Procter & Gamble

Touching lives, Improving Life

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PRESENTED TO: ASIF AWAN

About COMPANY

Industry

Consumer goods

Founded

In18

37

HeadquartersCincinnati, Ohio,

USA

A Humble Beginning

Neither William Procter nor James Gambleever intended to settle in Cincinnati. Althoughthe city was a busy center of commerce andindustry in the early nineteenth century,William, emigrating from England, andJames, arriving from Ireland, were headedfarther west.

1837

On April 12, 1837, WilliamProcter and James Gamble startmaking and selling their soapand candles. On August 22,they formalize their businessrelationship by pledging$3,596.47 apiece. The formalpartnership agreement issigned on October 31, 1837.

1850

The Moon and Stars begins toappear in the 1850s as theunofficial trademark of Procter& Gamble.

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 altered this symbol into a trademark that showed a man in the moon overlooking 13 stars.

LOGO

H I S T O R Y

1862During The Civil War, Procter &Gamble Is Awarded SeveralContracts To Supply Soap AndCandles To The Union Armies.

1882Harley Procter Convinces ThePartners To Allocate $11,000To Advertise Ivory NationallyFor The First Time.

1915The Company builds its firstmanufacturing facility outsidethe United States, in Canada.Employing 75 people, the plantproduces Ivory soap and Crisco.

1917U.S. Government requests Gillette supply razors and blades for theentire U.S. Armed Forces during WWI.

h i s t o r y

1923Crisco Sponsors Cooking ShowsOn Network Radio, Placing P&GAmong The Medium’sAdvertising Innovators.

1926In response to the growingpopularity of perfumed beautysoaps, P&G introduces Camay

h i s t o r y

1935The Company expands itsinternational presencewith the acquisition of thePhilippine ManufacturingCompany – the Company’s firstoperations in the Far East.

h i s t o r y

1939Just five months after theintroduction of television inthe U.S., P&G airs its first TVcommercial (for Ivory Soap)during the first televised majorleague baseball game.

h i s t o r y

1946Tide, “the washing miracle,” isintroduced. Tide incorporatesa new formula that cleansbetter than anything currentlyon the market. Its superiorperformance at a reasonableprice makes Tide the country’sleading laundry productby 1950.

h i s t o r y

1988The Company announces ajoint venture to manufactureproducts in China. This is theCompany’s first operation inthe largest consumer market inthe world.

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.

BRANDS

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 co-marketed 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.

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.

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

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 co-marketed by AstraZeneca.

Pringles is a brand of potato chips. Puffs is a brand of facial tissues Secret is a brand of antiperspirant and deodorant.

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.

Our Journey in Pakistan

Faisal SabzariCountry ManagerP&G Pakistan

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.

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.

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.

P a k i s t a n P&G

“To be a leading consumer goods company and to improve the lives of world consumers by providing valuable and

innovative products”.

VISION of P&G

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.

MISSION STATEMENT

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.

GOALS

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.

To be a thought leader within each corporate function.

To be the first consumer goods company in Pakistan.

Be competitive with other high quality companies in order to help, 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.

OBJECTIVES

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.

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.

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.

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. .

PEST 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.

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.

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.

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.

SWOT ANALYSIS

COMPETITORS IN ORGANIZED SECTOR

LEVER BROTHERS LIMITED

Brands In Pakistan

Brands In Pakistan

Brands In Pakistan

Brands In Pakistan

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.

SAFEGAURD & P&G

Brands In Pakistan

Brands In Pakistan

Brands In Pakistan

Brands In Pakistan

Financial Analysis

EPS

51

Financial Analysis

52

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.

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 second-highest advertiser, by almost two-to-one

(Unilever spent $5.2 billion).

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%.

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.

STEPS TO PROTECT ENVIRONMENT

P&G Pakistan Social Commitment

THANKS

THANKSTNANKSTH

ANKS

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