P&G Essay

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1. Nature of product/service
P&G is an American multinational consumer goods company, founded in 1837, it headquartered in downtown Cincinnati, Ohio, USA. Its products include household care, beauty, grooming, and personal health care —and are household names around the world, including Pampers, Gillette, Tide, Ariel, Downy, Pantene, Head & Shoulders, Olay, Oral-B, Crest, Dawn. P&G is the world’s largest and most profitable consumer packaged goods company, with nearly $84 billion in sales and more than $10 billion in net earnings. Because over four billion consumers use their products every day, so nothing is more important to them than ensuring the safety of their products for their consumers and the environment. Household consumer products provide a variety of benefits to society, such as cleaner homes and improved health and personal hygiene, thus enabling an overall better quality of life. Technology plays an important role for the P&G. Besides empoldering new products every year, P&G improves and upgrades its products also. For example, the Tide, launched in 1946, so far it has been improved for 60 times. Innovation is an ability, it embodies a combination of advanced technology with the latest consumer demand. In Procter & Gamble, the work of the Research and Development Department is closely integrated with the overall business operations. Each business institutions have their own product development department. Innovative means to establish a network of global technology research. P&G employee over 8,300 researcher in 18 research center all over the world. They come from more than 600 different universities and research institutions. Scientists in Asia, Latin America, Europe, and North America through the vast research network to share the latest technology and successful experience, and continue to develop the excellent quality of the product. The company invests for innovation and development over 1.7 billion every year. As a result, the firm has nearly 20,000 applications for patents every year, and become one of the world's most innovative strength company. (http://annualreport.pg.com/annualreport2012/index.shtml) 2. Market Trends

The Procter & Gamble company always through the vision of customers’ behavior to invent their products. For example, P&G decided to invest in virtual reality, it impacted consumers and retailers around the globe. In a general session, Bernard Eloy, director of Virtual Solutions, P&G, explained how the company is enabling designers to collaborate virtually with both retailers and consumers to deliver a more effective store presence and improve the shopper experience. "One of the key benefits of virtualization is that we are gathering key data and insights, which we can pull together to create new products and new brand experiences," said Eloy. Critical areas include Virtual Shopping Simulation, collaboration with business partners, and the P&G product design process. (http://consumergoods.edgl.com/trends/Walmart,-P-G,-Kraft-Share-Sales---Marketing-Tactics73393 ) 3. Production/ Supply Process& Costs

The firm organizational is comprised of two Global Business Units (GBUs), Global Operations, Global Business Services (GBS), and Corporate Functions (CF). Global Business units: Effective February 2011, their two GBUs are Beauty & Grooming and Household Care. The primary responsibility of the GBUs is to develop the overall strategy for their brands. They identify common consumer needs, develop new product innovations and upgrades, and build their brands through effective commercial innovations and marketing plans. Global Operations: Global Operations is comprised of their Market Development Organization (MDO), which is responsible for developing go-to-market plans at the local level. The MDO includes dedicated retail customer, trade channel, and country-specific teams. It is organized along five geographic units: North America, Western Europe, Central & Eastern Europe/Middle...
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