• Presenting By:

– SIKANDAR ALI SYED 34

– UM-E- HAANI FATIMA 39
– MUHAMMAD IRFAN KHAN 21
– WASEEM SIDDIQUI 29
• Presenting For:
– Mr. Shahood Alam (Course Incharge)
– KUBS MBA (eve) 4th SEMESTER
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 P & G’s PROFILE

• Started in 1837 by William Procter and

James Gamble
• First products were soaps and candles
• Procter and Gamble has nearly 300 brands
in more than160 countries
• Main Headquarter in Cincinnati, Ohio
Employ 138,000 people
• Since their expansion, they accumulated
five billion consumers worldwide.
• Revenue - US$ 83.503 billion (2008)
• Net income - US$12.075 billion (2008)
• Key people - A. G. Lafley, Chairman,
President, and Chief Executive.
 P&G GLOBAL RANKING

• 25th largest American company measured

by revenues
• 8th largest corporation in the world by
market capitalization
• 14th when measured by profits
• 6th on fortune’s most admired companies
• 2nd ranking on Fortune’s “Top Companies
for Leaders”
• 3rd ranking on Barron’s “World’s Most
Respected Companies List,”
• 12th ranking on Business Week’s list of
“World’s Most Innovative Companies
• 2nd in the chief executive magazine’s “best
companies for leaders”.
• Advertiser of the Year by Cannes
International Advertising Festival spending
$2.62 billion
 HISTORY

• On April 12, 1837

– William Procter and James Gamble start making
and selling their soap and candles. On August
22, they formalize their business relationship by
pledging $3,596.47 apiece. The formal
partnership agreement is signed on October 31,
1837.
• 1859
– P&G sales reach $1 million.
• 1879
– The inexpensive, but high-quality Ivory soap is
introduced
• 1924
– P&G is one of the first to create a market research
department to study consumer preferences and
buying habits
• 1955
– Crest, the first toothpaste with fluoride clinically
proven to fight cavities, is introduced
• 1961
– Pampers is introduced and eventually replaces
cloth diapers
• 1980
– Sales reach $10 billion
• 2003
– P&G operates in 80 countries worldwide, employing
98,000. Have 13 billion dollar brands in its portfolio:
Charmin, Tide, Pantene, Iams, Folgers, Crest, Olay,
Ariel, Bounty, Downy, Pringles, and Pampers $43.3
billion in net sales in 2003.
• 2004
– P&G's Safe Drinking Water Program wins the World
Business Award from the United Nations Development
Program & International Chamber of Commerce in
support of the UN's Millennium Development goals.
Actonel is P&G's newest billion-dollar brand, and the
first pharmaceutical brand to reach this important
milestone.
• 2005
– P&G and Gillette ($53.4 billion including
common stock) merge into one company and
add five more Billion Dollar Brands to our
product portfolio including Gillette and Braun's
shaving and grooming products, the Oral-B
dental care line and Duracell batteries, placing
Unilever into second place.
 Our History in Pakistan

• Procter & Gamble Pakistan, headquartered in

Karachi, commenced operations in Pakistan in 1991.
• The company presently employs more than 300
people, 99 percent of which are Pakistanis and
creates more than 4,000 jobs indirectly in Pakistan.
• All this makes P&G a more locally focused company.
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.
 Q: How many times has Procter &
Gamble touched YOU?

Procter & Gamble touches people’s lives over

two billion times every day!
 Family of Products

• Personal & Beauty

– Cosmetics, Oral Care, Hair Care
• House & Home
– Laundry care, Dish Soap, Snacks & Coffee
• Health & Wellness
– Prescription drugs, Health Care
• Baby & Family
• Pet Care & Nutrition
• Purpose
– 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
communities in which we live and work to
prosper.
• Core Values
– P&G is its people and the values by which we
live:
• Leadership
• Ownership
• Integrity
• Passion for Winning
• Trust
• Principles
– These are the principles and supporting
behaviors that flow from our Purpose and
Values:
• We show respect for all individuals.
• The interests of the company and the individual are
inseparable.
• We are strategically focused in our work.
• Innovation is the cornerstone of our success.
• We are externally focused.
• We value personal mastery.
• We seek to be the best.
• Mutual interdependency is a way of life.
GLOBAL GROWTH STRATEGY
Our five Sustainability strategies
PROGRESS Cumulative Sales
(in billions of U.S. dollars)
Cumulative sales of sustainable innovation $13.1
products

PROGRESS
(percent reduction per unit Since Since
production) July 2007 July 2002

Energy Usage 11% 48%

CO2 Emissions 10% 52%

Waste Disposal 30% 53%

Water Usage 13% 52%

Since
PROGRESS July 2007

LIVE, LEARN AND THRIVE

Number of Children Reached million 135

CHILDREN’S SAFE DRINKING WATER

Liters of Clean Water Delivered million 930

Days of Disease Prevented million 39

Lives Saved 5,200 >

 SOCIAL RESPONSIBILITY

• Pampers and UNICEF:

– Working Together for Healthy Babies
• Every year, 128,000 people die from maternal and
neonatal tetanus — a completely preventable disease. So
for the fourth year running, Pampers is teaming up with
UNICEF to deliver the vaccines that vulnerable women and
their children need.
• P&G Beauty’s Aqua Collection:
– Supporting Children’s Safe Drinking Water
– Each day, some 4,000 children die as a result of not
having clean drinking water. But a special collection
of P&G Beauty Care products — each with its own
hydration benefit — is helping fight this problem.
• Safeguard:
– Building a Great Wall of Hygiene
• Establishing good hygiene habits early is essential to
protecting children from disease. So Safeguard, in
partnership with the Red Cross and China’s Ministry of
Health, launched the Safeguard Health Great Wall
campaign on October 15, 2008 — Global Hand
Washing Day.
 Corporate Info Structure

• Four Pillars
 Global Business Units (GBU)

• Philosophy:
– Think Globally
• General Role:
– Create strong brand equities
– Robust strategies ongoing innovation in products
– Marketing to build major global brands
• Our GBU:
– Baby & Family Care
– Beauty & Feminine Care
–  Fabric & Home Care
–  Snacks & Beverages
–  Health Care
 Market Development Organizations
(MDO)

• Philosophy:
– Act Locally
• General Role:
– Interface with customers to ensure that
marketing plans fully capitalize on local
understanding
– To seek synergy across programs to leverage
corporate scale
– To develop strong programs that change the
game in our favor at point-of-purchase
• Our MDO Regions:
– North America
– Asia/India/Australia
– Northeast Asia
– Greater China
– Central-Eastern Europe/Middle East/Africa
– Western Europe
– Latin America
 Global Business Services (GBS)

• Philosophy:
– Enabling P&G to win with Customers and Consumers
• General Role:
– Provide services and solutions that enable the
company to operate efficiently around the world
– Collaborate effectively with business partners
– Help employees become more productive
• Our GBS Centers:
– GBS Americas located in Costa Rica
– GBS Asia located in Manila
– GBS Europe, Middle East and Africa/Newcastle,
England
 Corporate Functions (CF)

• Philosophy:
– Be the Smartest and the Best
• General Role:
– Ensure that the functional capability integrated
into the rest of the company remains on the
cutting edge of the industry
– We want to be the thought leader within each CF
• Our Corporate Functions:
– Customer Business Development
– External Relations
– Finance & Accounting
– Human Resources
– Information Technology
– Legal
– Marketing
– Consumer & Market Knowledge
– Product Supply
– Research & Development
– Workplace Services
 Target Markets

• Homeowners

• Stay-at-home parents

• Women

• B2B
 Main Competitors

• Johnson & Johnson Co.

• Kimberly-Clark Co.

• Unilever Co.
 SWOT Analysis-Strengths

• Leading Market Position

• Diversified and innovative product Portfolio

• Strong Finances in past years

 SWOT analysis-Weaknesses

• Quality control Problem

• Decreased Revenues in their Northeast

Asian Market
 SWOT analysis-Opportunities

• Developing Markets

• Demographic trends across the world

 SWOT analysis-Threats

• Competitors

• Rising cost of energy prices

• Economic slowdown in the US and

Eurozone

• New Regulations
 WHAT THEY SELL

• Baby, Feminine and Family Care

• Fabric and Home Care

• Health Care

• Beauty Care

• Food and Beverage

TOP SELLERS
GLOBAL PRESENCE
TOP BRANDS IN PAKISTAN
NET SALES BY BUSINESS SECTOR

Baby, Feminine
and Family
Care
Fabric and
47% Home Care

Health Care
20%
6%
13% 14%
Beauty Care

Food And
Beverage
MARKET SHARE IN THE HOUSEHOLD
PRODUCT INDUSTRY

Procter &
Gamble
Other
19%
13%
Companies
12%
Gillette

6% Colgate-
46% 4%
Palmolive
Avon
Products
McKesson
 GROWTH RATE RATIO
Growth Company Industry Sector S&P 500
rates (%)
Sales (MRQ) vs 7.64 8.51 6.22 11.54
Qtr. 1 Yr. Ago
Sales (TTM) vs 7.50 7.80 7.49 7.60
TTM 1 Yr. Ago
Sales-5 Yr. Growth 2.39 3.17 3.65 10.08
Rate
EPS (MRQ) vs 23.61 25.10 16.25 16.95
Qrt. 1 Yr. Ago
EPS (TTM) vs 65.09 44.14 28.00 25.61
TTM 1 Yr. Ago
EPS 5 Yr. Growth 6.31 6.80 9.76 10.37
Rate
Capital Spending- -4.64 -3.78 -4.35 6.84
5 Yr. Growth Rate

Proctor and Gamble’s five-year growth rate is below the average compared to the
industry average but it still holds strong due to the company’s size.
 FINANCIAL CONDITION RATIOS

Financial Company Industry Sector S & P 500

Strength
Quick Ratio 0.71 0.68 0.66 1.26

Current Ratio 1.17 1.20 1.22 1.78

LT Debt to Equity 0.73 1.93 1.29 0.72

Total Debt to 0.91 2.29 1.57 1.06

Equity
Interest Coverage 13.53 15.49 16.95 12.09

P&G is currently well leveraged compared to the rest of the industry. Its total debt to
equity is much lower than its sector and the rest of the industry. Interest coverage is
13.53 times EBIT.