...Background of the company Procter and Gamble was first founded in 1837 by William Procter and James Gamble. P&G carries about more or less than 50 top names products with the headquartered located in Cincinnati. Procter and Gamble is one of Americas largest company that sells multinational consumer goods. The product ranges varies from personal care, pet foods, diapers, cleaning supplies, medications and etc. The hundreds of different brand that P&G carries is available all around the world in more than 180 countries. In what line of business is the company? Procter and Gamble is considered as the personal products industry. However, in the personal products industry there are many different sectors and P&G is consider as the consumer goods sector. P&G is part of the consumer goods sector because of the different varieties of products that are carried. The ranger of product that are carried can go from beauty products to cleaning to supplies for the household. What is the nature of its products? The nature of Procter and Gamble’s products are beauty, home care, health, family care, grooming and baby care. What is the firm's distinctive competence? Procter and Gamble has five main core strengths that are being focused on in order to succeed in the consumer products industry. First core value of P&G is understanding the consumers, each year P&G does market research in more than 100 counties to see what will help them better serve their consumers and innovate their...
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...1 Individual Project MKTG 205-1205A-03 – Principles of Marketing Tuesday, November 13, 2012 Abstract Procter and Gamble has been in business since 1837, and some people purchase the product because it’s the things their parent’s and/or grandparent’s used. With a product line that includes toilet paper and dog food, it creates a wide range of consumers. Consumers still have a choice which creates competition between companies. But with such a vast line of products, and numerous commercials being aired on every channel, it’s hard for consumer not to be interested in at least one of the company’s products. Procter & Gamble Gain, Febreze, Tide, Downy, Duracell, Eukanuba, Charmin, and IAMS, are all part of the Procter and Gamble product line. With Procter and Gamble having so many products, the coupons found weekly in numerous Sunday newspapers, along with free trial samples being mailed directly to consumers, it’s hard to avoid owning or purchasing something that Procter and Gamble distributes. When the Gain product line was released, it became harder for consumers to avoid trying the product, and with the commercials, it made it easier for consumers to be willing to spend for the product. With all products, there is always an unforeseen problem, the economy, competitors, and social environmental forces that would affect the projected sales for Procter and Gamble. With the recent changes in the economy, households have cut down on things that they purchased previously...
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...Case Study Collaboration and Innovation at Procter and Gamble (Chapter 2) 1: What is Procter & Gamble’s business strategy? What is the relationship of collaboration and innovation to that business strategy? Procter and Gamble strategy is to maintain the popularity of its existing brands and in developing new products by extending existing brands and by creating new brands from scratch via innovation. It innovation is at the top of Procter and Gamble’s strategy and collaboration is a critical part to attaining this innovation. In order to constantly come up with new lines of products, Procter and Gamble must incorporate innovation in every aspect of its business. All objectives and business processes must be aligned in a way to foster and generate innovation. And the most critical tool in attaining such alignments is collaboration. Procter and Gamble is one of the top 10 largest companies in the world, operating in over 80 countries so it is very important to attain successful innovation, to develop a cooperative and collaborative environment so as to encourage sharing of ideas and resources and avoid duplication of efforts. Better collaboration results in faster and more efficient brainstorming across locations, and faster generation and sharing of ideas and feedback, this in turn leads to savings in Research and Development costs. Collaboration helps maximize efficiency, encourage communication across locations and ultimately foster innovation. 2: How is P&G...
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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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...The Procter & Gamble Company Jake Rehtmeyer Analyst July 8, 2010 Recommendation: HOLD Pros: • • • • • Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Debt Rating Beta PG NYSE Household Products Consumer Staples Income & Capital Appreciation $175 B $39.37 - $64.58 $59.38 (7/2/2010) 15.9 15.2 $3.58 $4.26 3.2% AA0.60 • • • • Disciplined cash and cost management Investing in capacity, innovation, and consumer value this year 23 $1 billion brands and 20 $500 million brands Poised to grow in developing markets (low costs, great growth potential) Excellent consumer understanding, marketing, and brand-building Cons: Global economic conditions Regulatory environment (environmental, competitive laws) Currency and debt exposure Critical Issues: Near-term results vs. Long-term growth Growth strategy Cost and price pressures Regulatory environment 1 • • • Brief Overview The Procter & Gamble Company (P&G) is focused on providing branded consumer packaged goods. The Company’s products are sold in over 180 countries worldwide primarily through mass merchandisers, grocery stores, membership club stores, drug stores and in highfrequency stores, the neighborhood stores, which serve consumers in developing markets. As of June 30, 2009, the Company was organized into three Global Business Units: Beauty; Health and Well-Being, and Household Care. The Company had...
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...Procter & Gamble Strategie: We are focused on strategies that we believe are right for the long- term health of the Company and will deliver total shareholder return in the top one-third of our peer group. The Company’s long-term financial targets are: * Grow organic sales 1% to 2% faster than market growth in the categories and geographies in which we compete, * Deliver earnings per share (EPS) growth of high single digits to low double digits, and * Generate free cash flow productivity of 90% or greater. In order to achieve these targets, we have created one over-arching strategy, inspired by our Purpose. At the heart of this strategy is innovating to win by touching and improving the lives of: * More Consumers. We are improving more consumers’ lives by innovating and expanding our product portfolio vertically, up and down value tiers. We continue to successfully develop and launch premium innovations focused on improving consumer value through enhanced performance. We are also serving consumers who are more price conscious through lower-priced offerings with superior performance versus other mid-tier and value-tier alternatives. * In More Parts of the World. We are improving lives in more parts of the world by innovating and expanding our existing product portfolio geographically into new markets. We are increasing our presence in developing markets and increasing the amount of sales from these markets by focusing on affordability...
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...Procter and Gamble | Strategic Management | | Table of Content Introduction 3 Company Overview 4 Mission and Vision 5 External Analysis 5 Industry analysis 7 Internal Analysis 8 Corporate level strategy 10 Critique and Recommendation 12 References 13 INTRODUCTION Procter and Gamble, more commonly known as P&G is a company, which offers consumer goods with an impressive portfolio. Gillette, Duracell, Tampax, Tide, Oral-B and Ariel are so many brands owned by the group that are part of the daily life of consumers. In fact its more than 300 leading brands and 50 leadership brands that the company owns to serve about 4.8 billion customers. This report will try to provide a strategic analysis of P&G thorough internal analysis of strengths and weaknesses including a financial analysis as well as an external analysis of firm opportunities and threats but also, an industry analysis using Porter’s five forces. Most of references came from the P&G website and information was sought from the Procter & Gamble Company Annual Reports but external references were also used as such article on web from American and French magazine. COMPANY OVERVIEW The company was born in the United States to Cincinnati in 1837. William Procter and James Gamble who were respectively, candle maker and soap maker created it. In 1954, Procter and Gamble establishes...
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...Introduction Procter & Gamble (P&G) is one of the largest consumer goods company in the world. The company was first built in 1837 by William Procter and James Gamble. Later in 1890, P&G decided to stop being a private company and became a public company. Now, P&G is a worldwide company which has 126,000 employees and sub corporations in more than 80 countries. Their total revenue are 84.17billion in 2013. Their products range including Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care. P&G sell their products in more than 180 countries. Some of 50 Leadership Brands are the world’s most well-known household names. Industry Structure and Global Markets P&G is a global company which manufacture operations in more than 40 countries and sell products in more than 180 countries. Their developed market are North America, Western Europe and Japan. The developing markets includes Asia (excluding Japan), Central & Eastern Europe, Middle East & Africa and Latin America. Although markets outside U.S.A contribute a huge portion of total revenue, there are some risks cannot be ignored. For example, the local regulations, laws and trade barriers can affect transactions. And exchange rates may impact adversely on financial condition. It is also difficult to P&G to protect intellectual property and implement policy immediately. The major competitors of P&G are Johnson & Johnson, Kimberly-Clark Corporation and Unilever. They own a huge percentage of...
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...80 countries and markets 300 brands in 180 countries around the world. In 1837 William Procter and James Gamble formed Procter & Gamble (P&G) to manufacture and sell candles and soap. Being that Cincinnati was booming from its hog butchering trade the suggestion for the partnership apparently came from their mutual father-in-law, Alexander Norris, who pointed out that Gamble's trade, soap making, and Procter's trade, candle making, both required use of lye, which was made from animal fat and wood ashes. P&G began operations out of a small storeroom with Procter running the store and Gamble ran the manufacturing which consisted of a wooden kettle with a cast iron bottom that was set up behind the shop. In the early years candles where their most important product, but the enterprising partners soon expanded their operations through innovation and acquisitions of other small companies. The first fifty years laid the foundation for the longevity of the company. With their forward looking approach to the business, during a time of financial panic in the U.S. the company continued to prosper as shipments were moving up and down the river and across the country by rail. During the 1850’s the company grew rapidly and moved operations to a bigger factory. During this time the company created its first trademark logo, the moon and stars, which became a symbol of quality to Procter and Gamble’s base of loyal customers. By 1859 P&G had reached sales of $1 million...
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...As a trainee working for the laundry detergent brand manager at P&G France, you are being asked the following questions in order to prepare a brand review. Question1: What have been the main changes on that market during the past year? Whatever the financial context in France, we can observe that customers are staying loyal to their own brand. The three major leaders, which are P&G, Henkel and Unilever, are keeping their leading position (respectively 27.2%, 20.7%, and 20.3% volume share in June 2011) and the other brands are fighting at the bottom of the graph. However since last year a new competitor is emerging in the laundry industry. As the first graph shows, Henkel is the challenger that have win market share, in December 2010, Henkel have increase his volume to 24.3% rivalling with P&G (26%) and leaving Unilever (17.7). How can we understand the rise of Henkel last year? We will try to explain this main change by comparing data from value share related to the distribution laundry in France. On graph 1 (figure 1), we can find the laundry market represented by curves. In the past (until 2010) the laundry market was largely dominated by our brand P&G, but during the past year (June 2010 to June 2011), the volume of sales has undergone an earthquake. By analysing this graph we can find an emerging challenger to P&G, which is Henkel. On the second wave we can see a conglomerate of minor challengers that are Colgate, NLN, Reckitt Benckiser and other...
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..."The consumer is boss," Procter & Gamble Chief Executive A. G. Lafley says simply of the business mantra he endlessly repeated to his employees. These four words speak volumes about his keep-it-simple strategy for leading the world's largest consumer products company: Find out what the consumer wants, and give it to her. (Drucker: What the people in the business think they know about customer and market is more likely to be wrong than right. There is only one person who really knows: the customer. Only by asking the customer, by watching him, by trying to understand his behavior can one find out who he is, what he does, how he buys, how he uses what he buys, what he expects, what he values, and so on, pg. 113) (http://www.usnews.com/usnews/news/articles/061022/30lafley_print.htm) There are two types of research that Procter and Gamble (P&G) employed to gather information from consumers on their needs and product feedback: qualitative and quantitative. Qualitative Research Qualitative research is used to generate ideas. It involves small groups of people, and requires in-depth interaction between the researcher and the participants. Focus Group Discussions: A relatively small group of people (6 - 12) is brought together and asked to talk about certain topics for exploring ideas and making initial evaluations. The advantage of the group interaction is that people can build on one another's ideas and comments. (http://www.pgbeautygroomingscience.com/index.php...
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...“Companies like P&G are a force in the world. Our market capitalization is greater than the GDP of many countries, and we serve consumers in more than 180 countries. With this stature comes both responsibility and opportunity. Our responsibility is to be an ethical corporate citizen—but our opportunity is something far greater, and is embodied in our Purpose.” Procter & Gamble (P&G) is an American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods. Operating in Russia since 1991, P&G Russia is one of the fastest developing subsidiaries of the Procter & Gamble Company. It has in Russia a solid portfolio of over 70 P&G brands, the key of them are Ariel, Tide, Fairy, Blend-a-med, Pampers, Always, Pantene, Head & Shoulders, Wella, Gillette and possesses leading market shares in 3/4 of the categories where it operates, esp. detergents, shampoos and diapers. Strategic problem How P&G Russia can progress and have a bigger penetration into the market? They want to develop market further, but problems come from neighbor countries, because the chairman of each region is different, and has his own strategy to maximize the market. P&G needs to develop market share and enforce the sales, but there are competitors, that distract a lot. Tactical problem P&G Russia haven’t studies the Russian consumers properly, their behavior, way of thinking and the way they spend money. Russian`s consumer behavior is very different...
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...Hervé-Alykhan Ladak Marketing Management Geneva, the 11.11.2011 Procter and Gamble: Always Russia Introduction The Procter & Gamble Company was founded in 1837 and is based in Cincinnati, Ohio. The Company provides consumer packaged goods in the United States and internationally. With 1.6 million shareholders around the globe, P&G operates in more than 160 countries and employs around 135,000 (including the Gillette business). Operating in Russia since 1991, P&G Russia is now one of the fastest developing subsidiaries of the Procter & Gamble Company. It has in Russia a solid portfolio of over 70 P&G brands, the key of them are Ariel, Tide and many other brand such as Pampers, Pantene. In this case study, we will focus on Always, a leading brand of feminine protection disposal pads launched in 1995, which is part of the paper division, trying to expand its brand and gain a maximum market share and enhance its market penetration. Strategic and Tactical Problems Always was the world-leading brand of feminine protection disposal pads, a market worth some USD 7 billion at retail in 1997, of which P&G hold 25% worldwide. This market has been growing steadily at 5%-10% in the previous decade. In order to increase its market share (by increasing usage) and expand its market penetration, P&G should establish some analysis such as identifying the issues. 1. Macro-economic situation: The economic situation in Russia, after the fall...
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...PROCTER AND GAMBLE. INC SCOPE ( MOUTH-WASH BRAND IN CANADA) 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. 1. What significant changes have occurred in the Canadian mouthwash market in the past three years? The most important change occurred in the Canadian market in the past three years was the introduction of Plax , a pre-brush mouth-wash. Plax quickly gained 10% of mouth-wash market shares which in turn slightly reduced the market share value of Scope. Apart from that, following are the competitive changes that occurred in the Canadian mouth-wash market:- Listerine, which was marketed as a bad breath strategy, introduced the claim fight plaque and helping prevent the inflamed gums caused by plaque in 1988. Listermint downplayed fluoride and removed the seal from the Canadian Dental Association that they added in 1983. In early 1987, flavors were introduced by many brands including Scope, Listermint and Various store brands. This greatly expanded the market but did not affect the...
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...Procter & Gamble Co. also known as P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United States, founded by William Procter and James Gamble. Proctor & Gamble was founded on October 31, 1837. Corporate culture refers to a company's values, beliefs, business principles, traditions, ways of operating, and internal work environment. For over 150 years, Procter & Gamble has worked toward maintaining their standards, which has defined their corporate culture. Procter & Gamble markets everyday products, such as; hair, skin, beauty, home, and fabric care. The corporation is confident in the brands they sell. They maintain Corporate Governance by their principles and values. P&G’s mission is seeking to be the best with the goal to “create and deliver products, packaging and concepts that build winning brand equities.” They accomplish this through being strategically focused and operating “against clearly articulated and aligned objectives and strategies,” as well as only doing work that adds value. (Joseph, 2014) Certainty risk refers to Theoretical condition in which decision making is without risk, because the decision maker has all the information about the exact outcome of the decision, before he or she makes the decision. I believe that P&G is a certainty risk environment because they set out knowing the desired outcome that they want and they work very hard to achieve thus. They make their decision...
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