Procter and Gamble (P&G) SWOT Analysis
One of the major strengths of Procter and Gamble (P&G) is that it has a wide reach in the market. Check out EdrawMax's SWOT analysis of P&G, where we analyze the brand by its strengths, weaknesses, opportunities & threats.
1. Lead-in
SWOT Analysis, as its name suggests, is a form of analysis done by professionals for a company. Procter and Gamble (P&G) is an American company dealing in the consumer goods industry with many strong competitors in the market. Therefore, the Procter and Gamble (P&G) SWOT Analysis helps to identify the competition that exists in the market with the help of the four key points. SWOT Analysis of Procter and Gamble (P&G) mainly looks into the strength of the company, the weaknesses of the company, the opportunities received by the company, and the threats faced by the company.
SWOT Analysis for Procter and Gamble (P&G) will help the company decision makers as they can construct appropriate strategic decisions for the company’s growth. In this elaborate guide, we will help you understand the importance of SWOT analysis and how you can build one using the free templates and components offered by EdrawMax Online.
2. About Procter and Gamble (P&G)
2.1 Introduction of Procter and Gamble (P&G)
This American multinational company dealing in consumer goods has a massive business reach in the market. Even though it has many tough competitors, it still has held onto its position no matter what. They deal with everything, including personal care and hygiene products, fabric and home care products, baby, feminine, and family care products, and other such things. Its product portfolio also involves food, snacks, and beverages.
2.2 Overview of Procter and Gamble (P&G)
| Name | The Procter and Gamble Company |
| Founded | 31st October 1837 |
| Industries Served | Consumer goods |
| Geographic area served | Globally except for North Korea |
| Headquarters | Cincinnati, Ohio, United States of America |
| Current CEO | Jon R. Moeller since 1st November 2021 |
| Revenue (US$) | 76.12 billion approximately as of 2021 |
| Net income (US$) | 14.31 billion (approx.) as of 2021 |
| Employees | 101,000 (approx.) as of 2021 |
| Main competitors | Johnson and Johnson, Clorox, Colgate Palmolive, Unilever, etc. |
2.3 History of Procter and Gamble (P&G)
| 1837: | P & G was founded. |
| 1858 - 1859: | Sales reached $1 million. |
| The 1880s: | Started marketing Ivory. |
| 1911: | Started producing Crisco: |
| 1921: | Annual advertising budget reached $1 million: |
| 1930: | Acquisition of Thomas Hedley Co. |
| 1946 and 1947: | Introduced Tide and Prell, respectively. |
| 1955: | Started selling Crest. |
| 1957: | Purchased Charmin Paper Mills. |
| 1961: | Started marketing Pampers diapers and Head and Shoulders. |
| 1996: | Olestra came out. |
| 2005: | Announced acquisition of Gillette. |
| 2012: | Exited the food business. |
| 2016: | The company completed the transfer of Duracell to Berkshire Hathaway. |
| 2018: | Completed the acquisition of the consumer health division of Merck Group. |
3. SWOT Analysis of Procter and Gamble (P&G)
Strengths
- Research and Development: Procter and Gamble (P&G) research every little detail before developing a particular product. Thus, it is its strength and a reason behind its success.
- Global presence: The company markets its products everywhere, and thus it has a far better reach in the market than many of its competitors. Their global market makes their products one of the most extensively used ones.
- Brand Equity: P&G is very successful in holding brands that have high brand value in themselves. Brands like Gillett, Ariel, and Duracell are all market leaders and can bring high-profit rates for P&G.
- Brand Reputation: P&G never faced any failing business due to its marketing technique and reputation. Therefore, it is a given that they have very high profits and that they earn good revenue.
Weaknesses
- Closure of brands caused loss: Even though the company is doing pretty well, many subsidiary brands under the company no longer exists. The best example would be Pringles and how Kellogg’s bought it. This closure of brands has resulted in some losses faced by the company.
- Unable to keep up with the frequent change in demand:When it comes to consumer goods, it is a given that the public demand for the product would change quite frequently. Procter and Gamble (P&G) sometimes face problems while keeping up with the continuous shift of this public demand. It can be a weakness on the company’s part.
- Low organic growth: Due to the slow increase in the customer base due to reaching the saturation curve and the lower rate of innovation, P&G is facing a lower rate of organic growth. Therefore, P&G needs to invest in a few unique marketing tactics to get out of this.
- Slow decision-making due to the company structure: The company has many heads and managerial positions, and making a decision is not a one-person job when it comes to Procter and Gamble (P&G). So, the involvement of so many people cause a few delays in the decision-making process.
Opportunities
- Chance to increase the organic growth: Due to its current lower rate of organic growth, P&G has a way to increase its organic growth by doing some good marketing and producing some newer products in the market.
- Reach the rural market: Even though P&G is available in most markets, there are specific rural markets that they have not yet entered. So, this can be an opportunity for them to explore another market for more profit and revenue.
- Mergers and acquisitions: Mergers with popular companies can make another company even more popular than they already are and earn them more customers. Hence, profit. P&G’s acquisitions are pretty successful, giving them good opportunities in the market.
- Higher purchasing capability: The purchasing capability of consumers has increased a lot over the years, and one can say that it will increase even more. It directly affects companies like P&G because the higher the purchasing capability, the higher their profits.
Threats
- High competition: Consumer goods is a sector that has a very high competition level. P&G does not only have to face popular brands like Johnson and Johnson only, but there are also local brands who are trying to steal the market as well, and thus, P&G has to keep up with all kinds of competitors.
- Increased prices of raw materials: Customers may consider it a red flag when the leading management heads leave their posts at a highly successful company like Procter and Gamble (P&G). It can put a dent in their reputation and name.
- Buyer control: P&G operates in the market of consumer goods. Thus, it is natural that the buyers control its operations. Everything related to the company, including profit and revenue, highly depends on the buyers and their demands and tastes. With a slight change in their mindset, the company can face massive losses or gain a lot.
- Strict rules and regulations: Government rules and regulations should be maintained at all costs. If P&G fails to do so, it will have problems with the law, which is never a good thing when it comes to business because it affects the reputation of the company, and the public loses faith in the company.
Procter and Gamble (P&G) SWOT Analysis Diagram
As you have seen here, the organization's SWOT analysis helps us understand its multiple opportunities and threats and how it can utilize its strengths and overcome its weaknesses. In order to understand the SWOT analysis better, we will create a P&G SWOT analysis diagram using the free templates and components offered by EdrawMax.
4. Free SWOT Analysis Diagram Creator
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5. Key Takeaways
The entire article analyzes Procter and Gamble’s (P&G) SWOT Analysis. The SWOT Analysis of Procter and Gamble (P&G) involves analyzing the company and its position in the market based on the four key points, strengths, weaknesses, opportunities, and threats. SWOT Analysis for Procter and Gamble (P&G) will help the professionals to make better decisions for the company’s success in the future.
When it comes to SWOT analysis making, professionals and beginners look for such tools that offer a wide range of options and are affordable. Over 25 million people worldwide prefer using EdrawMax Online for their diagramming needs. The online version of this SWOT analysis software offers you several remote functionalities of this diagramming tool, like access to private cloud storage and more.
Reference
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Bhasin, H., 2022. SWOT analysis of Procter and Gamble - P & G SWOT analysis., [online]Marketing91. Available at: https://www.marketing91.com/swot-analysis-procter-gamble/ (Accessed 9 September 2022).
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Wix.com. 2021. SWOT Analysis: What Is It and How to Do It for Your Business., [online]. Available at: https://www.wix.com/blog/2019/12/how-to-do-a-swot-analysis/?utm_source=google&utm_medium=cpc&utm_campaign=16254066953 (Accessed 9 September 2022).
