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)
Matrix
Key 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 0.08
Threats
• 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 Factors
Strength 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 0.1
Weaknesses
• 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.