...a. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the 1980s? Procter & Gamble clearly used an international strategy for their expansion into foreign markets throughout a large portion of the 20th century. Not until they began to experience slower growth, profits and sales in the in the early 1990’s did they take a serious look into their business model for international expansion. But up to this pint they were unparalleled by any other competitor as the chart shows below. b. Why do you think this strategy became less viable in the 1990’s? • P&G’s costs were too high because of extensive duplication of manufacturing, marketing, and administrative facilities in different national subisidiaries. The duplication of assets made sense when national markets were segmented from each other by barriers to cross-border trade. (Products produced in one country could not be economically sold in another due to high tariff duties levied on imports to Germany for example). First, the changing global market created a better market for companies to expand and compete with less restrictive policies from host nations and more openness to foreign direct investment have all aligned to make the older strategy almost doomed to be defeated. Second, a combination of cheaper more efficient transportation of goods and markets more free for the import and export of materials aided to P&G losing some market share and profitability...
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...Procter & Gamble’s business strategy? What is the relationship of collaboration and innovation to that business strategy? i. Proctor and Gamble’s business strategy focuses on three main areas. This is to maintain the popular the popularity of its existing brands through advertising and marketing; the extension of its brand to related products by developing new products and the creation of new brands from scratch. To achieve these, the company aims to facilitate collaboration between researchers, marketers and managers. ii. By fostering interaction among employees P&G fosters informed decision making and the sharing of ideas and information which ultimately leads the company to produce quality products. 2.How is P&G using collaboration systems to execute its business model and business strategy? List and describe the collaboration systems and technologies it is using and the benefits of each i. P&G researchers use collaborative tools to share data on various brands they have collected which allows marketers to access this data to create better targeted ad campaigns and likewise managers access data shared t be able to make informed decisions. ii. - P&G use a suite of Microsoft products such as MS Outlook, MS SharePoint and others that have unified communication and integrate services through voice and data transmissions and allow for instant messaging, email and electronic conferences, web conferencing with live meeting, and content management. - P&G use social networking...
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... 1.1 Procter and Gamble (P&G), as a whole 1 1.2 Procter & Gambles Sverige AB 1 2.0 Marketing Campaign 2 2.1 Overview 2 2.2 Campaign Impact 3 3.0 Marketing Strategy 3 3.1 Analysis of Advertisement in Sweden 3 3.1.1 Root Cause Analysis (RCA) 4 3.1.2 Proposed Solutions and Possible Outcomes 4 3.2 Barriers of Communication 4 4.0 SWOT Analysis of P&G Sverige AB 6 4.1Strength 6 4.2 Weakness 6 4.3 Opportunity 6 4.4 Threats 6 4.5 SWOT Matrix Analysis 7 5.0 Marketing mix analysis 7 5.1 Product analysis 7 5.2 Price Analysis 8 5.3 Place/Distribution Analysis 9 5.4 Promotion Analysis 9 6.0 Conclusion 9 7.0 Appendices 10 1.0 Introduction 1.1 Procter and Gamble (P&G), as a whole The Procter & Gamble Company (also known as P&G) initiated a partnership agreement between William Procter and James Gamble, at the year of 1837. The small business was initially a soap and candle shop, but now an American Multinational Company (MNC) for Fast Moving Consumer Goods (FMCG). P&G who has never neglected the importance of human capital and being passionately develop talents that show great curiosity, appreciation towards diversity, and flexibility in tackling tricky problems. With that, P&G has been rated as the Top 7 in the World’s Top Employers for New Grads at the year of 2014 (refer Figure 1). Comparing between Procter and Gamble (P&G), Colgate-Palmolive (CL), and Unilever, P&G is ranked the second most...
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...Business Proposal R. Michelle Thomas ECO/561 March 3, 2014 Nancy Irizarry Proctor & Gamble (P&G) is the world’s largest and most profitable consumer products company, with nearly $84 billion in sales and 25 billion-dollar brands. On February 20, 2014 P&G introduced another Swiffer product called The Sweep and Trap. P&G says The Sweep & Trap will make clean-up faster and easier. The Sweep & Trap picks up small and large particles in one swipe with no batteries, cords or power supply required (P&G, 2014). Business Proposal Market structure: P&G market structure is what is called Oligopoly; Oligopoly is a form of market where there is domination of a limited number of suppliers and sellers. P&G is the world’s largest consumer products company controlling over 90% of the market. In the consumer products market P&G is the leader and main competition to all other consumer product companies. At P&G a lot of time money and effort goes into product research and development and advertising is very important part of competition (P&G, 2014). Elasticity of the product(s): Over the last 10 years P&G has had to face some stiff competition from a handful of powerful low-priced retailers such as Wal-Mart, Target, and supermarket chains that offer private label brands or store brands. Because Procter & Gamble has the biggest portfolio of products in the household and personal care industry and generates over one...
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...P&G Case Executive Summary This case study analysis is on the Proctor & Gamble Company (also referred to as “P&G”). Procter & Gamble is the world's largest producer of household and personal products by revenue, with its products reaching 4 billion people worldwide. The Case Study includes an Introduction, Company Overview, Company Mandate, Internal Analysis, and External Analysis, followed by various Strategic Options (see below). The author then makes a Final Strategy Option Recommendation. Strategic Option #1: Market to Lower-Income Consumers in both Developed and Emerging Markets (Expand and Build Beauty Segment strictly aimed at Low-Income Consumers). Industry Consolidator. Strategic Option #2: Given the maturity of the North American/Western European market, combined with the emerging popularity and demand for Natural/Organic ingredient products, P&G should look to create New Natural Products and Products tailored to the Male market - Multiple Segments, not just Skin Care (Expand and Build Beauty Segment). Industry Consolidator. Strategic Option #3: Related Diversification through Acquisition. Strategic Option #4: Joint Ventures in Emerging Markets such as China and India. Final Strategy Recommendation: The Recommendation is to go for a combined Low-Income segment and New Natural Product strategy as this facilitates P&G’s need to capture a greater slice of the Low-Income consumer market both in Mature and Developing markets, which also capturing a greater...
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...Comprehensive Strategy Assessment April 2nd, 2016 MBA 6024 Organizational Strategy Date: 04/03/2016 To: Terri Bell, Vice President of Strategy From: CC: Vincent DeFazio, DM Subject: Comprehensive Strategy for Procter & Gamble Executive Summary Procter and Gamble (P&G) which began as a soap and candle company, has now become one of leaders in the Global Household and Personal Industry products. P&G has now grown to a company with ten core categories: Baby Care, Feminine Care, Family Care, Grooming, Oral Care, Personal Health Care, Hair Care, Skin and Personal Care, Fabric Care and Home Care (www.us.pg.com). Their products reach consumers in over 180 countries. This paper will look into the company’s main strategies and some of the struggles they are encountering. Also included in this paper are the company’s internal strengths and weaknesses, external opportunities and possible outside treats. Furthermore, it will recommend some strategies that will help continue to grow the company. Strategy Assessment Procter and Gambles emphasizes five core strategies that set them apart from their competitors: products, operations, social responsibilities, employees, and stakeholders. They strive to manufacture products that not only satisfy the consumer but are also helpful in improving the environment. In 2015, seven of their ten core categories were leaders in the industry and the other three were number 2. Operations strategy is classified into three categories:...
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...Statement 3 - 5 4. Environmental Scanning 5 5.1. SWOT Analysis 5 - 10 5.2. Financial Ratios 11 - 14 5.3. Porter Five Forces Analysis 14 - 16 5. Strategic Formulation 16 - 17 6.4. Recommendation for Alternative Strategies 17 - 19 6.5. Selection of Alternative Strategy 19 6. Strategic Implementation 19 - 20 7. Evaluation and Control 20 - 22 8. Reference / Work Cited 23 - 26 1. Executive Summary The objective of this case study is to assess the Procter & Gamble (P&G) corporation within its current environment by evaluation of its present performance with in its industry (Hunter, 2009). The assessment is based on information provided in the 2007 case study by Professor Shamsie and Eisner as well as various other secondary research materials. The objectives of the case analysis are to point out potential problems with P&G, conducting a SWOT analysis, strategic Porter Five Forces analysis, reviews various recommendations to the problems stated and implement a strategic recommendation. Regarding the problem in this case, as research will show, P&G’s faces three major problem areas within the organization. The problems reach from struggle with sustainable product innovation, increased reliance on one sided distribution channels and leadership in-cohesiveness within the company. To support these assumptions, comprehensive...
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...Executive Summary In this report, I would state and analyze Procter and Gamble (P&G). In the beginning, P&G had just supply soap and candles to the Union armies, but now it has become to a global manufacturing, distribution, and marketing company focusing on providing branded products with superior quality and value. It provided over 300 brands reaching consumers in about 140 countries. P&G is focusing on provided fashion, high quality products for consumers. In order to satisfy consumers, P&G segment its consumers into different group, such as age, gender, ethnicity, material status, and low income consumers. With the segmentation, P&G could analyze what consumers’ demand. Human’s living standard is improved rapidly. People is getting to pay more attention on cleaning products to keep their bodies clean and looking good. Most of the people thought that beauty/feminine care products were just for females, but actually the number of men spending time in front of the mirror, grooming themselves had increased. With the growing trend for men to use beauty products, P&G started manufacturing more products for them and try to satisfy their needs. For example, they designed the products so that they would attract male consumers, by using dark colors for the packaging so that it looked more masculine. P&G is always try to satisfy needs of consumers. With a company which had more than 100 years history, P&G was strong in brand quality reputation, price competition, scales of economic...
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...Arlissa Williams MMBA-6570-9 Business Strategy for Competitive Advantage The Business Model Procter and Gamble is the world’s largest consumer products company that provides “branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.” -www.PG.com, 2010 - “New CEO Bob McDonald, who assumed office in July, is on the road promoting P&G's ‘purpose-inspired growth’ strategy of ‘touching and improving more consumers' lives in more parts of the world... more completely’"(Kanter, 2009). In 2007, P&G created a five prong business strategy to assist the company in growth, both financially and organically. Its business model focused on innovation in all parts of the company. Using the core strengths of consumer understanding, scale, innovation, go-to-market capabilities, and brand-building, virtually all the organic sales growth delivered in the past nine years has come from new brands and new or improved product innovation. Not only did the company want to ensure that its products were what the customers desired, they wanted to create a lasting positive effect on the community. The five strategies were as follows: Products: “Delight the customer with sustainable innovations that improve the environmental profile of [the] products” (P&G Strategies, Goals and Progress, 2010). In order to provide the most innovative products to the consumers, P&G invested hundreds of millions of dollars...
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...Procter and Gamble Strategic Plan Paper LTA MGT 498 April 8, 2016 Robert Shereda Procter and Gamble Strategic Plan Paper The business world changes as often as the earth rotates around the sun. The way businesses remain successful is by choosing to embrace change, but wanting change is not enough. To stay competitive, a business must foresee change and adapt in a way that maintains profit, customers, and shareholder loyalty. Ways this will be achieved is through a carefully planned and implemented strategic plan. The strategic plan and other considerations for Procter and Gamble (P&G) will be outlined and detailed throughout this discussion. Importance of Proctor and Gamble having Strategic Plan For a company to be successful there needs to be a set of plans to achieve success. Strategic planning is geared toward specific results that a company needs to achieve and establishes a specific direction of action for goal attainment. Good strategic plans ensure that different departments of Proctor and Gamble work together to align themselves with the goals set by the business. Preparing a strategic plan is not a difficult task, it takes thought from the top all the way down to the employees, especially feedback from consumers concerning the company. Thought out strategic plan will span two to five years and details how the company will develop and succeed over that planning period. Procter and Gamble have created four divisions within the company to ensure...
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...Introduction Marketing is delivering goods and services to the customers and be likely to signify managerial future more willingly than industry prospective. Analysis says that, marketing is conducts which are guarded in their implementation to reach objective and collective performance of the company. Recently P&G has introduced an extra $1bn for the purpose of advertising and making total spend was $8.6bn (£5.4bn), that is equal of around 11% of whole sales. Chief executive of P&G Mr. Bob McDonald P&G says: “They are carrying out on all three width of expansion strategy - touching and recovering extra consumers' lives, in new parts of the world and more absolutely."They have made investments in modernization, support of marketing and value of consumer. These have provided go faster unit volume that might increase the profitable market share growth in the near future. Those are very obvious sign in their strategy is operating." (http://www.mad.co.uk/) Marketing planning process strategy for the expansion The P&G has implemented a supply chain innovation and MR. Jake Barr is in charge of this. He is responsible to form out the techniques to obtain the customer commodities like giant's detergents, soaps and personal care products etc. for the people of 5 billion customers in 170 countries more efficiently including USA. This could generate $50 billion for the company that have boasts 13 brands and making more than $1 billion worth of revenue every year. In order to...
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...EXECUTIVE SUMMARY Proctor and Gamble (P&G) over its journey of about 175 years has become one of the world’s largest consumer goods Company with sales of nearly $80 billion and a net profit of about $10 billion. P&G has a presence in more than 180 countries with brands that accumulate to in excess of $25 billion. The company has achieved success by creating high quality brand recognized products that are sold on multinational level. It enjoys one of the largest brand names in household products like Pampers, Gillette, Tide, Ariel, Downy, Pantene, Head & Shoulders, Olay, Oral-B, Crest, Dawn, Fairy and Always and segments like household care, beauty, grooming, and personal health care. Although, P&G has world renowned brands, P&G needs to adopt strategies that enable it to maintain its competitive advantage over its rival. Consumer Goods industry where P&G operates has matured reaching the consolidation stage and competition amongst rivals is intense. P&G has many strategic options create competitive advantage over its rivals such as further market penetrations by rebranding its current line of products and selling them at a lower price. Another option for P&G is to expand in the emerging markets by collaboration or alliances with local businesses in various geographical regions. Lastly, P&G can specialize in skin care/beauty segment of consumer industry. P&G can provide consumers with products that are made with natural ingredients...
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...1. What strategy should P&G implement by taking advantage of the opportunities that exist in the industry, while utilizing its strength? Since P&G is the market leader and have majority of the market share, they should continue focus more on product Research and Development in order to produce more innovative and new products that suit the current needs of customers. Besides, market research also important to them to make sure their products will best suit customer’s preference. By identifies their main competitor’s strength and weakness to develop distinctive strategy to market their products. Merger and acquisition also the strategies that they should implement to reduce their production cost and build up the sales network. Acquisition enable them better capture their target market share with little efforts. Forward integration and backward integration can benefit P&G to produce high quality at little costs. Besides, internal assessment should not be avoided to better understand their strength and weakness to produce differentiated products. They should identify their Resource-based view to produce high quality products at reduced costs. 2. How can the company optimally manage its weaknesses while avoiding potential threats imposed by competitors and/or the industry? P&G’s 2010 regional revenues in Latin America, Middle East and Africa have only 9%. They should really focus on marketing strategies to grab the market share. Before grab the market share, they should conduct...
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...Case study of Procter and Gamble (P&G) 1. Is it important to develop Brand Equity? According to the definition of Brand Equity, it is a kind of customer-based value added on company’s products and services that can be positive or negative depend on different customer response. Brand Equity is important because of three aspects. First of all, it is important to develop Brand Equity because the products associated with the brand requires not only premium price but also high quality so that company is able to get competitive advantages. P&G made use of production innovation and quality strategy in order to develop brand to catch customer benefit. As a excellent manufacturing company, P&G devote itself into developing and improving production operations to get the goal of ‘lowest cost as well as lower premium prices’ according to its efficient manufacturing capability. Secondary, a good Brand Equity provides high brand awareness and customer loyalty as well as enhances total earnings in return. In the case of P&G, the long run view of P&G is increasing its presence in developing markets by concentrating on affordability, brand awareness, and distribution through e-commerce and high frequency stores. Furthermore, P&G pioneered the power of communication such like television (traditional methods), online marketing efforts and social media, which create strong consumer awareness and preference. In addition, Brand Equity allows companies to more effectively...
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...The Evolution of Strategy at Proctor and Gamble Founded in 1837, Cincinnati-based Procter &Gamble has long been one of the world’s most international of companies. Today P&G is a global colossus in the consumer products business with annual sales in excess of $50 billion, some 54 percent of which are generated outside of the United States. P&G sells more than 300 brands- including Ivory soap, Tide, Pampers, IAM per food, Crisco, and Folgers- to consumers in 160 countries. It has operations in 80 countries and employs close to 100,000 people globally. P&G established its first foreign factory in 1915 when it opened a plant in Canada to produce Ivory soap and Crisco. This was followed in 1930 by the establishment of the company’s first foreign subsidiary in Britain. The pace of international expansion quickened in the 1950s and 1960s as P&G expanded rapidly in Western Europe, and then again in the 1970s when the company entered Japan and other Asian nations. Sometimes P&G entered a nation by acquiring an established competitor and its brands, as occurred in the case of Great Britain and Japan, but more typically the company set up operations from the ground floor. By the late 1970s, the strategy at P&G was well established. The company developed new products in Cincinnati and then relied on semiautonomous foreign subsidiaries to manufacture, market, and distribute those products in different nations. In many cases, foreign subsidiaries had their own production...
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