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Procter & Gamble

Case Analysis

Adzfar Kamsani

on 5 December 2012

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Transcript of Procter & Gamble

Strategic Position and Action Evaluation
(SPACE Matrix) SWOT Analysis SUMMARY Five Forces Model Competitive Profile Matrix ( CPM ) CONCLUSION RECOMMENDATION P & G is a big company that well know across the globe with their product. by manufacturing in three main product Beauty and Grooming, Health and Well-Being and Household care under the strategic business units (SBU). By producing a very quality product to help to improve the lives of the customers around the globe. With a strong distribution, network, market position, and global operation it show how the volume growth opportunities exist across the business landscape for the future of the company. Inside P & G world everybody can contribute to sales and development a new product either through research, energy and commitment to their role. P & G develop many kind of new product to market through their innovative ideas and culture to keep the organisation constantly and move forward inside the industry. Because of thinking to make a product use for the customer by improving their live more easier and better made it advantage for P & G. From this kind of way to success in the industry it help the P & G company successful in global business and future market. by creating more innovating product lines and also new business portfolios
how, what, and the needs that the customer needed.
the company may produces a product that have a great quality with lower price and affordable for the customer.
need to increase their sales of product at Asian, central & eastern, and Latin America region
establishing another brand category that is targeted
they also need to understand the situation, whether, or other factor that will be suitable for the use of the customer. Procter & Gamble Case Analysis Mohd Noor Adzfar
Muhammad Nabil
Aizri Aizudin
Khairul Fizree 1071120502
1091104299 6th December, 2012 The enormous portfolio of products distributed under P&G’s name makes it difficult for new entrants to compete.
This establishes a substantial barrier that keeps the threat of new entrants low for this industry.
Patents on products also serve as a barrier to entry. Threat of New Entrants : Low Patents on products also serve as a barrier to entry.Kimberly-Clark was founded in1872 and operates four business segments:
1) Personal Care,
2) Consumer Tissue
3) K-C Proffessional & Others
4) Health Care
The products from K-C such as Huggies, Kotex, Poise, Kleenex, Scott, Scottex, KleenGuard, Kimcare, and Jackson Threat of Substitutes : Low-Medium The majority of products in the P&G portfolio are consumer staples.
No substitute for laundry detergents other than different types of laundry detergent.
However, substitutes do exist for some of their products lines like snacks and fragrances. Kimberly-Clark A global consumer products company that operates in the oral, personal and household care, and pet nutrition products
The company operates in over 200 countries under the brands Colgate, Palmolive, Mennen, Softsoap, Irish Spring, Protex & etc. Colgate-Palmolive A global company engaged in research and development, manufacture, and sale of various products in the health care field.
Johnson & Johnson operates in three segments which is consumer, pharmaceutical, and medical devices. Johnson & Johnson Based in London and the markets more than 400 brands, such as Lipton tea, Dove, and Aviance.
Unilever is a global supplier of consumer goods across a wide range of food, home, and personal care product categories. Unilever Clorox founded in 1980 and employing approximately 8,300 employees globally.
Clorox reports four segments :
- Cleaning
- Household
- Lifestyle
- International
Clorox’s name brand offerings include Green Works natural home care products, Pine-Sol cleaners, Poett home care products, Fresh Step car litter, Kingsford charcoal Clorox The growth in this industry has been moving up on a yearly average
Price wars are expected to happen
These companies have to manage decisions by getting rid of every expense Competitive Rivalry : High P&G does not have a strong reliance on any specific suppliers
Consumer products companies like P&G might incur some costs from switching suppliers
Supplier cost is still limited due to the sheer size of P&G Bargaining Power of Buyer : High THANK
YOU P&G is the biggest American consumer products manufacturer

Average household in America and Canada have at least 1 of its product

Currently is the biggest consumer products manufacturer in the world

Was founded at the year of 1837 by William Procter a candle maker and James Gamble a soap maker which both met by a chance

Very established by about more than 170 years the company managed to survived and already revolved its status to conglomerate on the current INTRODUCTION Now P&G has more than 250 brands of products out in the market (Oral-B, Pringles, Pampers, Pantene, Head and Shoulders, Ace Hardware)
Innovation, business acquisitions, and joint ventures are the main strategies mainly used by P&G to gain profit over the market
At the end of 2009 financial period, P&G acquired global sales at approximately 79 billion and employed more than 135 000 workers worldwide
P&G rated highly in Forbes by being no 1 most admired company in soap and cosmetic industry
Currently P&G is focusing on its brand management in mission to improvise the product creation and the availability for lower income earner
Superior quality with affordable price is one of P&G’s principles P&G name is very well known among the public, and wants to establishes itself as one of the most trusted brand out in the market
P&G Operation is divided into 3 categories of Global Business Units (GBUs) which are Beauty and Grooming, Health and wellbeing and Household care PEST Analysis Pest analysis stands for Political, Economic, Socio-cultural and Technology of the market analysis
As the first step of entering the market, firms need to analyze the market and its factors in to ensure preparation for the business plan and decision making process
P&G took it critically when involving in analyzing the environment and social factors
The graph below represents basic elements in pest analysis on which area to focus and set upon
Political is the analysis of political conditions of the country or region mainly focused on the government of its respective country

As the government have the power to bind and set the rules which are an obligation for firms to obey upon

Adaption is the key of P&G successful business ventures , as they learn to adapt in a country’s ruling and as in respect to the government rules and obligations

P&G also provides freedom of choice as they created P&G Political Action Committee (PAC) a voluntary non bias committee in supporting candidates on local, federal and state level with true mission of helping the community and environment

Monitored by the Federal Action Commission (FAC)

This action indirectly improvise their relationship with the US Government as they volunteered and donate for public works

Another adaption of P&G is the changes they make of its product to be marketable

In Malaysia its required the products to be in Halal status in order for it to be commercialized and sells on public malls

P&G does fulfill the requirement and currently selling their brands of products in the Malaysian public market
POLITICAL Economic factors are related to the economic status of externality. A country’s economic factor

Macroeconomic of a country may differ from another so from time to time it changes and a new analysis is required for the current market situation

P&G involvement in Joint ventures and acquiring home countries partnership contributes their more understanding of the market

This will provide them with much more exposure to the home market situation and competitive advantage in favor of P&G ECONOMIC Socio-Cultural is relate to social culture, tastes, and status of society and this factor is vital for a firm’s notification

As consumers are analyze upon and the relation is significantly a main contributor for the firm’s success.

P&G never took social cultural responsibilities for granted as they always strive for greener products and reduce the toxicities of their manufactured products

P&G Structure is particularly based on democratic provision as they embrace and welcomes diversity in the company. It’s an environment where people comfortable being who they are, regardless of their individual differences as in talent or personal characteristic

P&G organized Live, Learn and Thrive Initiative organization to help out the children as inclusive of providing them with proper health care, treated drinking water and educational purposes.

This serves as a they too care about the environment and social responsibilities SOCIO-CULTURAL Technology represents the current technology typically used by the market in order to smooth the flow between the chains of markets whether it’s from lower to the top management

Technology played a major part in communication, distributing and innovation.

Involvement of P&G in Greener projects are also applied to their consumer manufactured products as innovation of products are focused upon greener and less hazardous materials which are user and environmental friendly

At 2010 P&G invested approximately 2 billion in research and development area to improvise their item creation and innovation which is twice more than investment made by their fellow competitors.

Their main aim is to invent consumers items which are much durable, safely and affordable as they intend to aim and price conscious consumers

P&G repackage the products by reducing the ink colors from 4000 plastic colors to 1500 and 10000 print ink colors to just only 200 colors as their innovation of new product management

P&G also involve in online market trading as an experimental approach to market their products TECHNOLOGY
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