Touching lives, Improving life. PRESENTED BY : SAURABH
Procter & Gamble (P&G) is a Fortune500 American multinational corporation.It is a public company founded in 1837 by William Procter and James Gamble. Headquarteredin downtown Cincinnati, Ohio U.S. and manufactures a wide range of consumer goods.The present chairman & CEO of the company is Bob McDonald.Revenue : US$ 82.56 billion (FY 2011)
William Procter, a candlemaker, and James Gamble, a soapmaker, immigrated from England and Ireland to U.S. respectively.On the suggestion of theirFather-in-law Alexander Norris,Procter and Gamble wasformed on 31 october 1837.The company began by sellingsoap and candles in CincinnatiU.S.
1859 P&G sales reached a milestone of $1 million1879 The inexpensive, but high-quality Ivory-soap was introduced.1924 P&G is one of the first to create a market research department to study consumer preferences and buying habits.1955 Crest, the first toothpaste with fluoride clinically proven to fight cavities, was introduced.1961 Pampers were introduced and eventually replaces cloth diapers.1980 Sales reach $10 billion2005 High Frequency Stores, Consisting of nearly 20 million stores across the world, FS represents a particular opportunity in fast-growing low income markets.
P&G operates over 180 countries worldwideHaving 50 leadership brands that are some of the most well known household namesTouching the lives of 4.4 billion consumer and generating the profit of $82.56 billion.
MISSIONWe will provide branded products & service ofsuperior quality and value that improve the lives ofthe world`s consumers, now and for generation tocome.VISION“Be, and be recognized as the best consumer products and service company in the world.”
A company that improves hygiene, health and development. Touching lives, Improving life.
P&G touching and improving the lives of more consumers,with innovative products that expand their categoryportfolios vertically up and down value tiers—deliveringthe right combination of performance and value to everyconsumer. Delighting Consumers with Crest in China P&G reaching more consumers in China with the launch of Crest Pro-Health, P&G’s best toothpaste technology. Tide in India.
P&G touching and improving lives in more parts of theworld, by innovating and expanding their business intonew geographies where they didn’t previously compete. Olay in Mexico. Targeting rural market in south africa and kenya.
P&G touching and improving lives more completely byinnovating to enhance the performance of existingproducts, by creating or entering adjacent categoriesand by driving regimen use that broadens their productportfolios and improves consumers’ experiences withtheir brands. Pampers in the U.S. Gillete in U.S
-Cosmetics, Hair Color, Hair Care, Skin Care-Laundry care, Dish Soap, Fabric Enhancers-Oral Care, Feminine Care, Snacks & Pet Care-Diapers, Paper Towels, Toilet Papres
STRATEGYExpanding by acquisitions Acquisition of a Gillette was a major strategicHuge R&D move. Natura, a holistic and naturals pet productsHeavy advertiser company. Nioxin, a leader in the scalp care &Moving into pet care & hair care. pet insurance
P&G acquired Gillette in 2005 and this acquisition was called aperfect fit.The main advantages over the acquisition were :Availability of new marketNew distribution channels (GILLETTE’S)Elimination of competitors from the marketBetter bargaining power with retailers
STRATEGIES CONTD.. STRATEGY P&G spends about $2Expanding by aquisitions billion a year in Research & Development-Huge R&D About 60% more than our next closest competitorHeavy advertiser and more than most of our competitors combined.Moving into pet care & pet insurance
STRATEGIES CONTD.. STRATEGY P&G spends 10% of theirExpanding by aquisitions sales on advertising beating all of their compepititors.Huge R&D Digital advertising is moreHeavy advertiser focused in terms of reaching audience. Facilitated byMoving into pet care & search engine advertising pet insurance and social networking websites such as Facebook and Twitter.
STRATEGIES CONTD.. STRATEGYExpanding by aquisitions Pet care & Pet insurance is a blue ocean Where P&G is the first mover.Huge R&DHeavy advertiser Thus P&G can gain a lot out of this market.Moving into pet care & pet insurance
The intensity of rivalry is very high in this industry.P&G has several strong competitors in different marketslike : Amway Corporation, Colgate-Palmolive Company, Kimberly-Clark, Johnson & Johnson, Revlon, Unilever and other big and medium sized competitors HIGH MEDIUM LOW
The enormous amount of products that are distributed under Procter & Gambles name creates a challenge for new entrants. Since the P&G possess a significant amount of market shares around the world, a potential competitor that lack large sums of capital for heavy marketing and research and development, would hardly be able to effectively compete. HIGH MEDIUM LOW
P&G is heavily dependent on Wal-Mart and its affiliates for generating a major part of its revenue. Sales to Wal-Mart and its affiliates have represented approximately 15% of its total revenue since 2006 thus creating the “Wal-Mart effect.” High dependence upon Wal-Mart reduces the bargaining power of P&G. Wal-Mart could use its bargaining power to impose unfavorable terms on the company. HIGH MEDIUM LOW
P&G has a codependent relationship with most of its suppliers. Suppliers of materials also need key customers like P&G for profitable revenue generation and will very likely have little bargaining power because of its small size. P&G can use its tremendous size and large amounts of available cash to its advantage during this current credit crisis. HIGH MEDIUM LOW
There is substantial number of substitutes for all of P&Gs product offerings, creating an intense competitive environment. In order to differentiate itself, the P&G must continue to provide new, cutting edge, and innovative products and branding to the customer. HIGH MEDIUM LOW
Strong brand name Overdependence on mature marketR&D Lack of diversified customerGlobal operations portfolioStrong distribution Quality Control infrastuctureStrong performance in core businesses
Emerging & developing Intense competition markets Increase in Cost ofAcquisitions raw materialsNovel Products Government RegulationFree market economies increasing in Asia