P&G

The Procter & Gamble Company, also known as P&G, is an

American multinational consumer
goods company
headquartered in downtown Cincinnati, Ohio, USA.
$67.9 billion sales
1,10,000 employees
More than 170 manufacturing facilities in more than 40
countries
More than 20 R&D centres in 10 countries
Unique organization structure

P&G HISTORY
1837

Brothers-in-law William Procter and James Gamble start a partnership, making

and selling candles and soap in Cincinnati

1859

P&G sales reach $1 million

1879

The inexpensive, but high-quality Ivory soap is 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, is
introduced

1961

Pampers is introduced and eventually replaces cloth diapers

1980

Sales reach $10 billion

2002

P&G develops Naturally feminine pads specifically to meet the needs of lowincome women in Latin America.

2005

High Frequency Stores, Consisting of nearly 20 million stores across the world,
FS represents a particular opportunity in fast-growing low income markets.

Today

P&G operates in 80 countries worldwide, employing more than 100,000.

Has 13 billion dollar brands in its portfolio: Charmin, Tide, Pantene, Iams,
Folgers, Crest, Olay, Always, Ariel, Bounty, Downy, Pringles, Pampers.

 In 2012, P&G recorded $83.68 billion dollars in sales.

Procter & Gamble produced and sponsored the first radio soap

operas in the 1930s.

Procter & Gamble also was the first company to produce and
sponsor a prime-time show
They began by supplying the Union Army with soap and candles
EVOLUTION OF LOGO

David Taylor (present)

Alan G. "A.G." Lafley

Oct 1st 2015

P&G brands and P&G people are the foundation of

P&Gs success.
P&G people bring the values to life as we focus on
improving, the lives of the worlds consumers

VISION AND MISSION

Vision:

To be recognized as, the best consumer products and Services

Company in the world.
Mission:

We will provide branded 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.

Competitors

GLOBAL
P&G touches and improves the lives of about 4.4 billion

people around the world with its portfolio of trusted, quality

brands.
With operations in about 80 countries, P&G brands are
available in more than 180 countries worldwide.

India products
P&G is one of the largest and fastest

growing consumer goods companies

in India.
Established in 1964, P&G India
now serves over 650 million
consumers across India.

Ambi Pur
Ariel
Duracell
Gillette
Head & Shoulders
Olay
Oral-B
Pampers
Pantene
Tide
Vicks
Wella
Whisper

P&G India is committed to sustainable growth in India, and is

currently invested in the country via its five plants and over nine
contract manufacturing sites, as well as through the 26,000 jobs
it creates directly and indirectly.
Sustainability efforts focus on Environmental Protection as
well as Social Responsibility to help develop the communities
they operate in.
P&G operates under three entities in India - two listed entities
Procter & Gamble Hygiene and Health Care Limited and
Gillette India Limited, as well as one 100% subsidiary of the
parent company in the U.S. called Procter & Gamble Home
Products.

Operations in India
P&G have its general office in Mumbai, Maharashtra.
FABRIC CARE :

it has two of its world-leading detergents Tide and Ariel, in India to cater to the
main concerns of the Indian households
Ariel Front-O-Mat
Ariel 2 Fragrances
Tide Detergent
Tide Bar
HAIR CARE:
The P&G beauty business sells more than 50 different beauty brands including

Pantene, Olay, Max Factor, Cover Girl, Joy, Hugo Boss, Herbal Essences and
Clairol Nice n Easy. In India, P&Gs beauty care business comprises of Pantene, the
worlds largest selling shampoo, Head & Shoulders, the worlds No. 1 Anti-dandruff
shampoo and Rejoice Asias No. 1 Shampoo.
Pampers is the major baby care product selling in India.

 Manufacturing operations are based in the following

regions:
United States
Canada
Philippines
Mexico
Latin America
Europe
China (31 wholly owned factories) and other parts of

Asia
Africa
Australia

STRUCTURE OF DISTRIBUTION
company

C&F

Distributor
wholesaler

Retailer
consumers

DISTRIBUTION AT PROCTER & GAMBLE

The distribution is of 3 types, which are being
followed:
Intensive distribution
Extensive distribution

DISTRIBUTION CRITERIA
ORDERING SPEED: Manufacturing of product and time
till it reaches the consumer
DELIVERY FLEXIBILITY: How easy to distribute the
product
PERSONAL SELECTION AND CUSTOMIZATION:
Which distribution channel to select

Sales and distribution system

P&G keeping broaden the market by slashing its no. of distributors

down to 1 to 10th of its size.

85% of its sales come from the top 30 towns & its current volume did not
justify a large distributor network.

So P&G will now have one distributor who will operate like super
stockist., which help to replenish its distributors more frequently and
reduce their average stock level.

P&G keep growing on ROI which resulted in each distributor trying to

extend its reach to push up volumes
With a limited number of distributors, P&G will also not need to invest
in C&F agents.
P&G follows wholesale format of distribution for Vicks
P&G is spending 30-35% of its sales in advertisement and promotion
which is highest in the industry, HUL expends only 15% of sales on
advertisement and promotion

Sales
planning
Sales manager
Business executive

Sales team leader

Distributor sales executive

Project 2-3-4
To strengthen its presence in India, and increase sales
20 times from its current $1b level, P&G India has
formulated a project 2-3-4.
P&Gs project 2-3-4 is aimed at
2: doubling the number of Indians who use its
products,
3: trebling per capita spending by Indians on its
products and
4: quadrupling net sales of its India operations by 2015

P&G is an organisation which traditionally deriving its bread and butter

from premium brands, and from developed market

2016 sales by Geographical region

Suppliers for P&G

More than 80000 suppliers
Suppliers of the year:
Havpak Inc.
Hayco ltd
Nelson packaging company ltd
Nippon shokubai company ltd
Novozymes
Pegas Nonwovens
Seeking to pay its bills in 75 days from the average of 45 days
P&G is giving 6% margin to the distributor
P&G is spending 30-35% of its sales in advertisemen t

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

DIFFERENT PRICING STRATEGIES BY P&G

1. Optional-product pricing: companies will attempt to
increase the amount of customers spend once they start to
buy. Optional extras increase the overall price of the
product or service.

2. Distribution pricing : Is the price point you as the

business owner chooses to extend to vendors who will then
distribute your products

3. Competitive pricing: Is setting the price of a product or

service based on what the competition is charging.

Cost plus pricing:

Is a cost based method for setting the prices of goods and
services

Product line pricing:

It is the process that retailers use to separate goods into
various cost categories creating different quality levels in the
middle of their customers.

RECRUITMENT AND SELECTION AT PROCTER

& GAMBLE
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

TYPES OF SELECTION DEVICES

Written tests
Online evaluation
Screening interview
Panel interview

ORIENTATION
Two types of orientation takes places at P&G
Work unit orientation:
A part of the orientation process in which a new employee is
introduced to co- workers, and is given information.
Organization orientation:
Is an individuals predisposition toward work, motivation to
work, job satisfaction, and ways of dealing with subordinates,
and supervisors on the job.

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
Ware house training
Action learning

Online marketing
The company has actively developed numerous online

communities, i.e. BeingGirl.com, Women.com.

As of 2015, the company had 72 "highly stylized destination
sites

Awards
In October 2008, P&G was named one of "Canada's Top 100

Employers" by Mediacorp Canada Inc., and was featured

in Maclean's newsmagazine.
Later that month, P&G was also named one of Greater Toronto's Top
Employers, which was announced by the Toronto Star newspaper

Fortune:
Ranked 5 among the Global Most Admired Companies
Named to list of the Global 100 Most Sustainable Corporations in the
World, with top rankings from 2000-2015

National Association for Female Executives:

Recognized by the National Association for Female Executives as
one of the Top 50 Companies for Executive Women
Ranked 10 on the Worlds Most Respected Companies List
Ranked 25 among the Top 50 Companies for Diversity
Ranked 9 on the Top Companies for Recruitment and Retention
Bloomberg Business week:
Ranked 25 among the Worlds Most Innovative Companies

 Readers Digest:
Silver Award for Corporate Social Responsibility Programs by Readers
Digest, 2008.

Indo-American Chamber of Commerce:

Best US Company operating in India under the FMCG Sector by the
Indo-American Chamber of Commerce (IACC)s 7th Corporate
Excellence Awards.

AC Nielsen Survey:
Ranked 3 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.

SUCCESS OF PROCTER & GAMBLE