Mr Clean as One of the Successful Brands of Procter and Gamble - Research Paper Example

Brand analysis: Mr. Clean Bathroom cleaner Part Summary and Recommendations Mr. Clean is one of the successful brands of Procter & Gamble. It is considered as one of the leading brand in US market of household cleaning products. This brand introduced first ever bathroom cleaner product. The company always maintains high quality of products in this popular brand. However, the organization generally follows premium pricing strategy as they never try to compromise with the quality of the product. This brand has a strong presence in the US market, as well as in many foreign markets and people of all ages and geographical backgrounds are the major target customers of Mr. Clean. The global bathroom cleaners industry is highly competitive as several potential competitors of P&G are trying to introduce new differentiated bathroom cleaners in competitive pricing. The major weakness of this organization is lack of differentiation and inadequate global recognition despite the strong presence in US and also in several emerging countries in the world. It is important for the organization to consider several effective and unique strategies in business processes in order to enhance positive market growth rate and leading market position in US market of household cleaning products. The organization should consider porter’s generic strategy in strategy development process because it will help the company to introduce different effective marketing strategies appropriate for US market. First of all the organization should think about cost leadership strategy as it will help the organization to provide high quality products in economic price. It will also help to gain potential competitive advantages. Secondly, the organization should try to incorporate differentiation strategy. This particular generic strategy will help the organization to introduce differentiated product line according to the changing needs of the customers in United States. Last but not the least; the organization should try to target untapped market in United States to maintain its leading position. Part 2: Market Analysis of Product Category Market Situation Several leading brands of household cleaning products in United States are trying to adopt several unique business operation strategies in order to adopt potential competitive advantages. However, current market situation of household cleaning products in United States is highly complex. Recent financial crisis and global economic recession affected the global economic environment. Limited purchasing power and low disposable income are the major consequences of this global economic slowdown. This market has also become high competitive especially in US as several domestic organizations are trying to offer quality products in economic price level. Many organizations are trying to reduce business operation cost in order to maintain economic pricing of the products. Most importantly, the US consumers always prefer quality consumer goods in competitive price. Therefore, it is true that P&G has to face strong industry competition and high bargaining power of people for Mr. Clean. Competitors Mr. Clean is a successful brand extension of P&G. There are several competitors of P&G trying to introduce bathroom cleaners in order to grab the market share of Mr. Clean in US market. Image 1: Logo of Mr. Clean (Procter & Gamble) Mr. Muscle, Lysol, Harpic, Leafed, Domex and Duck are the major competitors of Mr. Clean. However, Mr. Clean is considered as the leading player within the bathroom cleaner industry in terms of market share, profitability and potential client base. Consumer Trends P&G markets Mr. Clean in near about 180 countries. Therefore, it can be stated that the product has strong presence in fast moving consumer goods market. In addition to this, Mr. Clean’s major consumers are aged between 12 and 80, based on the utilization and characteristics of the products. This product is considered as one of the leading health care consumer goods. The purchasers’ average age lies between early 20s and late 50s. The number of average purchasers is similar to the number of average users. The competency and effectiveness of this product help P&G to market Mr. Clean in different global areas. Majority of the consumers prefer to purchase Mr. Clean’s products in bulk so that they can get discounted price. Restaurants, offices and households are the major target customers of Mr. Clean. Maximum numbers of consumption usually takes place in the home of customers or within a particular place of an industry. P&G chooses several purchasing points for Mr. Clean. The consumers can purchase P&G from several small and large retail chains or directly from P&G. Walmart, Home Depot, Target, grocery shops and several stationary shops around the globe are the major clients of Mr. Clean. Therefore, it is quite easy for the customers to find and purchase Mr. Clean bathroom cleaners from favorable retail or distribution stores. Significant global reach of Mr. Clean proves high acceptance of the product. It is clear from above discussion that the US customers prefer high quality bathroom cleaners in different package size based on individual demand. Mr. Clean is achieving high market share growth rate due to maintaining high product quality and meeting market demand or customer satisfaction. Effective response to market demand and trend of customers helps Mr. Clean to expand its business practices in US market. Crucial Political Issues Mr. Clean is considered as one of the leading bathroom cleaners. P&G is the parent organization of Mr. Clean bathroom cleaner. The organization is very much involved in the political aspects in several US markets. There are several particular activities that can affect the organization. P&G is very much active in the global political environment. The organization has developed effective relations with several representatives from the US government regulations, human resources, legal and corporate communications. The P&G government relations usually represent the organization’s point of view in US in order to avoid several political issues. It is important for the organization to maintain high quality for the products. Mr. Clean is considered as one of the most competent and durable consumer goods. However, the organization is trying to maintain strong relationship with several external and internal stakeholders, public policy organizations and several key decision makers in US market in order to maintain political stability. Critical Technological Change External collaboration generally plays an important role in the development of Mr. Clean brand. The organization is collaborated with several external business partners and technology agencies. US business environment is becoming highly competitive as several leading organizations are trying to capitalize on the potential opportunities that have been developed due to technological advancements. However, P&G uses advanced technology in the manufacturing, distribution and marketing of Mr. Clean. The organization developed and implemented innovative online ideas in each and every business process of Mr. Clean in order to maintain its core competency. Nature of Competitive Landscape It is known to all that Mr. Clean is one of the successful umbrella brandings of P&G. The organization tries to implement effective business and marketing strategies in the business process in order to maintain the high brand image of Mr. Clean. There are two major competitors of P&G, such as HUL and Johnson & Johnson. Both of these organizations are trying to adopt effective strategies to grab the market share of Mr. Clean. Domex and Duck are the brand extensions of HUL and Johnson & Johnson. Both these organizations are trying to increase the competencies of these products in order to maintain high market share. These organizations are focusing on high quality control and effective cost control so that the organizations can get the advantages of significant competitive edge. In addition to this, the customer trend and global business environment is effectively transforming. The organizations are trying to maintain effective workplace environment and trying to retain highly skilled employees to become leading player within the industry. It is clear from the above discussion that the global bathroom cleaner industry is highly competitive and it is important for Mr. Clean to maintain its competitive market position through the implementation of several unique business strategies. Part 3: Brand Analysis Segmentation and Targeting The organization tries to segment the market based on the high product quality and premium pricing strategy of the products. However, it can be stated Mr. Clean is the first ever brand in the global bathroom cleaners industry. The organization used to focus on each and every market segment as the popularity of the product is increasing among the target customers (Sengupta 33). However, the organization promotes its products considering geographic, psychographic and demographic segment. Households, hospitals, offices and restaurants are major target customers of this Mr. Clean. People aged between 20s and 60s are the major target group of customers. In terms of demographic segment, people of middle class and higher income group, ands people from all geographic areas around the globe. Positioning It is clear from above discussion that P&G has positioned Mr. Clean as premium priced high quality products. Following perceptual map will help to determine its position in the minds of target customers. Figure 1: Perceptual Map (Sahaf 47) It is clear from the above perceptual map that P&G positioned Mr. Clean as high priced and high quality products. The organization generally implements reasonable pricing strategy and does not compromise with the quality of the product. However, recent economic slowdown and low purchasing power of people is forcing Mr. Clean to adopt new marketing strategies (Kotler 315). Figure 2: Marketing Mix (Hoffman 32) Product The bathroom cleaning products of Mr. Clean are popular among the target customers due to high quality of the products. These products can be used for multiple purposes. Mr. Clean magic eraser can be used as bathroom cleaner, kitchen cleaners, wall cleaner and floor cleaner. These multiple purposes and high quality of the products increased the brand loyalty of Mr. Clean. These products are eco-friendly and have no side effects on children. Therefore, the households or different hospitals around the globe prefer Mr. Clean as the major bathroom cleaner product. Price Mr. Clean is the first introduced product in the global bathroom cleaner industry. However, the price of the products are still little higher comparing to other competitors. However, it is important for the organization to consider high degree of industry rivalry, competitive pricing strategy of the competitors and purchasing power of the people. The organization strongly relies on the retailers and distributors (Smith 42). Therefore, it is important for the organization to implement economic pricing strategy to gain competitive advantages. Recently the organization adopted low competitive pricing strategy by reducing the business operation cost. Place (Distribution) P&G strongly relies on several existing distributor networks to target the products to market and sell Mr. Clean. The organization used to keep similar distribution method for each and every product line. The organization distributes Mr. Clean through several media, long retail chains grocery stores, supercenters, discount stores and home improvement centers. In addition to this, people can consume Mr. Clean through websites also. Promotion Promotion is an effective marketing communication tool that helps an organization to create significant brand awareness of a product or a service. The organization generally implements different promotional strategies to create the awareness of Mr. Clean among the target customers. The organization mainly focuses on print and digital media promotional activities for Mr. Clean as these promotional or advertising media can effectively attract mass target customers (Powell 37). In addition to this, direct selling, online promotional strategies and word of mouth promotional activities are helping Mr. Clean to gain significant awareness among the global target customers. SWOT Analysis SWOT analysis is an important strategies marketing tool that helps an organization to identify its internal strengths, weaknesses and external opportunities, threats. Strengths High brand awareness and strong global presence are the major strengths of Mr. Clean. P&G offers this product in more than 180 countries around the globe. In addition to this, potential global customer base and high quality of the products increases the brand image of Mr. Clean among the global consumers. Mr. Clean is the first product within the industry. People can use this product in multi purposes. Mr. Clean can be used in the cleaning of bathrooms, walls and kitchens. These multipurpose purposes effectively save time for the households in cleaning home. Weaknesses Product packaging and product durability are the major weaknesses of Mr. Clean. This particular product has low life cycle. Therefore, lack of durability increase the consumption cost of households. Mr. Clean is available as 2 erasers per package. It is true that several consumers use this product on daily basis. According to these consumers, Mr. Clean is not cost effective due to lack of multi packaging option. Opportunities Mr. Clean can integrate durability in the product manufacturing and packaging process. It is highly important for the organization to target different types of consumers. The US consumers prefer long lasting and durability of the products. Mr. Clean has the opportunity to capitalize on it. In addition to this, the organization can implement product differentiation strategy. The organization can introduce differentiated cleaning products under the product line of Mr. Clean. It is important for the organization to implement unique promotional and marketing communication strategy to attain significant global recognition (Ferrell 87). It will help the organization to increase the number of potential loyal customers. Threats Intense market competition and threat of new entrants are the major threats for Mr. Clean. There are several existing and new organizations within this bathroom cleaner industry that are continuously trying to offer high quality products in economic price level to gain competitive advantages (Muller 39). Table 1: SWOT Matrix Strengths High brand awareness. Multipurpose use. Unique business formula. Weaknesses Product durability. Product packaging. Opportunities Long lasting durability. Product expansion. Global recognition. Threats Intense market competition in US. Threat of new entrants. (Source: Bohm 21) Part 4: Brand Recommendations It is clear from above discussion and analysis that the organization is facing several issues in business operation processes. Intense market competition, lack of effective product differentiation and inadequate global recognition can affect the performance of Mr. Clean in US market. It is important for the organization to consider porter’s generic strategy in the development of future strategic plan. Porter’s generic strategy consists of three different strategies, such as cost leadership strategy, differentiation strategy and focus strategy. Following strategies can be recommended for Mr. Clean. Figure 3: Porter’s Generic Strategy (Source: Griffin 207) Cost Leadership Strategy It is clear from above analysis that US market of household cleaning products is highly competitive as several leading organizations are trying to implement competitive pricing strategy in order to achieve potential competitive advantages. Unilever and Johnson & Johnson have implemented cost leadership strategy to develop potential client base and grab the market share of Mr. Clean. There are several advantages of disadvantages of this cost leadership strategy. Mr. Clean can defend its brand against several powerful entities through the implementation of strategy as it will help the organization to attract more number of customers towards brand (Kossowski 275). On the other hand, quality control would be considered as major issues as it has been identified in several cases that low pricing strategy can hamper the product quality. The organization can maintain the significance and innovativeness’s of research and development team. It is the responsibility of the research and development team of Mr. Clean to maintain the quality of the products in low business operation cost. Favorable access to raw materials, own supply chain network and aggressive pricing will help Mr. Clean to avoid the challenges of cost leadership strategy. Differentiation Strategy Differentiation strategy is also known as one of the important marketing strategy. Mr. Clean is one of the strong and popular brand names within the market of household cleaning products. Several existing and new organizations prefer continuous differentiation of existing product lines to meet the market demand and create significant customer value. There are several advantages and disadvantages of this differentiation strategy. Effective adoption and implementation of differentiation strategy will help Mr. Clean to stop the target customers to switch over to other brands available in US market. Moreover, it will help the organization to gain customer loyalty (Porter 72). In terms of challenges, it can affect the cost control process of Mr. Clean. New product differentiation always demands high business capital. In addition to this, it demands effective and strong market research in order to determine the needs of differentiated products. However, it is responsibility of the market research team to conduct an effective marketing research to determine the prosperity of the new differentiated products. In addition to this, it is important for the organization to rely on existing suppliers and distributors to sell differentiated products from initial point of time. Focus Strategy It is known to all that Mr. Clean tries to target customers from different segmented groups. The time has come for the brand to focus on untapped market and develop new promotional idea to market the products. There are two types of focus generic strategy, such as focus cost leadership strategy and focus differentiation strategy. Only relying on cost leadership strategy can affect the brand image of the organization. Therefore, it is highly important for the organization to consider focus differentiation strategy. There are several advantages and disadvantages of focus differentiation strategy. In terms of benefits, it can help the organization to grab the untapped market. In terms of limitations, there is a huge risk for the organization to gain huge loss in case of bad performance of new differentiated products. The organization should develop differentiated product lines and should consider unique promotional strategies. It is true that households are always concerned about hygienic kitchen, walls, floors and bathrooms as they are concerned about the good health of children and entire family members. Mr. Clean should develop new differentiated product lines for the “First Mom”. In addition to this, the organization should promote these products in such a way that the target customers can get emotionally attached with the brand and several products of this particular brand. Apart from all these above mentioned things, it is highly important for the organization to defend own competitive position. Mr. Clean should participate in several community awareness programs to maintain a good and healthy relationship with governmental bodies and several global stakeholders. It will help the organization to minimize the possibilities of global challenges. Works Cited Bohm, Anja. The SWOT Analysis. Munich: GRIN Verlag, 2009. Print. Ferrell, Odies. Marketing strategy. Stamford: Cengage Learning, 2012. Print. Griffin, Ricky. Management. Stamford: Cengage Learning, 2008. Print. Hoffman, Stefanie. Are the 4 P's of International Marketing of Equal Importance to All Firms. Munich: GRIN Verlag, 2008. Print. Kossowski, Alexandra. Strategic Management: Porter’s Model of Generic Competitive Strategies. Munich: GRIN Verlag, 2007. Print. Kotler, Philip. Marketing. New Jersey: Pearson, 2008. Print. Muller, Anne-kathrin. SWOT Analysis. Munich: GRIN Verlag, 2009. Print. Porter, Michael. Competitive Strategy. London: Simon & Schuster, 2008. Print. Powell, Guy. Marketing Calculator. New Jersey: John Wiley & Sons, 2012. Print. Procter & Gamble. Home. 2013. Web. 6 December, 2013. < http://www.mrclean.com/en_US/home.do>. Sahaf, Musadiq. Strategic Marketing: Making Decisions for Strategic Advantage. London: PHI Learning Ltd. Sengupta, Subroto. Brand Positioning. New Delhi: tata McGraw-Hill Education. Smith, Paul. Great Answers to Tough Marketing Questions. London: Kogan Page, 2003. Print. Read More