Strategic Management Project

MNG 450

Al-Farsi Amal
Benjouida Soundouss
Harouni Alaoui Fatima-Zahra
Hormat-Allah Amal
Immes Salima
 OUTLINE
I. Company Overview IV. Analysis of the Internal Environment
a) History 1. SWOT Analysis (Strengths and
b) Operations Weaknesses)
c) P&G in Morocco 2. Strategic Cost Analysis

II. Issues & Outlook profile V. Development of Strategic Alternatives

1. Mission Statement & Options
2. The Vision 1. Leveraging Scale with the Retail Trade
3. Values 2. Corporate Leadership to Leverage Scale
4. Objectives 3. Leverage Scale with Specific Consumers
5. Current Strategies
6. Strategic Issues VI. Evaluation and Recommendations &
Strategic Choices
III. Analysis of the External Environment
1. Porter’s Five Forces Model VII. Strategic Implementation & Control
2. Links with Universities Mechanisms
3. Links with Government
4. Shareholders
5. SWOT Analysis (Opportunities and
Threats)
I. Company Overview

c) History

• Procter & Gamble is an American global corporation based on manufacturing

a wide range of consumer goods. As of 2007, P&G is the 25th largest US
Company by revenue, 18th largest by profit, and 10th in Fortune's Most
Admired Companies list.

• William Procter, a candle maker, and James Gamble, a soap maker, formed
the company known as Procter & Gamble in 1837.

• The company prospered during the nineteenth century.

• Throughout the twentieth century, the company moved into other countries,
both in terms of manufacturing and product sales, becoming an international
corporation.

• In January 2005 P&G announced an acquisition of Gillette, forming the

largest consumer goods company and placing the Anglo-Dutch Unilever into
second place.
b) Operations

1. Beauty
Beauty segment
Grooming segment
2. Household Care
Baby Care and Family Care segment
Fabric Care and Home Care segment
3. Health & Well-Being
Health Care
Snacks, Coffee and Pet Care

c) P&G in Morocco
In Morocco, P&G has started its activities in 1958 by the launching “Tide”.
P&G strategy is to insure 70 million consumers will access to products of higher quality and
affordable price.

P&G is present in Morocco through:

2 manufacturing sites in Casablanca and Mohammedia
7 distribution agencies throughout Morocco: Casablanca,
Rabat, Tangier, Agadir, Marrakech, Fez and Oujda.
1 general office in Casablanca.
1 distribution center of 10 000m² in our Mohammedia site.
II. Issues & Outlook profile

3. Mission Statement
We will provide branded products and services of superior quality and value that
improve the lives of the world's consumers, now and for generations to come.

2. The Vision
“Be, and be recognized as, the best consumer products and services company in the
world.”

3. Values
Integrity
Passion for Winning
Leadership
Trust
Ownership

4. Objectives
- Build existing core businesses into stronger global leaders
- Grow leading brands, big countries, winning customers
- Develop faster-growing, higher-margin with global leadership potential
- Regain growth momentum and leadership in Western Europe
- Drive growth in key developing markets
5. Current Strategies

4. Consumers will pay a premium for products that offer improvements over
either private-label products or the brands they have bought for years.

6. Product innovation must be regular with visible improvements year

constantly.

8. Product innovation must be designed to constantly "up-scale" consumer

preferences.

10. This “up-scaling” of consumer tastes is not just for affluent consumers.

12. These strategies of innovation and pricing can be used to break into
developing economies

• Using innovation to attain a growing share of developing markets will be

the key to growing company earnings as growth rates in mature
consumer markets

Coke-P&G: a Failure
Wrigley-P&G: a Success
Soap Opera: Flash Back
1. Strategic Issues

- Family Care and Coffee categories have had substantial price competition
and cost pressure.

- risks of over confidence and complexity

- Competitive pressure is a constant and consistent challenge

- Rising commodity costs

- Media fragmentation is another challenge

- Global economic and political instability

III. Analysis of the External Environment
1. Porter’s Five Forces Model

1. Buyer Power

2. Supplier Power

3. Threat of New Entrants

4. Threat of Substitutes

5. Degree of Rivalry
2. Links with Universities
Over the last few years P&G has been heavily recruiting the
University of Minnesota, US for chemical & mechanical engineers.

3. Links with Government

Because of P&G’s importance for the US economy, it can have a
big say in the political arena, directly and indirectly, formally and
informally. The voice of big multinational corporations is being
heard, and they enjoy many privileges, such as tax rebates.

4. Shareholders
•P&G can be divided in two categories: preferred shareholders &
common shareholders

•25% of P&G stock in the world is in the hands of its employees.

5. SWOT Analysis (Opportunities and Threats)

Opportunities

1. Developing markets
2. Gillette acquisition
3. New products

Threats
1. Uncertainty in pharmaceuticals business
2. Increase in prices of raw materials
3. Intense competition
IV. Analysis of the Internal Environment

1. SWOT Analysis (Strengths and Weaknesses)

Strengths
1. Large scale of operations
2. Strong branding
3. Product innovation
4. Developing markets infrastructure

Weaknesses
1. Customer concentration
2. Weak Performance of the Clairol business

2. Strategic Cost Analysis

Procter & Gamble instituted a "value pricing strategy" during which it

boosted advertising while simultaneously curbing its distribution channel
deals (in-store displays, trade deals), and significantly reducing its
coupon promotions.
V. Development of Strategic Alternatives & Options (1/2)

3. Leveraging Scale with the Retail Trade

Everyone recognizes that retailers are becoming more and more powerful,
demanding more price concessions from manufacturers while themselves
marketing private brands of higher and higher value to consumers.

- Account-specific consumer research

- Major theme events which make the retailer look good to their
consumers
- Multi-category consumer studies
- Software analytics
V. Development of Strategic Alternatives & Options (2/2)

2. Corporate Leadership to Leverage Scale

Leveraging scale also means committing to ambitious corporate projects

paid for from the top rather than requiring budget-constrained brands or
divisions to commit their funds to projects too costly for them to
consider.

3. Leverage Scale with Specific Consumers

- focus on high-value consumer cohorts with intense needs.
- generate the multi-category profit potential
VI. Evaluation and Recommendations & Strategic Choices

P&G’s foundation is household products. These are large businesses that are
growing steadily and reliably generate earnings and cash. Overall company
performance has been driven by these foundation categories for generations.

oIn order to apply our strategies, P&G should stay focused on their customer’s
needs and wants and continue to deliver high value products and customer
service.

o Because there are so many different forms of media available today,

targeting markets through specific Medias’ can be a challenge.

o Learn locally but act globally.

o Organize around multi-functional teams.

o Build capabilities to serve lower-income consumers who are not buying and
using P&G products on a regular basis today.
VII. Strategic Implementation & Control Mechanisms

-Implement quality control throughout all of their business units.

-Improve communications between management and the different business units.

-Invest heavily in research and development and market research.

-The marketing department should work extensively with data mining technology
in order to learn about their customer base

-Benchmark against competitions marketing campaigns.

-P&G should also invest in risk management for each of the main regions.

- Hire local financial experts in each of their operational regions.

Thank You