Leyre Albizu, Teresa García,

Amaia García and Nerea Riesgo

TEAM 1-CASE 3: P&G

I. INTRODUCTION
This case study focuses on Procter & Gamble (P&G) and its strategic approach to developing
long-lasting relationships with retail clients. P&G is the largest producer of household and
personal products worldwide, reaching over 4 billion people. The company employs a
Customer Business Development (CBD) approach, assigning a dedicated team of specialists
to each large customer account.

II. ANALYSIS
G&P has a CBD strategy to build relationships with major retailers like Walmart and
Walgreens. Dedicated teams, including managers and specialists, handle each account to
provide comprehensive solutions to complex customer problems. The strategy aims to achieve
four objectives: aligning strategy, developing customer business, optimizing business, and
creating a competitive advantage. Aligning strategies with retail customers creates
opportunities for mutual benefit. Optimizing business resources allows for the effective
management of significant accounts. A competitive advantage is gained, surpassing
competitors and maintaining strong customer relationships.

III. QUESTIONS
Compare and contrast the nature of the business market structure and demand relative to
consumer market structure and demand for a specific P&G product.

Procter & Gamble (P&G) is a multinational consumer goods corporation that produces a wide
range of products for both business-to-business (B2B) and business-to-consumer (B2C)
markets. Let us compare and contrast the nature of both types of market structures for a
specific P&G product, Crest toothpaste.

The business market for Crest toothpaste includes dental offices, hospitals, and healthcare
facilities and is oligopolistic with few dominant players. The need for effective cavity
prevention and oral hygiene drives the demand. The consumer market is larger and more
competitive, with many brands vying for consumer loyalty, and the demand is influenced by
brand recognition, product efficacy, and price.

For the same product, discuss the differences in the types of decisions and the decision
process for business and consumer markets.

In the business market, purchasing decisions are typically made by a select group of
professionals, such as dental practitioners or hospital administrators, who assess the
effectiveness of the toothpaste for their patients. When purchasing, these professionals may
consider factors such as the toothpaste's ingredients, cost, and availability. In addition, the
decision-making process in the business market tends to be more formalized, with more
stringent requirements for quality control, testing, and certification.

In contrast, purchasing decisions in the consumer market are made by individuals, often
influenced by various factors, such as brand loyalty, product packaging, price, and
promotions. When choosing toothpaste, consumers may also consider factors such as taste,
texture, and other sensory experiences. The decision-making process in the consumer market
 Leyre Albizu, Teresa García,
Amaia García and Nerea Riesgo

tends to be more subjective and emotionally driven, with personal preferences and habits
playing a significant role in the final purchase decision.

This case covers the various members of a P&G Customer Business Development team. For a
P&G corporate client, illustrate how the different roles of the buying center might interact
with that CBD team. Be specific.

The executive will make the final decisions and work closely with the CBD team manager,
finance specialist, and marketing strategy specialist to understand the product categories,
financial implications, and impact on the marketing strategy.

The marketing strategy specialist collaborates with company executives to understand

marketing goals and works with product development specialists to ensure that products
meet consumers’ needs. They work closely with operations, logistics, and information
systems specialists to ensure efficient product delivery.

The product development specialist creates or modifies products that meet the consumers’
needs. They work with the marketing strategy specialist and collaborate with operations,
logistics, and information systems specialists to ensure efficient and effective manufacturing
and delivery of products.

The operations specialist works with account executives to understand production and
delivery requirements and collaborates with P&G's operations team to ensure efficient
manufacturing and delivery. They also work with logistics specialists to determine the most
effective supply chain strategy.

The information systems specialist will work with operations and logistics specialists to
ensure that systems support the delivery of P&G products. They will also work with the
finance specialist to ensure financial systems support the purchase.

The logistics specialist will work with account executives to determine the most effective
supply chain strategy and collaborate with the operations specialist to ensure efficient
delivery. They will work with the information systems specialist to secure the support
delivery of products.

The finance specialist will collaborate with the executive to understand the financial
implications and determine the most cost-effective solution for the company. They will also
work with the information systems specialist to ensure financial systems support the purchase.

Discuss some ways that P&G’s CBD structure is more effective than a single sales rep.

The CBD team structure offers three key advantages over a single salesperson:
1. P&G works as a strategic partner with those who sell its products rather than just being seen
as a supplier, which allows for enduring relationships with large retail clients that benefit
both.
2. The CBD team enables the effective handling of large and complex businesses because it
ensures that salespeople have all the resources they need to resolve even the most challenging
customer problems.
3. Effective collaboration is possible as each team member represents the entire team when
interacting with customers.
 Leyre Albizu, Teresa García,
Amaia García and Nerea Riesgo

Why have P&G’s competitors not been able to duplicate its customer relationship strategy?

Procter & Gamble's customer relationship strategy is difficult for competitors to replicate due
to its unique and comprehensive CBD structure. The structure is designed to achieve four key
objectives: the aligned strategy, which focuses on collaboration between P&G and its
customers in strategy development; the objective to create demand aims to build profitable
sales volume through consumer value and shopper satisfaction; the optimizing the supply
chain, which is another critical objective that maximizes efficiency, reduces costs, and
improves responsiveness; and the aim to enable the organization to develop capabilities that
facilitate frequent breakthroughs and maximize business results.

Will P&G’s divestment of 100 brands pay off? Why or why not?

P&G's divestment of 100 brands could be a successful strategy for two main reasons. Firstly,
by focusing on its strongest-performing brands, P&G can streamline its product portfolio
and allocate more resources towards products that generate higher revenue and profits.
Secondly, P&G's relationship maintenance approach involves working closely with its
customers and consumers to solve their problems for mutual gain. By focusing on its
strongest-performing brands, P&G can better meet the needs of its customers and consumers,
which could lead to increased customer loyalty and higher sales in the long term.

IV. SWOT TABLE

POSITIVE NEGATIVE

I S W
N STRENGTHS WEAKNESSES
T -Strong market position. -High cost of maintaining a dedicated team of
E -Long-lasting relationships with specialists for each large customer account.
R customers. -Becoming too reliant on a few major
-The CBD enables the effective handling customers.
N of large and complex accounts.
A -Competitive advantage.
L

E
O T
OPPORTUNITIES THREATS
X
T -Use technology and innovation to create and
improve existing products.
-Change in consumer preferences and shifting
demographics.
E -Focus on sustainability and environmentally
-Intense competition in the consumer goods
friendly products to meet increasing consumer
R demand. industry.
N
A
L
 Leyre Albizu, Teresa García,
Amaia García and Nerea Riesgo

V. CONCLUSION

Procter & Gamble's Customer Business Development (CBD) approach has effectively built
long-term relationships with major retail clients by assigning a dedicated team of specialists
to each large customer account. This system allows P&G to align its strategies with retail
customers, optimize business resources, and develop a competitive advantage in the
business-to-business (B2B) market. P&G's unique and comprehensive CBD structure offers
several advantages over a single sales rep, including strategic partnership, effective handling
of large and complex businesses, and effective collaboration. The divestment of 100 brands
could be a successful move for the company if it helps P&G focus on its core brands and
maximize business results.