Organizational Change Of Procter And Gamble Marketing Essay

organisational Change Of Procter And Gamble Marketing EssayIn these ever changing and highly competitive trades, there has been a considerable amount of research carried out into new product development and introduction. A winning new product launch is believed by m both to be the recipe to clientele or firm growth and profitability depending on their ability to let out the needs of customers and to quickly create products that meet these needs and can be produced at a low cost.The next step is to analyse and develop the commercialise plan. This is done by reviewing the 4Ps product matrix as a way to finding a unique position from which to create a competitive vantage for the product. Also, review the SWOT with Clients and utilize SMART technique to develop the written, working planExecuting the plan and launching the product. This includes developing collateral materials, begin transcription discussion with the first stage in the ideal channel, have enough discussion with as ma ny different entities with a view to uncovering any previously undiscovered real objections. Review and improve plan as necessary with the new training, repeat until sold, and explore link extensions with new partners.It should be renowned that new product development and introduction plan is the first stage in the ware Life Cycle. It is created in stages, giving logical break points to pressure the decision to proceed or non based on what occurs at each stage.Aim and ObjectiveThe goal of this research paper is to present in a clear and detail way how the development and launch of household c be products by Procter and Gamble (PG) Company is aimed at bringing together the marketing, design, dodge and manufacturing functions of the social club and similarly to identify the overall profitability of the product.Companys Overview and annalsWith its headquarters in Cincinnati, Ohio, Procter and Gamble (PG) Limited is one of the worlds leading giants when it comes to making househ old products. The company is engaged in producing beauty, health, fabric, home, baby, family, and personal share products.With commitments to remain as the leader in its market, PG is one of the most aggressive marketers and is the largest advertiser in the world. Many innovations that are now common practices in corporate America including extensive market research, the brand-management system, and employee profit-sharing schemes were first introduced at Procter and Gamble.Procter and Gamble Limited has an employee base of 138,000 or more(prenominal) and operates in nearly 80 countries around the world and markets more than 300 brands in over 180 countries more than half of the companys revenues are generated overseas. The company recorded revenues of $83,503 trillion during FY2008, an increase of 9.2% over FY2007. The operating profit of the company was $17.083 million during FY2008, an increase of 10.6% over FY2007. The net profit was $12.075 million in FY2008, an increase of 16.8% over FY2007.HistoryProcter and Gamble Company (PG) was established as a joint partnership caper by William Procter and James Gamble, two immigrants from United Kingdom in 1837 with head-office in Cincinnati, Ohio. By 1890, PG was selling more than 30 different types of soap, including Ivory. In 1915, the company built a manufacturing plant in Canada, its first outside the U.S. During 1917-1918, PG established the chemicals constituent which function was to formalize research procedures and develop new products. Then in the 1920s the company discontinued the manufacturing of candles.KEY DATES AND ACQUISITIONSc. 1851 The Companys famous moon-and-star symbol is created.1878 PG introduces White Soap, before long renamed Ivory.1885 Introducing Innovative Employee Benefits.1890 The company was incorporated as Procter and Gamble Company.1911 The debut of Crisco, the first all-vegetable shortening.1931 Brand management system is formally introduced.1946 PG introduces Tide laundry detergent.1955 Crest toothpaste makes its debut.1957 Charmin report Company is acquired.1961 Test marketing of Pampers disposal diapers begins1963 Company acquires the Folgers coffee brand.1982 Norwich-Eaton Pharmaceuticals is acquired1985 PG purchases Richardson-Vicks Company, owner of the Vicks, NyQuil, and Oil of Olay brand1988 Noxell Corporation, maker of Noxema products and Cover Girl cosmetics, is acquired1990 PG expands its presence in the manful personal care market by acquiring Shultons Old Spice Product line.1991 Max Factor and Betrix cosmetics and fragrance lines are bought from Revlon, Inc.1992 Pantene Pro-V shampoo is introduced.1993 Major restructuring is launched, involving 13,000 furrow cuts and 30 plant closures.1994 Company enters the European tissue and towel market with the acquisition of the Germany-based company, Schickedanz.1997 Company acquires Tambrands, Inc., maker of Tampax line of tampons1998 Organization 2005 restructuring is launched.1999 Premium pet feed maker Iams Company is purchased.2001 PG acquires the Clairol hair-care business from Bristol-Myers Squibb Company.2002 Jif peanut butter and Crisco shortening brands are divested.2003 Company acquires a controlling interest in German hair-care firm Wella AG.By 2004, the company announced its agreement to acquire the commercial business of Grupo Vita in Spain. In the same year, PG finalized the sale of its juice drink brands, Sunny Delight and Punica, to JW Childs Associates LP, a private-equity firm in Boston. This further paring of the food business left PG with just two main food brands, Pringles and Folgers. The snacks and beverages unit accounted for only 7% of the companys primitive revenues in fiscal 2004. At the beginning of fiscal 2005 PG realigned its business units, shifting it five previous units into three global beauty care global health, baby, and family care and global household care. Pringles and Folgers were placed within the latter unit.During the fiscal 20 04, sales surged 19%, surpassing the $50 billion mark for the first time. Net earning also jumped 25%, hitting $6.48 billion mark. The newly invigorated company continued its streak of paying dividends without interruption since its 1890 incorporation, and it also increased its dividends for the 48th straight year. And in July 2005, a proposed merger with the Gillette Company, a leader in male grooming product was completed and cleared by the European Commission.Literature ReviewProduct planning should be considered as a key driver for the eventual manufacturing and development of a successful new product. It can mean both organizational entity and the process of planning the product which can involve many more divisions in a company (Allen, 1993). The consistent investment in consumer and market research, innovation, brand-building and go-to-market policies has substantially helped Procter and Gamble Company achieve success in its new product development strategy and also achiev e considerable market shares.This case continues with an shrewdness into PGs product innovations that have been a success among the diverse segments of the global market. The company is organized into three Global Business Units (GBUs) and a Global Operations stem for producing commercially viable products. The three GBUs are beauty, health and well- creation, and household care. The Global Operations group consists of the Market discipline Organization (MDO) and Global Business serve well (GBS).Research MethodologyThe research methodology will be based on the qualitative analysis, i.e. on the presentation and the analysis of a series of findings retrieved by researchers in the literature (Internet sites, online newspapers, periodicals, books and other academic publications, journals). The presentation of appropriate primary sources (statistical indexes, graphs, and financial data) will be also used in suppose to stomach the views of the literature. In other words, the researc h will be mainly secondary mostly because of the objectivity of data involved. More specifically, the use of primary research would not be used for the purpose of this research.Chapter 1 Organizational Culture and Structure1.0 somatic StructureProcter and Gamble organization structure is an important part of their efficacy to grow. It combines the global scale benefits of a $79 billion global company with a local focus to win with consumers and retail customers in each state of matter where PG products are sold. PG organizational structure comprise three Global Business Units (GBUs), Global Operations, Global Business go (GBS) and Corporate Functions (CF)Fig 1 foursome Pillars of Corporate Structure of PGGlobal Business Units (GBUs) focus solely on consumers, brands and competitors around the world. They are responsible for the innovation pipeline, profitability and shareholder returns from their businesses.Market ontogeny Organizations (MDOs) are charged with knowing consumer s and retailers in each market where PG competes and integrating the innovations flowing from the GBUs into business plans that work in each country.Global Business Services (GBS) utilizes PG talent and expert partners to provide best-in-class business support services at the lowest possible costs to leverage PGs scale for a winning advantage.Corporate Functions ensure ongoing functional innovation and capability improvement.Procter and Gamble has adopted an organizational structure of innovation that allows them to launch innovation faster. The company has taken sevensome key steps in rules of order to structure their innovation management and organization for faster innovation.Delegating decisions to innovative teams Decisions are delegated to the innovative teams in order to avoid delays and enable fast innovation independent of top managements.Integrating the Research and Development division into the Business Unit Integrating majority of the RD into the business unit makes i nnovation management more effective and fosters the collaboration with the other departments of the business units and the orientation towards the customers in lieu of an exclusive focus on the technology.Co-Location of Teams Department By locating all innovative team members and relevant departments of a division in the same place, the company can make sure that information flows without distortion.Central transformation Team Procter and Gamble has an organization of central innovation team at the corporate level which goes by the name Future Works. At the business unit level its central innovation teams belong to the New Business Development Organization.Central Innovation Fund PG has established the PG Corporate Innovation Fund (CIF) for the purpose of financing the development of disruptive innovation and of new business. Crest Whitestrips were, for instance, funded by the CIF.External Interface for Open Innovation In order to execute Open Innovation and to channel external sol utions and ideas into the company, PG innovation management needs an effective external interface. The company has established its External Business Development Organization and its Connect Develop Organization. The mission of these departments is to realize the innovation potential, which slumbers in the outside world, via the development of external networks.Merger Acquisition Department The mission of this department is to acquire innovative companies with a view of strengthening it innovation management and be in the market-place with innovations much faster.1.1 Corporate CultureProcter and Gamble organizational socialization is based on the guiding foundation of Purpose, Values and Principles (PVP)PurposeTo provide branded products and services of superior quality and value that would touch and improve the lives of their consumers and in return, the consumers would reward PG with leadership sales, profit and value creation, and allowing their people, shareholder and the comm unities in which they live and work to prosper.ValuesIntegrityLeadershipOwnershipPassion for winning presumptionPrinciplesShow respect for all individualThe interest of the company and the individual are inseparableStrategically focused in their workInnovation being the cornerstone of their successValue Personal MasterySeek to be the bestExternally focusedMutual interdependency is a way of life.Organizational Change of Procter and GambleA common aspect of any company whether small, medium or large scale is the structural and organizational diversitys. An organization undergoes lurch in order to ensure the products and services that would be given to customers are excellent, as well as, the performance of the employee within the company. Procter and Gamble is one the company that utilises change in organization in order to become one of the most well-known product producers in the whole world.Organization 2005 is aimed at changing PGs goal from a conservative, slow-moving, bureauc ratic behemoth to that of a modern, fast-moving Internet-savvy organization. PG wants to make faster and better decisions, cut red tape, save cost out of systems and procedures, fuel innovation, set more aggressive sales goals and nearly double its revenue. The catalyst for all this change is Information Technology.Finally, PG wants to abandon its legacy of secrecy. Its new spirit of openness is most unornamented on the Internet.SWOT AnalysisOne strategic management tool that PG uses to stay ahead of its competition is the effective and efficient utilization of SWOT analysis. This involves specifying the goals and objectives of the business as well as identifying the internal and external factors that are favorable and unfavorable in achieving the goals and objectivesStrengthsWeaknesses* Strong focus on Research and Development.* Leading market position* Diversified product portfolio* Strong brand portfolio.* Increasing instances of product recalls* Dependent on Wal-Mart Stores for majorityof its revenueOpportunitiesThreats