Procter and Gamble Harvard Case Solution & Analysis

Introduction
Procter& Gamble also known as P&G, was established in 1837, by William Procter and James Gamble. It was established as a small family business with the initial capital of $7192.24. Within a very short period of time, P&G recognized itself as a multinational corporation by keeping its focus on healthcare, cosmetic, Skin Care and products for daily use. It successfully achieved this status by the acquisition of different companies such as Richardson-Vick, max factor, Thomas Hedley Co., etc.
In 1837, company started selling soap and candles and now it has a wide range of products that include personal care products, hygienic and cleaning agent. In 2016, company reported net revenues of $65.29 billion with net income of $10.50 billion. Company has a wide range of brands. Followings are some of them:
Hair Care Skin Care House Hold Health Care Laundry Detergents
Pantene Olay Fairy Crest Ariel
Head & Shoulders Secret Luvs Vicks Bold
Wash & Go Ivory Mr. Clean Scope Cheer
Braun Old Spice Tide Metamucil Daz
Aussie Swiffer Pepto-Bismol Downy
Nicky Clarke Puffs Swisse Dreft
Vidal Sassoon Febreze Vibovit Gain
Clairol personal Joy Tide
Procter and Gamble Harvard Case Solution & Analysis

In 2014, company’s CEO, a .G Laftey sold off 100 brands of P&G and put more focus on remaining 65 brands as those 65 brands accounted for93% percent of company’s profits. P&G is able to collect statistical data on a daily basis and rotate it through its global network. Only in North America there is a market of $8.5 billion for detergents from which 50% share rests with P&G. Overall, the industry has grown by 1.5% from 2000 to 2010, however this is not a big issue for the company because every increase in 1% share of P&G has resulted in a weekly profit of half a million dollars and a 10% increase (after all economies of scales) would give P&G a profit of $65 million annually. The company has been maintaining its market share since a century. However, maintaining its market share is not a big issue as P&G is one of the pioneers of detergents and cloth washing soaps since its inception.

Head & Shoulders
Sector Hair Care
Products Shampoo and Conditioner
Full and thick Shampoo Average price ($7)
Dry Scalp Care Shampoo Average price ($9)
Sensitive Scalp Shampoo Average price ($7)
Oil Control Shampoo Average price ($7)
Smooth And Silky Conditioner Average price ($7)
Green Apple Conditioner Average price ($7)
Classic Clean Conditioner Average price ($7)
Olay
Sector Personal Care
Products Skin care, moisturizer, facial cleanser
OLAY DAILY FACIALS DEEPLY CLEAN Average Price ($10)
Olay Total Effects Average Price ($8)
Olay Cream face moisturizer Average Price ($20)
Olay Total Effects moisturizer Average Price
($20)
Olay Eyes Cream Average Price
($30)
Olay Total Effects Eye Cream Average Price
($25)
Different Price Points with in the company’s Brand family

Gillette
Sector Personal Care
Products RAZORS,DEODORANTS
Mach 3 Turbo Razor Average Price ($8)
SENSOR3 MEN’S DISPOSABLE RAZOR Average Price ($8)
After Shave Lotion Average Price ($3)
CLEAR GEL POWER RUSH DEODORANT Average Price ($8)
ULTIMATE FRESH DEODORANT Average Price ($8)..........

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