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Procter and Gamble Market

•P&G :-A global leader in branded consumer goods. eg. Ivory soap,

tide laundry, Gillette•Started at 31st October 1837•Founders :-James Gamble & William Procter•Headquarters :- Cincinnati, Ohio , USA •Total company’s worth=$76.27billion

INTRODUCTION

Conti…•Pioneered in marketing strategy that were considered standard industrial practice• 1st company to advertise directly to consumer in 1880s• Company’s motto:- Touching life , Improving life.• P&G became global household name by acquiring firms like Gillette(2005), Charmin paper mill(1957) etc.• Company brought breakthrough products through its main focus on R&D and innovations.

INDEX1.Company’s background---- What is the

company?2. Strengths---What so special?3. Weaknesses--- What not to know about?4. Opportunities and Recommendations--- What

can be done?5. Threats--- So what?6. Information for consumers--- Why not to

choose P&G ? ---- Why to choose P&G? 7. Conclusion

WHAT IS THE

COMPANY?

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•Company lost many campaign and sponsored many events to increase its visibility worldwide.• Products sold in more than 180 countries.• Organised in 7 global business units (GBUs)• Today company operates in many market segments .

•Currently it is at 39th position in forbe’s list.• Total Market share of company is $218.9 billion as per May 2016.•It serves in all the world except Cuba and North Korea.

WHAT SO SPECIAL?

Strengths• It has 25 brands which have annual sales of over a billion $• Over 125,000 people are employed by P&G globally.• Offers multiple brands in each category .• Tightly integrated with largest retailers around the world.

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Conti…• Spends $300m to understand its consumers annually on market research.•Its core business in Home care and Fabric CARE.•These products are non cyclical consumer goods.• Great brand outreach with huge public VISIBILITY.

WHAT NOT TO

KNOW ABOUT

?

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Weaknesses• Declining expenditure on INNOVATIONS , one of P&G core competencies.• Sales of new launches decreased by half between 2003-2008.• Net earnings from core product category fall to 6%.• 14% decline in operating incomeand 20% in net earning.

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Cont…• Beauty and health products are mostly for women only.• Fake products sold under the name of P&G brand.• Stiff competition from big players and local

brands.

WHAT CAN BE DONE?

Opportunities• Emerging markets with rapidly rising income has great demand potential.•Income from developing market represents P&G’s 32% of annual revenue.•Consumer spending in emerging market is expected to grow three times than in developed market reaching $6billion by 2020.•Non-cyclical consumer products which P&G specialized in.

Recommendations• Health and beauty products for men.•Online social network and internet marketing Technique.• To sell out less profitable brands.• Going green / Eco friendly.

SO WHAT?

Threat• Cut throat competition in consumer good’s market.• Availability of cheaper alternatives.• Due to recession consumer spending decreased globally. • Cost of raw materials increased, so the production cost of company.•Major competitors:- ITC limited, Unilever, Dabur,L’oreal etc.

Threat cont…• Increasing availability of generics store brands of consumer products, making it for P&G brand to compete,• Rising commodity prices and cost of production.

WHY TO CHOOSE

P&G?

Trusted Brand• “We have found a lot of times that when people know the brand is from P&G , they feel better about the brand and they know P&G has all these brands , they feel better about P&G ”.• It caters markets all over the world so this shows the consumers trust P&G from every part of the world.

Commitment to consumers• P&G invested more in market research than any company in the world.• It interacts with more than 5 million consumers in almost 100 countries.• In 2010 Olympics it tried to connect with moms all over the world. It took 18 P&G brands under a common message which targeted moms around the globe.

WHY NOT TO CHOOSE

P&G?

• Unstability in goals and focus of the brands.• High amount of risk sometime brings big failure for the company.• Company’s vision is fluctuating .

• Dragging of top production line, accompanied by stock lack.• Top managers leaving the company at frequent rate.• Lack of innovation for new product from long period of time.

Conclusion P&G has magnificent past and worldwide recognition. It’s true that company is lagging behind in present scenario but in spite of all lags company has proved itself in the past at different point of time by overcoming failures. So, we that by overcoming all it’s loop holes and fighting all odds company will again prove itself will reach the pioneer of success.

Disclaimer

Created by Sheshank Shekhar ,NIT Jalandhar,During marketing internship under pro.Sameer Mathur