INTRODUCTION Procterand Gamble (P&G) was established in 1837 and is one of the biggest consumergood companies in the world with its market in about 180 countries located allaround the world.
Originated in the United States of America, it has itscurrent headquarters in Cincinnati, Ohio. It has its presence in 10 consumer product categories such as beauty,baby, personal care, health, fabric, home etc. It merchandises these productthrough retail, wholesale and e-commerce. The mission statement ofProcter and Gamble states that the company wants to improve the lives of itsend users by providing superior quality products and wants to become theone-stop shop for major health and personal care market all around the globe. P&G has over 95,000employees and an annual turnover of 65.29 billion USD (2016) This report consists of theanalysis of the company by various economic tools, macro and micro economicdata. The study will be done on the company profile, its pace of growth,competitors, how the company is reaching is target customers, various supplyand demand shifts, strong market share, as well as the presence in micro andmacro environment in the origin country i.
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e. United States of America. FMCG SECTOR (USA) Fast-moving consumer goodsare those goods, which lay off the shelves very quickly; these are theday-to-day use products that include durable as well as non-durable products. The FMCG sector in USA ishuge, with about a population of 323 million people in the country there areabout 40,000 full size stores that generate enough revenue to contributepositively to the country’s GDP.
Procterand Gamble, leading FMCG company owns 45% of the market share as on Q’4 2017 inthe country. Purposed -Inspired MacroStrategy for Growth P&G is adopting a morefocused technique towards it succeeding opportunities. The company wants tofocus on its core competencies by narrowing down its business. It has recentlydivested from their pharmaceutical business to take better control of theexisting and more profitable business. The divestment move will allow P&Gto focus more heavily on 43 billion that generate 85% of the total accountedrevenue.
P&G –Monopolistic Competition Monopolistic Competition isthe most common type of market structure present in the economy. Due to itsflexible variable, it is relatively easy and less cumbersome to start abusiness in a monopolistic environment. There are a lot of similaritiesbetween the firms operation in Monopolistic Competition in terms of types ofproducts, functions of the product, shape, color, use etc. but it can bedifferentiation by few factors: Dominance: FMCG industry hasthousands of firms selling products with little differentiation but P&G hasdominated the US market amongst all and has been the leading brands for all itsconsumer product categories.
Barrier to Entry- While thebarriers of entry is high in an oligopolistic market, the FMCG industry barrierare not very high.