Procter & Gamble Case Study: Innovation, Marketing, and R&D Analysis

This case study provides an overview of Procter & Gamble's (P&G) business, focusing on its innovation capabilities, marketing strategies, and the impact of external factors. It highlights P&G's innovation advancements, marketing organizational structure (product type, geographical, and functional divisions), market research techniques (qualitative, quantitative, and online), and R&D methodology (consumer knowledge, superior technology, and branding). The analysis includes Porter's Five Forces and macro-environmental factors affecting P&G. Recommendations suggest reviewing brand image strategies, embracing online advertising, and diversifying to new stores to mitigate market risks. The study also examines P&G's technological perspective, open innovation process, and enhancements to its innovation capacity through research networks and partnerships, ultimately aiming to provide insights for strengthening P&G's market position and global presence. Desklib provides access to similar solved assignments and study resources for students.

Procter & Gamble Case Study
Student’s Name
Institution Affiliation

Company Background
The company was established May 5th, 1905.
Main products produced are household items
such as baby care, fabric, healthcare, beauty care
etc. (Tran, 2005).
Comprises of almost 300 brands in about 80
countries worldwide (Nee, Song and Ong, 2013).
Its annual revenue is estimated to be about $1
billion

Innovation Outline
 Over the years there has been great advancement at P&G in
terms of innovation capability (Terziovski, 2007).
 Based on their innovativeness P&G is classified to be 5/10 and
7/25 according to recent marketing reports (Ferdousi, 2015).
 From 1995 when the pacesetters released a general report
concerning P&G company currently the company has
established an additional of 170 products which are
categorized in the non-food sections which outfits its
competitors (Karniel and Reich, 2011; Hartmann and Schmidt,
2007)

Marketing: Organisation’s Internal
Structure
The divisions of the P&G prototype
organizational structure based on its feature
are:
Product type division
Geographical division
Functional division

Marketing: Market Research
Techniques
The Marketing Research Tools employed by P&G company
include:
Qualitative techniques
Quantitative Research data collection Tools
Exercising online marketing research analysis (Connell and
Teo, 2010). Ideation on online market search technique enhances
globalization (Desai, 2013).

Marketing: R&D Methodology
Acquiring deep Consumer knowledge
Innovate with Superior Technology
Use of Branding Technology
• Creation of mutually valuable venture with
outdoor organizations and companies
(Eftekhari and Bogers, 2015)
Drawing and aiding of excellent innovators
around the world

P&G Cumulative R&D Spend

R&D Advantages to P&G

R&D Advantages to P&G
Structuring of brand new production skills for
the generation of innovative items within the
P&G firm.
Build up of latest inventive production
processes with the aid of simulation models
Filtration and qualification of different models
in order to increase manufacturing capacities
(Stieler, 2017)

Key External Factors
Porter’s 5 Forces:
Purchasing power of consumers – Mixed Strong
Power of suppliers - Low
Threats to new entrants – Moderate
Substitutes threats (High)
Threat to Rivalry (High)

Key External Factors
External factors affecting P&G are Macro
environmental forces. These include:
Macro-economic
Demography
Global
Social
Innovation

Recommendations
 Review Procter and Gamble brand image strategies by producing new
products using ideation
 Embrace the power of online advertising to globalize
 Diversification to new stores to limit P&G’s market risks and exposure
Explanation
Despite the fact that P&G productivity is at a competitive edge, the company
need to formulate measures to overcome potential threat and weaknesses in
business. The company’s limited online presence and market
diversification is a weakness that P&G management needs to exclude.
Provided these recommendation in the marketing activities of the
company, P&G will be capable to establish as stronger brand image and
marketing abilities to globalize.