Proctor &Gamble: A Strategic Management Case Analysis
Has P&G lost its Luster?
First, identification of the strategies used by P&G is relevant to the discussion of its maintenance of its position or its loss of luster. The essence of a differentiation strategy encompasses developing the unique nature of the product or business to attract and retain its customers (Rothaermel, 2015). Procter & Gamble, via information contained in its marketing releases, pursues quality and value in its consumer goods offerings(Proctor & Gamble, 2017). According to P&G, it is directing significant resources towards research and development. Additionally, P&G prioritizes an emphasis on uniqueness of its products. This focus drives pricing and promotion. Among P&G’s product lines, it uses different strategies. P&G uses a primary strategy of market penetration. The firm executes this strategy with the goal of increasing its market share. Through marketing campaigns aimed at increasing consumer awareness of its products, P&G makes comprehensive and beneficial (incentive-laden) agreements with retailers to place its products in prominent locations
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P&G miscalculated the importance of brand in its customer base and should have taken measures to either heighten brand loyalty or to adjust pricing to meet the customer emphasis on value/price (Rothaermel, 2015). A successful integration strategy requires that trade-offs between differentiation and low-cost be reconciled (Vera, 2016). Although, this is extremely difficult because these two distinct strategic positions require internal value chain activities that are fundamentally different from one another. “Stuck in the middle” would be a bad position for P&G to continue to put themselves in. This would give its competitors a better strategic advantage that P&G may find difficult to
The company also made a research on why consumers use mouthwash, and the results were that people use mouthwash because it is part of their basic hygiene, it gets rid of bad breath, it kills germs and many other reasons.
1) What significant changes have occurred in the Canadian mouthwash market in the past three years?
The P&G community consists of nearly 98,000 people working in almost 80 countries worldwide. What began as a small, family-operated Soap and Candle Company now provides products and services of superior quality and value to consumers in 140 countries.
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.
Johnson & Johnson, a 130 years old famous multinational healthcare company through its family of companies is involved in the research and development, manufacture and sale of a wide range of products in the healthcare. Product that related to human health and well-being has always been their main interest over the years and also presently. Johnson & Johnson was incorporated in the State of New Jersey in 1887 by three brothers; Robert Wood Johnson, James Wood Johnson and Edward Mead Johnson.
P&G’s significant Pricing tactics are defining different prices for different brands to satisfy different customers. For example, no matter how much money the customers want to spend on hair care shampoos, P&G’s products can always satisfy customers’ needs. In addition, P&G always has great discounts such as buying a large one get a small one for free at holidays.
Scope, a green mint tasting mouthwash, was positions as a great tasting mouth refreshing brand that provided bad breath protection. It is the first brand that offers both effective protection against bad breath and a better taste than other mouthwashes.
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?
United Beverages’ CEO is debating with his department heads on the course of action the company is going to take in the future. Their flagship product, GangBuster, has been highly successful for the past 5 years. However, they have been thinking of entering the market for Energy Drinks for kids. Paul Diaz also comes up with a revolutionary idea of the dual-drink, having two separate flavored drinks in a bottle and being able to mix both flavors. Due to the limited resources of United Beverages, they have two weeks to decide whether to expand their portfolio or not?
The Procter & Gamble has vast differentiated products due to its innovation culture. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business (Charan, 2008). The product differentiation allows the P&G to charge premium price for its products and assists to capture market share from its rivals by increasing the product demand.
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.
P&G is a multinational Organization of consumer goods situated in United States. It sells products like personal care, cleaning agents, pet foods. The P&G Company is well known for its unique strategy which cares about the need of human. It not only makes its product available to its consumers but also tries to improve the life of its consumers. This strategy is more focus on its consumers wants and that is why it has an appeal to the heart of the consumer. The company has diversified its product line and also acquired other companies which have significantly contributed in the growth of their profitability.
P&G is now one of the ten most valuable companies in the United States. During Mr. Lafley’s watch since the year 2000, sales have grown to more than $80B in 2008, from less than $40B when he took over, and earnings have tripled, topping $10B in 2007. The company has 24 brands generating more than $1B each, more than twice the number in 2000. And that number is likely to increase with close to 20 more brands with sales greater than $500M and growing. P&G’s stock, which was trading at about $28 per share when Mr. Lafley took over, now exceeds $70.
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