Proctergambleco 140423222346 Phpapp02

1
PROCTER & GAMBLE

CO.
Case Analysis
Prepared by: Jay Shah, Purvit Soni, Rahul Sharma, Milind Patel, Vishal Shah, Vivek Vaghela
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.
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$ 139.26billion (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.
23 March 2014
SWOT ANALYSIS
In Strengths
te -Strong focus on research and development
rn -Leading market position
al -Strong brand portfolio
Fa -High-quality product, quality processes and
procedures.
ct -Have a first rating in mouthwash market share.
or
s
Opportunities
Ex
te -Brand which it concentrate for a healthy oral.
rn -Move into new market segment that offer improves
al profit.
-A developing market such as in the Internet.
Fa -Future growth plans.

ct -Expansion in developing markets.
or
s
Weaknesses
-Not enough make a distribution channel.
-Lack of canning or packaging.
-Undifferentiated products or services with
other competitor.
Threats
-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.
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.
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.
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 & Gs market
share.
23 March 2014
ALAN GEORGE
LAFLEY
Chairman
of
the
Board,
President, and Chief Executive
Officer ofProcter & Gamble.
Originally retired in 2010 and
again joined company in
May, 2013.
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.
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.
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.
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.
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.
23 March 2014
23 March 2014
15
THE POWER IS WITH CONSUMERS
Jay Shah 12CL104

Purvit Soni 12CL116
Rahul Sharma 12 CL109
Patellistening
12CL07 to us.
ThankMilind
you for
Vishal Shah 12CL107
Vivek Vaghela 12CL120

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PROCTER & GAMBLE

Procter & Gamble Co.

Geographic areas served

Cincinnati, Ohio, U.S.

US$ 139.26billion (2013)

US$ 68.06 billion (2013)

Unilever; Johnson & Johnson; Kimberly-Clark Corporation; Sara Lee Corporation;

Fa -Future growth plans.

HOW LAFLEY PREDICTS FUTURE

CONNECT AND DEVELOP

ASSESSING OUTCOMES AND

THE POWER IS WITH CONSUMERS

Jay Shah 12CL104

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