Вы находитесь на странице: 1из 22

PROCTER& GAMGLE

VISION
to be the best consumer products and services company in the world.

MISSION
to provide branded products and services of superior quality and value that improve the lives
of the world’s consumers, now and for generations to come.

MICHAEL PORTER’S FIVE FORCES ANALYSIS

TheProcter& gamble company is one of the most dominant firms in the global consumer
goods market. Such dominance is maintained partly by addressing the external factors in the
industry environment. These external factors are identifiable through a five forces analysis of
Procter& gamble. Michael porter’s five forces analysis is a tool for determining business
strategic decision-making considerations. In this case, Procter& gamble’s managers can
evaluate the business situation to identify the most significant external factors in the
consumer goods industry environment. The objective is to ensure that the company has
sufficient capabilities to address the impacts of such external factors. As a major firm in the
global consumer goods industry, Procter& gamble serves as an example of effective
management despite the forces in its external environment. However, an evolving set of
strategies is essential in keeping P&G’s success. As such, Procter& gamble must regularly
monitor the industry environment to ensure the appropriateness of strategies in addressing the
external factors, such as the ones enumerated in this five forces analysis.

A five forces analysis of the Procter& gamble company stresses the significance of the
intensity of competitive rivalry in affecting the business. However, the other forces in the
industry environment also influence the performance of P&G in the consumer goods market.
It is important that Procter& gamble remain effective in addressing all these forces and their
corresponding external factors. However, competitive rivalry must take priority. Procter&
gamble must strengthen its business against tough competition.
Competitive rivalry or competition (strong force)

Competitive rivalry determines the benefits of Procter& gamble’s competitive advantage and
how the business develops its competitiveness in the consumer goods market. This element of
porter’s five forces analysis identifies the influence of competition on the industry
environment. The following external factors contribute to the strong intensity of the force of
competition on Procter& gamble:

 large number of firms (strong force)


 high variety of firms (strong force)
 low switching costs (strong force)

There are many firms operating in the consumer goods industry. This condition imposes a
strong force on Procter& gamble, which needs to compete against many firms to ensure its
success. On the other hand, the high variety of firm makes it difficult to compete in the
industry environment. This external factor strengthens the intensity of competitive rivalry that
Procter& gamble experiences. The force of competition is further intensified because of the
low switching costs, which corresponds to the low level of negative consequence of moving
from P&G’s brands to other firms’ brands. For example, consumers can easily choose to
move from Procter& gamble’s tide laundry detergent products to surf laundry detergent
products. Such movement has minimal consequence on consumer experience regarding
product effectiveness, among other factors. The external factors in this element of the five
forces analysis point out the strong force of competition against Procter& gamble.

Bargaining power of Procter& gamble’s customers/buyers (weak force)

TheProcter& gamble company aims to satisfy consumers’ preferences and needs to attract
them to its consumer goods. Such satisfaction determines how customers or buyers impact
firms and the industry environment, as considered in this element of the porter’s five forces
analysis model. Procter& gamble must address these external factors that cause the moderate
intensity of the bargaining power of customers or buyers:

 low switching costs (strong force)


 low availability of substitutes (weak force)
 high overall market demand (weak force)
Procter& gamble faces low switching costs, as consumers can easily move away from one
consumer goods brand to another. However, the low availability of substitutes limits the
intensity of the bargaining power of P&G’s consumers. For example, it is difficult for
consumers to find natural or homemade substitutes too many of Procter& gamble’s personal
care products. Moreover, the high overall market demand minimizes the effect of individual
consumer purchase decisions on the company’s business performance and the condition of
the consumer goods industry environment. Based on these external factors, the bargaining
power of customers or buyers is weak in affecting Procter& gamble. This element of the five
forces analysis indicates that the bargaining power of consumers is a low-priority strategic
consideration in the Procter& gamble company’s decisions.

Bargaining power of P&G’s suppliers (weak force)

Suppliers support firms through the availability of raw or intermediary materials needed for
Procter& gamble’s business operations. This element of porter’s five forces analysis deals
with the influence of suppliers on the condition of the industry environment. The following
external factors are the determinants of the weak intensity of the bargaining power of
suppliers on Procter& gamble and the consumer goods industry:

 moderate degree of forward integration (moderate force)


 high overall level of supply (weak force)
 high population of suppliers (weak force)

The moderate degree of forward integration refers to suppliers’ considerable but limited
control of the distribution and sales of their products to firms like Procter& gamble. For
example, many third-party intermediary firms control the flow of materials from suppliers to
P&G’s facilities. This external factor imposes a moderate force on Procter& gamble’s
consumer goods business. On the other hand, the high overall level of supply limits the
influence of individual suppliers on the company. In relation, the high population of suppliers
further reduces the intensity of individual suppliers’ influence on Procter& gamble and the
industry environment. These external factors highlight the relatively weak position of
suppliers, especially when compared to large global consumer goods firms. In this five forces
analysis of Procter& gamble, the bargaining power of suppliers is a minor issue in strategic
decisions.
Threat of substitutes or substitution against the Procter& gamble company (weak force)

Some products in the market can function as substitutes for products from the Procter&
gamble company. The effects of substitution on firms and the industry environment are
considered in this element of porter’s five forces analysis. The following external factors are
responsible for the moderate intensity of the threat of substitutes against Procter& gamble:

 low switching costs (strong force)


 low availability of substitutes (weak force)
 low variety of substitutes (weak force)

The intensity of the threat of substitution against Procter& gamble is strengthened through
low switching costs. This external factor refers to the negative consequences of consumers’
movement away from P&G’s brands to other companies’ brands. However, the low
availability of substitutes weakens such threat. Moreover, the low variety of substitutes
further reduces their impact on Procter& gamble. For example, homemade personal care
items are typically available in only one or a few variants. The combination of these external
factors imposes a weak force on Procter& gamble and the industry environment. Thus, this
element of the five forces analysis indicates that the threat of substitution is a minor concern
in the consumer goods business. The other forces have a more significant impact on Procter&
gamble.

Threat of new entrants or new entry against Procter& gamble (moderate force)

Procter& gamble’s performance is partially based on the presence or absence of new firms or
new entrants in the consumer goods market. This element of porter’s five forces analysis
evaluates how new entry influences firms and the industry environment. Procter& gamble’s
strategies must consider these external factors that lead to the moderate intensity of the threat
of new entrants:

 low switching costs (strong force)


 moderate capital costs (moderate force)
 moderate economies of scale (moderate force)
TheProcter& gamble company’s consumers can easily move to other consumer good brands,
based on the low switching costs. This external factor enables new entrants to exert a strong-
intensity force against the company. However, the moderate capital costs limit this threat
against Procter& gamble. New firms find it difficult to directly compete, considering the
company’s organizational size and capitalization. Also, the moderate economies of scale limit
the effects of new entry on Procter& gamble. For example, typical new entrants cannot easily
match P&G’s strengths linked to its global scale of operations. Based on this element of the
five forces analysis of Procter& gamble, new entry is a considerable strategic issue, based on
external factors in the consumer goods industry environment.
SWOT ANALYSIS

A SWOT analysis of the Procter& Gamble Company indicates the significance of developing
stronger competitive advantage. Competitiveness is crucial to withstanding the force of
competitive rivalry. The fulfilment of strategic objectives based on organizational strengths
and consumer goods industry opportunities contributes to Procter& Gamble’s long-term
success. Also, strategies to address P&G’s organizational weaknesses and the external threats
against the business are essential. Such strategies support Procter& Gamble’s growth and
development.

Strengths (Internal Strategic Factors)

Procter& Gamble’s strengths enable the business to maintain its market position despite high
levels of competition with other consumer goods firms, such as Unilever This element of the
SWOT Analysis deals with internal strategic factors that support business growth and
expansion. Such factors enable Procter& Gamble to counteract the negative effects of
competition. The company must build on its current strengths, while also developing more
capabilities to further strengthen the business. The case of this SWOT analysis of Procter&
Gamble highlights the following strengths:

1. Strong consumer goods brands


2. Economies of scale
3. Efficient product distribution network

Strong consumer goods brands ensure Procter& Gamble’s competitive advantage. For
example, Tide and Pampers are household names that contribute to consumer loyalty and
P&G’s stable market share. On the other hand, economies of scale are a strength based on
Procter& Gamble’s global scale of operations. As one of the biggest firms in the market, the
company benefits from high process efficiencies and high cost effectiveness based on its
organizational size. In relation, Procter& Gamble maintains a high-efficiency global product
distribution network. This network involves company-owned facilities as well as third-party
service providers. The strengths shown in this element of the SWOT analysis support market
penetration and product competitiveness, which are emphasized in Procter& Gamble’s
generic strategy and intensive growth strategies.
Weaknesses (Internal Strategic Factors)

Despite its prominent market position, Procter& Gamble experiences barriers based on
organizational weaknesses. In this element of the SWOT Analysis, internal strategic factors
that limit business improvement are identified. These factors create difficulties in
implementing Procter& Gamble’s strategies. For example, the company encounters
challenges in enhancing its competitive advantage because of weaknesses in internal
processes. Procter& Gamble must address the following weaknesses to minimize such
challenges in its consumer goods business:

1. Imitable products
2. Limited online presence
3. Limited degree of business diversification

One of Procter& Gamble’s main weaknesses is the imitable nature of its products. This
weakness is typical in the consumer goods market, where products from different companies
have considerable similarities. Having imitable products is a weakness because it makes
Procter& Gamble susceptible to imitation, which could reduce market share. Limited online
presence is another weakness of the company. Retail companies and manufacturers are
continuously increasing their online operations. For example, many small and large consumer
goods firms are using their respective e-commerce websites to sell products online. However,
Procter& Gamble’s e-commerce website, the P&G Shop, has limited presence that operates
mainly in the United States. This condition limits the benefits that the company gets from the
global online market. Thus, improving online presence can enhance Procter& Gamble’s
marketing mix or 4Ps, while boosting competitive advantage. The limited degree of
diversification refers to the company’s operations primarily in the consumer goods industry.
This condition makes Procter& Gamble highly dependent on the consumer goods market. As
a result, such limited diversification is a weakness that maximizes the company’s exposure to
market risks. In this element of the SWOT analysis of Procter& Gamble, strategic reform for
e-commerce, product development, and business diversification are emphasized.
Opportunities (External Strategic Factors)

Procter& Gamble can exploit opportunities for growth and expansion in the global consumer
goods industry and in other industries. This element of the SWOT analysis enumerates
external strategic factors that impose barriers against the company’s growth and
development. In this case, Procter& Gamble must take appropriate strategic action to ensure
that the business benefits from the most significant opportunities. The company can
strengthen its competitive advantage through such opportunities. This SWOT analysis of
Procter& Gamble stresses the importance of the following opportunities:

1. Business diversification to reduce risks


2. Product innovation for competitiveness
3. Online presence development

The global market presents opportunities for business growth. In this case of Procter&
Gamble, business diversification is a major opportunity. For example, the company can enter
other industries via acquisition or new ventures to reduce risks linked to dependence on the
consumer goods market. Procter& Gamble also has the opportunity to increase its
competitiveness through product innovation. Increasing investment for product innovation
can lead to more attractive products, as well as novel products that create new income
sources. Moreover, the opportunity to develop its online presence has significant positive
implications for Procter& Gamble’s business. For instance, a more popular e-commerce
website can increase the company’s profits from online transactions. This benefit is
especially significant in exploiting online markets in developing countries. Also, a stronger
online presence can improve Procter& Gamble’s brand image. A more popular website
increases P&G’s brand exposure and consumer awareness. Therefore, this element of the
SWOT analysis shows that Procter& Gamble has opportunity to grow and improve its
competitive advantage.
Threats (External Strategic Factors)

External conditions can reduce the performance of Procter& Gamble, thereby threatening the
business. Such threats or external strategic factors that have potential to bring down the
company’s performance are identified in this element of the SWOT Analysis. Procter&
Gamble must continue monitoring its external environment to determine threats based on the
dynamic consumer goods market. The company must develop capabilities to protect itself
from the effects of these threats. The following threats are significant strategic considerations
in Procter& Gamble’s business:

1. Global and local competition


2. Imitation or counterfeiting of products
3. Trade barriers in some countries

Procter& Gamble must continue improving to address the threat of competition. Competitors
are always looking for ways to gain a bigger market share, which corresponds to a reduction
in the company’s market share
PESTLE ANALYSIS

The pestle analysis will be conducted to examine the current external environment for P&G
in the world market.

Political with operations in more than a hundred countries of different continents, P&Ghas to
deal with distinctive political patterns influencing its business operations. On one hand, the
company has to deal with and adapt to political pressures in different nations. On the other
hand, with regard to the corporation’s size, it plays integral roles to cooperate with and affect
local government.

Economic the world economy is presenting a pattern of rejuvenation from the recession and
world demand is forecasted to grow in the next years. Hence, the company can have
arelatively positive expectation on its sales performance. However, the development
indifferent market may vary because unbalanced development situation in different regions.

Social the company has to pay attention different social norms during overseas operations
due to distinguished cultural background in different markets. For personal products,
socialneed is evolving with time. For instance, the demand for men’s grooming is rising
recentyears.

Technological as the market size of personal products is very large, major players in this
industry invest significantly to gain technological advantage in order to maintain and expand
market positions. As a result, technology applied in this industry develops relatively fast.

Legal P&G has to comply with different national legislations on personal products, process
of production, and business operations.

Ethical because personal products are essential for people’s daily life, the quality of products
is extremely important for brands. Any scandals about product can lead to significant damage
on the brand image
BCG MATRIX
Star:
These are the products with high market share in a strong growing market. The cash
resources used for and the cash resources required by these star products are usually high
which balances the principle.
Gillette, Pantene, Head & Shoulder, Pamper are the star Products.

Question mark:
These Products have a small market share in a rapidly growing market. The products can
strengthen their products and become a "Star" and "cash cows" according to the market
conditions whether it is growing or the growth decreases.
Olay is a question mark.

Cash cows:
These Products have high market share, but the market is not growing.
Ariel, Vicks, Tide and Oral B are the Cash cows.

Dog:
The products with low market share and market growth. These products require very little
investment which means that the cash resources used and cash resources required is low.
Dogs don’t bring sufficient profits for the company.
Ambi Pur is a dog.

STAR:
Gillette
Pantene QUESTION MARK:
Head & Shoulder Olay
Pampers

CASH COWS:
Ariel DOG:
Vicks Ambi pur
Tide
Oral B
VALUE CHAIN

With the help of value chain any organization acquires the competitive advantages and the
value of the company is originated. Value chain can be defined as a process of different
activities of the organization that projects the relation of every activity. An activity could be
the service of the product. This is otherwise known as Michael Porter’s Value Chain analysis.
It is subdivided into 2 categories, Primary activities and Support activities

1.Primary Activities

a) Inbound Logistics - P&G has come up with a new strategy to serve customers in a
turnaround time of 72 hours i.e. called “Product-to-customer” cycle. In this cycle third party
takes the responsibility of storing the products and deliver them based on the customer
requirements.

b) Operations - This department takes care of assembling, maintenance, testing, packaging,


and maintenance of equipments. Products take their final shapes in the operations section of
P&G.

c) Outbound Logistics - There are authorized suppliers for P&G to supply the products to the
customers when required by the customer.

d) Marketing & Sales - Marketing and Sales is mainly depending on projecting the brand and
taking it to the public where they get to know about the products and tend to buy them.
Promotional offers and events are very important to boost the sales. They have businesses
running across 140 countries worldwide where they have direct sales and through authorized
dealers as well. Electronic media is more important source for direct marketing along with
print media, billboards displayed, featuring in the local festivals and carnivals and sponsoring
any sporting events which boots their sales as celebrities use those brands.

e) Service - Service is very important in all means like customer service, product service and
employee service for any organization to run successfully. Training and development
programs are very much important for the employees and the customer so that they can get to
know in and out of every product and use them efficiently. This was the very first company to
introduce the customer service department in the year 1941 delivering quality of service.
They every started web surveys so that any customer can give their comments and feedback
online.
2.Support Activities

a) Global Operations - Global operations department is the one who takes care of the sales
and marketing activates in all the countries. It is divided based on the geographical sectors i.e.
Europe(West), Latin America, Central and North America , Asia, Europe(East) and Middle
East Africa.

b) Global Business Service - Global business services comprises of data processing,


technology, Customer Service and Consumer Service and it provides the data to the global
units for the development purposes.

c) Corporate Functions - HR management ,External affairs, accounts management,


Legislative and treasury functions along with administrative affairs.
GRAND STRATEGY

1. Strategic Consistency

P&G strategies have been largely consistent for the last couple of years. They have
continuously focus on their core businesses and brands by keep growing core brands and
categories since they see it as the primary way to touch and improve lives. They have also
place an importance on keeping consistency in areas such as maintaining and increasing their
presence in developing markets, extending distribution systems to reach more consumers
through undeserved retail channels and expanding brand and product portfolio. In order to be
successful long term using a dividend growth investment strategy, selecting consistency is
necessary. P&G had to become a more consistent operator, and a much more consistent and
reliable innovator. P&G have made conscious decision to make consistency a priority. Their
culture as a company, their relationship with investors, and their long-term performance
metrics have absolutely depended on becoming consistent. This is what currently sets the
company apart from many of its competitors.

2. Collaborative Partnership and Strategic Alliance Strategy

The company is currently outsourcing its worldwide print operations to Xerox. This
collaborative partnership with Xerox will allow Procter and Gamble to reduce operational
costs by an estimated twenty to twenty-five percent. The five-year services contract calls for
Xerox to manage Procter and Gamble print shops, office and home-based work settings.
Working with Xerox, Procter and Gamble has the opportunity to deliver substantial
sustainability benefits in addition to cost savings and increased user satisfaction and
reliability. P&G predicts it will reduce print-related power usage thirty percent and paper
consumption by twenty to thirty percent annually.

3. Distribution Strategy

Procter and Gamble is currently working with i2 Technologies to support the physical
distribution of its North American operations. Utilizing the i2 Freight Matrix transportation
solution, Procter and Gamble is working to drive efficiency across its finished product
logistics through improved carrier selection, event management, and dashboard reporting
4. Human Resources Strategy

Procter and Gamble view their more than 138,000 employees as the most important asset of
the company and encourage them to share the same values and principles as the company. All
employees of Procter and Gamble are considered leaders and employees are encouraged to
take responsibility to do the best that they can while meeting business needs, bettering the
system, and helping those around them.
GENERIC STRATEGY :

In 1980s the people were used to generic strategies in order to accomplish the competitive
advantages and became popular day-day. Generic Strategies are divided into three categories
and are as follows

1.Cost Leadership

The product’s low price might gain the required competitive advantage for it to be the leader
in the market. P&G could become the leader in the markets because of its low prices and
quality products. Even during the global recessions all the companies have lost their sales but
P&G stood by its mark due to the efficiency in its strategy to market the products with
minimal resources and get maximum response. They have reduces the prices of the products
existing and those which have good demand. To gain more advantages in its sales P&G
introduced ” Tide Natural” at 30% lower cost than the existing ones which is intended to
target the mid-class markets and those who were neglected by other companies. They have
managed to get a strategy with minimal cost and better quality so that people get attracted and
buy them. Its beneficial for them in terms of cost and brand value. It has also come up with
MACH3 razor with triple blades with latest technology and marketed in the low class parts of
Latin America and Asia.

2.Differentiation

P&G is way ahead of most of the companies and they have approximately close to 300
different brands across the globe where they have made their presence felt with their
innovation. They are the very first company to bring the baby diapers into the market and
with the new technology called “dry max” they have increased their sales in the baby care
segments due to its tremendous demand. During the year 2008, out of the 25 products that
were launched newly, 10 were from P&G in comparison with J&J, L’Oreal Colgate etc.

3.Focus

Focus strategy is the strategy that tends the company to focus on small sectors in the market
to achieve competitive advantage. This is a very common strategy followed by the small
firms who cannot survive in the long run. As a result they have to focus on the differentiation
strategy or the lower cost strategy to keep its business safe. It is popularly known as Niche
strategy
CSR ACTIVITY

Peace:
It is an environmental education programme. With the aid of the Ladakh scouts children's
school by supporting the education of children who were orphaned by the tragedy and
helping reinstate essential infrastructure.

Drishti:
This CSR activity helps in restoring eyesight to 250 blind girls through the corneal transplant
operations. P&G contributed Rs. 1 for every pack of any P&G product sold.

Shiksha:
In Association with Sony Entertainment television Shiksha was launched in the year 2005.
This is a programme enables consumers to contribute towards the cause of education of the
under privileged children through a simple brand choices.
ETHICAL CONSIDERATION

As one of the largest daily commodity production enterprises around the world, people have
the tendency to pay attention to the company‘s production energy consumption,
environmental pollution, and the product‘s packaging with higher expectations. Procter and
Gamble, because of this increased awareness, now organizes a program that is called
"Change that Matters". The program covers four parts in doing business ethically; this
includes environmental sustainability, social responsibility, employees, and stakeholders. The
main Procter and Gamble ethical dilemmas that Procter and Gamble faces in regards to the
above would be environmental pollution and energy consumption.

Environmental Pollution

The environment damaging stack effect goes along with the large production outputs of
Procter and Gamble. The raw materials for the products contain a large number of
environmental emissions that may cause pollution. However, Procter and Gamble has been
making concerted efforts to push for green and low emissions. In fact, they are successful in
their washing products for not containing phosphorus, which has been an additive in many
washing products in the past. Friendly environmental material is one of their solutions to
address the problem that is environmental pollution. Additionally, Procter and Gamble is
devoted to make the process for their manufacturing, supply chain, as well as logistics as
environmentally green as possible. They apply smart eco-design in manufacturing, more
sustainable designs to reduce waste during transportation, and making scorecard systems for
their suppliers, aiming to help reduce environmental pollution throughout their supply chain.
CORPORATE GOVERNANCE

At P&G Values and Principles are the foundation of everything the company do this includes
Corporate Governance. Corporate Governance is how the management, shareholders and
Board of Directors ensure all investors both shareholders and creditors are protected against
managers acting solely in their best interest.

P&G governance consists of laws, policies, procedures and practices that protect the well-
being of P&G. The policies, procedures and practices in this section demonstrate how
seriously the company take corporate governance. The management acts as long-term
investors because they, like most P&G employees at all levels, are in fact long-term
investors.

Employees are long-term investors

In 1887, before P&G was even a publicly traded company, William Cooper Procter
introduced a profit-sharing program for employees. At the time, he said, “We should let the
employees share in the firm’s earnings. That will give them an incentive to increase
earnings.” He revised that program in 1903 to have the profit sharing be awarded in the form
of actual P&G stock. He reasoned that as employees became stockholders, their economic
interests and those of the Company would be bound more closely together. That program still
exists today, with a large part of each U.S. employee’s retirement consisting of P&G stock.
Additionally, virtually all employees own P&G stock or stock rights via various investment
programs. Because of this, employees’ economic interests are aligned with the Company.

A foundation of integrity

P&G has a strong history of operating with integrity throughout the company at all levels, in
all countries, both internally and externally.

 P&G has an active, capable and diligent Board of Directors that meets the required
standards of independence, with members who understand their role in providing
strong Corporate Governance.

 P&G maintain a strong internal control environment. The system is designed to


provide reasonable assurance that transactions are executed as authorized and
appropriately recorded, that assets are safeguarded and that accounting records are
sufficiently reliable to permit the preparation of financial statements conforming in all
material respects with accounting principles generally accepted in the United States.
We monitor these internal controls through an ongoing program of audit self-
assessment and internal and external audits.

 P&G maintains disclosure controls and procedures designed to ensure that


information required to be disclosed is recorded, processed, summarized and reported
in a timely and accurate manner. Company's Disclosure Committee is comprised of
senior-level executives responsible for evaluating disclosure implications of
significant business activities and events.

 Global Leadership Council is actively involved in rigorous oversight of the business.

 Every employee is required to be trained on the Company’s Worldwide Business


Conduct Manual, and every employee is held personally accountable for compliance.
Portions of the Worldwide Business Conduct Manual comprise P&G’s Code of Ethics
for SEC and New York Stock Exchange Regulatory Purposes, as further described in
the Manual.
KEY SUCCESS

1. Consumer Understanding

 Each year, Procter and Gamble interacts with nearly 5 million consumers in over 60
countries worldwide.

 It is important for Procter and Gamble to gain insight on consumer understanding in


order to discover innovation opportunities and to find ways in which the company can
better serve its customers. It is especially important for PG to recognize and adjust to
cultural differences among its international markets.

2. Brand Building

 Procter and Gamble currently has 23 brands within its product portfolio that
individually generate over one billion dollars in sales annually. PG also has 20 brands
that generate half of a billion dollars in annual sales. Combined, these 43 brands
account for 85% of PG’s total sales and 90% of PG’s profit. PG maintains the
strongest‐performing portfolio of brands within its industry. Moreover, PG maintains
its key competitive advantage for the overall success of the firm.

3. Innovation

 Procter and Gamble is the industry leader in terms of innovation. Each year in the
U.S., the IRI New Product Pacesetter Report ranks the best selling new products
within the consumer market. Over the past 14 years, Procter and Gamble has had 114
top 25 pacesetters—more than six times the number of pacesetters of their largest
competitors combined. (Pacesetter is defined as a new, innovative Consumer
Packaged Brand that exceeds $7.5 M in its first year).

 Established Go‐To‐Market Capability

 Procter and Gamble is ranked as the preferred supplier and industry leader in a wide
range of capabilities including clearest company strategy, brands most important to
retailers, strong business fundamentals and innovative marketing programs.
4. Scale

 Procter and Gamble is able to take advantage of its ability to operate on a large scale.
This allows PG to share processes and procedures among the categories under which
they operate. This also creates the ability for PG to capitalize on its international
expansion opportunities since they have the capabilities and resources for such
venture.