Question: Read the attached case on Procter & Gamble's SWOT analysis for the year 2020. Refer to the attached case as well as company websites, official

Read the attached case on Procter & Gamble's SWOT analysis for the year 2020. Refer to the attached case as well as company websites, official online reviews, your MAKT591 course resources, and published journal articles, news, official reports, and books to answer the following questions: PROCTER & GAMBLE (P&G) P&Gs impressive portfolio includes some of the strongest brand names in the world. 1) Would you say P&G has used the Waterfall, Sprinkler, or Born-Global market entry strategy? Explain by giving evidence from reviewed literature. 2) In what ways does P&G differ from other companies in the worldwide consumable products industry? 3) What growth opportunities has P&G been taking (Intensive Growth, Integrative Growth, Diversification Growth, or Downsizing and Divesting Older Businesses)? Explain why you think so by referring to the attached case as well as the latest literature. 4) According to the attached P&G 2020 SWOT analysis, Revenue Growth appears to be one of its main strengths. Investigate and discuss how, from a marketing management perspective, P&G pricing strategies may have contributed to such high revenue.

SWOT ANALYSIS The Procter & Gamble Co (P&G) offers various beauty and health care products. Large scale of operations, innovation capabilities, and revenue growth are the companys major strengths, whereas liquidity concern and lawsuits remain causes for concern. Positive outlook for skin care market in US, launch of new products, and feminine hygiene products market are likely to offer growth opportunities to the company. However, foreign exchange risks, intense competition, and stringent Regulations could affect its business opportunities.

Strength Large Scale of Operations Innovation Capabilities Revenue Growth Weakness Lawsuits Liquidity Concern
Opportunity Launch of New Products Feminine Hygiene Products Market Positive Outlook for Skin Care Market in US Threat Stringent Regulations Foreign Exchange Risk Intense Competition

Strength Large Scale of Operations P&G has large scale of operations, both in terms of revenues and geographic presence. Large scale of operations helps it in expanding its customer base and its competitive advantage. The company manages and operates on-the-ground activities in 70 countries worldwide and markets and sells its products in approximately 180 countries and territories through various mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, online channels, high-frequency stores and pharmacies. In FY2019, P&G generated 45% of its revenues from North America, Europe (23%), Asia Pacific (10%), Greater China (9%), Latin America (6%) and India, the Middle East and Africa (IMEA) (7%). As one of the world's largest consumer packaged goods (CPG) companies, P&G has scale advantages across its brands, businesses, and operations. This allows the company to optimize its spending and streamline resources to better serve consumers and continuously improve its efficiency and productivity. The company produces products in the US through its 24 manufacturing facilities spread across 18 states and also manages 85 manufacturing plants in 37 other countries, of which fabric and home care products are produced in 39 plants, baby, feminine, and family care products in 37 plants, beauty products in 24 plants, grooming products in 19 plants, and health care products in 21 plants. It also owns and leases regional shared service centers in the UK, Costa Rica, and the Philippines. Innovation Capabilities

The companys strong research and development (R&D) capabilities enables it to produce innovative products that meet customers expectations. P&G focuses heavily on innovation and continued marketing investments to establish a significant competitive advantage. Innovation based strategies enables the company to stay abreast of the changes in the industry and provides it with first mover advantage by launching products ahead of competitors and also delivers advanced products and services to its customers. It also aims to develop new and innovative products and enhance existing product lines by identifying eco-friendly products based on changing market trends and consumer preferences. The company also conducts research methodologies to its 10 major product categories which enable it to enhance the quality of products. It also contains patents and trademarks across the globe. P&G operates and manages four innovation and technical centers in the US. In line with this approach, in September 2019, the company announced its plans to open a Smart Hub at University of Illinois, to expand its innovation capabilities. In FY2019, the company incurred total expenditure of US$1,861 million on R&D efforts, which as a percentage of revenue, stood at 2.7%. Revenue Growth Strong growth in revenue improves investors confidence in the company and enables it to pursue its expansion plans. In FY2019, the company generated revenue of US$ 67,684 million as compared to US$ 66,832 million in FY2018, with an annual growth of 1.3% over FY2018. On a CAGR basis, the companys revenue grew 1.2% during FY2016-2019. Overall revenue growth resulted from 3% increase in unit volume, driven by mid-single-digit increases in Beauty and Health Care segment, and a low- single-digit increase in Fabric & Home Care segment. Also, due to 5% increase in organic sales volume. In FY2019, Fabric & Home Care segment accounted for 32.6% of the companys revenue followed by Beauty (19.1%) and Health Care (12.1%). Weakness Lawsuits Involvement in various lawsuits and legal proceedings could affect the companys brand image in the market. It also needs significant commitment on the cost and management resource front. In July 2019, a class-action lawsuit was filed against the company. According to the Plaintiff Ms. Kim Schoettker, P&G developed a promotional program under which it assured it assured a cash card rebate worth US$25 for consumers who purchase US$100 worth P&G products from Costco. The plaintiff claimed that she purchased more than US$100 worth P&G products, but she never received any rebate from the company even after claiming the issue to P&G. In February 2019, the company faced a class-action lawsuit from a consumer goods manufacturer in Israel. The suit claimed labeling on P&G products like Oral B White Luxe and Pro Expert could have mislead the Israel customers to use the products more than the quantity that is necessary. The plaintiff discovered the discrepancy when he peeled off the Hebrew language instructions, which are pasted on the English language instructions. Israelis unaware of the English language may use the mouth wash twice as fast as necessary, which could urge them to buy the product more often. Liquidity Concern

Opportunity Launch of New Products The company focuses on the expansion of its product portfolio through the launch of new products. In line with this approach, the company has taken many research initiatives to launch innovative products. In May 2019, the company's brand Gillette introduced its first-to-market Heated Razor by GilletteLabs. Launch of such products, helps the company to stand as a leader in tech and grooming community. In March 2019, the company's brand Cascade launched Cascade Pure Essentials, a dishwashing detergent. The product helps P&G to expand its household customer base. In the same month, the company's brand Oral-B launched Oral-B GENIUS X electric toothbrushes. P&D designed the product induced with Artificial Intelligence. The product launch showcases P&Gs innovative capabilities utilizing emerging technologies. Feminine Hygiene Products Market The company could benefit from growing feminine hygiene market. Rise in health consciousness and awareness among various female users, increase number of working women, rapid urbanization, rising disposable incomes and exemption from taxes on sanitary pads in certain countries are some of the key factors impelling the growth of the market. Increased usage of biodegradable and 100% plastic free materials for developing these products are expected to fuel the growth of the market in the future. According to in-house research, the feminine hygiene market was valued at US$4,280.8 million in 2017 and is further projected to grow at a CAGR of 4.2% during 2017-22 to reach a value of US$5,269.6 million by the end of 2022. Approximately 672.7 million units were sold in 2017 and is further expected to grow at a CAGR of 2.4% during the anticipated period to reach to 759.1 million units by 2022. Sanitary pads were expected to lead the market with 34.8% share, followed by tampons (27.4%), womens disposable razors and blades (23.7%), pantiliners and shields (8.6%), internal cleansers and sprays (5.6%). In February 2019, the company acquired This is L., a period care startup, which manufactures organic pads and tampons. The initiative helps the company to expand its product portfolio and customer base in the female hygiene market. Positive Outlook for Skin Care Market in the US The company could benefit from the growing skincare market in the US. The market underwent a paradigm shift in the recent past, inclining more towards increased product differentiation and serving a diverse, more conscious, and demanding customer base. Changing dynamics in fashion trends and increased brand consciousness among youth and adults are leading to growth in the market. Growing urban population and increasing disposable income are also aiding the market growth.

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