Professional Certificate in Marketing (Level 4) 521 – Assessing the Marketing Environment Case Study June 2015 and September 2015 Men’s Toiletries, with a focus on Procter and Gamble © The Chartered Institute of Marketing 2015 Page 2 Assessing the Marketing Environment – Case Study Guidance notes for candidates regarding the prepared analysis The examination is designed to assess knowledge and understanding of the Assessing the Marketing Environment syllabus in the context of the relevant case study. The examiners will be marking candidates’ scripts on the basis of the tasks set. Candidates are advised to pay particular attention to the mark allocation on the examination paper and plan their time accordingly. Candidates should familiarise themselves thoroughly with the case study and be prepared to follow closely the instructions given to them on the examination day. Candidates are advised not to waste valuable time collecting unnecessary data. Case studies are based upon real- life situations and all the information about the chosen organisation is contained within the case study. No useful purpose will be served by contacting companies in the industry and candidates are strictly instructed not to do so, as it may cause unnecessary confusion. As in real life, anomalies may be found in the information provided within this case study. Please state any assumptions, where necessary, when answering tasks. The Chartered Institute of Marketing is not in a position to answer queries on case study data. Candidates are tested on their overall understanding of the case study and its key issues, not on minor details. As part of the preparation for the examination, candidates will need to carry out a detailed analysis of the case study material ahead of the examination. Candidates will find that the time available during the examination is sufficient to answer all the tasks, but only if detailed analysis has been undertaken beforehand. When compiling their analyses, candidates should only use the information found within the case study, supported by their knowledge and understanding of the syllabus. The copying of pre-prepared ‘group’ answers, including those written by consultants/tutors, or by any third party, is strictly forbidden and will be penalised by failure. The tasks will demand analysis in the examination itself and individually composed answers are required in order to pass. Candidates will then need to condense their analysis into both a PESTEL and SWOT analysis (a maximum of FOUR sides of A4, no smaller than font size 11. No other models should be included in these analyses. The content of tables, models or diagrams must be in a minimum of font size 8). The analyses should be numbered for ease of reference when answering the examination tasks. Candidates must hole-punch and staple their analysis in the top left hand corner. They must write their CIM membership number and examination centre name on the top of the right hand corner of each page of the analysis. It should then be attached to the answer book on completion of their examination, using the treasury tag provided. Although no marks are awarded for the analysis itself, candidates will be awarded marks for how the analysis is used to answer the tasks set. Candidates are advised not to repeat or copy the analysis summary when answering the tasks. It is important that candidates refer the examiner to the analysis summary, where and when appropriate, when answering the tasks. Page 3 Candidates are NOT PERMITTED to take in the downloaded case study or any other notes. Candidates are only permitted to take their analysis into the examination room. The invigilator will issue candidates with a clean copy of the case study and the examination paper. Candidates may not attach any additional information to their answer book. Any attempt to introduce such additional material will result in the candidate’s answer book being declared null and void. The Chartered Institute of Marketing reserves the right not to mark any submission that does not comply with these guidelines. Important Notice The following data has been based on real-life organisations, but details have been changed for assessment purposes and do not necessarily reflect current management practices of the industries or the views and opinions of The Chartered Institute of Marketing. Figures used in tables may differ as they have been compiled from different sources, using a range of criteria. Candidates are strictly instructed NOT to contact individuals or organisations mentioned in the case study or any other organisations in the industry. Copies of the case study can be downloaded from the CIM student website www.cimlearningzone.co.uk. © The Chartered Institute of Marketing 2015. All rights reserved. This assessment, in full or in part, cannot be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of The Chartered Institute of Marketing. Page 4 ASSESSING THE MARKETING ENVIRONMENT CASE STUDY Preparation In preparation for the examination you will need to analyse the Men’s Toiletries case study material provided. You will be given a clean copy of the case study on the day of the examination, but you MUST bring your analysis with you. Your written analysis MUST NOT exceed FOUR A4 sides and MUST include your CIM membership number on each page. The written analysis MUST be submitted as an appendix on completion of the examination and attached with a treasury tag to your answer book. Page 5 Men’s Toiletries, with a focus on Procter and Gamble The Company Legal form Procter and Gamble (P&G) is an American multinational consumer goods and healthcare products company, based in Cincinnati, Ohio, in the United States. It is one of the largest consumer goods companies in the world. Founded in 1837, it now owns more than 300 brands, which are sold in over 180 countries across the world. Well-known brands available in the UK include Gillette, Old Spice and Head & Shoulders. P&G is a public limited company listed on the New York Stock Exchange. In 2012, P&G recorded US$ 83.68 billion in sales. Fortune magazine awarded P&G the top spot on its list of ‘Global Top Companies for Leaders’, and ranked the company at fifteenth place on the ‘World's Most Admired Companies’ list. As of July 1, 2011, P&G structured itself into two ’Global Business Units’ – Beauty and Grooming, and Household Care. 26 of P&G's brands have more than US$ 1 billion in net annual sales, according to its 2011 Annual Report. Four of these – Gillette, Head & Shoulders, Olay and Wella – are in the Men’s Toiletries sector. Brief history and key features William Procter, a candle-maker, and James Gamble, a soap-maker, emigrated from England and Ireland respectively. They settled in Cincinnati initially and met when they married sisters. Their father-in-law persuaded his new sons-in-law to become business partners and, on October 31, 1837, as a result of the suggestion, Procter and Gamble was created. During the American Civil War, the company won contracts to supply the Union Army with soap and candles. P&G began a profit-sharing programme for the company's workforce in 1887. By giving the workers a stake in the company, the management correctly assumed that they would be less likely to go on strike. The company expanded and built factories across the United States. P&G also began to diversify its products and advertise more widely: as radio became more popular in the 1920s and 1930s, the company sponsored a number of programmes which, as a result, often became known as ‘soap operas’. The company moved into other countries, including the UK in 1930, and introduced numerous new products and brand names over time. The company introduced Tide laundry detergent in 1946 and Prell shampoo in 1947. In 1955, Procter and Gamble began selling the first toothpaste to contain fluoride, known as Crest. Procter and Gamble acquired a number of other companies that diversified its product line and significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's Old Spice, Max Factor, and the Iams Company, among others. In January 2005, P&G announced the acquisition of Gillette, forming the largest consumer goods company and pushing Unilever into second place. This added brands such as Gillette razors, Duracell, Braun, and Oral-B. In 2008, P&G branched out into the record business with its sponsorship of Tag Records, as an endorsement for TAG Body Spray. Page 6 P&G exited the food business in 2012 when it sold its Pringles snack food business to Kellogg's for US$ 2.75 billion, after the US$ 2.35 billion deal with former suitor Diamond Foods fell short. The company had previously sold Jif peanut butter and Folgers coffee in separate transactions to Smucker's. P&G’s stated strategic purpose, according to its Annual Report and Accounts, is to: ‘provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.’ P&G’s Health and Beauty division saw its UK operating profit decline by more than 65% from £79.4 million in 2011 to £27.1 million in 2012. According to the company’s Annual Report for 2012, this was due to weaker growth in developed markets, increased competition and weaker consumer demand.