Strategic Marketing Defining a Marketing

Strategic Marketing

Defining a Marketing Strategy for Facelle Divisions Brands

In the Canadian Market

Proctor & Gamble (P&G) is the global leader in the manufacturing and marketing of paper products including the diaper market, which it also has the majority of global market share due to the success of its Pampers product line. The $185M acquisition in 1991 has failed to deliver on the potential P&G initially believed it had for growing their share of the Canadian tissue, towel and facial tissue market. Caught in the middle of a price war and competing the majority of the time with commoditized products, Facelle is quickly losing altitude in the Canadian market (Deutscher, 2003). Facelle is a unique challenge for P&G, as they are accustomed to market leadership through innovation and market share growth based on product superiority (Brunner, 2001). Examples of this strategy in the tissue, towel and facial tissue market include Charmin, Bounty and Puffs product lines.

Analysis and Recommendations

At the center of the marketing and positioning problems for the Facelle product line is the lack of consistency in product positioning, quality, pricing and market focus. In short, the entire marketing mix must be-done to successfully launch Facelle into the Canadian market. Left unchecked and with no change in marketing strategy, Facelle will spiral in sales and profits.

Beginning with price, P&G Canada needs to begin testing and eventually launch Facelle at a higher price point than it is today. There are two observations that support this strategy. First, in inelastic markets where price does not influence quantity and only degrades the image of a brand when dropped, P&G needs to define a high price/quality relationship position and stay committed to it (Jacobs, Ratliff, Smith, 2010). A strong price/quality relationship can assist in redefining the market position of the brand. Studies indicate consumers are willing to pay a price premium for green or eco-friendly products (Essoussi, Linton, 2010).

Second, consumer data and research shows that Facelle is perceived as higher quality than the majority of competitors and more biodegrable. As a result, P&G can further substantiate a price increase and re-branding of Facelle as an eco-friendly brand. P&G has very strong technical expertise, can provide labels on the redesigned packaging of Facelle showing how it excels in biodegradability, and is good for the environment. Millennial consumers thrive on sustainability and eco-friendly labeling as well and this will increase sales in this segment (Furlow, Knott, 2009). P&G will need to be careful to not over-state the sustainability of eco-friendly nature of the brand or it could potentially lose credibility as well (Furlow, 2010). It will need to strive for honesty and truthfulness in this market position. In terms of distribution, P&G needs to get Facelle out of the stores where it is competing with generic brands and focus on higher value grocery chains and retailers.