Procter & Gambler is a multinational company operating in all over the world with a very wide variety of mainly household products as well as its personal care products. The question at stakes lies on the multinational's quest to go international, or “global” in its cosmetics business where the company is somewhat new as fas as experience concerned.
Distributors & Networks
Department Stores
Mass - Market Sales (Outlets)
Specialty Stores
Boutiques
Direct Marketing (Avon)
Home Shopping
In Europe (Chain Stores & Pharmacies)
Duty Free Shops
Distribution Channels
Where do the buyers purchase the products in general?
Dpt Store
Mass-Market sales (outlets)
Boutiques
Direct Marketing
Home Shopping
Chain stores & Pharmacies Emphasis in Europe
Duty Free Shops.
Key Buying Influences
The changing habits in packaging, styles, colours and images.
We cannot generalize, however it seems that consumers were deserting DPT stores looking for distinctive brands offered by specialty clothing chains & cosmetics boutiques as a result DPT stores sales were declining & mass Merchandising share were increasing.
The build up maturity of some cosmetics for the Young Women market between 18 to 25 years of age.
The Build up of youthness of some cosmetics for the older target market of 35 and above.
Competition
The competition is very Strong in Europe and Japan, the main companies competing in the international arena are:
Maybelline Brand Lines
Uniliver the Anglo-Dutch diversified in USA and bought Faberge and Elizabeth Arden
ESTEE LAUDER
L' OREAL
REVLON
JAPANESE FIRMS
CRISTIAN DIOR
CLINIQUE
BODY SHOP PRODUCT LINE
Additional competition is coming from Dpt store product lines specialty shops, direct marketing and home shopping networks.
No prices or pricing polished appear from the case study.
(See Question 2)
Communication
Advertising and promotion is following the competitive trends without any innovative initiation by P & G. There is not any information whether the company is promoting awareness, product trialibility or push for repeat purchase.
Objectives over the next 5 years
To increase sales with existed products in existed markets by 10 %