Procter and Gramble

In: Business and Management

Submitted By Kemsocola45
Words 961
Pages 4
CASE 9: PROCTER GAMBLE
Procter & Gamble (P&G) is one of the most skilled marketers of consumer packaged goods. It markets the leading brand in 19 of the 39 categories in which it competes. Its average market share is close to 25 percent. Its market leadership rests on several principles: * Customer knowledge: P&G studies its customers—both final consumers and the trade—through continuous marketing research and intelligence gathering. It prints its toll-free 800 number on every product. * Long-term outlook: P&G takes the time to analyze each opportunity carefully and prepare the best product, then commits itself to making this product a success. It struggled with Pringles potato chips for almost a decade before achieving market success. * Product innovation: P&G is an active product innovator, devoting $1.7 billion (4 percent of sales) to research and development, an impressively high amount for a packaged-goods company. Part of its innovation process is developing brands that offer new consumer benefits. Recent examples include Febreze, an odor-eliminating fabric spray; Dryel, a product that allows consumers to clean and freshen "dry clean only" clothes at home; and Swifter, a new cleaning system that more effectively removes dust, dirt, and hair from floors and other hard surfaces. * Quality strategy: P&G designs products of above-average quality and continuously improves them. When P&G announces "new and improved," it means it. Recent examples include Tide and Ariel compact detergents that remove stains and sanitize laundry while protecting original fabric colors; and Pampers Rash Guard, the only diaper designed to treat and prevent diaper rash. * Line-extension strategy: P&G produces its brands in several sizes and forms. This strategy gains more shelf space and prevents competitors from moving in to…...

Similar Documents

Procter & Gamble

...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...

Words: 6272 - Pages: 26

Procter and Gamble

...Unit 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......

Words: 1277 - Pages: 6

Procter and Gamble

...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......

Words: 1887 - Pages: 8

Procter & Gamble

... | |Procter & Gamble Switches to Microsoft to Improve Productivity and Reduce Costs | | |[pic] | | | | | | | | | | | | | |Overview | | |“With the Microsoft solution, we were able to improve collaboration and reduce costs at the same | |Country or Region: United States | | |time.” | |Industry: Manufacturing—Consumer goods | | |Jeff Nicolai, Service Manager for eMail and Web Content, P&G | | | | | | |Customer Profile | | | | |Procter & Gamble is the world’s leading | | | ...

Words: 2995 - Pages: 12

Procter and Gamble

...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......

Words: 843 - Pages: 4

Procter & Gamble:

...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......

Words: 3374 - Pages: 14

Procter&Gamble

...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......

Words: 1738 - Pages: 7

Procter and Gamble

...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......

Words: 625 - Pages: 3

Procter & Gamble

...1. Procter & Gamble’s business strategy is to maintain the popularity of its existing brand, through advertising and marketing; extend its brands by developing new products under those brands; and innovate and create new brands entirely from scratch. Collaboration and innovation are key to this business strategy. Collaboration between researchers, marketer, and mangers is critical to the success of Procter & Gamble. With the presence of collaboration software, P&G’s employees are able to participate in the process in real time. The presence of the collaboration software has allowed for more efficient flow of ideas and quicker decision making regarding the new products/brands. 2. Procter & Gamble is using collaboration systems to help execute the business model allowing multiple employees, in several locations and departments, to access the information quickly and to provide feedback instantly. The collaboration systems that P&G uses are: instant messaging – this allows the employee to have real time access to input from other employees, Unified communications – integrates voice transmission, data transmission, e-mail, instant messaging, and electronic conferencing, this allows the users to share calendars and mailboxes more efficiently. Web Conferencing with Live Meeting – allows people in different geographic locations to participate in real time in collaboration meetings. 3. The collaboration systems allow for P&G researchers to share the data they have collected on......

Words: 476 - Pages: 2

Procter and Gamble

...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......

Words: 2777 - Pages: 12

Procter & Gample

...* How information systems are helping the company To keep its place as one of the leading consumer product goods companies, Procter & Gamble is focused on understanding the current market state and predicting how future market changes affect consumer behavior and global brand strategy. P&G tasked the MIS team with two projects to support these goals. Firstly, the team developed a method of estimating key consumer metrics by country and built an application to facilitate analysis of these metrics and assessment of future opportunities. In addition, the team created a process by which specific brand measures could be compared over time and assessed for positive growth. Secondly, the team has benchmarked and recommended a data visualization solution for global market and economic data to aid decision makers’ focus on salient issues. This recommendation will be supplemented by a selection of customized graphs and dashboards, focusing on important concepts and trends. With these new capabilities, P&G will be better able to identify where current and new market opportunities lie, and how it can successfully implement its brand strategy in those areas. Currently, the team has completed all major deliverables and is preparing for its final presentation. The project has been a valuable learning experience for the team, exposing them to the fast-paced world of marketing strategy and analytics. MIS program allows students to work on real projects that provide real......

Words: 256 - Pages: 2

Procter & Gamble

...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......

Words: 2269 - Pages: 10

Procter & Gamble

...Procter & Gamble First of all, an animal is not a human being, so they will respond differently than us humans. Even if there were bad reactions from a drug taken by the animals, that doesn’t mean it is safe for humans to consume. You can look up many examples of drugs that have been recalled because of the dangerous effects it had on humans, even after animal testing. These experiment and testing situations can make animals suffer severely every year. There are many strict guidelines and standards set by PETA that are supposed to make sure that animals are treated well and to reduce the suffering, but still there are many companies that are violating these rules and still abusing animals. What it all comes down to is ethics and your own ethical behavior. To me, I personally believe that animal testing is unethical behavior and is just plain cruel. Also PETA’s members and supporters are increasing significantly every year. More people are standing up and voicing their opinion against animal testing. With more people acting against animal testing, this is raising the ethical intensity to a new level. Mope people can lead to larger negative consequences, with a clear agreement that the decision to keep animal testing will lead to larger negative consequences and a high ethical intensity. Also you must look at what is socially responsible and who you are to be socially responsible to. Many economists and financial analysts still argue that organizations are only to......

Words: 489 - Pages: 2

Procter and Gamble

...“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......

Words: 957 - Pages: 4

Procter and Gamble

...brand Skip, launched the first “ecological” laundry detergent (Skip Petit et Puissant). We thus recommend to create a new detergent to match with the evolution of the market. For Dash2in1 and Vizir, because the volume shares are quite low comparing them with Ariel, it is not worthwhile to do a heavy promotion for them. Instead, we can put a sample of Dash2in1 and Vizir laundry detergent into the package of Ariel so that our customers have the chance to try it, because Dash2in1 has more functions than Ariel, and Vizir can be an alternative liquid laundry in P&G, so they may bring more benefits to our customers and assuming so many people never try Dash2in1 and Vizir by their low volume shares. Bonux may be seen as the true dilemma of Procter & Gamble. This brand is weakening, loosing market shares and market penetration every month, and represents an always decreasing share of P&G’s benefits. As a consequence, we have to make a decision to change this situation: we could abandon the brand, loosing very few benefits and market penetration that would easily be recovered with another P&G brand, but we can also undertake a total reconstruction of the brand, to give her a second youth. The idea would be to create a whole new image of the brand: renew the aging packaging, design a new advertising campaign, with audio, video and paper ads, and sales promotions in partnership with low cost retailers like ED, Lidl or Netto. Question 4: In a broader view and to get......

Words: 3239 - Pages: 13

Siti Badriah Lagi Syantik Versi Dj | Common App Essay | DJDONI Perú