GROUP 6

Prepared by:MILAN MEHTA

The Procter & Gamble The Procter & Gamble CompanyCompany

TypeType PublicPublic

FoundedFounded 18371837

HeadquartersHeadquarters Cincinnati, Ohio, USACincinnati, Ohio, USA

Key peopleKey people Bob McDonald, Bob McDonald, Chairman and CEOChairman and CEO

IndustryIndustry Consumer goodsConsumer goods

RevenueRevenue US$79.03 billion US$79.03 billion (2009)(2009)

Net incomeNet income US$13.44US$13.44 billion billion (2009)(2009)

EmployeesEmployees 140,000 (2009)140,000 (2009)

Procter & Gamble Co.Procter & Gamble Co. is a Fortune 500, American global corporation is a Fortune 500, American global corporation based in Cincinnat, Ohio.based in Cincinnat, Ohio.

It manufactures a wide range of consumer goods.It manufactures a wide range of consumer goods.

As of 2008, P&G is the 23rd largest US company by revenue and 14th As of 2008, P&G is the 23rd largest US company by revenue and 14th largest by profit. largest by profit.

It is 10th in Fortune's Most Admired Companies list (as of 2007).It is 10th in Fortune's Most Admired Companies list (as of 2007).

P&G is credited with many business innovations including brand P&G is credited with many business innovations including brand management and "Connect & Develop" innovation.management and "Connect & Develop" innovation.

According to the Nielsen Company, in 2007 P&G spent more on U.S. According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company.advertising than any other company.

Organizational structureOrganizational structure

It comprises of three units :It comprises of three units :

Global Business UnitsGlobal Business Units

Employee Engagement / Cultural environmentEmployee Engagement / Cultural environment

P&G Brands and P&G People are the foundation of P&G’s success. P&G People bring the values to life as we focus on improving the lives of the world’s consumers.

Purpose

They 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 Values1- Integrity

• They always try to do the right thing.• They are honest and straightforward with each other.• We uphold the values and principles of P&G in every action and decision.

2- Leadership

• They are all leaders in their area of responsibility.• They have a clear vision of where we are going.• They focus thier resources to achieve leadership objectives and strategies.

3- Ownership

• They accept personal accountability to meet the business needs, improve our systems and help others improve their effectiveness.• They all act like owners, treating the Company’s assets as thier own

4- Passion for Winning

• They are determined to be the best at doing what matters most.• They have a compelling desire to improve and to win in the marketplace.

5- Trust

• They respect colleagues, customers and consumers.• They have confidence in each other’s capabilities and intentions.• They believe that people work best when there is a foundation of trust.

PrinciplesPrinciples

These are the principles and supporting behaviors that flow from our Purpose and Values:

1) They show respect for all individuals. 2) The interests of the company and the individual are inseparable. 3) They are strategically focused in our work. 4) Innovation is the cornerstone of our success. 5) They are externally focused. 6) They value personal mastery. 7) They seek to be the best. 8) Mutual interdependency is a way of life.

Basis of Purpose, Value and Principles

Core StrengthsCore StrengthsP&G focuses on five core strengths required to win in the consumer products industry P&G focuses on five core strengths required to win in the consumer products industry

Product InnovationProduct InnovationInsight MattersInsight MattersThey combine two key strengths- consumer They combine two key strengths- consumer

understanding and science- to deliver understanding and science- to deliver sustainable innovations that don’t require trade-sustainable innovations that don’t require trade-offs in performance or value.offs in performance or value.

Consumer InsightBecause they are in touch with the reality of consumers, make innovation decisions based on their needs.

Technological InsightA second decision making factor comesfrom their unique, holistic view of technology.Their science is based upon life cyclethinking, a discipline that helped pioneering.

Product Innovation HighlightsProduct Innovation HighlightsDramatic Changes in FormulationDramatic Changes in FormulationAriel Excel Gel, the new generationAriel Excel Gel, the new generationof Ariel detergents, was designed fromof Ariel detergents, was designed fromscratch for ultimate cleaning at lowscratch for ultimate cleaning at lowtemperatures. This formulation changetemperatures. This formulation changehas helped bring about reductions inhas helped bring about reductions inenvironmental impact, expending lessenvironmental impact, expending lessenergy, water, packaging, and waste.energy, water, packaging, and waste.

Systemic Thinking in PackagingP&G has experts in packagingSustainability working in every category.They are looking at packagingimprovements systemically, from shipmentto shelf to use in the consumer’shome. this has resulted in 136,000 metric Tons of packaging material avoidance.

Operational ImprovementOperational ImprovementTheir strategy for making sustainable improvements to Operations impactsall parts of the supply chain. It continues to deliver strong results behinda three pronged approach: Manufacturing , Finished product logistics and Supplier engagement.

Manufacturing Reducing Waste, Water, Energy, and CO2 Giving Waste New Life through Re-use

PROGRESSPROGRESS(percent Reduction per (percent Reduction per

unit unit production)production)

SinceSinceJuly 2007July 2007

SinceSinceJuly 2002July 2002

Energy UsageEnergy Usage 11%11% 48%48%

COCO22 Emissions Emissions 10%10% 52%52%

Waste DisposalWaste Disposal 30%30% 53%53%

Water UsageWater Usage 13%13% 52%52%

Finished product logistics Optimizing Outbound Transportation

For decades, P&G has transported product in a “multi-modal”fashion. But today, They are shifting toward “intermodal” transportation, which uses shipping containers that transfer smoothly from one mode to another.

Reducing Waste in Product Customization

Example of a new display that eliminates all plasticand uses 100% recycled corrugate

Supplier EngagementThey collaborate closely with suppliers across the entire supply chain.

Social ResponsibilitySocial ResponsibilityP&G’s Purpose is to improve the everyday lives of the world’s consumers, now and for generations to come.

P&G`s Live, Learn And Thrive cause are helping children in need around the world to :Get off to a healthy startReceive access to educationBuild skills for life

Examples

Total Quality ManagementTotal Quality ManagementP&G IS CONTINUING TO SET INDUSTRY-LEADING STANDARDS FOR TOTAL QUALITY MANAGEMENT.

It achieved through

1- Employee involvement.2- Continuous improvement.

EMPLOYEE INVOLVEMENT:For employee involvement P&G gives the training to its employees with the passage of time. “Human Resource Department” arranges the training for their employees.

CONTINUOUS IMPROVEMENT:Continuous improvement achieved though:1- Understanding customers’ needs and expectations. 2- Exceeding their promises and commitments. 3- Defining new industry service levels.

SWOT Analysis- Strengths : SWOT Analysis- Strengths :

Leading Market PositionLeading Market Position

Diversified and innovative product PortfolioDiversified and innovative product Portfolio

Strong Finances in past yearsStrong Finances in past years

SWOT analysis- WeaknessesSWOT analysis- Weaknesses : :

Quality control ProblemQuality control Problem

Decreased Revenues in their Northeast Asian MarketDecreased Revenues in their Northeast Asian Market

SWOT analysis- Opportunities :SWOT analysis- Opportunities :

Developing MarketsDeveloping Markets

Demographic trends across the worldDemographic trends across the world

SWOT analysis- Threats :SWOT analysis- Threats :

CompetitorsCompetitors

Rising cost of energy pricesRising cost of energy prices

Economic slowdown in the US and Euro zoneEconomic slowdown in the US and Euro zone

New RegulationsNew Regulations

Main Competitors :Main Competitors :

Johnson & Johnson Co.Johnson & Johnson Co. Kimberly-Clark Co.Kimberly-Clark Co. Unilever Co.Unilever Co.

Target Markets :Target Markets :

HomeownersHomeowners Stay-at-home parentsStay-at-home parents WomenWomen B2BB2B

EXAMPLE : “Vicks”Marketing Strategy followed by P&GMarketing Strategy followed by P&G

Product: “Vicks”Market Share: Vicks Vaporub is market leader in this segment with a share of 50%. Vicks action 500 has around 40% market share

Sales: Vicks brand accounts for 40% of Company turnover, i.e. Rs. 170 Cr. More Sales during Monsoon period.

Competitors: Amritanjan Bam Zandu Bam Cold Snap Pharma ‘o cold

Product Strategy: Promotional Strategy offering special Coupons. Introduction of new products. Emotional Marketing ( Not selling Vicks selling Mother’s Love ).

Target Customers: Children. Adults. Sinus Patient.

Positioning Strategy : Unique Shape of Cough Drops inhaler & Caplet. Touch Therapy. Mother’s Love Platform.

Segmentation Strategy : On the basis of Age. Kids above the age of 6 months. Youth.

Brand Extention : Day Quil Plus Vitamin C. Vicks Formula 44- Custom Care. Vicks Vaporub with the scent of Lemon.

Packaging : Change of colour from Green to Blue. Global Packing for Vicks – range of products world wide. Packaging changing from blister to Glassine Poly & Brand

name appearing through out on the new glass line Poly Pack.

Labeling :

The Jar has a paper label with the familiar Vicks livery in blue, red, green & white.

Label includes : Vicks Vaporubs. Vicks and Vaporub are reg. trade marks of Richardson- merrell inc. Instruction on the label indicate that the Ointment can be used for

colds of Children and Chest or inhale in stream.

Blue colour signifies Love, Sprituality, Peace & Happiness.

CURRENT STATUSProcter & Gamble Hygiene & Healthcare Ltd. (BSE)

                               

2131.35 -33.25 (-1.54%)  8 Apr 3:52 pm IST

 

Open:  2154.00

High:  2170.00

Low:  2121.00

Volume:  1,502

Avg Vol:  N/A

Mkt Cap:  69.19B