Procter & Gamble


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Procter & Gamble

  1. 1. Procter & Gamble Touching lives, Improving Life
  2. 2. 2
  3. 3. About COMPANY Headquarters Cincinnati, Ohio, USA
  4. 4. A Humble Beginning Neither William Procter nor James Gamble ever intended to settle in Cincinnati. Although the city was a busy center of commerce and industry in the early nineteenth century, William, emigrating from England, and James, arriving from Ireland, were headed farther west.
  5. 5. 1837 On April 12, 1837, William Procter and James Gamble start making and selling their soap and candles. On August 22, they formalize their business relationship by pledging $3,596.47 apiece. The formal partnership agreement is signed on October 31, 1837. 1850 The Moon and Stars begins to appear in the 1850s as the unofficial trademark of Procter & Gamble.
  6. 6. P&G's former logo originated in 1851. As a crude cross that barge workers on the Ohio River painted on cases of P&G star candles to identify them. P&G later
  7. 7. LOGO
  8. 8. H I S T O R Y 1862 During The Civil War, Procter & Gamble Is Awarded Several Contracts To Supply Soap And Candles To The Union Armies. 1882 Harley Procter Convinces The Partners To Allocate $11,000 To Advertise Ivory Nationally For The First Time. 1915 The Company builds its first manufacturing facility outside the United States, in Canada. Employing 75 people, the plant produces Ivory soap and Crisco. 1917 U.S. Government requests Gillette supply razors and blades for the entire U.S. Armed Forces during WWI.
  9. 9. h i s t 1923 Crisco Sponsors Cooking Shows On Network Radio, Placing P&G Among The Medium’s Advertising Innovators. 1926 In response to the growing popularity of perfumed beauty soaps, P&G introduces Camay o r y
  10. 10. h i s t 1935 The Company expands its international presence with the acquisition of the Philippine Manufacturing Company – the Company’s first operations in the Far East. o r y
  11. 11. h i s t 1939 Just five months after the introduction of television in the U.S., P&G airs its first TV commercial (for Ivory Soap) during the first televised major league baseball game. o r y
  12. 12. h i s t 1946 Tide, “the washing miracle,” is introduced. Tide incorporates a new formula that cleans better than anything currently on the market. Its superior performance at a reasonable price makes Tide the country’s leading laundry product by 1950. o r y
  13. 13. h i s t 1988 The Company announces a joint venture to manufacture products in China. This is the Company’s first operation in the largest consumer market in the world. o r y
  14. 14. According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company; the $2.62 billion spent by P&G is almost twice as much as that spent by General Motors, the next company on the Nielsen list. P&G was named 2008 Advertiser of the Year by Cannes International Advertising Festival.
  15. 15. BRANDS
  16. 16. B R A N D S  Ariel is a brand of laundry detergent/liquid available in numerous forms and scents.  Actonel is a brand of the osteoporosis drug risedronate comarketed by Sanofi-Aventis. Bounty is a brand of paper towel sold in the United States, Canada, and the United Kingdom (rebranded to "Plenty" in the UK after being sold to SCA Svenska Cellulosa Aktiebolaget).  Braun is a small-appliances manufacturer specializing in electric razors, coffeemakers, toasters, and blenders.  Crest is a brand of toothpaste.
  17. 17. B R A N D S     Dawn is a brand of dishwashing detergent. Downy/Lenor is a brand of fabric softener. Duracell is a brand of batteries and flashlights. Fusion is a brand of men's wet shave razors and is the quickest P&G brand to have reached $1 billion in annual sales.  Gain is a brand of laundry detergent and fabric softeners.  Gillette is a safety razor manufacturer.  Head & Shoulders is a brand of shampoo body wash, and deodorant.
  18. 18. B R A N D S  Old Spice is a brand of aftershave and shaving cream.  Ivory is a soap.  Nice 'n Easy is a hair coloring product.  Olay is a brand of women's skin care products.  Oral-B is a brand of toothbrush.  Pampers is a brand of disposable diaper
  19. 19. B R A N D S  Pantene is a brand of hair care products (conditioners/styling aids).  Prilosec OTC is a brand of heartburn medicine comarketed by AstraZeneca.  Pringles is a brand of potato chips.  Puffs is a brand of facial tissues  Secret is a brand of antiperspirant and deodorant.
  20. 20. B R A N D S TAG is a deodorant and body spray.  Tide is a brand of laundry detergent.  Vicks is a brand name of over-the-counter medicines)  Wella is a brand name of hair care products (shampoo, conditioner, styling, and hair color). Whisper is a brand of pantyliners sold primarily in Asian markets.
  21. 21. Our Journey in Pakistan
  22. 22. Faisal Sabzari Country Manager P&G Pakistan
  23. 23. History in Pakistan Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in Pakistan in 1991. Our goal was to become the finest global consumer goods company operating locally in Pakistan. To fulfill this goal, we are serving Pakistani consumers with premium quality brands including Head & Shoulders, Pantene, Ariel, Safeguard, Pampers and Always that strive to make everyday lives better.
  24. 24. As a company with vast global experience, P&G has always believed in the potential Pakistan has as a country. Since its inception in Pakistan, P&G has invested significantly in Pakistan. In 1994 P&G acquired a soap-manufacturing facility Hub, Balochistan. In 2004, a PUR facility was set up to produce P&G’s water purifying technology. The P&G Hub plant is the first of its kind in the world. It provides people access to safe drinking water and is able to export millions of liters across the globe. Today, the Hub plant is equipped with state-of-the-art manufacturing technologies and quality assurance processes and systems, reflecting the company's values of safe, hygienic and ethical manufacturing practices.
  25. 25. P a k i s t a n P&G P&G Pakistan has invested more than Rs. 6 Billion in terms of assets, working capital and market development. With continuous growth and expansion P&G Pakistan has two plants fully established which is located at HUB Baluchistan and Port Qasim Pakistan. Our organization employees more than 250 in Pakistan directly and helps create more than 400 jobs indirectly.
  26. 26. VISION of P&G “To be a leading consumer goods company and to improve the lives of world consumers by providing valuable and innovative products”.
  27. 27. STATEMENT We will provide 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.
  28. 28. GOALS  Think globally act locally  Build major global brands through strong programs based on local understanding.  Improve the environmental quality of its products, packaging and operations around the world.  Produce quality products at very competitive costs.
  29. 29. OBJECTIVES  Bring together transactional activities such as accounting and order management in a single organization to provide services to all P&G units at best in class.  Remains on the cutting edge of the industry.  be a thought leader within each corporate function. To  be the first consumer goods company in Pakistan. To  competitive with other high quality companies in order to help, Be attract, motivate and retain the talent needed to lead and grow P&G’s business.  Strive to be best in all areas of strategic importance to the company.
  30. 30. PEST ANALYSIS POLITICAL AND LEGAL FORCES Rapid changes in the political scenario of the country along with the uncertain policies of the Government have made the whole business community as uncertain. Also there is terrorism prevailing in the important cities of the country like Karachi and Afghan War, which are affecting the business activities. Policies about taxes are changing continuously due to changing government.
  31. 31. PEST ANALYSIS ECONOMIC FORCES • Increasing inflation in the country, persistently reducing the purchasing power of the people and dropping people from high price soap to low price soap and providing more fuel for expansion of local Producers. • Increased import duties on the finished goods and raw material have increased the price of the product, along with this, increasing inflation in the country have made it difficult for soap industry to transfer the whole increased cost at the consumer, thus forcing the industry to operate at a very low margin. • Sanctions imposed by the developed nations on Pakistan due to nuclear experimentation create the uncertainty in business activities.
  32. 32. PEST ANALYSIS SOCIAL Greater The Tendency Towards Urbanization In Pakistan, The Living Standard Which Is Forcing The People To Use Standardized Product And People Are Diverting From The Beauty Soap To Anti Bacterial Soap.
  33. 33. PEST ANALYSIS TECHNOLOGICAL No major and rapid breakthrough in the technology of soap and their manufacturing process, but innovations is required so that the product does not become obsolete. .
  34. 34. SWOT ANALYSIS STRENGTHS  Heavy and impressive promotional plan for safeguard.  Strong social & corporate image of P&G.  Strong financial position of company.  Highly health caring product, safeguard gives protections against germs.  Strong emphasis on environmental prosperity.
  35. 35. SWOT ANALYSIS WEAKNESSES  Safeguard is available in limited pack sizes; only two sizes are available. One is 125 gm and other is 75 gm.  Unwilling to serve low-income market. Price is especially very high towards lower income groups.  Due to limited manufacturing facility, they cannot reduce production cost of the safeguard. But now expansion is being made in hub plant to increase production of safeguard.
  36. 36. SWOT ANALYSIS OPPORTUNITIES  According to the information obtained by Chamber of Commerce and Industry Lahore, the soap market is growing at an annual rate of 9.8%. The main reasons for this growth are:  Rapid growth in population,  High urbanization  Increase in awareness among people about new advancements. Due to this growing market, there are lots of opportunities for P&G to exploit this growing market by introducing new soaps.
  37. 37. SWOT ANALYSIS THREATS  Increasing market share of local Producers. The local Producers are playing an important role in soap industry, because they are providing low price soaps and try to penetrate in their local market by replacing the branded products.  Threat of new entrants is also present. As Lever Brothers is a potential threat in soap industry, because they are already involved in different related businesses and providing raw material for soap production to different manufacturing companies like Colgate Palmolive, etc.  Increasing inflation in the country is also a major threat of P&G because it is reducing the purchasing power of consumers.
  39. 39. Brands In Pakistan
  40. 40. Brands In Pakistan
  41. 41. Brands In Pakistan
  42. 42. Brands In Pakistan
  43. 43. SAFEGAURD & P&G P&G Is The World’s Renowned Manufacturer Of Different Kinds Of Detergents. The Company First Introduced Tide Detergent In 1947 After Years Of Research To Determine How To Make A Cleanser Work Well In Hard Water. Since That Time, They Have Introduced Variety Of Laundry And Cleaning Products With Respect To Demand And Environment Of Different Countries. After A Thorough Research, The Company Introduced/Launched Its Safeguard Brand In Pakistan In 1995.
  44. 44. Brands In Pakistan
  45. 45. Brands In Pakistan
  46. 46. Brands In Pakistan
  47. 47. Brands In Pakistan
  48. 48. Financial Analysis
  49. 49. EPS 51
  50. 50. Financial Analysis 52
  51. 51. Beauty (33% of sales, 37% of net income) The Beauty GBU includes all hair and skin products, medications, razors, electric shavers, and batteries. Proctor & Gamble's global market share in blades and razors is 70%, primarily centered around its Mach3, Fusion, Venus, and Gillette brands.
  52. 52. Household Care (46% of sales, 42% of net income): The Household Care GBU manufactures a wide range of products from snack food to laundry detergent to diapers. The company's baby care market share in 2008 was 29%. Procter & Gamble Co. was the world's top advertiser in 2007, spending almost $9.4 billion worldwide. The company outspent its largest competitor, Unilever, the secondhighest advertiser, by almost two-to-one (Unilever spent $5.2 billion).
  53. 53. Health and Well-Being (23% of sales, 25% of net income): The Health and Well-Being GBU provides oral care, feminine health, pharmaceuticals, snacks, coffee, and pet care products. oral care, the company has the number two market share position at 20% globally. In potato chips and coffee, the company holds a market share of approximately 10% and 33%.
  54. 54. STEPS TO PROTECT ENVIRONMENT In 2007 Procter & Gamble pledged to reduce their carbon emissions, mainly through reduction in packaging along with decreases in water and energy use. The stated emission reduction goal was ten percent by 2012.
  56. 56. ..?? Any Question….??? 72