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Submitte d to:Sir, Ayaz re shi Submitte d by: Sikandar sultan Rafia azad Sadia ahsan
Submitte d to:Sir, Ayaz re shi
Submitte d by:
Sikandar sultan
Rafia azad
Sadia ahsan
Adnan hayat
Haider arif
Jihad khalid
To uching Lives, Improving Life. Type Publ ic (NYSE: PG) Founded 1837 Headquarters Cinc innati,
To uching Lives, Improving Life.
Type
Publ ic (NYSE: PG)
Founded
1837
Headquarters
Cinc innati, Ohio, USA; Toronto, Ontario, Canada
Key people
Bob McDonald, President, and Chief Executive.
Industry
Cons umer goods
Revenue
▲ U S$79.0 billion (FY 2009)
Net income
▲ U S$13.4 billion (FY 2009)
Employees
138,0 00
Website
www .pg.com
INTRODUCTION TO COMPANY The Procter & Gamble Company (P&G) is a brand behemoth. The world'
INTRODUCTION TO COMPANY
The Procter & Gamble Company (P&G) is a brand behemoth. The world' no.1 maker of
household products courts market share and billion-dollar brands. P&G's business is divided into
three global units: beauty, health and well being, and household care. Procter & Gamble Co.
(P&G) is an American global corporation based in Cincinnati, Ohio that manufactures a wide
range of consumer goods. Three billion times a day, P&G brands touch the lives of people
around the world. This happens because P&G provides branded products of superior quality and
value to improve the lives of the world's consumers. This results in leadership sales, profits and
value creation, allowing employees, shareholders and the communities in which
P&G operate to prosper. The Company markets more than 300 branded products. P & G have
on-the ground operations in more than 80 countries and employ nearly 140,000 people. Nearly
five billion consumers in more than 130 countries. What began as a small, family-operated soap
and Candle Company now provides products and services of superior quality and value to
consumers in 140 countries. P&G is a publicly owned company. Its stock is listed and traded on
the New York and Paris exchanges.
As of 2008, P&G is the 8th largest corporation in the world by market capitalization and 14th
largest US company by profit. It is 10th in Fortune's Most Admired Companies list (as of 2007).
P&G is credited with many business innovations including brand management and the soap
opera.

HISTORY OF PROCTER AND GAMBLE COMPANY:

HISTORY OF PROCTER AND GAMBLE COMPANY: William Procter, a candle maker, and James Gamble, a soap

William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England and Ireland, respectively, who had settled earlier in Cincinnati, formed the company initially, who met as they both married sisters, Olivia and Elizabeth Norris.

As the result of persuation by their father in law, Alexander Norris, Procter & Gamble
As the result of persuation by their father in law, Alexander Norris, Procter & Gamble was born
on October 31,1837, as they became business partners. By1859,when 80 employees worked for
P&G, sales reached 1million dollar. The company supplied soaps and candles to the Union Army
during the American Civil War. the military contracts won introduced soldiers from all over the
country to P&G‟s products, along with increased profits.

1837: William Procter and James Gamble form Procter & Gamble, a partnership in Cincinnati, Ohio, to manufacture and sell candles and soap. 1851: Company's famous moon-and-stars symbol is created. 1878: P&G introduces White Soap, soon renamed Ivory. 1890: The Procter & Gamble Company is incorporated. 1911: Crisco, the first all-vegetable shortening, debuts. 1931: Brand management system is formally introduced. 1946: P&G introduces Tide laundry detergent. 1955: Crest toothpaste makes its debut. 1957: Charmin Paper Company is acquired. 1961: Test marketing of Pampers disposable diapers begins. 1963: Company acquires the Folgers coffee brand. 1980:It began marketing a new product, an inexpensive soap that floats in water. it was named „Ivory. 1982: Norwich-Eaton Pharmaceuticals is acquired. 1985: P&G purchases Richardson-Vicks Company, owner of the Vicks, NyQuil, and Oil of Olay brands. 1987:William Procters grandson William Arnett Procter began a profit sharing programme for its employees,he assumed that by giving the workers stake in the company,they would be less likely to go on strike. 1988: Noxell Corporation, maker of Noxema products and Cover Girl cosmetics, is acquired. 1991: Max Factor and Betrix cosmetic and fragrance lines are bought from Revlon, Inc. 1992: Pantene Pro-V shampoo is introduced. 1993: Major restructuring is launched, involving 13,000 job cuts and 30 plant closures.

shampoo is introduced.  1993: Major restructuring is launched, involving 13,000 job cuts and 30 plant

1997: Company acquires Tambrands, Inc., maker of the Tampax line of tampons. 1998: Organization 2005 restructuring is launched. 1999: Premium pet food maker Iams Company is purchased. 2001: P&G acquires the Clairol hair-care business from Bristol-Myers Squibb Company. 2002: Jif peanut butter and Crisco shortening brands are divested. 2003: Company acquires a controlling interest in German hair-care firm Wella AG. The company started building factories in other site of USA as the demand was Out growing the capacities of Cincinnati.the products were also being diversified.It also sponsored a number of radio programmes termed as “soap operas”. With its 1930 acquisitionof Newcastle upon Thomas Hedley Co,it became an international corporation. numerous new products were introduced over time, like Tide, Prell, Crest,Bounce, Pampers, Chux. ,.P&G acquired a lot of companies including Folgers coffee,Norwich eaton pharmaceuticals, Richadson-Vicks, Noxell,Max Factor, Iams company. P&G acquired Gillette in January 2005,forming the largest consumer goods company and placing Unilever in the 2nd place. P&G has expanded significantly,but its its hesdquaters still remains in Cincinnati.

“ Logo controversy”
“ Logo controversy”

The company received unwanted media publicity in the 1980s when rumors were spread that

their previous corporate logo was a Satanic symbol. The company has sued and attempted to sue a number of companies like Amway and individuals who have spread rumors of this type, in some instances because they sell competitive products and have spread such rumors for the purpose of tarnishing P&G's image to increase sales of their own brands.

However, the continuous media coverage prompted P&G to adopt an entirely new logo

consisting of just the letters P&G. In television commercials in China, the former P&G logo still appears at the end of each commercial, and up until 2004, it appeared at the end of each commercial in Japan

logo still appears at the end of each commercial, and up until 2004, it appeared at

VISION

What organization want to become in future is known as vision. The vision of Procter and Gamble company is

“Be, and be recognized as, the best consumer products and services in the world”

MISSION

What is the purpose of the existence of the organization is known as mission. The mission of Procter and Gamble Company is

““Procter and Gamble will continue to serve consumers by continuously innovating products that will allow
““Procter and Gamble will continue to serve consumers by continuously
innovating products that will allow us to be leaders in household and personal care, health
care, and food products. To produce products with the utmost care to give nothing but
quality to our communities and to continue to grow so that we can maximize our
shareholder’s wealth.”
VALUES
P&G is its people & the values by which they live.

They recruit the finest people in the world.they build the organization from within,promoting and rewarding people without any difference unrelated to performance.thry work on the conviction that the people of P&G are the most rewarding asset.

Integritythat the people of P&G are the most rewarding asset. Being right in deeds, honest and

Being right in deeds, honest and straight to each other operating within the spirit of law, upholding the values and principles in every decision and action, staying data-based and intellectually honest in advocating proposals and recognizing risks.

Leadership:honest in advocating proposals and recognizing risks. Having clear vision of where they are going, focusssing

Having clear vision of where they are going, focusssing the resources to achieve leadership objectives and strategies, developing the capability to deliver the strategies and eliminate organizational barriers.

objectives and strategies, developing the capability to deliver the strategies and eliminate organizational barriers.
Ownership

Ownership

Accepting personal accountability to meet the business needs. improve the system and helping others improve their effectiveness. everyone acts owner, treating the company’s assests as own and behaving with company’s long term success in mind.

Passion for winning

Passion for winning

Determination to be the best, having healthy dissatisfaction with the status quo, compelling desire to improve and win in the workplace.

Trust

Trust

Respecting &treating others as they want to be treated, having confidence in each others capabilities and intentions. foundation of trust.

PRINCIPLES ~Showing respect for others ~Being strategically focused in the work ~Valuing personal mastery ~Seeking
PRINCIPLES
~Showing respect for others
~Being strategically focused in the work
~Valuing personal mastery
~Seeking to be the best
~Making the interests of the company nad workers insepsrable

~Innovation is the cornerstone of success

~Making mutual interdependency a way of life

~Staying extremely focused.

OBJECTIVES

The objective of Procter & Gamble is that “They will provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work toprosper.

ORGANIZATIONAL STRUCTURE

P&G has an organizational structure that is comprised of three Global Business Units (GBUs) and a Global Operations group. The Global Operations group consists of the Market Development Organization and Global Business Services. The heads of the three GBUs and Global Operations each report to the Chief Executive Officer. Here is the Organizational Chart for Procter and Gamble.

Here is the Organizational Chart for Procter and Gamble. Vice Chairman VP of the Board P

Vice Chairman

VP of the Board P & G Family

Vice Chairman of the Board

Vice Chairman

Global

Group President Group President President Group President Global Pet Global Fabric Global Prestige Eastern Europe
Group
President
Group President
President
Group President
Global Pet
Global Fabric
Global Prestige
Eastern Europe
President
President
President
Group President
Global Home
Global Skin
Global
Western Europe
Care
President
President
Group President
Global Snacks
President
Global Oral
North America
Global Hair
Care
President
Global Baby &
Senior VP HR
Global
President
Northeast Asia
President
Global
Professional
President
President India
Care
Global Family
And Australia
President
President
Greater China
Global
Feminine Care
President
Latin America
President
Global Prestige
Products
President
Global
Cosmetics

The three GBUs are Beauty and Health, Household Care and Gillette. The primary responsibility of the GBUs is to develop the overall strategy for their brands. They identify common consumer needs, develop new product innovations and build their brands through effective commercial innovations, marketing and sales. This new structure took effect in April 2006 when they announced a number of changes to certain of their key leadership positions, which resulted in changes to their GBU structure and their segment reporting. The company believes that they get the full value of the company’s strengths with a unique organizational structure and supporting work systems. P&G is the only consumer products company with global business unit profit centers, a global shared business services, all supported by innovative corporate functions. They are essentially running a number of highly focused companies that share common go-to-market

corporate functions. They are essentially running a number of highly focused companies that share common go-to-market
corporate functions. They are essentially running a number of highly focused companies that share common go-to-market
CEO
CEO

CEO

CEO
operations and business services. They have made it possible for each business unit to focus
operations and business services. They have made it possible for each business unit to focus on
its individual consumers, customers and competitors while capturing all the capability,
knowledge and scale of a $75 billion global company. In addition, they have created the
capability to collaborate, learn quickly from one another, and reapply successes across P&G
businesses. This is a more agile, flexible and responsive structure, allowing the global business
units to focus on necessary growth. It is also hard for a competitor to duplicate this structure.
Procter & Gamble brands: Category Segment Brand Paper Diapers Baby Wipes Sanitary Products Pampers Luvs
Procter & Gamble brands:
Category
Segment
Brand
Paper
Diapers
Baby Wipes
Sanitary Products
Pampers
Luvs
Always
Alldays
Laundry & Cleaning
Products
Detergents
Fabric Softeners
Dish Washing Liquids
Air Freshener
Tide
Ariel
Cheer
Bonux
Downy
Fairy
Febreze
Health & Beauty Care
Personal Care & Home
Appliances
Grooming
Dental Care
Hair Care
Soaps
Shower Gels
Shampoos
Tooth Paste
Body Wash Gels
Cosmetics
Male Toiletries
Braun
Gillette
Oral-B
Wella
Camay
Zest
Olay
Camay
Head & Shoulders
Pert Plus
Pantene
Olay
Oil Of Olay
Old Spice
Pringles
Food
Potato Chips
Pringles
Batteries
Consumer & Industrial
Batteries
Duracell

Manufacturing operations are based in the following regions:

Procter & Gamble manufactures its products across the globe. Manufacturing operations are based in the following regions:

Manufacturing operations are based in the following regions:  United States  Canada  Mexico 
 United States  Canada  Mexico  Latin America  Europe  China (31
 United States
 Canada
 Mexico
 Latin America
 Europe
 China (31 wholly-owned factories) and other parts of Asia
 Africa
 Australia
PRODUCTIONS

Procter & Gamble produced and sponsored the first radio soap operas in the

1930s.

Past serials produced by Procter & Gamble include:

Another World

Lovers and Friends

The Brighter Day

The Catli

Our Private World

The Edge of Night

The First Hundred Years

For Richer, for Poorer

From These Roots

Catli  Our Private World  The Edge of Night  The First Hundred Years

Search for Tomorrow

Somerset

Texas

Young Doctor Malone

TOP COMPETITORS

1. Johnson & Johnson

2. Kimberly Clark

3. Unilever

Kimberly-Clark: Kimberly-Clark competes with P&G in the household products market, particularly in tissues, paper
Kimberly-Clark:
Kimberly-Clark competes with P&G in the household products market, particularly in tissues,
paper towels, diapers, and feminine products. In 2006 K-C reported sales of $16.7 billion, 76%
of which came from sales of diapers, wipes, feminine products, tissues, paper towels, toilet
paper, and other related paper tissue products. Major K-C brands include Huggies diapers, Kotex
feminine products, Scott paper towels and Kleenex tissues.
Unilever:

Unilever operates in many countries, including Asia, Africa, North America, the Middle East, Western Europe, and Latin America. The company's products cover two categories -- food and home and personal care – with known brands such as Axe, Dove, sunsilk,Pond's, Suave, Vaseline, Signal, Snuggle, Surf, Slim Fast, Lipton, Ben & Jerry’s, Brayers, and Country Crock.

Johnson & Johnson:

It's nearly impossible to get well without Johnson & Johnson (J&J). The diversified health care giant operates in three segments through more than 250 operating companies. Its pharmaceuticals unit makes drugs – including Best-selling schizophrenia medication Dispersal -- for an array of ailments, such as neurological conditions, blood disorders, autoimmune diseases, and Chronic pain. J&J's medical devices and diagnostics division offers surgical equipment, monitoring devices, orthopedic products, and disposable contact lenses, among other things. Its consumer products segment makes over-thecounter drugs and products for skin and hair care, baby care, oral care, first aid, and women's health.

STRATEGIES

A strategy is a long term plan of action designed to achieve a particular goal, most often winning. P&G announced “connect & develop” strategies P&G has announced a goal of accessing 50% of its new ideas, technologies, and products from external sources. A key element in this open innovation strategy is the effective utilization of the Internet to match technical needs with the right innovators around the world who have technology solutions and "ready-to-go" products that P&G can utilize. Nine Sigma is one of the leading companies in the field of innovation sourcing. Through its proprietary Internet-based Managed Exchange process, Nine Sigma delivers connections to sources all over the world to meet its clients' most challenging needs. In the past 18 months, P&G and Nine Sigma have worked together to find solutions and opportunities across P &G's global business units.

Leadership P&G market shares are growing in more core categories, on more leading brands, at
Leadership
P&G market shares are growing in more core categories, on more leading brands, at more top
customers and in more big countries this year than last. P&G has the leading brand in 29 of 47
core categories in the U.S. today.
Global Presence
we have on-the-ground operations in 80 countries. Our structure is based on Global Business
Units spread across the U.S., Europe, Latin America, and Asia.
Growth

P&G’s business is strong. We are delivering on our goals of:

4 percent to 6 percent topline growth, excluding foreign exchange effects.business is strong. We are delivering on our goals of: Double-digit core earnings-per-share growth. Total

Double-digit core earnings-per-share growth.percent topline growth, excluding foreign exchange effects. Total shareholder return in the top third of P&G's

Total shareholder return in the top third of P&G's peer group. .

Innovation

We're innovating in every core P&G category, and creating new categories. For example, in 2001, six of the top ten best-selling new non-food products in the U.S. were P&G brands. We've developed whole new categories like disposable diapers and laundry detergents in the U.S, and most recently, home dry cleaning (Dryel) and fabric refreshers (Febreze). We consider product research and innovation to be the cornerstone of our success. P&G invests more than $1.2 billion a year on research and development, an investment that pays off. We file for nearly 20,000

invests more than $1.2 billion a year on research and development, an investment that pays off.

patent applications every year, making P&G among the most innovative companies in the world. P&G employs more PhD scientists than MIT, Berkeley, and Harvard combined.

Promotional strategies

Coupons have been a promotional strategy for more than 100 years, it is estimated that 3000 manufactures print 310 billion coupons. While coupons are believed to be effective in enticing consumers to try and to continue to buy a product, less than 2% of distribution coupons are redeemed, leading manufactures and retailers to question how effective couponing really is in today’s market-place.

Pricing strategies

Procter & Gamble's new low price strategy on some of its product lines has been getting a lot of play in the consumer and business press, but the spotlight has fallen almost entirely on supermarkets. Given the volume that food stores command and the strong symbiosis between P&G and the grocery trade, perhaps that's natural.

Connect and Develop strategy P&G has announced a goal of accessing 50% of its new
Connect and Develop strategy
P&G has announced a goal of accessing 50% of its new ideas, technologies, and products from
external sources. A key element in this open innovation strategy is the effective utilization of the
Internet to match technical needs with the right innovators around the world who have
technology solutions and "ready-to-go" products that P&G can utilize. NineSigma is one of the
leading companies in the field of innovation sourcing. P&G and NineSigma have worked
together to find solutions and opportunities across P&G's global business units. By utilizing
NineSigma's unique process, P&G can be more proactive in accessing the tremendous innovation
assets and ideas that exist outside of Procter & Gamble.

Present and future

With a presence in more than 140 countries, Procter & Gamble serves a potential consumer market of five billion, and employs around 103,000 people. Turnover last year was $3 5 billion and net profit more than $3 billion. On BSE, while P&G is currently valued at Rs 1,988 crore, Gillette's market cap is Rs 2,199crore Engineering products would soon be sourced from India instead of Japan.

crore, Gillette's market cap is Rs 2,199crore Engineering products would soon be sourced from India instead

SWOT ANALYSIS

STRENGTHS

1.

Business and community partnerships

Improving lives in all countries and communities has led to a focus on building effective business and community partnerships in areas where they can make a meaningful difference :

education, economic development, 2. Leadership focus and accountability To assess progress and reinforce leadership
education, economic development,
2.
Leadership focus and accountability
To assess progress and reinforce leadership accountability for corrective actions, management
shows strong visible leadership, commitment and constant focus.
3.
Talent support and development
P&G recruits the best talents ,leverages the full talent of each individual through effective
assignment and promotion planning processes and executing critical systems that affect and
support retention of employees .employee support groups and network teams perform effective
recruiting, join-up and development efforts.
4.
Organizing facts

For many years, P&G has been recognized across the globe as one of the "best places to work" and for improving lives in the communities where they operate. This recognition is reflected in many publications, like, Fortune, Working Mother and Latina Style.

5.

Employee networks

Employee support groups and network teams operating throughout the organization contribute strongly to effective recruiting and development efforts.

6.

Inclusive culture

P&G leaders create an inclusive environment that welcomes and embraces diversity in the employees, regardless of their individual differences, talents or personal characteristics. This is an environment that provides everyone equal access to information, opportunities and

or personal characteristics. This is an environment that provides everyone equal access to information, opportunities and
involvement, so each person learns, grows, excels and maximizes his or her personal contribution. WEAKNESSES:
involvement, so each person learns, grows, excels and maximizes his or her personal
contribution.
WEAKNESSES:
1.The company introduced toll-free numbers for the costumers but in October 1981,this facility
turned into a backdrop for the company as public used it for enquire about the rumour of the
ownership of the company by the Church of Satan and the president and chief of P&G John
Smale being its member. in July 1982,the calls peaked up to 15,000.
2.
Although the company changed its logo in 1985,it still appears at the end of certain
commercials in China and Japan, stock certificates and at the entrance of of some P&G
facilities.
3.
P&G is one of the largest corporate producers of air pollution, emitting green house gases
and toxic chemicals.
OPPURTUNITIES:
1.P&G,being a highly diversified organization, can out think, out innovate and out perform an
homogeneous organization.
2.P&G may understand the needs of the diverse consumers and work effectively with customers
and suppliers to fulfill its values ,principles and purpose.
3.
It can delight the consumer with sustainable innovations that will improve the environmental
profile of the products, and thereby increasing the sales.
4.
Working transparently with the stakeholders can enable freedom to innovate in a responsible
way.
5.
P&G can focus on shifting its product portfolio to faster growing high margin businesses.
6.The company may concentrate on its core business (through innovation), to expand penetration in the
6.The company may concentrate on its core business (through innovation), to expand
penetration in the developing countries and restructuring its existing businesses.
THREATS
1.The likelihood of one of their products cannibalizing the sales of another. the products may
directly compete with one another
2.Due to high cultural diversity, problems may arise as a course of miss communication.
3.As a result of language difference, dubbed commercials may be miss interpreted.
4.There is an enormous chance of competion in the market at the higher positions.
5.As the range of its products is very vast,there are even greater number of their substitutes.
6.A change in the consumers’ taste can affect the demand for the products.
P&G’s GROWTH OVER LAST 5 YEARS:
Amounts in millions, except per share amounts
2009
2008
2007
2006
2005
Net Sales
$79,029
$81,748 $74,832 $66,724 $55,292
Operating Income
16,123
16,637
15,003
12,916
10,026
Net Earnings
13,436
12,075
10,340
8,684
6,923
Net Earnings Margin from Continuing Operations
14.3%
14.4%
13.4%
12.7%
12.0%
Diluted Net Earnings per Common Share from Continuing
Operations
$ 3.58
$ 3.56
$ 2.96
$ 2.58
$ 2.43
Diluted Net Earnings per Common Share
4.26
3.64
3.04
2.64
2.53
Dividends per Common Share
1.64
1.45
1.28
1.15
1.03
NET SALES Net Sales (in billions of dollars) 05 $55.3 06 $66.7 07 $74.8 08
NET SALES
Net Sales (in billions of dollars)
05
$55.3
06
$66.7
07
$74.8
08
$81.7
09
$79
DILUTED NET EARNINGS
Diluted Net Earnings (per common
share)
05
$2.53
06
$2.64
07
$3.04
08
$3.64
09
$4.26
OPERATING CASH FLOW
Operating Cash Flow (in billions of
dollars)
05
$8.6
06
$66.7
07
$74.8
08
$15.0
09
$14.9

Summary of 2009 Results

Net sales decreased 3% to $79.0 billion.

Net earnings increased 11% to $13.4 billion

Diluted net earnings per share increased 17% to $4.26.

Cash flow from operating activities was $14.9 billion.

Financial Condition

Financial condition continued to be of high profile as operations generated substantial cash and accessing
Financial condition continued to be of high profile as operations generated substantial cash and
accessing capital markets at competitive rates,.the overall cash status of the company indicates
strong business results and global cash management strategy.

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