Procter & Gamble: A Case Study Analysis
Abstract
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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319).
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
Established in 1837, Proctor and Gamble (P&G) had developed a holy grail of principles and practices. Its philosophy is focused on individual talents, abilities and how best to make use of them. P&G source this talent from within the organization attracting people willing to spend their entire career with the company. Proctor & Gamble has developed a reputation of caution in the industry of household 's sundries and personal care products. It 's marketing strategies and judgements towards different markets stand out to the competition. Extensive marketing research and testing are "trademarks" that distinguish P&G in the industry. "Internal operations at P&G are described as thorough, creative, and aggressive by some, and slow, risk
Procter and Gamble Corporation was founded in 1837 in Cincinnati. The corporation was founded by William Procter, who was a candle maker along with his brother-in-law Gamble, who was a soap maker. Their combined venture sparked one of the most powerful and influential companies in America which is later called Proctor and Gamble. Their first product was introduced in 1879. It was an ivory Soap. In the Year 2013, they have a net income of 11.31 billion U.S. dollars, total assets of 139.26 billion U.S. dollars, and a total equity of 68.06 billion U.S. dollars. The company’s products are divided into groups: beauty and grooming, and household care. The company has a target market of the customers from the middle up class. They also
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.
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 (P&G) is a multinational consumer-product company which operates in nearly 80 countries with more than 300 brands. With its core competency in development and commercialization of products and brands such as Pampers, Tide, and Wella which are part of P&G 's 22 billion-dollar brands, P&G has been highly successful in the market with sales of $68 billion and a net profit of $8 billion in 2006. Its aggressive international expansion and innovation-driven strategy enable the company to achieve economies of scale as well as to differentiate itself from strong competitors like Unilever, and Kimberly-Clark. Due to its large size and complexity, the organizational structure tends to be centralized. The
Procter & Gamble has strong brands to its name. The company boasts 24 billion dollar brands. It also claims 50 leadership brands that contribute 90% to its overall sales and profit.
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 alarm sounds bright and early at 7:30 am, you fall out of bed, stumble down the hall Crest toothpaste in hand, brush your teeth, grab your school bag and your off to class. Fast forward to 12:00 pm—lunch! You get a scrumptious Italian hoagie—hold the mayo, extra oil—from Joegies and a can of Sour Cream and Onion Pringles. Later that night you notice a nice big oil stain on your Abercrombie & Fitch shirt from your delicious hoagie you had for lunch—time to do the laundry. You grab your humongous bottle of Tide and head on down to the laundry room. Ever wonder where that refreshing Crest toothpaste, those deliciously crunchy Pringles, or that bottle of Tide that works wonders on oil stains come
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.
Although Procter & Gamble is a successful corporation they still face challenges which can negatively impact their business. One of the challenges that P&G faces is that as the market leader, consumers pay closer attention to the company; as such, mistakes committed by the company would usually gain more negative publicity (Alaric, 2014). The size of P&G means that mistakes are magnified and exposed to be larger than may need to be.
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
The Procter & Gamble business strategy is to focus on creating new brands and categories so the company can focus on being the best in branding, innovation and scale. This is what sets this company apart from many of its competitors. The Proctor and Gamble are the global leader in all of their core businesses within the company which consists of laundry, baby care, hair care and feminine protection. This report is designed to understand the company’s business model and strategies, and analysis how the P&G has formulated its business-level strategies to pursue its business model.
This chapter presents an investigation into the problems that the Procter and Gamble Company (P&G) is faced with; this will include an analysis of the company’s bloated cost structure that was followed by the crisis in 2009 that affected their financial performance and productivity in terms of pricing, sales growth, market share and revenue. This analysis will give a clear understanding of the problems that need to be resolved and opportunities that need to be maximised.
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 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.