P&G and the Growing Market of Men
Hi! We are Cassandra and Juanita, we currently work at the Biltmore Hotel and while working together we have realized there is something missing in the market for men.
We have noticed that the male grooming market has been growing drastically in the past few years, and it is a good opportunity for P&G to take advantage from this booming market.
Click on the pictures below to see what the experts are saying!
Where P&G Stands Now
The Next Step...
Counterfeit Goods:
The spread of counterfeit goods has now become global. This means that P&G has a higher possibility of infringement. Now that internet usage is high, customers are constantly looking for lower prices, which leads to the purchase of counterfeit goods. This is not only a big hit with revenue loss, but it also affects the brand name.
Heavy Dependence on Few Customers:
P&G relies heavily on few of its customers causing them to depend on them. Wal-Mart Stores and its affiliates bring in a entire 14% of P&G's total revenue. This causes P&G to have less bargaining power.
Lack of Products for Men:
Even though Procter and Gamble has an extensive portfolio of products for beauty, hair and personal care; the majority of their products are targeted to women.
Male Grooming Market:
In the past few years, grooming products for men have increased dramatically. Today, men are buying more grooming products like, hair serums and exfoliating scrubs. Although Procter & Gamble offers male grooming products like, shaving blades, razors, pre- and post-shave products; there is a big opportunity for P&G to grow and expand in the male grooming market.
Reduce Costs and Increase Productivity:
Even though Procter & Gamble is upgrading its distribution network and improving the marketing channel strategies, there is still an opportunity for P&G to consolidate more distribution centers and place them in strategically locations. By doing this, P&G can reduce costs and still increase productivity because the distribution centers can be in key locations that are closer to its customers.
Procter & Gamble has a dominant market position due to its extensive portfolio and its leadership position worldwide. P&G sells its products in more than 180 countries and it generated $65,299 million in 2016. On the contrary, Unilever P.L.C. generated $55,467 million in 2016.
Additionally, Procter & Gamble’s success can be attributed to the success of its brands. The majority of these brands are market leaders in the most important consumer goods categories. For example, Bounty and Charmin, both owned by P&G, have a market share of 70% in the US market. Also, Olay is the top facial skin care brand worldwide with an 8% global market share.
We recommend that P&G taps the booming male grooming market and extends its product lines for men.
Some products that men want to have available to them are the following:
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Masks
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Scrubs
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Serums
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Moisturizers
