ABSTRACT
Applying all the concepts of Advance Business Concept in
Procter and Gamble.
Advance Business Concept
PROCTER AND Ayesha Rafiq 16f8740
Komal Chaudhary 16f8706
GAMBLE Rabia Sajid 16f8738
Mr.Ammad Aziz
Group 4
Table of Contents
Exclusive Summary ...................................................................................................................................... 3
How P&G develop its equity? ...................................................................................................................... 4
Culture .......................................................................................................................................................... 4
Values ....................................................................................................................................................... 4
BCG matrix ................................................................................................................................................... 4
Organization Structure .................................................................................................................................. 5
Product type division ................................................................................................................................ 5
Geographical Division .............................................................................................................................. 6
Functional Group ...................................................................................................................................... 7
Segmentation................................................................................................................................................. 7
Organizational Model ................................................................................................................................... 8
Outsourcing of P&G ..................................................................................................................................... 8
Innovation in P&G ........................................................................................................................................ 8
Program Decision...................................................................................................................................... 9
General Environment .................................................................................................................................... 9
Task Environment ....................................................................................................................................... 10
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Exclusive Summary
Procter & Gamble, founded in 1837 and based in Cincinnati, OH, is recognized as the world's
largest producer and distributor of household and personal products. P&G is organized into three
global business units: Beauty; Health and Well‐Being; and Household Care. Procter and Gamble
operates in over 80 countries and offers products and services to more than 180 countries
worldwide. P&G has a strong global market presence. In 2009, P&G generated 61% of its total
sales in international markets.
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How P&G develop its equity?
P&G consistently created new categories of consumer’s goods. From the first disposable diaper
(Pampers) to the first toothpaste with fluoride (Crest) to the first synthetic laundry detergent
(Tide). Their Main focus is customer value
Culture
Values
Integrity: They always try to do right things.
Leadership: They have a clear vision of where they are going.
Ownership: They all act like owners, treating the company’s assets as their own and behave
with the company’s long-term success in their mind.
Passion for winning: They are determined to be the best at doing what matters most.
Trust: They respect their colleagues, customers and consumers and treat them as they want to be
treated
BCG matrix
Stars Question Mark
Gillette Olay
Pantene
High
Head & Shoulder
Pampers
Market Growth
Cash Cows Dogs
Ariel Ambi Pur
Low
Vicks
Tide
Oral-B
High Low
Relative Market Share
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Organization Structure
The previous organizational structure of P&G was hierarchical. Now the organizational structure
is productive divisional structure but they are converting into flatter structure because numbers
of levels are decrease and span of control becoming wider. In flatter it removes the excess layer
of management and speed of communication between employees improves. Proctor and Gamble
has product type divisional structure.
Product type division
This organization involve product grouping on the basis of marketing mix or 4Ps of P&G. Issues
with in a product lines addressed with in division. Just large scale issues require involvement of
higher management. This type of things minimizes the cost of business units.
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David Tylor
Fabric and Baby Femine &
Health care Beauty Grooming
home care family care
Geographical Division
This corporate structure of P&G provides adequate support to manage regional operations. P&G
has different management team for different geographic region.
David Tylor
Central and Eastern
Asia Latin America Westran Europe
Europe, Middle east
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Functional Group
Functional Group helps P&G to integrate consumer goods operations worldwide.
David Tylor
Global
C.FO H.R Marketing Technology Legal
Sales
Segmentation
Geographic Segmentation
P&G has operations in about 80 countries. P&G product are used in more than 180 countries.
P&G divide their market into 5 regions. By this company respond fast to local customer needs
and dynamic market demand.
Asia Latin Ameriaca CENTRAL & EASTERN
EUROPE, MIDDLE
Asia regional Latin America regional EAST and therir regiona
Headquarters in headquarters in Panama headquarterGeneva,
Singapore City Switzerlands
North America Western Europe
North America regional Western Europe Regional
headquarters headquarters in
inCincinnati, Ohio,
Geneva, Switzerland
USA
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Organizational Model
P&G has transnational organization model. where local responsiveness is high. They think
globally and act locally. P&G fill customer demand for same quality and cost globally. P&G are
neither strictly centralized nor decentralized. P&G are combination of both. Research and
Development are centralized while marketing are decentralized. They Invest 4%of Sales in
Research and Development which is higher than most of their global Competitors.
Outsourcing of P&G
In 2003, P&G entered into $4.2 billion worth of outsourcing partnerships in IT infrastructure,
finance and accounting, HR, and facilities management. HP took over the development of IT
applications and the operation of data centers and IT support, as well as key elements of accounts
payable. IBM won a contract to provide employee services such as payroll, travel support, and
expatriate services.
Innovation in P&G
P&G brings 50% innovation from outsides the company. P&G experimented a new way to build
social connections through digital media and other forms of direct interaction. They follow
connect and development Innovation Model. They designed Web sites to reinforce consumer
connections, to better understand consumers’ needs, and to experiment with prototypes. For
example, they used to hand-make baby diapers for a product test. Now, they show people
digitally created alternatives in an onscreen virtual world. If the consumers they are talking have
an idea, they can redesign it immediately and ask them, “Do you like that better? How would
you use it?” They are building a social system with the purchasers (and potential purchasers) of
their products, enabling them to code sign and co-engineer innovations.
Managerial Decision making
Non Program Decision
For Non Program decision P&G has built meeting space which is called Business Sphere in over
50 locations where management information is displayed for review and decision-making by
groups. Around the world, P&G managers are conferring in such rooms, with analysts from
P&G’s Information and Decision Solutions group. The real goal is to help them understand
quickly what’s going on in the business, and to decide what to do about it. Having such displays
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in common use is especially important to P&G because it is an extremely global company, and
prefers to develop managers by moving them regularly from one brand and geographical market
to another.
Program Decision
There is already defined code of regulation on their website.
Products
Beauty
Grooming
Femine
Price Place
Market
skimming
Competitive
Pricing Strategy
4ps Retailers
Authorized
Distributor
P&G Shop
Promotion
Advertising
Direct Marketing
Sales Promotion
Personal Selling
Public Relations
General Environment
Political Economical Socio Cultural
Rising governmental High growth rate of Technological increasing prefrences
support for e- developing markets for high quality
Growing online consumer goods
commerce improving dispoable market
Stable overall income increasing prefrences
Buiness automation for healthy products
governmental support Economic Stability of
for globalization Increasing fuel Dcelining popultation
the majorityof efficiency in
Governmental support developed markets growth rate in
transportation developed countries
for higher energy
efficiency
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Task Environment
P&G customers are all over the world so they have to adjust their
marketing strategy according to their local customers need
Unilever are one of the strongest competitior of P&G
Proctor and gamble have employee that belong from different
nations.So they have to adjust their salory and different packages
according to their respective countries
reatiler that provide consumer goods to their customer act as the
supplier to their customers
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