P&G Strategy

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How P&G Leverages Its Scale
In Ways Competitors Don’t Fully Appreciate

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How P&G Leverages Its Scale In Ways That Competitors Don’t Fully Appreciate

Contents
Executive Summary Leveraging Scale With the Retail Trade Use Corporate-funded Projects to Leverage Scale Leverage Scale With Specific Consumer Cohorts Systemic Strategies That Use Scale to Overcome Inertia Conclusion – Scale With Fewer People; Scale at Every Juncture About EMM Group, Inc. Contact Information 3 3 4 4

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How P&G Leverages Its Scale In Ways That Competitors Don’t Fully Appreciate

Executive Summary
Competitive analysis of P&G often focuses on hard outcomes like market share, gross margin, and number of patent applications but misses some under-appreciated but nevertheless critical strategies that drive P&G’s business. The least understood and most powerful P&G strategy is leveraging its scale. Least understood because it is hard to measure; most powerful because it touches everything the company does. P& G has four separate identifiable scale leveraging strategies:
1 a retail trade strategy a top down Corporate vs. Division/brand funding strategy a consumer cohort strategy systemic strategies

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“Scale is becoming increasingly important, particularly as retailers globalize and continue to drive out supply chain costs. We bring industry-leading supply chain management and the intellectual capital of our people to retail partnerships. We have higher-than-average market shares at our top global retailers. As big customers grow, P&G’s overall market share grows.”
A.G. Lafley, P&G CEO

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How P&G Leverages Its Scale In Ways That Competitors Don’t Fully Appreciate

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Leveraging scale with the retail trade
These are programs that have a high perceived value to the retailer and reinforce P&G’s competitive advantages. Of course, these programs are most aggressively sold to the

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