TOPIC

PRESENTED TO:
Sir Ghulam Hussain Sb

PRESENTED BY:
Muhammad Kashif Zia

ROLL No. 23 (2006-2010)

GC.UNIVERSITY FAISALABAD
 PRODUUCTS

P&G's product line includes 24 brands across beauty, healthcare, and food
including Tide detergent, Pampers diapers, and Gillette razors, that generates
over $1 billion in revenue annually, with the company's total revenue topping
$83 billion in 2008.
Air Fresheners Safeguard Hair Color
Febreze Air Zest Clairol
Fresheners
Colognes
Antiperspirants & Old Spice Health Care
Deodorants Align
P&G Professional
Old Spice Braun
Secret Clearblue Easy
Fibersure
Cosmetics
Baby & Child Metamucil
CoverGirl
Care Pepto-Bismol
Max Factor
Charmin Prilosec OTC
Children's Pepto Dish Washing
Clearblue Easy Vicks
Cascade
Dreft Dawn Household
Luvs Ivory
Cleaners
Pampers Joy
Bounty
Pampers Kandoo
Febreze Air
Pampers UnderJams Feminine Care
Fresheners
Puffs Always
Mr. Clean
Tampax
Batteries Mr. Clean AutoDry
Duracell Hair Care Carwash
Aussie Swiffer
Head & Shoulders
Body Wash & Herbal Essences
Soap Laundry & Fabric
Infusium 23
Camay Care
Pantene
Ivory Bounce
Olay Cheer
Old Spice Downy
Dreft Pet Nutrition HUGO
Era Eukanuba LACOSTE
Febreze Air Iams NAOMI CAMPBELL
Fresheners PUMA
Gain Prescription

Ivory Drugs Shaving

Tide Actonel Braun

Asacol Gillette Fusion
Oral Care Didronel Gillette M3Power
Braun Enablex Gillette SatinCare
Crest Macrobid Gillette Venus
Crest Glide Macrodantin
Crest Whitestrips Skin Care

Fixodent Prestige Braun

Gleem Fragrances Gillette Complete

Scope BALDESSARINI Skincare

Oral-B BOSS Olay

BOSS SKIN
Paper Products Small Appliances
bruno banani
Bounty Braun
ESCADA
Charmin Ghost Snacks
Puffs Giorgio Beverly Hills Pringles
 OUTLINE
I. Products
II. Company Overview
a) History
b) Operations
c) P&G in Pakistan

III. Issues & Outlook profile

•Mission Statement
•The Vision
•Values
•Objectives
•Current Strategies
•Strategic Issues

IV. Analysis of the External Environment

•Porter’s Five Forces Model
•Links with Universities
•Links with Government

V. Analysis of the Internal Environment

1. SWOT Analysis (Strengths and Weaknesses)
2. Strategic Cost Analysis

VI. Development of Strategic Alternatives & Options

1. Leveraging Scale with the Retail Trade
2. Corporate Leadership to Leverage Scale
3. Leverage Scale with Specific Consumers

VII. Evaluation and Recommendations & Strategic Choices

VIII. Strategic Implementation & Control Mechanisms

IX. Pricing Strategy
X. Competition
XI. Company Profile
XII. Slogan
Company Overview
 a) History
IN 1837

2008 Segment Information

Sales
Net % Net Total Capital Billion-
% Total Growth
Sales Total Earnings Assets Expenditures Dollar
Earnings from
($M) Sales ($M) ($M) ($M) Brand(s)
2007
Head &
Shoulders,
Beauty $19,515 23% $2,730 23% 9.09% $12,260 $465 Olay,
Pantene,
Wella
Gillette,
MACH3,
Grooming $8,254 10% $1,679 14% 10.99% $27,406 $305
Braun,
Fusion
Actonel,
Health Always,
$14,578 17% $2,506 21% 8.95% $10,597 $450
Care Crest,
Oral-B
Snacks,
Folgers,
Coffee,
$4,852 6% $477 4% 6.94% $2,275 $105 Iams,
and Pet
Pringles
Care
Ariel,
Fabric Dawn,
and Downy,
$23,831 29% $3,422 28% 11.00% $13,772 $765
Home Tide,
Care Duracell,
Gain
Bounty,
Baby and
$13,898 17% $1,728 14% 9.21% $8,102 $763 Charmin,
Family

(-47.98
Corporate ($1,425) (2%) ($467) (4%) $69,580 $193
%)
$143,99 24 brands
TOTAL $83,503 100% $12,075 100% 9% $3,046
2 over $1B
William Procter and James Gamble formed a humble but bold new enterprise.
What began as a small, family-operated soap and candle company grew and
thrived, inspired by P&G's purpose of providing products and services of superior
quality and value.
The formal partnership agreement is signed on October 31, 1837.
It is an essential part of who we are, who we have been and who we will be for
generations to come.

• Procter & Gamble is an American global corporation based on manufacturing a

wide range of consumer goods. As of 2007, P&G is the 25th largest US Company
by revenue, 18th largest by profit, and 10th in Fortune's Most Admired
Companies list.

• William Procter, a candle maker, and James Gamble, a soap maker, formed the
company known as Procter & Gamble in 1837.

• The company prospered during the nineteenth century.

• Throughout the twentieth century, the company moved into other countries, both
in terms of manufacturing and product sales, becoming an international
corporation.
• In January 2005 P&G announced an acquisition of Gillette, forming the largest
consumer goods company and placing the Anglo-Dutch Unilever into second
place.
b) Operations

1. Beauty
Beauty segment
Grooming segment
2. Household Care
Baby Care and Family Care segment
Fabric Care and Home Care segment
3. Health & Well-Being
Health Care
Snacks, Coffee and Pet Care

c) P&G Pakistan
Qaisar Shareef
Country Manager
Procter & Gamble Pakistan

Qaisar Shareef was appointed Country Manager, P&G Pakistan, effective

October, 2006.

Contact Info

PROCTER & GAMBLE PAKISTAN (PVT) LTD.

6th Floor, Bahria Complex-I M.T. Khan Road, Karachi 74000, Sindh, Pakistan
Phone: 9221-111000764 / 5610469 / 5610489 / 5610497 / 5610612
Fax: 9221-5610801
URL: http://www.pg.com.pk

HISTORY SO FAR IN PAKISTAN:

Procter & Gamble started its operations in Pakistan in 1991 with the goal of
becoming the finest global local consumer goods company operating in Pakistan.
It has first launched Camay and Head & Shoulders. With commitment came
growth, and in 1994 we acquired a soap-manufacturing facility, a sprawling 7-acre
land at Hub, Balochistan. Over the past nine years, the plant achieved state-of-art
manufacturing technologies and quality assurance processes. With a recent
strategic investment of 5 million dollars, the bar soap production capacity jumped
three-fold.

As a company we have always believed in the potential Pakistan has as a country

and a nation to develop and excel. No wonder P&G Pakistan, within the last 12
years, has reinvested over $100 million in Pakistan and has contributed close to
seven billion rupees to the Pakistani government's revenues over the last 5 years in
the form of sales tax, customs and excise duties. That is also why 99% of the jobs
that P&G Pakistan creates in Pakistan are held by Pakistanis. All this makes P&G
a more locally involved company than many companies actually headquartered in
Pakistan.

Since the inception of P&G Pakistan, we have always committed ourselves to

business growth, consumer satisfaction and community development. Thanks to
our committed base of employees, customers, vendors, stakeholders, and above
all, consumers, today we are one of the most thriving operations in Pakistan.

We proudly celebrate being a part of the Pakistani way of life.

P&G BACKGROUND:

P&G Pakistan is a subsidiary of the Procter and Gamble Corporation, the leading
consumer goods company with a mission to improve the lives of consumers
wherever it operates.
P&G is an international Company reaching out to almost the entire world
population with more than 250 brands in 130 countries. Many of these world
brands (Ariel, Tide, Pert Plus, and Pantene Pro-V, Head & Shoulders, Pampers and
Always) have become famous household names and are found in almost every
home. Headquartered in Cincinnati-Ohio in the USA, P&G has local operations
across the globe in more than 80 different countries, including numerous
manufacturing sites and 18 R&D-technical centers. P&G is an internationally
owned company with publicly traded shares, currently owned by over one million
shareholders from around the globe.
P&G employs over 100,000 people from all over the world, spread evenly
between 1-USA, 2-Europe/Middle East and Africa and 3-Latin America/Asia.
P&G hires and respects individuals regardless of race, color, religion, gender, age,
national origin, citizenship or disability, and actively promotes diversity within its
organization as well as in its business operations.

II. Issues & Outlook profile

1. Mission Statement
We 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.

2. The Vision
“Be, and be recognized as, the best consumer products and services
company in the world.”
 3. Values
Integrity
Passion for Winning
Leadership
Trust
Ownership

4. Objectives
o Build existing core businesses into stronger global leaders
o Grow leading brands, big countries, winning customers
o Develop faster-growing, higher-margin with global leadership
potential
o Regain growth momentum and leadership in Western Europe
o Drive growth in key developing markets.

5. Current Strategies

o Consumers will pay a premium for products that offer improvements

over either private-label products or the brands they have bought for
years.

o Product innovation must be regular with visible improvements year

constantly.

o Product innovation must be designed to constantly "up-scale"

consumer preferences.

o This “up-scaling” of consumer tastes is not just for affluent

consumers.

o These strategies of innovation and pricing can be used to break into

developing economies

o Using innovation to attain a growing share of developing markets

will be the key to growing company earnings as growth rates in
mature consumer markets.

Coke-P&G: a Failure
Wrigley-P&G: a Success
Soap Opera: Flash Back
 6. Strategic Issues

o Family Care and Coffee categories have had substantial price

competition and cost pressure.

o risks of over confidence and complexity

o Competitive pressure is a constant and consistent challenge

o Rising commodity costs

o Media fragmentation is another challenge

o Global economic and political instability

III. Analysis of the External Environment

1. Porter’s Five Forces Model

1. Buyer Power

2. Supplier Power

3. Threat of New Entrants

4. Threat of Substitutes

5. Degree of Rivalry

2. Links with Universities

Over the last few years P&G has been heavily recruiting the University of
Minnesota, US for chemical & mechanical engineers.

3. Links with Government

Because of P&G’s importance for the US economy, it can have a big say in the
political arena, directly and indirectly, formally and informally. The voice of big
multinational corporations is being heard, and they enjoy many privileges, such as
tax rebates.

4. Shareholders
• P&G can be divided in two categories: preferred shareholders &
common shareholders
 • 25% of P&G stock in the world is in the hands of its employees.

5. SWOT Analysis (Opportunities and Threats)

Opportunities
1. Developing markets
2. Gillette acquisition
3. New products

Threats
1. Uncertainty in pharmaceuticals business
2. Increase in prices of raw materials
3. Intense competition

IV. Analysis of the Internal Environment

1. SWOT Analysis (Strengths and Weaknesses)

Strengths
1. Large scale of operations
2. Strong branding
3. Product innovation
4. Developing markets infrastructure

Weaknesses
1. Customer concentration
2. Weak Performance of the Clairol business

2. Strategic Cost Analysis

Procter & Gamble instituted a "value pricing strategy" during which it

boosted advertising while simultaneously curbing its distribution channel deals
(in-store displays, trade deals), and significantly reducing its coupon promotions.

V. Development of Strategic Alternatives & Options

1. Leveraging Scale with the Retail Trade

Everyone recognizes that retailers are becoming more and more powerful,
demanding more price concessions from manufacturers while themselves
marketing private brands of higher and higher value to consumers.
 - Account-specific consumer research
- Major theme events which make the retailer look good to their
consumers
- Multi-category consumer studies
- Software analytics

V. Development of Strategic Alternatives & Options

2. Corporate Leadership to Leverage Scale

Leveraging scale also means committing to ambitious corporate projects paid for
from the top rather than requiring budget-constrained brands or divisions to
commit their funds to projects too costly for them to consider.

3. Leverage Scale with Specific Consumers

- focus on high-value consumer cohorts with intense needs.
- generate the multi-category profit potential

VI. Evaluation and Recommendations & Strategic Choices

P&G’s foundation is household products. These are large businesses that are
growing steadily and reliably generate earnings and cash. Overall company
performance has been driven by these foundation categories for generations.

o In order to apply our strategies, P&G should stay focused on their

customer’s needs and wants and continue to deliver high value products and
customer service.

o Because there are so many different forms of media available today,

targeting markets through specific Medias’ can be a challenge.

o Learn locally but act globally.

o Organize around multi-functional teams.

o Build capabilities to serve lower-income consumers who are not buying

and using P&G products on a regular basis today.

VII. Strategic Implementation & Control Mechanisms

o Implement quality control throughout all of their business units.

 o Improve communications between management and the different business
units.

o Invest heavily in research and development and market research.

o The marketing department should work extensively with data mining

technology in order to learn about their customer base

o Benchmark against competitions marketing campaigns.

o P&G should also invest in risk management for each of the main regions.

o Hire local financial experts in each of their operational regions.

VIII. Pricing Strategy

A new pricing strategy adopted recently by Cincinnati-based Procter & Gamble
Co., the nation's largest non-tobacco consumer products maker. The new
strategy represents a basic change in the way P&G sells its goods to grocery
wholesalers and retailers, and could lead to the end of the traditional grocer's
marketing strategy of attracting customers by periodically featuring sales on
certain popular products.
More significant to retailers and wholesalers, the new policy, if instituted on
the wide scale envisioned by P&G, could effectively wipe out a major source
of income to those vendors, perhaps threatening their very livelihood.
 IX. Competition
PG Competitors

R&D as Revenue
Net R&D
Revenue Operating % of Growth Major
Co. income Spending
($M)* Margin Total from Brands/Products
($M)* ($M)
Revenue 2006/2007*

Pantene, Crest,
Procter
$12,07 Tide, Downy,
& $83,503 20.46% $2,226 2.67% 9.00%
5 Bounty, Folgers,
Gamble
Gillette, Duracell

AXE, Lipton, Slim-

Unilever Fast, Vaseline,
$58,508 $6,022 13.05% $1,264 2.16% 1.37%
NV (UN) Dove, Ben &
Jerry\'s

Clorox Laundry
Clorox Bleach, Pine-Sol
Company $5,273 $461 13.14% $111 2.11% 8.79% Cleaner, Glad
(CLX) Plastic Bags, Brita
Water Filters

Kimberly- Huggies Diapers,

Clark $18,266 $1,822 14.32% $277 1.52% 9.07% Kleenex Tissue,
(KMB) Scott Paper Towels

Colgate Toothpaste,
Colgate
Colgate-
Toothbrushes, Irish
Palmolive
$13,790 $1,737 19.24% $247 1.79% 12.68% Spring Soap,
Company
Palmolive Soap,
(CL)
SpeedStick
Deodorant

Garnier Fructis,
L'oreal L\'Oreal Paris,
$24,842 $3,870 20.21% $815 3.28% 8.06%
(LRLCY) Maybelline, Ralph
Lauren
X. Company Profile

The Procter & Gamble Company

Type Public (NYSE: PG)

Founded 1837
One Procter & Gamble Plaza,
Headquarters
Cincinnati, Ohio, USA 45202
A. G. Lafley, Chairman,
Key people
President, and Chief Executive.
Industry Consumer goods
Revenue ▲ US$83.503 billion (2008)
Net income ▲ US$12.075billion (2008)
Employees 138,000
Website www.pg.com

XI. Slogan

The slogan used by Procter & Gamble for the product is

"Rely It even absorbs the worry." .... earn and Thrive."

The slogan for P&G's

"Live, Learn & thrive”.

 Financial Highlights

Fiscal Year End: June

Revenue (2008): 83503.00 M

Revenue Growth (1 yr): 9.20%

Employees (2008): 138,000

Employee Growth (1 yr): 0.00%

Market share (NYSE):

Last Trade:52.08 $Trade Time:10 JunChange:0.00 (0.00%)Prev.

Close:52.08Open:52.69Bid:N/AAsk:N/A1y Target Est.:57.20 $
Key People

Chairman, President, and CEO: Alan G. (A.G.) Lafley

COO: Robert A. (Bob) McDonald

Global Marketing Officer: Marc S. Pritchard

Contact Information
Address:
1 Procter & Gamble Plaza
Cincinnati, OH 45202
Phone:
513-983-1100
Fax:
513-983-9369
Thank You