Can Proctor and Gamble survive and prosper by reinventing existing products in environment that requires new innovations? And will P&G be able to meet their target of 50% of the market share in each segment?
Which of the general environment segments are most relevant to the consumer products industry? What are the main opportunities and threats affecting the company?
Demographics— Proctor and Gamble is one of the largest consumer product companies in the world. They registered in the 2004 fiscal year global sales of $51.4 billion in the segments of fabric and home care, beauty care, baby and family care, healthcare, and snacks and beverages. The products in these segments include Tide, Crest, Charmin, Downy, Pampers, Folgers, Bounty, Ariel, Pringles, Always, Pantene, and Iams. The industry is growing rapidly due to the high demand of these products, because of increased competition. There is a higher population density caused by the increase in households per year. The total population in the US is approximately 300 million and growing. 67% of the population is between the ages of 15-65 years of age, which is the market that P&G is targeting. P&G offers 300 brands in 160 countries and an increase of 500% over the last decade means an increase in consumer activity. Sociocultural— Americans are increasingly worried about better products in their industry. They are high-end consumers when it relates to consumer products. They wish to get better innovative products and are willing to pay for them. People are concerned about their quality of life, hygiene, and being able to pamper themselves with luxury. The consumer products industry is based primarily on brand name, and brand loyalty. A consumer will forgo buying a product if it is unfamiliar to them. For example, in Germany, Jager changed the brand name to American style Dawn from the brand name of Fairy. This caused a