international and local markets where the product can be

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more successful. Thereby there are two main aspects that are in a need to be researched and analyzed for proper decision making in Procter and Gamble. Peng (2008) has argued that one of the main facts that need to be realized by Procter and Gamble is that there are some analytical tools that are used by the organizations that help in gaining important and necessary information about the markets and the competitors. There are a certain number of advantages that are also related with these analytical tools and if these tools are utilized in a proper manner. if the organization makes sure that the market analysis and the research on the international as well as local markets are conducted in a proper manner than one of the main advantages that can be gained include an increased command on the market, having a detailed knwolddge about the requirements and the demands of the consumers, thereby an increase in the sales as the products that have been introduced in the market are the ones that match the demands, likes and dislikes of the consumers. Secondly, one of the main advantages that are achieved by the organization includes an idea about the strategies that are being adopted by the competitors in order to gain control of the market. In the case of Procter and Gamble, some of the main tools that are required for conducting an appropriate market research include additional research and knowledge that is required in order to know the conditions of the market. In addition, it is observed and reported that the market research needs to be conducted in relation to the geographical locations of the markets and the countries where the markets are located. For example in the case of the Indian markets, the marketing researchers need to analyze the main demands that are being placed by the Indian customers as greater is the demand of the hair care products as compared to the cooking oils manufactured by Procter and Gamble.

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Unilever In the case of Unilever, in the previous sections it is observed and reported that as compared to Procter and Gamble, the situation is much better. The research and development section in Unilever is more developed as compared to Procter and gamble. Greater is the investment invested by Unilever in the research and development section. One of the main facts that have been seen in the case of Unilever is that there has been an intensive marketing research carried out based on which in the past more than 400 products have been discontinued. Some of the main reasons that are associated with the discontinuation of the products include lesser sales of the selected products, no changes were being brought about by the selected products in the revenues of the organization and it was realized that there is a need to decrease the number of products associated with the brand. Unilever has been known to have a strong brand portfolio and as compared to Procter and Gamble, the recognition that has been achieved by Unilever is higher. There are two main product lines that have been known for the success that has been achieved by Unilever and these include food segment, home, and personal care segment. The market volume that is occupied by the food segment is approximately 43% and the market segment shares that are being controlled by the personal care segment are more than 57%. Russell (2009) has highlighted that some of the main issues that are to be focused while using the analytical tools include an increased focus on the corporate strategy that is being used by Unilever, the predict line that has been introduced in the market keeping in mind the fact that for what kind of customers the products have been introduced and most importantly, if there are any low volume brands in the market that are in a need to be removed and discontinued from the market.

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Thereby based on the research that is to be conducted by the marketing researchers in Unilever, there are some decisions that are to be taken. Some of the main decisions that are to be taken in these cases include changes that are needed to be made in the product lines that have been on sale in different markets. One of the main challenges that are to be faced by Unilever are to make an analysis of the products that are to be discontinued. The main advantages that can be achieved by the organization include an increased focus on the product line that needs to be discontinued and the kinds of products that are needed to be continued. Corporate strategy has been a great doubt in the case of success of Unilever thereby one of the main decisions that are to be made here include a change in the corporate strategy. Another main fact that is observed and reported is that at one time there were two CEOs of Unilever based on which there had been a great reduction in the sales and the market shares thereby one of the main change made in the Unilever is a change in the CEO by making sure that there is only one CEO that can handle all the operations in the organization in relation to the marketing and revenues.

Task 4 Description of Strategic Marketing Choices Procter and Gamble It is observed and reported by Peng (2008) that some of the main strategic decisions that have been made by Procter and Gamble include an increase in the marketing on the web based on which investments have been made on the software that include an increased exchange of the ideas from different colleagues. Based on the exchange of the research it is observed and

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reported that the ideas that are then exchanged between the colleagues are the ones that are than implemented in the markets and research. On the other hand, it is observed and reported that the web based marketing has been chosen as an important choice made by Procter and Gamble is that the website has been launched that can help in increasing relationships with the consumers, as on the website PG.com, it is observed and reported that there is a choice that can be availed by the consumers to subscribe for the newsletters that they can receive through emails. One of the main advantage that can be gained by Procter and Gamble in this case is that there is an increased dealings with the consumers that can help the organization in gaining more consumer base. Unilever In the case of Unilever, it is observed and reported that some of the main strategies that have been adopted by Unilever include the change in CEO as two CEOs have been removed and now there is only one CEO. This is the strategy that can help the organization in gaining more revenues and consumer base. The second main strategy that has been adopted by Unilever includes an increased investment on the research and development section. One of the main facts that are under focus in the research and development section in Unilever includes the research on marketing and the markets where the products have been marketed and launched. In these cases, the research that is conducted by the research and development section of Unilever is implemented in the markets. Thirdly, the strategy of reducing the product line has been an important strategy. Since the year of 2003, it has been reported that there has been a great reduction in the product lines in

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the markets and Unilever has made sure that the products that are introduced in the markets are the ones that can help in gaining more revenues and gaining more consumer base. Further Strategic Marketing Choices Procter and Gamble An important choice that can be made by Procter and Gamble include an increase in the investments that are to be made in the research and development section of the organization. Recently it is observed and reported that there are no investments being made in the research and development section and there is a lesser research being conducted by the marketing researchers. On the other hand, it has been analyzed that one of the main strategies that are needed to be changed in Procter and Gamble include a great change in the corporate strategy. Some of the main advantages that can be gained by the organization include an increase in the investments that are to be made on the right places. There is a need that the marketing strategies are changed and there is a need that web based marketing strategies are changed. Unilever In the case of Unilever, some of the main changes that are to be made in the strategies include making changes in the product line. Some of the main facts that are to be included in the strategies include being more focused on the product line. In these cases, it has to be seen if the product line is large and concentrated based on the fact that the products are to be analyzed on the success factor that is attributed to the organization. On the other hand it is important to see if the products that have been launched in the market are contributing to increasing the revenues and the sales volumes.

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Conclusion Unilever and Procter and Gamble are two of the most well-known manufacturers that have been ruling the market with personal care products, home products that include deodorants, washing products, shampoos and skin care products. Since some years it is observed and reported that these two organizations have worked in reducing the number of products they have in the markets. This has been analyzed in depth in the paper and some of the main reasons that are included in this case are an increased range of predict lines or a concentered product line that needs to be less concentrated, some products that may have a nil contribution in increasing the sales and reveneus for the organization and the most important factor is the markets that are located in certain geographical locations where a certain class of products attracts more attention as compared to the other. As an example, the hair care products of Procter and Gamble gas gained more competition in the Indian market as compared to the cooking oils of P&G.

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References Black, K. (2009). Business Statistics: Contemporary Decision Making. Edition 6. John Wiley and Sons. Peng, W. M. (2008). Global Strategy. Edition 2. Cengage Learning. Russell, E. (2009). The Fundamentals of Marketing, AVA fundamentals, AVA academia. AVA Publishing.

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