2. Background of Company
P&G focus on providing consumer packaged goods
Founded in 1837 by William Procter and James
Gamble
Operates in over 180 countries today primarily through
mass merchandisers, grocery stores, membership club
stores, drug stores and high-frequency stores
P&G is organized 3 Global Business Units:
1) Beauty and Grooming
2) Health and Well-Being
3) Household Care
3. Mission
“We will 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.”
4. SWOT & TOWS Matrix
Strengths
1. Diverse range of business
segments
2. Large amount of customer
based
3. Most products are not
highly seasonal
Weaknesses
1. Expansion for brands is
limited
2. Previous CEO has focused
the strategy on innovation
without concern the
customer demands
Opportunities
1. Research and development
efforts to develop
technology
2. Capturing market share
from competitors through
advertising
3. Accelerate its growth in
developing markets such
as Brazil and India
Consumers in
developing market Brazil
and India have the
chance to use P&G
products (S2,O3)
P&G products can get
into Brazil and India
markets as there are
customer demand
(W2,O3)
Threats
1. A material change in
consumer demand or
products could have a
significant impact on
business
2. Business is subject to
legislation, regulation as
well as enforcement in
the US and abroad
To increase the
number of products that
can meet the consumer
demands (S3,T1)
To reduce the number
of products that cannot
give profit in order to cut
the cost (W1,T2)
6. Stars
Beauty, Fabric Care/Home Care, Baby Care
These are products with a high market share in a strongly growing market. The cash
resources used for and the cash resources required by these products are both high and
therefore in principle are in balance. After some time all growth slows.
Cash Cow
Snacks, Grooming
These are products with a high market share in a market that is not growing very much.
As a result of the strong market position, they produce many cash resources, and they
require few investments because of the limited market growth.
7. Question Marks
These products have a small market share in a rapidly growing market. As
the name indicates, they have unsure and questionable situation and can
create problems: they produce little but require a lot of cash resources. If
they are able to strengthen their position, they can become stars and over
time, when market growth decreases, cash cows.
Dogs
These are products with a low market share in a market that is growing
very little. Therefore, they produce little but also require few investments.
That means that the cash resources used for and the cash resources required
by these products are both low and for that reason are in balance. Dogs are
worthless cash traps, they do not bring sufficient profits for a company.
