Sample Business Studies Paper on Strategies Procter & Gamble

Strategies Procter & Gamble can use to GROW from a Billion Dollar Company to a Trillion Dollar Company like Alphabet Inc.

 

Procter & Gamble and Alphabet Inc. are indeed international corporations, with the first dealing with personal care and hygiene products and the latter a conglomerate holding company and Google’s parent firm. Procter & Gamble is known for brands such as Gillette, Always, Crest, Oral-B, Venus, and Pampers, among others. Google, Verily Life Sciences, Calico, GV, and X are all part of Alphabet Inc., a tech giant with a market cap of $1.7 trillion.

Do Alphabet Inc. and P&G use marketing strategies?

 

Yes. It is essential for companies to have marketing strategies. P& G’s competitive advantage strategy is differentiation. To attract target customers, differentiation entails enhancing the distinctiveness of the company and its products. Procter & Gamble emphasizes quality and value in their consumer goods in this scenario.

Alphabet’s acquisitions are a major tactic for establishing a competitive advantage. Alphabet gains new skills, technology, patents, and improves its own goods and services by purchasing other companies, helping the company to grow quicker and with less effort.

DO P&G and Alphabet Inc. struggle with new customers and new markets?

 

You are probably thinking, with all that popularity, who wouldn’t want to use products and services from these giant companies, right? The question is not popularity or customer wants, BUT customization to meet customer requirements.

For instance, what happens when these two American giants enter into countries like Europe, or other continents, full of ambition, without forging partnerships with each country? There are cultural traps all over the world and a lot to learn about building a brand in each country and what it takes to actually sell a product.

The better you understand your client or partner and their context(s), the more likely you are to provide the correct solutions, establish the proper business models, and win through global expansion – whether in India, Mexico, China, Russia, or elsewhere.

Three approaches – combining strategy concepts with the developing field of design thinking – can assist all businesses dealing with these difficulties.

The three approaches include:

  1. Anticipate client demands and cultural customs specific to each country.
  2. Run low-fidelity, strategic experiments based on those insights.
  3. Use the assumptions that emerge to guide the development of local business models, such as product development, marketing and branding, sales and distribution, and manufacturing.

 

How does Alphabet Inc. make money?

 

Millions of organizations benefit from their advertising solutions, and Alphabet Inc. offers a diverse selection of products across devices and formats. Google Services makes money by selling both performance and brand advertising.

  • Users will click on appropriate adverts created through performance advertising, leading to direct engagement with advertisers. The majority of performance advertisers get compensated when a user interacts with their adverts. Advertisers can interact with users while getting measurable results by using performance advertising. Performance advertisers can use ad tools to develop simple text-based ads that appear on Google Search and other sites properties, YouTube, and Google Network Members’ properties Google Network Members also use Alphabet’s platforms to display relevant content advertisements on their websites, making cash when users view or click on the advertisements.
  • Through videos, text, photos, and other interactive adverts that run across numerous platforms, brand advertising helps people become more aware of and interested in marketers’ products and services. Alphabet lets brand marketers target targeted audiences with digital videos and other sorts of adverts for their brand-building marketing efforts.
  • Alphabet is also utilizing technology to address major issues in a variety of industries. Alphabet’s Other Bets portfolio includes developing businesses at various phases of development, ranging from research and development to early commercialization, with the objective of becoming thriving, successful enterprises in the medium to long term. While these early-stage enterprises are inherently risky, several of them are already generating income and making significant progress in their fields. Internet and television services, as well as licensing and R&D services, are the main sources of revenue.

Who are Alphabet Inc.’s competitors?

 

Alphabet Inc. is up against competition from companies that connect consumers to online content and serve them with relevant advertising. Such competitors include:

  • Amazon and eBay (e-commerce), Booking’s Kayak (travel searches), Microsoft’s LinkedIn (career queries), and WebMD (health information) are examples of vertical search engines and e-commerce websites (health queries). Rather than using Google, some people will go straight to such material, websites, and apps.
  • Facebook, Snap chat, and Twitter are examples of social media platforms. Some people are increasingly turning to social media for product or service recommendations rather than traditional search engines.
  • Billboards, magazines, newspapers, radio, and television are examples of other mediums of advertising. Alphabet’s advertisers often use a combination of online and offline media to promote their products.
  • Amazon, AppNexus, Criteo, and Facebook are among the online advertising platforms and networks that compete for advertisers who utilize Google Ads, Alphabet’s major auction-based advertising platform.
  • Companies that create, produce, and market consumer hardware, including those that have created proprietary platforms.

 

Procter & Gamble’s competitors

 

Colgate-Palmolive, Church & Dwight, and Unilever are also major competitors for P&G. The company generates over two-thirds of its sales from developed markets, whereas Unilever’s revenue comes mostly from faster-growing emerging economies. One of P&G’s biggest issues is that it’s concentrated on slow-growing markets, whereas rivals like Unilever are focusing on growing and selling in new and developing markets.

  • Products such as Persil from Unilever are among Procter & Gamble’s top competitors in the Fabric & Home care segment.

The segment accounts for 33% of total net sales.

  • Colgate-Palmolive—with brands including Tender Care—Zwitsal, Unilever’s and Church and Dwight Co.’s Viviscal and Rephresh—are all prominent competitors in the baby, feminine, and family care category. With brands like Luvs, Bounty, and Charmin, this segment accounted for 27% of Procter & Gamble’s net sales.
  • P&G’s beauty division accounted for 19% of the company’s net sales. Avon is a direct-selling beauty, housekeeping, and personal care company that competes with Procter & Gamble. The corporation advertises and sells its products through salespeople, also known as Avon Ladies, brochures, and mail outs. Colgate-Palmolive, Estee Lauder, Revlon, and Unilever are all competitors in the beauty sector.
  • In the grooming industry, Gillette is the market leader. Procter & Gamble’s net sales from this sector were 9%. However, Bic is a key competitor with a significant international reach.

What makes P&G great

Integrity is prioritized in every aspect of the company. People at P&G have a lot of faith in one another, but metrics like market share and productivity are the final judges. Yes, they are fiercely competitive, and they compete with one another, but they do so fairly, which benefits everyone.

 Portfolio differences between P& G and Alphabet Inc.

 

  P&G Alphabet Inc.
1. Current revenue is $ 79.61 B Current revenue is $ 270.33B
2. Profit margin as of March, 2022 is 17.31% Profit margin as of March,2022 is 27.57%
3. Operating margin is 23.45% Operating margin is at 30.47%
4. Market share first quarter in 2022 is 9.69% Market share for first quarter in 2022 is 16.55%
5. Market cap as of 13th May, 2022 is $364.66 Billion Market cap as of 13th May, 2022 is $1,784 Billion

 

 

 

Strategies adopted from Alphabet Inc.

 

a. Recognize that creativity can emerge from anyplace. A Google doctor once said that the business has a moral obligation to help customers searching for suicide and self-harm terms.

In response to requests like these, Google changed its search engine to include the number for the National Suicide Prevention Hotline. This resulted in a large increase in calls to the hotline, with millions of individuals receiving assistance.

Rather than depending on certain teams or individuals for innovation, Google encourages employees from all parts of the company to contribute their best ideas and thus present solutions based on a diverse set of abilities, talents, and experience

b. The user takes precedence. Employees at Google are encouraged to prioritize the user and worry about money later. While this may seem contradictory, it is precisely this mindset that has resulted in some of Google’s most useful products.

Google’s introduction of predictive analysis, which allows users to search for things faster and more accurately, is a wonderful example. While corporate sales employees were concerned about reducing the amount of time consumers spent viewing ads, Google backed the proposal because it was practical and would result in faster web browsing and a better overall user experience.

c. Market research loses out to technical insights. While asking users what they want is still useful, those with the most advanced understanding should be put in the driver’s seat. Google’s search engine is maybe the clearest illustration of this. Google has fine-tuned its engine over time by putting technically bright brains to work generating incremental changes, rather than by asking people what they wanted.

 

d. Iterate and ship Iterative progress is what Google is all about. It pushes early versions of services and products to customers, then uses feedback to iterate toward the best possible version. That’s why, when Chrome was first released in 2008, Google used a learn-as-you-go approach, updating the browser every six weeks to fix bugs.

 

This iterative process is a wonderful way to fine-tune new goods over time, and it helps Google’s products and services meet user demand. It’s also a terrific method to eliminate unnecessary hesitancy when launching new products.

e. Make failure a positive term. Google understands that not every idea will succeed. Instead, the organization fosters a desire for failure, viewing it as an essential component of successful innovation. This has resulted in a notably extensive series of unsuccessful Google ideas, ranging from the content sharing novelty Bump! To the widely criticized Google Glass device.

By highlighting these experiences, Google attempts to remove the stigma associated with failure, resulting in a more forgiving and supportive innovation culture.

 

CONCLUSION

 

Most established businesses must consistently generate organic growth of 4% to 6% year after year. How will they accomplish this? This is the equivalent of P&G launching a $4 billion business this year. Firms could rely on internal R&D to drive that kind of growth not long ago, when companies were smaller and the globe was less competitive. P&G has fueled its amazing development for generations by innovating from inside, developing worldwide research facilities and employing and retaining the best personnel on the planet.

The number one concern of CEOs and board chairmen, according to a recent Conference Board survey, is “continued and consistent top-line growth.”

Most organizations will struggle to achieve the top-line growth they require unless they recognize that the innovation landscape has shifted and that their present model is unsustainable.