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[answered] A Progressive Digital Media business COMPANY PROFILE The Pr

I need 3-4 pages summary to the attached file. Please list all the SWOT analysis points and ignore the company overview section.

A Progressive Digital Media business COMPANY PROFILE The Procter & Gamble


Company REFERENCE CODE: C895EAE6-25E0-4D36-B30D-69500B939DC1






TABLE OF CONTENTS TABLE OF CONTENTS Company Overview ........................................................................................................3


Key Facts ......................................................................................................................... 3


SWOT Analysis ...............................................................................................................4 The Procter & Gamble Company


? MarketLine Page 2 The Procter & Gamble Company


Company Overview Company Overview COMPANY OVERVIEW


The Procter & Gamble Company (P&G or 'the company') is one of the world's largest consumer goods


companies. It markets branded products in beauty, health care, grooming, fabric care, and home care


categories, among others. The company operates in the Americas, Europe, the Middle East and Africa


(EMEA) and Asia Pacific. It is headquartered in Cincinnati, Ohio and employed about 110,000 people as


of June 30, 2015. The company recorded revenues of $76,279 million in the financial year ended June 2015 (FY2015), a


decrease of 5.3% compared to FY2014. The operating profit of the company was $11,790 million in


FY2015, a decrease of 20% compared to FY2014. The net profit was $7,036 million in FY2015, a


decrease of 39.6% compared to FY2014.




Head Office The Procter & Gamble Company


One Procter & Gamble Plaza




Ohio 45202


USA Phone 1 513 983 1100 Fax


Web Address Revenue / turnover (USD Mn) 76,279.0 Financial Year End June Employees 110,000 New York Stock Exchange Ticker PG The Procter & Gamble Company


? MarketLine Page 3 The Procter & Gamble Company




P&G is one of the world's largest consumer goods companies. Its products reach nearly 4.4 billion people


worldwide. P&G has also built strongest portfolio of brands in the industry with 50 leadership brands


together generating nearly 90% of the company's sales and over 90% of profits. Leading market position


and strong brand portfolio provide P&G with significant competitive advantage as well as stabilize the


company's financial growth. However, increase in counterfeit goods not only deprives revenues for P&G


but also dilutes its brand image.


Strength Weakness Dominant market position garnered on a strong brand Heavy dependence on few customers




Significant R&D and marketing investments


Large scale of operations


Opportunity Threat Growing male grooming industry


Growing personal care and home care markets


Strategic initiatives to drive productivity and reduce


costs Counterfeit goods


Intense competition


Stringent laws and regulations Strength


Dominant market position garnered on a strong brand portfolio


P&G is the world's largest consumer products manufacturer with revenues of $76,279 million. The


company serves nearly 4.4 billion people worldwide. P&G was featured among top 50 of America's


largest corporations in terms of total revenues by an industry source in 2015. P&G holds leading global market shares in a variety of product categories. The company holds over 65%


of the global market share in the blades and razors category, and has a market share of more than 20%


in the male shavers market and nearly 50% in the female epilators market. P&G has a dominant position


in the retail hair care and color market with a global market share of more than 20%. The company holds


the number two market share position with nearly 20% of the global oral care market. In addition, in the


fabric care category, the company holds the number one or number two share positions in the markets in


which it competes, with a global market share of about 30%. The company's global home care market


share is around 20% across the categories in which it competes. In the baby care category, the company


holds a global market share of over 30%. The company holds either number one or number two positions


in most of the important baby care markets in which it competes. In the feminine care category, P&G is The Procter & Gamble Company


? MarketLine Page 4 The Procter & Gamble Company


SWOT Analysis the global market leader with a market share of nearly 30%. P&G's leadership position is built on its strong brand portfolio. The company has 21 billion-dollar brands


which generate annual sales of $1 billion to over $10 billion, and 11 brands which generate annual sales


of $500 million to $1 billion. The company's brand strength is demonstrated by the fact that its brands are


market leaders in most important consumer categories in which it operates globally. For instance, the


company's Bounty paper towel and Charmin toilet paper brands have a market share of 45% and 25%,


respectively, in the US market. Furthermore, Olay is the top facial skin care brand in the world with more


than 8% global market share. Dominant market position based on a strong brand portfolio enables the company to achieve economies


of scale in distribution and retain a strong bargaining position with retailers. Furthermore, strong market


position provides P&G with significant competitive advantage as well as stabilizes the company's financial




Significant R&D and marketing investments


Being a consumer products company, P&G relies heavily on innovation and continued marketing


investments in order to establish a significant competitive advantage. As a result, the company has made


significant investments in R&D and marketing. P&G invests nearly $2 billion a year in R&D. As part of its


R&D efforts, P&G interacts with over five million consumers each year in nearly 100 countries around the


world. P&G conducts more than 15,000 research studies every year and invests over $350 million


annually in studies focused on consumer understanding. Additionally, P&G involves external innovation


partners to boost its internal innovative capability, an approach it calls 'Connect and Develop'. Further,


more than half of all product innovation coming from P&G includes at least one major component from an


external partner. P&G's continued focus on product innovation has enabled the company to further enhance its market


position through additional revenue streams. For instance, P&G is recognized as the industry's global


innovation leader. Furthermore, a study conducted by an industry source that tracks and ranks the most


successful new consumer products introduced in the US revealed that over the past 20 years, P&G has


had 161 products on the top 25 New Product Pacesetters list, more than its six largest competitors


combined. P&G's strong R&D capabilities and consumer-based innovations are backed by significant marketing


investments. In FY2015, the company invested approximately $8.3 billion in advertising. Strong focus on


R&D allows P&G to renew its product line at regular intervals, which boosts customer loyalty and revenue


growth. Significant marketing investments to support its brands and a broad product portfolio help P&G to The Procter & Gamble Company


? MarketLine Page 5 The Procter & Gamble Company


SWOT Analysis remain at forefront in a competitive market.


Large scale of operations


The company has large scale of operations, both in terms of revenues and geographic presence. P&G


generated revenues of $76,279 million in FY2015. In comparison, some of the company's competitors


have smaller scale of operations, including Avon Products, which generated revenues of only $6,160.5


million in the financial year ended December 2015. Furthermore, P&G has a strong geographic presence


worldwide. The company operates in about 70 countries worldwide. Its products are sold in more than


180 countries and territories around the world spanning the Americas, EMEA and Asian regions. P&G


generated 40% of its revenues from North America in FY2015, 26% from Europe, 10% from Latin


America, 8% each from Asia Pacific, Greater China and IMEA. In addition, as one of the world's largest


consumer packaged goods companies, P&G has scale advantages across its brands, businesses, and


operations. This allows the company to optimize its spending and flow resources to better serve


consumers and continuously improve its efficiency and productivity. Therefore, large scale of operations


expands P&G's customer base and increases revenues by providing a competitive advantage.


Additionally, the company's large scale of operations gives it strong bargaining power. Weakness


Heavy dependence on few customers


P&G is heavily dependent on few customers for its revenue generation. During FY2015, FY2014 and


FY2013, sales to Wal-Mart Stores and its affiliates accounted for approximately 14% of the company's


total revenues. Furthermore, top 10 customers of the company accounted for approximately 33% of the


total sales in FY2015, FY2014 and FY2013. High dependence upon few customers reduces the


bargaining power of the company. Also, large customers could use their bargaining power to impose


unfavorable terms on P&G. Therefore, any decrease in revenue from these customers could have an


adverse effect on the company's revenues and profits. Opportunity


Growing male grooming industry


In the recent times, the business of beauty has expanded from being women-centric to include grooming


products for men as well. According to industry estimates, the global male grooming market is expected


to grow at a compound annual growth rate (CAGR) of approximately 8% during 2015?19. A similar trend


is noticed in other countries as well. The male grooming market in China is growing at rapid pace. The


sales of male grooming products in China are expected to grow at a CAGR of over 4.5% during 2015?20.


Additionally, in India, the male grooming market is expected to grow at a CAGR of more than 20% from


2015 to 2020. The factors that contribute to this growth in India include rapid urbanization, increasing per


capita income and enhanced distribution channels in tier II and tier III cities. The Procter & Gamble Company


? MarketLine Page 6 The Procter & Gamble Company


SWOT Analysis P&G offers grooming products such as male blades and razors, electronic hair removal devices, and preand post-shave products under the brand names such as Fusion, Gillette, Mach3, and Prestobarba. Most


of these products of P&G hold leading positions in the global market. Thus, the company is well


positioned to tap the growing male grooming market.


Growing personal care and home care markets


The company has been focusing on its core attractive businesses such as beauty, health, and household


care as these are fast-growing businesses. The personal care products market has been rising rapidly


primarily due to the increasing purchasing power and consumers becoming increasingly conscious.


According to MarketLine, global personal products market grew by 4.3% in 2014 to reach a value of


$502.6 billion. By 2019, this market is expected to reach a value of $625.8 billion, an increase of 24.5%


since 2014. The increase in this market is primarily attributable to rising disposable incomes of


consumers, and changing lifestyle. Similarly, in 2015, the global home care products market grew by


nearly 4.5% to reach a value of $140 billion, according to industry estimates. Focusing on these


businesses would provide steady revenues for the company in near term.


Strategic initiatives to drive productivity and reduce costs


P&G is undertaking strategic initiatives to drive productivity and reduce costs. For instance, in 2012, the


company initiated a restructuring program as part of a productivity and cost savings plan to cut costs in


the areas of supply chain, R&D, marketing and overheads. As per the plan, the company expects to incur


in excess of $5 billion in before tax restructuring costs during 2012 to 2017. The cumulative before-tax


savings are estimated at approximately $2.2 to $2.5 billion as of 2015. Further, gross margin increased to


50.3% of net sales from the end of FY2015 to December 2015. This was mainly due to manufacturing


cost savings. The company is also increasing localization of the supply chain to drive savings in transportation and


warehousing costs. In addition, P&G initiated supply chain redesign, starting in North America, in FY2014.


As part of this, the company is moving from primarily single-category production sites to fewer multicategory production plants. It is also simplifying, standardizing and upgrading manufacturing platforms for


faster innovation, qualification and expansion, and improved product quality. Furthermore, the company is


transforming its distribution network, starting with North America. It is moving from shipping products to


retail customers from different points to consolidating shipping into fewer distribution centers. These


centers are located strategically closer to customers and key population centers in the US, enabling about


80% of the business to be within one day or less of the store shelf and the shopper. This will allow both


P&G and its customers to optimize inventory levels while improving service and product availability for


consumers. As part of this supply chain redesign program, the company announced plans to construct a


multi-category manufacturing plant in Berkeley County, West Virginia, which is expected to open by 2017.


The plant will be one of the advanced and sustainable plants among P&G?s global manufacturing and


supply-chain operations, with over one million square-foot facility and also expected to produce multiple


brands. Such strategic initiatives will not only allow the company to reduce costs, but also to deliver


bottom-line growth. The Procter & Gamble Company


? MarketLine Page 7 The Procter & Gamble Company


SWOT Analysis Threat


Counterfeit goods


Trade of counterfeits and pass-offs products is affecting the growth of FMCG companies like P&G. The


spread of counterfeit goods has become global and the range of goods subject to infringement has


increased significantly. Some of the major factors that led to an increased trade in counterfeit products


include growing internet usage, extension of international supply chains and more recently, the global


economic downturn that led customers to look for low cost alternatives. According to the Intellectual


Property Rights (IPR) Seizure Statistics by Customs and Border Protection (CBP) Office of International


Trade, the number of IPR seizures in the US reached 28,865 in 2015, an increase of nearly 25% over


2014. China remained the primary source country for counterfeit goods, accounting for 52% of all IPR


seizures by the manufacturer's suggested retail price (MSRP). Similarly, in Europe, the market for


counterfeit products is increasing significantly. According to European Commission, the total number of


detention cases in 2014 stood at 95,194, an increase of nearly 10% compared to previous year. In other


regions such as Asia, counterfeit and pass-offs products are rapidly increasing. Recently, in February


2016, P&G filed a High Court action against a discount retailer and two suppliers, as they were selling


counterfeit Head & Shoulders shampoo and Ariel laundry powder. Besides revenue losses, counterfeits and pass-offs also affect the company's brand as they are unsafe.


Low quality counterfeits reduce consumer confidence in branded products. Counterfeits not only deprive


revenues for P&G but also dilute its brand image.


Intense competition


P&G faces significant competition across all its product categories and geographies. The company's


products compete with similar products of various large and small companies, including well-known global


competitors. P&G also competes with other branded products and retailers' private label brands. Key


factors influencing the company's competitiveness are product quality, performance, value and


packaging. The company faces stiff competition from Unilever and Colgate-Palmolive Company. ColgatePalmolive Company and P&G compete in developed and developing markets where they sell products


such as deodorants, soaps, dishwashing liquids, and fabric conditioners. In addition, P&G competes with


Unilever mainly on the basis of price positioning. This might put pressure on the company's global market


share. The company also competes with L'Oreal in the skin and hair care segment. P&G also faces competition


from Avon Products and Revlon in personal and other related products. Other competitors of P&G include


Kimberly-Clark Corporation, Johnson & Johnson, Energizer Holdings, and Church & Dwight Co. Such a


competitive landscape may require the company to increase its spending on advertising and promotions


or reduce prices that may lead to reduced profits and thereby affect growth. The reduced profitability and The Procter & Gamble Company


? MarketLine Page 8 The Procter & Gamble Company


SWOT Analysis revenue growth could then limit the company's growth opportunities.


Stringent laws and regulations


P&G has a global presence with manufacturing operations in nearly 39 countries. The company


generates a significant portion of its revenues from international operations, which are subject to risks of


non-compliance with various laws and regulations involving intellectual property, product liability,


marketing, antitrust, privacy, environmental, employment, and anti-bribery or anti-corruption (such as the


US Foreign Corrupt Practices Act), among others. The company?s sales outside the US also subject to


increased tariffs, quotas, trade barriers or similar restrictions. In countries like Argentina, China, Egypt,


Greece, India, Nigeria, Ukraine and Venezuela, P&G maintains local currency cash balances with


exchange, import authorization or pricing controls. Therefore, non-compliance with any of the above


mentioned policies, laws and regulations could significantly increase the cost structure of the company


and limit its ability to invest in future growth opportunities. The Procter & Gamble Company


? MarketLine Page 9 Copyright of Procter & Gamble SWOT Analysis is the property of MarketLine, a Progressive


Digital Media business and its content may not be copied or emailed to multiple sites or


posted to a listserv without the copyright holder's express written permission. However, users


may print, download, or email articles for individual use.


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