P & G – Procter & Gamble SWOT Analysis

{ Posted on Jun 04 2010 by adam | 16,820 views}

Strengths

• The large scale, on which the P & G operates, is one of its strengths. It is a global leader for different product categories like fabric, home, baby, beauty, health and personal care in many countries. Its three hundred products are sold in over one hundred and eighty countries.

• The strong branding of P & G makes it one of the most successful brands in the world.

• The company has a vast experience in oral and personal hygiene products as they are working since….

• Also, it has an extensive experience in marketing in different market segments and is one of the best marketers in the world.

• P & G is tightly integrated with some of the largest retailers in United States of America as well as world around. and around the world Distribution channels all over the world

• Gross profit margin of the company is 15 times the industry average

• P & G is known for its diverse brand portfolio. The company is able to customize its global products and brands according to the local preferences.

• P & G invests greatly in its research and development to. About $2 billion are invested every year by P & G for improving and introducing new products. The end-consumer understanding of P & G and its large database of consumers make its research and development strong.

Weaknesses

• Many of the top brands of P & G are losing their market share rapidly. In online media leadership and presence P & G is lagging behind.

• The beauty and health products by P & G are mostly for women.

• P & G does not make and offer any private label products for the retail customers and is, missing an opportunity.

• The large scale operation of the company makes the culture heavy and processes slow. This also leads to quality control problems.

• P & G does not divest its weak or poor brands.

• The major customers of P & G are located at some of the places and it concentrates heavily as them.

• When P & G acquired Clairol business in year 2001, it was unable to grow this business. The Clairol Herbal Essence brand failed to enter new markets as the market had access to better and innovative products. This shows weakness of P & G in the beauty care division.

Opportunities

• An opportunity for P & G is health and beauty products for men. With the acquisition of Gillette, the company now has several growth opportunities in this market segment.

• P & G has doubled its Environmental Goals for the year 2012 and thus, promises more value for the environment concerned customers today.

• Using the online social networks and internet marketing techniques is also an opportunity for P & G.

• Divest brands that are not in accordance or do not meet P & G’s long-term goals

• Company is constantly trying to pursue growth overseas.

Threats

• There is a cut throat competition in the fast moving consumer’s goods markets today. Companies like Kimberly Clark, Unilever, Johnsons & Johnsons and Colgate-Palmolive etc pose a serious threat to its market share in different countries.

• The competitors are making their product portfolios diverse day b day and using different marketing and promotional strategies to increase their market share.

• In the market many substitutes are available for P & G products at cheaper prices.

• The private label growth is also a serious threat to the P & G’s market share.

• Due to recession, the consumer spending has decreased globally. Also, the prices for raw materials are increasing so cost to the company is increasing.

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