SWOT Analysis of Procter & Gamble focuses on Strength, Weakness, Opportunities, and Threats. Strength and Weakness are the internal factors and Opportunities and Threats are external factors.
SWOT Analysis is a tool to analyze Procter & Gamble Market Position. SWOT Analysis is very helpful for companies to formulate their present and future strategies.
Procter & Gamble are one of the most successful brands in the FMCG industry. Some of the popular Procter & Gamble products are Tide, Ariel, Pampers, Whisper, Gillette, Head & Shoulders, Herbal Essences, Pantene, Ambi Pur, Oral-B, Vicks, Olay, and Old Spice. The main competitor of P&G is HUL. All these brands are Star Products of P&G.
Strengths in the SWOT Analysis of Procter & Gamble – P&G SWOT Analysis
Some of the strengths In this swot matrix of Procter & Gamble are listed below:
- Brand equity- Some of the popular brands of P&G are Tide, Ariel, Pampers, Whisper, Gillette, Head & Shoulders, Herbal Essences, Pantene, Ambi Pur, Oral-B, Vicks, Olay, and Old Spice. These brands are well-known and the most preferred brand of Procter & Gamble. Tide, Ariel, Pampers, Whisper, Gillette, Head & Shoulders, Herbal Essences, Pantene, Ambi Pur, Oral-B, Vicks, Olay, and Old Spice are the most valued brands under the umbrella of P&G.
- Research and Development: The advantage of P&G is its exceptional R&D, which has produced and introduced numerous products in the market that have captured the market. All the products are revolutionary.
- Global Presence: P&G is a U.S. based multinational company. It has a strong global footprint and is present in 180+ countries. It also has a great product portfolio. P&G has 65 brands, each with its own product range, at the latest count.
- High Profits: P&G believes in earning higher profit margins because of their investment in Research and Developments as well as promotion and distribution. P&G strategies have helped the company to generate high margins.
- Market Leader in FMCG Market: Two out of three Indian customers use Procter & Gamble products. To emerge as a market leader in the Indian market, Procter & Gamble has used a targeting approach.
- Comprehensive and automated delivery chain: Procter & Gamble products are now a household name that can only be used because of its distribution system.
- High brand awareness: Procter & Gamble generated positive word of mouth over the years by signing famous celebrities for the ads of their brands, which allowed them to socially embrace their brands that were intelligently tailored and intended for all income classes.
- Dealer Community: Procter & Gamble has a good partnership with its retailers, dealers, and distributors. They not only sell P&G Products but also focuses on promoting them.
- Return on Capital: Procter & Gamble is able to effectively produce positive returns on the capital expenditure it spent on different ventures.
- Automation: has enabled more effective resource utilization and cost reduction from various stages of production. It also enables its goods to be consistent in quality and offers the flexibility to scale up and scale down production as per market demand.
- Trained labor force: Procter & Gamble has invested heavily in its workforce training, which has resulted in its hiring a significant number of professional and motivated employees.
- Diverse Workforce: P&G has a diverse workforce, with people of many ethnic, racial, cultural, and educational backgrounds who help the organization bring in various ideas and methodologies to do things.
- Entering new markets: Creative teams from Procter & Gamble have helped it to come up with new products and reach new markets.
- Social Media: Procter & Gamble has a strong social media presence with millions of followers on the three most prominent social networking platforms: Facebook, Twitter, and Instagram. It has a high degree of customer engagement with low customer response time on those channels.
- Procter & Gamble‘s geography and location give it a cost advantage in servicing its customers as compared with the competition.
- Procter & Gamble has a well-established IT system that ensures its internal and external operations are successful.
- Procter & Gamble has many intellectual property rights including trademarks and patents. This requires exclusivity of their products and rivals are unable to copy or reverse engineer it.
- Procter & Gamble is a company that has been on the market for years and that people recognize. That makes it highly aware of its brand.
- Over the years, its goods have retained consistency and are still respected by consumers, who regard it as good value for the price they spend.
- Relationships: Procter & Gamble develops strategic partnerships with its manufacturers, distributors, retailers, and other interested parties. This helps P&G to develop its trade and increase its sales.
Weaknesses in the SWOT Analysis of Procter & Gamble – P&G SWOT Analysis
- P&G had nearly 300 brands until 2014, but it narrowed its brand inventory to include just 65 brands, which accounted for 95 percent of its total earnings. With this move, because of a lot of money spent on increasing the other 235 labels, P&G also experienced a loss. But it was a required step that set the mood for the P&G brand’s rapid raise.
- Since it is an old company and there are too many business units and investments to handle, the decision-making process is said to be inefficient and therefore affects the organization as a whole.
Opportunities in the SWOT Analysis of Procter & Gamble – P&G SWOT Analysis
- Rural markets-Rural markets are price sensitive. Availability and pricing are two main factors that drive rural business, and there is still an advantage for P&G to capture the rural market by following price-effective strategies.
- Increased buying power: Customer purchasing power is increasing in many countries. Such emerging countries can be a strong opportunity for P&G. P&G would see greater growth in overseas markets relative to its home market.
- Mergers and Acquisitions-The acquisition of strong local competitors in their products or sales platforms is a means of eliminating competition and introducing a new product to the portfolio as well.
Threats in the SWOT Analysis of Procter & Gamble – P&G SWOT Analysis
- Competition: HUL is the main competitor and the biggest threat to P&G. P&G Must follow competitive strategies. If HUL reduces prices and launches better products. This can be a major threat to P&G.
- Government Norms: With governments encouraging local brands and the Make in India initiative, as well as international countries promoting their own infrastructure and manufacturing.
- Price of raw material: The rise in the price of raw material will lead to a further increase in the price of commodities.
- Buyer control: Consumer goods companies are increasing at a rapid pace. They are offering various offers and discounts to consumers. Thus it is very difficult for customers to stick to a single brand and hence results in brand switching. Customers have the option to choose a brand depending on many factors, such as availability, the suggestion of comparison group, choice & price.
- Home Brands of Big Retailers: Many supermarket brands such as D-Mart and Reliance Mart, Big Bazaar have launched their own home brands for detergents, personal care goods, and others as well.
- Government Rules and Regulations can directly or indirectly affect the production and sales of P&G Products.
- Increasing Fuel Prices: Fuel prices are increasing which can also affect the product cost. This can be a major threat.
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