Proctor & Gamble Case Analysis 2000

Procter & Gamble Case Analysis

Financial Stagnation:
In this illustration study, Procter & Gamble (P&G) has experienced disappointing monetary reports for the year 1999-2000. Profits, excluding reorganization costs, grew by only 2 %, to $4.23bn, and it’s flagship brands endured disappointing growth, make the company to scale back its growth forecasts. (Jones, 2001)

P&G has responded in two ways. Firstly, it has acquired Clairol, the shampoo and hair-colouring business, for $4.95bn. This led to a 4% drop in sh are prices. Secondly, it has reaffirmed its commitment to market research, and generating more than information about its customers. (Jones, 2001)

Disappointing Growth of Flagship Brands:
There are two major(ip) factors that are contributing to the poor financial outlook. Firstly, the disappointing growth of the company’s flagship brands and mathematical products resulted in meager profit growth.

P&G have always been a leader in customer research, and this has helped it make small amendments adding esteem to these existing products. As Jones (2001) explains, “consumer research lends itself to incremental tweaking.



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In the mid-90s, P&G launched a campaign to cut down their proliferating product lines, to simplify and focus on their successful products, and to eliminate unplaced brands. The campaign was dubbed “Make It Simple”, and helped make choices easier for distributors and customers alike. Combined with planetary expansion, company-wide sales grew by a third (Schiller et al, 1996). Hence, the need to channelise 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 tide (1946). Since then they have had no major breakthrough products (Jones, 2001). If we fail their portfolio of products, we can see that the majority of their products fall into the category of ‘ straightaway’s...If you want to get a full essay, order it on our website: Orderessay



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