Procter and Gamble (P&G) Advertising Strategy
Brand equity refers to customers’ desire to reimburse more for a particular brand rather than its standard equivalent. To generate brand equity, it is vital to advance optimistic brand significance and specific insights about a product. In this respect, the product offered by a certain corporation, external product communication, the customer’s familiarity with the product and the business come together to form total product equity. Companies advance different operational means of ancillary brand relationship to shape brand equity.
The following paper seeks to analyze the brand’s elements and their impact on its meaning focusing on the product line of Procter and Gamble (P&G).
The essay also covers the unique features of the brand that make it favorable in the competition arena. The brand’s distribution strategy as well as its promotion and pricing strategies are further discussed in relation to their possible role in creating, developing, and sustaining the brand equity. Finally, the essay analyzes the market development of the new brand and the marketing program changes to be instituted for the new target segment.
Brand Elements and Their Significance
Companies eager to penetrate into global markets must firstly deliberate on the essentials of the brand that form the product policy since a brand with weak foundation might force the business into adverse circumstances. The achievement of a certain business in the global arena is based on the selected product policy and the factors that create this plan. The rise in the brand worth of the company globally will no doubt impact the profit positively. Thus, the primary objective of global brand strategies is to augment the brand value. The brand elements fall into brand names, URLs, logos and symbols, characters, mottos, jingles, and packing.
Selecting a brand name is challenging and may be viewed as an art or science. The product name is essential since it continually captures the key point or the leading associations of a product in a compact and economic trend. Brand names can be termed as an industrious stenography means of communication as the time consumers take to understand marketing communication can vary from half a minute. They are also the most challenging brand component for marketers to change consequently. Therefore, brand names are regularly and systematically examined before being selected.
Brand awareness involves developing brand titles with a particular focus on their straightforward spelling and meaningfulness as well as unique and uncommon character so that it is easy to pronounce and get accustomed to them. The desirable criteria for the brand name include brand recall, its being understandable and easy to pronounce or spell. Simplicity sufficiently reduces consumers’ cognitive efforts in understanding and processing the brand name.
Short names regularly ease memory as they are simple to encrypt and store in memory. When grammatical rules are ignored, pronunciation problems can occur. Thus, it is imperative for brand names to be known and meaningful so as to facilitate access to the existing knowledge structures. Brand names can be abstract or concrete in their significance. Numerous categories can be employed to create a name. Such groups comprise individuals, places, creatures, birds, or diverse types of non-living objects. Ideally, they should incorporate less learning since these objects already occur in memory in oral and pictorial form.
The study of theoretical brand names indicated that “high-imagery” brand names like P&G were considerably more striking across a range of memory and recognition measures than “low-imagery” terms (P&G, 2016). Though selecting a simple, easy to say, celebrated, and significant brand name may enhance recall capability, to increase product awareness, on the other hand, it is imperative that brand names be dissimilar, distinct, and uncommon. As with all brand selection paradigms, interchanges must be acknowledged. Even if a unique brand name is beneficial for brand recognition, likewise it has to be perceived as reliable and necessary in the product group.
While picking an unusual name is worthy, it is usually essential for the product to have a broader meaning to consumers apart from the product category it represents. Since the product name is a bundle mode of communication, the particular and tacit implication that customers derive from the name may be crucial. In essence, the product name may be selected to strengthen essential attributes and benefits associations that make up the product positioning. An expressive product term ought to make it easier to relate the strengthened value or importance.
It is individually essential to establish an ideal meaning of the product. Likewise, it is crucial to acknowledge the part of the brand within the corporate branding hierarchy and how the product should relate to other brands and products. With the tactical labeling direction instituted, the ensuing phase includes producing several conceivable labels and models. Then, to yield a more convenient list, the titles are to be available in terms of the labeling goals and promotion views as well as mere common sense. The fourth step involves conveying more extensive information on each of the names. Before spending large amounts of money on consumer research, it is customarily wise to ensure a broad universal lawful search. Next, consumer research is often conducted to authorize supervision watchfulness as to the memorability and meaningfulness of the names. Finally, based on the information provided in the previous step, monitoring can select the name that maximizes the firm’s branding and marketing goals and then legally register the name.
URLs are used to particularize spots of pages on the Web and likewise regularly translate to area names. URLs ought to place down or compensate for the call by a service. In recent years, as the number of companies invading the web has grown, the value of URLs has increased dramatically. The exact name used in URLs is much more understandable than any other applications, which means that the name of the brand ought to create the name of URLs. Extra costs may be involved as the firms are compelled to buy new domains. Nevertheless, businesses have to accomplish all in order to preserve the brand image.
Logos and Symbols
Optical brand dimensions usually take a crucial part in creating brand equity, though the product name is the primary element of the product. Logos possess a rich past and are used to designate center, possession, or relationship. For example, logos have long been employed to denote the names of families and nations visually. Various brands of emblems, stretching from symbols to business terms, are engraved in a unique form. While totally abstract logos might be entirely unconcerned with the word mark, corporate activities, or corporate names, some of the brands such as P&G have strong word marks (P&G, 2016).
There are two extremes that many logos fall between. Logos are always disguised as symbols to reinforce the meaning of the product in any possible way. Many logos are the exact form of the brand name’s representation what makes the brand easy to recognize and keep in my mind for a long time. Logos are often useful as the use of the full brand name may be restricted in some way. Identifying the logo’s possible contribution to product equity, several businesses in the 1990s relapsed to a more conventional look for their numbers. Slogans represent small expressions which convey expressive or resounding facts related to the product. Mottos often come forth in promotion but can play a significant role in packaging and other components of the marketing campaign. The slogan may pass as valuable “pegs or grips” to aid customers in comprehending the significance of the product in terms of the brand and its uniqueness.
Characters identify a particular kind of brand symbol that takes on people’s or real life characteristics. Brand characters are announced using advertising and can play a significant role in the current and subsequent ad campaigns and package designs. Similar to other brand elements, product characters come in many forms. Some brand characters are enlivened. Product characters can provide product equity progress. Being often intriguing and pictorial, they are usually attention-grabbing. In effect, product characters may be fairly valuable for building product consciousness. They can help products overcome the selling misunderstanding and also supplement the delivery of a key product advantage.
Jingles are written musical messages. Mainly, conveyed by professional songwriters, they often have adequate catchy hooks and choruses so they become almost permanently registered. Jingles can be considered as stretched musical slogans and in that respect they might be classified as a product component. As the value of jingles in brands’ reality is significantly high, the songs must be clear. A popular song can, in fact, serve as a basis of selling for years.
Packing comprises the ventures of creating and producing fabric for a commodity that shields the product from being ruined. As separate brand components, packages also possess a great past. From the perspective of both the user and business, packaging assists in the product classification. Conveying detailed and profound knowledge, it simplifies commodity transfer and support of product consumption. To attain the marketing objectives of the brand and satisfy the desires of the consumers, the aesthetic and functional components of packaging must be chosen accurately. Thus, packaging may contribute to the brand equity promotion of the firm.
P&G Product Line
P&G employs family branding which comprises a marketing approach entailing the use of a separate brand name for the sale of two or various associated products. The reason for P&G’s using family branding is its positive brand equity. P&G brands employ identical identification means. The practice further applies to brand extension entailing the selling of similar products rather than differentiated products under a separate brand name (Jean-Noel, 2008).
Favorable Market Conditions
There exist many factors that make P&G’s pamper brand convenient and unique despite the competition. The brand’s ultimate power is in its brand name status and the loyalty incorporated to it within the client market. Though P&G pampers have now become a component of American culture, the product and the brand have been incorporated into other international local values (P&G, 2016). Therefore, it is evident that the market acknowledges the trademark, the symbol, and values the product. P&G’s pamper brand is further laden with sentimentality for more mature customers and brings the image of excitement and enjoyment to the younger market.
The brand’s logo is consistent and cherished globally and is shown on t-shirts, caps, and collectible souvenirs (O’Guinn, Allen, & Semenik, 2008). The brand is guileless, yet dominant and extremely noticeable internationally as a sign of quality and satisfaction, assisting to infuse self-assurance and advance allegiance in the customer. P&G can buy out its competition. This opportunity rarely presents itself in the world of business (P&G, 2016). However, with P&G’s power and success, such a task is not impossible. A simplistic way to turn “their profit” into “your profit’ is to buy out the company. Even though this may cost a vast amount of money initially, in the long run, if all goes according to the plan, it will result in a significant profit. Additionally, the corporation will cease bothering with their products as part of the competition.
P&G pampers packaging allows the company to take advantage of the infinite growth and opportunities around the world (P&G, 2016). This strategy gives P&G a chance to provide service to a large, diverse, geographical area according to the organization’s segmentation strategy. Through innovation, P&G has a competitive advantage because it introduces a new product, which many people will want to try (P&G, 2016). People would like to purchase the commodity even though the price is high because no substitutes are available. It may also give P&G pampers brand loyalty which means that the customers will stay loyal to them no matter what happens.
P&G Distribution Strategy
The availability of P&G pampers is next to none. They may be obtained nearly wherever their users may require the product as it happens in all businesses located globally. Innovation has enabled P&G to offer its commodities anywhere the customers may be located. This factor once again facilitates the company’s giving different makes with similar proportions according to their users’ requests in various regions. For example, customers can purchase pampers anytime in businesses which are set up in institutions or free area. It is accessible for people who prefer P&G pampers.
Also, the variable place is imperative in P&G marketing mix. Owing to the consumers’ cravings and demands, pampers are available within a hand’s reach upon request. P&G uses different channels of circulation to deliver their products to the user. The primary channels include the manufacturer, the wholesaler, the retailer, and the user (P&G, 2016). The manufacturer; retailer; consumer model is particularly used by the supermarket. An order is placed with a manufacturer to supply all of the outlets, thus bypassing the wholesalers allowing them to cut prices which benefit the consumer.
P&G Promotional Strategy
P&G Company concentrates on advertising to make customers aware of the products. Extensive advertising is done through radio, television, and billboards, as well as sponsorships (P&G, 2016). P&G sponsors many sports activities, which gives them more awareness and popularity. They also sponsor youth activities and schools. Furthermore, different promotions are offered by P&G in universities where it concentrates its market forces on the young generation. Also, P&G is increasing promotions within big organizations. Thus, P&G’s image is displayed on t-shirts, caps, and collectible memorabilia.
Advertising is centered on the moments of the year such as the unique Ramadan promotion (O’Guinn, Allen, & Semenik, 2008). The dissemination of knowledge about the commodities is realized through numerous mechanisms to build, sustain, or boost sales in the target exchange. Consumers perpetually learn about the newest offers in the P&G pamper exchange. Moreover, the buying promotion gets to buyers through samples, contests, gift tokens, trade advertisings, and other tools. Petrol stations, supermarkets, beverages suppliers also adopt them widely. Now, the company is advancing its sales advertisement providing prepaid times by using stardoms (P&G, 2016).
P&G Pricing Strategy
The pricing approach of P&G is based on the cost dynamics of its adversaries as well as the worth of its goods. Therefore, pricing is in a trend determined by the interaction of the rivals in a particular exchange. Various related goods get the same price, which forces consumers to buy a new product without thinking much. Nevertheless, to meet the desire for excellent quality and dependability of the product, affordable pricing is provided to clients who may enjoy spending additional costs against cheap replacements. Therefore, P&G pampers are diverse, have high quality and are sold at competitive prices. Also, potential market segments involve their considering younger children with pocket money as well as household mothers who do the family shopping. Thus, the company’s activity is aimed at families with reasonable disposable income comfortably affording quality at a competitive price.
The higher price given by P&G pampers is supported by the value of the brand equity of its different products. P&G was capable of selling at a greater rate than its rivals owing to its steady exchange share due to its promotion infrastructures message connected to the product equity of product steadiness (P&G, 2016). The move makes P&G a real leader in the industry due to its ability to determine the industry pricing benchmark. Notwithstanding its somewhat greater rating, it is still capable of maintaining an exchange share by creating exceptional value for its brands through uniformity and reliability.
Furthermore, the consumers do not spend much time in the pamper section; they only go and purchase what they are searching. This factor means they are not price-sensitive at all. Also, many consumers are very brand loyal to P&G pampers. They like the quality and buy only this product although the prices of other competitors are lower than those of P&G’s products. On the other hand, the P&G production prices seem to be higher than the prices of other pampers in the market, so the consumers can buy favorite pampers at a lower price (P&G, 2016). To achieve product variation in the market where consumers are increasingly more health-conscious, P&G should reduce the price of its pamper products, therefore, undercutting cheap full fabric substitutes and gaining a considerable advantage against its main competitors.
An effective positioning strategy by P&G will allow them to create a suitable image of the company in the mind of their customers as the only “Real One.” It is, therefore, necessary to design the positioning strategy so as to draw an adequate picture of the product offered for the consumer. Once the company decides on the market segment required to target and compete in, the corporation will supposedly develop a picture of the targeted market segment and appropriately define their products as part of their positioning approach. Through the new positioning strategy, P&G will emphasize its distinct and unique characteristics with relation to its competitive brands, thus, stressing their individuality. In the new approach, P&G will associate their products with the customers’ values and knowledge highlighting their benefits. The positioning strategy will also include a comparison of P&G’s products with those of its rivals, which will drive its customers to believe that P&G pamper products have improved nature and standards.
The P&G trademark has evolved to be one of the significantly recognizable and celebrated makes of all times, with their fabric company being among the world’s largest fabric companies (P&G, 2016). Using the positioning strategy for the new segment, the brand will be a success since it will employ different brand management strategies depending on the market situation and the target market. The strategies to be employed include hybrid, manufacturer as well as individual, private, family, and generic brand management strategies. However, the most utilized brand management strategy that can still be used for the new target market is the individual brand management strategy since all of its principal products have unique brand names. Nonetheless, target marketing will allow P&G to launch pampers for a specific segment of the society.
The product may involve modern marketing techniques which will immensely benefit the business. The methods include aiming the marketing concept totally towards its customers and allowing the clients to percolate through almost every department be it human resources, production, or finance. Another useful modern marketing technique includes undertaking all of its important decisions with relevance to the present market concerns, situation, and segmentation. Apart from putting emphasis on market associations, there exist some methods of new marketing which the business can profoundly benefit from in the brand-new product market such as concentrating on consumers, coordination, and value familiarization. The firm’s focus should perpetually be on the customers’ perspective so that they may entirely understand what goods or services consumers want. As the marketing mix is an interconnected arrangement, the whole marketing plan needs to be examined and designed as a whole.
Also, the marketing techniques used by P&G allow them to listen to the needs and demands of the people all over the world who want pampers that extend over a wide variety of fabric and quality (P&G, 2016). Their marketing strategy will, therefore, let them produce great pampers which contribute to each and every community of the world. Their innovative marketing techniques for the new market segment will display their commitment towards diversity, health, education, and wellness, thus establishing them as one of the most fruitful and influential brands of all times. In an extremely competitive domain, efficient labeling and positioning approaches become a key strength in the business that allows it to retain its stronghold all over the world. The branding strategies of a company accurately define the individuality of the business, its goods, and services. Each business, whether tiny or large, views its branding policies as an essential part of the whole marketing. Through the branding approach, they organize themselves as a brand name which denotes excellence and standard to their consumers. A brand name supports differentiation amongst consumers based on their individual characteristics with regard to other related commodities.
Additionally, the positioning approach of a business encourages it to establish the viability of its numerous products and services. For the corporation to be developed, merely having a quality product is not enough in the present capitalistic world economy. The goods and services must have a distinct and clear image and should be offered to the target customers at competitive prices. Therefore, positioning strategies assist the corporation in creating a useful and desired image of the product for the customers, establishing a direct contact between them and the company.
The Positioning Strategy
It is crucial for a firm to know what marketing or managerial actions will possibly revitalize the brand in the minds of the consumers. P&G’s marketing techniques will necessitate an extremely efficient marketing mix strategy combining product, price, promotion, and place. Such marketing program will not only provide the customers with their products, quality pampers, but will also deliver several services such as movies and holidays, allowing the consumers to be completely satisfied. Their primary pricing strategy for the new marketing program will include penetration pricing which will enable them to grab a footing in their target market by winning a significant part of the market share. After establishing customer loyalty, P&G will slowly raise their pamper prices. P&G has always been among the fore-runners in gimmicks and advertising styles and techniques which fall under the promotion of marketing techniques (O’Guinn, Allen, & Semenik, 2008). As such, the marketing program will implement their promotional strategies so as to persuade their customers to buy their original products and try the new ones.
For the new target segment, it will be essential to use a combination of public relations, advertising, personal selling, and sales promotion as part of their marketing techniques. P&G will also have to carefully chose the place or distribution methods for its campaign. Their plans will include direct, selective, intensive, and exclusive distribution. It is apparent from their widespread popularity and reputation that these earlier marketing strategies have helped P&G establish themselves as one of the most powerful and successful brands of modern times. This fact will, fortunately, be a complex, yet vital part of the new target segment.
In conclusion, brand equity manifests itself when users are more eager to buy a distinct product rather than its alternative. Corporations undertake several operational aspects to create product equity. There exist various brand elements that have a significant impact on the product’s meaning. Such components include URLs, logos, symbols, mottos, characters, jingles, brand names, brand awareness, and packaging. P&G Corporation employs the family branding product line which involves a promotion plan using a separate brand name for the sale of various related products. At P&G Company, there are favorable market conditions that enable the corporation to compete against its many competitors. Such factors include loyalty, brand name and status, logo, and quality fabric among others. P&G’s distribution strategy is enhanced by the availability of the products in many outlets globally and from vending machines. Also, the company’s the distribution process improves due to its marketing mix. The promotional strategy of P&G employs such media as radio, television, billboards, and sponsorships. Furthermore, P&G uses print media, in particular magazines, to market its pamper brand. Additionally, the company also sells via mobile texts. The company has a pricing strategy based on the dynamics of its competitors’ costs. In market development, P&G should apply an effective positioning strategy to create an appropriate image of itself in the minds of its clients.