Procter & gamble co

PROCTER & GAMBLE CO.
Case Analysis
Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela
1
23 March 2014

BRIEF INTRODUCTION
The Procter & Gamble Company (P&G) boasts boatloads of
brands. The world's top maker of household products courts market
share and billion-dollar names. It's divided into three global units:
household care, beauty and grooming, and health and well-being. The
firm also makes pet food and water filters and produces a soap opera.
Two dozen of P&G's brands are billion-dollar sellers, including Febreze,
Fusion, Always, Braun, Bounty, Charmin, Crest, Downy/Lenor, Gillette,
Iams, Olay, Pampers, Pantene, Tide, and Wella, among others. P&G
shed its coffee in 2008 and it's selling Pringles. Being the acquisitive type,
with Clairol and Wella as notable conquests, P&G's biggest buy in
company history was Gillette in 2005.
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23 March 2014

THE COMPANY
Name Procter & Gamble Co.
Industries served Global Beauty Care; Global Health, Baby, and Family Care; Global Household Care
Geographic areas served Worldwide
Headquarters Cincinnati, Ohio, U.S.
Current CEO A. G. Lafley
Employees 1,21,000 (2013)
Total Assets US$ 139.26 billion (2013)
Total Equity US$ 68.06 billion (2013)
Principal Competitors
Unilever; Johnson & Johnson; Kimberly-Clark Corporation; Sara Lee Corporation; Kraft
Foods Inc.; L'Oreal SA; Colgate-Palmolive Company.
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23 March 2014

SWOT ANALYSIS
InternalFactors
Strengths Weaknesses
-Strong focus on research and development
-Leading market position
-Strong brand portfolio
-High-quality product, quality processes and
procedures.
-Have a first rating in mouthwash market share.
-Not enough make a distribution channel.
-Lack of canning or packaging.
-Undifferentiated products or services with
other competitor.
4
ExternalFactors
Opportunities Threats
-Brand which it concentrate for a healthy oral.
-Move into new market segment that offer improves
profit.
-A developing market such as in the Internet.
-Future growth plans.
-Expansion in developing markets.
-Too many competitors in this industry.
-Price wars with other competitors.
-Not patentable, competitor can attempt to
duplicate a product.
-Global economic conditions.
23 March 2014

STRENGHTS
• The large scale, on which the P & G operates, is one of its strengths. It is a
global leader for different product categories like fabric, home, baby,
beauty, health and personal care in many countries. The company markets
its brands in more than 140 countries.
• The strong branding of P & G makes it one of the most successful brands in
the world.
• The company has a vast experience in oral and personal hygiene products
• Also, it has an extensive experience in marketing in different market
segments and is one of the best marketers in the world.
• The company is able to customize its global products and brands according
to the local preferences.
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23 March 2014

WEAKNESSES
• The beauty and health products by P & G are mostly for women.
• P & G does not make and offer any private label products for the retail
customers and is, missing an opportunity.
• The large scale operation of the company makes the culture heavy and
processes slow. This also leads to quality control problems.
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23 March 2014

OPPORTUNITIES
• An opportunity for P & G is health and beauty products for men.
• P & G has doubled its Environmental Goals for the year 2012 and thus,
promises more value for the environment concerned customers today.
• Using the online social networks and internet marketing techniques is also an
opportunity for P & G.
• Company is constantly trying to pursue growth overseas.
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23 March 2014

THREATS
• The competitors are making their product portfolios diverse day by day and
using different marketing and promotional strategies to increase their market
share.
• In the market many substitutes are available for P & G products at cheaper
prices.
• The private label growth is also a serious threat to the P & G’s market share.
8
23 March 2014

ALAN GEORGE LAFLEY
• Chairman of the Board, President,
and Chief Executive Officer
of Procter & Gamble.
• Originally retired in 2010 and
again joined company in
May, 2013.
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23 March 2014

ABOUT A G LAFLEY
• A. G. Lafley describes himself a leader with high expactations and heart.
And he relies heavily on managers’ inputs as he develops new plans.
• Lafley was recently named one of America’s Best Leaders by Harwards’s
Kennedy School of Government & U.S. News & World Report.
• Proctor & Gamble has had an amazing turn around under his direction.He
believes that his company’s planning and strategy will succeed if he has his
workers behind him.
• He says “They want to feel your commitment, and of course they want to
understand that the choice you’ve made is smart, rational, and will work.”
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23 March 2014

HOW LAFLEY PREDICTS FUTURE
• Lafley noted the importance of growth as a strategy.
• Instead of maintaining old growth, P&G must carefully move into related
markets and literally create new categories of business.
• To accomplish that goal requires innovation –in thinking, in developing new
products, and in marketing them.
• “So the name of the game is innovation” says Lafley, “We work really hard to
try to turn innovation into a strategy and a process that’s a little more
consistent, a little more reliable, so that we can build a portfolio of
innovations and get the yield we need to get that $6 billion or $7 billion a
year.”
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23 March 2014

“CONNECT AND DEVELOP”
• Launching new products requires careful planning at all levels –strategic,
tactical, and operational.
• Lafley orchestrated a major shift in the way firm develoeped new products.
• Instead of relying solely on a complex, bureaucratic research and
development organization, P&G now uses a new approach called
“Connect & Develop.”
• It is based on ideas P&G should gather and learn from innovations and
technologies that exists outside the company’s wall.
• All activities are aligned to create products that consumers want to use.
• Olay regenerist anti-aging products, Crest spinbrush toothbrush are the yield
of connect & develop programme.
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23 March 2014

ASSESSING OUTCOMES AND
SEIZING OPPORTUNITIES
• Historically the giant told consumers what they needed and wanted, but
now Lafley has shifted its focus directly on consumers and asks for their input
up front.
• This new outlook drives all of P&G’s planning and strategy, which includes
broadcasting commercials created by consumers and building online
communities dedicated to consumers’ favourite P&G products.
• “Most of [these] Experiment don’t work all the time, but we have to be out
there, trying.” says Lafley.
• Lafley endorses the idea of pleasantly surprising consumers this way-catching
their attention when they least expect it and offering an immediate solution
to a problem.
• Briefly, P&G has found that consumers will build the brands themselves.
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23 March 2014

CONCLUDING
• The intense competition in particular market drives businesses to evaluate
their policies and effectiveness regularly. Each company has its own business
characteristic, which certain policy is suitable fit for a company while others
could be unacceptable.
• Under A. G. Lafley’s deriction Procter & Gamble changed its outlook towards
consumers and they are at the heights of their success.
14
23 March 2014

“
”
THE POWER IS WITH CONSUMERS
Jay Shah – 12CL104
Purvit Soni – 12CL116
Rahul Sharma – 12 CL109
Milind Patel – 12CL07
Vishal Shah 12CL107
Vivek Vaghela – 12CL120
Thank you for listening to us.
Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 1523 March 2014

Procter & gamble co

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