Business level strategy: Procter and gamble (Strategies and recommendations)
Executive Summary
William Procter and James Gamble founded Procter and Gamble in the year of 1837, and started working as a candle and soap maker. It is a consumer goods manufacturing company whose slogan is improving lives and moving towards betterment with time. Unique Selling Preposition of Procter & Gamble is “our one product is equal to one vaccine towards the betterment of consumers”. It sells the products in more than 180 countries around the globe. It has also undertaken a number of brands, one of them are Revlon. The product being offered by Procter & Gamble are health care, grooming, beauty, home care and fabric, family and baby care, pet care and snacks. Some of the company’s items earned a profit of $1 billion each year and some around $50 million annually. Procter & Gamble is on maturity stage and potential competitors are Unilever, L’Oreal. It is facing fierce competition by competitors. Since it is one of the most growing companies, it has captured thousands of minds all over the world. It operates in countries like China, Hong Kong, Thailand, Sri Lanka, Bangladesh, United States, United Kingdom, Australia, India, Indonesia etc. the strategies of Procter & Gamble in order to sustain its goodwill and profitability in the market are: availability of its products, concentration on growing opportunities, evolving more products, concentrating on most strong and profitable markets, devoting and dedication towards research and development etc. products being offered by the company are Ariel, Tide, Vicks, Crest Tooth Paste, Gillette products, Head & Shoulder shampoo, Olay, Oral-B, Pantene, Always, Bounce, Herbal Essence, Ivory soap, Gain, Whisper, Mr. Clean, Puffs tissues, Safeguard soaps etc.
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OVERVIEW OF OFFERINGS AND CUSTOMER SEGMENTS OF THE COMPANY PROCTER AND GAMBLE
Procter and Gamble is an American based company, known as P&G mostly, is one of the largest and leading multinational consumer goods and manufacturing company which operates all over the world (Ranker, 2015) since 1837 till Today and offering jobs to the millions of people from all around the world (P&G, 2015). Procter & Gamble was founded and named on William Procter and James Gamble. It deals with multiple natures of products such as hair care products, personal care products including cosmetics (Nguyen, 2013), tissues, odor control products, home care products such as detergent and much more (P&G, 2014). Company says “We are in the business of making life better every day, our each packet is equal to each vaccine towards the betterment and enhancement” (P&G, 2014) and it is working firmly on that. Millions and billions of customers uses P&G’s products which satisfies their needs and demand they like it to be (P&G, 2014).
Multiple of brands are associated with this company whose profitability touches more that $1 Billion each year (P&G, 2015). Some of those star brands are Ariel, Tide, Vicks, Crest Tooth Paste, Gillette products, Head & Shoulder shampoo, Olay, Oral-B, Pantene (P&G, 2014), Always, Bounce, Herbal Essence (Forbes, 2014), Ivory soap, Gain, Whisper, Mr. Clean, Puffs tissues, Safeguard soaps which earns net profit of Billions of US Dollars every twelve months (P&G, 2014).
Procter and Gamble serves more than 180 countries and 6.5 million customers across the globe (P&G, 2014). It operates in Asia (Japan, China, Hong Kong, Korea, New Zealand, India, Philippines, Indonesia, Vietnam, Sri Lanka, Taiwan, Singapore, Australia, Pakistan, Turkey, and Bangladesh etc) (P&G, 2015), Latin America, North America and Western Europe. It has its head quarters in Singapore for Asian region (Lafley, 2008).
Critical discussion And Strategies of Procter and Gamble:
One of the most important and say efficient strategy of Procter & Gamble is availability of its products (Global-Operations, n.d.). Products manufactured by this company are highly available worldwide and are being offered and sold on convenience stores, super markets, hotels, motels, retailers, wholesalers, drug stores and intermediaries (MIT, 2015). The product availability of the company gives it an edge and makes it far superior that its competitors like Unilevers etc (SlideShare, 2015). Consumers get products easily and effortlessly when they are in need of a vaccine to make their life better (Favaro, 2013). The availability and accessibility of the specific products makes it brand brawny and hefty (P&G, 2015). This in turns makes customer loyalty towards the brand much tough and muscular with time and targeted customers start trusting the brand, and same is the case with Procter & Gamble (P&G, 2015). Supply chain of the brand is as strong as it needs to be in order to result in a successful chain management (Favaro, 2013).
Likewise many other competitors of the brand, P&G a further strategy is Research and Development (Riley, 2014). Brand devote approximately $2 billion each year on its R&D department contains 8000 employees around the world (Ng, 2015). In spite of having 8000 employees in its R&D department, company somehow failed to initiate a further brand successfully (Nisen, 2013). Hence, it faced intricacy regarding the department. One of the professors, named Charles Fine suggested the company to have a view on the world as innovation lab (SlideShare, 2012). Subsequently they start sourcing innovation through valued supply chain network as they deals the customer on one on one basis because of which they are rich on the drawbacks as well as the complains for products (MODE, 2015). This step resulted in innovation success rate three times than it was before.
To take advantage of the advice, P&G also launched its own website which motivates and welcomes innovations as well as feedback by the targeted customers, shareholders, stakeholders, partners and general public for further enhancement of the products (Khosla & Sawhney, 2014).
Another significant strategy being applied by Procter & Gamble as an efficient and effective tool is change management (GCI, 2014). The company observes and on the blink of an eye takes action to bring up the change and exploit the opportunity to meet consumer’s expectation on the very first place (Neff, 2014). As competition is growing faster and fastest, very next moment involves business bodies in the shock of sudden and significant change. P&G is a brand, who knows splendidly about their vision (Tode, 2014). Company takes change management as its one of the most crucial and unavoidable manner (Lafley, 2014).
Nobody cares how much you know, until they know how much you care, said by Theodore Roosevelt (Forbes, 2012). Famous saying that is being followed by P&G as it should be as it focuses and devotes more of its attention and care to the products who works as stars in portfolio and because of which entire corporation is enjoying free lunches, such as US market is strongest market being targeted by P&G (SlideShare, 2012) and they are continuously treating it as focal point with jam-packed devotion and dedication in order to make it strongest (P&G, 2014). Before finishing the strategy, I more point to be mentioned is Procter & Gamble’s strategy is concentrating on improving operations, at least better than competitors (SlideShare, 2013). This is one of the rich ways to win customers trust and loyalty towards the brand (P&G, 2014).
When introducing to one more line of attack of Procter & Gamble, it is essential to say that to uphold and retain its brand image; it is all about captivating trust and confidence from the targeted segment of market (Pakistan-Business-Journal, 2015). At the end of the day, all the steps, strategies, planning, developing and designing starting from a scratch is followed by a reason of winning trust and loyalty from customers because when nothing else seems to be helpful, this tactic does and it is not a piece of cake to get one’s trust. It takes abundant of efforts and plentiful of care, since one slip can destroy the whole.
One more strategy being introduced recently by Procter & Gamble is “Connect+Develop”. In this age of advancement, where the whole of the universe has become a global village, the connection is necessary for any company to float up in the lively market with its loyal consumers. However, in this social age, in which each and every individual is socializing has made us little more aware about our surroundings and circumstances taking place in this village (P&G, 2015).
Bruce Brown, Chief Technology Officer said “this strategy has helped us to deliver a number of successful and leading innovations which has accelerated the growth of Procter & Gamble critically”. The company is by hook or by crook managing to uphold this strategy and maintain its prospering innovation rate.
Laura Becker, General Manager said that they wanted develop and connect themselves in order to deliver products that has a greater level of innovation such as Swiffer Dusters which has broken down the innovations for market place manipulation. Moreover, she also stated that a category of products will be made that changes marketplace, and attracts customers which claim that they require the company’s products as they fulfill their requirement as per their wishes (P&G, 2012).
RECOMMENDATIONS
In order to maintain its position in the market, Procter & Gamble should keep an eye on its most profitable brands and products to even polish them so that not any competitor would have been able to eradicate the demand of leading products. For example, Swiffer Dusters-a product introduced by P&G which changed the direction of market trend so seriously.
As market conditions and market trends are changing so drastically these days, Procter & Gamble should have a close look than its competitors to innovate and exploit opportunity from the changing trends of market. If brand to be a brand get successful innovations, it could have touch top position in the markets as well as in the sights of consumers, investors, shareholders, stockholders and regulating bodies.
Creating a recommendation culture could aid to Procter & Gamble for being more victorious and unbeaten company in the market. Motivating and encouraging culture could be proved as back bone behind the success of the brand.
Managing change as soon as possible could also be proved as a strong tool behind the success. Since incorporating change in this unpredictable competing environment cold give support to the accomplishment of goals, reaching to the vision and creating win-win situation at the end of both, consumers and company.
Better growth opportunities to the employees will in return adds to employee’s sincerity and dedication towards work. Employees, who are the core bodies of any organization, will work dedicatedly and devotedly for their organizations, this will result in better quality works and services to the organization.
Quality assurance and image building could also prove to be helpful to capture the minds of targeted consumers.
CONCLUSION
Procter & Gamble was founded by William Procter and James Gamble. It deals with multiple products such as hair care products, personal care products including cosmetics. Millions and billions of customers uses P&G’s products which satisfy their needs and demand. Procter and Gamble serves more than 180 countries and 6.5 million customers across the globe. One of the most important and efficient strategy of Procter & Gamble was found to be its item’s availability. Consumers get products easily and effortlessly when they are in need of a vaccine. The availability and accessibility of the specific products makes it brand brawny and hefty. This in turns makes customer loyalty towards the brand much tough and muscular with time and targeted customers start trusting the brand, and same is the case with Procter & Gamble. Supply chain of the brand is as strong as it needs to be in order to result in a successful chain management. The company observes and takes action to bring up change and exploit the opportunity to meet consumer’s expectation at instant. Company takes change management as its one of the most crucial and unavoidable manner.
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