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P&G Swot Analysis

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  • September 29, 2009
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About the Consumer Products Industry

Nondurable consumer products or consumables companies develop and manufacture a variety of household items that have a limited life span, usually three years or less. The industry can be segmented into household products and personal care products. Household products include: soaps and other detergents, such as laundry detergents and bleaches; polishes and sanitation goods; and other cleansing agents. Personal care products consist of : personal cleaning products such as toothpastes, shampoos, bar soaps and body washes; health and beauty aids, including cosmetics, fragrances and over the counter medications; and diapers and feminine hygiene products. Other items range from cat litter to automotive additives. The top worldwide producers include Procter and Gamble, Kimberly Clark, Unilever, Colgate-Palmolive, Church and Dwight, Clorox, and Ecolab.

Industry Trends and How It Operates

Given the low growth rates of population and household formations in the developed nations, it has become more difficult for consumer product manufacturers to achieve significant sales gains. In the graph above, the percentage of nondurable goods to personal income fluctuates around 25% but there is no significant change between months. In addition, consumer product companies are faced with intense competition and higher commodities costs. For example, rising oil and natural gas prices are key concerns since they serve companies directly as an energy source or indirectly such as resin (a substance used to create plastics). In response, household and personal care product companies are making efforts to stimulate sales in varying ways, such as entering new markets, creating new products categories, strengthening a strong brand image, acquiring businesses, targeting baby boomers, and spending on advertising. Because of these efforts, the industry should continue to consolidate, and consumers will likely see more product choices...