Procter& Gamble

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Transcript of Procter& Gamble

PROCTER & GAMBLEWE TOUCH LIVES IN SMALL BUT MEANINGFUL WAY

Submitted To: Sir Imran Yousaf Submitted By: Sehrish Tufail Saba Khan Amna Yousaf Batch : BBA 19 (B)

INTERNATIONAL ISLAMIC UNIVERSITY, ISLAMABAD

HISTORY:William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England and Ireland, respectively, who had settled earlier in Cincinnati, who met as they married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born. In 1837, Procter and Gamble was founded in Cincinnati by William Procter, a candle maker, and brother-in-law Gamble, a soap maker. Their joint venture started one of the most influential companies in all American industry. In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats in water. The company called the soap Ivory. It was the company's first product being introduced in 1879. For generations, Procter and Gamble has been built by scientists and consumer researchers; the latter finding out what the public wants and needs, and the former improving upon old products or inventing new ones to match these needs and desires. 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. Several products were developed during the time period when William Procter's son, William Alexander Procter, took over the company (1890-1907.) William Cooper Procter began working in the company in 1883 and served as president of

the company from 1907-1930. During this time, the company's sales rose from $20 million to $200 million. This was a period of growth in which the company built several plants: five in the United States, one in Canada, and one in England. 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. William Cooper Procter was a pioneer in many labor relation reforms. Procter and Gamble became the first American company to give half holidays on Saturdays and set up a profit-sharing plan in the same year. Company policy was reworked in 1920, so that all employees were guaranteed 48 weeks of work per year. Other firsts include a disability pension plan, a life insurance plan, and employee representation on the board of directors. Procter & Gamble acquired a number of other companies that diversified its product line and significantly increased profits. Procter & Gamble has dramatically expanded throughout its history, but its headquarters still remains in Cincinnati. Today, P&G; goods are found in 98 percent of all American households. P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study. P&G identify common consumer needs, develop new product innovations and build its brands through effective commercial innovations, marketing and sales.

INTRODUCTION:Procter & Gamble (P&G) was set up by William Procter and James Gamble in April 1837 to manufacture soap and candles in the U.S. Today it is a $79 Billion personal care and health and wellness company, manufacturing a broad range of products and employing 140,000 people all over the world. P&G's products are sold in 160 countries. P&G has operations in more than 80 countries, with more than 300 brands. These include beauty care, household care and Gillette products. Three billion times a day, P&G brands touch the lives of people around the world. The Procter & Gamble Company (P&G) is a giant in the area of consumer goods. The leading maker of household products in the United States. In 2005 P&G changed its culture from a conservative, slow-moving, bureaucratic behemoth to that of a modern, fast-moving, Internet-savvy organization. Its new spirit of openness is most evident on the Internet. 3 years ago, it was a stodgy, nondescript site where no one other than investors or job seekers had any reason to go to. Today, you see a consumer-friendly portal with loads of information about P&G products. Committed to remaining the leader in its markets, P&G is one of the most aggressive marketers and is the largest advertiser in the world. Many innovations that are now common practices in corporate America--including extensive market research, the brand-management system, and employee profit-sharing programs-were first developed at Procter & Gamble.

MISSION:Procter and Gamble is one of the most admired companies in the world. They take pride in their products, values and principles and involvement in the world. Their mission or purpose reflects this pride. Their mission, as stated on their webpage, is that 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. Procter and Gambles quality products are the result of their massive investment in research and development. They are continually improving existing products and brands while creating new products. They understand what their consumer wants and have the technology to develop the products that will meet these wants. P&G is its people & the values by which they live. They recruit the finest people in the world. They build the organization from within, promoting and rewarding people without any difference unrelated to performance. They work on the conviction that the people of P&G are the most rewarding asset.

VISION:

Their vision is, To be recognized as, the best consumer products and services in the world. Having clear vision of where they are going, they are focusing the resources to achieve leadership objectives and strategies as well as developing the capability to deliver the strategies and eliminate organizational barriers. Procter and Gamble will continue to serve consumers by continuously innovating products that will allow them to be leaders in household and personal care, health care, and food products. To produce products with the utmost care to give nothing but quality to our communities. And to continue to grow so that we can maximize our shareholders wealth.

Beyond just making the best products, Procter and Gamble tries to improve the communities that they touch around the world. The company believes they have a social responsibility to these communities. On the basic level, they provide products that improve the lives of their consumers in terms of health and convenience. By treating their employees fairly they contribute to their social and financial well-being. On the global level, they give aid to philanthropic programs such as Humanitarian and Disaster Relief. Procter and Gamble also produces products that are safe to the environment in both production and in their use. They strive to better the quality of life for everyone both now and in the future.

GEOGRAPHIC SEGMENTATION:P&G has expanded significantly, but its headquarters still remains in Cincinnati. Today, P&G; goods are found in 98 percent of all American households. With additional products are sold worldwide, from the Arabian Peninsula to Argentina to India, the company remains committed to marketing superior products. Its manufacturing operations are based in the following countries. United States Canada Mexico Latin America Europe China (31 wholly-owned factories) and other parts of Asia Africa Australia

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. Procter & Gamble is marketing a range of consumer goods products including 13 brands comprising shampoos, detergents, soaps, baby care, feminine protection, and Vicks and snacks products. The company, which serves over 5 billion consumers in 140 countries worldwide and markets more than 250 brands, produces bar soaps and repacks bulk shampoos and Pampers brand of diapers into sachets and smaller packs respectively at its Hub plant near Karachi. P&G's Pakistan operation is relatively small and yet it has been

successful to improve the lives of consumers here in Pakistan, like elsewhere in the world. It has served over 140 million consumers in Pakistan, which equals the entire population of the country since its operations 11 years ago. The company is exporting bar soaps manufactured here in Pakistan to Saudi Arabia, Yemen, Syria and Afghanistan where it is in great demand due to its high quality and competitive price. Since the inception of P&G Pakistan, till today they are performing one of the most thriving operations in Pakistan.

HIERARCHY OF THE ORGANIZATION:Chairman, President and CEO

Vice Chairman

Chief Operating Officer

Chief Finance Officer

President, Global Business Unit

Board of Directors

PRODUCT MIX:The company has categorized its products into 3 "Global Business Units" with each Global Business Unit divided into "Business Segments".

1. Beauty Care Beauty segment Grooming segment

2. Household Care Baby Care and Famil