The business world is ever-changing, and companies must always be flexible to these changes. One of the changes that a business might need to adapt to is an expanding target market. P&G currently sells personal care products to a market that is comprised primarily of women. However, research shows that there is a growing market among male consumers due to the rise of male grooming. P&G should restructure to take advantage of the new market for men’s care products.
P&G will need to make several changes to capitalize on the “ignored” market. The restructuring will affect various departments such as research and development, product design, and sales and marketing. Their redesign will affect their employee recruitment and selection practices (Szymczyk, 2016). For instance, currently, most employees that deal with skin and hair care products, cosmetics, and fragrances are female. This is because the target market is mostly women, which means that the products are probably developed, designed, and marketed by women. To attract a new target audience of men, the company will need to hire more male employees (Nadube & Didia, 2018). Male consumers will be more satisfied with male-only personal care products. These products are best developed by people who are male themselves and understand what other men would want. The research and development, product design, and sales and marketing departments must comprise more male employees.
The main contextual variable that led to P&G’s restructuring was the changes in the target market as revealed by a study. The study was conducted by Male Grooming Trends: Profiting in 2009 and Beyond. It showed that although female consumers dominated the market for personal grooming products, the market for male consumers was quickly expanding. P&G saw an opportunity to profit from an expanding market. Therefore, redesigning was necessitated by changes in the market characteristics.
Several companies have restructured to capitalize on a larger target market. Examples include Harley Davidson Motorcycles, NFL, and Stryx. Traditionally, the demographic market for motorcycles was older white men. However, following a decrease in motorcycle sales, Harley Davidson started targeting female customers (Moreno, 2017). They customized their bikes to women’s needs and found creative ways to market these bikes to women. Second, the National Football League discovered in a study that women comprised over 40% of their viewership (Townes, 2019). They then expanded their target market beyond the usual male customers and started to make merchandise for women. Finally, Stryx is a company that has capitalized on the growing market for male makeup products. The companies mentioned have been widely successful in expanding their markets. Other companies should also capitalize on their expanding target market. For instance, traditionally male-dominated gyms should consider opening women-only gyms. Although women are now exercising just as much as men, there are not enough gyms for them. Overall, companies should be quick to adapt to changes in the market.
In conclusion, companies should keep up-to-date with any changes in the market. All industries are constantly evolving, and it would be unwise for businesses to stick to old ways. In the given case study, P&G has the potential to generate profit from a new market for personal care products. It will need to redesign its recruitment practices to exploit this opportunity. Restructuring for a new reality can be a profitable venture if done correctly as shown by Harley Davidson, NFL, and Stryx.
References
Moreno, I. (2017). Amid sales drop, Harley-Davidson wants to teach more women to ride. Chicago Tribune. Web.
Nadube, P. M., & Didia, J. U. D. (2018). Market targeting and strategic positioning. International Journal of Marketing Research and Management, 8(1), 32-45.
Szymczyk, K. (2016). The impact of restructuring strategies on the functioning of the organization. Contemporary Issues of Enterprise Management in Poland and Hungary.
Townes, C. (2019). Women impact the bottom line of the sports world in major ways. Forbes. Web.