PRESENTED BYSHERIN VARUGHESES2 MBAMACFAST COLLEGE
Procter & Gamble Co. (P&G) is an American company based inCincinnati, Ohio that manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene andHealth Care Ltd. and P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of Indias fastestgrowing Fast Moving Consumer Goods Companies with a turnoverof more than Rs. 500 crores. It has in its portfolio famous brands like Vicks & Whisper. P&GHome Products Limited deals in Fabric Care segment and Hair Caresegment. It has in its kitty global brands such as Ariel and Tide in the FabricCare segment, and Head & Shoulders, Pantene, and Rejoice in theHair Care segment. Today, Proctor & Gamble is the second largest FMCG company inIndia after Hindustan Lever Limited.
product categorization into different sectors :Beauty Segment: Head & Shoulder, Olay, Pantene, Wella Grooming Segment: GilletteHealth Care Segment: Oral-B, Whisper, Vicks Fabric Care & Home Care Segment: Ariel, Tide andDuracell, AmbiPur Baby Care & Family Home Care Segment: Pampers
Focusing Our Growth Strategy Our long track record of success is based on a time-testedbusiness model — we discover meaningful insights into whatconsumers need and want; we translate those insights intonoticeably superior products focused on those needs; wecommunicate that superiority through advertising that includescompelling claims, performance demonstrations, and superiorbenefit visuals; and we price our products at a point whereconsumers experience superior overall value.All of this drives leadership market share, higher sales andlower costs, which enable us to reinvest in our business andwin on a sustained basis. This model is simple and clear — andwhen we execute it consistently, we win.
We have used this model to build a company with nearly $84billion in sales and more than $10 billion in net earnings.We are focusing P&G’S growth strategy on our biggestopportunities: We are focusing on our 40 largest and most profitableproduct categories in the most important geographic markets.These 40 businesses represent about 50% of sales and nearly70% of operating profit . We are focusing resources on winning with our 20 largestinnovations. We are maintaining strong momentum in developingmarkets, targeting the 10 developing markets with the highestpotential for growth.
Growth of P&G products This model has also enabled P&G to deliver reliable andmeaningful growth over long periods of time, outperformingthe market and performing among the very best in our industry. Measuring from the end of each quarter starting in1980, rolling 10-year returns have exceeded both the S&P 500and the Dow Jones Industrial Average in 82 out of 88periods, or 93% of the time. And rolling 20-year returns haveexceeded both the S&P 500 and the Dow Jones IndustrialAverage in 46 out of 48 periods, or 96% of the time.Within this longer-term track record, there have been shorterperiods of underperformance, as we’ve experienced the pastcouple of years. These have typically been followed by periodsof strong out performance
Within this longer-term track record, there have been shorterperiods of underperformance, as we’ve experienced the pastcouple of years. These have typically been followed by periodsof strong out performance.This past track record does not in any way guarantee futuresuccess. It does reflect, however, the strength of our time testedbusiness model.The model works. Funding it with productivity savings andexecuting it broadly and consistently with discipline is theproven way for P&G to deliver the business and financialresults to which weve committed. This is what we are doingIn fiscal 2012, we delivered 3% organic sales growth overall.P&G has averaged 4% organic sales growth over the pastthree years, achieving 3% to 5% organic sales growth for 11consecutive quarters
In just three years, we’ve added organic sales of $8.5billion, the equivalent of adding a Fortune 300 company toour portfolio.Growth continues to be very strong in developingmarkets, which now generate 38% of P&G’s sales and 44% ofour unit volume.It’s a $32 billion business for P&G, the largest developing-market business of any consumer products company.We see significant remaining growth opportunities as ourbusiness in developing markets is still smaller as a percent ofsales than the developing market businesses of some of ourcompetitors, and we will continue to focus on growing ourbusiness in the largest and most important of these markets.
Strong Growth in Developing MarketsOUR DEVELOPING-MARKET SALES growth has been verystrong over the past ten years. Three years ago, we made an intervention to expand further inthese markets, and we’re growing at nearly double the rate ofthe underlying markets. Developing markets are now a $32 billion business forP&G, generating 38% of sales and 44% of our unit volume.We’re focused on our top 10 developing markets where growthprospects are highest, including the important “BRIC” marketsof Brazil, Russia, India and China, where sales have grown anaverage of 20% over the past decade.
CONCLUSION P&G is the world’s largest and most profitable consumerpackaged goods company, with nearly $84 billion in salesand more than $10 billion in net earnings. We have built a portfolio of 25 billion-dollar brands — each ofwhich generates from $1 billion to more than $10 billion ofsales per year.They span a broad range of product categories — includinghousehold care, beauty, grooming, and personal healthcare —and are household names around the world, includingPampers, Gillette, Tide, Ariel, Downy, Pantene, Head &Shoulders, Olay, Oral-B, Crest, Dawn, Fairy and Always.We have three times more billion-dollar brands in ourcategories than our next-largest competitor and more than mostof our remaining competitors combined.