Efficiency

Efficiency Responsiveness Learning

Learning

Responsiveness

Presentation on
The Evolution of Strategy at Procter & Gamble

Reajul Karim Sutapa Nath S.M. Mudrahir Rahman Shukla Saha Md. Nuruzzaman Rashed

15-039 15-109 15-113 15-121 15-157

You Are With

Reajul karim 15-039

Procter & Gamble

Founded: 1837 Headquarters: Cincinnati, Ohio, USA Chairman and CEO: A.G. Lafley

Products: Consumer goods

Slogan: Touching lives, improving life Employees: 138 000 worldwide 25th largest US company by revenue, 81th in the world (2006)

Production Operations in 80 countries More than 300 brands

P&Gs strategies

You Are With

Md. Nuruzzaman Rashed 15-157

Discussion 01 International Strategy

Meet universal needs

Low cost reduction pressure

Dont face significant competitors

Other Related Features

Leveraging the Product

Location Economies

Local Manufacturing

Local Marketing

You Are With

Shukla Saha 15-121

Discussion 02
Reasons Behind the Success Until Late 1990s
Weak International Expansion of Competitors Developing New Products & Brands Decentralized Marketing Strategy

Discussion 02
Causes of Failure After 1980s High Tariff & Duties Charged on Imports

High Cost Pressure

Lower Bargaining Power

You Are With

Sutapa Nath

15-109

Discussion 03
Strategies adopted in the late 1990s and early 2000s

Transnational Strategy

Localization Strategy

Cost Reduction
Scale economies Location economies

Customization
Product offering Marketing strategy Business strategy

These Strategies Made More Sense

Causes of creating more sense
Building sales volume Internation al expansion Realization of scale economies Marketing campaign

You Are With

s.m. mudrahir rahaman 15-113

Findings & Conclusion

Today P&G is global colossus in consumer product business Weak international expansion of competitors, developing new products & brands, decentralized marketing strategy lead to success until 1990.

It changed its strategy from international to localization and transnational strategy

Causes of changing strategies

International expansion High Cost Pressure Local To boost Responsiveness profit growth

It restructured its whole marketing, production and product development process to adopt current strategies

THANK YOU FOR YOUR ATTENTION