2. INTRODUCTION
Procter & Gamble (P&G) is a Fortune 500American multinational
corporation headquartered in downtown, Cincinnati, Ohio. Manufactures a
wide range of consumer goods.
Fortune magazine ranked P&G at fifth place of the "World's Most Admired
Companies" list, which was up from sixth place in 2010.
P&G is credited with many business innovations including brand management and
"Connect & Develop" innovation.
According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than
any other company.
3. Financial condition
Net sales - $65.3 billions in 2016-17 year in globally decreased 5.4 billion against 2015-16 fy
In India net sales -2482 crore increased 194.3 crore
Profit after tax is 423 crore and spent 8.45 crore in CSR activities
11%
11%
32%18%
28%
Sales globally
grooming
health care
fabric and home
care
beauty
baby,feminine
and family are
4. Strengths:
• Diversified brand portfolio
• Research and Development
• Global Operation
• Strong Distribution Network
Weakness:
• Missing Opportunity
• Weakness in beauty care division
Opportunity
• Diversification
• Growth in Indian FMCG market
• Environment concern
Threats:
• Competition
6. MISSION
“We will provide branded products and services of superior quality
and value that improve the lives of the world’s consumers, now and for
generations to come. As a result, consumers will reward us with
leadership sales, profit and value creation, allowing our people, our
shareholders and the communities in which we live and work to
prosper”
VISION
“Be, and be recognized as, the best consumer products and services
company in the world”
7. OBJECTIVE
CORPORATE OBJECTIVE
Deliver total shareholder return in the top one-third of their peer group
2nd objective is to return up to $70 billion to shareowners in the next four years through a combination of
dividend payments, share retirement, and share repurchases
BUSINESS OBJECTIVES
Organic sales growth above market growth rates in the categories, and geographies in which they compete.
FUNCTIONAL OBJECTIVE
Functional objectives are investing more in research and development to faster product innovation, and to
reduce costs such as overhead, marketing, and trade spending.
8. CORPORATE STRATEGY (Horizontal Growth
Strategy)
Increasing value creation for investors,
Innovation through new products as well as efficient
operations,
Increased operating productivity,
9. BUSINESS STRATEGY (Differentiation)
The Firm believes through moving to fewer categories, brands,
initiatives, product lines, and SKU’s, along with consolidation of current
plants, agencies, suppliers, and organizations will lead to lower costs in
overhead, cost of goods sold, marketing and trade spending.
These savings can then be reinvested to accelerate the growth of leading
brands, creating a symbiotic relationship between cost savings, and a
stronger focus on value creating categories for the Firm.
10. FUNCTIONAL SRATEGIES
Invest more than $2 billion dollars in research and development
annually. Examples of these investments are Pampers Swaddlers
and Pants, Tide PODS, the Gillette FlexBall, and many others.
These products offer patented aspects, which are not found in
competing products, and, as logically follows, will have the
propensity to boost category, and brand sales.
12. PORTER,’S FIVE FORCES MODEL
Threat
Of
Competition
HIGH
Threat
Of
New
Entrance
LOW-
MODERATE
BARGAINING
POWER OF
SUPPLIER
LOW
THREAT OF
SUBSTITUTE
HIGH
BARGAINING
POWER OF
BUYERS
HIGH