Case Study Of Procter And Gamble

Gillette, which P&G was preparing to acquire at the time, had already begun using Optiant software with

Procter and Gamble (P&G) began in 1837 when brother’s in-law William Procter and James Gamble, whose wives were sisters, formed a small candle and soap company. From there P&G launched a variety of revolutionary products of superior quality and value. The products include Ivory soap, Tide laundry detergent, Crest toothpaste and Pampers disposable diapers. They also acquired a number of companies to open the doors to new product categories.

Procter & Gamble is a multinational consumer-product company established by William Procter and James Gamble in 1837. P&G currently has a

As far as the third phase is concerned, it is a little risky. Gillette’s history has showed that during the time the company had a broader product portfolio (from

Proctor and Gamble® was founded in 1837 by William Proctor and James Gamble in Cincinnati, Ohio. Today the company is the world’s largest producer of consumer goods with over 300 brands in over 180 countries. The company has a significant advantage over its competitors because of market position and brands that everyone knows such as Tide®, Pampers®, Gillette®, Olay® and many more.

Procter & Gamble (P&G) is a Fortune 500 American multinational company, and a world 's leading consumer goods company. P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G now has 50 Leadership Brands, which are among the world 's best known and which account for more than 90% of P&G sales. P&G entered the Chinese market through a joint venture in 1988. Now, P&G is the most successful foreign marketer in China as measured by market share.

The Proctor and Gamble Company is a multinational corporation, formed under the state laws of Ohio, whose principal office is located in Cincinnati, Ohio. The purpose of this company is to produce, manufacture, buy, and sell merchandise that falls into ten main categories: fabric care, home care, baby care, feminine care, family care, grooming, oral care, personal health care, hair care, and skin and personal care. Within these ten categories, the company produces, markets, and sells sixty-five individual products. They used to have a much larger inventory of products, but in recent years, the company went through a streamlining effort, and dropped almost one hundred products that were only making up five percent of their sales so that they would be able to focus on the sixty-five that accounted for ninety-five percent of sales. They sold the products and rights to the products to a number of different companies, through a series of trade agreements and buyouts.

Can Proctor and Gamble survive and prosper by reinventing existing products in environment that requires new innovations? And will P&G be able to meet their target of 50% of the market share in each segment?

1. Problems/ Opportunities Executives at Proctor and Gamble are highly ambitious to enter into new and emerging markets, which could act as both an opportunity to increase sales, or a risky problem that could end up causing the company large amounts of money if it were to fail. The strategy Proctor and Gamble used in the 1990s, cutting costs to keep the profits increasing, was a poor strategy that could have caused the company to fail since the retail industry was changing, and rival companies were already causing a slowing of sales to all 18 top brands. The next major problem occurred in the late 1990s when CEO Durk I. Jager introduced expensive new products that never caught on with consumers. During this time, Jager’s decisions also caused share prices to drop 52 percent, which caused tension between the company and its employees as the employees owned around 20 percent

Procter and Gamble adopted three types of strategies, international, transnational and multi-domestic. In 1930 Procter and Gamble started selling their products overseas thus adopted international strategies, then in 1950 P&G focused on emerging markets such as china and the far-east and implemented a multi-domestic strategy. Finally in the 1980’s started implementing international strategies, taking advantage from its decade of experience and work.

For this reason, Gillette has always been trying to innovate in the market with new products. But they did not want their product to be bought just because they are a novelty but because it was perceived by the customer as a good quality product and have a staying power and product loyalty. This can be illustrated by the launch of the “Fusion” product by

The Gillette Company was founded in 1901 in a small office in Boston. Since its departure, Gillette has positioned itself as one of the most recognizable brands not only through their safety razor blades, but also through corporate diversification. This included the acquisition of a number of major companies, most recently Duracell. Prior to this acquisition, the Duracell Corporation had been the leading producer of alkaline batteries in the United States and maintained consistent growth in revenues from 1991-1996. Since their purchase of Duracell, their stock price has fallen 45% to a low of $34. The issue for Gillette is to determine if they can promote the profitable growth of their acquisition.

Today, Procter & Gamble is one of the best-known consumer goods companies in the world. It owned several well-known brands that were sold in over 160 countries to nearly 6 billion consumers.

Gillette is seeking means to retain dominance in market share they have lead for the last century. Along with sustaining market share Gillette has continued focus on expanding worldwide into less saturated markets. In this analysis multiple alternatives will be explored in order to make a recommendation on steps that would favor Gillette’s organization in meeting their aspirations.

Because of their similarities, Proctor & Gamble and Gillette are a good strategic fit. Between the two entities they have the ability to combine operations, technology, resources, distribution channels and research costs in efforts to drastically cut spending. With lower costs, and the merger complete, the collaboration of Proctor & Gamble and Gillette should achieve a 1+1=3 effect.