Proctor and Gamble - Strategic Management Essay

Proctor and Gamble - Strategic Management - Essay ExampleThe companionship operates in six product segments grooming, peach, Health care, Home care, Family and Baby care, and Pet care (P&G, 2012a). Beauty and individualised care arena are contained within P&Gs grooming, beauty and health business segments and include skin care, oral care, cosmetics, fragrances, hair care, baby care, depilatories and mens grooming products (Euromonitor, 20104). Some of the fundamental brands in beauty and person-to-person care arena include pampers, Olay, Head& Shoulders, Panteen, Mach3, Oral B, Puma, Fusion, Gillete, safeguard, ivory among others (P&G, 2012b). The companys global Beauty and Personal care market portion is 11.7% with the volume growth in net sales in this segment being an average of 4% in 2011 where the beauty segment growth was 3%, the grooming segment at 4% and the Health segment at 5% (P &G Annual Report, 2011 41-42 Euromonitor, 2010 4-5). The market share growth for the Beaut y and personal care products experienced single digit growth at the rate of 2.8% with the market share growth for the Beauty and Personal Care share for the company based on the main categories of skin care, hair care, mens grooming, fragrances, and oral care being as shown below in figure 1. Figure1 time value Market Share Source Euromonitor, 2011 Similar with its peers in the industry, P&G was negatively impacted with the global economic crisis with its key brands being grossly bear on and net sales within the industry having fallen during the 2008 2009 period. However, with the companys scheme response in focusing on core businesses and brands, and divesting in its little critical segments, the company has been able to record growth within its various product segments, with the beauty and personal care products taking the lead in growth. In addition, the company has over the past(a) three years focused in building a strong market position in emerging countries much(prenomi nal) as China, India, Russia, and Brazil (Raval, 2012 1 Prior, 2011201 Reingold, 201160). Financial Assessment The company has bounced back from the 2009 decline in net sales through its post recession strategy of focusing on its core businesses and brands, and its continued investments in the emerging markets. The most impactful strategy though that has increased net sales is the companys finality to cut down prices. These strategies have proved successful with the company increasing its net sales over the 2010 and 2011 period. Net sales rose by 4.6% in 2011 from 2010 net sales. This strategy though effective in the short term, it may be detrimental to brand equity in the long term. This is clearly celebrated with the downward trend of the net earnings value since 2009 at the rate of 1% (P &G Annual Report, 2011 1-2). The revenue versus profit growth trends over the past five year period is as shown in figure 2. The beauty and personal care segments as noted above though have bee n growth in sales volume especially in the emerging countries (P&G Annual Report, 201152 P&G, 20105). In fact the company has moved its personal care hub from Ohio to Singapore, in order to strategically place itself in that market (Raval, 2012). Figure2 Net sales and Net Profit growth trend SWOT digest A SWOT analysis of the companys beauty and personal care segment reveals a stronger and powerful portfolio of products as a key strength. This provides a strong