1) Procter & Gamble (P&G) is an American multinational consumer goods company founded in Cincinnati, Ohio. It produces pet foods, cleaning agents, and personal care products. 2) P&G's vision is to improve lives through superior quality products, now and for future generations. Its mission is to be the best customer products and services company worldwide. 3) P&G faces competition from substitutes and other companies. However, it has strengths in its global operations, brand names, product innovation, and research and development budget.

1. OVERVIEW
Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company headquartered in downtown
Cincinnati, Ohio, United States, founded by William Procter and James Gamble, both from the United Kingdom. Its products include
pet foods, cleaning agents,and personal care products. Fortune magazine awarded P&G atop spot on its listof "Global Top Companies
for Leaders", and ranked the company at fifteenth place of the "World's Most Admired Companies" list. P&G is credited with many
business innovations including brand management and "Connect & Develop" innovation.
P&G’S VISION AND MISSION STATEMENT
 VISION: “We will provide branded products and services of superior quality and value that improves the lives of the world’s
customers, now and for generations to come.”
 MISSION: “Be and be recognized as the best customer products and services company in the word.”
EXTERNAL ENVIRONMENT ANALYSIS
PESTLE ANALYSIS
1. POLITICAL
P&G helps shape public policy and legislation that helps the company to reach out to more lives in the entire world in much
better way. They are committed to being transparent about their political motives. P&G is politically involved with the help of
the three tools:
a. P&G political action committee
b. P&G’s global government relations
c. P&G good government fund

2. 2. ECONOMICAL
The current economic trends look positive, particularly the economies of India and USA. The growing infrastructure of the
countries (mainly the developing countries) also supports the industry which is beneficial for P&G. P&G has the following
factors in its kitty which will help it invest more in R&D as well as emerging economies so that it can sustain itself in the cut-
throat sector of FMCG.:
a. Free cash flow productivity greater than 90%
b. EPS now in double digits :22.19%
3. SOCIAL
a. Pampers working with UNICEF for healthy babies
b. P&G is a part of Shiksha Abhiyaan run by Indian Government
c. Enabling children to live, learn and thrive across the globe
d. Diverse work force (biggest diverse workforce in the world)
e. Major beauty and health care products cater to women
4. TECHNOLOGICAL
P&G heavily invests in R&D activity with increase in the amount of investment every year. The huge R&D budget helps them in
a. Continuous innovation, for example, Gillette Mach 3 Turbo razors
b. Latest technology development to better interact with customers, for example, online product catalogs to engage
customers
5. LEGAL
Operating in the global market has its own challenge for P&G where each country has its own sets of laws and regulations. It
needs certain permits to operate in any new geographical location and has to abide by these laws and rules in order to sustain
in all the countries where it has its presence:
a. Health and safety standards
b. Environment requirements worldwide
c. Consumer laws, employment and antitrust laws
P&G is subjected to:

3. a. Lawsuit and claims
b. Consumer courts
c. Compliance and non compliance issues
6. ECOLOGICAL/ENVIRONMENTAL
P&G has pioneered in becoming environment friendly in midst of the talks of climate change, global warming and
environmental damage via:
a. Focus on reducing green house gas emissions by 20%
b. Reducing energy consumption by almost 50%
c. Proper waste disposal from P&G facilities
PORTER’S 5 FORCES ANALYSIS
1. Threat from new entrants: P&G have low threat from entrants. As it requires huge capital investment to enter into the market.
P&G is already a well established brand so it becomes difficult for new companies to compete with them. They already have
established relationship with retailers which give them advantage to acquire most eye catching shelf space.
2. Threat from Substitute: P&G have high threat from substitutes. We see products at retailer outlet which are cheaper than P&G
product but offer same quality. Also Consumer is moving towards natural products. So they prefer products like herbal
shampoos, detergents and cosmetics.
3. Threat from Buyers: Large share of P&G sales depends upon retailers like Wal-Mart, BigBazar, and D-Mart. Because of large
contracts these retailer wants high profit margin, hence they have more power. Also power lies in hand of end customers as
they have choice between different substitutes.
4. Threat from Suppliers: There is no or very low threat from suppliers. P&G being a brand name become a key customer for
suppliers. Also, P&G partners with Supplier which further reduces threat from suppliers

4. 5. Threat from Competitors: P&G deals in highly competitive market. There are many branded and local products present in
market which gives competition to P&G products. Major competitors which are threat for P&G are HUL, Revlon, L’Oreal,
Colgate-Palmolive etc.
INTERNAL ENVIRONMENT ANALYSIS
VRIO ANALYSIS
Resource Valuable? Rare? Costly to
imitate?
Exploited by the
organization?
Competitive implication
Sales Yes No Yes Yes Unexploited competitive advantage
Credit Facilities Yes No Yes Yes Unexploited competitive advantage
Brand names Yes Yes Yes Yes Sustained competitive advantage
Product Innovation Yes No Yes Yes Unexploited competitive advantage
R&D Yes No Yes Yes Unexploited competitive advantage
Global Operations Yes No Yes Yes Unexploited competitive advantage
Employee Diversity Yes No No Yes Temporary competitive advantage

5. Sales: The current sales ofP&G is 2,333.79 Crores Inr which is at the 6th position in the industry. HUL is leading with asales of30,805.62
followed by Dabur India, Godrej consumer, Marico & Colgate. With the current sales figure the net profit comes out to be
Credit Facilities: Procter and Gamble maintains four bank credit facilities to support their ongoing ‘commercial paper program’. In
2014, Procter & Gamble repurchased $10 billion in shares. The company expects to repurchase up to $24-$30 billion of company
shares in the future. As of June 30, 2014, there were approximately 2,231,000 common stock shareholders.
Brand names: Procter & Gamble has one of the largest and strongest portfolios of trusted brands. Procter and Gamble is the producer
of products in nearly 50 categories. Because of this, they have been able to bond technologies within the categories in various
astonishing ways. Procter & Gamble operates in more than 80 countries worldwide, which makes for one of the largest global
companies around.
Product Innovation: Procter & Gamble’s strategy is mostly focused on innovation. P&G is also strongly committed to the concept of
sustainable development, and continues to lead its industry in that regard. The company views sustainability as an opportunity to
innovate products that improve the lives of the world’s consumers. Procter and Gamble’s Innovation strategy is called Connect +
Develop. This strategy is seeking to build a global innovation network. Through Connect + Develop relationships, the company
continually searches for products, packaging, technologies and commercial opportunities that can be reapplied to brands and rapidly
introduced to better meet consumers’ diverse needs. This strategy seeks to leverage the ideas, talents and innovation assets of
individuals, institutes and companies around the world.
R&D: Over the years, Procter & Gamble’s Research and Development team has revolutionized home care. Many breakthroughs
originate in the Procter & Gamble’s laboratories. It has spent a sum of Rs 200Cr in R&D for the year 2014.
Global Operations: Procter & Gamble operates in more than 80 countries worldwide, which makes for one of the largest global
companies around.
Procter & Gamble manufacturers their own products, and they do so in different places all throughout the world. These places include
the US, Canada, Latin America, China, Asia and Africa.
Employee Diversity: Procter & Gamble has been recognized by Black Enterprise magazine as one of the top 40 Best Companies for
Diversity. Procter and Gamble has demonstrated a significant representation of African Americans and other ethnic minorities in four
key areas: corporate procurement, corporate board participation, senior management representation and their total workforce.

6. Procter and Gamble’ employees are not only diverse among race, but also sex, age, cultural heritage, personal background, and sexual
orientation.
SWOT ANALYSIS WITH IMPLICATIONS

7. IMPLICATIONS:
1. Due to easy imitation of P&G products, brand image of the company is getting diluted. This impacts the business as the people
wont trust in the brands that the company has to offer. It also affects the vision of the company to provide quality and value
products to consumers.
2. P&G has a very high investment in R&D of around 2 billion USD in the past FY. It is constantly increasing its R&D budget to
develop new and future friendly products. This has given P&G a competitive advantage and serves the vision to not only
improve life of the current generation but also the lives of the future generations to come.