P&G Strategy

Executive Summary Competitive analysis of P&G very much focuses on hard bulge outcomes like market partake in, gross margin, and number of patent applications but misses some under-appreciated but nevertheless critical strategies that drive P&Gs business. The least(prenominal) understood and most powerful P strategy Is leveraging Its scale. Least understood because It Is hard to measure most powerful because It touches everything the company does.P& G has intravenous feeding separate identifiable scale leveraging strategies 1 a retail trade strategy a top down Corporate vs.. Division/ reproach funding strategy a consumer cohort strategy systemic strategies Scale Is becoming Increasingly important, particularly as retailers sphericalize and continue to drive out supply chain costs. We bring Industry-leading supply chain management and the Intellectual capital of our people to retail partnerships. We substantiate higher-than-average market shares at our top global retailers.As b ig customers grow, Ps overall market share grows. Leverages Its Scale In Ways That Competitors Dont Fully Appreciate Leveraging scale with the retail trade These are programs that have a high perceived value to the retailer and reinforce Ps competitive advantages. Of course, these programs are most aggressively sold to the more enlightened retailers who are gaining share in the marketplace. In fact, gaining share with growing retailers is another major P&G strategy. Everyone recognizes that retailers are becoming more and more powerful, demanding more price concessions from manufacturers plot of ground themselves marketing private brands of higher and higher value to consumers. Most manufacturers respond by dumping cash into the retailers wallet. P responds by leveraging its scale. P is investment tens of millions of dollars in Supply Chain efficiencies to come the low-cost distributor, developing innovative distribution concepts and then marketing their advantages to retailers wi th sophisticated Activity Based Costing parcel tools.In addition, high volume from multiple categories permits P account handlers at all levels to offer retail customers benefits such as Account- specific consumer research Major substructure events with genuine substance which make the retailer look good to their consumers (e. G. , the Womens Health Initiative at Wall*Mart) Multi-category consumer studies (e. G. Mothering) Software analytics We see retail consolidation as an opportunity that P&G is uniquely capable of leveraging.