Situation Analysis and Recommendation Conducted for P&G

Situation Analysis and Recommendation Conducted for P&G

1.1Company Background

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P&G is one of the best known and biggest consumer goods companies in

the world. It owned several well-known brands that were sold in over

140 countries to nearly 5 billion consumers. For example, Tide,

Pantene and Pampers.

P&G was founded by William Procter and James Gamble as a partnership

in Cincinnati, Ohio, merging Procter¡¯s candle-making company with

gamble¡¯s soap business in 1837. In the early 1860s P&G¡¯s initial

foray into branding was the Moon and Stars. After 50 years

development, P&G became one of the first companies in the US to offer

a profit-sharing program for its employees. And in 1924, P&G was one

of the first companies to create a market research department to study

consumer preferences and behavior. After world war ¢ò, P&G began its

international expansion. In 1948 it established an overseas division

while setting up its first Latin American subsidiary in Mexico.

Subsequently, P&G entered into the market of Japan, Europe and Saudi

Arabia in succession. By the mid of 1990s, over half of the company¡¯s

sales came from outside the US.

As its global expansion progressed, P&G continued to modify its

structure and internal processes to maximize global leverage. A

restructure program was implemented in the P&G which involved

comprehensive changes in organization structure, work processes, and

culture. This program aims to make employees stretch themselves and

speed up innovation. But this restructure program would not achieve

their initial expectation. Due to the maturity of the company¡¯s

established b...

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...ay the reasonable attention and budget for it. The

marketing stuff need to pay more time and expense for the lagging

brand. They must take more marketing investigations; the marketing

people will understand more and detail customer needs, finally they

would design the most suitable advertising for potential consumers and

publish it at right media with right time.

6.3 Increase the Revenue.

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P&G can give the more promotion for the end-users; it will increase

the potential customers¡¯ desire and interesting to buy their product.

It raises the income growth. Another method is negation with big

retailers because the big retailers take certain amount of profit from

the P&G such as Wal-Mart supermarket. The P&G require signing the new

agreement to reduce this share profit with big retailers.