...initiate its first global business? 4 2) Its Global business activity during the last 5-10 years ………………………………...6 3) What global initiatives the company has taken up currently and in the immediate future? 8 4) Can you suggest any alternative to its given future plan of expansion abroad? 10 5) Due to recent financial meltdown and the continuing recession/ slowdown in some developed countries , have some of the recently introduced expansion plans of your company become vulnerable? 12 6) What remedial measure / plan can you suggest? 14 7) Your suggestions for taking the company’s global businesses to the next level? 15 8) References…………………………………………………………………………….17 Executive Summary Procter and Gamble (P&G) was founded by William Procter and James Gamble on October 31, 1837. The company is now the largest company and brand in Fast Moving Consumer Goods (FMCG) industry. The company, today, deals with personal care product, pet food and cleaning agents. The company scored $83.86 billion sales in 2012 and ranks 1st in the Fortune magazine’s “Global Top Companies for Leaders.” The company as on February 19, 2013 has a market capitalization of $ 211.38 bn (Source: Yahoo Finance). The company has simple expansion plan. They have, since early days, have believed in both organic and inorganic growth. The company cultivated and grew in house brands for their organic growth. This includes the names of “Ivory” soap, “Tide” detergent, “Pampers” diapers,...
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...S BOOTS: HAIR-CARE SALES PROMOTION w 905A22 Pankaj Shandilya prepared this case under the supervision of Professors Robert Fisher and Murray Bryant solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. This material is not covered under authorization from CanCopy or any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2005, Ivey Management Services Version: (A) 2008-03-20 In early November 2004, on a cold winter afternoon in Nottingham, England, Dave Robinson was planning his sales promotion strategy for a line of professional hair-care products at Boots. The professional hair-care line consisted primarily of shampoos, conditioners and styling products (gels, wax, mousse, etc.) developed in collaboration with United Kingdom’s top celebrity hairdressers. Robinson’s challenge was to select one of three promotional alternatives — get three for the price of two (“3 for 2”)...
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...EXECUTIVE SUMMARY Proctor and Gamble (P&G) over its journey of about 175 years has become one of the world’s largest consumer goods Company with sales of nearly $80 billion and a net profit of about $10 billion. P&G has a presence in more than 180 countries with brands that accumulate to in excess of $25 billion. The company has achieved success by creating high quality brand recognized products that are sold on multinational level. It enjoys one of the largest brand names in household products like Pampers, Gillette, Tide, Ariel, Downy, Pantene, Head & Shoulders, Olay, Oral-B, Crest, Dawn, Fairy and Always and segments like household care, beauty, grooming, and personal health care. Although, P&G has world renowned brands, P&G needs to adopt strategies that enable it to maintain its competitive advantage over its rival. Consumer Goods industry where P&G operates has matured reaching the consolidation stage and competition amongst rivals is intense. P&G has many strategic options create competitive advantage over its rivals such as further market penetrations by rebranding its current line of products and selling them at a lower price. Another option for P&G is to expand in the emerging markets by collaboration or alliances with local businesses in various geographical regions. Lastly, P&G can specialize in skin care/beauty segment of consumer industry. P&G can provide consumers with products that are made with natural ingredients...
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...Brand Profile Pantene is the world's best-selling haircare brand, encompassing a huge variety of shampoo, conditioner and styling products, sold in around 100 countries. One of Procter & Gamble's portfolio of billion dollar brands, its worldwide sales were estimated at around $3.1bn for 2012, equivalent to around 10% global market share. However following rapid growth since the mid-1990s, sales began to slow significantly in 2007, especially in the key US market. As a result, the brand has undergone several restructurings of its product portfolio as well as a full revamp of logo and packaging. History 1945 Pantene is Born Inspired by the ingredient panthenol, Pantene, owned by Swiss drug company Hoffman-LaRoche, makes its debut as a premium hair care line across Europe, replete with glass bottles and prestige scents. 1960s The Leap to America Demand from European travelers in the United States drives American retailers to import Pantene from Switzerland. The shopping in New York City gets even better when Pantene launches exclusively in upscale establishments like the Waldorf Astoria and Saks Fifth Avenue. 1975-1976 The Gold Cap Pantene changed to new packaging with its iconic gold cap. 35 years later, women still remember gold-capped Pantene. 1983 Let’s Get Serious In the early ‘80s, Pantene expands its product lineup while elevating Pantene’s scientific expertise and health as the foundation for beautiful hair with the new Pantene tagline “The Care and Feeling...
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...Focus is what develops a Brand We Seem to Be Confusing Product Brands and Company Brands It's obvious that Procter & Gamble is a company brand, but what's an Apple? Like P&G, Apple is a company brand. But unlike P&G, the Apple company brand is a powerful motivating force for buying Apple product brands including the iPod, the iPhone and the iPad. Every company should have a powerful company brand, but they don't. Except for a handful of companies like Johnson & Johnson, most company brands influence very few consumers. How many consumers go out of their way to buy Procter & Gamble products? Or Unilever products? Or PepsiCo products? Or General Motors products? Not very many. How do you build a company brand? Many marketing pundits have a lot to say about this subject. Some typical approaches include: * Communicating culture, concern for the environment and sustainability programs. * Purpose-driven marketing, based on social responsibility and standing for something that inspires consumers. * Through innovation, by launching new products and services that are on the cutting edge of design and performance. All of these things are worth doing, but they don't do much to build a company brand. The problem is the noise level. It's not just the Fortune 500 that are causing the problem. That's just the tip of the corporate iceberg. It's the Fortunate 17,509. There's nowhere near enough room in the average consumer's mind to file away facts...
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...Background …………………………………………..………………………….……4 Objectives ………………………………………………………..……………….…. 4 Significance…………………………………………………….………………….… 4 Chapter 2 Project Proceedings………………………………………………..……………….....5 Chapter 3 Methodology 3.1 Data collection tools/instruments……………………………………….………..7 3.2 Subjects/Participants……………………………………………….………….....7 3.3 Data processing and analysis…………………………………………….…….....7 Bibliography …………………………………………………………………………8 Chapter 1: 1.1 Introduction of the Project: Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining "health & hygiene" in Pakistan. It is an anti- bacterial soap that provides germ protection for twice as long as ordinary soaps making it the doctors' number 1 recommended choice throughout the world. In addition to germ protection, it also caters to various other needs such as beauty care and protection against sweat odor. Safeguard Soap a product of Procter & Gamble is based on clinical testing. Safeguard is targeting the whole family, but it is putting more emphasis on children. Children are more vulnerable to germs and they need more protection, because they spend more outside the home playing around. Safeguard has positioned itself as an anti- bacterial soap which gives you 24 hours protection against germs. Analysis Safeguard has positioned itself in very unique manner, that is, it is the only anti-bacterial soap which gives 24 hours protection against germs. No other anti-bacterial...
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...Raphael Betelli Procter & Gamble case Question 1 & 3 As a market leader in so many categories, P&G faces many challenges and risks linked to the current market. • “Very often the categories in which it operates are growing slowly, if at all, leaving market share gains as the main 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”. • The size of the company is so large that it could make its growth difficult especially in mature product categories. • Maintaining at level such a number of brands is expensive and ask for a lot of efforts • Even if P&G has the funds to compete, the push into rapidly growing developing markets is a crowded trade. • It needs to continuously update and reinvent its products to keep its sales up and to remain a competitive number one. • Highly competitive competitors such as Kimberly-Clark and Johnson & Johnson • The customers’ tastes change inconstantly and often • Customer’s price sensitivity in the new markets especially in weak economic time. • The unstable economy and the increase of raw material costs. Question 2 In a way to maintain its strong brand image P&G has to • Massively use the social media such as the social networks and invest on the new advertising supports. • Make the buzz on some...
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...Executive Summary In this report, I would state and analyze Procter and Gamble (P&G). In the beginning, P&G had just supply soap and candles to the Union armies, but now it has become to a global manufacturing, distribution, and marketing company focusing on providing branded products with superior quality and value. It provided over 300 brands reaching consumers in about 140 countries. P&G is focusing on provided fashion, high quality products for consumers. In order to satisfy consumers, P&G segment its consumers into different group, such as age, gender, ethnicity, material status, and low income consumers. With the segmentation, P&G could analyze what consumers’ demand. Human’s living standard is improved rapidly. People is getting to pay more attention on cleaning products to keep their bodies clean and looking good. Most of the people thought that beauty/feminine care products were just for females, but actually the number of men spending time in front of the mirror, grooming themselves had increased. With the growing trend for men to use beauty products, P&G started manufacturing more products for them and try to satisfy their needs. For example, they designed the products so that they would attract male consumers, by using dark colors for the packaging so that it looked more masculine. P&G is always try to satisfy needs of consumers. With a company which had more than 100 years history, P&G was strong in brand quality reputation, price competition, scales of economic...
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...The Procter & Gamble company (PG) headquartered in Cincinnati Ohio, Incorporated in 1905, provides branded consumer good products. The company markets over 300 branded products, and operates through three global business units: beauty, health and well-being, and household care. The company’s products are sold primarily through, mass merchandisers, grocery stores, drug stores and sales to Wal-Mart. The direction of economic activity, such as government and monetary policy has a minimal effect on Procter & Gamble. Interest rate cuts may help PG, but the economic turn down, will hurt. Other economic factors play a larger role; an increase in inflation can cause consumers to spend their money on generic brands versus PG name brands. The company is also exposed to market risk through interest rate changes, and foreign exchange rates. If not managed property the company could lose billions. To safeguard against sudden exchange rates PG uses the forward contract option that provides a fixed exchange rate between the two currencies. Overall PG produces need based products and not luxury items, which will keep the company in good standings through most economic down falls. An industry analysis has shown Procter & Gamble’s top competitors; in the personal product industry are Kimberly Clark, Elizabeth Arden, Colgate Palmolive and Avon. PG is a mature saturated company and finds it difficult to expand market share, for a company of its size. To deal with market share expansion and competition...
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...L’Oréal was born in Clichy, France in 1907, the offspring of technological innovation. Nearly 90 years later, the spirit behind answering the needs of a Parisian hairdresser in search of more subtle and lasting hair color for his clientele, was at work in the Health and Beauty Aids aisles of K-Marts, Wal-Marts, drugstores, and grocery stores throughout the United States as L’Oréal sought to bring “class to mass” in the skincare market. From his office overlooking Fifth Avenue in New York City, Joseph Campinell, President of L’Oréal’s U.S. Retail Division explained L’Oréal’s strategy for the mass market: “We sell product in the department store and specialty store channels. The research and development we do in support of those brands like Lancôme and Biotherm can be leveraged into mass market outlets as well. We call this ‘trickle down and fire up.’ We trickle the technology down to the mass markets where the high volumes are and that fires up our next generation of products by funding the research and development. In the retail division we do what the company always does: drive sales with product technology. But, since the drugstores, mass merchants and grocery stores we sell through are “self- service” types of outlets, we have to support that technology with strong advertising, merchandising and promotions. We have been very successful with this in hair colorings. Our Preference by L’Oréal brand, with the famous advertising tag-line “Because I’m worth it,” has become...
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...CASE STUDY ANALYSIS OF P&G: SK-II GLOBALIZATION PROJECT FOR: Professor Howard Kupferman Written by: Andres Torres Procter and Gamble Case Study Analysis Actors: 1. Alan Lafley: Head of P&G Beauty Care GBU 2. Paolo de Cesare: President of Max Factor Japan 3. Durk Jager: P&G CEO 4. GLT: Global Leadership Team (made up of business GM’s of crucial MDO’s, people from R&D, consumer research, product supply, HR, and finance). Chaired by Lafley. INTRO: In this case study we are introduced to P&G as an organization and their changes in structure overtime. More specifically, after the acquisition of Max Factor Japan and success in its SK-II line, questions are raised about whether global expansion is feasible and profitable as a franchise. De Cesare ran this skin-care line in Japan, but he reported directly to Lafley. This is crucial because global expansion would require Lafley’s approval in budgeting and organizational support. P&G recently went through major organizational changes over a period of six years known as O2005. This created huge questions in the strategy that would be put together in the case of a global expansion for SK-II. Within the U.S. Procter & Gamble originally followed an organizational structure consisting of seven different divisions that were furthermore shattered into 26 distinct categories. Each category had its own R&D, supply management and marketing. In addition, the international organization...
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...Research Project Study the comparative study of HUL, P&G, Nirma, Johnson & Johnson and Godrej in respect of Price, Promotion and consumer demands. The check out the how much population uses HUL of P&G products. To search out what was the last years sales profit of various companies. My research objective is to do the survey of small samples in various parts of Barielly and fill up the Questionnaire by them. To give suggestions to the various companies why their market share are decreasing and how to improve their values. My research objective is to make out the research for the companies with the less expenditure on the research process with the maximum amount of profit by the research done. To check out which one of the company expands more money on their advertisement. Introduction FMCG FMCG refers to consumer non-durable goods requirement for daily or frequent use. Typically, a consumer buys these goods at least once a month. The sector covers a wide gamut of products such as detergents, toilet soaps, toothpastes shampoos, creams, powders, food products, confectioneries, beverages, cigarettes. Typical characteristics of FMCG products. Individual items are of small value. But all FMCG products put together account for a significant part of the consumer’s budget. The consumer keeps limited inventory of these products and prefers to purchase them frequently, as and when required. Many of these products are perishable. The consumer...
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...Group Assignment (Gillette Case Study) Submitted to: Mr. Syed Ahmed Submitted by: (Group Members) • Saima • Maria Memon • Kashif Soomro • Jawaid Shaikh 1. How is the Gillette Series being positioned with respect to (a) competitors, (b) the target market, (c) the product class, (d) price and quality? What other positioning possibilities are there? a. Premium to competition b. The Best a Man can Get" - not the most convenient or cheap at all, but the most value added products, building on the popularity of sensor. c. Differentiated on functional attributes through innovation d. Price premium at an index of 110 to 120. There are many other positioning possibilities for a Brand. Gillette can position the various products it has separately, or treat Gillette as a master Brand. If Gillett is one Brand, then the positioning should be the same as for the other series of men’s grooming products. However if it breaks it into categories, then there is a shaving line, and then a deodorant line, and it can get into an aftershave line as well, unless it wishes to keep it aligned with the shaving category. In this scenario there can be 3 distinct positioning that Gillette can take up in the consumers’ minds. 2. Is Gillette making the best use of the brand equity that has been created with Sensor? Given that Gillett is attempting to make a name for itself and that Sensor has been its biggest success, it makes sense to use the impetus of that to tie into the rest of its...
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...Fast-moving consumer goods (FMCG) – or consumer packaged goods (CPG) – are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items.[1][2] Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial THE TOP 10 COMPANIES IN FMCG SECTOR S. NO. | Companies | 1. | Hindustan Unilever Ltd. | 2. | ITC (Indian Tobacco Company) | 3. | Nestlé India | 4. | GCMMF (AMUL) | 5. | Dabur India | 6. | Asian Paints (India) | 7. | Cadbury India | 8. | Britannia Industries | 9. | Procter & Gamble Hygiene and Health Care | 10. | Marico Industries | The companies mentioned in Exhibit I, are the leaders in their respective sectors. The personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India. The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment...
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...Best Snacks Incorporated has had a trend of losing market share over the last two years. Not being able to adapt to the changes in the market has best Snacks on the ropes trying to reinvent how business is done. Best Snacks like any company has seen profitability decrease and production costs have been on the rise. Both Proctor and Gamble, and Toyota have experienced success even though neither company has developed new products both are an example of what Best Snacks can emulate and hopefully find success. Organizational Learning requires an overview of the current business model, and using this assessment to develop a learning curve that clearly elaborates the strengths and weaknesses so that a company like Best Snacks can improve upon them. While not having to spend a fortune in finding a new product perhaps a simple change in packaging size or scheme to make the product more appealing to the consumer. Becoming profitable Finding an increase in market share will certainly be an indicator that these implementations are being effective. With the increase in Market share the company will again become more profitable; moving more products with an increase in packaging size can cost more. However, if suppliers can move more products to Best Snacks perhaps they too can help with cutting costs due to bulk product purchases. Best Snacks can survey both employees and consumers to find out how to improve packaging both in appeal and perhaps finding a way to help the product...
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