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Strategic Analysis
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Procter & Gamble:
The Beauty/Feminine Care Segment of the
Consumer Goods Industry
Executive Summary 3 Introduction 3 Company Overview 4 Mandate 4 Stakeholders 5 Internal Analysis 5 External Analysis 7 Competitive Forces 8 Macro Environment 8 Strategic Options 10 Strategy 1: Market Penetration 10 Strategy 2: Product Innovation and New Product Development 10 Strategy 3: Status Quo 11
Executive Summary
Procter & Gamble (P&G) is a world-leading producer of consumer goods. Today, it consists of over 20 million dollar brands (like Gillette) and operates in 42 countries
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Mandate
P&G’s purpose is to touch and improve people’s everyday lives. This is an inspiring but demanding aspiration. There are nearly seven billion people on the planet today and P&G is currently reaching about 4.4 billion of them. The company knows that if this is done well, it will be rewarded with sales and profit growth, market share leadership, a strong company reputation and, ultimately, the creation of value that allows its people, shareholders and the communities in which they live and work to prosper.
P&G’s growth strategy, which was established two years ago, is inspired by its purpose detailed above. P&G is executing this strategy by innovating to improve people’s everyday lives in every part of the world, and by then expanding its portfolio of innovation up and down price tiers, into new markets, and into new and existing product categories (P&G, 2011).
Stakeholders
Like any private sector organization, P&G’s list of stakeholders may include its employees, the communities in which it operates, its shareholders, various suppliers, and of course its consumers and customers.
Internal Analysis
Strengths
As a large global company, P&G has strengths that have helped them to acquire such a vast market share. The company’s culture, strong product quality, the ability to understand customers, brand equity, and centralized management is at the
Procter and Gamble Co. also know as P&G, is an American multinational consumer goods company, founded by William Procter and James Gamble. Its products include cleaning agents and personal care products. It has in its kitty global brands such as Ariel and Tide in the Fabric care segments and Head & Shoulder, Pantene and Rejoice is the Hair care segment. For this case study selects P&G Company as it has an important role in the consumer segment products. As P&G was a popular company, the financials statement shows better performance in the previous year.
Fortune magazine awarded P&G a top spot on its list of "Global Top Companies for Leaders", and ranked the company at fifteenth place of the "World 's Most Admired Companies" list.
P&G success was contributed to the heart of its business model – Innovation; and that is not just for newly invented product or service, it was for the goal of recreating needs for the improvement of consumers’ living. And it is a very long culture started where the roots started from the founders; whom are soap and candles makers. The first innovative product – Ivory; started in 1879, by James Norris Gamble who is the son of the founder and a trained chemist. Ivory at then was an
Procter & Gamble (P&G) is a Fortune 500 American multinational company, and a world 's leading consumer goods company. P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G now has 50 Leadership Brands, which are among the world 's best known and which account for more than 90% of P&G sales. P&G entered the Chinese market through a joint venture in 1988. Now, P&G is the most successful foreign marketer in China as measured by market share.
Proctor and Gamble-Scope is faced with a very important decision, they need to prepare a marketing plan for P&G’s mouthwash business for the next three years. They want to know how they are going to be able to
Despite the inconsistent changes in spending from year to year, P&G’s market share consistently increased between 1% and 2% every twelve months (see Figure 1). The question is, with Unilever’s actions in regards to marketing expenditures, is the 15% increase going to be enough to restart P&G’s upward growth of market share?
The Procter & Gamble business strategy is to focus on creating new brands and categories so the company can focus on being the best in branding, innovation and scale. This is what sets this company apart from many of its competitors. The Proctor and Gamble are the global leader in all of their core businesses within the company which consists of laundry, baby care, hair care and feminine protection. This report is designed to understand the company’s business model and strategies, and analysis how the P&G has formulated its business-level strategies to pursue its business model.
P&G need to work hard and do more research and development in order to produce higher quality, more innovative, and more unique in products in order to answer consumer’s need and compete with those major world brand competitors.
Our purpose? Simply, to make it easier for you to express your personal style throughout your life. We have more than 150,000 passionate, talented people around the world who help bring this purpose to life for our customers. Across our company and embedded in our culture our key values that guide our success: integrity, respect, open-mindedness, quality and balance. Everyday, we honor these values and exemplify our belief in doing our business in a socially responsible way (gapinc.com).
Procter & Gamble’s mission and vision statement is profoundly stated within what the company refers to as their statement of purpose. The statement defines the company’s current and future direction, including their shared image in producing quality products that commit to the well-being of all individuals and communities alike. For nearly the last two decades, P&G has been establishing themselves in various marketplaces around the world, and expanding their product mix in accordance to consumer tastes. However, as the consumer goods industry continues to evolve, so do changes within P&G’s organizational structure, including the need to divest or cease many of the company’s brands to reduce costs and improve operational efficiency.
P&G is a large multinational corporation from United States which deals in consumer goods. It has its head quarter in Cincinnati, Ohio. William Procter and James Gamble are the founders of this multinational corporation. William Proctor was a candle-maker and James Gamble was soap-maker. They were married to two sisters and their father-in-law helped them establish this business. In 1837, P&G was born. During fiscal year 1858-59, company was able to achieve the milestone of $1 million with the help of just around 80 employees. Most of the success of the company was based on the innovative products. Currently, company has more than 180 brands but it is currently focusing on just 80 major brands which earn about 95% revenue for the company. In 2014, company reported $83.1 billion revenue in 2014 and it is recognized to be leading global company through consistent performance of most of its brands (Procter and Gamble, 2015).
The purpose of P&G is to improve the lives of the consumer from various parts of the world and provide superior quality of services and products and value. In return they intend to receive consumer reward with leadership value creation, sales and profit by considering their shareholders, customers and
Procter & Gamble is one of the most successful consumer goods companies in the world. There are many brand names found under the name of P&G INC . Scope, a mouth-wash brand, is a part of P&G. Scope was introduced as part of oral hygiene industry in the year 1967, in Canada. Scope had the highest market growth in Canada.
This market is a well established market and P&G would have competition from existing companies and businesses since they include similar resources and advertising techniques. The competing companies and firms produce similar products and as such new ideas and innovation is necessary for the survival of P&G.
Proctor and Gamble is serving customers in over 180 countries with their massive market capitalization. They have a purpose to live up to for their consumers in all of those 180 countries. They provide services and branded products that are of superior quality and great value which will improve the consumers’ lives in the world now and forever. As stated on their website, “Our purpose works to unify us in a common cause and growth strategy. It is powerful because it promotes a simple idea to improve the lives of the world’s consumers every day. P$G grows by touching and improving more consumers’ lives in more parts of the world…more