P&G Strategy

Executive Summary Competitive analysis of P&G often focuses on hard outcomes like market sh are, make margin, and number of patent applications but misses some under-appreciated but nevertheless diminutive strategies that drive P&Gs business. The least understood and near powerful P dodging Is leveraging Its casing. Least understood because It Is hard to measure most powerful because It touches everything the company does.P& G has four separate identifiable scale leveraging strategies 1 a retail trade strategy a top down Corporate vs.. Division/brand funding strategy a consumer cohort strategy systemic strategies Scale Is becoming much and more important, particularly as retailers globoseize and continue to drive out hand over chain costs. We bring Industry-leading supply chain management and the Intellectual ceiling of our people to retail partnerships. We have higher(prenominal)-than-average market shares at our top global retailers.As big customers grow, Ps overall marke t share grows. Leverages Its Scale In shipway 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 edify retailers who are gaining share in the marketplace. In fact, gaining share with growing retailers is other major P&G strategy. Everyone recognizes that retailers are becoming more and more powerful, demanding more price concessions from manufacturers while 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 investing tens of millions of dollars in Supply mountain range efficiencies to come the low-cost distributor, developing innovative distribution concepts and then marketing their advantages to retailers with sophisticated Activity Based Costin g software tools.In addition, high great deal from multiple categories permits P account handlers at all levels to offer retail customers benefits such as Account- specific consumer research Major theme events with unfeigned substance which make the retailer look good to their consumers (e. G. , the Womens Health world-class 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.