and Gamble (P&G) was established in 1837 and is one of the biggest consumer
good companies in the world with its market in about 180 countries located all
around the world. Originated in the United States of America, it has its
current headquarters in Cincinnati, Ohio.
It has its presence in 10 consumer product categories such as beauty,
baby, personal care, health, fabric, home etc. It merchandises these product
through retail, wholesale and e-commerce.
The mission statement of
Procter and Gamble states that the company wants to improve the lives of its
end users by providing superior quality products and wants to become the
one-stop shop for major health and personal care market all around the globe.
P&G has over 95,000
employees and an annual turnover of 65.29 billion USD (2016)
This report consists of the
analysis of the company by various economic tools, macro and micro economic
data. The study will be done on the company profile, its pace of growth,
competitors, how the company is reaching is target customers, various supply
and demand shifts, strong market share, as well as the presence in micro and
macro environment in the origin country i.e. United States of America.
FMCG SECTOR (USA)
Fast-moving consumer goods
are those goods, which lay off the shelves very quickly; these are the
day-to-day use products that include durable as well as non-durable products.
The FMCG sector in USA is
huge, with about a population of 323 million people in the country there are
about 40,000 full size stores that generate enough revenue to contribute
positively to the country’s GDP. Procter
and Gamble, leading FMCG company owns 45% of the market share as on Q’4 2017 in
Purposed -Inspired Macro
Strategy for Growth
P&G is adopting a more
focused technique towards it succeeding opportunities. The company wants to
focus on its core competencies by narrowing down its business. It has recently
divested from their pharmaceutical business to take better control of the
existing and more profitable business. The divestment move will allow P&G
to focus more heavily on 43 billion that generate 85% of the total accounted
P&G –Monopolistic Competition
Monopolistic Competition is
the most common type of market structure present in the economy. Due to its
flexible variable, it is relatively easy and less cumbersome to start a
business in a monopolistic environment.
There are a lot of similarities
between the firms operation in Monopolistic Competition in terms of types of
products, functions of the product, shape, color, use etc. but it can be
differentiation by few factors:
Dominance: FMCG industry has
thousands of firms selling products with little differentiation but P&G has
dominated the US market amongst all and has been the leading brands for all its
consumer product categories.
Barrier to Entry- While the
barriers of entry is high in an oligopolistic market, the FMCG industry barrier
are not very high.