Introduction
Procter and Gamble (P&G) Company was found in 1837 by William Procter and James Gamble as a maker of soap and candle. Procter and Gamble (P&G) main office in Cincinnati, Ohio. These two creators were moved from England and Ireland. The main purpose of the company is to produce consumer goods including beauty, household, health and wellness products. P&G was one of the first companies that established brand management by setting up marketing team for each brand and leave them to compete against each other. Also, first company advertises nationally. P&G built its brand by using innovation marketing techniques. For example 1961 introduced the first disposable diaper, Pampers. Now a day, the company has one of the strongest collections of trusted, quality, leadership brands, including Pampers, Tide, Ariel, Always, Whisper, Pantene, Folgers, Charmin, Downy, Lenor, Iams, Crest, Oral-B, Actonel, Duracell, Olay, Head & Shoulders, Wella, Gillette, and Braun.
Problems
Before Lafely takeover the P&G was facing many problems. Problems with the strategy. P&G trying to do many things with no clear idea about their core business. P&G trying to invest in too many things which lead to over- invested and over-built capacity. Problems with the Organization, Poor service level with customers. P&G don’t concern about customer satisfaction. Which lead to high cost, weakening pricing power guide to prices negotiate from big retailer such as Wal-Mart. Problems with Structure, hired too many people. Lack of communication between employees, customers and retailers. With all of these problems in 1990s the organization sales and shares went down.
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