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Copy of P&G STRATEGIC ANALYSIS

MGT409 GROUP PRESENTATION
by

Lyzi Nguyen

on 29 May 2013

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Transcript of Copy of P&G STRATEGIC ANALYSIS

CORPORATE LEVEL STRATEGY Integrated cost leadership and differentiation
+ Mainly offering standardized products
with affordable prices
+ Having two big plants named Ben Cat
and Binh Duong => taking advantage of
economics of scale. BUSINESS-LEVEL STRATEGY External analysis BUSINESS-LEVEL STRATEGY making investments globally

expanding their market understanding and reach by:
+ the understanding of the foreign marketplace
+ ability to manage people in foreign markets
+ skills at managing foreign subsidiaries CORPORATE-LEVEL STRATEGY Purpose: “We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.”
Vision: Be, and be recognized as, the best consumer products and services company in the world.”
Promise: “Two billion times a day, P&G brands touch the lives of people around the world. P&G people work to make sure those brands live up to their promise to make everyday life just a little bit better.” BUSINESS-LEVEL STRATEGY Its major sectors of operation Consumer Understanding

Innovation

Brand Building

Go-To-Market Capabilities

Scale CORE STRENGTHS Resources b. Industry analysis STRATEGIC ANALYSIS GROUP 5:
Bui Thi Ngoc Anh
Nguyen Thi Hong Loan
Nguyen Hoang Mai
Nguyen Huyen Trang Introduction Porter's Five
Forces
- Wei Management
Philosophy
- Olivia Corporate
Strategy
- Wei Company
Culture
- Olivia International
Relations
- Hanbin Marketing /
Advertising
- Sean Financial
Analysis
- Randy Supply
Chain
- Hanbin Biggest
Problem
- Sean 2. Strategic issues of P&G in Vietnam a. International strategies
differentiating products is needed for diverse demands
In Vietnam, P&G has standardized its products and practices transnational strategy
In the past, P&G used to use the international strategy. Then in 1999, it set the goal to become a truly global company Porter’s Five Forces to evaluate the potential of an industry
Threat of new entrants: low
Bargaining Power of suppliers: low
Bargaining Power of buyers:
Threat of substitute products: high
Intensity of rivalry among competitors: unpredictable a. Macro- environment analysis

P-Political : stability, guaranteed security
E-Economics: unstable macroeconomic situation, better prospect for coming years
S-Social: “demographic window period”, population structure - driver of consumer spending
T-Technology: rapidly developing CORPORATE LEVEL STRATEGY Campaigns "Thank You, Mom" Biggest campaign in P&G history
Ran through 2012 Summer Olympics
Celebrates mom's role in development of Olympics "Official Locker Room Products of NFL" Duracell, Gillette, Head & Shoulders, Olde Spice, Tide, and Vicks
Interactive Marketing
Endorsers such as Drew Brees, Greg Jennings, and Ray Lewis ORGANIZATION STRUCTURE For each category, P&G offer a range of products
For each product, P&G also choose to compete with itself by marketing different brands
Implementing marketing strategies to increase market share P&G is the world’s largest and most profitable consumer packaged Goods Company
2 global units: Beauty and Grooming and Household Care.
6 separate segments: Beauty, Grooming, Health Care, Snacks and Pet Care, Fabric Care and Home Care, and Baby Care and Family Car
P&G’s product line includes 22 brands across beauty, healthcare, and food including Tide detergent, Pampers diapers, and Gillette razors
Highly competitive, global, regional and local competitors Mode of Market Entry P&G cooperated with a well-known company producing soap- Phuong Dong Company to create a new firm, P&G Vietnam Ltd

P&G is the dominant partner and it exercise greater control over technology

After totally eliminating Phuong Dong Company, P&G has focus on developing, expanding production and increasing market share in Vietnam Gillette Acquisition 2005, $57 Billion
Idea was to get into men's products, which was a whole in P&G's product line
As financial ratios indicate, this has not helped company as they hoped In the last three years, despite of the difficult macroeconomic condition and fierce competition with other companies, P&G still earned huge profit from its business activities
Net sales in the United States accounts for approximately 35% of total net sales. No other individual country exceeded 10% of total net sales Recommendations Questions? Our
Suggestion
- Randy P&G THE
BRAINY BUNCH expansions and adaptations of current
lines to meet local needs

ensure good fit and value-added

update the tendency in consuming
goods of Vietnamese Performance over the last 3 years Market Development Organizations (MDOs):
Global Business Units (GBUs):
the Global Business Services (GBS) organization: BUSINESS STRATEGIES OF P&G IN VIETNAM Pursuiting horizontal integration and related diversification strategy
+ horizontal integration: Merging with
Phuong Dong Company
+ related diversification: health
care industry, beauty industry,
grooming industry…. Innovation is a fundamental driver of P&G’s growth large-scale operations
strong product branding
product innovation to develop competitive advantages ghhhh
Full transcript