Proctor and Gamble, Case Study Example

Proctor and Gamble’s (P&G) business model is based upon developing billion dollar brands. In 2010, P&G had 23 billion dollar brands and another 18 brands which had sales between $500 million and $1 billion. P&G billion dollar brands are listed in

Table 1.

In addition, P&G has a substantial portion of international revenue. Table 2 identifies sales by geographic region (as of 2010):

P&G business segments are focused upon 3 primary areas: (1) beauty and grooming, (2) health and well-being, (3) household care. Table 3 shows the dispersion of sales and earnings for each business segment as of 2010.

In 2010, Proctor and Gamble’s sales and earnings were quite balanced (e.g. beauty and grooming accounting for 24 percent of the sales and 23 percent of the earnings).

Discussion Question

How should P&G grow its business?

The P&G brands are already noted and accepted worldwide. It could be analyzed though that such popularity in the international market is rather limited especially in line with the expansion of P&G’s market influence in Latin America. Compared to the sales made in Asia and Africa [which receives 15% and 13% sales concentration respectively], Latin America only receives 9% sales returns. Understandably, this requires the organization to make particular assumptions and study definitions on the said market and redefine their role in the Latin American society. Understanding what makes their sales operations at a low ground in this market shall provide them a better vision on how they are supposed to withstand new options of development that shall be opened to them in the said area in the near future. Understanding the perceptions of the market could also provide a more conceivable approach that would make it easier for the company to create products that would define their entrant in the society’s acceptable grid for new product offerings. Perhaps, basing from the comparison on the product concentrations of the organization, they could make an effective impact on how household care products could be better accepted in Latin America hence imposing on the requirement for them to increase production and development within the said focus of product choices and brands offered in the country.  A balanced management on both production and development should then be considered in line with this particular case.