Introduction Through innovation and consistency, Procter and Gamble (P&G) has created some of the most dominant brands across several markets. They have been fully committed to their mission of improving lives in small, but meaningful ways for several years, and have been rewarded for their excellence with loyal customers and high brand recognition. No other company has been able to produce as many top quality products as P&G with as high a success rate. Therefore, investing in Procter and Gamble is a sound decision with potential for great return. Company Information Brief Description of P&G Founded in 1837 by William Procter and James Gamble, Procter and Gamble began as a simple shop in Cincinnati, Ohio that originally sold soap and candles. Today, P&G is one of the most dominant firms on a global scale, and has been the number one company in the household and personal care industry for many years. P&G offers top quality brands in several markets, and 22 of those brands have made over $1 billion dollars in annual sales (Our History). Some of their most successful brands include Tide, Dawn, and Pampers. Market position/growth potential It is no secret …show more content…
This decision will leave P&G with roughly 70 brands that account for 90% of its $83 billion in annual sales and over 95% of its profit (Ng, 2013). By cutting down on the number brands they have, P&G will be able to invest more in the products they know are performing at a high level. When asked about this decision and its effect on the company’s size, Former CEO A.G. Lafley responded saying, "I 'm not interested in size at all, I 'm interested in whether we are the preferred choice of shoppers (Ng, 2013)." With this plan in motion, P&G can put more effort into growing the brands that their consumers know and trust, and they can continue to build their potential
Based on the case, Lawson Cosmetics has an unresolved issue. They cannot decide on whether they should take the new branding initiative global, which is brought up by Gupta. Lawson is obviously a multinational company. In my opinion, they should develop major elements to market locally, and regionally and globally at the same time with a consistent brand image, but they need to adapt its brand to different markets by different ways carefully.
Background: Merck & Co. is an American pharmaceutical company and one of the largest pharmaceutical companies in the world. In 1971 the United States approved the use of an MMR vaccine made by Merck, containing the Jeryl Lynn strain of mumps vaccine. In 1978 Merck introduced the MMR II, using a different strain of the rubella vaccine. In 1997 the FDA required Merck to conduct effectiveness testing of MMRII. Initially it was over 95%; to continue the license; Merck had to convince the FDA that the effectiveness stayed at a similar rate over the years.
The Procter and Gamble Company. (2013, November 17). Company Strategy. Retrieved March 22, 2014, from http://www.pginvestor.com: http://www.pginvestor.com/GenPage.aspx?IID=4004124&GKP=208821
Although Lafley has had success, the underlying problem remains. How will Lafley return P&G to its rightful place in Corporate America? P&G's solution to its problems is through product line extensions, expansion into non-premium brands, as well as acquisitions, licensing, reinforcing market orientation through consumer focus, and outsourcing. This recommendation was based on following items;
Johnson & Johnson is one of the most successful companies and it can still be if it maintains doing the right thing continuously. They should keep being smart and fast decision makers to always be on top and ahead of their competitors.
Proctor and Gamble was founded in Cincinnati, OH, by William Proctor and James Gamble in 1837. Initially the company was started to compete with the 14 other soap and candle makers already established in Cincinnati, but around the end of the century, Proctor and Gamble dropped candle manufacturing altogether to focus on soap production. By 1890, Proctor and Gamble had increased their production to over 30 different types of soap.
1. How did L’Oreal become the world’s largest beauty company? What was the role of acquisitions in this growth?
P&G’s stage-gate PPM model is based on its Connect + Develop (C+D) system, which was designed in the early 2000s to make sure that a higher percentage of P&G’s product innovations meet its revenue goals and strategic objectives. As an FMCG multinational, P&G was competing in an already saturated market. Therefore, they needed “disruptive” product ideas that are unique in nature and have the ability to shake the market. So, it can be said that the key component of P&G’s PPM is pure innovation. The launch of Swiffer, Pampers, Tide etc. during the 2000s are the examples of such breakthrough products (Brown and Anthony,
Before Lafley took over for Jager, P&G was stretched to the max, haplessly wasting away resources and opportunities with an overcomplicated business strategy. P&G was raising prices on their best selling brands to cover for missed sales and high production costs for new brands that failed to be a successful [Lafley, 2003]. They had hired too many employees and were involved in several investments that were unprofitable. P&G had not had a hit product since the launch of ALWAYS feminine products in the 1980’s and each additional product flop only stretched their recourses thinner and thinner. Costs were high and moral low with employees not afraid to voice their lacking confidence with P&G’s leadership and direction. Subsidiaries were blaming corporate for their missed earnings and visa versa [Lafley, 2003]. Strategies between the brands at P&G clashed and each were out to safe guard their own interests. The prices of their consumer products were too high while the company failed to deliver customer satisfaction. These factors distracted them from what had originally made them successful – being an industry leader in innovation (Markels, 2006).
P&G Company has a unique logo as a company in whole along with its other products for example the head shoulders shampoo. The P&G Company logo is blue in color and consists of 26 tiny icons that represent each and every product produced by P&G Company. P&G Company has a reputation for value, low price and for being customer-focused. Moreover P&G Company has been particularly successful because of the strong brand. Branding associations have helped the company to expand into new sectors and markets. Has also been strong in the field of public relations, advertising and build its business at the local level. This local approach to marketing seems to be the main driver of success. P&G Company has a good range of products, including own label products. It seeks to provide excellent products and service, to ensure high levels of customer satisfaction. Private label products have helped strengthen Profit Company, and through the good broad appeal, best brand and also P&G Company has received a wider consumer audience by advertising. Aggressive expansion abroad has helped to maintain high profits. While the disadvantage is that it’s cost full and time consuming, it takes up months to create a logo and put it out in public as well as a lot of money is invested to it, hence this might Couse product
There are many strong brands associated to P&G‘s name all over the globe with total number of brands exceeding 300 in over 180 countries. In fact the annual sales of around 24 brands is over 1,000 million dollars and of 20 brands it is between 500 million dollars to 1 billion dollar. These 44 brands constitutes 85% sales and profits of the company. So, the launch of dry shampoo will have an advantage of brand value and trust which P&G has gained over years.
Price and advertising strategy: PepsiCo Overhauls Statergy. PepsiCo plans on saving 1.5 billion dollars in...
...re chances of growth and development for the company which is clearly understood through the research done on the Ansoff’s matrix. P&G is much ahead of its competitors and has also won many honors in terms of offering quality and innovative products. The company’s products are also sold by wide variety of retailers around the world and also through many e stores that sells the product online. Finally the company has also got more expansion opportunities which is clearly understood through the Yips model of Internationalization. As the company continues to acquire international brands over the years and succeeds in offering quality and innovative based products to the people all over the world it tend to give a much better completion to its competitors and of course get a wider market share making its competitors give a tough time in the industry.
Many companies are increasingly attempting to show their environmental activism, by aligning themselves with good causes, and making their products more eco-friendly. The Clorox Company, known for its not so eco-friendly products, such as bleach, pine-sol, and formula 409. With more and more companies being criticized for their not environmental friendly products, the Clorox Company, decided to launch a line of eco-friendly products called Greenworks. The product contains 95 percent natural plant and mineral biodegradable cleaning ingredients. The packaging is recyclable, and products are not tested on animals (Moriarty, Mitchell, Wells). Since launching the Greenworks product sales soared then fell. The company received a variety of criticism,
P&G also entered into the Singapore manufacturing industry through a Greenfield venture. The 6,500-sq.-meter-fragrance manufacturing plant was built within a seven month period and it was a multi-million dollar project for P&G (Moneycontrol.com, 2008). This wholly owned subsidiary allows the company to have control over their intellectual property concerning how to manufacture perfumes for their cleaning products and bathing products. According to Proctor and Gamble’s Group President of Asia, Deb Henretta, Singapore was a natural choice to build a perfume plant, since the country focuses on creating an innovative business-friendly environment that is supported with a strong infrastructure (Economic Development Board, 2008).