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P&G Strategic Analysis

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P&G Strategic Analysis
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Strategic Analysis
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Procter & Gamble:
The Beauty/Feminine Care Segment of the
Consumer Goods Industry

Executive Summary 3 Introduction 3 Company Overview 4 Mandate 4 Stakeholders 5 Internal Analysis 5 External Analysis 7 Competitive Forces 8 Macro Environment 8 Strategic Options 10 Strategy 1: Market Penetration 10 Strategy 2: Product Innovation and New Product Development 10 Strategy 3: Status Quo 11

Executive Summary

Procter & Gamble (P&G) is a world-leading producer of consumer goods. Today, it consists of over 20 million dollar brands (like Gillette) and operates in 42 countries (Wikipedia, 2012).

The company has achieved success by creating high quality brand recognized products that are sold on multinational level. It has found the necessary efficiencies to be able to satisfy its consumers better than the competition.

Despite its success, the future of P&G as an industry leader will depend on strategies they adopt. The industry having matured, rivalry among the existing competitors getting more intense and the cost of raw materials continually rising makes it imperative that P&G adopt practices that will maintain their competitive advantage.
Introduction

This strategic analysis of Procter & Gamble (P&G) will focus on the Beauty/Feminine care segment of the Consumer Goods industry in which P&G operates. The aim of this analysis is to develop strategic options for P&G focusing on the resolution of how to differentiate the company from its competitors within intensely competitive, rapidly changing immediate, intermediate, and long-term time frames.

With 130 manufacturing facilities in over 40 countries, P&G’s world headquarter is located in Cincinnati, Ohio, U.S.A. P&G has a large scale of product differentiation in a way to make a better life for people. P&G


References: Ailawadi, K., Lehmann, D. and Neslin, S. (2009) “Market Response to a Major Policy Change in the Marketing Mix: Learning from Procter & Gamble’s Value Pricing Strategy”. Journal of Marketing. Vol. 65 (January 2001), 44-61 Bartlett, C., Beamish, P Baxter J. (2010) “Market Report Plus 2010: Cosmetics & Fragrances”.23rd Edition March 2010. Key Note Ltd. Galbraith, J (2009) Designing matrix organizations that actually work: how P&G Procter & Gamble, and other design for success. San Francisco. Calif: Jossey-Bass Holt, D Henricks, S (2010) “Procter & Gamble, Unilever and the Personal Products Industry”. University of Maryland, University College. Mockler, R.J. (2007). “Procter & Gamble: The Beauty/Feminine Care Segment of the Consumer Goods Industry” In C.W.L. Hill & G.R. Jones, Strategic Management: An Integrated Approach, 6th Edition. Boston: Houghton Mifflin. Peng, M. (2009) Global Strategic Management (2nd ed). South-Western. P&G P&G. (2011). Procter & Gamble: Our Foundation. Retrieved from: ttp://www.pg.com/en_US/company/purpose_people/pvp.shtml. Retrieved on June 9, 2012. Unknown. (2011, January 14). P&g 's market share play a winning strategy. Forbes ' Investing, Retrieved from http://www.forbes.com/sites/greatspeculations/2011/01/14/pgs-market-share-play-a-winning-strategy/ Wartzman, R Wikipedia. (2012). Procter & gamble. In Retrieved from http://en.wikipedia.org/wiki/Procter_&_Gamble
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