P&G Swot

Slide 1
Procter & Gamble is a Fortune 500 Multi National Corporation which is

headquartered in Ohio, USA. This company was founded by William Procter and
James Gamble in 1837. It claims to serve about 4.2 billion of worldwide population
and has attained overall revenue of $ 78.9 billion in 2009-10. Its top competitors are
Johnson & Johnson, Kimberly Clark Corporation and Uniliver.
P&G is a market leader in consumer goods and has its presence in following
segments across 180 countries. The major global business units are under the
following categories –
1. Beauty
2. Grooming
3. Health Care
4. Snacks & Pet Care
5. Fabric Care & Home Care
6. Baby care & Family Care
Some two-dozen of P&G's brands are billion-dollar sellers and many of its brands are
market leaders in their respective segments. P&G's biggest buy in company history
was Gillette in 2005.
Slide 2
The BCG Matrix is a portfolio planning model developed by Bruce Henderson of the
Boston Consulting Group in the early 1970's. It is based on the observation that a
company's business units can be classified into four categories based on
combinations of market growth and market share relative to the largest competitor.
Market growth serves as a proxy for industry attractiveness, and relative market
share serves as a proxy for competitive advantage. The growth-share matrix thus
maps the business unit positions within these two important determinants of
profitability.
The four categories are:
• Stars - Stars generate large amounts of cash because of their strong relative
market share, but also consume large amounts of cash because of their high
growth rate. If a star can maintain its large market share, it will become a
cash cow when the market growth rate declines.
• Cash cows - As leaders in a mature market, cash cows exhibit a return on
assets that is greater than the market growth rate, and thus generate more
cash than they consume. Such business units should be "milked", extracting
the profits and investing as little cash as possible.
• Question marks - Question marks are growing rapidly and thus consume
large amounts of cash, but because they have low market shares they do not
generate much cash. The result is large net cash consumption. A question
mark (also known as a "problem child") has the potential to gain market share
and become a star, and eventually a cash cow when the market growth
slows.
• Dogs - Dogs have low market share and a low growth rate and thus neither
generate nor consume a large amount of cash. However, dogs are cash traps
because of the money tied up in a business that has little potential.
Slide 3
Now we will try and categories specific P&G Brands into the BCG Matrix –
Starting with Stars –
 Gillette - Gillette is a P&G brand currently used for safety razors among
other personal hygiene products. It was acquired by P&G in 2005 from
The Gillette Company.
Gillette has been the leading brand in men’s grooming industry across the globe.
With its wide range of products caters to the premium segment of the men’s
grooming market. It faces intense competition in the toiletries market whereas the
competition in the razor market is not that intense. Achieving double-digit revenue
growth in the razor business, where Gillette has a 72% market share – it faces little
competition from Wilkinson Sword and Bic in the razor market.
 Pantene – Pantene ProV is a P&G brand which is dominant in the hair

care market with a loyal customer base and has a wide distribution
network. It contributes $ 4 billion of revenue to P&G and was added to the
product portfolio of P&G with the acquisition of Richardson-Vicks in 1985.
Pantene is the world's best-selling haircare brand, encompassing a huge variety of

shampoo, conditioner and styling products, sold in around 100 countries. One of
P&G’s portfolio of billion dollar brands, it has around 10% global market share
worldwide with the hair care market being dominated by P&G with brands like Clairol
Herbal Essences, Head & Shoulders, Pert Plus under its portfolio. It faces stiff
competition from Dove by Uniliver, Garnier Fructicis by Loreal. Pantene has
maintained its leadership by being one of the most preferred hair care brand
worldwide.

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Slide 1

Procter & Gamble is a Fortune 500 Multi National Corporation which is

The four categories are:

Starting with Stars –

 Pantene – Pantene ProV is a P&G brand which is dominant in the hair

Pantene is the world's best-selling haircare brand, encompassing a huge variety of

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