.. l be eliminated, which results to more profit for the retailer and P&G. Secondly, if P&G operates as much as possible direct with the retailer, it will be me more up to date in the need of the buyers. That will automatically result in improvement of the marketing department. The channel choice will be then horizontal as stated following: Manufacturer, P&G???Agent??&# 61614;Retailer???consumer Promotion Saving actions, price questions, gift-articles, demonstrations and other forms of sales promotion influences positive the chance of purchasing.
One knows that old people would like to be young and young people would like to be older. It could adapt its ads, because of that. P&G like to target more young people now; it could ad in popular magazines like Nikkei Woman and Sankei Live in Japan for instance. P&G have lack of experience with cosmetics it can train and motivate its sales persons and representatives. Systematically use of displays, discount actions could also be very useful. A very useful strategy for P&G could be the push– and pull-strategy. ? In the push-strategy, the manufacturer tries to push more products by trade promotions through the distribution channel ? In a pull strategy, the aim of the manufacturer is to desire demand by the consumer through commercials and consumer promotion. The consumer will go to a retailer with a question.
The retailer will approach P&G. At this way both the retailer and P&G will become more or less under pressure in order to take a certain product in the assortment. Q3. Suggest a strategic international marketing plan for P&G for the period 2000- 2005. The Marketing Plan for P&G, 2000 Mission P&G want to become a leader in the cosmetic industry. Objectives Going global in cosmetics. Gain market, overseas as much as possible.
? Target market(s), Gaining market in Japan for the cosmetic industry will be profitable in a long-term for P&G. This has to do with two reasons. Firstly, Japan has a young population. The company targets now more young people. Secondly, the prices in Japan for the cosmetics are lower than in Europe. When you want to benefit of a big profit in future, you should start asking low prices for your products in order to attract more consumers. ? Expected sales, Will be very high, because of volume producing it will save costs and the presence of a young population in Japan.
? Profit expectations, Will be lower in the first place, because of the high costs for the launching of the cosmetics. Nevertheless, that will be make up within a year, because of the very suitable choice of the market. ? Market penetration and coverage, P&G launch an existing product in its domestic market into a new market. We can count the market penetration for Japan with the following formula: Number of buyers Market penetration = ————————————– Number of potential buyers For Japan, this will be as stated as follow: 67, 000 ———— * 100%= 67% 100, 000 A very high penetration grade for Japan, that means at the same time a huge market coverage. Assumptions The company will carry on its growth. It has the possibilities to carry it out. It should use its advantages before the competitors start to gain market in Japan. Marketing Audit and Swot Analyse see question 1. Strategies see question 2.
Tactics Here we have to carry out the strategies we already made before. We should do this according to the marketing mix. P&G have to divide the tasks for the projects and point out the persons who will be responsible for those projects. After this, we can give concrete form to action plans. The brand name has an important role by purchasing of consumers for a certain cosmetic. P&G have to position its cosmetics then very strong.
It must have a positive distinguished character. To manage this, it should use the best media for ads and commercials for the right target group. Central is here: Young people would like to be older and old people would like to be young. Budget Budgeting could be used as part of the tactical plan. The best way to make sure that a planned investment or launch of a new product is going to benefit the company is budget every aspects of the company including the new plans. Many articles and books have been written about it. Starting with the sales budget and then moving on to the production budget, the direct and indirect costs as well as fixed and variable costs are going to be included.
The aim of this process is to create a budgeted (predicted) balance sheet that will be use later in the process. What if situation could be used as well. Budgets are going to be compared to the actual and real figures in order to achieve the best results. In some case budgets are also use for other purposes such as control. Control When we compare the achieved results with the formulated objectives, we can see if the plan has succeeded.
In addition, a comparing between times of the marketing spending and results with the drawn-up budgets and with the predicted cash flow, profit or other financial indicators can motivate to corrections. Including the employees in the setting of the budgets could bring more motivation. On the other hand, this approach could lead to lower budgets level. The controls and achievements for both the employees and top managers could be improved. Budgetary control process Executive summary The mission of P&G is to become a leader in the cosmetic industry.
Most of the important objective is to going global in cosmetics. We can assume that P&G is ready to go global in cosmetics. It carries on its growth. The most powerful strength of P&G is its brand name. It can benefit of that in the promotion, positioning and pricing.
The most important weakness is that the firm has lack of experience with cosmetics. To improve that it could train its sales persons, representatives, and it could improve the marketing department and the R&D. The opportunity of the company is to expand its assortment. A limited assortment is also one of its weaknesses. If the firm expand its assortment, it will get rid off that weakness.
The budget will suffice to expand the assortment. The most dangerous threat is the growing competitive pressure. This means that P&G should quick attack the market in order to gain more market and position its products with its well-known brand name before the competitors. An advantage of P&G is that it could hold its prices lower than its competitors, because of the volume production which P&G will undertake. To launch its products in Japan will be a profitable choice for P&G.
The company targets now more young people and Japan’s population is young. This does not mean that the older people should be ignored. One of the results of a marketing research is: Young people would like to be older and old people would like to be younger. If P want to gain as much as, possible market it should also provide in the needs of the older people. Japan is also very close to the United States of America; the domestic market of P.
It will make it then much easier for all operations of the firm. P should than be in business with the retailer directly. It could enlist an agent, but it should eliminate the whole-saler. It will save costs with transporting the products and P could be easier and faster up to date in the needs and wishes of the buyers. The sales expectations are high in Japan.
We have a market penetration of 67%. That means a huge market coverage. The profit expectations are lower in the first place, because of the high costs of the launching. That will make up within in a year. P budgets are part of their tactical and control plan. The controls cover every aspects of the company and allow top managers as well as each department to quantify how well they did in the included period.
In case of something goes wrong, budgets will help identify where the problems are in order to take corrective actions.