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Innovation and Sustainable Business Development

Executive Summary of Procter and Gamble Analysis

This study aims at analysing an actual challenge of business alongside, the study dealt with numerous facets of creativity. The concern with the current supply chain was described as Procter and Gamble. Besides, the revolutionary big data definition will more efficiently boost the whole supply chain. The study showed the role and advantages of emerging technology. On the other hand, the importance of 4.0 technologies in supply chain management is also forecasted by elaborating business canvas model. Execution of innovative technologies for value proposition and financial capture is also described in this report to deliver in-depth data about the business renovation and gaining of trust and confidence from customers.

Table of Contents


Business Model Description.

Value Proposition Development

Business operations development

Supply chain development

Financial value capture.

Competitive advantage and Strategic fit

Identification and assessment of uncertainties.

Selection of innovation tools and techniques.

Candid and critical self-analysis.

Conclusion and recommendation.


Introduction to Procter and Gamble Analysis

Strong business infrastructure and its flourishment depend on a variety of factors. Among them, one of the most important is customer satisfaction. For that, the company must provide a promise of value for their products. To satisfy customers the company's product has to be accurate and provide all the benefits that its competing companies cannot, which is termed Value proposition. Thus, it plays a key role in marketing a particular company's product. Other factors that go hand in hand are the development of a valuable business model and follow up-to-date business operations to meet the customer's needs. The company should have a progressive supply chain with innovative tools and techniques to bring their best out in the market. Procter and Gamble (P&G) company is chosen for further study of this marketing process.

Business Model Description


· All the supplementary brands such as Olay, Old spice etc.

· Investors and contract manufacturers

· Advertisement agencies

· Retailers, distributors and suppliers


· Marketing of fashion products

· Advertisement of products

· Research and development

· Designing and product modification through modern technologies

· International expansion of business products


· Omnichannel business operation

· Membership club store is offered

· E-commerce stores are well-designed for attracting customers


· Provision of personal hygiene and care products are huge

· All the items are stored massively within stores

· This is one of the leading brands of women products

· Quality management of all products are high in nature


· More than 20 manufacturing stores ae in the USA

· It operates more than 40 countries with 100s of manufacturing stores

· High distribution network

· The innovative partnership helps to encourage more than 95% of company profit


· High brand awareness

· Better customer experience

· The reputation of this organisation is high

· Coupons and discounts are given for customers


· The unique cost structure is followed in logistics and supply chain management

· Contract manufacturing and marketing has a separate cost structure

· Manufacturing cost is low

· The contact manufacturing process is acquired


· A massive market is targeted by this organisation

· Different types of products are offered for adult men, women, babies and aged people


· Sales of goods are responsible for revenue generation

· Licensing of products is another scheme to gain more profit within the target market

Table 1: Business canvas model

Value Proposition Development

P&G is providing service to people for over 180 years through their varied products. They have laid their target, first on value proposition and then focus on actual R&D and product development. The company produces products that serve all types of customers, which includes some of the World's most well-known and respected consumer brands. Value co-creation within P & G can be developed with the help of artificial intelligence and security in the job process can also be ensured (Sheth, 2019). They have prevailed over the company's organizational orthodoxy in creating a brand of feminine products keeping in mind their utmost requirements. The pillars on which the value proposition of P&G stands is integrity, leadership, ownership, passion for winning and trust.

The company's motto is, to be honest, and straightforward and operate following the spirit of the law. They also take care that the values and principles of the company are preserved in all of their actions. Every workforce act as a leader in their responsibility zone so that they can deliver promising leadership results (Maclean et al. 2020). The employees treat the company's resources as their own to provide long term success and maintain the highest rank in the market. The company always maintains the trust that has linked colleagues, customers and consumers altogether for more than a century. The company has started using 'Reverse Innovation' strategy so that they can unlock opportunities using such innovations.

Business Operations Development

To address the diverse requirements of the industry in the global market for foods and beverages products, the approach of the Procter & Gamble Industry is structured to boost productivity and performance. Successful Policy execution facilitates highly effective processes. Centred, for example, on greater efficiency, management accountants of Procter & Gamble might impose higher guidelines on manufacturing capacity. These factors tend to sustain the company's global activities. Present OM methods and techniques work to accomplish the corporate aims of Procter & Gamble (Ampe-N’DA et al. 2020). In response to changes in the P&G industry and business variables, improvements are nevertheless necessary. Such changes should balance factors like consumer demand and technical innovations to sustain high profitability and achieve business growth targets as expressed in the corporate mission and vision statements of Procter & Gamble.

Supply Chain Development

Application of 4.0 technologies can be a good option for supply chain management development for P & G and this will help to track real-time data from customers end. The Supply Chain 4.0 of consumer products notes that "advanced forecasting systems" have been updated in the emphasis of supply chain management, more on the current pressure from stakeholders allowed from automated predictive projections and integrative organisational preparation. This demand-driven model allows producers to amend manufacturing to shipment network architecture, in which sensing and reacting to the requirement as rapidly as feasible. To satisfy this need, P&G incorporated data-driven operating output flows that increased flexibility and efficiency substantially. As a result, a more comprehensive real-time control of the entirety of the industry is now being the digital supply chain parts that used to be hidden specific moves. By enhancing vision in real-time where products are going, Dealer Link dramatically decreases environment-wide stock levels and the "deadhead," idle lorries by nearly 15% (In.pg.com, 2020).

Financial Value Capture

Tax Increment Financing (TIF) can be followed by P & G to gain more profit in a competitive environment and accountability in a business process can also be developed. Tax rises (TIF) are a method used by city councils to promote economic activity in a geographically-specific area. TIFs are used to fund redevelopment programmes or other ventures, leveraging current growth anticipations of potential tax collections. Tax increment support, which means the TIF, subsidise businesses to support the construction of a city or, less sometimes, on a building site by repaying or diverting parts of their income. In the area of a new building, TIF typically helps pay for enhancements to the environment (streets, sewers, parking lots). As the valuation of the land is rising by construction, there are more property taxes in the TIF district (In.pg.com, 2020). There was an error. But TIFs will cause challenges for local councils in the long run. In the last 20 to 30 years, they may have used real estate taxes for development projects.

Competitive Advantage and Strategic Fit

As a generic technique for strategic advantage, Procter & Gamble implements distinction. Differentiating the company and its goods is designed to draw potential buyers. In this scenario, Procter & Gamble underlines the consumer products' consistency and worth. The novelty has P&G significance for decades. P&G was established in 1837, which implies that the business has taken a position in the region for 180 years. There was an error to implement proper technology due to unskilled workforce (Reza, 2020). At least 400 million U.S. dollars per year was spent on fundamental market studies to investigate breakthrough prospects. Procter & Gamble Grooming as well as Health Care Shareholders agree its comparatively high P / E ratio is higher than most companies in the market rated. Owners are optimistic about the future. The policy on product differentiation describes loyal consumers who pay a brand hefty premium because they genuinely believe in the product (in.pg.com, 2020).

Identification and Assessment of Uncertainties

  • Robotics is a suitable method to identify threats in the value proposition for P & G and this can help to provide greater insight into the business process of this global firm (Hughes &O'Regan,2018).
  • Smart-connected product technology will be a suitable approach to detect whether the productivity rate of this company is sustainable or not (Lucà, 2016).
  • Health-care technology is provided for P & G and this can be helpful to ensure employee safety and development within this organisation (Weissbrod, 2019).
  • An internal management system can be an uncertain factor for P & G even after the implications of artificial intelligence and future development in business management can be reduced because of this (Maclean et al. 2020).
  • Blockchain technology is a suitable aspect for understanding contingencies in the supply chain and this systematic review can be helpful to communicate properly with all customers (Sheth, 2019).

Selection of Innovation Tools and Techniques

  • Value proposition canvas can be selected as an effective tool to detect issues in operation management of P & G and this can be helpful to eliminate the contingency in an effective manner (Fjeldstad& Snow,2018).
  • Business canvas model is another tool that has to be followed to detect different elements of business propagation and future development of resources and channels can also be acquired through this (Naiman, 2019).
  • High-level product specification is another important tool for P & G that in turn helps to understand market trends of this organisation and determination of accessible market can also be acquired (Gebauer, Saul &Haldimann,2017).
  • Analysis of competitive position by using virtual reality can help to detect market position and analysis of the competitive market can also be possible in a correct way (Prange&Schlegelmilch,2018).
  • Estimation of customer lifetime value is a modern technique of business innovation and gaining of marginal profit can also be acquired through this by approaching correct customers (Urbinati et al. 2019).

Candid and Critical Self-Analysis

I discovered that I should find an efficient solution to the issue in this study. I discovered that to solve a big challenge, a comprehensive and efficient approach was necessary. I see judgement and delicate matter on the other side as my liability. I do not draw reasonable decisions because of a lack of preparation. Training and learning, I suppose, develop human talents and abilities. However, continual contemplation helps a person to develop the skills and limitations required. The research gave me the chance to develop the potential for creative thinking. During this study, I became conscious that unique interactions are required to enhance the overall skills and creative abilities. I've been interested in brainstorming throughout this process, as I feel it helps to create fresh concepts acceptably. The confidence value has been very helpful in increasing the capacity and expertise to build professional creativity and solve big challenges.

Conclusion and Recommendation on Procter and Gamble Analysis


From the general review, many problems in the supply chain have been found for the organisation. Also, the organisation should concentrate its efforts on analysing problems that affect supply quality. Moreover, the enhancement of the current activity requires ingenuity. Big data was also found to play a very significant role in optimising the overall supply chain. The business can achieve a strategic edge most successfully with the support of a robust supply chain. To maintain strong competition in the present climate, the company must concentrate on producing profitable goods and services to obtain a significant market share. Procter and Gamble will deliver the most competitive goods and services with the aid of successful technologies. The study shows the function and strengths of big data to offer a business different significant value.


Recommendation for value proportion is given below for P & G Company by which business equity can be acquired in a greater manner with strategic fit in near future.

  • It can be recommended for P & G to understand the demands of all customers and this can help them to provide a better insight of business process and maintenance of equity in a business process can also be acquired (Weissbrod, 2019).
  • It can be recommended for P & G to implement proper business communication tool for developing a strategic view of customer handling and blockchain technology will be effective in this case (Lucà, 2016).
  • It can be suggested for P & G to develop individual customer value and big data can help in better community involvement at any consequences (Hughes &O'Regan, 2018).
  • It can be recommended for P & G to use artificial intelligence on a daily scale for the business upbringing and it will provide clear insight about business and security for each process can also be provided (Mohanty, 2017).

References for Procter and Gamble Analysis

Ampe-N’DA, L. D., Payne, B. A., Spake, R. I., Sharpe, S., & Arora, A. (2020). Buyer-supplier relationships: Role of collaboration, sustainability, and technology. In Sustainable Innovation (pp. 47-58). Palgrave Pivot, Cham. Retrieved from: http://dln.jaipuria.ac.in:8080/jspui/bitstream/123456789/3985/1/Sustainable%20Innovation%20Trends%20In%20Marketing%20And%20Management%20by%20Anshu%20Saxena%20Arora%2C%20Sabine%20Bacouel-Jentjens%2C%20Mohamad%20Sepehri%2C%20Amit%20Arora.pdf#page=69

Fjeldstad, Ø. D., & Snow, C. C. (2018). Business models and organization design. Long Range Planning, 51(1), 32-39. Retrieved from: https://fardapaper.ir/mohavaha/uploads/2018/04/Fardapaper-Business-models-and-organization-design.pdf

Gebauer, H., Saul, C. J., &Haldimann, M. (2017). Business model innovation in base of the pyramid markets. Journal of Business Strategy. Retrieved from: https://www.diva-portal.org/smash/record.jsf?pid=diva2:1317554

Hughes, T., &O'Regan, N. (2018). Branding in a digital world: Discussion based on an interview with Paul Geddes CEO of Direct Line Group. The Marketing Review, 18(1), 41-53. Retrieved from: https://uwe-repository.worktribe.com/output/870915/branding-in-a-digital-world-discussion-based-on-an-interview-with-paul-geddes-ceo-of-direct-line-group

Lucà, F. (2016). Successful Sustainability Strategy: Procter & Gamble Case. Retrieved from: https://pdfs.semanticscholar.org/8705/8e462f6e32a1e79b4d700736520d88f5029d.pdf

Maclean, M., Harvey, C., Golant, B. D., &Sillince, J. A. (2020). The role of innovation narratives in accomplishing organizational ambidexterity. Strategic Organization, 1476127019897234. Retrieved from: https://www.researchgate.net/profile/Mairi_Maclean2/publication/338716638_The_role_of_innovation_narratives_in_accomplishing_organizational_ambidexterity/links/5e270050299bf15216707b5f/The-role-of-innovation-narratives-in-accomplishing-organizational-ambidexterity.pdf

Mohanty, K. (2017). Understanding the role of service and value co-creation in sales functions. Parikalpana: KIIT Journal of Management, 13(2), 47-57. Retrieved from: https://www.academia.edu/download/56178639/Parikalpana-13ii.pdf#page=53

Naiman, L. (2019). Design thinking as a strategy for innovation. The European Business Review, June, https://www. europeanbusinessreview. com/designthinking-as-a-strategy-for-innovation. Retrieved from: https://www.creativityatwork.com/design-thinking-strategy-for-innovation/

Prange, C., &Schlegelmilch, B. B. (2018). Managing innovation dilemmas: The cube solution. Business Horizons, 61(2), 309-322. Retrieved from: https://www.researchgate.net/profile/Christiane_Prange/publication/322478183_Prange_Schlegelmilch_2017/data/5a5a902a4585154502748c5a/Prange-Schlegelmilch-2017.pdf

Reza, M. H. (2020). Marketing Strategy and Sustainable Plan of Unilever. Retrieved from: https://www.researchgate.net/profile/Manjurul_Reza/publication/343539636_Marketing_Strategy_and_Sustainable_Plan_of_Unilever/links/5f2fec3a92851cd302ea6460/Marketing-Strategy-and-Sustainable-Plan-of-Unilever.pdf

Sheth, J. N. (2019). Customer value propositions: Value co-creation. Industrial Marketing Management. Retrieved from: https://www.researchgate.net/profile/Jagdish_Sheth/publication/337437112_Customer_value_propositions_Value_co-creation/links/5e138c1b92851c8364b39d65/Customer-value-propositions-Value-co-creation.pdf

Urbinati, A., Bogers, M., Chiesa, V., & Frattini, F. (2019). Creating and capturing value from Big Data: A multiple-case study analysis of provider companies. Technovation, 84, 21-36. Retrieved from: https://re.public.polimi.it/bitstream/11311/1079326/4/Paper%20Big%20Data_FINAL_TECH%202051.pdf

Weissbrod, I. (2019). Experimentation for sustainable innovation. In Innovation for Sustainability (pp. 335-352). Palgrave Macmillan, Cham. Retrieved from: https://www.researchgate.net/profile/Ilka_Weissbrod/publication/328428866_Experimentation_for_sustainable_innovation/links/5e60aae24585152ce80921b2/Experimentation-for-sustainable-innovation.pdf


In.pg.com, (2020). About, Retrieved from: www.in.pg.com. [Retrieved on: 28.09.2020]

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