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 Febreze Air Fresheners Antiperspirants & Deodorants Old Spice Secret Baby & Child Care Charmin Children's Pepto Clearblue Easy Dreft Luvs Pampers Pampers Kandoo Pampers UnderJams Puffs Batteries Duracell

Safeguard Zest Colognes Old Spice P&G Professional

Hair Color Clairol

Health Care Align Braun Clearblue Easy Fibersure Metamucil Pepto-Bismol Prilosec OTC Vicks Household Cleaners Bounty Febreze Air Fresheners Mr. Clean Mr. Clean AutoDry Carwash Swiffer

Cosmetics CoverGirl Max Factor Dish Washing Cascade Dawn Ivory Joy Feminine Care Always Tampax Hair Care Aussie Head & Shoulders

Body Wash & Soap Camay Ivory Olay Old Spice

Herbal Essences Infusium 23 Pantene

Laundry & Fabric Care Bounce Cheer Downy

Dreft Era Febreze Air Fresheners Gain Ivory Tide Oral Care Braun Crest Crest Glide Crest Whitestrips Fixodent Gleem Scope Oral-B Paper Products Bounty Charmin Puffs

Pet Nutrition Eukanuba Iams Prescription Drugs Actonel Asacol Didronel Enablex Macrobid Macrodantin Prestige Fragrances BALDESSARINI BOSS BOSS SKIN bruno banani ESCADA Ghost Giorgio Beverly Hills

HUGO LACOSTE NAOMI CAMPBELL PUMA Shaving Braun Gillette Fusion Gillette M3Power Gillette SatinCare Gillette Venus Skin Care Braun Gillette Complete Skincare Olay Small Appliances Braun Snacks 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 Net Sales ($M) Sales % Net Total Capital Billion% Total Growth Total Earnings Assets Expenditures Dollar Earnings from Sales ($M) ($M) ($M) Brand(s) 2007 Head & Shoulders, Olay, Pantene, Wella Gillette, MACH3, Braun, Fusion Actonel, Always, Crest, Oral-B Folgers, Iams, Pringles Ariel, Dawn, Downy, Tide, Duracell, Gain Bounty, Charmin,

Beauty

$19,515 23% $2,730

23%

9.09%

$12,260 $465

Grooming $8,254

10% $1,679

14%

10.99% $27,406 $305

Health Care Snacks, Coffee, and Pet Care Fabric and Home Care

$14,578 17% $2,506

21%

8.95%

$10,597 $450

$4,852

6%

$477

4%

6.94%

$2,275

$105

$23,831 29% $3,422

28%

11.00% $13,772 $765

Baby and $13,898 17% $1,728 Family Corporate ($1,425) (2%) ($467) TOTAL $83,503 100% $12,075

14% (4%) 100%

9.21%

$8,102

$763

(-47.98 $69,580 $193 %) 9% $143,99 $3,046 2 24 brands 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 o o o Because there are so many different forms of media available today, targeting markets through specific Medias’ can be a challenge. Learn locally but act globally. Organize around multi-functional teams. 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 Net R&D Revenue Operating income Spending ($M)* Margin ($M)* ($M) R&D as Revenue % of Growth Major Total from Brands/Products Revenue 2006/2007*
Pantene, Crest, Tide, Downy, Bounty, Folgers, Gillette, Duracell AXE, Lipton, SlimFast, Vaseline, Dove, Ben & Jerry\'s Clorox Laundry Bleach, Pine-Sol Cleaner, Glad Plastic Bags, Brita Water Filters Huggies Diapers, Kleenex Tissue, Scott Paper Towels

Co.

Procter & Gamble

$83,503

$12,07 20.46% 5

$2,226

2.67%

9.00%

Unilever $58,508 NV (UN)

$6,022 13.05%

$1,264

2.16%

1.37%

Clorox Company $5,273 (CLX)

$461

13.14%

$111

2.11%

8.79%

KimberlyClark $18,266 (KMB)

$1,822 14.32%

$277

1.52%

9.07%

ColgatePalmolive $13,790 Company (CL)

$1,737 19.24%

$247

1.79%

12.68%

Colgate Toothpaste, Colgate Toothbrushes, Irish Spring Soap, Palmolive Soap, SpeedStick Deodorant Garnier Fructis, L\'Oreal Paris, Maybelline, Ralph Lauren

L'oreal $24,842 (LRLCY)

$3,870 20.21%

$815

3.28%

8.06%

X. Company Profile
The Procter & Gamble Company

Type Founded Headquarters Key people Industry Revenue Net income Employees Website

Public (NYSE: PG) 1837 One Procter & Gamble Plaza, Cincinnati, Ohio, USA 45202 A. G. Lafley, Chairman, President, and Chief Executive. Consumer goods ▲ US$83.503 billion (2008) ▲ US$12.075billion (2008) 138,000 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: Revenue (2008): Revenue Growth (1 yr): Employees (2008): Employee Growth (1 yr): 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 June 83503.00 M 9.20% 138,000 0.00%

Chairman, President, and CEO:
COO: Global Marketing Officer:

Alan G. (A.G.) Lafley
Robert A. (Bob) McDonald Marc S. Pritchard

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

Thank You

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