Launch of P&G “InsecKill” Insecticide in the UK
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Table of Contents
Marketing Plan Objectives and Strategies
Table 1: Marketing budget of P&GConclusion
Executive Summary
This is a marketing plan for Proctor & Gamble (P&G) Company for the launch of its latest and new product the “InsecKill’ insecticide in the UK market. The company considers it important to first identify a cost-effective and functional planning process before launching the new product in the UK market. It considers important steps to ensure that “InsecKill” gains a successful entry in the UK market and beats competition. This marketing plan identifies important feasible ideas, which will guarantee the success of this new product in the UK market, and the target segment.
A marketing plan has high versatility. This requires a company to use its resources for the implementation of the marketing plan to be successful (Kotler & Keller 2012). Therefore, it is crucial that a company ensures that a new product launched after a marketing plan, is successful in the market, to avoid losses. Nonetheless, P&G intends to launch and market a new product in the United Kingdom, which it is manufacturing for the first time. P&G is a popular brand in the country for its high innovativeness, and a strategic position there, therefore, this is expected that “InsecKill” will receive a good reception.
A research has been conducted on the target segment. This has mainly based on the information on consumer demographic distribution and spending behavior in the UK from the company, with regard to its other products sale in the UK market. Different strategies have been identified about how information about “InsecKill” will be disseminated in the target market. Direct marketing, public relations, sales promotion, and advertising are combined in to a single marketing mix to achieve this.
Finally, reviews have been conducted on the customer, market, internal and external contexts. In addition, the objectives, strategies, and budget of this marketing plan have been outlined and are discussed. Furthermore, different tactics to ensure successful business experience in the UK have been identified, basing on the consumer research findings. Nonetheless, P&G will assess and review its marketing activities time to time, with regard to changing consumer behavior, for better results.
Introduction
Procter & Gamble (P&G) Company is a popular multinational company specializing in consumer goods. It produces a wide range of products, including household products, personal care products, cleaning agents, pet foods, among others. This company is highly innovative, thus the wide variety of products. In addition, P&G is known to develop new products in the market at a higher rate, compared to other companies. Overall, P&G is a high performer in the market, registering high profits each year (P&G 2012).
P&G values its customers, and develops products that suit their needs. This is the reason for the wide range of brands the company produces. Market research is a crucial aspect for this company, as it is through this that the company identifies the needs of its customers (Rehtmeyer 2010). P&G has been successful in the consumer goods market. In this essay, it is assumed that P&G has developed a new product, which it needs to introduce in the United Kingdom (UK). This is an insecticide named “InsecKill,” which is meant for household use to kill stubborn and harmful insects in homes. P&G hopes this product will gain market in the UK due to the features that make it more suitable for household use. In this case, the UK is among the first countries where this new product is introduced. Therefore, this detailed marketing plan aims at ensuring the successful adoption of “InsecKill” in the UK market.
Situation Analysis
In the UK and other parts of the world, there is demand for different household products, including insecticides. People need insecticides to get rid of the insects, which might cause different harm in their homes. These insects include flies, cockroaches, mosquitoes, and fruit flies, among others, which are stubborn, and might cause diseases in homes. “InsecKill” will be effective in killing various insects in homes, as this is manufactured with special ingredients, which are effective in eliminating insects. “InsecKill” is in spray form and packaged in cans of different sizes. This is specifically suitable for household use, but also for offices, and other places, where insects might occur.
Market research for this product is essential, as it will help in identifying the needs of customers, who are targeted for this product (Kotler & Keller 2012). The prospective customers for this insecticide are women, both married and single. This is because women are responsible for housekeeping. Both working women and homemakers are targeted, since both are believed to have the purchasing power for this new product, considering it is basic in homes, and its price, which is affordable. “InsecKill” will ensure homes are free of insects, which cause diseases and viruses that are harmful to humans.
Purchasing an insecticide is a quite involving process for consumers. A consumer will have to undergo a series of steps, before deciding on which insecticide to purchase. First, a consumer will identify their need for an insecticide. After establishing that there are insects in their houses, which need to be eliminated, a consumer will set out to search for information leading to a solution. Next, the consumer will compare the different solutions found through the information gathered. Finally, a consumer will arrive at a purchase decision. Here, the consumer decides whether to buy or not, where to buy, and when to buy the product. However, today, the market is filled with diverse information on different products; therefore, a consumer is more likely to make wrong purchase choices (Leon & Leslie 2007).
In United Kingdom, it is the women, who make most decisions regarding the purchase of products for household use. Therefore, P & G Company has put strategies in place to ensure that the new product, “InsecKill” captures the attention of more women than men in the UK. P&G will use this as a tactic to ensure the wide and outstanding marketing of “InsecKill,” so that the target consumers can make the right purchase decisions. It is expected that the target market will purchase ‘InsecKill” because of its quality and its characteristics that make it more suitable and safe to use in homes. First, this is biodegradable, thus environmentally friendly. Secondly, this insecticide is not harmful to humans, but kills stubborn insects instantly when sprayed. In addition, it is affordable and easy to use. Therefore, the characteristics of this insecticide are expected to give it an edge over the others in the market.
Customer context
Segmentation
The target segment is the working class females, as well as homemakers. However, the working class females are key consumers, who can purchase the product. This is because these are more economically empowered, therefore, their affordability is guaranteed. On the hand, homemakers might be obliged to purchase this product, since the household activities, they are involved in, call for the adoption of an insecticide. At home, these might experience houseflies and other insects. Therefore, the needs of these target consumers have to be contextualized (Kotler & Keller 2012) so that the strategies set will meet these needs.
Involvement
For this company, it is necessary that the specific and general needs of its customers be fulfilled. Consumers will utilize a variety of their resources, including time and financial resources, in buying the new product. Therefore, it is crucial P & G develops marketing strategies, which will positively influence consumers, and assure them that they are making the right purchase decision by choosing “InsecKill” (Kotler & Keller 2012). The information relayed to consumers about this new product must show the benefits of the new insecticides, which lack in other insecticides in the market, and which consumers will miss out on, if they fail to choose this new insecticide. According to Schwarz and Hunter (2008), a convincing, reassuring, and serious tone should be used in product marketing to attract the interest of consumers in the product.
Buyer Behavior
Prior to making a purchase decision, a buyer will have undergone various stages, as identified. These include need identification, searching for information, comparing alternative solutions, and finally making the purchase decision (Leon & Leslie 2007). Therefore, this marketing plan is developed to ensure that P&G has a positive influence on the behavior of its target consumers. This will be achieved by ensuring the presence of P&G in all the different mentioned stages a buyer undergoes before making the final decision (Kotler &Armstrong 2006).
In order for P & G to meet or satisfy the needs of customers effectively, P & G has developed various marketing and advertising strategies for the new product, which will be used in an extensive and wide manner. Advertising and marketing of “InsecKill” will utilize information that is highly convincing to the buyer, enough to influence their purchase decision. If this is achieved successfully, the company will have a competitive advantage in the market over the other competing insecticides. Nonetheless, P & G will influence buyer behavior by ensuring its presence in all the stages of purchase decision, and influencing the buyer to buy “InsecKill,” which will be the right purchase decision for the consumer (Kotler & Armstrong 2006).
Business Context
Strategy and Plan
It is important for P&G to understand its target market in the UK before introducing the new product, “InsecKill.” Therefore, one of the strategies the company has put in place is market research. This will help the company to contextualize its target customers, with their needs. In addition to market research to understand the needs of the target consumers, P&G will conduct a competitor analysis, which involves identifying and researching on the top players in the industry. Information about competitors will help P & G to restrategize and compete favorably in the market. Finally, P & G will introduce “InsecKill” in the UK market. This will have a goal of making high sales, and boosting the general revenue of the company (Kotler & Keller 2012). In order to conduct marketing and advertisement of the new product “InsecKill” in the UK market, P&G must utilize different resources, which should be available and sufficient for the whole process. These resources include finances, time, and staffing. In addition to these, P & G considers its strengths and weaknesses ass important elements, which will determine the effectiveness of this marketing plan for the new product (Donnelly, Harrison & Meqicks 2009). Therefore, these will be evaluated, so that the strengths of the company are maximized, while the company’s weaknesses are minimized to achieve a successful entrance of “InsecKill” in the UK market.
Competitor Analysis
At this stage, P&G identifies the key players in the in the target market. Therefore, P&G has collected essential information about other companies, which manufacture insecticides, and which might pose as a threat to the new pesticide that P&G has developed. It is also important to establish the ways through which the potential competitors react to the new pesticide, which P&G will release in the market. Information about the goals, objectives, and strategies of competitors in the market will help P & G to compete healthily in the market (Doyle & Stern 2010). Therefore, using Porter’s Model (1980), the objectives and capabilities of the competitors are analyzed. According to Porter (1980), competitor assumptions are important, and therefore, these can help P&G to establish the strategies of competitors. Competitor assumptions are analyzed through what they say and do (Porter 1980).
For P&G, the main competitors for the new product are the top agrochemical companies in the UK, which manufacture insecticides and other similar products. These have been identified as Syngenta, BASF Crop Protection, and Bayer Crop. These companies are well established in the market, with strong brand names and products. These companies produce herbicides, pesticides, insecticides, among other products. These produce a variety of insecticides, which can be used on crops, seeds, or in homes. Therefore, their insecticides for home use will compete with P & G’s “InsecKill.” For instance, Syngenta produces a range of insecticides, including Thiamethoxam (CRUISER), which is used on crops, Lambda-cyhalothrin (ICON), for control of mosquitoes, cockroaches, and houseflies, and Cypermethrin (DEMON), a pyrethroid insecticide, which treats the soil against termite attacks in homes and other structures (Reuters 2013). However, the insecticides produced by Syngenta and the other companies are considered more powerful and poisonous to humans, thus not recommended for household use. Therefore, P&G expects to compete with these companies’ insecticides and gain a competitive advantage, basing on the nature, pricing, and effectiveness of “InsecKill.” The effectiveness of “InsecKill” is undisputable, therefore, P&G will invest highly in advertising in order to reach a greater number of its target customers.
Internal Context
Organization Identity
P&G has distinct characteristics that differentiate it and its products from other companies. This is a popular brand, selling in close to 180 countries globally, including the UK. Besides, the company has specialized and has high experience in producing household consumer goods, which have earned it customer loyalty. In addition, P& G is customer-centered, as it puts the needs of its customers first. Above all, the high innovativeness of this company is a core strength, which has influenced the company positively over time. The pricing of most of P&G products is always considerate of the economic status of customers, as well as the current hard economic times (Rehtmeyer 2010: P&G 2012). These are some of the strengths, which will enable the company’s new brand “InsecKill” to receive a good reception in the UK. Therefore, the new brand “InsecKill” is expected to gain high sales, thus boosting overall company sales.
Beliefs, Values, and Culture
For marketing and advertisement of the new brand, P&G has put various aspects in consideration to meet its marketing goals. For instance, language is an important aspect, which the company has put into consideration (Kotler & Keller 2012). This has already been carefully selected, and aims at accommodating the target market segments. In addition, the low-context culture in the UK has also been put into consideration. Therefore, the messages in the advertisement and marketing campaigns will uphold the cultural values and attitudes of the people in the UK. The company will also employee more employees to help in the advertising and marketing activities of the new product. These will be recruited from the population in the UK. Their recruitment will be in line with the region’s local labor regulations, as well as the educational level of the target market (Pfau, Haigh, and Wigley 2008).
External context
Stakeholders
According to Kotler and Armstrong (2006), it is important to include stakeholders in a company’s marketing plan. Therefore, P&G will collaborate with its stakeholders to ensure the successful entry of “InsecKill” in the UK market. Therefore, P&G will involve its customers, competitors, and all its stakeholders to ensure that the new product gains a successful reception in the UK market. There will be constant communication between P&G and its stakeholders through various communication channels. Specific messages will be relayed to different stakeholders, with regard to their role in the process. Communication channels to be utilized include seminars, social media, and surveys. Feedback is highly valued; therefore, P&G will ensure there is feedback as an important part of communication with its stakeholders (Kotler & Keller 2012).
Macro Environment
The introduction of this new product in the UK market will be influenced by other external factors, which the company has no control over. First, the economy of the UK, which is greatly determined by the government, is a great determinant of the success of the new product. There are various economic factors, which are predetermined in the market, and these include government taxes, interest and exchange rates, as well as the degree of inflation (Kotler & Keller 2012). Other factors are political, socio-cultural, legal, and technological. In addition to the mentioned economic factors, socio-cultural factors such as low context culture, and value for quality (Leon & Leslie 2007) are present in the UK, therefore, P&G has put them into consideration in the implementation of this marketing plan. This is through ensuring high quality of the new product, and upholding of decency and ethics in the whole advertising and marketing process.
P&G values its customers and their needs. Therefore, the company will offer this new product at a reduced price, compared to that of its competitors. Through the company’s innovativeness, the quality of the new product “InsecKill” is higher and designed to suit household use only, compared to other insecticides from competitors. This product will therefore, serve the needs of most women, who are responsible for their households and housekeeping. Additionally, P&G shows its value for environment through developing an organic insecticide, which is eco-friendly. Furthermore, P&G will involve the UK population in different activities, which are aimed at environmental conservation. These activities will include trainings for consumers on how to use the insecticide in their homes to avoid poisoning, and methods of disposing the bottles and cans of insecticides to avoid a negative impact on the environment. According to Pfau, Haigh, and Wigley (2008), such social responsibility by a company reflects positively on the image of the company.
Marketing Plan Objectives and Strategies
Objectives
The main objective of P&G is to introduce the new product in the UK market, achieve great sales form the new brand, which will boost overall company sale revenues, and remain competitive in the UK market. The objectives are well elaborated below.
1) Introduce the new product in the United Kingdom. The launch of this product is set to be conducted after the company is through with market research, SWOT and PEST analysis, and developing a budget for the marketing process. All this is planned to be implemented before August 2013.
2) To use marketing and advertising to develop a positive image of P&G in the UK market. This will enable “InsecKill” to receive a positive reception in the market and combat competition from other insecticides in the market from competitors. The main goal is for “InsecKill” to beat competition from other insecticides in the first six months after its launch.
3) Through the implementation of this marketing plan, P&G aims at increasing the sales of “InsecKill” by an average of 15 percent, after every six months, after the first six months of its launch.
4) This marketing plan is also intended to increase the awareness of the people about the new product. After the first six months from the launch of “InsecKill,” P&G aims at increasing awareness of this product among the people by 20 percent.
5) Through marketing and advertisements, P&G aims at ensuring that the targeted consumers trust the new product. This will be through emphasizing the major advantages of using “InsecKill,” as it is organic and kills insects faster.
6) This marketing plan, upon implementation, aims at maintaining and supporting high sales of the new product, as well as the current sales of other products in the company.
7) Through this marketing plan, P&G aims at educating the target consumers and informing them of the benefits of using the “InsecKill” in their households, and not the other brands from other companies.
8) This marketing plan also intends to change the perception of the people toward the company. The marketing process will portray the company in a positive image, thus serving as a reminder to the people about the positive image of P&G (Donnelly, Harrison & Meqicks 2009).
Strategies
The marketing strategies for P&G’s “InsecKill” will involve both push and pull campaigns, as well as different tactics, which will enable successful marketing (Donnelly, Harrison & Meqicks 2009). These three aspects will be balanced in the marketing process, in order to a higher number of the target consumers. The marketing plan strategies are intended to align strategically with different channels, which will take part in the distribution of the new product in the country. In addition to the marketing plan strategies, P&G will adopt a promotional budget, which will show the allocation of funds in the marketing and advertising process of the new product. The company will also perform an analysis of its international market strategies, and the past marketing strategies for other products in the UK, in order to enhance the marketing strategy of “InsecKill.” The company will employ media coverage for the launch of the new product in addition to the adverts for the product, which will also be conducted through the media (Doyle & Stern 2010).
Push Campaigns
P&G will use push campaigns with its agents, who will be responsible for distributing and supplying the ‘InsecKill” to various locations within the United Kingdom, where different customers can purchase them. This ensures that the new product is made available to customers, in order for them to make their purchase (Liyanage 2003).
Pull Campaigns
Neal, Quester, and Pettigrew (2007) note that pull campaigns are directed to consumers. These are meant to arouse the interest and curiosity of consumers to seek out more information about a product, from different advertisements and the media. Therefore, advertisements of “InsecKill” on the television will make the target customers to search for more information about this new product, after which they will make their purchase decision.
Tactics
P&G will utilize various tactics in its marketing. These mainly involve different marketing activities, which aim at popularizing the new product among the target customers in the UK. These tactics include;
Public Relations
Promotion and advertising are the major public relations activities that P&G will undertake. For promotions, different public events such as sports for children (Schwarz & Hunter 2008) will be used as avenues of promoting InsecKill. Children sports day will attract a large number of women, who are the main target of the new product. These women, whether married or not, are responsible for the purchase decisions of most consumer products for household use. In such events, there will be sales promotion through point of sale, competitions and prizes, free gifts and offering one free ticket after a customer buys one bottle of the insecticide. Therefore, events that bring them together in large numbers ensure effective marketing. P&G will use local citizens in the UK to market InsecKill. The messages in the advertisements will also be well planned and developed to boost a positive reception of the product in the UK market (Lancaster and Reynolds 1998).
Advertising
Advertising of InsecKill is mainly meant to introduce the new product to the public. This will involve the description of the product, information about its pricing, and its benefits, and reasons why consumers should choose it. P&G must develop objectives for its advertisements, and reach out to its target consumers (Kotler & Keller 2012). The new insecticide in the market will ensure that customers in the market, who will be curious to seek more information about the product. In the television advertisement, both audio and visuals will be used. The visuals will include a woman spraying away houseflies and mosquitoes, killing them immediately, using InsecKill, then later enjoying some good sleep with her child, without mosquitoes. On the other hand, the audio message will read: “P&G introduces InsecKill, the proven most effective and safe insecticide. Choose InsecKill for instant elimination of stubborn insects in your home. InsecKill, the natural way to kill insects.”
In all advertisements, P&G will emphasize the affordable price of InsecKill, and its high effectiveness. The benefits of InsecKill, compared to other competitors’ insecticides, will be mentioned. This will ensure the differentiation of InsecKill from the competitors’ insecticides, by the target consumer. The slogan in the advertisement will be repeated many times in a single advert, so as to distinguish InsecKill from other insecticides. The major channels of advertisement in this market include televisions, lifestyle magazines, brochures, and business magazines, mobile messaging, among others.
Direct Marketing
This eliminates the third parties from the distribution chain of the product. Direct marketing will be through the company website and blog, mailings products to consumers, and various media such as catalogs, and telemarketing. Various types of media will be used. Use of company website is more appropriate, as more women in the UK spend a considerable time surfing the internet (Kotler & Armstrong 2006).
Sponsorship
P&G will use sponsorship as a way of marketing InsecKill. This company will choose to sponsor a considerable number of events such as charity events, which are known to have female audience. According to Donnelly, Harrison & Meqicks (2009), involvement in such activities by a company is a marketing strategy, capable of increasing sale revenue for the company.
Pricing
The pricing of InsecKill will depend on that of its competitors. P&G will put into consideration the economic status of its target market, including people’s purchasing power, as well as the economy of UK as a country. However, after as a promotional strategy of P&G, the price of InsecKill will be lower during promotions, and then stabilize after the promotion period. Promotions involving price cuts will also be offered to business partners of P&G (Doyle & Stern 2010). Nonetheless, the marketing campaigns will still be employed during the promotions. Segmented pricing strategies will also apply, since P&G has developed varying sizes of cans holding the insecticide. These can sizes will be instrumental in determining prices. Segmented prices are effective, as these increases the consumers’ opportunities to choose whatever product size with the price they can afford, thus increasing sale revenues for the company (Schwarz and Hunter, 2008). P&G will also utilize the aspect of psychological pricing. Prices of the product will end with 9, and not 0. Those that end with 9 are more appealing than those ending with 0. Therefore, this will attract more customers (Doyle & Stern 2010).
Place
P&G has distribution systems that are well established. According to Chang (1995), a company chooses its distribution channels basing on levels of service, logistics, and market coverage. Since the target market is mainly females, these are more likely to shop from different outlets of the company, as well as shopping malls. Basing on this reason, P&G will distribute the new product through shopping malls, and company outlets. The company will ensure that InsecKill is available in all shopping malls in the UK, for easy access by customers.
Marketing Budget
For the marketing budget, P&G will divide its marketing strategies into two categories, namely, the inbound and outbound marketing strategies. Inbound marketing strategies comprise the website of the company, company blog, online advertising campaigns, and other marketing strategies that are online based. On the other hand, the outbound marketing strategies include television advertisements, billboards, magazines, radio, print, and promotional events such as charity, children’s sports day, and event sponsorships (Donnelly, Harrison & Meqicks 2009). The marketing budget below therefore, shows the expenditure of P&G for the first three half of its marketing period. The main items in the budget are months, marketing strategies, and the total expenditure for each month and sum of the expenditure for the three months.
Marketing Strategy |
January |
February |
March |
Marketing Expenditures |
Website |
$850.00 |
$500.00 |
$350.00 |
$1,700.00 |
Blog |
$600.00 |
$400.00 |
$400.00 |
$1,400.00 |
Telemarketing |
$6,000.00 |
$2,000.00 |
$5,000.00 |
$13,000.00 |
SMS campaigns |
$1500.00 |
$2,500.00 |
$1000.00 |
$5,000.00 |
Print advertisements |
$3,500.00 |
$0.00 |
$2,000.00 |
$5,500.00 |
Marketing events |
$25,000.00 |
$0.00 |
$25,000.00 |
$50,000.00 |
Billboards, Radio, and Television |
$5,000.00 |
$5,000.00 |
$4,000.00 |
$14,000.00 |
TOTAL |
$42,450 |
$10,400 |
$37,750 |
$90,600 |
Table 1: Marketing budget of P&G
Conclusion
P&G targets females, who are either married or single, for the sale of its latest product “InsecKill” a spray insecticide designed for household use. Since P&G is not new in the UK market, it will continue to adhere to the laws and culture of the UK. Nonetheless, the company must conduct market research to determine the needs of customers for the new product. Additionally, the buyer behavior is necessary for P7G to sale its new product. A greater percentage of adult females in households are expected to afford this new product, since its pricing is lower, besides, this is a necessary household product, since insects are a common occurrence in most homes. With regard to the low context culture of the people in the UK, advertisements for this new product must embrace decency and be focused on the message. Launching a new product is quite an achievement for most companies, however, there are risks involved, if the marketing plan for the new product was unsatisfactory. For this reason, P&G employs its wide knowledge to ensure that this marketing plan is well executed and implemented, for the successful reception of InsecKill in the UK market.
References
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Launch of P&G “InsecKill” Insecticide in the UK
Hand in date:
Student No:
Name:
Tutor:
Table of Contents
Marketing Plan Objectives and Strategies
Table 1: Marketing budget of P&GConclusion
Executive Summary
This is a marketing plan for Proctor & Gamble (P&G) Company for the launch of its latest and new product the “InsecKill’ insecticide in the UK market. The company considers it important to first identify a cost-effective and functional planning process before launching the new product in the UK market. It considers important steps to ensure that “InsecKill” gains a successful entry in the UK market and beats competition. This marketing plan identifies important feasible ideas, which will guarantee the success of this new product in the UK market, and the target segment.
A marketing plan has high versatility. This requires a company to use its resources for the implementation of the marketing plan to be successful (Kotler & Keller 2012). Therefore, it is crucial that a company ensures that a new product launched after a marketing plan, is successful in the market, to avoid losses. Nonetheless, P&G intends to launch and market a new product in the United Kingdom, which it is manufacturing for the first time. P&G is a popular brand in the country for its high innovativeness, and a strategic position there, therefore, this is expected that “InsecKill” will receive a good reception.
A research has been conducted on the target segment. This has mainly based on the information on consumer demographic distribution and spending behavior in the UK from the company, with regard to its other products sale in the UK market. Different strategies have been identified about how information about “InsecKill” will be disseminated in the target market. Direct marketing, public relations, sales promotion, and advertising are combined in to a single marketing mix to achieve this.
Finally, reviews have been conducted on the customer, market, internal and external contexts. In addition, the objectives, strategies, and budget of this marketing plan have been outlined and are discussed. Furthermore, different tactics to ensure successful business experience in the UK have been identified, basing on the consumer research findings. Nonetheless, P&G will assess and review its marketing activities time to time, with regard to changing consumer behavior, for better results.
Introduction
Procter & Gamble (P&G) Company is a popular multinational company specializing in consumer goods. It produces a wide range of products, including household products, personal care products, cleaning agents, pet foods, among others. This company is highly innovative, thus the wide variety of products. In addition, P&G is known to develop new products in the market at a higher rate, compared to other companies. Overall, P&G is a high performer in the market, registering high profits each year (P&G 2012).
P&G values its customers, and develops products that suit their needs. This is the reason for the wide range of brands the company produces. Market research is a crucial aspect for this company, as it is through this that the company identifies the needs of its customers (Rehtmeyer 2010). P&G has been successful in the consumer goods market. In this essay, it is assumed that P&G has developed a new product, which it needs to introduce in the United Kingdom (UK). This is an insecticide named “InsecKill,” which is meant for household use to kill stubborn and harmful insects in homes. P&G hopes this product will gain market in the UK due to the features that make it more suitable for household use. In this case, the UK is among the first countries where this new product is introduced. Therefore, this detailed marketing plan aims at ensuring the successful adoption of “InsecKill” in the UK market.
Situation Analysis
In the UK and other parts of the world, there is demand for different household products, including insecticides. People need insecticides to get rid of the insects, which might cause different harm in their homes. These insects include flies, cockroaches, mosquitoes, and fruit flies, among others, which are stubborn, and might cause diseases in homes. “InsecKill” will be effective in killing various insects in homes, as this is manufactured with special ingredients, which are effective in eliminating insects. “InsecKill” is in spray form and packaged in cans of different sizes. This is specifically suitable for household use, but also for offices, and other places, where insects might occur.
Market research for this product is essential, as it will help in identifying the needs of customers, who are targeted for this product (Kotler & Keller 2012). The prospective customers for this insecticide are women, both married and single. This is because women are responsible for housekeeping. Both working women and homemakers are targeted, since both are believed to have the purchasing power for this new product, considering it is basic in homes, and its price, which is affordable. “InsecKill” will ensure homes are free of insects, which cause diseases and viruses that are harmful to humans.
Purchasing an insecticide is a quite involving process for consumers. A consumer will have to undergo a series of steps, before deciding on which insecticide to purchase. First, a consumer will identify their need for an insecticide. After establishing that there are insects in their houses, which need to be eliminated, a consumer will set out to search for information leading to a solution. Next, the consumer will compare the different solutions found through the information gathered. Finally, a consumer will arrive at a purchase decision. Here, the consumer decides whether to buy or not, where to buy, and when to buy the product. However, today, the market is filled with diverse information on different products; therefore, a consumer is more likely to make wrong purchase choices (Leon & Leslie 2007).
In United Kingdom, it is the women, who make most decisions regarding the purchase of products for household use. Therefore, P & G Company has put strategies in place to ensure that the new product, “InsecKill” captures the attention of more women than men in the UK. P&G will use this as a tactic to ensure the wide and outstanding marketing of “InsecKill,” so that the target consumers can make the right purchase decisions. It is expected that the target market will purchase ‘InsecKill” because of its quality and its characteristics that make it more suitable and safe to use in homes. First, this is biodegradable, thus environmentally friendly. Secondly, this insecticide is not harmful to humans, but kills stubborn insects instantly when sprayed. In addition, it is affordable and easy to use. Therefore, the characteristics of this insecticide are expected to give it an edge over the others in the market.
Customer context
Segmentation
The target segment is the working class females, as well as homemakers. However, the working class females are key consumers, who can purchase the product. This is because these are more economically empowered, therefore, their affordability is guaranteed. On the hand, homemakers might be obliged to purchase this product, since the household activities, they are involved in, call for the adoption of an insecticide. At home, these might experience houseflies and other insects. Therefore, the needs of these target consumers have to be contextualized (Kotler & Keller 2012) so that the strategies set will meet these needs.
Involvement
For this company, it is necessary that the specific and general needs of its customers be fulfilled. Consumers will utilize a variety of their resources, including time and financial resources, in buying the new product. Therefore, it is crucial P & G develops marketing strategies, which will positively influence consumers, and assure them that they are making the right purchase decision by choosing “InsecKill” (Kotler & Keller 2012). The information relayed to consumers about this new product must show the benefits of the new insecticides, which lack in other insecticides in the market, and which consumers will miss out on, if they fail to choose this new insecticide. According to Schwarz and Hunter (2008), a convincing, reassuring, and serious tone should be used in product marketing to attract the interest of consumers in the product.
Buyer Behavior
Prior to making a purchase decision, a buyer will have undergone various stages, as identified. These include need identification, searching for information, comparing alternative solutions, and finally making the purchase decision (Leon & Leslie 2007). Therefore, this marketing plan is developed to ensure that P&G has a positive influence on the behavior of its target consumers. This will be achieved by ensuring the presence of P&G in all the different mentioned stages a buyer undergoes before making the final decision (Kotler &Armstrong 2006).
In order for P & G to meet or satisfy the needs of customers effectively, P & G has developed various marketing and advertising strategies for the new product, which will be used in an extensive and wide manner. Advertising and marketing of “InsecKill” will utilize information that is highly convincing to the buyer, enough to influence their purchase decision. If this is achieved successfully, the company will have a competitive advantage in the market over the other competing insecticides. Nonetheless, P & G will influence buyer behavior by ensuring its presence in all the stages of purchase decision, and influencing the buyer to buy “InsecKill,” which will be the right purchase decision for the consumer (Kotler & Armstrong 2006).
Business Context
Strategy and Plan
It is important for P&G to understand its target market in the UK before introducing the new product, “InsecKill.” Therefore, one of the strategies the company has put in place is market research. This will help the company to contextualize its target customers, with their needs. In addition to market research to understand the needs of the target consumers, P&G will conduct a competitor analysis, which involves identifying and researching on the top players in the industry. Information about competitors will help P & G to restrategize and compete favorably in the market. Finally, P & G will introduce “InsecKill” in the UK market. This will have a goal of making high sales, and boosting the general revenue of the company (Kotler & Keller 2012). In order to conduct marketing and advertisement of the new product “InsecKill” in the UK market, P&G must utilize different resources, which should be available and sufficient for the whole process. These resources include finances, time, and staffing. In addition to these, P & G considers its strengths and weaknesses ass important elements, which will determine the effectiveness of this marketing plan for the new product (Donnelly, Harrison & Meqicks 2009). Therefore, these will be evaluated, so that the strengths of the company are maximized, while the company’s weaknesses are minimized to achieve a successful entrance of “InsecKill” in the UK market.
Competitor Analysis
At this stage, P&G identifies the key players in the in the target market. Therefore, P&G has collected essential information about other companies, which manufacture insecticides, and which might pose as a threat to the new pesticide that P&G has developed. It is also important to establish the ways through which the potential competitors react to the new pesticide, which P&G will release in the market. Information about the goals, objectives, and strategies of competitors in the market will help P & G to compete healthily in the market (Doyle & Stern 2010). Therefore, using Porter’s Model (1980), the objectives and capabilities of the competitors are analyzed. According to Porter (1980), competitor assumptions are important, and therefore, these can help P&G to establish the strategies of competitors. Competitor assumptions are analyzed through what they say and do (Porter 1980).
For P&G, the main competitors for the new product are the top agrochemical companies in the UK, which manufacture insecticides and other similar products. These have been identified as Syngenta, BASF Crop Protection, and Bayer Crop. These companies are well established in the market, with strong brand names and products. These companies produce herbicides, pesticides, insecticides, among other products. These produce a variety of insecticides, which can be used on crops, seeds, or in homes. Therefore, their insecticides for home use will compete with P & G’s “InsecKill.” For instance, Syngenta produces a range of insecticides, including Thiamethoxam (CRUISER), which is used on crops, Lambda-cyhalothrin (ICON), for control of mosquitoes, cockroaches, and houseflies, and Cypermethrin (DEMON), a pyrethroid insecticide, which treats the soil against termite attacks in homes and other structures (Reuters 2013). However, the insecticides produced by Syngenta and the other companies are considered more powerful and poisonous to humans, thus not recommended for household use. Therefore, P&G expects to compete with these companies’ insecticides and gain a competitive advantage, basing on the nature, pricing, and effectiveness of “InsecKill.” The effectiveness of “InsecKill” is undisputable, therefore, P&G will invest highly in advertising in order to reach a greater number of its target customers.
Internal Context
Organization Identity
P&G has distinct characteristics that differentiate it and its products from other companies. This is a popular brand, selling in close to 180 countries globally, including the UK. Besides, the company has specialized and has high experience in producing household consumer goods, which have earned it customer loyalty. In addition, P& G is customer-centered, as it puts the needs of its customers first. Above all, the high innovativeness of this company is a core strength, which has influenced the company positively over time. The pricing of most of P&G products is always considerate of the economic status of customers, as well as the current hard economic times (Rehtmeyer 2010: P&G 2012). These are some of the strengths, which will enable the company’s new brand “InsecKill” to receive a good reception in the UK. Therefore, the new brand “InsecKill” is expected to gain high sales, thus boosting overall company sales.
Beliefs, Values, and Culture
For marketing and advertisement of the new brand, P&G has put various aspects in consideration to meet its marketing goals. For instance, language is an important aspect, which the company has put into consideration (Kotler & Keller 2012). This has already been carefully selected, and aims at accommodating the target market segments. In addition, the low-context culture in the UK has also been put into consideration. Therefore, the messages in the advertisement and marketing campaigns will uphold the cultural values and attitudes of the people in the UK. The company will also employee more employees to help in the advertising and marketing activities of the new product. These will be recruited from the population in the UK. Their recruitment will be in line with the region’s local labor regulations, as well as the educational level of the target market (Pfau, Haigh, and Wigley 2008).
External context
Stakeholders
According to Kotler and Armstrong (2006), it is important to include stakeholders in a company’s marketing plan. Therefore, P&G will collaborate with its stakeholders to ensure the successful entry of “InsecKill” in the UK market. Therefore, P&G will involve its customers, competitors, and all its stakeholders to ensure that the new product gains a successful reception in the UK market. There will be constant communication between P&G and its stakeholders through various communication channels. Specific messages will be relayed to different stakeholders, with regard to their role in the process. Communication channels to be utilized include seminars, social media, and surveys. Feedback is highly valued; therefore, P&G will ensure there is feedback as an important part of communication with its stakeholders (Kotler & Keller 2012).
Macro Environment
The introduction of this new product in the UK market will be influenced by other external factors, which the company has no control over. First, the economy of the UK, which is greatly determined by the government, is a great determinant of the success of the new product. There are various economic factors, which are predetermined in the market, and these include government taxes, interest and exchange rates, as well as the degree of inflation (Kotler & Keller 2012). Other factors are political, socio-cultural, legal, and technological. In addition to the mentioned economic factors, socio-cultural factors such as low context culture, and value for quality (Leon & Leslie 2007) are present in the UK, therefore, P&G has put them into consideration in the implementation of this marketing plan. This is through ensuring high quality of the new product, and upholding of decency and ethics in the whole advertising and marketing process.
P&G values its customers and their needs. Therefore, the company will offer this new product at a reduced price, compared to that of its competitors. Through the company’s innovativeness, the quality of the new product “InsecKill” is higher and designed to suit household use only, compared to other insecticides from competitors. This product will therefore, serve the needs of most women, who are responsible for their households and housekeeping. Additionally, P&G shows its value for environment through developing an organic insecticide, which is eco-friendly. Furthermore, P&G will involve the UK population in different activities, which are aimed at environmental conservation. These activities will include trainings for consumers on how to use the insecticide in their homes to avoid poisoning, and methods of disposing the bottles and cans of insecticides to avoid a negative impact on the environment. According to Pfau, Haigh, and Wigley (2008), such social responsibility by a company reflects positively on the image of the company.
Marketing Plan Objectives and Strategies
Objectives
The main objective of P&G is to introduce the new product in the UK market, achieve great sales form the new brand, which will boost overall company sale revenues, and remain competitive in the UK market. The objectives are well elaborated below.
1) Introduce the new product in the United Kingdom. The launch of this product is set to be conducted after the company is through with market research, SWOT and PEST analysis, and developing a budget for the marketing process. All this is planned to be implemented before August 2013.
2) To use marketing and advertising to develop a positive image of P&G in the UK market. This will enable “InsecKill” to receive a positive reception in the market and combat competition from other insecticides in the market from competitors. The main goal is for “InsecKill” to beat competition from other insecticides in the first six months after its launch.
3) Through the implementation of this marketing plan, P&G aims at increasing the sales of “InsecKill” by an average of 15 percent, after every six months, after the first six months of its launch.
4) This marketing plan is also intended to increase the awareness of the people about the new product. After the first six months from the launch of “InsecKill,” P&G aims at increasing awareness of this product among the people by 20 percent.
5) Through marketing and advertisements, P&G aims at ensuring that the targeted consumers trust the new product. This will be through emphasizing the major advantages of using “InsecKill,” as it is organic and kills insects faster.
6) This marketing plan, upon implementation, aims at maintaining and supporting high sales of the new product, as well as the current sales of other products in the company.
7) Through this marketing plan, P&G aims at educating the target consumers and informing them of the benefits of using the “InsecKill” in their households, and not the other brands from other companies.
8) This marketing plan also intends to change the perception of the people toward the company. The marketing process will portray the company in a positive image, thus serving as a reminder to the people about the positive image of P&G (Donnelly, Harrison & Meqicks 2009).
Strategies
The marketing strategies for P&G’s “InsecKill” will involve both push and pull campaigns, as well as different tactics, which will enable successful marketing (Donnelly, Harrison & Meqicks 2009). These three aspects will be balanced in the marketing process, in order to a higher number of the target consumers. The marketing plan strategies are intended to align strategically with different channels, which will take part in the distribution of the new product in the country. In addition to the marketing plan strategies, P&G will adopt a promotional budget, which will show the allocation of funds in the marketing and advertising process of the new product. The company will also perform an analysis of its international market strategies, and the past marketing strategies for other products in the UK, in order to enhance the marketing strategy of “InsecKill.” The company will employ media coverage for the launch of the new product in addition to the adverts for the product, which will also be conducted through the media (Doyle & Stern 2010).
Push Campaigns
P&G will use push campaigns with its agents, who will be responsible for distributing and supplying the ‘InsecKill” to various locations within the United Kingdom, where different customers can purchase them. This ensures that the new product is made available to customers, in order for them to make their purchase (Liyanage 2003).
Pull Campaigns
Neal, Quester, and Pettigrew (2007) note that pull campaigns are directed to consumers. These are meant to arouse the interest and curiosity of consumers to seek out more information about a product, from different advertisements and the media. Therefore, advertisements of “InsecKill” on the television will make the target customers to search for more information about this new product, after which they will make their purchase decision.
Tactics
P&G will utilize various tactics in its marketing. These mainly involve different marketing activities, which aim at popularizing the new product among the target customers in the UK. These tactics include;
Public Relations
Promotion and advertising are the major public relations activities that P&G will undertake. For promotions, different public events such as sports for children (Schwarz & Hunter 2008) will be used as avenues of promoting InsecKill. Children sports day will attract a large number of women, who are the main target of the new product. These women, whether married or not, are responsible for the purchase decisions of most consumer products for household use. In such events, there will be sales promotion through point of sale, competitions and prizes, free gifts and offering one free ticket after a customer buys one bottle of the insecticide. Therefore, events that bring them together in large numbers ensure effective marketing. P&G will use local citizens in the UK to market InsecKill. The messages in the advertisements will also be well planned and developed to boost a positive reception of the product in the UK market (Lancaster and Reynolds 1998).
Advertising
Advertising of InsecKill is mainly meant to introduce the new product to the public. This will involve the description of the product, information about its pricing, and its benefits, and reasons why consumers should choose it. P&G must develop objectives for its advertisements, and reach out to its target consumers (Kotler & Keller 2012). The new insecticide in the market will ensure that customers in the market, who will be curious to seek more information about the product. In the television advertisement, both audio and visuals will be used. The visuals will include a woman spraying away houseflies and mosquitoes, killing them immediately, using InsecKill, then later enjoying some good sleep with her child, without mosquitoes. On the other hand, the audio message will read: “P&G introduces InsecKill, the proven most effective and safe insecticide. Choose InsecKill for instant elimination of stubborn insects in your home. InsecKill, the natural way to kill insects.”
In all advertisements, P&G will emphasize the affordable price of InsecKill, and its high effectiveness. The benefits of InsecKill, compared to other competitors’ insecticides, will be mentioned. This will ensure the differentiation of InsecKill from the competitors’ insecticides, by the target consumer. The slogan in the advertisement will be repeated many times in a single advert, so as to distinguish InsecKill from other insecticides. The major channels of advertisement in this market include televisions, lifestyle magazines, brochures, and business magazines, mobile messaging, among others.
Direct Marketing
This eliminates the third parties from the distribution chain of the product. Direct marketing will be through the company website and blog, mailings products to consumers, and various media such as catalogs, and telemarketing. Various types of media will be used. Use of company website is more appropriate, as more women in the UK spend a considerable time surfing the internet (Kotler & Armstrong 2006).
Sponsorship
P&G will use sponsorship as a way of marketing InsecKill. This company will choose to sponsor a considerable number of events such as charity events, which are known to have female audience. According to Donnelly, Harrison & Meqicks (2009), involvement in such activities by a company is a marketing strategy, capable of increasing sale revenue for the company.
Pricing
The pricing of InsecKill will depend on that of its competitors. P&G will put into consideration the economic status of its target market, including people’s purchasing power, as well as the economy of UK as a country. However, after as a promotional strategy of P&G, the price of InsecKill will be lower during promotions, and then stabilize after the promotion period. Promotions involving price cuts will also be offered to business partners of P&G (Doyle & Stern 2010). Nonetheless, the marketing campaigns will still be employed during the promotions. Segmented pricing strategies will also apply, since P&G has developed varying sizes of cans holding the insecticide. These can sizes will be instrumental in determining prices. Segmented prices are effective, as these increases the consumers’ opportunities to choose whatever product size with the price they can afford, thus increasing sale revenues for the company (Schwarz and Hunter, 2008). P&G will also utilize the aspect of psychological pricing. Prices of the product will end with 9, and not 0. Those that end with 9 are more appealing than those ending with 0. Therefore, this will attract more customers (Doyle & Stern 2010).
Place
P&G has distribution systems that are well established. According to Chang (1995), a company chooses its distribution channels basing on levels of service, logistics, and market coverage. Since the target market is mainly females, these are more likely to shop from different outlets of the company, as well as shopping malls. Basing on this reason, P&G will distribute the new product through shopping malls, and company outlets. The company will ensure that InsecKill is available in all shopping malls in the UK, for easy access by customers.
Marketing Budget
For the marketing budget, P&G will divide its marketing strategies into two categories, namely, the inbound and outbound marketing strategies. Inbound marketing strategies comprise the website of the company, company blog, online advertising campaigns, and other marketing strategies that are online based. On the other hand, the outbound marketing strategies include television advertisements, billboards, magazines, radio, print, and promotional events such as charity, children’s sports day, and event sponsorships (Donnelly, Harrison & Meqicks 2009). The marketing budget below therefore, shows the expenditure of P&G for the first three half of its marketing period. The main items in the budget are months, marketing strategies, and the total expenditure for each month and sum of the expenditure for the three months.
Marketing Strategy |
January |
February |
March |
Marketing Expenditures |
Website |
$850.00 |
$500.00 |
$350.00 |
$1,700.00 |
Blog |
$600.00 |
$400.00 |
$400.00 |
$1,400.00 |
Telemarketing |
$6,000.00 |
$2,000.00 |
$5,000.00 |
$13,000.00 |
SMS campaigns |
$1500.00 |
$2,500.00 |
$1000.00 |
$5,000.00 |
Print advertisements |
$3,500.00 |
$0.00 |
$2,000.00 |
$5,500.00 |
Marketing events |
$25,000.00 |
$0.00 |
$25,000.00 |
$50,000.00 |
Billboards, Radio, and Television |
$5,000.00 |
$5,000.00 |
$4,000.00 |
$14,000.00 |
TOTAL |
$42,450 |
$10,400 |
$37,750 |
$90,600 |
Table 1: Marketing budget of P&G
Conclusion
P&G targets females, who are either married or single, for the sale of its latest product “InsecKill” a spray insecticide designed for household use. Since P&G is not new in the UK market, it will continue to adhere to the laws and culture of the UK. Nonetheless, the company must conduct market research to determine the needs of customers for the new product. Additionally, the buyer behavior is necessary for P7G to sale its new product. A greater percentage of adult females in households are expected to afford this new product, since its pricing is lower, besides, this is a necessary household product, since insects are a common occurrence in most homes. With regard to the low context culture of the people in the UK, advertisements for this new product must embrace decency and be focused on the message. Launching a new product is quite an achievement for most companies, however, there are risks involved, if the marketing plan for the new product was unsatisfactory. For this reason, P&G employs its wide knowledge to ensure that this marketing plan is well executed and implemented, for the successful reception of InsecKill in the UK market.
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