OVERALL PROBLEM STATEMENT Can Proctor and Gamble survive and thrive by reinventing existing products in an environment that requires new innovations? And will P&G be able to reach its goal of 50% market share in each segment? ANALYSISGeneral EnvironmentWhich segments of the general environment are most relevant to the consumer products industry? What are the main opportunities and threats affecting the company? Demographics: Proctor and Gamble is one of the largest consumer products companies in the world. In fiscal 2004, they reported global sales of $51.4 billion in the Fabrics & Home Care, Beauty, Baby & Family, Healthcare, and Snacks & Beverages segments. Products in these segments include Tide, Crest, Charmin, Downy, Pampers, Folgers, Bounty, Ariel, Pringles, Always, Pantene and Iams. The industry is growing rapidly due to the high demand for these products, due to increasing competition. There is a higher population density caused by the increase in families every year. The total population in the United States is approximately 300 million and growing. 67% of the population is between the ages of 15 and 65, which is the market P&G is targeting. P&G offers 300 brands in 160 countries, and a 500% increase over the past decade means increased consumer activity. Sociocultural: Americans are increasingly concerned with better products in their industry. They are high-end consumers when it comes to consumer products. They want to get better innovative products and are willing to pay for them. People are worried about quality of life, hygiene and the possibility of pampering themselves with luxury. The consumer products industry is primarily based on brand name and brand loyalty. A consumer will refrain from purchasing a product if he is unfamiliar with it. For example, in Germany, Jager changed the name of the American-style brand Dawn from the Fairy brand. This caused a dramatic drop in sales. Economy: GDP growth in 2004 was 4.2%, compared to the next 3 years combined for growth of only 3.8%. Personal debt relative to average income is high, making consumers vulnerable to rising interest rates. Inflation rates have remained roughly the same since 2004 at 3%. The consumer products industry will benefit from the economy due to the growth of the sector. Political/Legal: Proctor and Gamble is facing an ongoing investigation into animal testing for its products.