Since P&G products were classified as a Fast Moving Consumer Goods (FMCGs), so there will have many potential risk might be faced by P&G in the future. Below are some of the potential risk P&G companies might face:
a. New market target segments
Low market growth was the result of developed market had matured which was stated on the Boston Consulting Group’s (BCG) Matrix stud. P&G currently is experiencing low rate of market growth and high relative market share which was in the ‘Cash Cow’ status. So, they have to take advantages on it in order to build a new markets. Problems like more precisely, thoroughly and deeply in new and cheaper products line to supply for the new market segments as there are diversify of people with various background …show more content…
For example Johnson & Johnson, Unilever and Kimberly-Clark are the competitor with huge loyal consumer. Some unbranded competition occurs in India due to governments supporting local brands and held many patriotic campaign to increase the sales of local product in the local market. Some foreign countries and the people will support their own local products while the retailer or seller may increase the price of foreign product. The company have to strive in order to present a compelling value alternative in different categories and match innovation immediately. Therefore, innovative development products and price are needed. Aggressive innovation by L’Oreal in beauty category could weaken the market share and increase in competitive …show more content…
A few years ago, P&G was forced to increase prices to reflect the jump in commodity prices. So, this situation is also possible to happen in the future when the economy instability. Commodity prices continuously rising might affect the prices of the P&G products and might affect the buyers reduce demand for P&G goods. Therefore, if economy fluctuation occur in future, P&G can take another alternative to replace the materials that is less sensitive to commodity costs or can introduce their products in smaller-sized packages to overcome this
a. New market target segments
Low market growth was the result of developed market had matured which was stated on the Boston Consulting Group’s (BCG) Matrix stud. P&G currently is experiencing low rate of market growth and high relative market share which was in the ‘Cash Cow’ status. So, they have to take advantages on it in order to build a new markets. Problems like more precisely, thoroughly and deeply in new and cheaper products line to supply for the new market segments as there are diversify of people with various background …show more content…
For example Johnson & Johnson, Unilever and Kimberly-Clark are the competitor with huge loyal consumer. Some unbranded competition occurs in India due to governments supporting local brands and held many patriotic campaign to increase the sales of local product in the local market. Some foreign countries and the people will support their own local products while the retailer or seller may increase the price of foreign product. The company have to strive in order to present a compelling value alternative in different categories and match innovation immediately. Therefore, innovative development products and price are needed. Aggressive innovation by L’Oreal in beauty category could weaken the market share and increase in competitive …show more content…
A few years ago, P&G was forced to increase prices to reflect the jump in commodity prices. So, this situation is also possible to happen in the future when the economy instability. Commodity prices continuously rising might affect the prices of the P&G products and might affect the buyers reduce demand for P&G goods. Therefore, if economy fluctuation occur in future, P&G can take another alternative to replace the materials that is less sensitive to commodity costs or can introduce their products in smaller-sized packages to overcome this