P&G SWOT Analysis Analyzes, The Procter & Gamble Company provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The Beauty segment offers conditioners, shampoos, styling aids, and treatments; and antiperspirants and deodorants, personal cleansing, and skin care products under the Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, and SK-II brands.
Did You Know? In the 1930s P&G buys overseas assets in the Philippine Manufacturing Company.
The company was formed in 1837 when William Procter, a British candlemaker, and James Gamble, an Irish Soap maker, merged their businesses in Cincinnati. The chief ingredient for both products was animal fat, which was readily available in the hog-butchering Centre of Cincinnati.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by P&G.
P&G At A Glance – P&G SWOT Analysis
Company: The Procter & Gamble Company
Founders: William Procter | James Gamble
Year of establishment: 31 October 1837, Cincinnati, Ohio, United States
CEO: David S. Taylor
Headquarters: Cincinnati, Ohio, United States
Employees (Dec 2020): 101,000
Ticker Symbol: PG
Type: Public
Annual Revenue (Dec 2020): US$76.12 Billion
Profit net income (Dec 2020): US$17.7 Billion
Products & Services: Baby Care | Fabric Care | Feminine Care | Grooming | Hair Care | Home Care | Oral Care | Personal Health Care
Company Website: www.pg.com
Top P&G Competitors
Competitors: Ador Multiproduct Ltd. | Bajaj Consumer Care Ltd. | Colgate-Palmolive (India) Ltd. COLIN. | Dabur India Ltd. DABIND. | Emami Ltd. EMALTD. | Gillette India Ltd. | Godrej Consumer Products Ltd. | Church and Dwight | Unilever | Johnson & Johnson | Henkel
P&G SWOT Analysis – SWOT Analysis Of P&G
SWOT Analysis Of P&G analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With P&G SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about P&G SWOT Analysis. Below Is The Detailed SWOT Analysis Of P&G.
P&G Strengths – P&G SWOT Analysis
1. Brand equity Brand equity: One of the biggest benefits of P&G is the fact that it owns brands that are extremely important in and of themselves. It has Gillette and is ranked as the 138th most valuable brand worldwide and has an estimated 20 billion dollars brand value. Additionally, it owns Tide along with Ariel both of which are among the Top 500. Duracell, Pampers, Pantene, Vicks, Whisper, Olay are all well-known brands on their own. It is no surprise that P&G has a broad brand, and its parent brand boasts incredible value.
2. Economy of Scale: With these top brands within the range of collection, the ability to scale are a significant benefit for P&G. The company shares its resources like factories, warehouses, accounts and other fixed incomes that are, in other words, a non-scalable cost expense. As the business grows in size, the economy of scale also increase.
3. Excellent R&D: A benefit to P&G is its top-quality R&D, which is the reason it has been able to innovate and bring numerous new products to market that have been a hit on the market. This is the reason why P&G has a great bottom line. Its products are ingenious and innovative in their the sense that they are not conventional in.
4. Multinational and multi products line presence: P&G is an multi national corporation that is based in the United States. It is a formidable multi-national presence and operates in more than 180 countries. In addition to operating in a variety of countries and regions, it also offers an impressive range of products. According to the most recent count it was 65 brands, all of which will have its own line of products. You can see the breadth of operations at P&G. Gross profit margin high Due to their investment in R&D and distribution and marketing, P&G believes in keeping greater profit margins. A strategy that has paid off greatly since they enjoy the highest profit margins of any company in the FMCG sector. This leads to the brand investing more in the development of their brand and thus revenue generation.
5. Wonderful distribution channel The HTML0 distribution channel is a fantastic one: It doesn’t matter if it’s rural, Urban, Moden or online, P&G brands have covered all distribution channels. There is such a huge need for products the brand that if they’re not available in the market, an opponent will soon be able to take over. However, the work done by distributors is admirable as managing the supply and delivery of a variety of products in multiple places is not an easy task.
6. It is well-known for its marketing tactics and strategies: P&G is well-known for their marketing methods, including strategies that are employed in the field. P&G is a company that employs pull marketing successfully and you can see the results through Tide, Ariel or Olay. In addition, the integrated marketing communications of P&G is effective and uses various ways to reach out to its customers.
P&G Weaknesses – P&G SWOT Analysis
1. Loss due to the closing of brands Loss due to closing of brands: Before 2014 P&G owned close to 300 different brands. However, it cut its portfolio of brands to just 65 brands that contributed to 95% of its total earnings. In this change, P&G also suffered losses due to the large amount of capital was invested in developing the remaining 235 brands. However, it was a necessity step that set the stage for the swift growth that would follow its P&G brand.
2. Organization structure can lead to the slow process of decision-making It is slow decision making: Because it’s an outdated Organization and because there are a lot of SBU’s and portfolios to oversee The decision-making process is considered to be slow, and it can affect the whole structure as a whole.
3. A low organic rate of growth: The rate of growth in the customer base is slow once the saturation curve has been reached and less innovation is taking place. This means that P&G is in the phase of low organic growth. To allow P&G to get over this, it must come up with some innovative products and marketing tricks to boost sales.
4. The need for regular changes is a necessity Regular change is required: In the area of cosmetic as well as personal product line, the current pattern is that each month the market wants that the product be altered. A new scent be launched or a brand new version be released to the market. The regular changes are an essential demand of the market and can impact the profits of the company.
P&G Opportunities – P&G SWOT Analysis
1. Rural markets Rural markets: A major issue for all FMCG businesses is gaining access to market in rural areas, which is highly sensitive to price and are not able to be influenced by advertising. The availability and price are the two main factors that affect the decisions of rural markets . This can be considered an opportunity for growth for companies like HUL or P&G.
2. Grow organically: Through launching new products on the market or stepping up marketing efforts, P&G can get its brand back in the game. Even old-fashioned brands such as Gillette have been damaged through private labels such as Dollar shaving club. Thus, the growth of organically grown brands promises an exciting future for Gillette’s name.
3. Greater purchase power: The purchasing power of consumers is expected to grow over the coming years as the economies of many countries booming. These emerging economies will create better markets and , consequently, they will be the ideal targets for such companies as P&G.
4. Mergers and Acquisitions: Acquiring local competitors that is successful with their product or distribution channels is a method to get rid of the rivals and also to include the brand new item to the portfolio.
5. Growth overseas: Like we said earlier as well, due to the growth of purchasing power in less developed and emerging countries, P&G will observe better growth in markets outside of the US as opposed to its home market, which is the USA.
P&G Threats – P&G SWOT Analysis
1. Intense competition: P&G must always be concerned about competition, particularly from HUL. HUL competes across a variety of product lines, as well as the brand is always in conflict, that affects the profit of the brands.
2. Localized / Unbranded competition: With local governments supporting local brands and the Make in India campaign, and foreign countries helping their own manufacturing and infrastructure me too products are growing and, consequently, offer better local or unbranded competition companies like P&G.
3. Private label: Numerous retail brands like D Mart and Reliance Fresh have started with their own brand names and are developing private labeling as well for soaps and personal hygiene products as well as other items. In the near future, similar offerings can expect by E-commerce companies that produce and sell their products at the lowest prices since they do not need the costs of distribution that they have to pay. Naturally private label products affect the sales of P&G.
P&G SWOT Analysis Overview Template
This is the SWOT report that P&G has done. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.
