Despite Proctor and Gamble being a multinational company with overwhelming presence in the global spectrum, it has not been exempted from the rapidly increased competition. The aspects of globalization, liberalization of markets as well as advancement of technology have been the main factors leading to increase in competition (Hoyer and Macinnis, 2009). This is with reference to the fact that companies are given the chance to open new markets in all parts of the globe. The concept of technology on the other hand has helped different companies to come up with sophisticated products thus posing overwhelming competition to their opponents. In the Indonesian market, P&G has in the recent find things tough following the increasing competition. A variety of products dealt with by the company have faced tremendous competition from opponent companies (Keegan and Green, 2002). This phenomenon has jeopardized the prospects of P&G of becoming the market leader as well as maximizing on profits. Based on the concept of competition, P&G has faced increased operational costs. This is with reference to increased costs incurred in the marketing process, thus reducing profits.
In Indonesia, P&G faces stiff competition from companies dealing with the same group of domestic products. The most outstanding competitor of P&G in Indonesia is Uniliver. In this case, both companies deal with a wide variety of consumer goods, which are closely related. Despite the overwhelming presence of P&G in Indonesian market, it has not been exempted from the increasing competition (Molenaar, 2010). Over the last 3 years, the company has been under pressure from the tremendous competition from uniliver. Uniliver has been in a series of developments in the Indonesian market, whereby it is looking forward to opening more factories. In this case, uniliver has planned to boost the amount of capital for raising new factories in Indonesia for the next 2 to 3 years. This has been a strategic plan by the company so as to ensure market dominance (Molenaar, 2010).
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A point worth of consideration is that uniliver is very keen to capturing Indonesian market of consumer products. In this case, the population earning less than $ 2.50 a day has been the main target by the company. With establishment of more factories in Indonesia, Uniliver is looking forward to reduced operational costs, thus being able to cut down prices (Keegan and Green, 2002). This is a very efficient competitive strategy that is aiming at locking out P&G from Indonesia and more so the population earning less than $ 2.50 a day. Uniliver has also been engaged in an intensive market research and development, whereby it aims at mobilizing essential information concerning the market. This phenomenon has helped uniliver to come up with sophisticated brands and products that are appealing to consumers. The concept of advertisement has also been highly adopted by uniliver, whereby it uses both internet and media thus being able to reach a wider market (TheJakartaPost, 2011). The pricing strategy by uniliver is outstanding in that it has been able to meet the needs of the local community. In this case, the products of uniliver have been able to out-compete those of P&G.
Apart from uniliver, P&G s also facing stiff competition from Johnson & Johnson (JNJ) company and Kimberly-Clark corporation. Both companies deal with consumer based products, whereby they enjoy an overwhelming global recognition. In the Indonesian market, Johnson& Johnson and Kimberly-Clark corp. have been in an intensive market operation (Keegan and Green, 2002). In this case, the companies have undertaken extensive marketing and promotional campaigns in endeavors to popularize their products. The pricing strategy by the two companies is outstanding in that, they have done a great deal to reduce prices. In this case, the consumers earning less than $ 2.50 a day have been the main target. This phenomenon has been of great importance in ensuring that the companies are able to efficiently compete in the market. Based on this scenario, P&G has faced it tough in that most of its products have found it had to sail through the market. This is in relation to the fact that P&G’s products are highly priced, thus making them unaffordable among the low income earners (TheJakartaPost, 2011). A point worth of consideration is that Indonesia is a populous country, whereby majority of the population earn less than $ 2.5 a day.
The major products of proctor & Gamble in Indonesia include Ivory-soap, Crest- toothpaste and tooth brushes, Gillette/Venus, Disposable razors and Pantene-Shampoo and conditioner. In this case, the products of Uniliver, Johnson & Johnson, and Kimberly-Clark pose stiff competition to those of P& G. to begin with, Ivory-soap of P&G faces stiff competition from Lifebuoy brand of Uniliver. In this case, the two products are closely related in that they are domestic soaps and serve the same purpose (Brussels, 2011). The most outstanding feature of lifebuoy in relation to Ivory-soap is that it is very affordable. In this case, uniliver has efficiently adopted the pricing strategy thus being able to target the population earning less than 2.50 a day. On the other hand, the product design of uniliver has also been overwhelming. In this case, Lifebuoy comes in liquid and bars hand washes, which are appealing to consumers. P&G’s Zest is also receiving significant competition from Dove from Uniliver (Hoyer and Macinnis, 2009). Despite that the two products have similar characteristics, the Dove from uniliver has lower price thus making it affordable to a wider population.
The concept of positioning and market segmentation has also been adequately adopted by uniliver. This is evident through the beauty soap, Lux which has been specifically targeted for the women. The Lux beauty soap and the lifebuoy are targeted for the poor segment of the market, which in this case comprises the majority of the population. Based on this phenomenon, there is every need for P&G to adopt the most efficient marketing strategies that will help in countering the products of its opponents. The concept of pricing is most significant in the competitive Indonesian market, whereby majority of the population earn less than $ 2.50 a day. On the other hand, product brand should also be reviewed so as to ensure adequate positioning of P&G products. By so doing, P&G will be able to sail through the tremendous competition in Indonesia (TheJakartaPost, 2011).