Procter & Gamble Case Study Contributors: Kyla Porter, Gladys Moreno, Jennifer Peters, Jessica M. Hernandez. California State University San Marcos
TABLE OF CONTENTS
Company Summary Business Description Company Timeline Company Analysis Business Developments- A Review Discussion of Business Strategies 1. Expanding Their Portfolio 2. Developing Adjacencies 3. Entering New Categories With Disruptive Innovation 4. Growing Share 5. Growing Markets SWOT Analysis Strengths Weaknesses Opportunities Threats Financial Performance Competition Synopsis Human Resource Practices and Initiatives Conclusion 3 3 4 5 5 6 7 7 7 7 8 8 8 10 11 12 12 12 16 18
Procter & Gamble Company is a global manufacturer and marketer of dozens of consumer products. Above the many products it markets are more than 300 brands that can be found in more than 180 countries across the globe. These countries include the Americas, Europe, the Middle East, Africa, and Asia. Procter & Gamble (P&G) is primarily entrenched in three areas of consumer goods that includes: Beauty and Grooming, Health and Wellness, and Household Care Products. These are referred to as the companies Global Business Units(GBUs). The Beauty and Grooming GBU ranges from primary products such as razors and toothbrushes to supporting products like toothpaste and shaving cream. The Health and Wellness GBU encompasses both human and animal care as well as snack products. The final GBU, Household Care, includes fabric, home, baby, and family care products. P&G also has global operations that are run by the Market Development Organization (MDO) of the company. The MDO develops market plans at the local level which are specific to the geographic location and demographic. In order for the MDO and GBU’s to operate together efficiently and effectively, the Global Business Service (GBS) provides the technological support to initiate processes and provide access to data tools that improve communication between departments in the company (Datamonitor Report, 2010).
1837- William Procter and James Gamble established The Procter & Gamble Company as a soap and candle company in Cincinnati, Ohio. There was no such thing as a “brand” at this time
(Procter & Gamble, 2006) . 1887- P&G Institutes a pioneering profit-sharing program that gives employees an ownership stake in the Company. This significant innovation helps employees connect their vital roles with the Company’s success (Procter & Gamble, 2006). 1924- P&G becomes the first company to conduct deliberate, data-based market research with consumers. this forward-thinking approach enables the company to improve consumer understanding, anticipate consumer needs and respond with products that improve their everyday life (Procter & Gamble, 2006). 1941- P&G becomes one of the first companies to formally respond to consumer correspondence by establishing the Consumer Relations Department. The addition of a tollfree phone numbers came in 1973 and the use of e-mail in the 1980’s furthered the companies connection with the consumer and realized their central philosophy of keeping the consumer at the heart of the business(Procter & Gamble, 2006). 1955- Crest is co-developed with Indiana University. This collaboration delivers a product that is breakthrough in the use of fluoride to protect against tooth decay, the second-most prevalent disease at the time (Procter & Gamble, 2006). 2002- P&G develops and introduces the Nuaturella feminine pad for the high number of lowincome level women specifically in Latin America. This product utilized the unique ingredient chamomile to provide a freshness that women seek in a feminine care product (Procter & Gamble, 2006). 2005- High Frequency Stores(HFS) begin to sprout in developing markets and become the largest medium of delivering products to consumers. These stores are an opportunity to penetrate low-income, fast growing markets and...