Free Essay

Managing with Analytics at Procter & Gamble

In: Business and Management

Submitted By orangevol
Words 597
Pages 3
CI Perp Note 2 for Managing with Analytics at Procter & Gamble

In today’s companies, the analytics software plays the important role and guides the future activities to a great extent.

The analytics software is the useful tool and great supporter for organization to reduce workload, increase the productivity and create competitive advantages. The analytics software helps organization knows exactly what customers want and their purchasing power, which will assist the company makes best decisions whether big or small every day. What is more, the analytics software works like an effective predictor, which will help organization look forward to the future scenario and make the best plan. Also the software is the key business enabler that advances technology tools, strategic development, collaboration and decision making. Finally, the analytics software is like a centralized service, which presented some noteworthy opportunities for improvement across the organization, such as P&G.

The work of analytics cannot be charge by the third party because the third party should not make important decision for the company as well as it does not understand the business of the company well enough to create innovation. So the analytics should be kept in house. When the analytics software is used in the development and implementation of the organization, it will meet some difficulties. Firstly, the technology works for business activities and the company has to invest in the business needs and solutions. Therefore, the company should train its employees in not only the technology and techniques, but also train them in transformation of their behavior. Secondly, achieving the real-time availability of information and then lead to real time decisions is useful for the company. But it will need a lot of work. Finally, when the P&G embarked on the wave 1 of the compacted detergents, the team found that it is difficulty to collect data to measure the consumer response to the new formulations; the usual data sources, scanner data from large retailers and Nielsen, were difficult to interpret; many retail outlets still had inventory of the non-compacted detergent so customers were still able to purchase the old one; and several competitors introduced compacted versions at the same time. All these problems and difficulties need the analytics of data to provide a clearer picture.

P&G has been successful in using analytics in some fields so far. By analyzing the trends of consumer purchasing, the company has designed the products, powder laundry detergents, which occupies a great amount of market share in the whole world. Not only innovate the new products, the analytics tool helps the company concern about the packaging, water use and transportation would be beneficial to environment. In addition, the success analytics deals with the problems of wave 1 and forecast the future activities for the company.

Even the analytics tools help the company succeed in some fields, it still has some challenges. A change in forecast had a much broader impact than just a modification. If the forecasts were not changed but results increased, P&G would be unable to meet demand and could demand and could damage relationships with retailers and customers. Moreover, an overly aggressive forecast would leave manufacturing with excess raw material, workers and inventory.

However, even the forecasts cannot give the right direction to the company all the time, the company should increase the forecasts by a few percent because it is not only a trend that the company use the statistical models to do the business, but also a great help in development and implementation of the company.…...

Similar Documents

Premium Essay

Procter & Gamble

...The Procter & Gamble Company Jake Rehtmeyer Analyst July 8, 2010 Recommendation: HOLD Pros: • • • • • Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Debt Rating Beta PG NYSE Household Products Consumer Staples Income & Capital Appreciation $175 B $39.37 - $64.58 $59.38 (7/2/2010) 15.9 15.2 $3.58 $4.26 3.2% AA0.60 • • • • Disciplined cash and cost management Investing in capacity, innovation, and consumer value this year 23 $1 billion brands and 20 $500 million brands Poised to grow in developing markets (low costs, great growth potential) Excellent consumer understanding, marketing, and brand-building Cons: Global economic conditions Regulatory environment (environmental, competitive laws) Currency and debt exposure Critical Issues: Near-term results vs. Long-term growth Growth strategy Cost and price pressures Regulatory environment 1 • • • Brief Overview The Procter & Gamble Company (P&G) is focused on providing branded consumer packaged goods. The Company’s products are sold in over 180 countries worldwide primarily through mass merchandisers, grocery stores, membership club stores, drug stores and in highfrequency stores, the neighborhood stores, which serve consumers in developing markets. As of June 30, 2009, the Company was organized into three Global Business Units: Beauty; Health and Well-Being, and Household Care. The Company had...

Words: 6272 - Pages: 26

Premium Essay

Procter and Gamble

...1 Individual Project MKTG 205-1205A-03 – Principles of Marketing Tuesday, November 13, 2012 Abstract Procter and Gamble has been in business since 1837, and some people purchase the product because it’s the things their parent’s and/or grandparent’s used. With a product line that includes toilet paper and dog food, it creates a wide range of consumers. Consumers still have a choice which creates competition between companies. But with such a vast line of products, and numerous commercials being aired on every channel, it’s hard for consumer not to be interested in at least one of the company’s products. Procter & Gamble Gain, Febreze, Tide, Downy, Duracell, Eukanuba, Charmin, and IAMS, are all part of the Procter and Gamble product line. With Procter and Gamble having so many products, the coupons found weekly in numerous Sunday newspapers, along with free trial samples being mailed directly to consumers, it’s hard to avoid owning or purchasing something that Procter and Gamble distributes. When the Gain product line was released, it became harder for consumers to avoid trying the product, and with the commercials, it made it easier for consumers to be willing to spend for the product. With all products, there is always an unforeseen problem, the economy, competitors, and social environmental forces that would affect the projected sales for Procter and Gamble. With the recent changes in the economy, households have cut down on things that they purchased......

Words: 1277 - Pages: 6

Premium Essay

Procter and Gamble

...80 countries and markets 300 brands in 180 countries around the world. In 1837 William Procter and James Gamble formed Procter & Gamble (P&G) to manufacture and sell candles and soap. Being that Cincinnati was booming from its hog butchering trade the suggestion for the partnership apparently came from their mutual father-in-law, Alexander Norris, who pointed out that Gamble's trade, soap making, and Procter's trade, candle making, both required use of lye, which was made from animal fat and wood ashes. P&G began operations out of a small storeroom with Procter running the store and Gamble ran the manufacturing which consisted of a wooden kettle with a cast iron bottom that was set up behind the shop. In the early years candles where their most important product, but the enterprising partners soon expanded their operations through innovation and acquisitions of other small companies. The first fifty years laid the foundation for the longevity of the company. With their forward looking approach to the business, during a time of financial panic in the U.S. the company continued to prosper as shipments were moving up and down the river and across the country by rail. During the 1850’s the company grew rapidly and moved operations to a bigger factory. During this time the company created its first trademark logo, the moon and stars, which became a symbol of quality to Procter and Gamble’s base of loyal customers. By 1859 P&G had reached sales of $1......

Words: 1887 - Pages: 8

Free Essay

Procter & Gamble

... | |Procter & Gamble Switches to Microsoft to Improve Productivity and Reduce Costs | | |[pic] | | | | | | | | | | | | | |Overview | | |“With the Microsoft solution, we were able to improve collaboration and reduce costs at the same | |Country or Region: United States | | |time.” | |Industry: Manufacturing—Consumer goods | | |Jeff Nicolai, Service Manager for eMail and Web Content, P&G | | | | | | |Customer Profile | | | | |Procter & Gamble is the world’s leading | | | ...

Words: 2995 - Pages: 12

Premium Essay

Procter and Gamble

...Case Study Collaboration and Innovation at Procter and Gamble (Chapter 2) 1:  What is Procter & Gamble’s business strategy? What is the relationship of collaboration and innovation to that business strategy? Procter and Gamble strategy is to maintain the popularity of its existing brands and in developing new products by extending existing brands and by creating new brands from scratch via innovation. It innovation is at the top of Procter and Gamble’s strategy and collaboration is a critical part to attaining this innovation. In order to constantly come up with new lines of products, Procter and Gamble must incorporate innovation in every aspect of its business. All objectives and business processes must be aligned in a way to foster and generate innovation. And the most critical tool in attaining such alignments is collaboration. Procter and Gamble is one of the top 10 largest companies in the world, operating in over 80 countries so it is very important to attain successful innovation, to develop a cooperative and collaborative environment so as to encourage sharing of ideas and resources and avoid duplication of efforts. Better collaboration results in faster and more efficient brainstorming across locations, and faster generation and sharing of ideas and feedback, this in turn leads to savings in Research and Development costs. Collaboration helps maximize efficiency, encourage communication across locations and ultimately foster innovation. 2: How is......

Words: 843 - Pages: 4

Premium Essay

Procter & Gamble:

...Executive Summary In this report, I would state and analyze Procter and Gamble (P&G). In the beginning, P&G had just supply soap and candles to the Union armies, but now it has become to a global manufacturing, distribution, and marketing company focusing on providing branded products with superior quality and value. It provided over 300 brands reaching consumers in about 140 countries. P&G is focusing on provided fashion, high quality products for consumers. In order to satisfy consumers, P&G segment its consumers into different group, such as age, gender, ethnicity, material status, and low income consumers. With the segmentation, P&G could analyze what consumers’ demand. Human’s living standard is improved rapidly. People is getting to pay more attention on cleaning products to keep their bodies clean and looking good. Most of the people thought that beauty/feminine care products were just for females, but actually the number of men spending time in front of the mirror, grooming themselves had increased. With the growing trend for men to use beauty products, P&G started manufacturing more products for them and try to satisfy their needs. For example, they designed the products so that they would attract male consumers, by using dark colors for the packaging so that it looked more masculine. P&G is always try to satisfy needs of consumers. With a company which had more than 100 years history, P&G was strong in brand quality reputation, price competition, scales of......

Words: 3374 - Pages: 14

Premium Essay

Procter&Gamble

...Introduction Procter & Gamble (P&G) is one of the largest consumer goods company in the world. The company was first built in 1837 by William Procter and James Gamble. Later in 1890, P&G decided to stop being a private company and became a public company. Now, P&G is a worldwide company which has 126,000 employees and sub corporations in more than 80 countries. Their total revenue are 84.17billion in 2013. Their products range including Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care. P&G sell their products in more than 180 countries. Some of 50 Leadership Brands are the world’s most well-known household names. Industry Structure and Global Markets P&G is a global company which manufacture operations in more than 40 countries and sell products in more than 180 countries. Their developed market are North America, Western Europe and Japan. The developing markets includes Asia (excluding Japan), Central & Eastern Europe, Middle East & Africa and Latin America. Although markets outside U.S.A contribute a huge portion of total revenue, there are some risks cannot be ignored. For example, the local regulations, laws and trade barriers can affect transactions. And exchange rates may impact adversely on financial condition. It is also difficult to P&G to protect intellectual property and implement policy immediately. The major competitors of P&G are Johnson & Johnson, Kimberly-Clark Corporation and Unilever. They own a huge percentage......

Words: 1738 - Pages: 7

Free Essay

Procter and Gamble

...Background of the company Procter and Gamble was first founded in 1837 by William Procter and James Gamble. P&G carries about more or less than 50 top names products with the headquartered located in Cincinnati. Procter and Gamble is one of Americas largest company that sells multinational consumer goods. The product ranges varies from personal care, pet foods, diapers, cleaning supplies, medications and etc. The hundreds of different brand that P&G carries is available all around the world in more than 180 countries. In what line of business is the company? Procter and Gamble is considered as the personal products industry. However, in the personal products industry there are many different sectors and P&G is consider as the consumer goods sector. P&G is part of the consumer goods sector because of the different varieties of products that are carried. The ranger of product that are carried can go from beauty products to cleaning to supplies for the household. What is the nature of its products? The nature of Procter and Gamble’s products are beauty, home care, health, family care, grooming and baby care. What is the firm's distinctive competence? Procter and Gamble has five main core strengths that are being focused on in order to succeed in the consumer products industry. First core value of P&G is understanding the consumers, each year P&G does market research in more than 100 counties to see what will help them better serve their consumers and innovate......

Words: 625 - Pages: 3

Free Essay

Procter & Gamble

...1. Procter & Gamble’s business strategy is to maintain the popularity of its existing brand, through advertising and marketing; extend its brands by developing new products under those brands; and innovate and create new brands entirely from scratch. Collaboration and innovation are key to this business strategy. Collaboration between researchers, marketer, and mangers is critical to the success of Procter & Gamble. With the presence of collaboration software, P&G’s employees are able to participate in the process in real time. The presence of the collaboration software has allowed for more efficient flow of ideas and quicker decision making regarding the new products/brands. 2. Procter & Gamble is using collaboration systems to help execute the business model allowing multiple employees, in several locations and departments, to access the information quickly and to provide feedback instantly. The collaboration systems that P&G uses are: instant messaging – this allows the employee to have real time access to input from other employees, Unified communications – integrates voice transmission, data transmission, e-mail, instant messaging, and electronic conferencing, this allows the users to share calendars and mailboxes more efficiently. Web Conferencing with Live Meeting – allows people in different geographic locations to participate in real time in collaboration meetings. 3. The collaboration systems allow for P&G researchers to share the data they have collected on......

Words: 476 - Pages: 2

Premium Essay

Procter and Gamble

...Procter and Gamble | Strategic Management | | Table of Content Introduction 3 Company Overview 4 Mission and Vision 5 External Analysis 5 Industry analysis 7 Internal Analysis 8 Corporate level strategy 10 Critique and Recommendation 12 References 13 INTRODUCTION Procter and Gamble, more commonly known as P&G is a company, which offers consumer goods with an impressive portfolio. Gillette, Duracell, Tampax, Tide, Oral-B and Ariel are so many brands owned by the group that are part of the daily life of consumers. In fact its more than 300 leading brands and 50 leadership brands that the company owns to serve about 4.8 billion customers. This report will try to provide a strategic analysis of P&G thorough internal analysis of strengths and weaknesses including a financial analysis as well as an external analysis of firm opportunities and threats but also, an industry analysis using Porter’s five forces. Most of references came from the P&G website and information was sought from the Procter & Gamble Company Annual Reports but external references were also used as such article on web from American and French magazine. COMPANY OVERVIEW The company was born in the United States to Cincinnati in 1837. William Procter and James Gamble who were respectively, candle maker and soap maker created it. In 1954, Procter and Gamble......

Words: 2777 - Pages: 12

Premium Essay

Procter & Gamble

...Procter & Gamble Strategie: We are focused on strategies that we believe are right for the long- term health of the Company and will deliver total shareholder return in the top one-third of our peer group. The Company’s long-term financial targets are: * Grow organic sales 1% to 2% faster than market growth in the categories and geographies in which we compete, * Deliver earnings per share (EPS) growth of high single digits to low double digits, and * Generate free cash flow productivity of 90% or greater. In order to achieve these targets, we have created one over-arching strategy, inspired by our Purpose. At the heart of this strategy is innovating to win by touching and improving the lives of: * More Consumers. We are improving more consumers’ lives by innovating and expanding our product portfolio vertically, up and down value tiers. We continue to successfully develop and launch premium innovations focused on improving consumer value through enhanced performance. We are also serving consumers who are more price conscious through lower-priced offerings with superior performance versus other mid-tier and value-tier alternatives. * In More Parts of the World. We are improving lives in more parts of the world by innovating and expanding our existing product portfolio geographically into new markets. We are increasing our presence in developing markets and increasing the amount of sales from these markets by focusing on......

Words: 2269 - Pages: 10

Premium Essay

Managing with Analytics at Proctor & Gamble

...Megan Morales Madeline Row Mgmt 450.003 Case Brief Managing with Analytics at Procter & Gamble Overview Procter & Gamble has always maintained their brand position as a widely renowned and successful international company. That success has been attributed to many things over the years, including the information decision solutions provided through their core analytics team. With the passionate leadership exhibited by the company’s CEO, Bob McDonald, and the ambitious and visionary efforts of CIO Passerini, P&G was able to secure a clear competitive advantage through the development of their analytics department. In this case discussion, a brief overview of the company’s efforts to transform their IT department as well as specific actions and results will be discussed, in order to identify where the company is positioned now, and where they should be headed. This case explains how the leading soap and candle company, Procter & Gamble, dominated the detergent market by implementing up-to-date analytics into the decision making process in it’s operations. The development team led by Group President and Chief Information Officer Filippo Passerini, helped create a system of tools designed to collect data and aid in statistical forecasts. The data collected gave up-to-date performance information on specific brands, retailers and individual stores. This information became available to all leading executives at the touch of button, compiled into graphs and charts......

Words: 1706 - Pages: 7

Premium Essay

Managing with Analytics at Procter

...Managing with analytics at Procter & Gamble Case analysis – Strategy in Action ------------------------------------------------- Camilo Ruano Case main issues: * Recently the company had introduced a more concentrated, also called compacted, powder laundry detergent in Target® stores at the end of February 2011 and results from the first two months were better than anyone had expected. * Over the previous 8 years, Filippo Passerini, Group President of P&G’s Global Business Services (GBS) organization and Chief Information Officer (CIO), had led the development of a series of systems and processes that enabled and emphasized the use of up-to-date data and advanced analytics to drive decision making throughout the company. * Data collected by P&G was seamlessly integrated so that Torres and Wright could simply click on higher level data to drill down and view performance by brand, initiative, retailer, and, in some cases, individual store * Compacted detergents were set to be introduced throughout the rest of North America in the coming months and Torres was cautiously optimistic about the impact they would have on the overall market and on P&G sales, Torres wondered whether he should override the statistical models and increase the forecasts. * The company marketed approximately 300 brands, 25 of which generated over $1 billion in annual sales, including Always®, Bounty®, Charmin®, Crest®, Duracell®, Gillette®, Head & Shoulders®,......

Words: 779 - Pages: 4

Free Essay

Procter and Gamble

..."The consumer is boss," Procter & Gamble Chief Executive A. G. Lafley says simply of the business mantra he endlessly repeated to his employees. These four words speak volumes about his keep-it-simple strategy for leading the world's largest consumer products company: Find out what the consumer wants, and give it to her. (Drucker: What the people in the business think they know about customer and market is more likely to be wrong than right. There is only one person who really knows: the customer. Only by asking the customer, by watching him, by trying to understand his behavior can one find out who he is, what he does, how he buys, how he uses what he buys, what he expects, what he values, and so on, pg. 113) (http://www.usnews.com/usnews/news/articles/061022/30lafley_print.htm) There are two types of research that Procter and Gamble (P&G) employed to gather information from consumers on their needs and product feedback: qualitative and quantitative. Qualitative Research Qualitative research is used to generate ideas. It involves small groups of people, and requires in-depth interaction between the researcher and the participants. Focus Group Discussions: A relatively small group of people (6 - 12) is brought together and asked to talk about certain topics for exploring ideas and making initial evaluations. The advantage of the group interaction is that people can build on one another's ideas and comments. ......

Words: 882 - Pages: 4

Premium Essay

Procter & Gamble

...Procter & Gamble First of all, an animal is not a human being, so they will respond differently than us humans. Even if there were bad reactions from a drug taken by the animals, that doesn’t mean it is safe for humans to consume. You can look up many examples of drugs that have been recalled because of the dangerous effects it had on humans, even after animal testing. These experiment and testing situations can make animals suffer severely every year. There are many strict guidelines and standards set by PETA that are supposed to make sure that animals are treated well and to reduce the suffering, but still there are many companies that are violating these rules and still abusing animals. What it all comes down to is ethics and your own ethical behavior. To me, I personally believe that animal testing is unethical behavior and is just plain cruel. Also PETA’s members and supporters are increasing significantly every year. More people are standing up and voicing their opinion against animal testing. With more people acting against animal testing, this is raising the ethical intensity to a new level. Mope people can lead to larger negative consequences, with a clear agreement that the decision to keep animal testing will lead to larger negative consequences and a high ethical intensity. Also you must look at what is socially responsible and who you are to be socially responsible to. Many economists and financial analysts still argue that organizations are only to......

Words: 489 - Pages: 2