P&G is a Fortune 500 company founded in 1837 that manufactures consumer goods. It operates in over 180 countries with 50 leading brands. P&G touches the lives of 4.4 billion consumers globally and generated $82.56 billion in revenue in 2011. The company aims to improve lives through innovative products and expanding into new markets and product categories. P&G uses strategies such as acquisitions, research and development, advertising, and moving into pet care to continue growing and touching more lives.

1. Touching lives, Improving life.
PRESENTED BY : SAURABH

2. Procter & Gamble (P&G) is a Fortune
500 American multinational corporation.
It is a public company founded in 1837
by William Procter and James Gamble.
 Headquarteredin downtown Cincinnati,
Ohio U.S. and manufactures a wide range
of consumer goods.
The present chairman & CEO of the
company is Bob McDonald.
Revenue : US$ 82.56 billion (FY 2011)

3. William Procter, a candlemaker,
and James Gamble, a
soapmaker, immigrated from
England and Ireland to U.S.
respectively.
On the suggestion of their
Father-in-law Alexander Norris,
Procter and Gamble was
formed on 31 october 1837.
The company began by selling
soap and candles in Cincinnati
U.S.

4. 1859 P&G sales reached a milestone of $1 million
1879 The inexpensive, but high-quality Ivory-soap was introduced.
1924 P&G is one of the first to create a market research department to
study consumer preferences and buying habits.
1955 Crest, the first toothpaste with fluoride clinically proven to fight
cavities, was introduced.
1961 Pampers were introduced and eventually replaces cloth diapers.
1980 Sales reach $10 billion
2005 High Frequency Stores, Consisting of nearly 20 million stores across
the world, FS represents a particular opportunity in fast-growing low
income markets.

5. P&G operates over 180 countries worldwide
Having 50 leadership brands that are some of the
most well known household names
Touching the lives of 4.4 billion consumer and
generating the profit of $82.56 billion.

7. MISSION
We will provide branded products & service of
superior quality and value that improve the lives of
the world`s consumers, now and for generation to
come.
VISION
“Be, and be recognized as the best consumer
products and service company in the world.”

8. A company that improves hygiene, health
and development.
Touching lives, Improving life.

9. P&G touching and improving the lives of more consumers,
with innovative products that expand their category
portfolios vertically up and down value tiers—delivering
the right combination of performance and value to every
consumer.
 Delighting Consumers with Crest in China
P&G reaching more consumers in China
with the launch of Crest Pro-Health, P&G’s
best toothpaste technology.
 Tide in India.

10. P&G touching and improving lives in more parts of the
world, by innovating and expanding their business into
new geographies where they didn’t previously compete.
 Olay in Mexico.
 Targeting rural market in south africa and kenya.

11. P&G touching and improving lives more completely by
innovating to enhance the performance of existing
products, by creating or entering adjacent categories
and by driving regimen use that broadens their product
portfolios and improves consumers’ experiences with
their brands.
 Pampers in the U.S.
 Gillete in U.S

12. -Cosmetics, Hair Color, Hair Care, Skin Care
-Laundry care, Dish Soap, Fabric Enhancers
-Oral Care, Feminine Care,
Snacks & Pet Care
-Diapers, Paper Towels,
Toilet Papres

13. STRATEGY
Expanding by acquisitions Acquisition of a Gillette
was a major strategic
Huge R&D move. Natura, a holistic
and naturals pet products
Heavy advertiser company. Nioxin, a
leader in the scalp care &
Moving into pet care & hair care.
pet insurance

14. P&G acquired Gillette in 2005 and this acquisition was called a
perfect fit.
The main advantages over the acquisition were :
Availability of new market
New distribution channels (GILLETTE’S)
Elimination of competitors from the market
Better bargaining power with retailers

15. STRATEGIES CONTD..
STRATEGY
P&G spends about $2
Expanding by aquisitions billion a year in
Research & Development-
Huge R&D About 60% more than our
next closest competitor
Heavy advertiser and more than most of our
competitors combined.
Moving into pet care &
pet insurance

16. STRATEGIES CONTD..
STRATEGY
P&G spends 10% of their
Expanding by aquisitions sales on advertising beating
all of their compepititors.
Huge R&D
Digital advertising is more
Heavy advertiser focused in terms of reaching
audience. Facilitated by
Moving into pet care & search engine advertising
pet insurance and social networking
websites such as Facebook
and Twitter.

17. STRATEGIES CONTD..
STRATEGY
Expanding by aquisitions Pet care & Pet insurance
is a blue ocean Where
P&G is the first mover.
Huge R&D
Heavy advertiser Thus P&G can gain a lot
out of this market.
Moving into pet care &
pet insurance

19. The intensity of rivalry is very high in this industry.
P&G has several strong competitors in different markets
like :
Amway Corporation, Colgate-Palmolive Company,
Kimberly-Clark, Johnson & Johnson, Revlon,
Unilever and other big and medium sized competitors
HIGH
MEDIUM
LOW

20.  The enormous amount of products that are distributed
under Procter & Gamble's name creates a challenge for
new entrants.
 Since the P&G possess a significant amount of market
shares around the world, a potential competitor that lack
large sums of capital for heavy marketing and research
and development, would hardly be able to effectively
compete.
HIGH
MEDIUM
LOW

21.  P&G is heavily dependent on Wal-Mart and its affiliates for
generating a major part of its revenue.
 Sales to Wal-Mart and its affiliates have represented
approximately 15% of its total revenue since 2006 thus
creating the “Wal-Mart effect.”
 High dependence upon Wal-Mart reduces the bargaining
power of P&G. Wal-Mart could use its bargaining power to
impose unfavorable terms on the company.
HIGH
MEDIUM
LOW

22.  P&G has a codependent relationship with most of its suppliers.
Suppliers of materials also need key customers like P&G for
profitable revenue generation and will very likely have little
bargaining power because of its small size.
 P&G can use its tremendous size and large amounts of
available cash to its advantage during this current credit crisis.
HIGH
MEDIUM
LOW

23.  There is substantial number of substitutes for all of P&G's
product offerings, creating an intense competitive environment.
 In order to differentiate itself, the P&G must continue to provide
new, cutting edge, and innovative products and branding to the
customer.
HIGH
MEDIUM
LOW

25. Strong brand name Overdependence on mature
market
R&D
Lack of diversified customer
Global operations portfolio
Strong distribution Quality Control
infrastucture
Strong performance in
core businesses

26. Emerging & developing Intense competition
markets
Increase in Cost of
Acquisitions raw materials
Novel Products Government
Regulation
Free market
economies increasing
in Asia