Procter And Gamble

Political Segment.

Changes in both foreign and local political activities have significant effect on companies and group businesses. P&G has developed different strategies over the years which it uses to survive in different political environments and issues.

The nationalisation of foreign companies by most countries in 1960’s affected P&G as it market shares where reduced in the affected areas. This means that companies were subject to local control on import, export, price and employment conditions. Many foreign companies like Coca Cola left India in 1970 as result of the hostile effect of the nationalization policy. Foreign Companies had fear on issues like trademark loss. P&G uses it goodwill and experience to bargain with the government in many countries to modify their policies and regulations. Till date, P&G is a member of many organizations worldwide and has expanded its political ground using it experience and tactical strategy. It aim is to develop a favourable business community and enhance corporate reputation management. P&G also uses advertisement campaign to raise awareness of national or issues, gain public support and sustain favourable political-legal environments.

Economical Segment

P&Gs market environment is highly competitive globally and locally especially in Asia and Europe. It competes with other brands, and Unilever is one of the main competitors in the Europe. The European free trade policy has major effect on P&G market share as cheaper brands are emerging in European countries. Consumers have wide varieties of products to choose from and will choose based on product quality, brand strength, price and eco-friendly product. This is a moderate treat to P&G because of its brand equity in its products

The recent economic recession has changed the spending pattern of consumers, making consumers reluctant in purchase expensive products. This is putting a lot of pressure for on Fast Moving Consumer Goods (FMCG) produces to cut the prices of products.

Market competition in Europe has continued to grow stronger and P&G is struggling in places like Netherlands, Germany, and France. For political unstable countries with developing economies like Africa, P&G implemented marketing strategy to its market share is maintained. Smaller packages is been used for some products for affordably for low and regular income earners. More than 30% of Africa population lives on less than £1 per day.

Social Culture Segment.

The main target group of most personal, household product and consumer goods manufacturing companies are women. A lot of P&G’s hygiene, beauty, skin, and hair care products are focused mainly on women. Products like beverages, pets and human food, detergent and home cleaning products are addressed to women as the decision influencers. P&G has been using sponsored programs attract the attention of its target audience. It is also using marketing and advertisement to establish brand loyalty and persuading customers to purchase their products over other brands. In 2010, P&G spent $9.3 billion on marketing $1 billion more than Unilever its closest competitor (Wikiinvest, 2011).

To reinforce it goodwill, P&G is also trying hard to improve hygiene in developing countries like Asia, Africa

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