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Group Members

Aakash Patil : M-14-36


Sagar Dhote : M-14-12
Aditi Shah : M-14-48
Hiral Tank : M-14-60
Deep Kothari : M-14-24

REGISTERED HEAD OFFICE


The Procter & Gamble Company
Procter & Gamble Plaza
Cincinnati, OH 45202
OH Tel. 513-983-1100
Fax 513-983-93
Website: www.pg.com

Headquarters of P&G Downtown,


Cincinnati

History
Founded by William Procter & James Gamble in 1837, in Cincinnati.
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.
1963:Company acquires the Folgers coffee brand.
1992:Pantene Pro-V shampoo is introduced.
1999: Premium pet food maker Iams Company is purchased.
2001: P&G acquires Clairol hair-care business from Bristol-Myers Squibb Co.
2003: Company acquires controlling interest in German hair-care firm Wella AG
2005: P&G announced acquisition of Gillette, forming the largest consumer goods
company & placing Unilever into 2nd place
2013: Robert McDonald announced his retirement & replaced by A.G. Lafley who
returned as Chairman, President, and CEO

FOUNDERS OF P&G

WILLIA
M
PROCTE
R

JAMES
GAMBL
E

EVOLUTION OF LOGO

SECTOR AND INDUSTRY


SECTOR:CONSUMER GOODS
INDUSTRY:PERSONAL PRODUCTS
Procter and gamble divided its business into two units:
BEAUTY AND GROOMING
HOUSEHOLD CARE

No. of Brands:300
Countries its brands are serving:180 .
No. of people it is serving:4.8 billion
No. of brands in Leadership in their respective
product grp:50
Percentage of sales of House hold goods in Total
sales: 90%
Employees:126,000

VISION AND MISSION


Vision:
To be recognized as, the best consumer products and
Services Company in the world.

Mission:
We will provide branded products and services of
superior quality and value that improve the lives of the
world's consumers. As a result, consumers will reward
us with leadership sales, profit, and value creation,
allowing

our

people,

our

shareholders,

and

the

KEY PEOPLE
A.G Lafley (Current CEO,Chairman,President)
Robert A. McDonald (CEO till MAY 2013)
Board Of Directors(Total 11):
Norman Augustine
Lynn m martin
John f martin jr
Ernesto zedillo
Scott Cook

Operations at PNG

Beauty segment
Grooming segment
Health Care segment
Snacks & Pet Care segment
Fabric Care & Home Care segment
Baby Care & Family Home Care segment
Entertainment industry

Basic Channels of
Distribution
Manufacturers/products

Agents
Wholesalers/distributors
Retailers

Retailers

Consumers and organizational end users

Consumer
Understan
ding
Go-tomarket
Capabilitie
s

Innovation

Strength
s of P&G

Scale

BrandBuilding

Marketing
Strategy
Marketing Philosophy:
To Improve the
Lives
by Touching them
Everyday

Innovation Is the Cornerstone of


Success
. Focus on consumer innovations.

Product Strategy

Product differentiation- form , features , performance ,


reliability
Superior technology
CSR initiatives
Attractive packaging
Catchy taglines
Established as a brand itself

Pricing Strategy
Optional feature pricing
Product- line pricing
Competitive pricing
Distribution pricing

Place Strategy
In store placement strategy
Already existing strong links in urban area
Rural penetration
Develop marketing channels as strong and penetrated so
that it would gain
access to remote areas
Strategic location of warehouse
Increase wholesale dealers in small towns so that they can
go to the nearby
villages
National coverage would be dealt with by increasing the
companys
warehouses and creating C&F agents in the smaller cities

Promotion Strategy
Media
Radio
Hoardings
Consumer promotion
Fragrance oriented and eco friendly
Newspaper
Various promotional offers
P & G is spending 30-35 % of its sales in Advertisement and
Promotion
which is highest in the industry, HUL expends only 15% of
sales on
Advertisement and Promotion.

Environmental
Sustainability
Environmental sustainability vision that includes:
a) To power operational plants with 100% renewable
energy
b) To use 100% renewable or recycled materials for
all products and packaging
c) To have zero consumer and manufacturing waste
go to landfills
d) To design products that delight consumers while
maximizing conservation of resources

Structure
Multidivisional structure

Operation division

Functional hierarchy

M-Form

Financial Highlights
Current Share Price : 6167.75
52 Week Low: 5144.40
52 Week High: 7435.00
Strong consolidation happening in the FMCG sector. It is
slow but steady.
P&Gs commitment to doing whats right is embodied in
their financial reporting.
High quality financial reporting is their responsibility
which they keep within the spirit of law
They have high ACCURACY, OBJECTIVITYVABD
TRANSPARENCY.

Ratios

Jun15

Jun14

Current Ratio

2.23

2.30

Quick Ratio

2.05

2.07

Adjusted Net Profit


Margin (%)

14.37

14.17

Return on Assets

378.51

308.96

Inventory Turnover Ratio


(days)

19.82

17.44

Debtors Turnover Ratio


(day)

23.34

24.57

Cash Conversion Cycle

8.23

9.36

Earnings Per Share

106.63

93.04

Dividend Per Share

30.25

27.50

P&Gs Innovation Culture


The leaders of P&G have worked hard to make innovation
part of the daily routine and to establish an innovation
culture.
Preserved the essential part of P&Gs research and
development capability.
Give them one common focus: the consumer.
Without that kind of culture of innovation, a strategy of
sustainable organic growth is far more difficult to achieve.

Hours

P&Gs Working
Culture

Salary
Travel
Dress code
Career Progression
Secondments
Holiday

Leadership Style in P&G

Bobs
Values-Based
Leadership
beliefs define him as an individual
and a global business leader. He
believes that the best companies
and leaders operate with a clear
purpose and consistent set of
principles or values.

Leadership Principles
Putting people in the right jobs is one of the most important
jobs of the leader.
Character is the most important trait of a leader.
Ineffective systems and cultures are bigger barriers to
achievement than the talents of people.
Everyone wants to succeed, and success is contagious.
Companies must do well to do good and must do good to do
well.
The true test of the leader is the performance of the

Current Risks
P&Gs direct competitor is Hindustan Unilever
They are facing significant competitive risk in its two key

categories Hair Care and Laundry from Hindustan Unilever


(HUL).

Hair care
It's share in Hair Care has declined since last 8 quarters with HUL

now capturing more than 50% of Indian market.


P&G attempted to stem this with price drop however HUL swiftly

defended this with equal pricing and negated P&G's efforts.

Laundry
In the laundry space, Tide has been done very well, however
globally they have decided to do away with the low cost
variant
This may give a good entry point for HUL brands like Wheel
and Rin to increase it's market share.

Strategies Moving Forward and


risks in it..

P&G has a dubious pricing strategy. In India, sometimes they

adopt the premium pricing and at other times they change it to


value pricing. This creates confusion in the mind of the customer
and can create a negative impression
Recommendation: Stick to one type of pricing
P&G should keep up the efforts of bringing in more innovative

products. Ultimately it is the products that makes the company


work
Recommendation: Innovation to be ahead of competitors

The world these days works on promotion. Promote the


products in various ways understand the way the competitors
are promoting their products.
Recommendation: DONT run behind your competitor
every time they adopt a new way of promoting its
product. They could be something to mislead you.