Proctor & Gamble Case Analysis 2000

Procter & Gamble Case Analysis pecuniary Stagnation: In this metaphor study, Procter & Gamble (P&G) has experienced foil monetary reports for the year 1999-2000. Profits, excluding reorganisation costs, grew by only 2 %, to $4.23bn, and it’s flagship brands endured unsatisfying growth, garner the company to scale stake its growth forecasts. (Jones, 2001) P&G has responded in ii ways. Firstly, it has acquired Clairol, the shampoo and hair-colouring business, for $4.95bn. This led to a 4% drop in sh atomic number 18 prices. Secondly, it has reaffirmed its commitment to market look, and generating to a greater extent than information about its guests. (Jones, 2001) dissatisfactory Growth of Flagship Brands: There atomic number 18 two study(ip) factors that are bring to the poor financial outlook. Firstly, the disappointing growth of the company’s flagship brands and mathematical intersection points resulted in scanty profit growth. P&G have always been a leader in customer research, and this has helped it make small amendments adding wonder to these alert products. As Jones (2001) explains, “consumer research lends itself to incremental tweaking.

” In the mid-90s, P&G launched a play to cut down their proliferating product lines, to simplify and focus on their successful products, and to eliminate unsuccessful brands. The campaign was dubbed “Make It easy”, and helped make choices easier for distributors and customers alike. Combined with erratic expansion, company-wide sales grew by a third (Schiller et al, 1996). Hence, the need to change their product mix is no longer a major issue for P&G. Their existing products and flagship brands have been around for a long time, with the last two major innovations being Pampers (1961) and flow (1946). Since then they have had no major breakthrough products (Jones, 2001). If we function their portfolio of products, we can see that the absolute majority of their products fall into the category of ‘ quick’s...If you want to get a full essay, order it on our website: Ordercustompaper.com

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