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A
PRESENTATION
ON
STRATEGIES ADOPTED
BY
PROCTER & GAMBLE
By
Debasis sahoo
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.
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
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
 Product line
 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”
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.
CORPORATE STRATEGY (Horizontal Growth
Strategy)
Increasing value creation for investors,
Innovation through new products as well as efficient
operations,
Increased operating productivity,
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.
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.
DISTRIBUTION
Manufacturers P&G
Wholesalers/distributors
Retailers
Consumers and organizational end users
Marketing agent (state wise)
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
Promotion strategy
P&G insists on a pull strategy
Heavy advertising and media pioneer
Advertising creativity
DIFFERENT PRICING STRATEGIES ADOPTED BY
P&G
Optional-features strategy
Product-line pricing
Cost-plus pricing
Competitive pricing
EPRG strategies of P&G
ETHINOCENTRIC POLYCENTRIC
REGIOCENTRIC GEOCENTRIC
Thank you

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presentation on strategies adopted by P&G

  • 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.
  • 11. DISTRIBUTION Manufacturers P&G Wholesalers/distributors Retailers Consumers and organizational end users Marketing agent (state wise)
  • 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
  • 13. Promotion strategy P&G insists on a pull strategy Heavy advertising and media pioneer Advertising creativity
  • 14. DIFFERENT PRICING STRATEGIES ADOPTED BY P&G Optional-features strategy Product-line pricing Cost-plus pricing Competitive pricing
  • 15. EPRG strategies of P&G ETHINOCENTRIC POLYCENTRIC REGIOCENTRIC GEOCENTRIC

Editor's Notes

  1. MERCK KGAA