08-08-2012, 02:45 PM
Proctor & Gamble - Industrial Report
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Company Overveiw
World’s largest maker and distributer of household items and consumer goods
Some of Proctor & Gamble’s “super brands”. Super brand means the product does more than $1 billions in sales in a year. P&G has 21 of these brands.
Mission Statement
To provide branded products and services of superior quality and value that improve the lives of the world’s consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.
Industry Pioneers
Created the concept of "soap opera" by sponsoring radio and television dramas targeting women
First Fluoride-based toothpaste, Crest
Tide was a revolutionary synthetic detergent
First disposable diaper, Pampers
General Business Level Strategy
Product Differentiation – through the utilization of brand recognition and value, they maintain a competitive advantage.
The products are of higher cost but also of higher quality and value.
Acquisitions
In 2005 Proctor & Gamble bought out Gillette for $57 billion, making it the biggest acquisition in company history.
This enabled P&G to go from having 16 to 21 “super brands”
They sold off their Folgers division in November 2008 for more than $3 billion in an effort to stay focused on the markets they are already in
External Environment
Economic
Adapted to the recession by lowering earning projections
Shed 15% of the management staff to help cope with the tough economy
Focus their greatest resources on the 43 best-selling brands
Social Cultural
Have to keep up with changing trends in consumer demand
Demographic
Everybody will use most these products
Middle to upper class consumers due to the higher price of the brand name products
Physical
Global – in more than 80 countries
Legal / Regulatory
Must meet industry regulations and standards in many different countries
Internal Environment
Human Resources
Hire and retain some of the most talented people in the industry.
Rewarded and recognized for their contributions through financial compensation, promotions and freedom to influence project selection
Global training programs on managing the innovation process
Training for high-potential junior staff