Procter & Gamble (P&G), founded in 1837, is a leading American multinational consumer goods company headquartered in Ohio, known for its diversified product portfolio and strong brand recognition. The company operates in over 80 countries, focusing on innovation, consumer understanding, and sustainable practices, while facing competition from companies like Unilever and Johnson & Johnson. P&G's internal strategies emphasize human resource development, marketing excellence, and continuous improvement to maintain its competitive advantage and growth in emerging markets.

2. Presented by:

3. HISTORY OF P&G
• P&G is an American multinational consumer
goods.
• Company Headquarter in Ohio , United States.
• P&G was founded in 1837 by William Procter and
James Gamble.
• William a Candle maker and James a Soap maker.
• On 31 October the Procter and Gamble company
was created.

4. FOUNDERS OF P&G

5. P&G HISTORY: A LEGEND OF FIRSTS
• 1837: William Procter and James Gamble started making
and selling candles and soap.
• 1859: After the partnership is formed, P&G sales reached
$ 1 million.
• 1862:During the Civil war, Procter & Gamble was awarded
several contracts.
• 1879:An inexpensive, but high-quality IVORY soap was
introduced.

6. P&G HISTORY: A LEGEND OF FIRSTS
• 1895: King Camp Gillette invented the first safety razor.
• 1896: First color print advertisement- an ad for Ivory.
• 1924: A market research department is created.
• 1937: P&G celebrated its 100th anniversary , Sales reach $230 million.
• 1955: Creates the first tooth paste.
• 1961:Pmpers is introduced and eventually replaces clothes diapers.

7. P&G HISTORY: A LEGEND OF FIRSTS
• 1980: Sales reached $ 10 billion.
• 1987: P&G celebrated its 150th anniversary.
• 2002: P&G developed Naturally feminine pads.
• TODAY P&G operates in 80 countries world wide ,
employing more than 100,000.
• Its slogan is Touching and Improving Lives.

8. ORGANIZATIONAL STRUCTURE

9. ORGANIZATIONAL STRUCTURE
• It specifies the firm formal reporting relationships ,
procedures , controls and authority decision.
• It is comprised of Global business units , Selling and Market
operations , Global Business Service and Corporate
Functions.
• Global Business Units are responsible for developing
overall strategies.
• Selling and Market operations help in developing and
executing market plans at the local level .
• Global Business Services provides technology , processes
and standard data tool.

10. MEMBERSOF P&G
• A.G Lafley:
Chairman of the board , president
and chief executive officer of the company.
• Francis S . Blake :
Former chairman of the board

11. MEMBERSOF P&G
• Davis S . Taylor:
Group president , Beauty , Grooming and Health care
President and chief Executive Officer.
• Mark Biegger:
Chief Human Resource Officer.
• Steven D. Bishop:
Group President , Global Oral Care.
• Giovanni Ciserani:
Group President , Global Fabric & Home Care.

12. MEMBERSOF P&G
• Linda W . Clement- Holmes:
Chief Information Officer.
• Mary Lynn Ferguson Mc
Hugh:
Group President, Global Family
care.
• Colleen E Jay:
President Beauty Specialty
Businesses.
• R . Alexandra Keith:
President Global Skin and
Personal care.

13. EXTERNAL ENVIONMENT OF P&G
Economic:
 Adapted to the recession by lowering earning projections.
 Shed 15% of the management staff.
 Focus on the 43 best-selling brands
 Have to keep up with changing trends in consumer demand.

14. EXTERNAL ENVIRONMENT OF P&G
Demographic
Everybody will use most these products.
Middle to upper class consumers due to the higher
price of the brand name products.
Global – in more than 80 countries

15. EXTERNAL ENVIRONMENT OF P&G
Legal / Regulatory
 Must meet industry regulations and standards inmany different countries
Competition
Three main competitors
 Johnson & Johnson
 Kimberly-Clark
 Unilever
 L'Oreal

16. EXTERNAL ENVIRONMENT OF P&G
Competitor Analysis:
Stiff competitors like Estee Lauder, Maybelline and
LOreal.
The cost of switching is very less.
The main competitors are the ones which manufacture
same range of cosmetics but at lower cost.
P&G products must be capable enough to put strong
competition to its opponent products.

17. EXTERNAL ENVIRONMENT OF P&G
Domestic Competition:
 New products coming with private labels in local
markets every now.
 P&G should follow some innovation.
 Introduce new and fresh products.
 Wal-Mart is the biggest buyer of P&G products.
 It has formed strategic alliances with it.

18. EXTERNAL ENVIRONMENT OF P&G
International Competitors:
 Most fit for survival across the international market.
 The huge global scale of P&G allows it to get an edge over
LOreal in developing countries.
Competitive Advantage:
 Has diversified product portfolio.
 The P&G has created brand awareness.
 By recession which is why it again gains an edge over
LOreal i.e. cosmetics range.

19. INTERNAL ENVIRONMENT OF P&G
P&G – Epitome of culture
• In P&G, they use we instead of I.
• Everyone at P&G is like a hand in a bucket of water-
when the hand is removed, the water closes in and
there is no trace.
• Conform and you succeed; questions and you are
gone.
• Research as an integral part of P&G thoroughness.
• It s aim is to produce products that consistently win
the consumers blind tests.

20. INTERNAL ENVIRONMENT OF P&G
 Core values are:
1) Leadership
2) Ownership
3) Integrity
4) Passion for winning
5) Trust
 Principles:
1) Show respect for all individuals.
2) Strategically focused on work
3) Seek to be the best.
4) Innovation is cornerstone towards success.
5) Mutual Interdependency is a way of life.
6) Externally focused.

21. INTERNAL ENVIRONMENT OF P&G
Human Resources:
• Hire and retain some of the most talented people in the
industry.
• Rewarded and recognized for their contributions.
• Global training programs on managing the innovation
process.
• Training for high-potential junior staff.

22. INTERNAL ENVIRONMENT OF P&G
P&G s internal strategy is to focus on core strengths to win the
customer products industry
 Consumer Understanding:
P&G conducts over 20,000 research studies.
 Innovation:
Is recognized as the industry s global leader in innovation.
 Brand Building:
Portfolio of 50 leadership brands which make up 90% of sales .
 Go-to-Market Capabilities:
P&G is ranked as the preferred supplier by leading retailers.
 Scale:
Allocating resources more strategically and efficiently.

23. INTERNAL ENVIRONMENT OF P&G
Marketing:
 Constant emphasis on building brand recognition andbrand
value
 In the s it was one of the first companies to advertise
nationally.
 In the s, P&G was the first firm to develop the idea
of brand management.
 In the s they used their own soap operas and radio
programs for advertising.

24. INTERNAL ENVIRONMENT OF P&G
Research:
 World class R&D organization, with more than 7,500
scientists.
 This includes 1,250 Ph.D. scientists.
 Invest 4% of sales back into research & development.
 Lafley had an enormous impact on P&G in an attempt to
turn a stalling company around.

25. INTERNAL ENVIRONMENT OF P&G
Leadership
A.G. Lafley states that:
 To define and interpret the meaningful outside (external
environment).
 To answer the two-part question:
What business are we in and what business are we
noting?
 To balance sufficient yield in the present with investment in
the future.
 To shape the values and set the standards of the
organization.

27. WAS THIS THE ONE???

28. P&G PRODUCTS
 Always is a brand of feminine hygiene products.
 Ariel is a brand of laundry detergent.
 Atonal is a brand of osteoporosis drug.
 Bounty is a brand of paper towels.
 Braun is a small-appliances manufacturer
specializing in electric razors, coffeemakers,
toasters, and blenders.
 Crest is a brand of toothpaste.
 Dawn is a brand of dishwashing detergent.

29. P&G PRODUCTS
 Downy/Lenora is a brand of fabric softener.
 Duracell is a brand of batteries and flashlights.
 Fusion is a brand of men's wet shave razors.
 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.
 Old Spice is a brand of aftershave and shaving cream.

30. P&G PRODUCTS
 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.
 Pantene is a brand of hair care products.
 Prilosec OTC is a brand of heartburn medicine.
 Pringles is a brand of potato chips.

31. P&G PRODUCTS
 Puffs is a brand of facial tissue.
 Secret is a brand of antiperspirant and deodorant.
 Safeguard is global personal care brand.
 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
 Whisper is a brand of panty liners sold primarily in Asian
markets.

32. Beauty Segment
Competition and Growth
 Competitors
 Unilever
 LOreal
 Private Labels
 3% Net sales growth from 2011
 % of P&G s Net Sales are from the Beauty
segment

33. BRAND AWARENESS

34. BRAND AWARENESS

35. DISTRIBUTION AT P&G
 The distribution is of three types, which are being
followed :
 Intensive distribution
 Extensive distribution
 Specialty distribution

36. DISTRIBUTION CRITERIA
 Ordering Speed:-
Manufacturing of product and the time till it reaches the
consumer.
 Delivery Flexibility:-
How easy to distribute the product.
 Personal Selection And Customization:-
Which distribution channel to select.

37. Basic Channels of Distribution
Manufacturers/products
Agents
Wholesalers/distributors
RetailersRetailers
Consumers and organizational end users

38. PROMOTION STRATEGY
 P&G insists on a pull strategy
 Heavy advertising and media pioneer
 Advertising creativity
 P&G – A click mortar company
 Coupon
 Celebrity advertising

39. PRICING STRATEGIES
 Understand how companies find a set of prices that
maximizes the profits from the total product mix.
 Learn how companies adjust their prices to take into
account different types of customers and situations.
 Know the key issues related to initiating and
responding to price changes.

40. AN INTEGRATED CASCADE OF CHOICES

41. DIFFERENT PRICING STRATEGIES
ADOPTED BY P&G
 Optional-features strategy
 Product-line pricing
 Cost-plus pricing
 Competitive pricing
 Distribution pricing

42. ONLINE MARKETING
 The company has actively developed or sponsored
numerous online communities.
 As of 2000, the company had 72 "highly stylized
destination sites.

43. HR SYSTEM AND STRATEGIES
 The HR function at P&G isn t traditional support
function but a strategic function.
 P&G has unique Human Resource strategies e.g.
promote from with in philosophy.
 People are recruited at the entry level.
 Through continuous mentoring people with in the
company at highest levels.

44. HR PLANNING
 The HR planning in P&G is done by different
departments and business units.
 P&G hires people from base level and then promote
people from with in.
 P&G has strong policy of job rotation.
 The job analysis is based on success drivers.

45. HIRING PRINCIPLE

46. HR DEPARTMENT OF P&G
 The HR department at P&G is a strategic function.
 The department helps form and implement strategies.
 HR here is a change and development agent and not
the policy of the organization.
 HR sits at the table while making policies, procedures,
goals, and strategies.

47. Human Resource Development
Function:
Talent Supply
Management
Organization
Involvement
Organizational
Excellence
Maximization
Development
Of External
Relations
Maximize
capability

48. RECRUITMENT & SELECTION AT
P&G:
Recruitment and selection is done in following steps:
Job structure and definition
Job description
Job specification
Job standards
Selection

49. P&G RECRUITMENT AND
SELECTION PROCESS:

50. SELECTION PROCESS:
Application
Assessment
Initial Interview
Final Interview
Your offer and Your future

51. TYPES OF SELECTION DEVICES:
 Written tests
 Online evaluation
 Screening interview
 Panel interview

52. ORIENTATION:
Two type of orientation takes places at P&G:
 Work unit orientation
 Organization orientation

53. TRAINING AND DEVELOPMENT
APPROACHES:
 Basically there are two approaches for training and
development:
 On-the-job
 Job rotation
 Job Instruction training
 Coaching
 Off-the-job
 Warehouse Training
 Action Learning

54. IMPROVE PRODUCTIVITY IN ALL
AREAS
 Cost of Goods
 Reduce Raw Material costs
 Long-term contracts
 Increase Number of Suppliers
 Reduce excess inventory
 Develop partnerships (PGT Healthcare)
 Research & Development ~ $2 billion annually
 Continuous improvement
 Product Innovation

55. GROWTH IN DEVELOPING MARKETS
80%
77%
63%
20%
23%
37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
FY '00 FY '05 FY '12
%ofTotalCompanySales
P&G Sales Growth: 2000 to 2012
Developed
Developing
 Company-wide initiative: Acquire 1 billion additional
consumers by 2014/2015

56. SWOT ANALYSIS OF P&G:
STRENGTH:
Product innovation.
Offers multiple products.
Strong Brand Image.
Strong customer liability.
Diversified business structure.
Research and development.
Global Operation.
Strong Distribution Network.

57. SWOT ANALYSIS OF P&G:
WEAKNESS:
 Views product performance only.
 Increased promotional spending to keep healthy sales.
 Customer concentration.

58. SWOT ANALYSIS OF P&G:
OPPORTUNITIES:
 Going Green/ Eco friendly
 Emerging markets
 Selling directly to customers
 Better product experience
 Diversification.
 Capitalizing on media.

59. SWOT ANALYSIS OF P&G:
THREATS:
Substitute of brands that have cheaper price.
Slow down in consumer spending.
Key competitors expanding their product portfolios
through acquisitions.
Increase cost of raw material.
Competition.
Government regulation.

60. P&G VS PRIVATE LABELS
 Intense competition
 Private labels are much cheaper
Company % - 2010 % - 2011 % Change
Wyeth Labs, Inc. (Pfizer) 25.17 25.87 0.7
Reckitt Benckiser 26.82 24.23 -2.59
Private label 24.78 22.17 -2.61
Procter and Gamble Co. 13.59 19 5.41
Other 3 3.31 0.31
Novartis Consumer Health 2.61 3.02 0.41
Blacksmith Brands 0.65 1.12 0.47
Health Care Products 1.36 0.73 -0.63
Boiron-Borneman 1.13 0.55 -0.58
Qualitest Products 0.9 0 -0.9
Top Cough Syrup Makers - Market Share

61. ENVIRONMENT PROTECTION
• Environment suffers due to industrialization and
development.
• Development must be carried out keeping the
sustainability in mind.
• The P&G Co. today expanded its sustainability goals to
continue creating value.
• We continue to improve the environmental sustainability
of our products.
• Expanded its social sustainability work, touching and
improving the lives each year through:
 Children Safe Drinking Water
 Pamper UNICEF Partnership.

62. ENVIRONMENT PROTECTION
• We focus on areas where we can make the biggest positive impact.
• We include sustainability into every aspect of our products—from
initial design to manufacturing to packaging to social impact.

63. ENVIRONMENT PROTECTION

64. ENVIRONMENT PROTECTION

65. ENVIRONMENT PROTECTION
 Olay has reduced water usage
by 12%.
 Thanks to a special pump
redesign.
 Olay diverts manufacturing
waste.
 Its plant in Ireland has reduced:
 energy consumption by 12%
 CO2 emissions by 16%.

66. ENVIRONMENT PROTECTION
Cascade Platinum
 Cascade Platinum is a dishwashing product.
 Innovation to conserve resources at home.
 They eliminate the need to pre-rinse dishes before
putting them into the dishwasher.

67. ENVIRONMENT PROTECTION
• We see sustainability as an opportunity.
• Our objective is lead value with brands and products
that consumers prefer.
• We conserve resources, protect environment and
social conditions.
• Ensure our products, packaging and operations are
safe.
• Actively encourage reuse, recycling and composting.

68. P&G AWARDS AND ACHEIVEMENTS
National Association for Female Executives:
 Recognized by the National Association for Female
Executives as one of the Top 50 Companies for Executive
Women
 Ranked # on the World s Most Respected Companies
List

69. P&G AWARDS AND ACHEIVEMENTS
AC Nielsen Survey:
 Ranked # as the Employer of Choice across the
targeted campuses in a survey conducted by AC Nielsen.
Business Today:
 Business Today has rated P&G amongst the most
preferred companies by management students across
India.

70. FACTS AND FIGURES

71. Top 10 Advertisers in 2014 (Q1)

72. REVENUE GROWTH OF P&G

73. OLYMPIC GAMES SPONSERSHIP

74. KEY TO SUCCESS OF P&G