Industry Environment Analysis: consumer goods - The consumer goods' is a global and mature industry. - Highly competitive with an increasing number of competitors offering different versions of the same product and competing for price. Generic brands and Private-label goods are populating the market. - Product innovation and quality are critical to succeed. - Individual buyers have no bargain power. Instead, large retail chains and major supermarkets increase competition among consumer goods' manufacturers. Switching costs are low or in most cases null. Position of the company in the Industry: P&G has a global leader position in the consumer goods industry with many well known premium products in its portfolio like: - …show more content…
1999 2000 2001 Net Sales (U$ Billions) 38.1 40 39.2 Net Sales Variation (U$ Billions) 5% -2% Net Earnings (U$ Billions) 2.59 2.47 2.07 Net Earnings (U$ Billions) -5% -16% The most relevant event in the company's finances was in 2000 when Its EPS were reduced by almost 50 % (from $117 to $60). SWOT Analysis Strengths: - Global leading position in the consumer goods industry. - "Star brands" in most of its business segments - Multicultural and decentralized managerial team. - The strong and decentralized IT department provides collaborative technology to support key strategy-activities like planning and marketing, business-to-consumer, e-commerce and R&D in every business unit of the company. - Core competencies in R&D and Marketing. Weakness: - P&G star products are mature and had been for a long time in the market. - The first period of the Organization 2005 project dropped the company to its lowest levels in stock price and earnings, weakening the company's competitiveness and profitability. High costs of the Organization 2005 project implementation 1.9 billion in costs. Opportunities: - Procter & Gamble has opportunities in two business segments. The Health Care and the Beauty Care segments have the highest growing levels during 2002 (34% and 22%). Notice, that the Beauty Care this segment is already one of the sales leader businesses. Threats: -
Bargaining power of buyers is medium-high because of the low switching costs and wider spectrum of similar products selling at competitive prices due to the influence of developing countries
Proctor and Gamble may be the leader in its industry, but in order to maintain their status, they need to stay on top of their game if they are going to maintain this ranking. Their biggest competitors, Johnson & Johnson and Kimberly Clark are constantly looking for ways to improve
1) What significant changes have occurred in the Canadian mouthwash market in the past three years?
The company also made a research on why consumers use mouthwash, and the results were that people use mouthwash because it is part of their basic hygiene, it gets rid of bad breath, it kills germs and many other reasons.
Proctor and Gamble-Scope is faced with a very important decision, they need to prepare a marketing plan for P&G’s mouthwash business for the next three years. They want to know how they are going to be able to
The P&G community consists of nearly 98,000 people working in almost 80 countries worldwide. What began as a small, family-operated Soap and Candle Company now provides products and services of superior quality and value to consumers in 140 countries.
Procter and Gamble Co. also know as P&G, is an American multinational consumer goods company, founded by William Procter and James Gamble. Its products include cleaning agents and personal care products. It has in its kitty global brands such as Ariel and Tide in the Fabric care segments and Head & Shoulder, Pantene and Rejoice is the Hair care segment. For this case study selects P&G Company as it has an important role in the consumer segment products. As P&G was a popular company, the financials statement shows better performance in the previous year.
Johnson and Johnson, commonly called J&J for short, is one of the world's well known, largest, most decentralized and most diversified health care companies. Since 1887, Johnson and Johnson has been producing, manufacturing and selling products related to human health and well-being. Today J&J has over 200 autonomous operating companies and do business globally specializing in consumer products, medical devices and diagnostics, and pharmaceuticals. Consumer products are the company's most recognizable segment, including popular brands like Tylenol, Johnson and Johnson Baby Shampoo and Band-Aid. The medical devices and diagnostics segment manufactures products including surgical equipment
P&G is a multinational Organization of consumer goods situated in United States. It sells products like personal care, cleaning agents, pet foods. The P&G Company is well known for its unique strategy which cares about the need of human. It not only makes its product available to its consumers but also tries to improve the life of its consumers. This strategy is more focus on its consumers wants and that is why it has an appeal to the heart of the consumer. The company has diversified its product line and also acquired other companies which have significantly contributed in the growth of their profitability.
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
P&G is now one of the ten most valuable companies in the United States. During Mr. Lafley’s watch since the year 2000, sales have grown to more than $80B in 2008, from less than $40B when he took over, and earnings have tripled, topping $10B in 2007. The company has 24 brands generating more than $1B each, more than twice the number in 2000. And that number is likely to increase with close to 20 more brands with sales greater than $500M and growing. P&G’s stock, which was trading at about $28 per share when Mr. Lafley took over, now exceeds $70.
Proctor and Gamble recently completed large restructuring, put new management in place, and cut capital spending needs. Since then they are now focused on increasing top and bottom line results after shifting business mix toward higher margin, less capital-intensive health and beauty care sectors and also gearing towards developing markets and lower-income consumers.
Procter & Gamble (P&G) is a Fortune 500 American multinational company, and a world 's leading consumer goods company. P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G now has 50 Leadership Brands, which are among the world 's best known and which account for more than 90% of P&G sales. P&G entered the Chinese market through a joint venture in 1988. Now, P&G is the most successful foreign marketer in China as measured by market share.
The Procter & Gamble business strategy is to focus on creating new brands and categories so the company can focus on being the best in branding, innovation and scale. This is what sets this company apart from many of its competitors. The Proctor and Gamble are the global leader in all of their core businesses within the company which consists of laundry, baby care, hair care and feminine protection. This report is designed to understand the company’s business model and strategies, and analysis how the P&G has formulated its business-level strategies to pursue its business model.