Procter & Gamble Co. (A) – Case Solution

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Procter & Gamble Co. (A) Case Answers

About The Company – Procter & Gamble Co.

Procter & Gamble Co. was an American Multinational FMCG Company founded by William Proctor & James Gamble in 1837. The company is headquartered in Cincinnati, Ohio, USA, and operates in more than 26 countries. It manages more than twenty-four 1 billion USD brands known worldwide, namely Gillette, Pampers, and many more.

The company is known for its global value addition in consumer products & iconic category-definition of products. The sales volume for P&G has more than doubled every 10 years due to new product introductions.

The Company’s Core Values

Q1. Prepare a 5C Analysis of Procter & Gamble Co.

Company:

• The company was founded in 1837 and incorporated in Ohio.
• The company currently operates 65 brands in 7 categories and gained 67.6 billion in revenue in 2019.
• It is an employee-centric company.

Customers:

• The company’s product range covers everyone from a newborn babies to the elderly.
• Procter & Gamble Co.’s customers are diverse and are present on six continents.
• The company is shifting to a precise, smart audience targeting.

Competitors:

• The company has three main strong competitors, namely: Unilever, Colgate-Palmolive, and Henkel.

Collaborators:

• Named as one of the top 10 companies for carrier opportunities, the company is considered master of the supply chain.
• The company’s products are sold through various channels.

Context:

• The company monitors the changing customer preference, and its awareness level is enhanced, which leads to precise targeting by the company.
• Socially, the company has more informed and responsible customers.
• The company utilizes technology in its advertising and point of interaction, which are always changing.

Q2. Do a SWOT Analysis of the company.

Q3. Explore the reasons for the success of P&G in the LDL category.

Company’s Reputation

• Talented HR
• Honest image in the industry
• Prudent Management
• Innovative Company
• Market Expertise

Divisional Line management

• LDL was part of the PS&D Division of Procter & Gamble Co.
• Helps in smooth, focused Business Operations

Strong brand positioning:

• P&G had 3 Brands, Ivory (1957), Joy(1949), and Dawn (1976), for different consumer needs
• Focussed Brand Strategy

Similar Pricing and Cost Structure across LDL Brands

• Uniform SKUs across Brands, similar pricing and cost structure across brands
• Marketing Expenses included 20% of the Total Cost

Performance Sub Category Growth & Price Sub Cat. Decline

• Delta Market Growth for 1973-81 (8 yrs.) in:

– Performance Cat: +16%
– Price Cat: -9%

• 2 of the three Procter & Gamble Co.’s brands operated in Performance Cat and none in Price Cat.