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PROCTER & GAMBLE CO.Case Analysis

Prepared by : Rishabh Gupta RCOEM

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BRIEF INTRODUCTIONThe 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.

P&G HISTORY: A LEGEND OF FIRSTS

1837 Brothers-in-law William Procter and James Gamble start a partnership, making and selling candles and soap in Cincinnati

1859 P&G sales reach $1 million1879 The inexpensive, but high-quality Ivory soap is introduced1924 P&G is one of the first to create a market research department to study consumer preferences and

buying habits1955 Crest, the first toothpaste with fluoride clinically proven to fight cavities, is introduced1961 Pampers is introduced and eventually replaces cloth diapers1980 Sales reach $10 billion2002 P&G develops Naturally feminine pads specifically to meet the needs of low-income women in Latin

America.2005 High Frequency Stores, Consisting of nearly 20 million stores across the world, FS represents a

particular opportunity in fast-growing low income markets.Today P&G operates in 80 countries worldwide, employing more than 100,000.

Has 13 billion dollar brands in its portfolio: Charmin, Tide, Pantene, Iams, Folgers, Crest, Olay, Always, Ariel, Bounty, Downy, Pringles, Pampers.

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THE COMPANY

Name Procter & Gamble Co.

Industries served Global Beauty Care; Global Health, Baby, and Family Care; Global Household CareGeographic areas served WorldwideHeadquarters Cincinnati, Ohio, U.S.Current CEO A. G. LafleyEmployees 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.

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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.

INDIA P&G is one of the largest and fastest growing

consumer goods companies in India. Established in 1964, P&G India now serves

over 650 million consumers across India.

Ambi PurArielDuracellGilletteHead & ShouldersOlayOral-BPampersPanteneTideVicksWellaWhisper

Its presence pans across the Beauty segment, the Household Care segment as well as the Health care segment, with trusted brands that are household names across India.

These include Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B, Head & Shoulders, Wella and Duracell.

BRANDS

PRODUCTIONS Procter & Gamble produced and sponsored the first radio

soap operas in the 1930s. Procter & Gamble also was the first company to produce

and sponsor a prime-time show.

ONLINE MARKETING

The company has actively developed or sponsored numerous online communities, i.e. BeingGirl.com(launched in 2000),Women.com.

 As of 2000, the company had 72 "highly stylized destination sites

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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.”

LOGO

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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.

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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.

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