Case Study on Proctor and Gillette acquisition it includes marketing strategy and promotional strategy. all about its growth and advertiisng overall summary of the case study. https://shopearns.com/

1. CASE STUDY ON – P&G
AND GILLETTE ACQUISITION
: Made By Amna Kouser

2. EXCLUSIVE
SUMMARY
 P&G is one of the fastest and largest growing
consumer goods company.
 P&G’s Shiksha has built 1000+ schools across
India for under- privileged children.
 Gillette is a brand of men’s and women’s safety
razor and other personal care products.
 Gillette merged with P&G for $57 billion.
 On October 1, 2005, Procter & Gamble finalized
its merger with the Gillette Company.
 The Gillette Company’s asset were incorporated
into a P&G unit known internally as “ Global
Gillette”.
 Both the companies benefited from adapting
each other’s technologies and joint research and
development.
 Both firms are strong, diversified companies at
the top of their game.

3.  Both firms had strong management teams
with P&G learning strong cost controls
from Gillette and Gillette learning beauty
care principles from P&G.
 P&G offered 0.975 of its shares for all of
Gillette’s shares.
 P&G announced plans to buy back $18 to
$22 billion of its stock to reduce
stockholders fear.
 After five year of merger i.e., from 2005
to2010 company increased their sales, net
income, profit margin etc.
 But between four i.e., from 2016 to 2016
the company can’t be able to increase
their sales, net income, profit margin as
per the last records.

4. MARKET SIZE AND GROWTH AFTER
MERGER
2005 2010 2016
Sales 53,210 78,938 65,299
Operating
Income
9,666 16,021 13,441
Advertising
Expense
5,804 8,576 7,243
Net Income 6,923 12,736 10,508
Profit Margin 13.0% 16.1% 16.1%

5. P & G
 On October 31,1837 , Procter & Gamble was born.
( William Procter and James Gamble).
 The P & G Company ,based in Cincinnati, Ohio is a
worldwide manufacturer and marketer of a wide
variety of consumer goods.
 In the year 1837, William Proctor and James
Gamble Created a new Company Proctor and
gamble, sold only soap and candles.
 It operates in Five segments : Beauty, Health Care,
Baby Care and Family care, Fabric Care and Home
Care, and Snacks and Coffee.

6. GILLETTE
 The Gillette Company,Inc manufactures and sells
shaving system for men.
 The Company was founded in 1901 and is based in
Boston , Massachusetts.
 1904 King C Gillette receives the US patent for
razor with replaceable blade.
 1905 is the first successful year for the company,
because Gillette sold 90,000 razors and 12 million
blades.

7. WHY P&G ACQUIRE GILLETTE ?
 Gillette’ s core customer segment was men.
 The Gillette company was a market leader in
several product categories including blades &
razors, oral care and batteries.
 Gillette was strong in emerging markets like India
and Brazil where P&G has been always
outperformed by Unilever.
 P&G is already the world’s largest consumer
products company, but the addition of Gillette gives
it new clout with retailers.

8. PROMOTION STRATEGY OF P&G
 P&G insists on pull strategy.
 Heavy advertising and pioneer
 Advertising creativity.
 P&G – A click mortar company
 Coupon.

9. QUESTIONS…
Q 1. Was the new P&G able to confront Walmart and
hold the line on merchandise prices?
Ans: Yes, the new P&G able to confront Walmart and hold
the line on merchandise prices
By Innovations in future like-
 Customer Satisfaction.
 Pricing Strategy.
 Discount Vouchers.
 Effective Advertisement.
 Promotional Activities
 Focus on.

10. Q 2. For the most recent five years of data (2012-2016): have P&G
sales grown at 5%, operating margins reached 25% or
advertising expense decreased?
Ans: No, P&G’s sales does not grown at 5% in last five year and nor
their operating margin reached to 25% and they can not be able to
decrease their advertising expenses.
SALES: 2012 its 73,138 and 2016 its just 65,299.
OPERATING MARGIN: 2012 its 12,495 and 2016 its 13,441.
ADVERTISING EXPENSES: 2012 its 7,839 and 2016 its
7,243.
REASONS:
 P&G faces several challenges, but the greatest has been market
share loss,
 Consumer used to trust big brands
 Hyper growth of natural , organic and wellness.
 Local brands are growing 2X faster than their multi-national brands.
 Smaller traditional Consumer Packaged Goods (CPG) are growing
3X faster than large ones.

11. Q 3. What can Gillette do to achieve the
promised sales growth rate of 5% and operating
margins approaching 25%?
Ans: Here are some basic steps the company can
take to improve their sales performance , reduce
their cost of selling and ensure their survival:
 Clarify mission and vision.
 Sell according to customer needs.
 Create and maintain favourable attention.
 Ask, listen and act.
 Health beneficial.
 Reducing cost of the product.
 Advertisement.
 Marketing campaigns.