PROCTER & GAMBLE

CONTENT

1. Concept

2. sector synopsis

3. Major industry contributors

4. Company profile

5. Product offerings
 6. Company Strategies

7. Present & Future

8. Area Of Operation

9. Global Existence

Touching Lives, Improving Life.

Concept:-

Procter and Gamble Company (P&G) was founded by William Procter and
James Gamble, in 1837.

The two men, immigrants from England and Ireland respectively, who had
settled earlier in Cincinnati.
The company prospered during the nineteenth century. In 1859, sales
reached one million dollars. By this point, approximately eighty employees
worked for Procter & Gamble. During the American Civil War, the company
won contracts to supply the Union Army with soap and candles. In addition
to the increased profits experienced during the war, the military contracts
introduced soldiers from all over the country to Procter & Gamble's
products. Once the war was over and the men returned home, they continued
to purchase the company's products

In the 1880s, Procter & Gamble began to market a new product, an

inexpensive soap that floats in water. The company called the soap Ivory. In
the decades that followed, Procter & Gamble continued to grow and change.
The company became known for its progressive work environment in the
late nineteenth century. William Arnett Procter, William Procter's grandson,
established a profit-sharing program for the company's workforce in 1887.
He hoped that by giving the workers a stake in the company, they would be
less inclined to go on strike.

Over time, the company began to focus most of its attention on soap,
producing more than thirty different types by the 1890s. As electricity
became more and more common, there was less need for the candles that
Procter & Gamble had made since its inception. Ultimately, the company
chose to stop manufacturing candles in 1920

In the early twentieth century, Procter & Gamble continued to grow. The
company began to build factories in other locations in the United States,
because the demand for products had outgrown the capacity of the
Cincinnati facilities.

The company's leaders began to diversify its products as well and, in 1911,
began producing Crisco, a shortening made of vegetable oils rather than
animal fats. In the early 1900s, Procter & Gamble also became known for its
research laboratories, where scientists worked to create new products.
Company leadership also pioneered in the area of market research,
investigating consumer needs and product appeal. As radio became more
popular in the 1920s and 1930s, the company sponsored a number of radio
programs. As a result, these shows often became commonly known as "soap
operas".

Procter & Gamble has expanded dramatically throughout its history, but its headquarters
still remains in Cincinnati.

Procter & Gamble also was the first company to produce and sponsor a
prime-time show.
Sector synopsis:-
Procter & Gamble is the biggest of its competitors and boasts the broadest
and biggest portfolio of products in markets over 300 branded products in
more than 180 countries. There are a number of companies that P&G
competes with in each of its product categories, including Clorox Company
(CLX), Kimberly-Clark (KMB), Colgate-Palmolive Company (CL),
Energizer Holdings (ENR), L'Oreal and others. However, P&G is by far
ahead of its competitors in terms of revenue and possesses a significantly
higher operating margin than any of its competitors as well.

The Indian FMCG sector is the fourth largest sector in the economy
with a total market size in excess of US$ 13.1 billion.It has a strong MNC
presence and is characterised by a wellestablished distribution network,
intense competition between the organised and unorganised segments and
low operational cost. Availability of key raw materials, cheaper labour costs
and presence across the entire value chain gives India a competitive
advantage.

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$
33.4 billion in 2015. Penetration level as well as per capita consumption in
most product categories like jams, toothpaste, skin care, hair wash etc in
India is low indicating the untapped market potential. Burgeoning Indian
population, particularly the middle class and the rural segments, presents an
opportunity to makers of branded products to convert consumers to branded
products.

Growth is also likely to come from consumer 'upgrading' in the matured

product categories. With 200 million people expected to shift to processed
and packaged food by 2010, India needs around US$ 28 billion of
investment in the food-processing industry.

Automatic investment approval (including foreign technology

agreements within specified norms), up to 100 per cent foreign equity or
100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment,
is allowed for most of the food processing sector.

• Growth
The Indian rural FMCG market is something no one can overlook. Increased
focus on farm sector will boost rural incomes, hence providing better growth
prospects to the FMCG companies. Better infrastructure facilities will
improve their supply chain.

FMCG sector is also likely to benefit from growing demand in the market.
Because of the low per capita consumption for almost all the products in the
country, FMCG companies have immense possibilities for growth. And if
the companies are able to change the mindset of the consumers, i.e. if they
are able to take the consumers to branded products and offer new generation
products, they would be able to generate higher growth in the near future.

It is expected that the rural income will rise in 2007, boosting purchasing
power in the countryside. However, the demand in urban areas would be the
key growth driver over the long term. Also, increase in the urban population,
along with increase in income levels and the availability of new categories,
would help the urban areas maintain their position in terms of consumption.

At present, urban India accounts for 66% of total FMCG consumption, with
rural India accounting for the remaining 34%. However, rural India accounts
for more than 40% consumption in major FMCG categories such as personal
care, fabric care, and hot beverages. In urban areas, home and personal care
category, including skin care, household care and feminine hygiene, will
keep growing at relatively attractive rates. Within the foods segment, it is
estimated that processed foods, bakery, and dairy are long-term growth
categories in both rural and urban areas.

• Scope of FMCG
The Indian FMCG sector with a market size of US$13.1 billion is the fourth
largest sector in the economy. A well-established distribution network,
intense competition between the organized and unorganized segments
characterizes the sector.

FMCG Sector is expected to grow by over 60% by 2010. That will translate
into an annual growth of 10% over a 5-year period. It has been estimated
that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs
92,100 crores in 2010.
Hair care, household care, male grooming, female hygiene, and the
chocolates and confectionery categories are estimated to be the fastest
growing segments, says an HSBC report.

Rs 1,200-crore shampoo segment has been growing between 12 and 15 per

cent while the anti-dandruff segment is growing faster at 25 per cent,
according to the company.

• Significance of FMCG in the P&G

Efficient Consumer Response (ECR) is a global movement in the FMCG

industry with a focus on supply chain management. In India ECR was
founded in 1999 by companies such as Johnson & Johnson (J&J), Hindustan
Lever Ltd (HLL), Procter & Gamble (P&G), Godrej, Nestle,
PricewaterhouseCoopers (PwC), Transport Corporation of India Ltd (TCIL)
and Food World, along with standards-based organization EAN India

Major industry contributors:-

Top competitor:-
1. Johnson & Johnson

2. Kimberly Clark

3. Unilever

Top ten players in Fmcg sector

S. NO. Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
 5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8 Britannia Industries

9.
Procter & Gamble Hygiene and Health
Care
10. Marico Industries

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-the-
counter drugs and products for skin and hair care, baby care, oral care, first
aid, and women's health.
DIRECT COMPETITOR COMPARISON

P&G JNJ KMB UNILever Industry

Market 522.99B
YEAR Cap: 203.76B 2005 182.54B 200627.38B 2007 1 72.42M
Employees: 138,000
Procter & gamble 56714 119,000 N/A
68222 179,000
76476 153
Rev. Growth 9.40%------ 16.60% 10.50% 11.30% 7.40%
Johnson & ------ 53324
Net Income
Johnson 10.96B 10.58B 1.82B 6.26B1 217.00K
Kimberly clark ------ ------ 16747
Unilever ------ ------ 52300

ANNUAL INCOME STATEMENTS

All amounts in millions of US Dollars
Year Revenue Gross Profit Operating Income Total Net Income
Jun 76,476.0 39,790.0 15,450.0 10,340.0
07
Jun 68,222.0 35,097.0 13,249.0 8,684.0
06
Jun 56,741.0 28,937.0 10,927.0 7,257.0
05

Profile :-
The Procter & Gamble Company (P&G) is a brand behemoth. The world's
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.

On January 27, 2005, the Company entered into an agreement to acquire the
Gillette Company. The Gillette Company is engaged in the male grooming
category that includes blades, razors and shaving preparations, and in
selected female grooming products
.
Gillette is also engaged worldwide in the alkaline batteries and toothbrushes
industry.In addition to building our billion-dollar brands, we also intend to
keep investing in new brands—like Febreze and Swiffer. P&G have a
strong record on new brands.

P&g also made several acquisitions over the past few years that have
brought important new brands into our portfolio: bigger acquisitions like
Tambrands, Iams and Clairol; and smaller acquisitions like "Moist Mates,"
which we've introduced as Charmin "Fresh Mates," and the electric
toothbrush we've re-introduced as Crest "Spinbrush."

Vision:-
Be, and be recognized as, the best consumer products and services company
in the world.
PVP of P&G:-
Purpose:-

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

Values:-
P&G is its people and the values by which we live.
We attract and recruit the finest people in the world. We build our
organization from within, promoting and rewarding people without regard to
any difference unrelated to performance. We act on the conviction that the
men and women of Procter & Gamble will always be our most important
asset.

Principles:-

Show Respect for All Individuals. create and deliver products,

packaging, and concepts that build winning brand equities. build
superior relationships with all the parties who contribute to
fulfilling our Corporate Purpose, including our customers,
suppliers, universities, and governments.

HEAD OFFICE:-
 Procter & Gamble headquarters in Cincinnati, Ohio.

1 Procter & Gamble Plaza

Cincinnati, OH 45202
United States
Phone: 513-983-1100
Fax: 513-983-9369

MANAGEMENT OF P&G:

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

• President, Global Business Units :- Susan E. Arnold.
• Vice Chairman, Global Brand Building Training :- Bruce L. Byrnes.

P&G In INDIA:-
Procter & Gamble's relationship with India started in 1951 when Vicks
Product Inc.
In October 1985, Richardson Hindustan Limited (RHL) became an affiliate
of P&G and thus P&G India was formed. RHL is home to the mammoth
brand Vicks (& Clearasil). 1989 saw the launch of Whisper followed by
Ariel in 1991. By 1993, P&G increased its stake in P&G India to 100%. In
the same year, the detergent business was divested to P&G Home Products
Limited thereby leaving P&G Hygiene and Healthcare Limited (officially
being called so from 1999). In the same year, Mediker was also divested to
Marico Industries.

P&G Home Products Limited started its jouney with Ariel in 1993.
Subsequently, it entered the Hair Care Category by the launch of Pantene
Pro-V in 1995.
Head & Shoulders was launced in 1997.
Tide came along in 2000. 2003 saw the launch of Pampers and Rejoice was
launched in 2004.

Indian brand ambassador of p&g

Susmita sen - Olay

Kareena kapoor – head & shoulders’
Preity zinta – head & shoulders’
Lara dutta-pantene

Procter & Gamble has its General Office at

Cardinal Gracias Road,

Chakala,
Andheri (E),
Mumbai - 400099
Maharashtra, India.
Tel : (+22) 2826 6000

PRODUCT OFFERINGS
Category Segment Brand
Paper Diapers Pampers
Baby Wipes Luvs
Sanitary Products Always
Alldays
Laundry & Cleaning Detergents Tide
Products Fabric Softeners Ariel
Dish Washing Liquids Cheer
Air Freshener Bonux
Downy
Fairy
Febreze
Health & Beauty Care Personal Care & Home Braun
Appliances Gillette
Grooming Oral-B
Dental Care Wella
Hair Care Camay
Soaps Zest
Shower Gels Olay
Shampoos Camay
Tooth Paste Head & Shoulders
Body Wash Gels Pert Plus
Cosmetics Pantene
Male Toiletries Olay
Oil Of Olay
Old Spice
Pringles
Food Potato Chips Pringles
Batteries Consumer & Industrial Duracell
Batteries
Products Available In INDIA :-

Hair Care:
• Pantene
• Head & Shoulders
• Rejoice

Baby Care
• Pamper

Fabric Care
• Ariel
• Tide detergent
• Tide Bar
Health Care Product
• Vicks
• Whisper

Men care
• Gillette

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.

1. 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.

2. 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.

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

o 4 percent to 6 percent topline growth, excluding foreign exchange
effects.
o Double-digit core earnings-per-share growth.
o Total shareholder return in the top third of P&G's peer group.

4. 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 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 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 2,199
crore

Engineering products would soon be sourced from India instead of Japan.

Area Of Operations
The company's operations are categorized into 3 "Global Business Units"
with each Global Business Unit divided into "Business Segments,"
according to the company's June 2007 earnings release.

• Beauty
o Beauty segment
o Grooming segment

• Household Care
o Baby Care and Family Care segment
o Fabric Care and Home Care segment

• Health & Well-Being

o Health Care
o Snacks, Coffee and Pet Care

Global presence

P&G is a global company with the annual turnover of $68 bln in fiscal year
2005/2006 and with 1.6 mln shareholders around the globe. P&G operates in
more than 160 countries and employs around 135,000
It is organized along seven geographic areas: North America, Western
Europe, Northeast Asia, Latin America, Central and Eastern Europe/Middle
East/Africa, Greater China and ASEAN/Australasia/India.
Operating in Russia since 1991, P&G Russia is now one of the fastest
developing subsidiaries of the Procter & Gamble Company. It has in Russia
a solid portfolio of over 70 P&G brands, the key of them are Ariel, Tide,
Fairy, Blend-a-med, Pampers, Always, Pantene, Head & Shoulders, Wella,
Gillette and possesses leading market shares in 3/4 of the categories where it
operates, esp. detergents, shampoos and diapers.

AWARDS:-
2007:1.Susan Arnold ranked #7 in 2007.she was included on the list 5 times.
– Fortune magazine(most powerful women)

2. Received consumer goods technologyaward by Wharton school of

business in 2007.

2006: P&G is ranked as the #3 Most Admired Company globally and #4

Most Admired company in the U.S, according to Fortune Magazine
2006 list (one of the most prestigious business magazines).

2005: P&G is ranked number one in the Top 20 companies for Leaders,
top co-sponsored bye the Hay Group and Chief Executive magazine.

Some new products:-

Personal beauty:

NEW Cover Girl

HEATH AND WELLNESS:-

 LashBlast Mascara — Now In
Scope!

New Scope White Mouthwash Wake Up to a Cleaner Mouth