Final Project

Submitted to:Sir, Ayaz reshi

Submitted by:
Sikandar sultan
Rafia azad
Sadia ahsan
Adnan hayat
Haider arif
Jihad khalid
 Touching Lives, Improving Life.

Type Public (NYSE: PG)

Founded 1837

Headquarters Cincinnati, Ohio, USA; Toronto, Ontario, Canada

Key people Bob McDonald, President, and Chief Executive.

Industry Consumer goods

Revenue ▲ US$79.0 billion (FY 2009)

Net income ▲ US$13.4 billion (FY 2009)

Employees 138,000

Website www.pg.com

INTRODUCTION TO COMPANY
The Procter & Gamble Company (P&G) is a brand behemoth. The world' no.1 maker of
household products courts market share and billion-dollar brands. P&G's business is divided
into three global units: beauty, health and well being, and household care. Procter & Gamble
Co. (P&G) is an American global corporation based in Cincinnati, Ohio that manufactures a
wide range of consumer goods. Three billion times a day, P&G brands touch the lives of people
around the world. This happens because P&G provides branded products of superior quality
and value to improve the lives of the world's consumers. This results in leadership sales, profits
and value creation, allowing employees, shareholders and the communities in which
P&G operate to prosper. The Company markets more than 300 branded products. P & G have
on-the ground operations in more than 80 countries and employ nearly 140,000 people. Nearly
five billion consumers in more than 130 countries. What began as a small, family-operated soap
and Candle Company now provides products and services of superior quality and value to
consumers in 140 countries. P&G is a publicly owned company. Its stock is listed and traded on
the New York and Paris exchanges.
As of 2008, P&G is the 8th largest corporation in the world by market capitalization and 14th
largest US company by profit. It is 10th in Fortune's Most Admired Companies list (as of
2007). P&G is credited with many business innovations including brand management and the
soap opera.

HISTORY OF PROCTER AND GAMBLE COMPANY:

William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England
and Ireland, respectively, who had settled earlier in Cincinnati, formed the company initially,
who met as they both married sisters, Olivia and Elizabeth Norris.

As the result of persuation by their father in law, Alexander Norris, Procter & Gamble was born
on October 31,1837, as they became business partners. By1859,when 80 employees worked for
P&G, sales reached 1million dollar. The company supplied soaps and candles to the Union
Army during the American Civil War. the military contracts won introduced soldiers from all
over the country to P&G‟s products, along with increased profits.

1837: William Procter and James Gamble form Procter & Gamble, a partnership in
Cincinnati, Ohio, to manufacture and sell candles and soap.
1851: Company's famous moon-and-stars symbol is created.
1878: P&G introduces White Soap, soon renamed Ivory.
1890: The Procter & Gamble Company is incorporated.
1911: Crisco, the first all-vegetable shortening, debuts.
1931: Brand management system is formally introduced.
1946: P&G introduces Tide laundry detergent.
1955: Crest toothpaste makes its debut.
1957: Charmin Paper Company is acquired.
1961: Test marketing of Pampers disposable diapers begins.
1963: Company acquires the Folgers coffee brand.
1980:It began marketing a new product, an inexpensive soap that floats in water. it was named
„Ivory‟.
1982: Norwich-Eaton Pharmaceuticals is acquired.
1985: P&G purchases Richardson-Vicks Company, owner of the Vicks, NyQuil, and Oil of
Olay brands.
1987:William Procters grandson William Arnett Procter began a profit sharing programme for
its employees,he assumed that by giving the workers stake in the company,they would be less
likely to go on strike.
1988: Noxell Corporation, maker of Noxema products and Cover Girl cosmetics, is acquired.
1991: Max Factor and Betrix cosmetic and fragrance lines are bought from Revlon, Inc.
1992: Pantene Pro-V shampoo is introduced.
1993: Major restructuring is launched, involving 13,000 job cuts and 30 plant closures.
1997: Company acquires Tambrands, Inc., maker of the Tampax line of tampons.
1998: Organization 2005 restructuring is launched.
1999: Premium pet food maker Iams Company is purchased.
2001: P&G acquires the Clairol hair-care business from Bristol-Myers Squibb Company.
2002: Jif peanut butter and Crisco shortening brands are divested.
2003: Company acquires a controlling interest in German hair-care firm Wella AG.
The company started building factories in other site of USA as the demand was Out growing
the capacities of Cincinnati.the products were also being diversified.It also sponsored a number
of radio programmes termed as “soap operas”. With its 1930 acquisitionof Newcastle upon
Thomas Hedley Co,it became an international corporation. numerous new products were
introduced over time, like Tide, Prell, Crest,Bounce, Pampers, Chux. ,.P&G acquired a lot of
companies including Folgers coffee,Norwich eaton pharmaceuticals, Richadson-Vicks,
Noxell,Max Factor, Iams company. P&G acquired Gillette in January 2005,forming the largest
consumer goods company and placing Unilever in the 2nd place. P&G has expanded
significantly,but its its hesdquaters still remains in Cincinnati.

“ Logo controversy”

 The company received unwanted media publicity in the 1980s when rumors were spread that
their previous corporate logo was a Satanic symbol. The company has sued and attempted to
sue a number of companies like Amway and individuals who have spread rumors of this type,
in some instances because they sell competitive products and have spread such rumors for the
purpose of tarnishing P&G's image to increase sales of their own brands.

 However, the continuous media coverage prompted P&G to adopt an entirely new logo
consisting of just the letters P&G. In television commercials in China, the former P&G logo
still appears at the end of each commercial, and up until 2004, it appeared at the end of each
commercial in Japan
VISION
What organization want to become in future is known as vision. The vision of Procter and
Gamble company is

“Be, and be recognized as, the best consumer products and services in the world”

MISSION

What is the purpose of the existence of the organization is known as mission. The mission of
Procter and Gamble Company is

““Procter and Gamble will continue to serve consumers by continuously innovating

products that will allow us to be leaders in household and personal care, health care, and
food products. To produce products with the utmost care to give nothing but quality to
our communities and to continue to grow so that we can maximize our shareholder’s
wealth.”

VALUES

P&G is its people & the values by which they live.

They recruit the finest people in the world.they build the organization from within,promoting
and rewarding people without any difference unrelated to performance.thry work on the
conviction that the people of P&G are the most rewarding asset.

Integrity
Being right in deeds, honest and straight to each other operating within the spirit of law,
upholding the values and principles in every decision and action, staying data-based and
intellectually honest in advocating proposals and recognizing risks.

Leadership:
Having clear vision of where they are going, focusssing the resources to achieve leadership
objectives and strategies, developing the capability to deliver the strategies and eliminate
organizational barriers.

Ownership
Accepting personal accountability to meet the business needs. improve the system and
helping others improve their effectiveness. everyone acts owner, treating the company’s
assests as own and behaving with company’s long term success in mind.

Passion for winning

Determination to be the best, having healthy dissatisfaction with the status quo, compelling
desire to improve and win in the workplace.

Trust
Respecting &treating others as they want to be treated, having confidence in each others
capabilities and intentions. foundation of trust.

PRINCIPLES
~Showing respect for others

~Being strategically focused in the work

~Valuing personal mastery

~Seeking to be the best

~Making the interests of the company nad workers insepsrable

~Innovation is the cornerstone of success

~Making mutual interdependency a way of life

~Staying extremely focused.

OBJECTIVES
The objective of Procter & Gamble is that
“They will provide branded products and services of superior quality and value that improve the
lives of the world's consumers, now and for generations to come. 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 toprosper.
 ORGANIZATIONAL STRUCTURE
P&G has an organizational structure that is comprised of three Global Business Units (GBUs)
and a Global Operations group. The Global Operations group consists of the Market
Development Organization and Global Business Services. The heads of the three GBUs and
Global Operations each report to the Chief Executive Officer. Here is the Organizational Chart
for Procter and Gamble.
CEO

Vice Chairman VP of the Board Vice Chairman of Vice Chairman

P & G Family the Board Global Operations
Health P & G Household
Group President
Global Prestige President Group President
Group President
Global Pet Health Global Fabric Care
Care Eastern Europe &
Africa
President
President President Group President
Global Home Care
Global Skin Care Global Western Europe
Pharmaceuticals

President
President Group President
President Global Snacks
Global Oral Care North America
Global Hair Care

President Senior VP HR President

Global Baby & Global Household Northeast Asia
President Care
Global Adult
Professional Care President President India
Global Family And Australia
Care

President President
Global Feminine Greater China
Care
President
Latin America
President
Global Prestige
Products

President
Global Cosmetics

The three GBUs are Beauty and Health, Household Care and Gillette. The primary
responsibility of the GBUs is to develop the overall strategy for their brands. They identify
common consumer needs, develop new product innovations and build their brands through
effective commercial innovations, marketing and sales. This new structure took effect in April
2006 when they announced a number of changes to certain of their key leadership positions,
which resulted in changes to their GBU structure and their segment reporting. The company
believes that they get the full value of the company’s strengths with a unique organizational
structure and supporting work systems. P&G is the only consumer products company with
global business unit profit centers, a global shared business services, all supported by
innovative corporate functions. They are essentially running a number of highly focused
companies that share common go-to-market operations and business services. They have made
it possible for each business unit to focus on its individual consumers, customers and
competitors while capturing all the capability, knowledge and scale of a $75 billion global
company. In addition, they have created the capability to collaborate, learn quickly from one
another, and reapply successes across P&G businesses. This is a more agile, flexible and
responsive structure, allowing the global business units to focus on necessary growth. It is also
hard for a competitor to duplicate this structure.
 Procter & Gamble brands:

Category Segment Brand

Paper Diapers Pampers
Baby Wipes Luvs
Sanitary Products Always
Alldays
Laundry & Cleaning Detergents Tide
Products Fabric Softeners Ariel
Dish Washing Liquids Cheer
Air Freshener Bonux
Downy
Fairy
Febreze
Health & Beauty Care Personal Care & Home Braun
Appliances Gillette
Grooming Oral-B
Dental Care Wella
Hair Care Camay
Soaps Zest
Shower Gels Olay
Shampoos Camay
Tooth Paste Head & Shoulders
Body Wash Gels Pert Plus
Cosmetics Pantene
Male Toiletries Olay
Oil Of Olay
Old Spice
Pringles
 Food Potato Chips Pringles
Batteries Consumer & Industrial Duracell
Batteries
Manufacturing operations are based in the following
regions:
Procter & Gamble manufactures its products across the globe. Manufacturing operations are based in the
following regions:

 United States
 Canada
 Mexico
 Latin America
 Europe
 China (31 wholly-owned factories) and other parts of Asia
 Africa
 Australia

PRODUCTIONS

Procter & Gamble produced and sponsored the first radio soap operas in the
1930s.
 Past serials produced by Procter & Gamble include:
 Another World
 Lovers and Friends
 The Brighter Day
 The Catli
 Our Private World
 The Edge of Night
 The First Hundred Years
 For Richer, for Poorer
 From These Roots
 Search for Tomorrow
 Somerset
 Texas
 Young Doctor Malone

TOP COMPETITORS
1. Johnson & Johnson
2. Kimberly Clark
3. Unilever

Kimberly-Clark:

Kimberly-Clark competes with P&G in the household products market, particularly in tissues,
paper towels, diapers, and feminine products. In 2006 K-C reported sales of $16.7 billion, 76%
of which came from sales of diapers, wipes, feminine products, tissues, paper towels, toilet
paper, and other related paper tissue products. Major K-C brands include Huggies diapers,
Kotex feminine products, Scott paper towels and Kleenex tissues.

Unilever:

Unilever operates in many countries, including Asia, Africa, North America, the Middle East,
Western Europe, and Latin America. The company's products cover two categories -- food and
home and personal care – with known brands such as Axe, Dove, sunsilk,Pond's, Suave,
Vaseline, Signal, Snuggle, Surf, Slim Fast, Lipton, Ben & Jerry’s, Brayers, and Country
Crock.

Johnson & Johnson:

It's nearly impossible to get well without Johnson & Johnson (J&J). The diversified health care
giant operates in three segments through more than 250 operating companies. Its
pharmaceuticals unit makes drugs – including Best-selling schizophrenia medication Dispersal
-- for an array of ailments, such as neurological conditions, blood disorders, autoimmune
diseases, and Chronic pain. J&J's medical devices and diagnostics division offers surgical
equipment, monitoring devices, orthopedic products, and disposable contact lenses, among
other things. Its consumer products segment makes over-thecounter drugs and products for skin
and hair care, baby care, oral care, first aid, and women's health.

STRATEGIES

A strategy is a long term plan of action designed to achieve a particular goal, most often
winning.
P&G announced “connect & develop” strategies P&G has announced a goal of accessing 50%
of its new ideas, technologies, and products from external sources. A key element in this open
innovation strategy is the effective utilization of the Internet to match technical needs with the
right innovators around the world who have technology solutions and "ready-to-go" products
that P&G can utilize. Nine Sigma is one of the leading companies in the field of innovation
sourcing. Through its proprietary Internet-based Managed Exchange process, Nine Sigma
delivers connections to sources all over the world to meet its clients' most challenging needs. In
the past 18 months, P&G and Nine Sigma have worked together to find solutions and
opportunities across P &G's global business units.

Leadership

P&G market shares are growing in more core categories, on more leading brands, at more top
customers and in more big countries this year than last. P&G has the leading brand in 29 of 47
core categories in the U.S. today.

Global Presence

we have on-the-ground operations in 80 countries. Our structure is based on Global Business

Units spread across the U.S., Europe, Latin America, and Asia.

Growth

P&G’s business is strong. We are delivering on our goals of:

4 percent to 6 percent topline growth, excluding foreign exchange effects.
Double-digit core earnings-per-share growth.
Total shareholder return in the top third of P&G's peer group.

Innovation
We're innovating in every core P&G category, and creating new categories. For example, in
2001, six of the top ten best-selling new non-food products in the U.S. were P&G brands.
We've developed whole new categories like disposable diapers and laundry detergents in the
U.S, and most recently, home dry cleaning (Dryel) and fabric refreshers (Febreze). We consider
product research and innovation to be the cornerstone of our success. P&G invests more than
$1.2 billion a year on research and development, an investment that pays off. We file for nearly
20,000 patent applications every year, making P&G among the most innovative companies in
the world. P&G employs more PhD scientists than MIT, Berkeley, and Harvard combined.

Promotional strategies

Coupons have been a promotional strategy for more than 100 years, it is estimated that 3000
manufactures print 310 billion coupons. While coupons are believed to be effective in enticing
consumers to try and to continue to buy a product, less than 2% of distribution coupons are
redeemed, leading manufactures and retailers to question how effective couponing really is in
today’s market-place.

Pricing strategies

Procter & Gamble's new low price strategy on some of its product lines has been getting a lot of
play in the consumer and business press, but the spotlight has fallen almost entirely on
supermarkets. Given the volume that food stores command and the strong symbiosis between
P&G and the grocery trade, perhaps that's natural.

Connect and Develop strategy

P&G has announced a goal of accessing 50% of its new ideas, technologies, and products from
external sources. A key element in this open innovation strategy is the effective utilization of
the Internet to match technical needs with the right innovators around the world who have
technology solutions and "ready-to-go" products that P&G can utilize. NineSigma is one of the
leading companies in the field of innovation sourcing. P&G and NineSigma have worked
together to find solutions and opportunities across P&G's global business units. By utilizing
NineSigma's unique process, P&G can be more proactive in accessing the tremendous
innovation assets and ideas that exist outside of Procter & Gamble.

Present and future

With a presence in more than 140 countries, Procter & Gamble serves a potential consumer
market of five billion, and employs around 103,000 people. Turnover last year was $3 5 billion
and net profit more than $3 billion. On BSE, while P&G is currently valued at Rs 1,988 crore,
Gillette's market cap is Rs 2,199crore Engineering products would soon be sourced from India
instead of Japan.
 SWOT ANALYSIS

STRENGTHS

1. Business and community partnerships

Improving lives in all countries and communities has led to a focus on building effective
business and community partnerships in areas where they can make a meaningful difference :
education, economic development,

2. Leadership focus and accountability

To assess progress and reinforce leadership accountability for corrective actions, management
shows strong visible leadership, commitment and constant focus.

3. Talent support and development

P&G recruits the best talents ,leverages the full talent of each individual through effective
assignment and promotion planning processes and executing critical systems that affect and
support retention of employees .employee support groups and network teams perform
effective recruiting, join-up and development efforts.

4. Organizing facts

For many years, P&G has been recognized across the globe as one of the "best places to
work" and for improving lives in the communities where they operate. This recognition is
reflected in many publications, like, Fortune, Working Mother and Latina Style.

5. Employee networks

Employee support groups and network teams operating throughout the organization contribute
strongly to effective recruiting and development efforts. 

6. Inclusive culture

P&G leaders create an inclusive environment that welcomes and embraces diversity in the
employees, regardless of their individual differences, talents or personal characteristics. This is
an environment that provides everyone equal access to information, opportunities and
involvement, so each person learns, grows, excels and maximizes his or her personal
contribution.

WEAKNESSES:

1.The company introduced toll-free numbers for the costumers but in October 1981,this facility
turned into a backdrop for the company as public used it for enquire about the rumour of the
ownership of the company by the Church of Satan and the president and chief of P&G John
Smale being its member. in July 1982,the calls peaked up to 15,000.

2. Although the company changed its logo in 1985,it still appears at the end of certain
commercials in China and Japan, stock certificates and at the entrance of of some P&G
facilities.

3. P&G is one of the largest corporate producers of air pollution, emitting green house gases
and toxic chemicals.

OPPURTUNITIES:

1.P&G,being a highly diversified organization, can out think, out innovate and out perform an
homogeneous organization.

2.P&G may understand the needs of the diverse consumers and work effectively with
customers and suppliers to fulfill its values ,principles and purpose.

3. It can delight the consumer with sustainable innovations that will improve the environmental
profile of the products, and thereby increasing the sales.

4. Working transparently with the stakeholders can enable freedom to innovate in a

responsible way.

5. P&G can focus on shifting its product portfolio to faster growing high margin businesses.
 6.The company may concentrate on its core business (through innovation), to expand
penetration in the developing countries and restructuring its existing businesses.

THREATS
1.The likelihood of one of their products cannibalizing the sales of another. the products may
directly compete with one another

2.Due to high cultural diversity, problems may arise as a course of miss communication.

3.As a result of language difference, dubbed commercials may be miss interpreted.

4.There is an enormous chance of competion in the market at the higher positions.

5.As the range of its products is very vast,there are even greater number of their substitutes.

6.A change in the consumers’ taste can affect the demand for the products.

P&G’s GROWTH OVER LAST 5 YEARS:

Amounts in millions, except per share amounts 2009 2008 2007 2006 2005

Net Sales $79,029 $81,748 $74,832 $66,724 $55,292

Operating Income 16,123 16,637 15,003 12,916 10,026

Net Earnings 13,436 12,075 10,340 8,684 6,923

Net Earnings Margin from Continuing Operations 14.3% 14.4% 13.4% 12.7% 12.0%

Diluted Net Earnings per Common Share from Continuing

Operations $ 3.58 $ 3.56 $ 2.96 $ 2.58 $ 2.43

Diluted Net Earnings per Common Share 4.26 3.64 3.04 2.64 2.53

Dividends per Common Share 1.64 1.45 1.28 1.15 1.03

NET SALES
Net Sales (in billions of dollars)

05 $55.3
DILUTED NET EARNINGS
06 $66.7
Diluted Net Earnings (per common
07 $74.8
share)  
08 $81.7
05 $2.53
09 $79
06 $2.64

07 $3.04

08 $3.64

09 $4.26

OPERATING CASH FLOW

Operating Cash Flow (in billions of

dollars)

05 $8.6

06 $66.7

07 $74.8

08 $15.0

09 $14.9

Summary of 2009 Results

 Net sales decreased 3% to $79.0 billion.

 Net earnings increased 11% to $13.4 billion..
 Diluted net earnings per share increased 17% to $4.26.
 Cash flow from operating activities was $14.9 billion.
Financial Condition

Financial condition continued to be of high profile as operations generated substantial cash

and accessing capital markets at competitive rates,.the overall cash status of the company
indicates strong business results and global cash management strategy.