GENERAL STATEMENT OF THE PROBLEM 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 achieve 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 facing the company? Demographics: Proctor and Gamble is one of the largest consumer products companies in the world. They recorded worldwide sales in fiscal 2004 of $51.4 billion in the segments of fabrics and home care, beauty care, baby and family care, health, as well as snacks and drinks. 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 high demand for these products and increased competition. There is a higher population density caused by the increase in the number of households each year. The total population of the United States is approximately 300 million and continues to grow. 67% of the population is aged 15 to 65, which is P&G's target market. P&G offers 300 brands in 160 countries and a 500% increase over the last decade means an increase in consumer activity. Sociocultural: Americans are increasingly concerned about improving products in their sector. They are high-end consumers when it comes to consumer products. They want better, innovative products and are willing to pay for it. People are concerned about their quality of life, their hygiene and their ability to indulge in luxury. The consumer products industry relies primarily on brand and brand loyalty. A consumer will refrain from purchasing a product if it is unfamiliar to them. For example, in Germany, Jager changed the brand name from Fairy to the American-style Dawn. This caused a dramatic drop in sales. Economy: GDP growth in 2004 was 4.2%, compared to the next three 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 capitalize on the economy due to the growth of the industry. Political/Legal — Proctor and Gamble faces ongoing investigation into its animal testing of its products..