P&G by city manager Kashif Zia

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

Body Wash &

Soap

Camay

Ivory

Olay

Old Spice

Safeguard

Zest

Colognes

Old Spice

P&G Professional

Cosmetics

CoverGirl

Max Factor

Dish Washing

Cascade

Dawn

Ivory

Joy

Feminine Care

Always

Tampax

Hair Care

Aussie

Head & Shoulders

Herbal Essences

Infusium 23

Pantene

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

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. ProductsII. Company Overviewa) Historyb) Operationsc) 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 Environment1. SWOT Analysis (Strengths and Weaknesses)2. Strategic Cost Analysis

VI. Development of Strategic Alternatives & Options1. Leveraging Scale with the Retail Trade2. Corporate Leadership to Leverage Scale3. 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

2008 Segment Information

Net Sales ($M)

% Total Sales

Net Earnings

($M)

% Total Earnings

Sales Growth

from 2007

Total Assets ($M)

Capital Expenditures

($M)

Billion-Dollar

Brand(s)

Beauty $19,515 23% $2,730 23% 9.09% $12,260 $465

Head & Shoulders, Olay, Pantene, Wella

Grooming

$8,254 10% $1,679 14% 10.99% $27,406 $305

Gillette, MACH3, Braun, Fusion

Health Care

$14,578 17% $2,506 21% 8.95% $10,597 $450

Actonel, Always, Crest, Oral-B

Snacks, Coffee, and Pet Care

$4,852 6% $477 4% 6.94% $2,275 $105Folgers, Iams, Pringles

Fabric and Home Care

$23,831 29% $3,422 28% 11.00% $13,772 $765

Ariel, Dawn, Downy, Tide, Duracell, Gain

Baby and Family

$13,898 17% $1,728 14% 9.21% $8,102 $763 Bounty, Charmin,

Corporate ($1,425) (2%) ($467) (4%)(-47.98%)

$69,580 $193

TOTAL $83,503 100% $12,075 100% 9% $143,992 $3,04624 brands over $1B

a) History

IN 1837

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 PakistanQaisar ShareefCountry ManagerProcter & 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, PakistanPhone: 9221-111000764 / 5610469 / 5610489 / 5610497 / 5610612Fax: 9221-5610801URL: 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 StatementWe 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. ValuesIntegrityPassion for WinningLeadershipTrustOwnership

4. Objectiveso Build existing core businesses into stronger global leaderso Grow leading brands, big countries, winning customerso Develop faster-growing, higher-margin with global leadership

potentialo Regain growth momentum and leadership in Western Europeo 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 SuccessSoap 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 UniversitiesOver the last few years P&G has been heavily recruiting the University of Minnesota, US for chemical & mechanical engineers.

3. Links with GovernmentBecause 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)

Opportunities1. Developing markets2. Gillette acquisition3. New products

Threats1. Uncertainty in pharmaceuticals business2. Increase in prices of raw materials3. Intense competition

IV. Analysis of the Internal Environment

1. SWOT Analysis (Strengths and Weaknesses)

Strengths1. Large scale of operations2. Strong branding3. Product innovation4. Developing markets infrastructure

Weaknesses1. Customer concentration2. 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

Co.Revenue

($M)*

Net income ($M)*

Operating Margin

R&D Spending

($M)

R&D as % of Total

Revenue

Revenue Growth

from 2006/2007*

Major Brands/Products

Procter & Gamble

$83,503 $12,075 20.46% $2,226 2.67% 9.00%

Pantene, Crest, Tide, Downy, Bounty, Folgers, Gillette, Duracell

Unilever NV (UN)

$58,508 $6,022 13.05% $1,264 2.16% 1.37%

AXE, Lipton, Slim-Fast, Vaseline, Dove, Ben & Jerry\'s

Clorox Company (CLX)

$5,273 $461 13.14% $111 2.11% 8.79%

Clorox Laundry Bleach, Pine-Sol Cleaner, Glad Plastic Bags, Brita Water Filters

Kimberly-Clark (KMB)

$18,266 $1,822 14.32% $277 1.52% 9.07%Huggies Diapers, Kleenex Tissue, Scott Paper Towels

Colgate-Palmolive Company (CL)

$13,790 $1,737 19.24% $247 1.79% 12.68%

Colgate Toothpaste, Colgate Toothbrushes, Irish Spring Soap, Palmolive Soap, SpeedStick Deodorant

L'oreal (LRLCY)

$24,842 $3,870 20.21% $815 3.28% 8.06%

Garnier Fructis, L\'Oreal Paris, Maybelline, Ralph Lauren

X. Company Profile

The Procter & Gamble Company

Type Public (NYSE: PG)

Founded 1837

HeadquartersOne Procter & Gamble Plaza,

Cincinnati, Ohio, USA 45202

Key peopleA. G. Lafley, Chairman,

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 InformationAddress: 1 Procter & Gamble PlazaCincinnati, OH 45202 Phone:513-983-1100Fax:513-983-9369

Thank You