procter and gamble

Procter and Gamble

About Company

• Procter and gamble was established in

1837

• P&G markets almost 300 products to more

than five billion consumers in 160

countries

• More than half of Procter & Gamble’s

sales come from out of U.S.

About Company

• P&G Company announced in January 2005 that it was acquiring the Gillette Company for $54 million in stock.

• The company uses its slogan “touching lives, improving life” to describe itself.

Procter &Gamble Today

• Procter &Gamble’s 110,000 employees server nearly 5 billion customers world wide, including Europe, middle east, Africa, Latin America and Asia.

• P&G launches product in new countries (regions).

• In the US the company owns and operated 37 manufacturing facilities and leases and operates 2 manufacturing facilities.

Vision Statement

Be, and be recognized as, the best consumer products and services Company in the world.

Mission Statement

Two billion times a day, P&G brands touch the lives of people around the world. P&G people work to make sure those brands live up to their promise to make everyday life just a little bit better.

business segments

P&G had five main business segments:

• Fabric and Home Care

• Feminine & Family Care

• Beauty Care

• Health Care

• Food and Beverage.

Management Situation

• Purpose of the Company

• Value Statement

• Corporate Governance

• Organization Structure

• Competitors

Competitor Analysis

Competitors Sales ( 2004)

Johnson & Johnson $47,348 million

Kimberly-Clark $15,083 million

Colgate-Palmolive $9.8 billion

• Recommendations

FORMULATION

Vision Statement• Be, and be recognized as, the best

consumer products and services Company in the world.

Mission statement• We will provide branded products and

services of superior quality and value that improve the lives of the world’s consumers.

Mission Statement Evaluation Matrix – Procter & Gamble

• Customers YES• Products/Services NO• Markets YES• Technology NO• Concern for Survival, Growth, Profitability YES• Philosophy NO• Self-Concept NO• Concern for Public Image YES• Concern for Employees YES

SWOT Analysis

• Strength

• Weaknesses

• Opportunities

• Threats

The Input Stage

• External Factor Evaluation (EFE) Matrix

• Internal Factor Evaluation (IFE) Matrix

• Competitive Profile Matrix (CPM)

External Factor Evaluation (EFE) MatrixKey External Factors

Opportunities Weight Rating Weighted Scores• Expand market to other countries 0.06 4 0.24• Reconsider target market 0.07 3 0.21• Buy shares of others shareholders from all over the world for gaining more market share 0.05 4 0.2• Launch competitive products 0.08 4 0.32• Use latest technology 0.05 3 0.15• Develop distribution center in others countries 0.04 2 0.08Threats• Price competition in family care and coffee categories 0.07 4 0.28• Rising commodity prices, media fragmentation 0.08 4 0.32• Global economic 0.08 3 0.24• Political disruption 0.09 4 0.36• Government regulation 0.08 3 0.24• Strong Competitors 0.09 4 0.36• New Entrant 0.08 3 0.24• Cultural Norms & Values 0.08 4 0.32 Total 1 3.56

Internal Factor Evaluation (IFE) Matrix

Key Internal FactorsStrength Weight Rating Weighted

Scores• Market share 0.07 3 0.21• Brand image 0.05 3 0.15• Diversified products 0.06 4 0.24• Unique organizational chart 0.06 3 0.18• Global business Services 0.08 3 0.24• Market Development organization 0.06 4 0.24• Product availability 0.07 4 0.28• Unique and Innovative products 0.06 4 0.24• Brand conscious 0.06 2 0.12• High quality products 0.05 2 0.1Weaknesses• Merger 0.07 2 0.14• High prices 0.09 4 0.36• Massy infrastructure 0.07 3 0.21• Decreasing sales 0.05 4 0.2• Less advertisement 0.05 4 0.2• No Campaign for introducing the products 0.05 4 0.2

Total 1 3.31

SPACE Matrix for P&G

Boston Consulting Group (BCG) Matrix

Internal-External (IE) Matrix for P&G

PRODUCT LIFE CYCLE OF P & G

The Decision Stage

Strategies

• By using latest technologies they can enhance their products• Stepping into market development by using brand name as a tool• Seek more business by lower prices

• By increasing distribution center they can increase their sale

• Using brand name to overcome pricing competition• Lower prices to overcome political instability

IMPLEMENTATION STAGE

LONG TERM OBJECTIVES AND GOALS

• Strategic Objective• Become the fastest growing, most profitable and

most admired consumer goods Company in the world

• Become a company of winners• Become a company of leaders• Become a caring organization• Become a dynamic and innovative organization• Become a preferred business partner of

customers and suppliers• Become a partner in nation building

Financial Objectives

NOS (Net Operating Sales) 1 Billion Dollars by 2010

• Operating TSR (Total Shareholder Return) 13+%

• EPS (Earnings Per Share) 10+%

• NOS (Net Operating Sales) 4-6%

Management Policies

• To offer more incentives within the limited range to its employees

• To give training of using new technology to their employees

• To offer Extensive or limited management development workshops and seminar

• To centralize or decentralize employee-training activities • To buy, lease, or rent new production equipments • To establish a high- low- safety stock of inventory • To greatly stress quality control • To promote from within or to hire from outside• To operate one, two, or three shifts

Marketing Issues

• To set price according to their target market

• To use multiple channel of distribution

• To advertise online

• To offer complete warranty on products

• To use TV , Print , Billboards advertisements

Market Segmentation

• As P&G has already 5 major segments but still these have problem so we reconsider the segmentation process by using these elements

EVALUATION

A Strategy-Evaluation Assessment Matrix

Levels of Strategies

There are four levels of strategies:

• Corporate

• Divisional

• Functional

• Operational

Recommendation

• We recommend them to apply the suggested strategies in the implementation stage. Evaluation and review of the strategies is must to achieve their objectives and goals. This would also allow them to best utilize their resources.