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sample_powerpoint_presentation.pptxProctor & Gamble Strategic Analysis
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Outline
Introduction
History of P&G
SWOT Analysis
Balanced Scorecard
Communication
Marketing
PEST Analysis
Ethics
Conclusion
Outline of Power Point Presentation
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Introduction
Looking at internal and external strategies
Developing Markets
Competitive advantage
This report provides a thorough internal as well as external analysis of P&G, identifies its mandate, along with certain strategies that would help it increase its profitability, profit growth and sustain its competitive advantage in both developed and developing markets. Although, P&G has world renowned brands, P&G needs to adopt strategies that enable it to maintain its competitive advantage over its rival.
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History of P&G
William Procter & James Gamble were founders in 1837.
Total assets at that time:$7,192.24
William A. Procter became first president in 1890.
Ivory soap was first branded product launched in 1879.
(Procter & Gamble, 2012)
Procter & Gamble is a US Global company that provides consumer products in the areas of pharmaceuticals goods founded in 1837.P&G processes operations in more than 80 countries thanks to 300 brands on market
Procter & Gamble is a multinational corporation with more than 300 successful brands worldwide. The company is earning trust of its clients in every part of the world and famous for its steady innovations in all areas of the company. More than 4 billion people use the products of Procter & Gamble daily.
The company has offices in Johannesburg and Cape Town. P& G has its Headquarters in Ohio, US.
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SWOT Analysis
Strengths:
Diversified brand portfolio
Research and Development
Global Operation
Strong Distribution Network
Weakness:
Online media & Leadership
Dependency
Missing Opportunity
Weakness in beauty care division
Opportunity:
Diversification
Capitalizing on online media
Environment concern
Threats:
Competition
No new innovation
Government regulation
SWOT analysis serves to summarize all of the key findings from the entire situation analysis process including important information about the company’s
internal strengths and weaknesses and important information about external opportunities and threats in the form of consumer trends, competition, and macro
environmental trends.
Strengths: include diverse portfolios, global operations, and strong distribution in which P&G uses to distribute their products and stay ahead of the competition.
Weakness: include a poor online presence, missing opportunity from lack of internet resources, and improvement needed in beauty products.
Opportunity: include P&G’s ability to reach out to diverse markets, improving on online media sources, and playing an important role for environmental concern.
Threats: include competition from other companies such as Unilever and Johnson & Johnson, lack of new innovation, and government regulations concerning outsourcing products.
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SWOT Analysis cont….
STRENGTHS
Leading brands
Procter & Gamble has strong brands to its name. The company boasts 24 billion dollar brands. It also claims 50 leadership brands that contribute 90% to its overall sales and profit.
(P&G brands, 2011)
OPPORTUNITIES
Emerging Markets
Emerging markets are expected to produce strong growth in beauty and personal care. Procter & Gamble can benefit from the shift of consumption to the emerging markets.
WEAKNESSES
Mature market reliance
The company continues to rely heavily on mature markets. The emerging markets will outperform mature markets over the forecast period putting Procter & Gamble in a vulnerable position.
THREATS
Global/local competition
Unilever remains a significant threat in the developing markets in some categories such as bath and shower. Local players will also compete fiercely with Procter & Gamble.
* Strengths: - Reaches retailers and consumers at the right place and time. * Well-driven brand building by benefiting customers. * Translates consumer desires into new products. * Brand recognition all around the world. * Weaknesses: - Out of hand management because of too much diversification. * Supply Chain System failing in some Countries. * No presence at all in some other countries especially in the third world countries. * Opportunities: - Opportunity to reach new target markets in third world countries such as Africa. * Can be more efficient as far as distribution and getting to retailers. * Investing in more countries around the world especially third world countries to implement brands, target markets and be close to retailers and customers. * Threats: - Tough competition such as Unilever. - Possibilities of concurrent to invest in third world countries and eventually monopolize the market.
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Balanced Scorecard
Product leadership:
According to the P&G website they have fifty leadership brands worldwide. Some of these brands include Charmin, Pringles, Tide, Iams and many more. Majority of P&G products are well known household names. 24 out of the fifty brands generate more than one billion dollars in sales per year (P&G brands, 2011).
Customer intimacy:
P&G conducts over 20,000 research studies every year and invests more than $400 million per year into consumer research. This is more than any other company in the world (“PG.com core...”, 2011). P&G is dedicated to improving their products so that their customers have the best experience while using them as possible.
A balanced scorecard is a strategic business tool used to collect and report information to management on four specific areas which include the financial perspective, customer’s perspective, internal operations perspective, and learning and growing aspect. These help a business monitor performance and make necessary improvements that will contribute to the success of the organization.
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Communication
● Makes the company profitable
● Develops trust amongst consumers
● Promotes change and motivates employees.
The purpose of most businesses conducting business in the world is to make a profit. P & G is a large and powerful company with a good purpose. Their purpose states that the company will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward P & G with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper. (Procter & Gamble, 2011).
P&G realizes that communicating to it’s employees everything that may be taking place internally is very important to it’s bottom line. P&G ensures that all of its units understand the impact of any change going on within especially at the professional level. (Gunu) The more employees are made to understand the changes that are taking place, the more they will begin to become excited about them.
(Olympics P&G -Thank You Mom Commercial – YouTube Video)
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Marketing
$100 million in projects
3 million consumer contracts for marketing
Analyzing the global market
Brand awareness and distribution
Procter and Gamble has been known to be the most skillful marketers of consumer packaged goods in the world with their powerful and emotional marketing campaigns. They currently hold one of the most powerful portfolios of trusted brands in the world. They have 138,000 employees in over 80 countries netting $79 billion in worldwide sales.
They generate their marketing campaigns through their vast use of customer knowledge and research. They study consumers on both ends, consumers and trade partners. Every year Procter and Gamble spends 100 million dollars on 10,000 formal consumer research projects to ensure that they are marketing correctly, their consumers are happy and to make sure they stay ahead of the curve regarding similar companies. They now have 3 million consumer contacts that they are able to use for conducting even more accurate marketing research. Procter and Gamble makes sure to encourage their marketers and researchers to emphasize their focus out into the field to interact with both consumers and retailers on a personal level for more accurate results.
Procter and Gambles long-term outlook is currently looking extremely well when compared to similar companies. They focus heavily on analyzing each opportunity in each market carefully to prepare the best products to market to the consumers of each of their many brands. Recently Proctor and Gamble has been focusing on increasing their presence in developing markets by concentrating on affordability, brand awareness and distribution of products through e-commerce and high frequency stores.
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PEST Analysis
The P&G Political Action Committee (P&G PAC) is a voluntary, nonpartisan political action committee. Registered with the U.S. Federal Election Commission (FEC) and appropriate state offices, the PAC allows P&G employees to pool personal, voluntary financial contributions to support candidates at the federal, state and local level,
Procter & Gamble believes that there is growing scientific evidence linking greenhouse gas (GHG) emissions and global climate change. As a global citizen, P&G is concerned about the potentially negative consequences of climate change and believes prudent and cost-effective action by governments, industry and citizens to reduce emissions to the atmosphere are justified.
P&G leaders are expected to build an inclusive work environment that welcomes and embraces diversity – an environment where people feel comfortable being who they are, regardless of their individual differences, talents or personal characteristics.
Political environment:
Environmental:
Social environment:
Technological:
P&G’s Global Medical organization advises and assists management and employees to assure a safe, healthy work environment.
PEST analysis is used to evaluate the political, environmental, social and technological influences that organizations might face when they are about to start a project. It provides external factors that organizations should take into consideration before they start the projects.
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Ethics
P&G's Pantene launched its Beautiful Lengths program in 2006
P&G's ads about efforts to provide free sanitary protection in Africa
Company principles include: respect for all employees, the interests of the company and the individual.
(Nickels, McHugh, & McHugh, Chapter 7, 2010).
P & G has built their business on a platform of ethical behavior. They pride themselves on providing superior products that enhance the lives of their customers. They strive to work within the letter of the law. Rational decision-making Is a multiple step process starting with creating a definition of the situation (Nickels, McHugh, & McHugh, Chapter 7, 2010).
P&G's Pantene launched its Beautiful Lengths program in 2006 to solicit locks of hair to be woven into wigs for women receiving cancer treatments.
Even P&G's ads about efforts to provide free sanitary protection in Africa to help keep girls from missing school.
Procter and Gamble has been identified as one of the best companies to be employed at as an employee in whichever country (Witt, 2012).
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Conclusion / Recommendation
They must be able to retain customer loyalty which has contributed to their success.
The company should exploit new market segments and opportunities to support for the concentrated growth strategy, gain market share, and minimize the threats of losing market caused by its vibrant external environment and fierce competitive market.
There are some strategies that PG can implement to improve and solidify its performance as follow:
Utilize the strengths in research and development and human resource to develop its technological resource. This will help the company to minimize the threat of substitutes due to the rapidly changes in technological environment.
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Utilize the strengths in financial resource, invest more in marketing to build up reputation with consumers and minimize the threat of losing market due to its high extent of competitive rivalry
Procter & Gamble has established itself as a market leader which is a result of its unique purpose and certain strategies applied on its products. The company's growth strategy is through acquisitions which makes the company highly diversified.
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References
Gunu, O. M. (n.d.). How Procter and Gamble Survived Through Innovation – A Case Study. Retrieved from knol: http://knol.google.com/k/how-procter-and-gamble-survived-through-innovation-a-case-study#
Nickels, W. G., McHugh, J.M., & McHugh, S.M. (2010). Understanding Business (9th ed.).
Procter & Gamble. (2011). Retrieved from http://www.pg.com/en_US/
Procter & Gamble. (2012). Procter & Gamble Official Website. Retrieved from http://www.pg.com/en_US/company/purpose_people/pvp.shtml.
Witt, H. (2012). Corporate news: Procter symbol succumbs to devilish rumor. Chicago
Tribune.
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