A case study on expansion of Procter & Gamble by Ryan Pal, IIT Kanpur as a part of internship under Prof. Sameer Mathur, IIM Lucknow.

1. Analyzing Expansion

2. Companyoverview
 Procter& Gamble (P & G) is the largestmanufacturerofconsumer products.
 One ofthe top10largest companiesbymarketcapitalization.
 Foundedin 1837, headquarteredin Cincinnati, Ohio byWilliam Procter
andJames Gamble.
 Mainstayin American businessforover 150yrs.
 KnownforSuccessfulbrands,introducingnew productsandmaintaining
popularity.
 Pampers,Tide,Bounty,Folgers,Pringles Charmin,Swiffer,Crest, food,
beverages andmanymore.
 $83.62billion in salesand$14.48billion profitby2012

3. CompanyHistory
 Brothers-in-lawWilliam ProcterandJames Gamble startedapartnershipof
makingandselling candlesandsoapin Cincinnatiin 1837.
 In 1859,P&G salesreached $1million.
 In 1924,P&G createsamarketresearch departmenttoanalyzecustomer
buyinghabits.
 Newproductskeptonaddingandsalesreached$10billion by1980.
 P&Gnow operatesin over 80 countriesandhas13billion dollarbrandsin its
portfolio.

4. Core Values of the company
 Alwaystrytodo theright thing.
 Behonestandstraightforwardamongsteach other.
 Operatewithinthe spiritofthe law.
 Bedata-basedandintellectually honestatrecognizing risks.
 Bea leaderin theirareaofresponsibility.
 Achieve leadership objectivesandstrategies.

5. Statement of Purpose
“To improve the lives by touchingthem
everyday”

6. P&G brands and Products
 Most ofthebrandsunderP&Gareglobalproductsavailablein several
continents.
 P&Gproductsareavailablein over 180countries.

7. P&G brands and Products
 Most ofthebrandsunderP&Gareglobalproductsavailablein several
continents.
 P&G productsareavailablein over180countries.
 Majorbrandsinclude Pringle’s, Duracell,Pantene,Pampers,Gillette, Olay,etc.

8. Business Operations
Threemainunits-
 Beautycare
 Household care
 Health andwell being
Others-
 Babycare
 Pet care
 Grooming segment

9. Business Goals
Threemainfocuses-
 Maintainingpopularityofexisting products.
 Developing new productsrelatedtothe company’sgoals.
 Innovatingandintroducingnew products.

10. Market Competitors
 In thebeauty,hairandpersonalcaresegment, Avon isa majorcompetitortoProcterand
Gamble asareColgate-Palmolive,EsteeLauder,Revlon, Coty,ElizabethArden,Inter
ParfumsInc.andUnilever.
 In thegrooming segment, P&G’s Gillette brandis thedominantmarketplayer.Bic is a
majorcompetitorwithalargeinternationalpresence.
 In thehealthcaresegment, majorcompetitorsincludeCCA Industries,Colgate-
Palmolive,ChurchandDwightCo.,Ecolab,StepanCompanyandUnited Guardian.

11. Market Competitors
 In thefabriccareandhomecaresegment, major competitorsincludeColgate-Palmolive,
Unilever, andChurchandDwightCo.
 In thebaby,feminineandfamilycaresegment, majorcompetitorsincludeColgate-
Palmolive,Unilever, andChurchandDwight Co.
 P&Galso facescompetitionsfromnumeroussmall andlocal competitors.

12. Internationalexpansion of P&G
 Long time to internationalize: almost100yearsbeforeP&Gundertookoperations
internationally.
 1930:P&G begantosell itsproductsoverseas (InternationalStrategy).
 1950’s:P&G focusedonthelargestemerging marketin theworld(China…) with amulti-
domesticstrategy
 1980’s:P&G chosetobenefitfromthe largeexperienceofthecompany(morethana
century).

13. Focus of MarketingStrategy
 MoreConsumers
 Reachmorepartsoftheworld.
 Attractnew customersintoexisting brandsandencourageexisting customerstouse
moreoftheirbrands.

14. Focus of MarketingStrategy
 Consumerswill paypremium priceforproductsthatofferimprovementsover brands
theyuse.
 Productinnovationmust bedesigned toupscaleconsumerpreferences.
 Thesestrategies,innovationandpricing canbeusedtoentermarketsofdeveloping
countries.

15. Strengths of P&G’s marketingStrategy
 Abilitytorespondeffectivelytodemandsofemerging internationalmarkets.
 Abilitytoattaineconomiesof scale.
 Pastexperience tocompetewithcompetitors.

16. Challenges in P&G’s marketingstrategy
 It tookalong time toexpandtomultiple nationsandexpansion even nowisatime
takingprocess.
 Companyfacesseveral managerialchallengesandregional challengesbeing amulti
nationalcompany.

17. P&G's impressive portfolio includes some of the
strongest brand names in the world. What are some
of the challenges and risks associated with being the
market leader in so many categories?
 BrandDilution:Customersstopassociatingdifferentproductswiththe branditself.
 Customersgeta mixedbrandimage.
 Companyfacescompetitionfrommanysmallandregional competitors.
 Hardtoidentifymarketsegment.

18. With social media becoming increasingly important
and fewer peole watching traditional commercials
on television, what does P&G need to do maintain
its strong brand images?
 Use itsdatato analyzecustomerbehavioranddevelop strategiesaccordingly.
 P&Gshouldengage withitscustomersactively throughsocial media.
 P&Gshouldenhanceitsonlinepresenceespecially when internetisona boom.

19. What risks do you feel P&G will face going forward?
 Competitionfromregionalcompetitors.
 Dilutionofbrandas moreandmore productsareintroduced.
 Fakeproductscanalsohamperbrandimage.
 Pressureto innovate.

20. Summary
P&G hasevolved fromacompanystartedby2 peopleforselling one producttoa
multinationalcompanyselling productsin over180countrieshaving numerousbrands.
P&G hasmanagedtomaintainits brandvalue.However, it continuouslyfacesathreatof
branddilutionandmustdevelop itsfuturestrategiesto ensurethatthisdoesnothappen.

21. Disclaimer
This presentationwascreatedbyRyanPal,IIT Kanpur,duringmarketinginternshipbyProf.
SameerMathur,IIM Lucknow.
Ryan Pal,
IIT Kanpur
Sameer Mathur,
IIM Lucknow