SlideShare a Scribd company logo
1 of 3
Situational Analysis

Internal Environment

Parent company, Proctor and Gamble (P&G) dominate the consumer and household products with over
$56 Billion in sales annually. Seventeen of their product lines do over one billion each year. They have
a good system in place, which is heavily focused on innovation and product expansions. P&G is a
global company that can take most products everywhere. 80% of their markets grew last year in
volume. They have great brand recognition and brand equity. Any product that they launch has a good
chance of survival, thanks to P&G’s time tested marketing and distribution system. Commitment to
innovation and R&D helps keep them in front of the pack.

P&G was formed in 1937 by William Proctor and James Gamble. The first P&G products offered were
soap and candles. Throughout the years P&G have created new products and innovation. In 2005, P&G
and Gillette merged giving the company an even more diverse line up of products. Oral B, Braun,
Gillette, and Duracell all came to see P&G as home. The latest billion-dollar brand for P&G was
Actonel, which is used to fight osteoporosis. Actonel was released in 2004.

P&G are very active in philanthropy causes. The P&G Fund contributed $39.5 million to educational
institutions, envirnomental causes, and health services. P&G is the leader in contributing to Second
Harvest, to feed the less fortunate here in the United States. P&G received the Hunger Hope Award in
1998. P&G donated $2.5 million to 9/11 support efforts.

The company’s foundation is based on a set of core values.

Leadership
Integrity
Trust
Ownership
Passion for winning

P&G proudly proclaim that “innovation is the corner store of our success”. With good reason, even
mature markets such as household cleaning. P&G has managed to create a winning brand.

Swiffer accounts for 75% of the quick-clean segment and is growing at about 7% in terms of sales per
year. The original dry Swiffer was a hit and they quickly brought out product extensions that did well
and a few that did not. The Carpet flick of late has been underperforming. Last year the three main
Swiffer products sold approximately 220.4 million.

P&G is internally and culturally the perfect breading ground for consumer product homer-runs. They
are known for putting resources in the right place to get products in winning positions. They have a
focus on end user convenience and value added features that set them apart as well as increase
consumer satisfaction and margins.

Customer Environment

Swiffer has certain segments that are focused but over all this is a mass marketing product. Every one
who has a floor to clean or something to dust is a potential customer. Today, it is no secret that people
are willing to pay a premium for convenience specifically when that convenient product really delivers!
Starbucks is a great example of consumer’s elastic demand for quick coffee that is very good and
consistent. The cleaning industry is very similar. Ease and quick are the key messages that are selling
cleaning products second to that is extra sanitation and cleanliness. Young people are looking for an
easier and quicker way to do all the basic household activities and older more set in their ways people,
have an open eye for a times saver that actually does the job well. The price point of the Swiffer also
makes it a demographic sweep. Almost any age group or income level can justify paying for this
convenience.

Part of the consumer base, are those who have converted to Swiffer products completely. They do not
have the traditional mop and bucket in the closet. They use a Swiffer when they have a spill and when
they just need to mop or clean floors.
Another part of the mix, are those who have not given up on the traditional cleaning products and
procedures. However, they view the Swiffer line as a quick fix or band aid product, for when they are
crunched for time or when there is just a small clean that needs to be done.

Busy,busy,busy

Key Factors that influence Purchases of Swiffer

Swiffer being the first in the quick clean game naturally gets some benefits in terms of product
recognition and brand loyalty. They are looked at as the leader and the innovator and then the original,
almost a classic. Another thing that is helpful for Swiffer is that the P&J clout gets them the choicest
shelf space and store position. They make it easy to identify and find, like most P&G products. The
product is available just about anywhere you can buy groceries or cleaning supplies. The big guys
(Wal-Mart, Target, and Meijer etc.) and the small players (small chains and mom and pops) generally
have P&G representation.

There are also other issues that have more to do with the product, rather than things that can be directly
creditable to P&G. Although they are because of the way P&G takes pride in their products. The
Swiffer is easy to use, reasonably priced, and very durable. The real profit potential is in the refills.
This is where the majority of the margin comes in, thus they can offer the equipment at very low price.
This is a great way of increasing trial and encourages having multiple units in one household.

In 1999 the quick clean industry did not even exist. Swiffer and P&G started a completely new market
that now brings in over 220 million per year. Pricing has been key, and promotion of the (ease of use)
convenience and sanitary features have all combined to catapult this niche and change consumer
behavior.

Competitor Environment

Although there are over ten brands that compete with Swiffer in the quick clean category or in a
substitute category, the top three brands are held by Swiffer. After that, the next four contenders are
Quickie, Libman, Pledge Grab it, and Clorox Ready Mop with 33.2 million, 30.2 million, 22.9 million,
and 22.4 million in 2005 sales respectively. Quickie is over 13 million behind the third place Swiffer
Wet Jet and just over 86 million behind the original Swiffer. Some other notable competitors that we
will not focus on are Quickie Home Pro, Ever care, and private label brands. These brands only
combined for about 40 million in sales in 2005. Few of these brands have nearly the product extension
as Swiffer. And the Prices are very similar and almost a non factor.
P&G Situational Analysis of Swiffer Quick Clean Products

More Related Content

What's hot

INTEGRATING MARKETING COMMUNICATION
INTEGRATING MARKETING COMMUNICATIONINTEGRATING MARKETING COMMUNICATION
INTEGRATING MARKETING COMMUNICATIONYIGIT ACIKAY
 
AB InBev - Strategic Company Analysis
AB InBev - Strategic Company AnalysisAB InBev - Strategic Company Analysis
AB InBev - Strategic Company AnalysisFranziska Becker
 
Strategic Analysis of Unilever
Strategic Analysis of UnileverStrategic Analysis of Unilever
Strategic Analysis of UnileverTouseef Ahmed
 
Naming Architecture: A Blueprint for Portfolio Simplicity
Naming Architecture: A Blueprint for Portfolio SimplicityNaming Architecture: A Blueprint for Portfolio Simplicity
Naming Architecture: A Blueprint for Portfolio SimplicitySiegel+Gale
 
Brand Architecture Process
Brand Architecture ProcessBrand Architecture Process
Brand Architecture ProcessFullSurge
 
B2B Channel Partners: Can These Relationships be Saved?
B2B Channel Partners: Can These Relationships be Saved?B2B Channel Partners: Can These Relationships be Saved?
B2B Channel Partners: Can These Relationships be Saved?accenture
 
Linde - Praxair Merger : The Devil is in the Detail
Linde - Praxair Merger : The Devil is in the DetailLinde - Praxair Merger : The Devil is in the Detail
Linde - Praxair Merger : The Devil is in the DetailJosef David
 
Spotify vs Apple Music: a strategic fight for the music streaming industry
Spotify vs Apple Music: a strategic fight for the music streaming industrySpotify vs Apple Music: a strategic fight for the music streaming industry
Spotify vs Apple Music: a strategic fight for the music streaming industryFederico Catellani
 
Business Strategy of Hyundai with respect to a Fuel Cell car in ...
Business Strategy of Hyundai with respect to a Fuel Cell car in ...Business Strategy of Hyundai with respect to a Fuel Cell car in ...
Business Strategy of Hyundai with respect to a Fuel Cell car in ...butest
 
Porters Five forces for Advertising and Branding Industry
Porters Five forces for Advertising and Branding IndustryPorters Five forces for Advertising and Branding Industry
Porters Five forces for Advertising and Branding IndustryPradeep Loganathan
 
7up Advertising Campaign
7up Advertising Campaign7up Advertising Campaign
7up Advertising CampaignJessica Dunning
 
Business model innovation for sanitation services
Business model innovation for sanitation servicesBusiness model innovation for sanitation services
Business model innovation for sanitation servicesHeiko Gebauer
 
Best buy marketing research
Best buy marketing researchBest buy marketing research
Best buy marketing researchJason Tham
 
Brand Building 101
Brand Building 101Brand Building 101
Brand Building 101simderob
 
How to build a Influencer Marketing Plan
How to build a Influencer Marketing PlanHow to build a Influencer Marketing Plan
How to build a Influencer Marketing PlanCarole Lamarque
 

What's hot (20)

INTEGRATING MARKETING COMMUNICATION
INTEGRATING MARKETING COMMUNICATIONINTEGRATING MARKETING COMMUNICATION
INTEGRATING MARKETING COMMUNICATION
 
AB InBev - Strategic Company Analysis
AB InBev - Strategic Company AnalysisAB InBev - Strategic Company Analysis
AB InBev - Strategic Company Analysis
 
Developing a Brand Strategy
Developing a Brand StrategyDeveloping a Brand Strategy
Developing a Brand Strategy
 
Strategic Analysis of Unilever
Strategic Analysis of UnileverStrategic Analysis of Unilever
Strategic Analysis of Unilever
 
Naming Architecture: A Blueprint for Portfolio Simplicity
Naming Architecture: A Blueprint for Portfolio SimplicityNaming Architecture: A Blueprint for Portfolio Simplicity
Naming Architecture: A Blueprint for Portfolio Simplicity
 
Brand Architecture Process
Brand Architecture ProcessBrand Architecture Process
Brand Architecture Process
 
B2B Channel Partners: Can These Relationships be Saved?
B2B Channel Partners: Can These Relationships be Saved?B2B Channel Partners: Can These Relationships be Saved?
B2B Channel Partners: Can These Relationships be Saved?
 
Linde - Praxair Merger : The Devil is in the Detail
Linde - Praxair Merger : The Devil is in the DetailLinde - Praxair Merger : The Devil is in the Detail
Linde - Praxair Merger : The Devil is in the Detail
 
brand equity
brand equitybrand equity
brand equity
 
Spotify vs Apple Music: a strategic fight for the music streaming industry
Spotify vs Apple Music: a strategic fight for the music streaming industrySpotify vs Apple Music: a strategic fight for the music streaming industry
Spotify vs Apple Music: a strategic fight for the music streaming industry
 
Red Bull
Red BullRed Bull
Red Bull
 
Business Strategy of Hyundai with respect to a Fuel Cell car in ...
Business Strategy of Hyundai with respect to a Fuel Cell car in ...Business Strategy of Hyundai with respect to a Fuel Cell car in ...
Business Strategy of Hyundai with respect to a Fuel Cell car in ...
 
Porters Five forces for Advertising and Branding Industry
Porters Five forces for Advertising and Branding IndustryPorters Five forces for Advertising and Branding Industry
Porters Five forces for Advertising and Branding Industry
 
7up Advertising Campaign
7up Advertising Campaign7up Advertising Campaign
7up Advertising Campaign
 
Business model innovation for sanitation services
Business model innovation for sanitation servicesBusiness model innovation for sanitation services
Business model innovation for sanitation services
 
Brand Element
Brand ElementBrand Element
Brand Element
 
Best buy marketing research
Best buy marketing researchBest buy marketing research
Best buy marketing research
 
Brand Building 101
Brand Building 101Brand Building 101
Brand Building 101
 
How to build a Influencer Marketing Plan
How to build a Influencer Marketing PlanHow to build a Influencer Marketing Plan
How to build a Influencer Marketing Plan
 
Internal Branding
Internal BrandingInternal Branding
Internal Branding
 

Viewers also liked

Case Study_ Swiffer SWOT Analysis.doc
Case Study_  Swiffer SWOT Analysis.docCase Study_  Swiffer SWOT Analysis.doc
Case Study_ Swiffer SWOT Analysis.docJohnny Schaefer
 
Presentation_ The Future of Swiffer.ppt
Presentation_  The Future of Swiffer.pptPresentation_  The Future of Swiffer.ppt
Presentation_ The Future of Swiffer.pptJohnny Schaefer
 
Mops sport
Mops sportMops sport
Mops sportRawaam
 
Job Description Pwr Pnt Oct 07
Job Description Pwr Pnt Oct 07Job Description Pwr Pnt Oct 07
Job Description Pwr Pnt Oct 07BigHullkDiesel
 
Mikromarc i Backspegln
Mikromarc i BackspeglnMikromarc i Backspegln
Mikromarc i Backspeglnvkp1970
 
Sonim Analyst Deck 28 October 2011
Sonim Analyst Deck  28 October 2011Sonim Analyst Deck  28 October 2011
Sonim Analyst Deck 28 October 2011Sanjay Jhawar
 
Case Study_ Indiana Transportation Growth.doc
Case Study_  Indiana Transportation Growth.docCase Study_  Indiana Transportation Growth.doc
Case Study_ Indiana Transportation Growth.docJohnny Schaefer
 
Reklame Brukermøte Bergen 2011
Reklame Brukermøte Bergen 2011Reklame Brukermøte Bergen 2011
Reklame Brukermøte Bergen 2011vkp1970
 
Case Study_ J. Peterman.doc
Case Study_  J. Peterman.docCase Study_  J. Peterman.doc
Case Study_ J. Peterman.docJohnny Schaefer
 
The Podcast History of Our World: Egypt, Episode 11: Visual Notes
 The Podcast History of Our World: Egypt, Episode 11: Visual Notes The Podcast History of Our World: Egypt, Episode 11: Visual Notes
The Podcast History of Our World: Egypt, Episode 11: Visual Notesjeffmarshall
 
Dieppe: Blunder or Valuable Lesson?
Dieppe: Blunder or Valuable Lesson?Dieppe: Blunder or Valuable Lesson?
Dieppe: Blunder or Valuable Lesson?jeffmarshall
 
The Middle East in the 20th Century
The Middle East in the 20th CenturyThe Middle East in the 20th Century
The Middle East in the 20th Centuryjeffmarshall
 
Bidang pembelajaran-4-1
Bidang pembelajaran-4-1Bidang pembelajaran-4-1
Bidang pembelajaran-4-1Bazlin Ahmad
 

Viewers also liked (20)

Case Study_ Swiffer SWOT Analysis.doc
Case Study_  Swiffer SWOT Analysis.docCase Study_  Swiffer SWOT Analysis.doc
Case Study_ Swiffer SWOT Analysis.doc
 
Presentation_ The Future of Swiffer.ppt
Presentation_  The Future of Swiffer.pptPresentation_  The Future of Swiffer.ppt
Presentation_ The Future of Swiffer.ppt
 
Mops sport
Mops sportMops sport
Mops sport
 
Gilette Case Study
Gilette Case StudyGilette Case Study
Gilette Case Study
 
Job Description Pwr Pnt Oct 07
Job Description Pwr Pnt Oct 07Job Description Pwr Pnt Oct 07
Job Description Pwr Pnt Oct 07
 
Mikromarc i Backspegln
Mikromarc i BackspeglnMikromarc i Backspegln
Mikromarc i Backspegln
 
Ai
AiAi
Ai
 
Sonim Analyst Deck 28 October 2011
Sonim Analyst Deck  28 October 2011Sonim Analyst Deck  28 October 2011
Sonim Analyst Deck 28 October 2011
 
Case Study_ Indiana Transportation Growth.doc
Case Study_  Indiana Transportation Growth.docCase Study_  Indiana Transportation Growth.doc
Case Study_ Indiana Transportation Growth.doc
 
Reklame Brukermøte Bergen 2011
Reklame Brukermøte Bergen 2011Reklame Brukermøte Bergen 2011
Reklame Brukermøte Bergen 2011
 
Joomla 1.5 Quick Start
Joomla 1.5 Quick StartJoomla 1.5 Quick Start
Joomla 1.5 Quick Start
 
BK Chapter 6.pdf
BK Chapter 6.pdfBK Chapter 6.pdf
BK Chapter 6.pdf
 
Case Study_ J. Peterman.doc
Case Study_  J. Peterman.docCase Study_  J. Peterman.doc
Case Study_ J. Peterman.doc
 
The Podcast History of Our World: Egypt, Episode 11: Visual Notes
 The Podcast History of Our World: Egypt, Episode 11: Visual Notes The Podcast History of Our World: Egypt, Episode 11: Visual Notes
The Podcast History of Our World: Egypt, Episode 11: Visual Notes
 
Dieppe: Blunder or Valuable Lesson?
Dieppe: Blunder or Valuable Lesson?Dieppe: Blunder or Valuable Lesson?
Dieppe: Blunder or Valuable Lesson?
 
The Middle East in the 20th Century
The Middle East in the 20th CenturyThe Middle East in the 20th Century
The Middle East in the 20th Century
 
Bidang pembelajaran-4-1
Bidang pembelajaran-4-1Bidang pembelajaran-4-1
Bidang pembelajaran-4-1
 
Take A Glimpse
Take A GlimpseTake A Glimpse
Take A Glimpse
 
Gallery
GalleryGallery
Gallery
 
Campaigns pt 2.ppt
Campaigns pt 2.pptCampaigns pt 2.ppt
Campaigns pt 2.ppt
 

Similar to P&G Situational Analysis of Swiffer Quick Clean Products

PPM IT assignmnent 2 16030141080
PPM IT assignmnent 2 16030141080PPM IT assignmnent 2 16030141080
PPM IT assignmnent 2 16030141080neetzm
 
Procter And Gamble : Marketing capabilities
Procter And Gamble : Marketing capabilitiesProcter And Gamble : Marketing capabilities
Procter And Gamble : Marketing capabilitiesAjinkya Pujari
 
Procter and Gamble HRM report 2015 NAR
Procter and Gamble HRM report 2015 NARProcter and Gamble HRM report 2015 NAR
Procter and Gamble HRM report 2015 NARStudent JUW
 
Procter & Gamble Co-A Brief Discussion of P&G.
Procter & Gamble Co-A Brief Discussion of P&G.Procter & Gamble Co-A Brief Discussion of P&G.
Procter & Gamble Co-A Brief Discussion of P&G.Rizwan Khan
 
Procter & Gamble-Harvard Case Study
Procter & Gamble-Harvard Case StudyProcter & Gamble-Harvard Case Study
Procter & Gamble-Harvard Case StudyShubham Maniyar
 
P&G - The Marketing Revolutionaries
P&G - The Marketing RevolutionariesP&G - The Marketing Revolutionaries
P&G - The Marketing RevolutionariesAniruddha Poddar
 
Procter and Gamble Marketing Management
Procter and Gamble Marketing ManagementProcter and Gamble Marketing Management
Procter and Gamble Marketing ManagementPoonam Sankhe
 
Procter and gamble
Procter and gambleProcter and gamble
Procter and gambleNitish Nakka
 
Marketing Management of P&G India by AKSHAY GAUTAM
Marketing Management of P&G India by AKSHAY GAUTAMMarketing Management of P&G India by AKSHAY GAUTAM
Marketing Management of P&G India by AKSHAY GAUTAMAkshay Gautam
 
Essential Principles of Effective Management: A Concise Guide
Essential Principles of Effective Management: A Concise GuideEssential Principles of Effective Management: A Concise Guide
Essential Principles of Effective Management: A Concise Guidebmodi554
 
19594884 proctor-gamble-powerpoint-strategic-overview
19594884 proctor-gamble-powerpoint-strategic-overview19594884 proctor-gamble-powerpoint-strategic-overview
19594884 proctor-gamble-powerpoint-strategic-overviewGanesh MK
 
Marketing assignment
Marketing assignmentMarketing assignment
Marketing assignmentvishal roy
 
Section 2 Team 9 BP
Section 2 Team 9 BPSection 2 Team 9 BP
Section 2 Team 9 BPMichael Calo
 
procter & Gamble:marketing capabilities
procter & Gamble:marketing capabilitiesprocter & Gamble:marketing capabilities
procter & Gamble:marketing capabilitiesRitesh Ghorse
 
Presentation on P&G
Presentation on P&GPresentation on P&G
Presentation on P&GMian Zahid
 
Tide Market analysis
Tide Market analysisTide Market analysis
Tide Market analysisAkash Patil
 

Similar to P&G Situational Analysis of Swiffer Quick Clean Products (20)

PPM IT assignmnent 2 16030141080
PPM IT assignmnent 2 16030141080PPM IT assignmnent 2 16030141080
PPM IT assignmnent 2 16030141080
 
Procter And Gamble : Marketing capabilities
Procter And Gamble : Marketing capabilitiesProcter And Gamble : Marketing capabilities
Procter And Gamble : Marketing capabilities
 
Procter and Gamble HRM report 2015 NAR
Procter and Gamble HRM report 2015 NARProcter and Gamble HRM report 2015 NAR
Procter and Gamble HRM report 2015 NAR
 
Procter & Gamble Co-A Brief Discussion of P&G.
Procter & Gamble Co-A Brief Discussion of P&G.Procter & Gamble Co-A Brief Discussion of P&G.
Procter & Gamble Co-A Brief Discussion of P&G.
 
Procter & Gamble-Harvard Case Study
Procter & Gamble-Harvard Case StudyProcter & Gamble-Harvard Case Study
Procter & Gamble-Harvard Case Study
 
P&G - The Marketing Revolutionaries
P&G - The Marketing RevolutionariesP&G - The Marketing Revolutionaries
P&G - The Marketing Revolutionaries
 
Procter and Gamble Marketing Management
Procter and Gamble Marketing ManagementProcter and Gamble Marketing Management
Procter and Gamble Marketing Management
 
Procter and gamble
Procter and gambleProcter and gamble
Procter and gamble
 
Marketing Management of P&G India by AKSHAY GAUTAM
Marketing Management of P&G India by AKSHAY GAUTAMMarketing Management of P&G India by AKSHAY GAUTAM
Marketing Management of P&G India by AKSHAY GAUTAM
 
Analysis of P&G
Analysis of P&GAnalysis of P&G
Analysis of P&G
 
Essential Principles of Effective Management: A Concise Guide
Essential Principles of Effective Management: A Concise GuideEssential Principles of Effective Management: A Concise Guide
Essential Principles of Effective Management: A Concise Guide
 
19594884 proctor-gamble-powerpoint-strategic-overview
19594884 proctor-gamble-powerpoint-strategic-overview19594884 proctor-gamble-powerpoint-strategic-overview
19594884 proctor-gamble-powerpoint-strategic-overview
 
Ivory Case Analysis
Ivory Case AnalysisIvory Case Analysis
Ivory Case Analysis
 
Marketing assignment
Marketing assignmentMarketing assignment
Marketing assignment
 
Section 2 Team 9 BP
Section 2 Team 9 BPSection 2 Team 9 BP
Section 2 Team 9 BP
 
p&g analysis_.pdf
p&g analysis_.pdfp&g analysis_.pdf
p&g analysis_.pdf
 
procter & Gamble:marketing capabilities
procter & Gamble:marketing capabilitiesprocter & Gamble:marketing capabilities
procter & Gamble:marketing capabilities
 
Presentation on P&G
Presentation on P&GPresentation on P&G
Presentation on P&G
 
Tide Market analysis
Tide Market analysisTide Market analysis
Tide Market analysis
 
Colgate brand image
Colgate brand imageColgate brand image
Colgate brand image
 

More from Johnny Schaefer

Bingo Generation Style.doc
Bingo Generation Style.docBingo Generation Style.doc
Bingo Generation Style.docJohnny Schaefer
 
Bingo Generation Style.pdf
Bingo Generation Style.pdfBingo Generation Style.pdf
Bingo Generation Style.pdfJohnny Schaefer
 
BK Chapter 1 and Chapter 2.pdf
BK Chapter 1 and Chapter 2.pdfBK Chapter 1 and Chapter 2.pdf
BK Chapter 1 and Chapter 2.pdfJohnny Schaefer
 
Case Study_ Black & Decker.doc
Case Study_  Black & Decker.docCase Study_  Black & Decker.doc
Case Study_ Black & Decker.docJohnny Schaefer
 
Case Study_ Comestics in Nigeria-Marketing Segments.doc
Case Study_  Comestics in Nigeria-Marketing Segments.docCase Study_  Comestics in Nigeria-Marketing Segments.doc
Case Study_ Comestics in Nigeria-Marketing Segments.docJohnny Schaefer
 
Case Study_ I-69 Expansion - Gov. Funding.doc
Case Study_  I-69 Expansion - Gov. Funding.docCase Study_  I-69 Expansion - Gov. Funding.doc
Case Study_ I-69 Expansion - Gov. Funding.docJohnny Schaefer
 
Case Study_ I69 Expansion Environmental Impacts.doc
Case Study_  I69 Expansion Environmental Impacts.docCase Study_  I69 Expansion Environmental Impacts.doc
Case Study_ I69 Expansion Environmental Impacts.docJohnny Schaefer
 
Case Study_ J. Peterman PESTLE Analysis.doc
Case Study_  J. Peterman PESTLE Analysis.docCase Study_  J. Peterman PESTLE Analysis.doc
Case Study_ J. Peterman PESTLE Analysis.docJohnny Schaefer
 
Case Study_ Swiffer Case Study Works Cited.doc
Case Study_  Swiffer Case Study Works Cited.docCase Study_  Swiffer Case Study Works Cited.doc
Case Study_ Swiffer Case Study Works Cited.docJohnny Schaefer
 
Case Study_ Swiffer PESTLE Analysis.doc
Case Study_  Swiffer PESTLE Analysis.docCase Study_  Swiffer PESTLE Analysis.doc
Case Study_ Swiffer PESTLE Analysis.docJohnny Schaefer
 
Case Study_ Tivo in Poland.doc
Case Study_  Tivo in Poland.docCase Study_  Tivo in Poland.doc
Case Study_ Tivo in Poland.docJohnny Schaefer
 
Case Study_ Wellpoint Insurance Summary.doc
Case Study_  Wellpoint Insurance Summary.docCase Study_  Wellpoint Insurance Summary.doc
Case Study_ Wellpoint Insurance Summary.docJohnny Schaefer
 
Case Study_ Wellpoint Insurance.doc
Case Study_  Wellpoint Insurance.docCase Study_  Wellpoint Insurance.doc
Case Study_ Wellpoint Insurance.docJohnny Schaefer
 

More from Johnny Schaefer (20)

Bingo Generation Style.doc
Bingo Generation Style.docBingo Generation Style.doc
Bingo Generation Style.doc
 
Bingo Generation Style.pdf
Bingo Generation Style.pdfBingo Generation Style.pdf
Bingo Generation Style.pdf
 
BK Chapter 1 and Chapter 2.pdf
BK Chapter 1 and Chapter 2.pdfBK Chapter 1 and Chapter 2.pdf
BK Chapter 1 and Chapter 2.pdf
 
BK Chapter 10.pdf
BK Chapter 10.pdfBK Chapter 10.pdf
BK Chapter 10.pdf
 
BK Chapter 3.pdf
BK Chapter 3.pdfBK Chapter 3.pdf
BK Chapter 3.pdf
 
BK Chapter 4.pdf
BK Chapter 4.pdfBK Chapter 4.pdf
BK Chapter 4.pdf
 
BK Chapter 5.pdf
BK Chapter 5.pdfBK Chapter 5.pdf
BK Chapter 5.pdf
 
BK Chapter 8.pdf
BK Chapter 8.pdfBK Chapter 8.pdf
BK Chapter 8.pdf
 
BK Chapter 9.pdf
BK Chapter 9.pdfBK Chapter 9.pdf
BK Chapter 9.pdf
 
Case Study_ Black & Decker.doc
Case Study_  Black & Decker.docCase Study_  Black & Decker.doc
Case Study_ Black & Decker.doc
 
Case Study_ Comestics in Nigeria-Marketing Segments.doc
Case Study_  Comestics in Nigeria-Marketing Segments.docCase Study_  Comestics in Nigeria-Marketing Segments.doc
Case Study_ Comestics in Nigeria-Marketing Segments.doc
 
Case Study_ I-69 Expansion - Gov. Funding.doc
Case Study_  I-69 Expansion - Gov. Funding.docCase Study_  I-69 Expansion - Gov. Funding.doc
Case Study_ I-69 Expansion - Gov. Funding.doc
 
Case Study_ I69 Expansion Environmental Impacts.doc
Case Study_  I69 Expansion Environmental Impacts.docCase Study_  I69 Expansion Environmental Impacts.doc
Case Study_ I69 Expansion Environmental Impacts.doc
 
Case Study_ J. Peterman PESTLE Analysis.doc
Case Study_  J. Peterman PESTLE Analysis.docCase Study_  J. Peterman PESTLE Analysis.doc
Case Study_ J. Peterman PESTLE Analysis.doc
 
Case Study_ K-Mart.doc
Case Study_  K-Mart.docCase Study_  K-Mart.doc
Case Study_ K-Mart.doc
 
Case Study_ Swiffer Case Study Works Cited.doc
Case Study_  Swiffer Case Study Works Cited.docCase Study_  Swiffer Case Study Works Cited.doc
Case Study_ Swiffer Case Study Works Cited.doc
 
Case Study_ Swiffer PESTLE Analysis.doc
Case Study_  Swiffer PESTLE Analysis.docCase Study_  Swiffer PESTLE Analysis.doc
Case Study_ Swiffer PESTLE Analysis.doc
 
Case Study_ Tivo in Poland.doc
Case Study_  Tivo in Poland.docCase Study_  Tivo in Poland.doc
Case Study_ Tivo in Poland.doc
 
Case Study_ Wellpoint Insurance Summary.doc
Case Study_  Wellpoint Insurance Summary.docCase Study_  Wellpoint Insurance Summary.doc
Case Study_ Wellpoint Insurance Summary.doc
 
Case Study_ Wellpoint Insurance.doc
Case Study_  Wellpoint Insurance.docCase Study_  Wellpoint Insurance.doc
Case Study_ Wellpoint Insurance.doc
 

P&G Situational Analysis of Swiffer Quick Clean Products

  • 1. Situational Analysis Internal Environment Parent company, Proctor and Gamble (P&G) dominate the consumer and household products with over $56 Billion in sales annually. Seventeen of their product lines do over one billion each year. They have a good system in place, which is heavily focused on innovation and product expansions. P&G is a global company that can take most products everywhere. 80% of their markets grew last year in volume. They have great brand recognition and brand equity. Any product that they launch has a good chance of survival, thanks to P&G’s time tested marketing and distribution system. Commitment to innovation and R&D helps keep them in front of the pack. P&G was formed in 1937 by William Proctor and James Gamble. The first P&G products offered were soap and candles. Throughout the years P&G have created new products and innovation. In 2005, P&G and Gillette merged giving the company an even more diverse line up of products. Oral B, Braun, Gillette, and Duracell all came to see P&G as home. The latest billion-dollar brand for P&G was Actonel, which is used to fight osteoporosis. Actonel was released in 2004. P&G are very active in philanthropy causes. The P&G Fund contributed $39.5 million to educational institutions, envirnomental causes, and health services. P&G is the leader in contributing to Second Harvest, to feed the less fortunate here in the United States. P&G received the Hunger Hope Award in 1998. P&G donated $2.5 million to 9/11 support efforts. The company’s foundation is based on a set of core values. Leadership Integrity Trust Ownership Passion for winning P&G proudly proclaim that “innovation is the corner store of our success”. With good reason, even mature markets such as household cleaning. P&G has managed to create a winning brand. Swiffer accounts for 75% of the quick-clean segment and is growing at about 7% in terms of sales per year. The original dry Swiffer was a hit and they quickly brought out product extensions that did well and a few that did not. The Carpet flick of late has been underperforming. Last year the three main Swiffer products sold approximately 220.4 million. P&G is internally and culturally the perfect breading ground for consumer product homer-runs. They are known for putting resources in the right place to get products in winning positions. They have a focus on end user convenience and value added features that set them apart as well as increase consumer satisfaction and margins. Customer Environment Swiffer has certain segments that are focused but over all this is a mass marketing product. Every one who has a floor to clean or something to dust is a potential customer. Today, it is no secret that people are willing to pay a premium for convenience specifically when that convenient product really delivers!
  • 2. Starbucks is a great example of consumer’s elastic demand for quick coffee that is very good and consistent. The cleaning industry is very similar. Ease and quick are the key messages that are selling cleaning products second to that is extra sanitation and cleanliness. Young people are looking for an easier and quicker way to do all the basic household activities and older more set in their ways people, have an open eye for a times saver that actually does the job well. The price point of the Swiffer also makes it a demographic sweep. Almost any age group or income level can justify paying for this convenience. Part of the consumer base, are those who have converted to Swiffer products completely. They do not have the traditional mop and bucket in the closet. They use a Swiffer when they have a spill and when they just need to mop or clean floors. Another part of the mix, are those who have not given up on the traditional cleaning products and procedures. However, they view the Swiffer line as a quick fix or band aid product, for when they are crunched for time or when there is just a small clean that needs to be done. Busy,busy,busy Key Factors that influence Purchases of Swiffer Swiffer being the first in the quick clean game naturally gets some benefits in terms of product recognition and brand loyalty. They are looked at as the leader and the innovator and then the original, almost a classic. Another thing that is helpful for Swiffer is that the P&J clout gets them the choicest shelf space and store position. They make it easy to identify and find, like most P&G products. The product is available just about anywhere you can buy groceries or cleaning supplies. The big guys (Wal-Mart, Target, and Meijer etc.) and the small players (small chains and mom and pops) generally have P&G representation. There are also other issues that have more to do with the product, rather than things that can be directly creditable to P&G. Although they are because of the way P&G takes pride in their products. The Swiffer is easy to use, reasonably priced, and very durable. The real profit potential is in the refills. This is where the majority of the margin comes in, thus they can offer the equipment at very low price. This is a great way of increasing trial and encourages having multiple units in one household. In 1999 the quick clean industry did not even exist. Swiffer and P&G started a completely new market that now brings in over 220 million per year. Pricing has been key, and promotion of the (ease of use) convenience and sanitary features have all combined to catapult this niche and change consumer behavior. Competitor Environment Although there are over ten brands that compete with Swiffer in the quick clean category or in a substitute category, the top three brands are held by Swiffer. After that, the next four contenders are Quickie, Libman, Pledge Grab it, and Clorox Ready Mop with 33.2 million, 30.2 million, 22.9 million, and 22.4 million in 2005 sales respectively. Quickie is over 13 million behind the third place Swiffer Wet Jet and just over 86 million behind the original Swiffer. Some other notable competitors that we will not focus on are Quickie Home Pro, Ever care, and private label brands. These brands only combined for about 40 million in sales in 2005. Few of these brands have nearly the product extension as Swiffer. And the Prices are very similar and almost a non factor.