Procter & Gamble Case Study

Background boasts dozens of billion-dollar brands for home, hair, and health. The world’s largest maker of consumer packaged goods divides its business into two global units: Beauty and Grooming and Household Care. The company also makes pet food, water filters, and over-the- counter acid-reflux medication.

About two dozen of P;G’s brands are billion- dollar sellers, including Always, Braun, Crest, Fusion, Gillette, Head &amp: Shoulders, Mach, Lola, Oral-B, Pentane, and Well in the beauty and grooming segment, as well s Bounty, Charming, Dawn, Downy, Durable, Gain, lams, Pampers, and Tide in the household care segment. P&G’s hundreds of brands are available in more than 180 countries. Accomplishments over the past 1 73 years have come from successfully orchestrating the myriad factors that contribute to market leadership.

The 3 major competitors are: Johnson ; Johnson, Kimberly-Clark Corporation and Unlived. Questions:

1. P;G’s impressive portfolio includes some of the strongest brand names in the world. What are some of the challenges and risks associated with being the racket leader in so many categories? Indeed P&G’s portfolio Is one of the most powerful portfolios of trusted brands which includes Ariel, Breeze, Pampers ; Pampers Candor, Gillette, Oral-B… The company is the leader in 15 of the 21 product categories In which it competes, has 23 billion-dollar global brands, spends more than $2 billion annually on R;D, and serves more than 4 billion people In 180 different countries.

   Its sustained market leadership rests on a number of capabilities and philosophies. However, being the market leader in so many disagrees present some challenges and risks. P;G has to be careful not to sell too many brands and has reduced Its vast array of products, sizes, flavors, and varieties in recent years to assemble a stronger brand portfolio. In order to stay leader in the markets, P;G must have products different from the competition. These differences may be functional, rational, or tangible?related to product performance of the brand. They may also be more symbolic, emotional, or Intangible ?related to what the brand represents or means in a more abstract sense.

2. With social media becoming increasingly important and fewer people watching traditional commercials on television, what does P;G need to do to maintain its strong brand Images? P;G needs to do more advertisements on social networks such as Faceable, Twitter, Blobs and to do less ads on TV, radio… These efforts help Infuse stronger emotional appeals into its communications and create deeper consumer connections.
3. What risks do you feel P;G will face going forward? In my opinion, P;G should be aware about Its mature products in largely mature markets.

   Procter ; Gambler’s portfolio Is diverse, but filled with products in mature categories.

In addition, the company’s core brands are all category leaders, with material market share and impressive sales. Very often the categories in which it operates are growing slowly, IT at all, leaving market snare gains as ten mall means of increasing revenues. That is a challenge, since the company competes with large and equally well-financed companies. Losing market share may be a greater risk than not gaining market share, since Just maintaining market can be hard when you are number one in a category.