procter & gamble co

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Strategic management of P&G Co. under direction of A. G. Lafley.It describes company's strategy towards the consumers.

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

2. 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 2 23 March 2014 3. 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 3 23 March 2014 4. 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 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 5. 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 5 23 March 2014 6. 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 6 23 March 2014 7. 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 7 23 March 2014 8. 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 & Gs market share. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 8 23 March 2014 9. 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 9 23 March 2014 10. 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 Americas Best Leaders by Harwardss Kennedy School of Government & U.S. News & World Report. Proctor & Gamble has had an amazing turn around under his direction.He believes that his companys 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 youve made is smart, rational, and will work. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 10 23 March 2014 11. 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 thats 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 11 23 March 2014 12. 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 companys 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 12 23 March 2014 13. 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&Gs 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 dont 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. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 13 23 March 2014 14. 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. Lafleys deriction Procter & Gamble changed its outlook towards consumers and they are at the heights of their success. Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela 14 23 March 2014 15. 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