Download - 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