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Procter & Gamble: A Case Study Analysis

Procter & Gamble is a consumer-goods company that began in 1837 and has grown to be a leader of its industry. It has over 800 brands worldwide, 25 of which generate more than 1 billion dollars in sales, including Tide, Downy, Always, Oral B, Crest, Gillette, Febreze, Swiffer, and Duracell. However, in the last 10 years, P&G has experienced a loss of sales. Through an analysis of the company and its history, its visions and goals, a SWOT analysis, and the Porter’s Five Forces Model, the problems Procter & Gamble face will be identified, discussed, and possible solutions and recommendations will be given.
Keywords: Procter & Gamble, brands, analysis, consumer-goods
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Through the 9 years of Lafley’s leadership, P&G updated “all of its 200 brands by adding innovative new products” (Dess, Lumpkin, Eisner, & McNamara, 2014, pg. C199), including a battery-powered brush called Tide StainBrush, and creating new products, like Crest White Strips. Lafley also changed the belief that all new and innovative products had to be created within Procter & Gamble, stressing that many new products should be created elsewhere. This “’Connect and Develop’ model of innovation” allowed the company “to get almost 50 percent of its new product ideas from outside the firm” (Dess, Lumpkin, Eisner, & McNamara, 2014, pg. C199).Along with continued innovation, Lafley also pushed for P&G “to move away from basic consumer products such as laundry detergents”, which can easily be “knocked off by private labels, to higher margin products” (Dess, Lumpkin, Eisner, & McNamara, 2014, pg. C199). This included the acquisition of Gillette, Clairol, and Wella, as well as offering designer fragrances through license agreements.
When Lafley stepped down as CEO of P&G in 2009, he left McDonald with some problems, including some beyond his control, such as the recession of 2008. Some of these issues include the lack of “blockbuster” ideas from the Connect and Develop program (however, this program did help to reduce expenses for P&G) and increased competition from companies like Unilever and
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