Procter And Gamble Case Analysis

Procter & Gamble is a major U.S. manufacturer of soaps, cleansers, and other household products. P&G have three main product lines: household and personal care, food consumer and health care products. P&G interact with over five million consumers each year in approximately sixty countries around the world. No company in the world has invested more money in consumer and market research than Procter & Gamble. Each year the company conducts at least fifteen thousand research studies and invests three-hundred and fifty million dollars in consumer research (PG. 2010). In order for the company to maintain profitable and grow, they must engage in strategic development that encompasses relooking at their processes, structures and culture and creating

It has built its reputation on achieving the goals it sets forth, following their vision and establishing principles based on their beliefs about business and consumers. The company has remained a front competitor in innovation by introducing new and improved products to consumers brought on by market changes. P&G realizes that in a competitive market speed of research and development is a key element. Procter & Gamble realized that the company needed to refocus their attention to continue to achieve a winning strategy to meet internal and external challenges. Leadership felt that their growth was to slow and their complexity was too high. Their objective became to build and create leadership brands globally better than ever before and to capitalize on the knowledge, capability and commitment of its employees. This will be achieved by simplification of the organization structure, minimizing processes, introducing technology and making strategic changes to their

In order to obtain a share of wallet of consumers in different regions, it must provide products that are tuned to the tastes and preferences, prevalent in those local regions. This also explains the rationale behind having variety of products so that buyers perceive value for money through their preferred brands. PepsiCo operates in a duopoly market competing with Coke only. It need not adopt a cost leadership strategy as both the cola majors take price signals from each other and adjust markup prices accordingly, to retain market share and revenue. There has rarely been an all-out price war between the two which would have ultimately bled both to huge losses. This allows both players to compete on the basis of differentiated products targeted at a wider and more diverse customer