Essential case facts Procter and Gamble is one of the largest and oldest manufacturer and distributor of groceries around the world. The company manufactures branded groceries and supplies these products to the market. In addition, the company is leading in determining the distribution channels of branded consumer goods to the market. The internal processes that occurred enabled the company to make a sales volume of $30 billion US dollars. The company is well known for its aggressive and successful development of world class marketing and high quality consumer goods. The company growth strategies involved developing and marketing new products, acquisitions and international expansions. The company succeeded in acquiring many medium sized firms in the US and as a result expanded its market share. However, this strategy lasted for only a very short time leaving the company to expand through new product development and international expansion. The international expansion strategy included the product replication in new markets as well as developing and marketing new products that suits the need of particular market. This strategy enabled the company to increase its sales volume by almost 50%. P&G product development strategy ensured broad range of product lines that included wide variety of products. The company organized its products into five major sectors. That is, Food/Beverages, Health/Beauty, soap, paper and special products. Each of these sectors was further organized into product categories. The categories were responsible for the product group brands. New-brands were determined by extensions or improvements on existing products. The company products were majorly sold through numerous channels including wholesalers, grocery retailers, club stores and mass merchandisers. While there was disharmony in relationship between the company and the distribution channels, the company later recognized that to be successful, it must serve the need of both the channel and the consumers. Extensive market research, effective advertising, low cost pricing strategy and aggressive research and development contributed to the company sales increases not only in the US but also in other parts of the world. The main focus of P&G has been to improve the customer value through the provision of superior products. This objective is the main driver of any innovative processes that occurred through the elimination of non-value-added processes in its distribution channel. These innovative processes that led to the transformation of the organization distribution channel were seen as the information system innovation. That is, the company developed information systems that automated all its distribution activities. Due to the promotional competition and swings in the prices, P&G adopted new market strategies on its branded consumer products. One of the strategies was to improve the industry efficiency and changing the pricing policy to its products. Both of these strategies were essential in the improvement of its brand value. As the company was implementing the pricing strategy, it also took leadership role in ensuring that the other players in the grocery industry have accelerated the adoption of new efficient systems and practices that add value to the products ch