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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.

FOUNDERS OF P&G

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.

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.

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.

ORGANIZATIONAL STRUCTURE

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.

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

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.

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.

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.

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

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

EXTERNAL ENVIRONMENT OF P&G

Competitor Analysis: Stiff competitors like Estee Lauder, Maybelline and L Oreal. 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.

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.

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 L Oreal 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 L Oreal i.e. cosmetics range.

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.

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.

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.

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.

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.

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.

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.

WAS THIS THE ONE???

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.

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.

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.

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.

Beauty Segment Competition and Growth

Competitors

Unilever

L Oreal Private Labels

3% Net sales growth from 2011

% of P&G s Net Sales are from the Beauty segment

BRAND AWARENESS

BRAND AWARENESS

DISTRIBUTION AT P&G

The distribution is of three types, which are being followed :

Intensive distribution

Extensive distribution

Specialty distribution

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.

Basic Channels of Distribution

Manufacturers/products

Agents

Wholesalers/distributors

Retailers Retailers

Consumers and organizational end users

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

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.

AN INTEGRATED CASCADE OF CHOICES

DIFFERENT PRICING STRATEGIES ADOPTED BY P&G

Optional-features strategy

Product-line pricing

Cost-plus pricing

Competitive pricing

Distribution pricing

ONLINE MARKETING

The company has actively developed or sponsored numerous online communities.

As of 2000, the company had 72 "highly stylized destination sites.

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.

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.

HIRING PRINCIPLE

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.

Human Resource Development

Function: Talent Supply Management

Organization

Involvement

Organizational

Excellence

Maximization

Development

Of External Relations

Maximize capability

RECRUITMENT & SELECTION AT

P&G: Recruitment and selection is done in following steps:

Job structure and definition

Job description

Job specification

Job standards

Selection

P&G RECRUITMENT AND

SELECTION PROCESS:

SELECTION PROCESS: Application

Assessment

Initial Interview

Final Interview

Your offer and Your future

TYPES OF SELECTION DEVICES: Written tests

Online evaluation

Screening interview

Panel interview

ORIENTATION: Two type of orientation takes places at P&G:

Work unit orientation

Organization orientation

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

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

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

% o

f T

ota

l C

om

pa

ny

Sa

les

P&G Sales Growth: 2000 to 2012

Developed

Developing

Company-wide initiative: Acquire 1 billion additional consumers by 2014/2015

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.

SWOT ANALYSIS OF P&G: WEAKNESS:

Views product performance only.

Increased promotional spending to keep healthy sales.

Customer concentration.

SWOT ANALYSIS OF P&G: OPPORTUNITIES:

Going Green/ Eco friendly

Emerging markets

Selling directly to customers

Better product experience

Diversification.

Capitalizing on media.

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.

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

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.

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.

ENVIRONMENT PROTECTION

ENVIRONMENT PROTECTION

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%.

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.

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.

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

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.

FACTS AND FIGURES

Top 10 Advertisers in 2014 (Q1)

REVENUE GROWTH OF P&G

OLYMPIC GAMES SPONSERSHIP

KEY TO SUCCESS OF P&G