procter & gamble co

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PROCTER & GAMBLE CO.Case Analysis

Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 23 March 2014

Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela

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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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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 CompetitorsUnilever; Johnson & Johnson; Kimberly-Clark Corporation; Sara Lee Corporation; Kraft Foods Inc.; L'Oreal SA; Colgate-Palmolive Company.

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SWOT ANALYSIS

Internal Factors

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.

External Factors

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.

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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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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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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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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.

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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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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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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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“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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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.23 March 2014


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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.

23 March 2014

Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 15

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”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.

23 March 2014

procter & gamble co

Marketing