Procter and Gamble: PEST SWOT Analysis

Procter and Gamble curse SWOT AnalysisProcter and Gamble Market EnvironmentCentral problemProcter and Gamble (PG) started its PuR escort as part of selling water supply purification engineering named the PuR sachets. However, entering the merchandise with water purification technology had cardinal major issues all related to denounce and produce recognition. Thus, with PG facing brand and product difficulties, three major problems were threatening to decapitate the investments that were poured into the PuR project. The very first problem that PuR project as creating awareness for the brand and product that had non been changed before in the securities industry. Thus, in promoting the product, the friendship faced two secondary problems which include difficulties in establishing ready market for the product and convincing customers that the PuR sachets were relevant in their lives. Secondly, the order developed the project through heavy spending. The problem associated w ith the investment into the PuR project is that the high societys under per sales did not seem to be sufficient enough to cover the costs, hence the management was contemplating on dropping the project. Thirdly, piece PuR was a reality and that the caller-up was seeking approval from CDC, a major problem involved the neglect of public or customer demand for the product regardless of the fact that PG tried to convince customers that modify water was the cause of diarrhea (Hanson and Karen, 11).Secondary problems that faced PG included the fact that the PuR used preparation system that was very difficult to copy tho very expensive as well. Thus, the company could not trade its water purification solution at a price that customers were able to afford. Additionally, the target market believably at a higher risk of contracting diarrhea due to consumption of sorry water was the very one that could not afford to buy the PuR sachets at the high prices. Collectively, finding market was a base and persisting problem that did not favor the PuR project and also did not have the likely to sustain the business projection of the company.Environmental S dealningPolitical FactorsPG targeted miscellaneous markets with the PuR sachets. Among these were the pioneer market in Pakistan, Guatemala, and Morocco. The political environment in most of these markets favored the marketing of PuR sachets but Morocco was quite problematic as testing at school level was denied. All of the identified markets allowed for village testing of the PuR sachets which meant that the only major problem the company was facing was associated with its approach in working with various major governmental departments and ministries. bid in Morocco, the company could not get approval for testing at the school level but it was able to get approval of the CDC in the US.Economic FactorsAmong the economic factor that were facing PG included the character of the market as well as the social class of the effectiveness buyers of the product. Initially, the CDC saw potential in the PuR sachets and encouraged the company to continue with the project. However, the company management had had enough of the under per sales due to escape of sustaining customer base. Additionally, with reference to the existence of other brands and availability of bottled water, PG was not getting as much chip in on investment as it had hoped for. Finally, multiple tests and commissioning of seek and development continued to pull back much of the companys monetary power thus weakening its promotional power. The company once had to take a desperate stance of signing a contract with nonprofit organization so that it can promote the PuR sachets in developing nations. This approach shows how economically desperate the market was making the company at hand.Social FactorsSocial factors that most companies are worried about today include the income of their target market and the underlying issues that pu sh the demand for products and services. Among these issues, the target market for PuR sachets were the kins that had bottom-of-the-pyramid entities, children. However, the social class of which illness related to distasteful water could affect were the low-income families. The problem with the PuR sachet target market is that it had very little experience in utilize water purification methods and also did not have the financial potential to buy the products that the prices they were traded at. While dirty water was associated with diseases such as diarrhea, the target market had other issues affecting them besides the diseases the included household income and consideration of other factors besides water treatment.Technological FactorsWhile most of the factors considered under this title contend a negative role towards the development and trading of PuR sachets, technology was the only one that had an all-round substantiating effect to the desperate situation. PG had the requ ired strength to develop research and development approaches aimed at managing most of its projects. However, considering research and development, PG had to invest in technology that both identified the need for water purification. Additionally, the packaging of the PuR was light and could pedigree the contents for over three years. This approach in technology enabled the company- despite the low demand- the products did not go to waste due to their extended life span.SWOT AnalysisStrengthsAmong the strengths of PG includeFinancial strength of the companyThe company is well established worldwideThe company is diversified and has numerous other products it trades which contribute to its financial strengthThe companys philanthropic tradition connects it with customers as it contributes to various charity eventsWeaknessesAmong the weaknesses of PG includeThe company is diversified and offers a continuum of products to the market from health products to domestic animal products. This approach makes the companys strategical approach unfocussed.The company is involved in non-effective marketing campaigns that drain the companys financial stability. due to poor market feasibility studies, the companys think in Morocco, Pakistan, and Guatemala all failed to meet expectationsWith unfocused research and development, the company had to call back its products for redevelopment wasting more money.OpportunitiesThe company pioneered a product that continued to attract more customers due to health education programsThe companys joint venture with local companies increase its market penetration and spreads risks to create financial security.With reference to Morocco, the company is able to seduce out for more customers in need of clean water while in Pakistan developing f number class population providing ready market for the PuR sachets.Increasing cases of waterborne diseases create a larger market for water purification solutions.ThreatsMore companies and brands have v entured into the market and offer far more affordable products as compared to the PuR sachetsNew entry products have the potential to weaken the watercourse market share.Regulatory agencies in the current target markets prevent the company from saturating the available markets with the PuR sachets.Strategic AlternativesThe strategic alternatives that can be used to reckon that the company is able to trade more profitably would be toHire marketing agency to mightily promote the products and manage financesReduce the product portfolio so that the company focuses better on the most important lines of productsPromote products in more dynamic markets rather than slowly developing marketsCourse of serveThe course of action for each of the alternative is as followsAlternative 1 In hiring suitable marketing agency, the company would invite marketing companies to bid for a one year contract to assess potential markets and to incorporate market segmentation relating to social factors affe cting each type of market (Kahn, 76).Alternative 2 Since PG trades numerous products, the company is to select the products that are least profitable to the company and discontinue their production. This would enable the company to invest more funds to meaningful projects while cutting cost in the production of non-value intense products (Kahn, 78).Alternative 3 The Company is to hire a marketing agency in this case or to conduct research regarding the most favorable markets worth investing in. Additionally, the current markets or nations that the company invests in could be measured in terms of economic stability and the per capita for perceived potential customers. In consideration, the company or the hired marketing agency can investigate the Gini Index of the target population of various potential markets to identify how sustainable the company operations can be in a sensitive environment (Masur, 666).Work CitedHanson, Margaret and Karen Powell. Procter Gamble PuR Purifier of Water Developing the Product and Taking it to Market. INSEAD. 2009. Print. Retrieved from http//www.gwu.edu/clai/training_programs/UChile_MBA_Programs/uchilemba2010/Griffin_Readings/CSR_PuR_A_case.pdfKahn, Kenneth. Functional, Multifunctional, and Cross-Functional Considerations for merchandising Management. Journal of Marketing Theory and Practice, Vol. 17, No. 1 2009 pp. 75-84. Print.Masur, Jonathan and Posner, Eric. Against Feasibility Analysis. The University of Chicago Law Review, Vol. 77, No. 2 2010 pp. 657-716. Print.