Procter & Gamble’s Company did the segmentation in their powder laundry detergent field

The P&G company is one of the largest household and personal product company in the world. It was founded by William Procter and James Gamble in American in 1837. Its main product is including the diversiform detergents and personal care products, such as the Ariel, Tide, Downy, Olay, and Head & Shoulders. Now, the P&G company’s products has covered more than 180 countries and regions. Moreover, the company recorded $83.1 billion sales in 2014.

How the company get the great success? Which marketing strategy is adopted in this company. These are interesting questions for marketers or their competitors.

The critical successful factor for this company is that it did the outstanding market segmentation. The market segmentation is one of marketing strategy that includes dividing the customers who have the similar needs and wants for the productions. Then, the company will accord these similar needs and wants to design the suitable productions for them.

In the P&G company, it not only provides the different products category, but also it introduces different brands in the same product category. For example, the company has the beauty, grooming, health care, fabric care, baby care & family home care segment. These segments provide the different function for their consumers to satisfy their desire. Furthermore, the P&G company did the differentiated marketing in some specific fields. For example, the P&G company not only sales several brands in the powder field (Bold, Cheer, Dash, Dreft, Gain and Tide), but also give these powders difference functions.

The majority customers buy the washing powder for clean the clothes. However, the customers also hope the powders have some specific functions. For instance, some customers may purchase the powders depend on their inexpensive price, another customers may focus on the bleach, fabric softener or freshness on clothes. Thus, the P&G company product several powders as follows.

Tide: It is one of universal washing powder. It is suitable to use in the washing machine for the housekeepers. This powder laundry detergent has more efficiency than before, so the user can use 1/3 less.

Gain: It was said that washing powders containing enzymes remove stains more efficiently.

Cheer: This washing powder has function about stay the clothes’ color. Thus, this powder is made for the colorful clothes.

Draft: This washing powder laundry detergent is use to clean the baby clothes. This is because this washing powder has the fabric softener function.

The P&G company utilizes the market segmentation and diversified powder brand to get the reputation in the globe market. The segment revenue was reported to be 26.1 billion in 2014. The P&G company depend on their excellent market segmentation to defeat their major competitor, such as the Unilever. According to the figure that the P&G company’s marketing share in Fabric Care is over 25%.

However, not all companies can imitate P&G company’s market strategy. This is because that the company doing the market segmentation has to spend plenty of money. Not all small scale companies can afford the huge capital for the doing the differentiated marketing. This is because the market segmentation requires the company doing the extra marketing research, prediction and sales analysis. If the company intends to use the one to one market segmentation to delight their customers, then it will dramatically increase their cost and financial burden. Thus, the company should select a suitable segmentation strategy to optimize their performance.

In conclusion, the P&G company not only applies the market segmentation in the production’s category, but also doing the differentiated marketing in the washing powder field. The method may help the P&G company to get the success in the market. Moreover, the company should base on the self-condition to select a suitable market segmentation strategy.

 

Reference

Iacobucci, D 2013, MM4, Mason, Ohio : South-Western.

P&G professional 2016, Laundry Detergents, P&G professional, retrieved 5 April 2016

< http://pgpro.com/product-categories/laundry-detergents/ >.

Morgan P 2015, Procter & Gamble: Global Leader in Fabric Care and Home Care, Marketrealist, retrieved 1 April 2016,

<http://marketrealist.com/2015/07/procter-gamble-global-giant-household-personal-products >.

Student ID:212059758

WordPress username: albert0506