P&G Overview

P&G a company that th t improves i hygiene, health and d development l t Tanuj Goyal Nisanpreet Bal Mahak Garg Ni Nirmal lK Kumar Abhishek Verma

Agenda
Overview O i Core Strength Brands Strategy Competitions V l Vulnerability bilit Recommendation
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P&G Introduction Procter & Gamble Co.

NYSE: PG - Fortune 500 Headquarter: Cincinnati, Cincinnati Ohio

P&G Introduction Touching and Improving Life

P&Gs single, unifying growth strategy is rooted in our enduring Purpose: We will grow by touching and improving more consumers lives in more parts of the world, with more complete solutions.

More
consumers

More complete

Leaders of the past

P&G history
William Procter , a candlemaker and James Gamble , a soapmaker founded the company in 31st Oct 1837. In 1859, , sales touched $1 $ million In 1862 , American Civil war, company supplied soaps and candles to the Army In 1880 1880, Floating soap soap, Ivory launched Ivory (Bible) white, Pure, mildness and long lasting In 1882, first time experienced advertisement cost $11000 for Ivory soaps soaps. In 1887, Company launched profit sharing plan to pacify the labor unrest 1896 first 1896, fi t color l print i t advertisement d ti t on Ivory I

P&G history
In 1911, Crisco first all-vegetable shortening launched In 1915, first manufacturing unit outside US in CANADA In 1920, changed the way of grocery trade , selling directly to retailers In 1923, first cooking show on radio another innovative way to market, soap operas In 1924 1924, first organization to study consumer behavior and buying habit In 1926, Beauty soaps Camay launched In 1930 1930, acquired Thomas Hedley & Co Co. In 1931, brand management system is born to tackle competing brands I 1933, In 1933 Dreft, D ft first fi t synthetic th ti detergent d t t launched l h d

P&G history
In 1934, Entered into hair care business with Drene shampoo In 1935, acquired Philippine manufacturing company to expand in Far east 100th Anniversary, Anniversary 1937 1937, sales $230m In 1946, Tide introduced. In 1950, subsidiary launched in Mexico In 1955, crest is launched, first toothpaste with fluoride In 1957, entered into paper products with the acquisition of Charmin paper mills In 1960,

P&G history y
In 1961

P&G history
In 1967, Ariel launched In 1968, Pringles launched In 1973, acquired the Nippon Sunhome company in Japan In 1972 1972, Bounce fabric softener In 1978, Didronel, first pharmaceutical products In 1982, acquired Norwich Eaton pharmaceuticals I 1983, In 1983 Al Always/whisper / hi l launched h d In 1985, acquired Vicks respiratory care and Oil of Olay product lines In 1986, Pert/Rejoice became the leading product worldwide In 1989, company enters cosmetics and fragrances with the acquisition of Noxell and Noxzema products In 1990, company expand male personal care market, acquisition of Shultons old spice product line-

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P&G history
In 1991, acquired Max Factor and Betrix , cosmetics and fragrance category. In 1994, company enters the European tissue and towel market with the acquisition of the German based company VP Schickedanz In 1997, acquisition of Tambrands, In 1999, entered into global pet health and nutrition business by acquiring lams company In 2005, acquired Gillette forming the largest consumer goods company and placing Unilever into second place

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Success of P&G

MDO GBU GBS

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P&G Core strength 5 pillars

Consumer understanding

Go-to-market capabilities

Brand building

scale

innovation

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Where is the money

Consolidated Net sales$78.9 billion (2010) Research & D Developmentl t $2 billion. billi Product Innovation Customer Knowledge Connect + Develop Advertisingg $ $9.3 billion

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BRANDS

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Procter & Gamble products p

Three Units:

Beauty Household care Health and Well-Being

More than 300 brands, including 23 brands which have more than a billion dollars in net annual sales 38 product categories globally
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Product Mix
BEAUTY&GROOMING
Beauty segment Grooming segment

HOUSEHOLDCARE
Baby Care and Family Care segment Fabric Care and Home Care segment

HEALTHANDWELLBEING
Health Care segment Snacks and Pet Care segment

Head& Sh ld Shoulders Olay

Braun Fusion

Bounty y Charmin

Ariel Ace

Always y Crest

Iams Pringles

Deodorant Pantene
Wella Covergirl Rejoice

Hair GilleteCare
Mach3

Prestige Pampers p Products

Skin Dawn Cosmetics OralB Salon Care Professio nals Downy

Duracell PRODUCT LINE Gain Tide

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Ansoffs Matrix

Surf Excel Variants

Ariel Gel

Crest

Gillete 19

Ansoff Exemplified

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Brand Management and Marketing

Originators Brand Manager Category g y Management g to Cohort Management g Line Extension strategy- increase product depth New and Improved Multibrand Strategy gy Aggressive Sales force Communication Co u cat o Pioneer o ee
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P&G Strategies

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Sustainability Strategies

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pginnovation com pginnovation.com

CONTROVERSIES

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COMPETITION

Segment competitors like Colgate, LOreal Local Brands and unorganized Retail

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Rin vs vs. Tide

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Pantene vs vs. Dove

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VULNERABILITIES Lesser footprint in emerging markets Loss in market share in certain key market segments Decline in growth of volume of sales
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Recommendations
Changing the perception of the Indian Consumers Enter markets of products of less competition Continue to expand its market internationally Continue to provide new , innovative and cutting edge products

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Recommendation
Leverage its competitive technological advancement to improve their supply chain efficiency Produce more affordable goods for low-income consumers

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References
http://www.pg.com/en_US/sustainability/strategy_goals_progress.shtml http://www.moneycontrol.com/news/business/hul-pg-eye-urbancustomer_302351.html http://www.financialexpress.com/news/p&g-plans-oral-care-foray-withcrest/143561/ http://www.marketwatch.com/story/pg-ad-spending-hits-record-93billi 2011 08 05 billion-2011-08-05 http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG073.ht m

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Thank You!