Procter & Gamble

Touching lives, Improving Life

2
About COMPANY

Headquarters
Cincinnati, Ohio,
USA
A Humble Beginning

Neither William Procter nor

James Gamble
ever intended to settle in
Cincinnati. Although
the city was a busy center of
commerce and
industry in the early nineteenth
century,
William, emigrating from England,
and
James, arriving from Ireland, were
headed
farther west.
1837

On April 12, 1837, William

Procter and James Gamble start
making and selling their soap
and candles. On August 22,
they formalize their business
relationship by pledging
$3,596.47 apiece. The formal
partnership agreement is
signed on October 31, 1837.

1850

The Moon and Stars begins to

appear in the 1850s as the
unofficial 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
LOGO
 H I S T O R Y
1862 1915
The Company builds its first
During The Civil War, Procter &
manufacturing facility outside
Gamble Is Awarded Several
the United States, in Canada.
Contracts To Supply Soap And
Employing 75 people, the plant
Candles To The Union Armies.
produces Ivory soap and Crisco.
1882 1917
Harley Procter Convinces The
U.S. Government requests
Partners To Allocate $11,000
Gillette supply razors and
To Advertise Ivory Nationally
blades for the
For The First Time.
entire U.S. Armed Forces
during WWI.
 h i s t o r y
1923
Crisco Sponsors Cooking Shows
On Network Radio, Placing
P&G
Among The Medium’s
Advertising Innovators.
1926
In response to the growing
popularity of perfumed beauty
soaps, P&G introduces Camay
 h i s t o r y

1935
The Company expands its
international presence
with the acquisition of the
Philippine Manufacturing
Company – the Company’s first
operations in the Far East.
 h i s t o r y
1939
Just five months after the
introduction of television in
the U.S., P&G airs its first TV
commercial (for Ivory Soap)
during the first televised major
league baseball game.
 h i s t o r y
1946
Tide, “the washing miracle,” is
introduced. Tide incorporates
a new formula that cleans
better than anything currently
on the market. Its superior
performance at a reasonable
price makes Tide the country’s
leading laundry product
by 1950.
 h i s t o r y

1988
The Company announces a
joint venture to manufacture
products in China. This is the
Company’s first operation in
the largest consumer market in
the 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 Sabzari
Country Manager
P&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 a k i s t a n P&G

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.
 VISION of P&G

“To be a leading consumer goods company and to improve

the lives of world consumers by providing valuable and
innovative products”.
 STATEMENT

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.
 GOALS
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.

 OBJECTIVES
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.

 PEST ANALYSIS
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.
.
 SWOT 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.
 COMPETITORS IN
ORGANIZED SECTOR
LEVER BROTHERS LIMITED
Brands In Pakistan
Brands In Pakistan
Brands In Pakistan
Brands In Pakistan
 SAFEGAURD & P&G

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.
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%.
 STEPS TO PROTECT ENVIRONMENT

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.
THANKS

THANKS
..??

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