Procter and Gamble

Procter and Gamble Procter and Gamble

Syed Masood Ul Hassan FA07-MB-0183

INTRODUCTION OF THE INTRODUCTION OF THE COMPANYCOMPANY

Procter and gamble of Pakistan is a subsidiary of Procter and Gamble USA established in1990 and started production in 1991.The P&G Company were founded in 1837.

Company sells more than 250 brands in more than 130 countries and its operations are in more than 70 countries. It is therefore also rated in the top 25 of the FORTUNE 500 companies.

PROCTER AND GAMBLE IN PROCTER AND GAMBLE IN PAKISTANPAKISTAN

P&G started its operations in Pakistan in 1991. First it introduces its brand of Head& Shoulder After that it gave brand of Vicks and Olay oil.

Now company has eleven brands in Pakistan .The yearly sales consistently doubled during the past three years. P&G Pakistan establish local manufacturing base.

BRANDS IN PAKISTANBRANDS IN PAKISTAN

Head & Shoulder Vicks Pentene Safeguard Pampers Always Ariel

VISION of P&GVISION of P&G

“To be a leading consumer goods company and to improve the lives of world consumers by providing valuable and innovative products”.

MISSION STATEMENTMISSION STATEMENT

We will provide products and services of superior quality and value that improve the lives of the world's consumers.

GOALSGOALS

Think globally act locally

Build major global brands through strong programs based on local understanding.

Improve the environmental quality of its products, packaging and operations around the world.

SWOT ANALYSISSWOT ANALYSIS

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

STRENGTHSSTRENGTHS

Strong social & corporate image of P&G. Strong financial position of company More concern towards total quality

management Direct contact with customers Well-established and renowned distributors

WEAKNESSES WEAKNESSES

Safeguard is available in limited pack sizes; only two sizes are available. One is 125 gm and other is 75 gm.

Unwilling to serve low-income market. Price is especially very high towards lower income groups.

Due to limited manufacturing facility, they cannot reduce production cost of the safeguard. But now expansion is being made in hub plant to increase production of safeguard.

OPPORTUNITIES OPPORTUNITIES

Rapid growth in population High urbanization Increase in awareness among people about new

advancements P&G has a good corporate image among

consumers. Therefore, they can get maximum share from the soap industry by introducing multiple brands of soaps because they have already different soaps in their international health and beauty care product line

THREATS THREATS

Increasing market share of local Producers. The local Producers are playing an important role in soap industry, because they are providing low price soaps and try to penetrate in their local market by replacing the branded products

Increasing inflation in the country is also a major threat of P&G because it is reducing the purchasing power of consumers

Boston Consulting GroupBoston Consulting Group (BCG)(BCG)

Head & Shoulder

Ariel

Star

High

Relative Market Growth

Low

Relative Market Share


Safeguard

Vicks

Question Mark

High


Low



Pentene

Pampers

Always

Cash Cow

High


Low


Vicks

Olay oil

Dog

High


Low



IFE MATRIXIFE MATRIX

Factors Weight Rating Score

Company’s relative market share 25 0.50 12.5

Price competitiveness 15 0.60 9

Financial strength 30 0.90 27

Knowledge of customers and market

15 0.60 9

Technological Advancement 15 0.70 10.5

Total……. 100 70

BUSINESS STRENGTHS

IFE MATRIXIFE MATRIX


Market size and growth rate 30 1 12.5

Strong competition 20 0.90 9

Profitability 10 0.60 27

Capital requirement 15 0.70 9

Barriers to entry and exit 25 0.50 10

Total……. 100 70

BUSINESS WEAKNESSES

EFE MATRIXEFE MATRIX


Rapid growth in population 30 1 30

High urbanization 25 0.50 12.5

Increase awareness among people about new advancements

20 1 20

P&G has a good corporate image among consumers.

25 0.50 12.5

Total……. 100 75

OPPORTUNITIESOPPORTUNITIES

EFE MATRIXEFE MATRIX


Increasing market share of local Producers

50 1 50

Increasing inflation in the country

50 0.50 25

Total……. 100 75

THREATSTHREATS

SPACE MATRIXSPACE MATRIX

Strategic Position and Action Evaluation Matrix is useful for determining the current strategic position of the organization with reference to its environment and helps deciding the strategy profiles for the company.


Factors Rating

Market share -4

Product quality -1

Customer loyalty -3

Control over distributors and suppliers -2

Promotional activities -1

Product price -3

Technical know-how -1

TOTAL ….. -15

Average ….. -2.14=-2

COMPETITIVE ADVANTAGE


Factors Rating

Technological changes -3

Rate of inflation -2

Barriers to entry into market -3

Competitive pressure -1

Demand variability -5

Price elasticity of demand -3

Total ………. -17

Average ……… -2.83=-3

ENVIRONMENTAL STABILITY


Factors Rating

Unlimited Capital +5

High Market Share +4

No. Of Shareholders +3

EPS +3

Growth Rate +5

Technological Know How +5

Total…… +25

Average…… +5

FINANCIAL STRENGTH


Factors Rating

Growth potential +5

Profit potential +3.5

Financial stability +4

Technological know how +5

Resources utilization +2.5

Ease of entry into market +4

Total …… +24

Average ……… +4

INDUSTRY STRENGTH


SCORE ON X=AXIS Competitive Advantage

= -2 Industrial Strength

= +4 Total Score on

x-axis = -2+(+4)=+2

SCORE ON Y-AXIS Financial Strength

= +5 Environmental

Stability = -3 Total Score on

y-axis = -3 +(+5) = +2 Coordinates (+2 ,+2)

RESULT OF SPACE MATRIXRESULT OF SPACE MATRIX

The direction vector points towards the aggressive quadrant. Therefore, the suitable strategies for P&G safeguard are:-

Market penetration Market development Product development

THANK YOU

Procter and Gamble

Documents

local market

lowincome market

market total average

pg company

pg brands

maximum share

pg pakistan

country total