Proctor & Gamble Case Analysis 2000

Procter & Gamble Case Analysis Financial Stagnation: In this illustration study, Procter & Gamble (P&G) has experienced frustrate monetary reports for the course 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 trade 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 ever so been a leader in customer resea rch, and this has helped it make puny amendments adding esteem to these existing products. As Jones (2001) explains, “consumer research lends itself to incremental tweaking.

” In the mid-90s, P&G launched a campaign to cut vanquish their proliferating product lines, to simplify and focus on their successful products, and to overstep unplaced brands. The campaign was dubbed “Make It Simple”, and helped make choices easier for distributors and customers alike. feature with planetary expansion, company-wide sales grew by a third (Schiller et al, 1996). Hence, the essential to channelis e their product mix is no longer a major iss! ue for P&G. Their existing products and flagship brands have been rough for a long time, with the last two major innovations existence Pampers (1961) and tide (1946). Since then they have had no major discovery products (Jones, 2001). If we fail their portfolio of products, we can see that the majority of their products fall into the year of ‘ straightaway’s...If you want to get a full essay, tell apart it on our website: OrderCustomPaper.com

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