P&G Marketing Strategy for Candles
| Marketing Project | Procter and Gamble | | | 10/22/2011 |
Abstract
The following marketing analysis on Procter and Gamble will be drilled down into the Home and Fabric care division more specifically on the febreze glass candles. The analysis will use all of the candle industry researched information that was available. If the pertinent information was not found, the overall company information will be used.
Current Situation Analysis
External Environment
Industry Overview
Procter and Gamble started in the candle industry in early 2006 with the Febreze candle line taking the scent that was chemically formulated to reduce odor and leave a fresh scent. This innovative scent transcended into the candle industry allowing Procter and Gamble to grow the market by $50,000,000 in 2007. Over the past 4 years, economic conditions have hit the candle industry hard since candles are considered discretionary spending. The overall market has decreased 4-6% on average over that time period. The industry is expected to decline over $400,000,000 in the next 5 years. The candle industry has over 13 major players which comprise 63% of the market. Smaller companies make up the remaining 37%. There are 189 candle manufacturers in the U.S. Procter and Gamble has 4% of the current market share compared to SC Johnson’s 17% claim. The industry has a lot of competition for market share and will continue to be that way with the reduction of the market size.
Prices are in millions of USD – source Anchor Hocking
Porter’s Five Force Analysis
Buying Power
Consumer – consumer buying power is relatively weak due to the diversity of products in the marketplace and fragmented demographics. Consumers are not concentrated enough to drive prices positive or negative. WEAK FORCE Retail – Retailers such as Wal-Mart and Target have a tremendous amount of buying power and demand lower prices. These retailers carry a wide variety of candles and price is the
Abstract
The following marketing analysis on Procter and Gamble will be drilled down into the Home and Fabric care division more specifically on the febreze glass candles. The analysis will use all of the candle industry researched information that was available. If the pertinent information was not found, the overall company information will be used.
Current Situation Analysis
External Environment
Industry Overview
Procter and Gamble started in the candle industry in early 2006 with the Febreze candle line taking the scent that was chemically formulated to reduce odor and leave a fresh scent. This innovative scent transcended into the candle industry allowing Procter and Gamble to grow the market by $50,000,000 in 2007. Over the past 4 years, economic conditions have hit the candle industry hard since candles are considered discretionary spending. The overall market has decreased 4-6% on average over that time period. The industry is expected to decline over $400,000,000 in the next 5 years. The candle industry has over 13 major players which comprise 63% of the market. Smaller companies make up the remaining 37%. There are 189 candle manufacturers in the U.S. Procter and Gamble has 4% of the current market share compared to SC Johnson’s 17% claim. The industry has a lot of competition for market share and will continue to be that way with the reduction of the market size.
Prices are in millions of USD – source Anchor Hocking
Porter’s Five Force Analysis
Buying Power
Consumer – consumer buying power is relatively weak due to the diversity of products in the marketplace and fragmented demographics. Consumers are not concentrated enough to drive prices positive or negative. WEAK FORCE Retail – Retailers such as Wal-Mart and Target have a tremendous amount of buying power and demand lower prices. These retailers carry a wide variety of candles and price is the