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Case Study: The Procter and Gamble By Thao ‘Sherry’ Nguyen
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TABLE OF CONTENTS EXECUTIVE SUMMARY...........................................................................................................4 INTRODUCTION.........................................................................................................................7 1.
PUSPORE............................................................................................................................7
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MISSION AND VISION STATEMENT...........................................................................7
HISTORY.......................................................................................................................................9 ORGANIZATIONAL FACTS....................................................................................................11 HUMAN RESOURCE STRATEGIES......................................................................................15 TALENT SUPPLY MANAGEMENT..............................................................................................15 TRAINING INITIATIVES..............................................................................................................17 REWARD AND RECOGNITION....................................................................................................18 MANAGEMENT STYLE...........................................................................................................21 ORGANIZATIONAL STRUCTURE........................................................................................24 CORPORATE CITIZENSHIP...................................................................................................24 REFLECTION.........................................................................................................................31 GREEN INITIATIVES...............................................................................................................31 REFLECTION.........................................................................................................................35 IN THE NEWS & CURRENT HAPPENINGS........................................................................35 REFLECTION.........................................................................................................................36 COMPETITIVE SET..................................................................................................................37 ANALYSIS................................................................................................................................38 TARGET MARKET & GUEST EXPECTATION...................................................................39
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TARGET MARKET................................................................................................................39 GUEST EXPECTATION........................................................................................................39 INVESTORS.........................................................................................................................39 BRAND TECHNOLOGY ADVANCEMENT......................................................................41 SERVICE STRATEGIES, PHILOSOPHIES...........................................................................44 REFLECTION.........................................................................................................................47 SELF-ANALYSIS........................................................................................................................47 APENDIX - INTERVIEW..........................................................................................................50 REFERENCES............................................................................................................................54
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EXECUTIVE SUMMARY The Procter & Gamble Company (P&G) is a leading multinational business of consumer goods. The company was founded in 1837 in Cincinnati, Ohio by William Procter and James Gamble. It has a market capitalization of $311 billion (January 11, 2020), with total revenue of nearly $69 billion for the trailing twelve months. The company is headquartered in Cincinnati, Ohio, employs over 97,000 workers worldwide, and has paid a dividend to stockholders since 1890, increasing it in each of the past 63 years ("P&G at a Glance | P&G", 2019). Based on Fortune Global 500 List, Procter & Gamble ranks 45th, higher than its competitor Unilever ranks 153th and Kimberly-Clark which is 171th ("Procter and Gamble", 2020). Since the beginning of the decade, P&G has more than doubled the number of brands in its portfolio that generate over a billion dollars in annual. It has 130 manufacturing facilities in more than 35 countries, 150 nationalities represented by their workforce and 70 countries have a P&G Presence.
(Figure 1: By Geographic Region, Adapted from P&G, 2019)
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
There are 65 individual brands are organized into 5 business segments:
(Figure 2: Business Segment and & of Net Sales, Adapted from P&G, 2019)
Segment
Product Categories
Major Brands
Beauty
Hair Care (Conditioner, Shampoo, Styling Aids,
Head & Shoulders, Herbal
Treatments)
Essences, Pantene, Rejoice
Skin and Personal Care (Antiperspirant and Deodorant, Olay, Old Spice, Safeguard,
Grooming
Personal Cleansing, Skin Care)
SK-II, Secret
Shave Care (Female/Male Blades & Razors)
Braun, Gillette, Venus
Pre- and Post-Shave Products Other Shave Care; Appliances
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Health Care
Oral Care (Toothbrushes, Toothpaste, Other Oral Care)
Crest, Oral-B
Personal
Metamucil, Neurobion, Pepto
Health
Diagnostics,
Care
(Gastrointestinal,
Respiratory, Vitamins
Rapid
/ Minerals
/
Bismol, Vicks
Supplements, Other Personal Health Care) Fabric
& Fabric Care (Fabric Enhancers, Landry Additives,
Home Care
Landry Detergents) Home Care (Air Care, Dish Care, P&G Professional, Surface Care)
Baby, Feminine & Family Car
Ariel, Downy, Gain, Tide
Cascade,
Dawn,
Fairy,
Febreze, Mr. Clean. Swiffer
Baby Care (Baby Wipes, Taped Diapers and Pants)
Luvs, Pampers
Feminine Care (Adult Incontinence, Feminine Care)
Always,
Always
Discreet,
Tampax Family Care (Paper Towels, Tissues, Toilet Paper)
Bounty, Charmin, Puffs
P&G creates and extends competitive advantage through superior product performance, packaging, brand communication, retail execution, and consumer and customer value. In-depth research highlights many areas and determines that P&G:
Should continue focusing on research and development to be on the top of the line
technology solutions in order to remain competitive in the market Constantly listen to clients to adapt suitable marketing strategies that fit with the
consumer culture to avoid losing shares in markets Increase the hyper-growth of natural, organic, clean, environmental-friendly and wellness
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Find ways to exceed customer expectations by studying demographics and
implement researches that increases mood enhancement in their products Target the right market to avoid loss and keep the benefits for investors and shareholders
INTRODUCTION This case study focuses on Procter & Gamble (P&G) and services in customer products businesses. P&G has been the recipient of many awards for their innovation. In 2017, P&G earned 26 Cannes Lions for their campaigns, including: Gillette Handle with Care, Ariel Dads #Sharetheload, SK-II Marriage Market Takeover and Vicks Touch of Care. Also, they keep the reputation in building workplace on cultural and gender diversity and equal rights for both men and women. They had different awards, including World’s Most Admired Companies by Fortune, Most Reputable Companies (World & America) by Forbes, Best Places to Work by Glassdoor and Supply Chain Masters by Gartner. They pursue corporate social responsibility by making equality, and eco-friendly practices a priority. The awards include Just 100: America’s Best Corporate Citizens by Forbes, Sustainability Index by Dow Jones and 100 Best Corporate Citizens by Corporate Responsibility Magazine ("P&G awards and recognition", 2020). 1. PUSPORE The purpose of this case study is to explore the strategy philosophy of Procter and Gamble and develop expertise regarding the company’s business. The elements investigate in this case study include mission and vision, history, organizational facts, human resources strategies, management style, corporate citizenship and green initiatives, competitive set, service strategies, target market and expectations and self-reflection. This research is based on Procter and Gamble’s Investor and Main Website, interview with the company’s manager. 2. MISSION AND VISION STATEMENT A. PROMISE
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“Three billion times a day, P&G brands touch the lives of people around the world. And P&G people work to make sure those brands live up to their promise to make everyday life just a little bit better, now and for generations to come” ("About P&G everyday", 2020). B. MISSION “Provide branded products and services of superior quality and value that improve the lives of the world’s consumers As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.” ("About P&G everyday", 2020) C. VISION “Be, and be recognized as, the best consumer products and services company in the world.” ("About P&G everyday", 2020) D. E.
VALUES Leadership Ownership Integrity Passion for winning Trust PRINCIPLES We show respect for all individuals The interests of the company and the individual are inseparable We are strategically focused in our work Innovation is the cornerstone of our success We are externally focused We value personal mastery We seek to be the best Mutual interdependency is a way of life
HISTORY
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1837-1890
The Partnership Years
1837
William Procter and James Gambles, brothers-in-low from Cincinnati start a soap and candle company
1883
P&G launches its first big brand, Ivory Soap
1890-1945
A company built on innovation
1911
Begin selling Crisco, the first all-vegetable shortening
1930
Goes international when it buys a British soap-maker Thomas Hedley & Company, the makers of Fair Soap
1945 - 1980
New lands and dynamic growth
1946
P&G revolutionizes laundry with Tide detergent
1955
P&G develops Crest toothpaste and it quickly becomes the #1 brand
1956
P&G hits a major sales milestone - $1 billion
1961
P&G starts making disposable diapers and parents everywhere rejoice
1950 - ‘60s
P&G invades kitchens everywhere with food and beverage products.
1957
Enters the consumer paper products business with the acquisition of Charmin Paper Mills, a regional manufacturer of toilet tissue, towels and napkins
1980 – 1999
A global company
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1982
P&G adds Pepto Bismol and Chloraspetic for their personal health care segment when it acquired Norwich-Eaton Pharmaceuticals
1985
P&G buys Richardson-Vicks, the makers of Vicks and Nyquil, for $1.2 billion, as well as the brands Dramamine and Metamucil
1988
Enters the beauty business when it buys Noxell, the company that makes CoverGirl and Noxema, in a $1.34 billion deal
1991
It scoops Max Factor and Betrix from Revlon.
1992
Pantene Pro-V is introduced. Originally a small part of the 1985 Richardson-Vicks acquisition, Pantene becomes the fastest growing shampoo in the world
1993
Company sales exceed $30 billion; 50% of sales come from outside the U.S. for the first time in P&G history; Japan Headquarters and Technical Center opens on Rokko Island in Kobe City, Japan.
1996
Gillette acquires Duracell, originally founded in the early 1920s
1997
Expands its feminine protection expertise with the acquisition of Tambrands. Tampax Tampon is the market leader worldwide
1998
Mach 3’s Gillette razor is introduced. Febreze, Dryel, Swiffer are introduced and sold around the world in less than 18 months
1999
Entered the global pet health and nutrition business by acquiring the Iams Company, a leader in premium pet foods
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2000 - Today 2001
Crest WhiteStrips launches in the U.S.
2005
P&G and Gillette merge into one company and add five more billion-dollar brands to product portfolio, including Gillette, Braun’s shaving and grooming products, Oral=B dental care line and Duracell batteries
ORGANIZATIONAL FACTS
(Figure3: Organization Units, Adapted from P&G, 2020)
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The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation with 65 different brands. P&G is focused on providing branded products of superior quality and value to improve lives of the billion consumers worldwide. The number of employees of P&G has decreased over the last several years, from 127,000 in 2020 to around 97,000 as if 2019 ("Total number of employees of Procter & Gamble worldwide 2007-2019 | Statista", 2020). P&G business model relies on the continued growth and success of existing brands and products, as well as the creation of new innovative products. P&G reaches more than 180 countries and territories through numerous selling and distributing channels as well as direct-toconsumer. The growth strategy is to deliver meaning and noticeable superiority in all elements of consumer proposition, which includes product, packaging, brand communication, retail execution and value equation. To achieve this, P&G spends time in research and development process and do consumer insights. P&G paid dividend for 129 consecutive years since its establishment in 1890 and has increased its dividend for 63 consecutive years. In the last 5 years, dividend has increase at average rate 3%.
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(Figure 4: Dividends, Adapted from P&G 10-K, 2019) As of June 30 2019, there were approximately 3.3 million common stock shareowners. The below graph described the cumulative total shareholder return of P&G’s common stock for the five-year period compared with S&P 500 Stock Index and the S&P 500 Consumer Staples Index. Both the graph and table assume $100 was invested on 2014 and reflects all dividends were reinvested.
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(Figure 5: Shareholder Return, Adapted from P&G 10-K, 2019) The financial data reflected the revenue in 2019 is $67,684 billion, which is higher than in 2018, which is $66,832 billion. The shareholders’ equity decreased than the other years but they received higher dividends per common share. Interesting, P&G spent less expenses on advertising and research and development.
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(Figure 6: Financial Summary, Adapted from P&G 10-K, 2019) HUMAN RESOURCE STRATEGIES TALENT SUPPLY MANAGEMENT P&G is dedicated to recruit the finest people in the world and build the company from within, through training and promoting the existing employees. P&G delivers a staffing strategy that meet the global needs. Apply supply chain management philosophies to the staffing process and utilize configurable workflow and collaboration platform, P&G achieves cost savings and faster employee selections, and increase enterprise-wide productivity improvements and greater retention
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To ensure that everybody who is interested in joining the company has equal opportunity and ability, P&G made the hiring process more flexible and accessible. Application is the first step in the process, and gives the candidates an opportunity to tell about themselves. The candidate needs to register an account and plug in personal information, including contact details, education, resume and answers skill questions. In the second step, P&G uses online assessment to measure skills and abilities that generally do not emerge from interviews. Different types of roles have different types and combinations of assessments. Most of these assessments are very difficult and require substantial, sustained concentration. For interviews, P&G uses a combination of behavioral-based and situational interviews to get to know the candidates. The common questions will ask including previous accomplishments and situation handlings. The recruiters will see how the candidates relate to, compare with, and connect with PEAK Performance Factors.
(Figure 7: Hiring Process, Adapted from P&G, 2020) Regarding to behavioral-based and situational interviews, P&G goes in details around candidates’ skills, capabilities, experience level and fit for the role. The mode of interview can be one-on-one or a panel interview with two to three interviewers, which can be online, via phone or in person. This is a good chance to understand P&G’s culture, values and opportunities. After passing the process, candidates receive an offer, where the employees help P&G win in the marketplace and growing their talents.
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TRAINING INITIATIVES P&G designed a personalized method that enables candidates to continually grow into a successful leader in the industry. Day 1 Program will help candidates dive into the meaningful work. They have leadership pillars that support everyone to be able to take the lead in their own development in order to achieve the peak potential. For each perspective, even if you are students, fresh graduate, professional career, P&G has designated programs that help you gain your leadership skill. In the center, P&G wants to develop teamwork, project management, analytic and creative thinking skills. They have different courses that give opportunity to grow
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knowledge and give a freedom to develop and grow into the area that the employees want.
(Figure 8: Development Pillars, Adapted from P&G, 2020) Learning approach breaks down into 70/20/10. In experience based (70%), there will be challenging assignments that build on employee’s knowledge and experience. P&G offers
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projects that meet both the employee’s career aspirations and the business needs. P&G believes that social learning via colleagues, mentors and peers (20%) help to build up your success. An assigned mentor will be a great source of support, guidance and information throughout onboarding process. A global connection of peers and colleagues will learn as much from the candidate as candidate to them. Leadership in all levels are accessible to share their knowledge and experience. Structured courses and materials (10%) help to build a broad range of skills offered through the P&G Leader Academy (PGLA), where candidates can learn upskilling program that not limited to data, analytics, AI/machine learning, automation, blockchain and performance
marketing.
(Figure 9: Learning Approach, Adapted from P&G, 2020) REWARD AND RECOGNITION P&G believes that “use your time your way” work/life balance is important. Employee are valued, appreciated and integral to the meaningful work. To make life easier and better, and considers employees as consumers and respects their day-to-day lives., P&G offers flexible
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working times, remote working options, generous paid vacation increasing with service and personal leaves of absence. Also, there are P&G corporate-sponsored volunteer events to give back to the community.
(Figure 10: Use Your Time Your Way, Adapted from P&G, 2020) The live well program helps team member to maintain a vibrant, happy and healthy life while working. P&G has healthcare options, including private medical insurance and a range of well-being programs, well-equipped gyms, fitness, relaxation class, active sports as well as social clubs. Members can receive great savings and discounts on gym memberships.
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(Figure 11: Live Well, Adapted from P&G, 2020) P&G creates many options for team members to take care of their family. The options include generous parental leave policies, flexible working arrangements, group life insurance, permanent health insurance, and support in finding the right child care or elder care.
(Figure 12: Take Care Of Your Family, Adapted from P&G, 2020) Employees can receive competitive total rewards, which reflect how valuable you are as the asset in the company. P&G offers a market-competitive salary benchmarked against other companies in same segments. They encourage employees to be able to spend more generous vacation time doing more of the hobbies with families. The future salary increases will be
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reflective of their contribution and impact on the business results. Also, some promotion offers including interest-free loans, a tax-advantageous share purchase plan, a contributory pension plane and financial education on topics including purchase your first home ("Employee Wellness and Benefit Programs | P&G Careers", 2020).
(Figure 13: Receive Competitive Total Rewards, Adapted from P&G, 2020) Career possibilities in P&G are varied. It is usual to change the position between different departments during the career and proceed up in the hierarchy. Also, there are rich possibilities of the career abroad after a certain amount of time in the company. MANAGEMENT STYLE P&G’s leadership approach is distinctly. They set a clear, rigorous course for developing leaders and growth in every business and region, at every level. They use the 5E Leadership Model for action plan to emphasize “everyone is leader” (Tammiraju, 2017). ENVISION – Create the future ENGAGE – Build relationships & Collaboration ENERGIZE – Inspire others ENABLE – Build capability
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EXECUTE – Deliver outstanding results The model can be effectively used to diagnose a business problem or create a proactive strategic plan that avoids business problems. The philosophy helps P&G to be known as one of the best breeding grounds of leaders in the business through a strict “promote from within” concept. The company adapts product-type divisional organization structure, which influences P&G’s managerial decisions and internal business processes. Indeed, P&G consider productbased grouping as the basis for developing and maintaining management teams. There are three major characteristics, arranged according to significance in the company’s operations. The first one is product-type divisions. This characteristic involves product grouping based on the product mix in P&G marketing mix or 4Ps (Price, People, Promotion, Place). The methods help to address business concerns specific to a group of product lines. Such approach helps minimize costs in managing the business. The product-type divisions in P&G includes: Beauty; Grooming; Health Care; Fabric and Home Care; Baby, Feminine and Family Care. The next one is geographical divisions. P&G’s areas of operations are the bases for this characteristic of the organization structure. Because P&G has major international operations in the consumer goods industry, this strategic is adequate support for managing regional operations. Such scale of operations requires regional focus in large corporation, which divides into following geographical divisions: North America, Europe, Asia Pacific, Greater China, Latin America and IMEA – India, Middle East and Africa. In keeping functional groups, P&G ensures that its organizational structure satisfies fundamental business functions. Functional groups provide an integrated way for its global consumer goods operations, which helps to reflect the levels of management and decisionmaking in the business. P&G has an executive heading each of the functional group, such as
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Global Health Care, Global Beauty, Global Sales, Branding, North America Selling and Marketing Operations. The leadership style is democratic, which P&G respect all workers and clients and try to propose them credence under the terms and conditions and treat in a similar way. They also adopted the management style called Values-Based Leadership, developed by Bob McDonald – Retired Chairman of the Board. P&G believes: (1) Driven Purpose: Improving Lives (2) Positive and Virtuous Cycle – Must be pervasive (3) Put people in the right jobs (4) Put the needs of the organization above your own. Take personal responsibility for organization result. Character is the most important trait of a leader (5) Diversity sparks (6) Performance to avoid ineffective strategies, systems and culture (7) Organizations must renew themselves. Recruiting and training are top priorities
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(Figure 14: Value-Based Leadership Model, Adapted from P&G, 2017) P&G establishes Board Leadership Key Principles which support the culture of the company. They have annual assessment and determination of the board’s leadership structure. Also, P&G supports significant director interaction with senior business leaders and access to other employees as desired since P&G wants to enhance the communication and network of team member. P&G has annual board, committee self-assessments and one-on-one reviews with individual directors to bring people on the same page. According to P&G’s Senior Manager in Shopper Marketing, Barbara Bell Kelly, her management style is more democratic because she looks for the knit collaboration. She said that it is “very inclusive and more teaching style because our team and management recognize it the younger employees are the leadership for the future.” (B. B. Kelly, personal interview, March 15, 2020).
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ORGANIZATIONAL STRUCTURE
(Figure 15: Executive Board, Adapted from P&G, 2020) CORPORATE CITIZENSHIP
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(Figure 16: Internal Leadership Model, Adapted from P&G, 2020)
P&G is committed to being a good corporate citizen and always do the right things. There are five main citizenship areas that the company touches on, including: Ethics & Corporate Responsibility, Community Impact, Diversity & Inclusion, Gender Equality, Environmental Sustainability.
Ethics & Corporate Responsibility
Purpose, Values and Principles (PVPs) are the foundation which is consistently use every day and build over time to provide lasting value. The PVPs further inform the approach to good
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governance. P&G believes that strong governance practices contribute to better result for shareholders. Good governance provides strategic oversight and monitors emerging priorities and risks in different matters. There are different committees that govern particular matters within its scope: Audit Committee - Oversee the company’s overall risk management process, including financial controls and integrity - Meet with chef ethics & compliance officer, review key enterprise risks and cybersecurity programs Governance & Public Responsibility Committee - Oversee matters related to corporate governance practices and policies, including board composition, director succession planning, independence - Oversee geopolitical risks and community and environmental impact Compensation & Leadership Development Committee - Oversee the development and succession planning of the board - Minor gender pay equity - Ensure executive compensation practices are balanced in rewarding holistic, long-term growth Innovation & Technology Committee - Oversee innovation and technology programs, including the responsible integration of new technology into innovative strategy
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- Consider how these programs incorporate the sustainability and ingredient safety priorities of the company Respect for Human Rights is another fundamental way to support business conduct. P&G ensures that human rights are upheld in their value chain, which includes no child labors, no forced labor, no discrimination, and freedom of association and collective bargaining. They create priority industry principles, which is: (1) Every worker should have freedom of movement, (2) no worker should pay for a job, and (3) no worker should be indebted or coerced to work. Respect for Environment is addressed through their Environmental Policy Statements. P&G commits to maximize the value and quality of their products by using resources responsibly, preserving the environment and reducing the environmental footprint in their operations. This comes with an action in using prioritized materials including palm, wood pulp and paper packaging. P&G encourages employees to speaking up by creating a work environment that fosters open communication and supports employees in reporting potential violations through Worldwide Business Conduct Helpline.
Community Impact P&G believes that providing support to communities is one of the priorities and rooted in the company. They want to create positive differences in the lives of people and make the world a better place. 
The P&G Children’s Safe Drinking Water Program, transforming lives through the power of clean water, partners with more than 150 organizations around the world. The program uses a powdered water purification technology, invented by P&G
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laundry scientist, that has provided over 12 billion liters of clean water to communities in rural areas and emergency situations in 85 countries over the past 13
years and with a goal of delivering 25 billion liters worldwide by 2025. “There During Times of Needs” is another campaign that providing everyday essentials to disaster areas. P&G provides disaster relief to more than 25 global disasters, including the massive wildfires in California and hurricanes Florence and Michael that devastated parts of the U.S. When the worst flooding hit the south Indian state of Kerala, P&G partners with NGOs, such as Americares and World Vision, reached about 50,000 people through the distribution of health and hygiene products. P&G provided products and monetary to support earthquake in Lombok and tsunami
in Sulawesi in Indonesia. P&G works with the Turkish Red Crescent to provide hygiene products to Syrian refugees living in camps in Turkey. Over the last four years, P&G has donated 1.7 million products to those in need. P&G also provides necessities to young students and others who cannot afford them in Turkey. Since 2013, P&G has reached tens of
thousands of children through this program. 2019 marks the 30th anniversary of Project Hope in China, partners with the China National Centre of Performing Arts (NCPA). P&G has helped build and renovate more than 200 Hope Schools and now shifted the focus of this program to emotional well-being, leveraging the power of art to help children in rural areas. The Hope Schools ae advancing education through creative and experimental playgrounds. Students are taught to do proper handwashing, oral care, puberty education and selfdefense. To achieve one million RMB target, P&G works with RT-Mart to enhance
Hope Schools’ hygiene facilities through “buy one P&G product donate one RMB”. To address issue of homelessness in Australia, “Vicks Touch of Care” partnered with Mission Australia to create a sentimental video to connect the Vick’s brand purpose to touch lives and provide care for millions of families around the world.
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Diversity & Inclusion P&G believes that diversity helps to reflect and win with the consumers they serve around the world. P&G wants to extend beyond the wall by driving action to make a meaningful difference and strive to make the world better through actions.
P&G supports Pride activities all over the world in 2019. They use their voice to build a more equal world for all individuals. P&G teamed up with the Heritage of Pride to become Platinum sponsor for 2019 World Pride in New York City. Thousands of
employees showed support for LGBT+ community during the World Pride events. Neurodiversity programs at P&G are diversifying talent and driving business results. The program supports autism spectrum disorder to capture the problem-solving methods. Employees from this program are currently working in R&G and Smart Robotic
Automations. Short film called “The Look” elevates awareness of racial bias, encourage the dialogue
and enable change in hearts and minds. Fairy, one of P&G brands, was taking a stand to support LGBT+ Homeless Youth in the UK. LGBT+ people make up about 7% of the UK population and makeup almost a quarter of homeless young people today. For a limited time, Fairy became FAIR, dropping the “Y” to support the community by donating a portion of every purchase to
the Albert Kennedy Trust charity. Pantene launches “Don’t Hate Me Because I’m #BeautifulLGBT+” campaign partnered with GLAAD to redefine what ‘beautiful’ looks like in today’s world and uplift members of LGBT+ community by celebrating inclusion, representation and freedom of
expression. Gillette introduced “The Best Men Can Be” campaign and released a short film called “We Believe” to showcase the best in men. Gillette committed to donate $1 million per
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year for the next three year to a designated program to inspire, educate and help men of all ages achieve their personal “best”
Gender Equality P&G wants to build a world free from gender bias, with equal voice and equal representation for all individuals. There are three areas that they focus on: -
Leverage voice in advertising and media Remove barriers to education for girls and economic opportunities for
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women through corporate and brand programs and policy advocacy Create an inclusive, gender-equal workplace environment
Here is the profound campaign:
Always launched #EndPeriodPoverty campaign to raise awareness of the period poverty and encourage people around the world to take action. Period causes girls to miss school, sports and other developmental experiences which can limit girls’ confidence and potential far beyond puberty. Always supported the launch of the Girls Opportunity Alliance (GOA) that matched public donations up to $250,000
for grassroots girls’ education project around the world. “Equal work, equal sweat, equal pay” campaign: Secret brand was the first official sponsor of $500,000 to publicly support the U.S. Women’s National
Soccer Team’s fight for equal pay. Arieal beand #ShareTheLoad and Pampers brand #LoveTheChange promote equality. Both of them hope to challenge social norms about gender equality and
equip changing tables in redstrooms across the US and Canada by 2021. A new playbook for workplace equality which more broadly addresses the systems, policies, processes and bias that hold women back. #WeSeeEqual forums are a place P&G encouraged all to continue advocate for change. Women Deliver
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2019 Conference called “Women at Work: Myth vs. Reality” was a beyond the
intersectional conversations to highlight gender equality. Influence culture through media and advertising through: Free the Work, Association of National Advertiser’s #SeeHer Movement, #ShelsEqual Summit to
enhance the belief in equality New parental leave policy in Europe #ShareTheCare helps workplace equality begin at home. It enables fathers to take an average of 8 weeks of paid leave within the first 18 weeks of their child born or adopted.
REFLECTION P&G makes a commitment to change the lives of human worldwide and encourage employees to understand the importance of the impact to the community. Create moral behavior, educate employees and change social practices are embedded in P&G’s mission and philosophy. Not only do they help others on daily basis, they create a significant impact to billions of lives around the world. P&G is not just saying, they act in a manner that can observe from corporate and brand campaigns, that is why they was awarded Just 100: America’s Best Corporate Citizens by Forbes. GREEN INITIATIVES P&G has an ambitious goal to minimize their environmental footprint, to innovate with the best and safest ingredients from both science and nature, and to create products that make responsible consumption irresistible ("P&G Citizenship Report 2019", 2019). P&G made a significant progress against the goals that set in 2010 around climate, water and waste. In general, most of the goals are achieved, and some of that are nearly achieved. P&G ensures that 90% of their product packaging is recyclable, reduces packaging by 20% pre consumer
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(Figure 17: 2020 Environmental Process on Water and Waste, Adopted from P&G, 2020)
(Figure 18: 2020 Environmental Process on Water, Adopted from P&G, 2020)
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P&G strives to grow responsibly, constantly to improve the resources efficiency while reducing footprint. P&G success decreases the footprint and achieve reductions in waste, water, energy and GHG emissions.
(Figure 19: Environmental Progress 2020 vs. 2010 Baseline, Adopted from P&G, 2020) After the success of Ambition 2020, P&G announced the Ambition 2030 sustainability goals. The goals leverage the scale to enable and inspire positive impact on the environment. This campaign helps to reduce footprint in supply chain and strive for circular solutions. P&G wants to impact society by creating powerful bio-images through their actions on science, materials and ingredients. The fundamentals that will touch on: -
Product and packaging innovation with 100% of packaging will be recycle
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or reusable. Brand communication, which brings positive advertising production to
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promote social and environmental sustainability Transparency to share the brand’s safety science Supply chain impacts reduction by sourcing of priority materials.
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(Figure 20: Ambitious Packaging 2030 Goal, Adopted from P&G, 2020) Brands take on responsible consumption to create products, solutions and services that make sustainable lifestyles seamless, while continuing to offer the value and superior performance to consumers, such as Tide Eco-Box, Olay Refillable Pod and Olay Strip it projects to have change the face of packaging and reduce plastic waste. Ariel convers SUD tubs to lightweight bags to sale plastics per wash. Pampers uses 30% less diapering materials oer baby over their diapering time.
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P&G is underway testing new reusable packaging called Loop, a partnership with TerraCycle 0 a circular shopping platform designed to eliminate waste. This is a concept that consumer purchases household products in durable, refillable packaging that delivered to doorstep. Once empty, Loop collects and cleans the packaging to be put back into circulation for resuse. P&G joined The Alliance to End Plastic Waste to manage plastic waste in the ocean. The Alliance supports projects and partnerships that focus on solutions in four core areas: infrastructure, innovation, education and cleanup, with particular emphasis on Southeast Asia region. The 50 Liter Home Concept by P&G brings together companies, policy makers, influencers and communities to develop and scale innovations for the home that help solve urban water crisis and address household energy consumption and associated GHG emissions. P&G purchases 100% renewable electricity in the US, Canada and Europe to help reducing climate change. These three markets are among their largest and represent more than 70% of their purchased electricity. REFLECTION P&G makes a clear target to lead green initiative within consumer products industry. P&G claims many rewards for their contribution, including d Sustainability Award for Water by The American Forest & Paper Association (2016), Climate Leadership Award 2017: Organizational Leader for active leadership within the industry to address climate change and reduce greenhouse gas emissions, 2018 Eddit.net Sustainability Leaders Awards – Sustainable Supply Chains. Not just only saying, P&G proves through their acts to the environment with clear purpose. IN THE NEWS & CURRENT HAPPENINGS
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Olay #MakeSpaceForWomen – partner with Girls Who Code to advocate Jan 30, 2020 women in coding and web development. With every mention of #MakeSpaceForWomen on Twitter, OLAY will donate $1 (up to $500,000) to Girls Who Code, an organization that teaches girls how to solve problems, build community and make robots dance When We Come Together
Feb 02, 2020
First time ever brings 7 brands in TV commercial co-created by people across the country. Visit website to be able to direct the action to select how they want to see the characters tackle an Super Bowl party messy surprise Interactive video technology by Eko. (1st time used in Super Bowl ad) Share the Love – Pampers
Feb 19, 2020
To reflect the power of mom after their new survey reveals most moms worry they are not doing good enough job Launch Microban 24, new line of antibacterial cleaning products
Feb 24, 2020
Do it Every Night – Cascade
Feb 13, 2020
A campaign to encourage water conservation in an unexpected way: by considering running the dishwasher every night, instead of washing dishes by hand Vicks
Mar 20, 2020
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Donates $1 million for COVID-19 Health Care Relief REFLECTION In recent news for this year, P&G focuses on the current trends on the market. Back in January, they focus on enhance the power of women in engineer to pursue the Gender Equality. On February, to prepare for the Super Bowl events, P&G brought up many commercial advertisements and campaigns that using their brands’ mascots and characters to tell the stories and support the event. On March, knowing the impact of COVID-19, P&G did many community and social support activities, such as producing more essential products, tell employees to work from home and donating sanitizing products in different areas. COMPETITIVE SET NET SALE Fabric and Colgate-Palmolive (Palmovie, Ajax, Fleecy) Home Care
Unilever (Surf, Persil) Church and Dwight Co (Oxi Clean, the Arm & Hammer)
33% (Tide, Bounce, Downy, Febreeze)
Family Care
Colgate-Palmovie (Tender Care)
27%
Unilever (Zwitsal)
(Luvs,
Church and Dwight Co (Viviscal, Rephresh)
Beauty
Avon
Bounty, Charmin) 19%
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Unilever Colgate-Palmovie Estee Lauder Revlon Health Care
Colgate-Palmovie
12%
Church and Dwight Co
(Vicks
Ecolab
Pepto
Stepan Company United-Guardian Grooming
Bic
Bismol Prilos)
9%
Unilever (Dollar Shave Club) ANALYSIS The consumer goods market is very competitive. The reason for this is because consumer needs and tastes vary by demographic, geography, ages and culture. In order to get on top of the market, P&G needs to be innovative and diverse with product lines, brand names and great marketing strategy that suitable to the taste of consumers. Procter & Gamble is one of the world’s largest consumer goods in almost every country in the world but it is not the only company trying to race to the top of the consumer goods industry. KEY TAKEAWAY
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Procter & Gamble is a very well-known consumer products company, owning major brands like Crest, Gillette, Pampers, and Tide.
The company has paid a dividend for nearly 130 years and has increased dividends for 63 consecutive years.
Major competitors for P&G include Colgate-Palmolive, Church and Dwight, and Unilever.
Nearly two-thirds of P&G’s revenues are generated from developed markets, while Unilever gest the majority of its revenues from faster-growing emerging markets.
P&G earns nearly 45% of their revenue from North America, 23% from Europe and twothirds is from developed market. This is one of the problems when P&G spends more concentration in slow-growth markets, while their competitors like Unilever focused on driving growth and sales from developing markets. TARGET MARKET & GUEST EXPECTATION TARGET MARKET P&G customers include mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies and direct-to-consumers ("Procter & Gamble Stock", 2020) - Divide into distinct group of buyers on the basis of Needs, Characteristics, Behavior + Psychographic Segmentation: divide into different individual groups based on social class, lifestyle, personality traits + Geographic Segmentation: divide into different geographical units
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+ Demographic Segmentation: divide by different gender + Smart Audience Segmentation – use customers ID to create users’ insight to create marketing strategy and brand management that attribute to specific audiences GUEST EXPECTATION INVESTORS P&G wants to provide customers with the best experience possible. Customer can request a consultation on: -
Odor Elimination: support create environment by eliminating odors which
-
can linger in the air, in fabrics and in areas of the workplace One Step Greater Than Clean: practical tips for effective cleaning and
-
disinfecting facilities of all types Clean Restrooms – to create customer impressions through the cleanliness of restrooms in quality standards
P&G has another quarter rising organic sales and profit 5% from a year earlier (Maidenberg, 2020). P&G continues ride shifts to premium products with new. The company has shed mass-market beauty brands and led the industry in higher prices to offset commodity costs and fatten profit margins. P&G is currently selling out a dividend of $0.75 per share, with a dividend yield of 2.37%, higher than S&P 500’s yield of 1.81%. over the last 5 years, P&G has increased its dividend 5 times for an average annual increase of 2.99% ("Procter & Gamble (PG) is a Top Dividend Stock Right Now: Should You Buy?", 2020). P&G is an attractive dividend play and a compelling investment opportunity for investors and business.
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(Figure 21: Investor Expectation, Adopted from P&G, 2020)
(Figure 22: Financial Highlight, Adopted from P&G, 2019) BRAND TECHNOLOGY ADVANCEMENT
SK-II’s Future X Smart Store transforms beauty retail shopping with facial recognition and gesture-driven “phygital” experiences, augmented by SK-II’s proprietary skin science and diagnostics
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(Figure 23: Technology, Adopted from P&G, 2020)
Olay’s Skin Advisor platform uses artificial intelligence to provide personalized skincare analysis and recommendations by analyzing selfies and a short questionnaire
(Figure 24: Technology, Adopted from P&G, 2020)
The Heated Razor by GilletteLabs features a warming bar that heats up in less than one second and elevates the shave experience, delivering the pleasure of a hot towel shave with every stroke.
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(Figure 25: Technology, Adopted from P&G, 2020) 
AIRIA, a smart home fragrance system that uses patented, capillary action and heating technology to establish scent-enhancing ambiance with the touch of a button.
(Figure 26: Technology, Adopted from P&G, 2020) 
The Oral-B iO o Smart Pressure Sensor to identify and guide users to brush correctly with o 7 different brushing modes o Interactive Display to personalized brushing encouragement, two0minute counts up function o Connect through Bluetooth with an app uses Artificial Intelligence Recognition and 3D Tracking that guide customers to best clean all areas of the mouth o Magnetic charger, full charge in 3 hours
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(Figure 27: Technology, Adopted from P&G, 2020)
Charmin “GoLab” o RollBot, a robot that controlled with a smartphone using Bluetooth, delivers toilet roll to you, uses self-balancing technology o SmellSense, an electronic sensor monitoring system for bathroom to check how the bathroom smells without having to experience it yourself o V.I.PEE is a premium porta-portee experience enhanced with an Oculus Rift S virtual reality headset that make the toilet experiment better
(Figure 28: Technology, Adopted from P&G,2020)
Opte Precision Skincare System uses certified LED lights, an integrated digital camera, precise color algorithm and a micro printer to scan, detect and correct hyper-pigmentation while dispensing a custom blend of serum
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(Figure 29: Technology, Adopted from P&G, 2020)
SERVICE STRATEGIES, PHILOSOPHIES - Strengthen P&G’s portfolio in daily-use categories - Superiority to win consumers through products and packages, brand communication, retail execution and value advantage
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(Figure 30: A Legacy of Forward-thinking, Adopted from P&G, 2020)
(Figure 31: Company Strategy, Adopted from P&G, 2020)
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(Figure 32: Five Elements of Superiority, Adopted from
50
P&G,2020)
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(Figure 33: Our Philosophy, Adopted from P&G, 2020) REFLECTION Procter and Gamble shares some similar strategies and value as in hospitality industry foundation. They both prioritize their products and consumers in the first rank and look for the groundwork for its future success. P&G focuses on innovating their products and adapt the most advance technology to their products for better consumer’s every day experiences. Not only success in bringing the good benefits for its partners and investors, P&G focuses on enhancing the awareness of moral behaviors, teamwork and returns on investment for their customers. It is refreshing to witness how P&G leading the race for other companies following the same practice. SELF-ANALYSIS At completion of in-depth research for this case study, I can confidentially say Procter & Gamble is a great fit for me. Their promise of making everyday life just a little bit better aligns with my own. I am currently experiencing quarantine camp in Vietnam and found myself useful to help people during the time I am staying. By little action, I observe people’s daily life here and use the knowledge gained from conversations with officers, doctors and nurses to pick the essential products to donate. I donate fans and electric kettle with my friends. Knowing that there are many ways to help with a deep observation make me learn the passionate that Procter & Gamble wants to bring to life. My actions become vibe on social media and many press contacts me for interviews. I would now understand how your word can change people life and how the action can make life better. P&G shares 5 main values including leadership, trust, integrity, ownership and passion for winning. These values are equivalent to the principles I follow. Integrity is taught as hospitality majors. My strength finder is achiever, ideation and strategic, which reflect perfectly with leadership, trust and ownership. Also, we are taught to become a successful leader and to
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humble with guests. My passion for winning develops through my academic and social experience which makes me want to target new goals and never limit myself abilities. I am impressive with what the company does in regards to corporate citizenship and green initiatives. P&G has separate citizenship board that reflects the serious the company wants to put efforts in. All the actions are very important to the younger generations since P&G wants to reduce the impact on environment and raise awareness on different social issues through their brands and corporations. In addition to all the philanthropic efforts, I believe that my desire to give back to community is a good fit with the company. I have a great passion in making people life breathable and more convenient. Aside from that, P&G just made an incredible effort by donating 10,000 sanitizing soaps to factory workers in Vietnam. This shows their great morals in helping the community, not only in particular region but worldwide. P&G’s human resources strategies are innovative and thorough. Through my interview with Barbara Bell Kelly, Senior Manager in Shopper Marketing, she claims that most of the employees and even her work for P&G since graduate because of their great program that support the employees and their families. They look for students from different majors as future employees. Their hiring process is complicated and difficult since they look for the great candidates that show the good fit with the company. Additionally, their hiring process is not only behavior assessment, they have different tests based on the job you applied which require you to focus and well-prepared. After finishing this case study, I am delighted to start a career with Procter and Gamble in the future. I feel my characters and my experience align with company’s value, mission, vision and principle. I can envision myself growing and doing well in a rich company culture such as Procter and Gamble. Although, my degree is in Hospitality Management with a minor in Marketing, it is a business degree that focus in customer service and brand strategies. My unique background is a great asset and will allow me to bring some diversified features to the table.
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APENDIX - INTERVIEW Barbara Bell Kelly, Senior Manager in Shopper Marketing, Procter & Gamble USA TARGET MARKET Q: I’ve read that P&G used premium pricing strategy, P&G sets prices that are relatively higher than the market average. Do you afraid that you will lose customers based on price competitive? What is your target market? A: P&G has over billion shoppers, consumers use our products every day, so I say our target market, and it is very focus, intentional thing. Our market it is to be acceptable to all shoppers and we want to be big and be known to our shoppers. So, we want to be that big popular brand. As you get into our specific brand, there are certainly more targeting the total arms. And even in our brand, we often have many targets and segmentation we are looking at. For example, we are doing a lot for national market with some of our brand. We know that there are 5 different shopper segments that brand from unaware all the way up to intentional. And we are designing products to meet each of those segments. So, our target market is very broad but how we reach that market get very tacky trick. Brand – tactic – communication strategies. HUMAN RESOURCES Q: (Hiring Process) What does your recruitment process look like to avoid high turnover rate? A: Our recruitment practice is to recruit for intern program. It is what really see as our hiring program, almost everybody starts as an intern. And so, we can reduce the recruiting sophomore and junior years and part of the reason, is not only for our tribe identify top talents but also for intern to understand how we work and so that is really reduce the turnover because everybody from gen knowing what to expect from each other. That is one thing. Second is we have a very
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long-standing process of interviewing based on our success factors what make people successful at P&G, it is called on right factors that on the website everybody can see them. We believe if you have establishment of history of being successful and in the theory of, you will be successful at P&G. And the third is from the beginning, we have ferity group, support group for women, for African-American, for gens-trans, mostly everything we have support groups that is bring to help factoring group success and make you feel connected. And all of that help to reduce the turnover. We have leadership program for sophomore and internship for juniors and as a new hirer, we have new hirer training and we have new hirer class so you might start in Seattle, WA on Amazon team , somebody in Orlando for Publix team, you are all in part of new hirer class which is a great system. Q: (Reward) How do you motivate employee? Is there a reward system? A: I think everybody creates Five Rock to make you follow everything that even curvy and Steven, our executive people, he talked a lot about the rock. If you do the rock first, everything will take care themselves. So, everyone has 5 rocks, 5 big projects or to liberal that you a year and that you evaluate on. Our work is so interrelated, it is never just one person. MANAGEMENT/LEADERSHIP STYLE Q: What is your management style like? A: There is not only single leadership style within P&G, which is defined that we promote from within. Everybody who is at the top, we do some internal hirer, the vast majority is the new hirer and work their way up. At the result, management style is very inclusive and more teaching style because our team and management recognize it the younger employees are the leadership for the future. It is democratic style because everyone is collaboration. Q: What is the most difficult part of your job?
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A: It is a fun challenge that is focus to create a joy value, P&G brand is a customer brand so we need to looking at it as what trade for us and what trade for customers. You need to grow year after year because our brands are around 150 years, you want to make sure that you are growing them in the way that work for customers. We sell to wholesalers that bring to consumers. The exception is for a tacking new brand or incubating a new brand, very small part of our business. We are B2B. The most challenging of our job is our brand are on innovation and as smaller brands come in and distract our innovation that make it more difficult. For example, we created the whole laundry categories like Downy. Downy gives a phenomenal during the experience, when somebody tries to interior, before they try Downy, they look for less expensive like Snuggle, they won’t have the same experience and so they’re going to say “I don’t need this category”. And sometimes it is challenging to manage the innovation with the marketplace. CORPORATE CITIZENSHIP (ENVIRONMENTAL SUSTAINABILITY) (2) Q: Does the company do anything to be “greener”? A: Absolutely yes, “Efficient 2030”. Our goal is zero waste and reduce water contention by 30%. We design high sugar crane is designed is plant-based to clean and core water, which is the number 1 challenge for heating of the water in the environment. We are creating products to deliver the performance in sustainable way. “Ocean Plastic” is project we create bottle form ocean plastic. Q: Are there charities you work? A: We have a platform called “Live – Learn – Strive”, make sure it is consistent. Safe drinking water is big focus and that corporate. And some brands that do some specific things always have a partnership and share your poverty. Young woman can’t go to school because of they can’t afford the protection. Some programs are corporate and some are brand level.
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Gender equality is one of the key focus areas in terms of social sustainability. “The life of girl campaign”, “the equal pay for equal work”, “secret platform” are under that. COMPETITIVE ADVANTAGE Q: What is the Core competencies and Distinctive Competencies that make P&G outstanding than competitors? A: To me, be insane on the shoppers, the consumers and how they use our products and combine with focus on innovation allow us to create interior products. I happen to think that people are the best source in the world. Consumer is boss. We have a good relationship with our retail partners.
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