P&G v1

In todays companies, the analytics software plays the important role and guides the future activities
to a great extent.
The analytics software is the useful tool and great supporter for organization to reduce workload,
increase the productivity and create competitive advantages. The analytics software helps
organization knows exactly what customers want and their purchasing power, which will assist the
company makes best decisions whether big or small every day. What is more, the analytics software
works like an effective predictor, which will help organization look forward to the future scenario and
make the best plan. Also the software is the key business enabler
All these problems and difficulties need the analytics of data to provide a clearer picture.
P&G has been successful in using analytics in some fields so far. By analyzing the trends of consumer
purchasing, the company has designed the products, powder laundry detergents, which occupies a
great amount of market share in the whole world. Not only innovate the new products, the analytics
tool helps the company concern about the packaging, water use and transportation would be
beneficial to environment. In addition, the success analytics deals with the problems of wave 1 and
forecast the future activities for the company.
Even the analytics tools help the company succeed in some fields, it still has some challenges. A
change in forecast had a much broader impact than just a modification. If the forecasts were not
changed but results increased, P&G would be unable to meet demand and could demand and could
damage relationships with retailers and customers. Moreover, an overly aggressive forecast would
leave manufacturing with
Procter & Gamble has always maintained their brand position as a widely renowned and successful
international company. That success has been attributed to many things over the years, including the
information decision solutions provided through their core analytics team. With the passionate
leadership exhibited by the companys CEO, Bob McDonald, and the ambitious and visionary efforts of
CIO Passerini, P&G was able to secure a clear competitive advantage through the development of
their analytics department. In this case discussion, a brief overview of the companys efforts to
transform their IT department as well as specific actions and results will be discussed, in order to
identify where the company is positioned now, and where they should be headed.
This case explains how the leading soap and candle company, Procter & Gamble, dominated the
detergent market by implementing up-to-date analytics into the decision making process in its
operations. The development team led by Group President and Chief Information Officer Filippo
Passerini, helped create a system of tools designed to collect data and aid in statistical forecasts. The
data collected gave up-to-date performance information on specific brands, retailers and individual
stores. This information became available to all leading executives at the touch of button, compiled
into graphs and charts making visual conclusions easier to realize.
At a company meeting in 2011, Vice President of Procter & Gambles North America Fabric Care
division, Alan Torres, was shown results on the launch of a new compacted laundry detergent, which
was released two months earlier. The results were better than anticipated as IDS analyst, Julie Wright,
displayed the data on a giant screen in the Business.
First began in Mexico, then in Europe and Japan by 1980, P&G was doing business with 23 different
countries all over the world Company Structure & Control Systems included
Strategy Proctor & Gamble Market Development Organizations (MDO)
Global Business Services (GBS)
Corporate Functions (CF)
Global Business Unit (GBU) Structure &
Control Systems
To better connect and understand their consumers deliver a stronger marketing campaign
served as a core function in observing consumers and applying that information to create a suitable
marketing strategy Market Development Organizations (MDO) Served to deliver business
technology Focused more deeply on providing services that would build consumer loyalty
Connects the business to the rest of the world allowing partnerships with other companies
Promotes efficiency in operations and their work force Global Business
Services (GBS) Purpose was to balance both its functional operations and manage to stay on top of
competition Played an important role in keeping P&Gs reputation as the leader of having the best
products to sell Corporate functions focused on making more of a global move responsible for
developing business strategies that worked towards emphasizing their main global brands
Achieved their goals via the development of a strong brand image, structured strategies, and fighting
a constant battle towards achieving innovation to improve their products and marketing plans
This unit also split up into 5 smaller units:
Baby/Family care
Fabric/Home car
Snacks and Beverage
Health Care
Beauty/Feminine care Global Business Unit
The companys structure and units are the pillars that keep the company standing while tightly
matching its strategy by utilizing these systems to carry out their goals
The units serve in their respective ways to achieve the companys main goals such as:
Becoming more globalized,increasing sales by increasing their sale collection,connecting to
customers to understand their standpoint more in order to deliver better service improving upon
their global leadership potential. Their key Strategy included
Strong focus on research and development

Leading market position
Diversified product portfolio
Strong brand portfolio
Acquisitions Strengths SWOT ANALYSIS Internal
Factors External
Factors Positive Negative Threats Weaknesses Increasing instances of product recalls
Dependent on WalMart stores for majority of revenue
Poor website
Environmental issues Increasing price in raw materials
Regulatory environment
Global economic conditions
Counterfeit goods
Intense competition
Merger integration Expansion in developing markets
Future growth plans
Growing Indian FMGC market
Emerging mens market
Interest in natural/green products Opportunities Government Products must meet regulatory
standards in order to be sold in stores
Need to comply with rules & regulations of the sector in which the products are sold
Each product must be approved before it hits the shelves
ex. FDA Competition P&G belongs to several sectors
mainly involved in feminine care, but specialize in other areas too
Face competition from several other companies, most notably Este Lauder, Playtex, and Avon
Impossible to have a controlling monopoly
Must price competitively, rely on customer loyalty Public Opinion Perception of consumers correlates
directly with sales
Advertising & marketing
campaigns, commercials, etc.
Reasonable pricing, high quality contribute to a positive image Economy Success of the economy is
vital to P&G
Products sold by P&G are important, but not absolute necessities
The state of the economy often determines how much consumers are willing to spend Nature of
External Environment Corporate Strategy Approach & Type Approach: Reach
Business P&G Involves
1.Beauty/Feminine Goods
2.Emerging Men's Market Approach: Competition Contact

Focus areas for competition
1.Consumers
2.Products
3.Distribution
4.Technology Type: Growth Strategy
1.Expand: Reaching Customer

2.Drawbacks
3.Benefit By this period P&G grew into an multinational corporation
Started to focus more on health care, cosmetic, and fragrance by acquiring several different
companies
Richardson-Vick, Max Factor, etc.
established a worldwide research and development network in the U.S., Europe, Japan and Latin
America
Continuously built its global brand name
Crest, Pantene, Vicks, Pampers, etc. Internal Strength & Weakness Internal Strengths Efficient in
creating and acquiring new products
By partnering with other companies, P&G was able to build an extensive distribution channel as well
as increase their revenue source for the company
Also, P&G is very efficient in making the public aware of new products through advertising.
Over the years P&G has been efficiently building its customer loyalty and large, brand name
customers, such as Costco, Kmart, and Wal-Mart. Internal Weaknesses Due to intense competition in
the Beauty & Feminine care products, P&G must be able differentiate its products from its
competition, create competitive advantage, and understand consumer market demand.
P&G is slow in creating innovative products to meet consumer demands
ex. products with natural ingredients and more mens products due to a change in consumer
demands.
P&G hasn't been able to manufacture products for different ethic groups
the company has faced stagnant sale of some products and risky merger integrations Business Level
Strategy actions taken to provide value to customers and gain a competitive advantage by exploiting
core competencies in specific, individual product or service markets concerned with a firm's position
in an industry, relative to competitors and to the five forces of competition Porter's Five Forces
INDUSTRY has a presence in a variety of industries including personal goods, household goods, paper
goods, healthcare, food, beauty and feminine products Competitors:
Unilever
Kao
L'Oreal
Avon
Colgate-Palmolive
Playtex In order to maintain a leader in this market, P&G must continue to expand its operations
internationally Suppliers P&G has a co-dependent relationship with suppliers
suppliers need P&G to generate revenue but have little bargaining power
P&G needs suppliers for quality materials and the best production prices possible New Entrants scale
of products distributed by P&G creates challenges for new entrants
a company without the capital for heavy marketing or research and development would never be able
to compete Buyers the future of P&G is largely dependent on buyers
because the firm's focus is on low prices and targeting low-income consumers, more than 15% of
P&Gs total revenue comes from low-cost stores like Wal-Mart there are considerable substitutes for
all of P&G's products creating an intense competitive environment
in order to differentiate, P&G must continue to provide new and innovative products and branding
P&G works collaboratively with customers to develop deep shopper and consumer understanding and
improve its store presence Substitutes Regression Graph Estee Lauder Companies Inc. Comparison
with Other Companies Ratios P&G Colgate Palmolive

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In todays companies, the analytics software plays the important role and guides the future activities

Snacks and Beverage

Beauty/Feminine care Global Business Unit

Strong focus on research and development

2.Emerging Men's Market Approach: Competition Contact

4.Technology Type: Growth Strategy

1.Expand: Reaching Customer

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