Buyer Behaviour and Market Research - Proctor and Gamble



Buyer Behaviour and Market Research - Proctor and Gamble

Introduction

This paper begins by introduced the reader to one of the most successful conglomerates in the world today, Procter and Gamble. The paper provides the reader with a brief history of the organization and discusses the marketing strategies and market position of Proctor and Gamble. The paper conducts an external analysis of the business with a PESTEL analysis and highlights the major strengths and weaknesses of Proctor and Gamble. The paper also conducts an internal analysis of the business with the aid of the Porter's Five Forces analysis tool. This provides the reader with a comprehensive review of the various internal and external factors that affect the business.

Discussion

In order to be a success in the market, every organization needs to assess its potential customers as well as the market within which it operates. It is the decision processes and acts of people that are involved in using and buying the products, which is an important and integral part of formulating marketing strategies. However, apart from assessing the consumer buying behaviour, the organization also needs to conduct a comprehensive market analysis for the purpose of creating, increasing and maintaining a market share (Swasy, 1994).

Company history

Procter and Gamble was formed in the year 1837 by co-founders William Procter, an English candle-maker and James Gamble, an Irish soap-maker. After becoming family, the two agreed to a joint venture and founded Procter and Gamble. Starting off as a business that sold soaps and candles in the area of Ohio, the company rapidly gained popularity and success. Today, Procter and Gamble is among the most widely-recognized and popular conglomerates in the world. It manufactures more than 81 different branded consumer packaged products and household based items that it sells to markets in more than 180 countries spread across six continents (Tung, 2001).

Market Research Approach

Market research can be conducted with one of the two research methods: Qualitative Approach or Quantitative Approach. However, a research in marketing largely depends on qualitative research due to the fact that most of the data being collected is in the form of thoughts, ideas, opinions and attitudes of customers (Collis & Hussey, 2009).

External Analysis of Business

The external analysis of Procter and Gamble encompasses the general and industry environment, both of which are critical to the long-term sustainability and survival of the business. The PESTLE analysis and the Porter 5 forces analysis provide a good insight into the market condition of the business operations of Proctor and Gamble.

PESTLE

A PESTEL analysis is ideal for highlighting the various external factors present within the general business environment that have a tendency of influencing the business. The key considerations that the PESTEL analysis is comprised of are detailed below:

Political

The P&G PAC (Procter and Gamble Political Action Committee) is a voluntary and fair political action committee that is registered with the FEC (Federal Election Commission) and relevant state offices. The operations of P&G PAC comply with the law and are ...