P & G Sustainable Initiatives

P & G is a well-established brand in India and operates in the FMCG category.

Under the FMCG category its distribution channels have been reaching every
corner of the nation. Apart from enriching the lives of the consumers through its
innovative products, P & G has considered the sustainability initiative as core
part of its business strategy.
Not only is P & G reaching out to remotest villages of the country through its
Shiksha mission, it has stated initiatives which takes environment into holistic
view.

Sustainability Initiative
One of the initives P & G has recently taken is the compact packaging of its
detergent products such as Tide.

Assessment on the sustainability Initiative

For the successful running of any organisation the interest of various
stakeholders needs to be taken into consideration.
The various stake holders that need to be taken into consideration for P & G
include
Suppliers
Employees
Distributors & Retailers
Customers
Environment
Generally companies takes into consideration the first four stakeholders into
consideration, however they tend to ignore the Environment.
However, taking environment sustainability into consideration can be molded
into the corporate strategy of the organisation.
The customer segment for the detergent powder can primarily be categorised
into 3 categories.
The niche segment who is concerned towards environment and is willing to pay a
higher price for safeguarding the environment.
The second category of consumer includes the variety which is affected
significantly by changes in price and is not at all bother by the impact on the
environment.

The third category is a segment which is both price conscious as well has a
concern for the environment.
The third category constitutes about 70 % of the existing customer base.
At present P& G has taken initiatives such as Life Cycle thinking. Here wastage is
reduced all across the life cycle of the product.
Although it may seem that this approach may not be sustainable and may
require significant capital expenses in redesign of process and research and
development. However, environment sustainability is an approach which can not
only help save costs for the organisation but also help provide a differentiating
factor for the organisation.
Instead of competing with the rivals, companies are actually using the tool of
blue ocean strategy by adapting to the tool of sustainability.
Below we consider various factors which we look upon to evaluate the long term
viability of environmental sustainability.
Reduced size of Package :
Differentiation
P & G has reduced the size of its packaging. These compact packaging help in
differentiating the product. The compact packaging is eye catching and
immediately attracts the attention of the consumer.
Cost Reduction
The compact packaging reduces the amount of plastic and disposable material
required. This reduces the cost of packaging.
Moreover, the compact packaging helps reduce the volume of the package,
therefore more quantities can transported. Thereby reducing the consumption of
fuel.
Over the years P & G has been teaching consumers over the effective methods
of utilisation of the detergent product, thereby reducing its consumption and
lesser environment damages.
Moreover, it has reduced wastage at its manufacturing units and has been
substituting present raw material with natural raw material which have lead to
both a reduction in cost of manufacturing and has also lead to lesser effluents
discharge to river bodies.
The efficient processes and distribution have lead to saving in thermal and
electrical energy. These savings have lead to a reduction in carbon footprints of
the organisation. These carbon footprints can be traded in exchange for currency
and were significantly traded before the Financial crisis of 2007.

These initiatives have not only lead to a reduction in cost but have also
generated considerable goodwill for the organisation.
Apart from the goodwill, the companies have discovered substitutes for its
existing raw materials which shall provide them with long term competitive
advantage over its competitors. Also, these environment oriented initiatives have
cleared the company free from any kind of restriction the company may face
from Environment regulatory authorities. Thus P & G can ensure smooth
functioning of its manufacturing operations.
Keeping all these facts into consideration giving attention to environment not
only portrays an organisation to be environmentally conscious but it also gives it
a competitive advantage of both cost leadership and product differentiation.
Thus an organisation creates a blue oceans by subjecting itself to environment
sustainability.
Therefore the initiative by Board of Director at P & G is sound.