Procter and Gamble case Analysis

The intense competition in particular market drives businesses to evaluate their

policies and effectiveness regularly. Each company has its own business characteristic, which
certain policy is suitable fit for a company while others could be unacceptable. Several
conditions that prompt the differentiation treatment among different company are nature of
the business, workers learning and development mentality, top level manager vision,
dynamics market condition, and competitor business strategy, to name a few.
From investors or outsiders point of view, financial performance of a company is
noteworthy since they aim at investing their money to the company by buying a number of
shares from stock market. Under such circumstances, the investors would assess in much
details regarding the corporate current performance and possible future states. In other terms,
investors need to examine the business risks of the company in order to save their investment.
The assessment of business risks is also challenging since different business types
imply a significant different treatment of strategic business control and evaluation. For
example, a firm that produces sheets of paper has relatively stable, functional skills are
specialized to gain operating efficiencies. There are relatively no strict challenge from the
same competitor, because the market share are divided equally, as long as they keep the
productions quality and maintain the cheapest cost of production.
In contrast, firms in electronic industry like Nokia and Apple Inc, which produce
mobile-phones and other portable electronic products; they face a fiercer challenge since the
business environment changes rapidly, which in turn, forces the firm to find an effective
business strategy that can improve their cost-efficiencies with the same quality product. The
situation also occurs in the fast moving consumer goods where a number of brands continue
appear in order to offer attractive products to consumers.
Regardless of whether the environment is stable or dynamic, an organization needs to
exercise control over its operations so that its objectives are achieved as preliminary business
planning and as part of managing business risks.

-Nature of the industry :Analysis with respect to industry and consumer behavior. (facts about
industry)

-The Procter & Gamble Company (P&G) boasts boatloads of brands. The world's top maker
of household products courts market share and billion-dollar names. It's divided into three
global units: household care, beauty and grooming, and health and well-being. The firm also
makes pet food and water filters and produces a soap opera. Two dozen of P&G's brands are
billion-dollar sellers, including Febreze, Fusion, Always, Braun, Bounty, Charmin, Crest,
Downy/Lenor, Gillette,Iams, Olay, Pampers, Pantene, Tide, and Wella, among others. P&G
shed its coffee in 2008 and it's selling Pringles. Being the acquisitive type, with Clairol and
Wella as notable conquests, P&G's biggest buy in company history was Gillette in 2005.
Principal Operating Units:
-Global Beauty Care; Global Health, Baby, and Family Care; Global Household Care.
Principal Competitors:
-Unilever; Johnson & Johnson; Kimberly-Clark Corporation; Sara Lee Corporation; Kraft
Foods Inc.; L'Oreal SA; Colgate-Palmolive Company.

-P&G has extensive experience in the understanding of consumer behaviour and interaction
with fast moving consumer goods both based on large base quantitative assessments of
products and qualitative 1-on-1 consumer interactions. The product research department
identifies new product opportunities based on societal and product trends to develop concrete
product opportunities from ideas, through concept and final prototyping. The department has
members across the technical centres around Europe and in different businesses. They are
linked in with rapid prototyping organizations and multi-functional commercial teams. The
consumer understanding knowledge covers both psychology knowledge and industrial design
aspects.
-Consumer understanding knowledge is based on practical understanding market drivers,
societal trends and market analysis. It involves practical tools of consumer focus group

settings and advanced human psychological, anthropological and behavioural science based
approaches. In addition new monitoring technologies could achieve superior quantification of
this capability.
The organization: SWOT analysis

POSITIVE

NEGATIVE

STRENGHTS

WEAKNESSES

-Strong focus on research and

development

-Not enough make a distribution channel.

-Lack of canning or packaging.

EXTERNAL FACTORS

INTERNAL FACTORS

-Leading market position

-Undifferentiated products or services with
other competitor

-Strong brand portfolio

-High-quality product,
processes and procedures.

quality

-Have a first rating in mouthwash

market share.
OPPORTUNITIES

THREATS

-Brand which it concentrate for a

healthy oral.

-Too many competitors in this industry.

-Price wars with other competitors.

-Move into new market segment

that offer improves profit.
-A developing market such as in
the Internet.
-Future growth plans
-Expansion in developing markets

-Not patentable, competitor can attempt to

duplicate a product
-Global economic conditions

Strengths
The large scale, on which the P & G operates, is one of its strengths. It is a global leader for
different product categories like fabric, home, baby, beauty, health and personal care in many
countries. The company markets its brands in more than 140 coutries.
The strong branding of P & G makes it one of the most successful brands in the world.
The company has a vast experience in oral and personal hygiene products
Also, it has an extensive experience in marketing in different market segments and is one of
the best marketers in the world.
The company is able to customize its global products and brands according to the local
preferences.

Weaknesses
The beauty and health products by P & G are mostly for women.
P & G does not make and offer any private label products for the retail customers and is,
missing an opportunity.
The large scale operation of the company makes the culture heavy and processes slow. This
also leads to quality control problems.
Price wars with .

Opportunities
An opportunity for P & G is health and beauty products for men.
P & G has doubled its Environmental Goals for the year 2012 and thus, promises more value
for the environment concerned customers today.

 Using the online social networks and internet marketing techniques is also an opportunity
for P & G.
Company is constantly trying to pursue growth overseas.

Threats
The competitors are making their product portfolios diverse day by day and using different
marketing and promotional strategies to increase their market share.
In the market many substitutes are available for P & G products at cheaper prices.
The private label growth is also a serious threat to the P & Gs market share.
Too many competitors in this industry and price war with them.
Potential outcomes

Since the company has the mission to provide branded products and services of superior
quality and value that improve the lives of the worlds consumers. Therefore, the company
should develop branding strategies to position their products as ones have high perceived
quality.In addition, since market values acquisitions that Procter & Gamble performs, in the
future, the company may conduct other mergers and acquisition that will strengthen the
corporate brand image as the provider of home and personal care products.