touching lives inproving life p&g

8/3/2019 Touching Lives Inproving Life p&g

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TOUCHING LIVES, IMPROVINGLIFE.

PROCTER & GAMBLE

Presented By: Group 7

ArijitAbhishekBharatKiranShaivya

Syed


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Founded 1837 *(American multinational corporation)

Headquarters - Cincinnati, Ohio, USA

Industry - Consumer goods

Revenue - US$ 83.503 billion (2008)

Net income - US$12.075 billion (2008)

Employees - 138,000Website - www.pg.com

Products are available in 140 countries
http://www.pg.com/http://www.pg.com/


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8th largest corporation in the world by market capitalization (2008)

14th largest US company by profit

10th in Fortune'sMost Admired Companies list (as of 2007)

P&G was named 2008 Advertiser of the Year by Cannes InternationalAdvertising Festival spending $2.62 billion

Awarded inaugural social innovation award by the financial times

Ranked 2nd in the chief executive magazines Best companies forleaders

In October 2008, P&G was named one of "Canada's Top 100Employers" by Mediacorp Canada Inc.,
http://en.wikipedia.org/wiki/Fortune_500http://en.wikipedia.org/wiki/Canada%2527s_Top_100_Employershttp://en.wikipedia.org/wiki/Canada%2527s_Top_100_Employershttp://en.wikipedia.org/wiki/Canada%2527s_Top_100_Employershttp://en.wikipedia.org/wiki/Canada%2527s_Top_100_Employershttp://en.wikipedia.org/wiki/Canada%2527s_Top_100_Employershttp://en.wikipedia.org/wiki/Canada%2527s_Top_100_Employershttp://en.wikipedia.org/wiki/Canada%2527s_Top_100_Employershttp://en.wikipedia.org/wiki/Canada%2527s_Top_100_Employershttp://en.wikipedia.org/wiki/Canada%2527s_Top_100_Employershttp://en.wikipedia.org/wiki/Fortune_500


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William Procter, a candlemaker, and James Gamble, a soap-maker,immigrants from England and Ireland, respectively, who had settled earlierin Cincinnati, who met as they both married sisters, Olivia and ElizabethNorris formed the company initially.Alexander Norris, their father-in law called a meeting in which he convinced

his new sons-in-law to become business partners.On October 31, 1837, as a result of the suggestion, Procter & Gamble wasborn.
http://en.wikipedia.org/wiki/William_Procter_%2528candlemaker%2529http://en.wikipedia.org/wiki/James_Gamble_%2528industrialist%2529http://en.wikipedia.org/wiki/James_Gamble_%2528industrialist%2529http://en.wikipedia.org/wiki/James_Gamble_%2528industrialist%2529http://en.wikipedia.org/wiki/James_Gamble_%2528industrialist%2529http://en.wikipedia.org/wiki/William_Procter_%2528candlemaker%2529http://en.wikipedia.org/wiki/William_Procter_%2528candlemaker%2529http://en.wikipedia.org/wiki/William_Procter_%2528candlemaker%2529


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Procter & Gamble manufactures its productacross the globe. Manufacturing operations

arebased in the following regions:

United States

Canada

Latin America

Europe

China (31 wholly-owned factories)

and other parts of Asia, Africa & Australia


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Growth Aspiration Business Model

Unilever P&G

Source: Business.in.com


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Rationalizing Sales & Distribution System

Ambitious targets to expand distribution cover

Pushed for direct coverage of rural markets and urban markets

Overlooked one critical factor - cost of extending distribution cover


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Rewriting of the focus areas

Laundry

Sanitary napkin

Vicks

Promoting top end products

Process of redrawing the organizational boundaries

85% of the sales - top 30 towns

Current volume did not justify large distributor network

Large distribution network meant

Not large enough volumes by a single distributor for a attractive ROI

Distributor trying to increase reach to push up volumes

P&Gs portfolio of High Margin, Low volume products merely increased the cost of servicing


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Achieve significant cost savings in its supply chain

Distributors economics - channel design

ROI in working capital intensive business is the number of rotations(The number of times the distributor can turnover his investment instock multiplied by the margin of rotation)

Super - Stockiest setup

Replenishing of stock frequently and reduce stock levels ofdistributors

Offering more volumes and reducing the distribution (cost ofoperation)

Advertising to fight competitors

Maintain distributors ROI in a band between 30-40%


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touching lives inproving life p&g

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