Report on Management and HRM of P&G. Its History, introduction, internal and external environments,product line, marketing, pricing, promoting strategies with video ads, HR functions and methods, organizational structure......

2. Presented by:

3. HISTORY OF P&G
• P&G is an American multinational consumer
goods.
• Company Headquarter in Ohio , United States.
• P&G was founded in 1837 by William Procter and
James Gamble.
• William a Candle maker and James a Soap maker.
• On 31 October the Procter and Gamble company
was created.

4. FOUNDERS OF P&G

5. P&G HISTORY: A LEGEND OF FIRSTS
• 1837: William Procter and James Gamble started making
and selling candles and soap.
• 1859: After the partnership is formed, P&G sales reached
$ 1 million.
• 1862:During the Civil war, Procter & Gamble was awarded
several contracts.
• 1879:An inexpensive, but high-quality IVORY soap was
introduced.

6. P&G HISTORY: A LEGEND OF FIRSTS
• 1895: King Camp Gillette invented the first safety razor.
• 1896: First color print advertisement- an ad for Ivory.
• 1924: A market research department is created.
• 1937: P&G celebrated its 100th anniversary , Sales reach $230 million.
• 1955: Creates the first tooth paste.
• 1961:Pmpers is introduced and eventually replaces clothes diapers.

7. P&G HISTORY: A LEGEND OF FIRSTS
• 1980: Sales reached $ 10 billion.
• 1987: P&G celebrated its 150th anniversary.
• 2002: P&G developed Naturally feminine pads.
• TODAY P&G operates in 80 countries world wide ,
employing more than 100,000.
• Its slogan is Touching and Improving Lives.

8. ORGANIZATIONAL STRUCTURE

9. ORGANIZATIONAL STRUCTURE
• It specifies the firm formal reporting relationships ,
procedures , controls and authority decision.
• It is comprised of Global business units , Selling and Market
operations , Global Business Service and Corporate
Functions.
• Global Business Units are responsible for developing
overall strategies.
• Selling and Market operations help in developing and
executing market plans at the local level .
• Global Business Services provides technology , processes
and standard data tool.

10. MEMBERSOF P&G
• A.G Lafley:
Chairman of the board , president
and chief executive officer of the company.
• Francis S . Blake :
Former chairman of the board

11. MEMBERSOF P&G
• Davis S . Taylor:
Group president , Beauty , Grooming and Health care
President and chief Executive Officer.
• Mark Biegger:
Chief Human Resource Officer.
• Steven D. Bishop:
Group President , Global Oral Care.
• Giovanni Ciserani:
Group President , Global Fabric & Home Care.

12. MEMBERSOF P&G
• Linda W . Clement- Holmes:
Chief Information Officer.
• Mary Lynn Ferguson Mc
Hugh:
Group President, Global Family
care.
• Colleen E Jay:
President Beauty Specialty
Businesses.
• R . Alexandra Keith:
President Global Skin and
Personal care.

13. EXTERNAL ENVIONMENT OF P&G
Economic:
 Adapted to the recession by lowering earning projections.
 Shed 15% of the management staff.
 Focus on the 43 best-selling brands
 Have to keep up with changing trends in consumer demand.

14. EXTERNAL ENVIRONMENT OF P&G
Demographic
Everybody will use most these products.
Middle to upper class consumers due to the higher
price of the brand name products.
Global – in more than 80 countries

15. EXTERNAL ENVIRONMENT OF P&G
Legal / Regulatory
 Must meet industry regulations and standards inmany different countries
Competition
Three main competitors
 Johnson & Johnson
 Kimberly-Clark
 Unilever
 L'Oreal

16. EXTERNAL ENVIRONMENT OF P&G
Competitor Analysis:
Stiff competitors like Estee Lauder, Maybelline and
LOreal.
The cost of switching is very less.
The main competitors are the ones which manufacture
same range of cosmetics but at lower cost.
P&G products must be capable enough to put strong
competition to its opponent products.

17. EXTERNAL ENVIRONMENT OF P&G
Domestic Competition:
 New products coming with private labels in local
markets every now.
 P&G should follow some innovation.
 Introduce new and fresh products.
 Wal-Mart is the biggest buyer of P&G products.
 It has formed strategic alliances with it.

18. EXTERNAL ENVIRONMENT OF P&G
International Competitors:
 Most fit for survival across the international market.
 The huge global scale of P&G allows it to get an edge over
LOreal in developing countries.
Competitive Advantage:
 Has diversified product portfolio.
 The P&G has created brand awareness.
 By recession which is why it again gains an edge over
LOreal i.e. cosmetics range.

19. INTERNAL ENVIRONMENT OF P&G
P&G – Epitome of culture
• In P&G, they use we instead of I.
• Everyone at P&G is like a hand in a bucket of water-
when the hand is removed, the water closes in and
there is no trace.
• Conform and you succeed; questions and you are
gone.
• Research as an integral part of P&G thoroughness.
• It s aim is to produce products that consistently win
the consumers blind tests.

20. INTERNAL ENVIRONMENT OF P&G
 Core values are:
1) Leadership
2) Ownership
3) Integrity
4) Passion for winning
5) Trust
 Principles:
1) Show respect for all individuals.
2) Strategically focused on work
3) Seek to be the best.
4) Innovation is cornerstone towards success.
5) Mutual Interdependency is a way of life.
6) Externally focused.

21. INTERNAL ENVIRONMENT OF P&G
Human Resources:
• Hire and retain some of the most talented people in the
industry.
• Rewarded and recognized for their contributions.
• Global training programs on managing the innovation
process.
• Training for high-potential junior staff.

22. INTERNAL ENVIRONMENT OF P&G
P&G s internal strategy is to focus on core strengths to win the
customer products industry
 Consumer Understanding:
P&G conducts over 20,000 research studies.
 Innovation:
Is recognized as the industry s global leader in innovation.
 Brand Building:
Portfolio of 50 leadership brands which make up 90% of sales .
 Go-to-Market Capabilities:
P&G is ranked as the preferred supplier by leading retailers.
 Scale:
Allocating resources more strategically and efficiently.

23. INTERNAL ENVIRONMENT OF P&G
Marketing:
 Constant emphasis on building brand recognition andbrand
value
 In the s it was one of the first companies to advertise
nationally.
 In the s, P&G was the first firm to develop the idea
of brand management.
 In the s they used their own soap operas and radio
programs for advertising.

24. INTERNAL ENVIRONMENT OF P&G
Research:
 World class R&D organization, with more than 7,500
scientists.
 This includes 1,250 Ph.D. scientists.
 Invest 4% of sales back into research & development.
 Lafley had an enormous impact on P&G in an attempt to
turn a stalling company around.

25. INTERNAL ENVIRONMENT OF P&G
Leadership
A.G. Lafley states that:
 To define and interpret the meaningful outside (external
environment).
 To answer the two-part question:
What business are we in and what business are we
noting?
 To balance sufficient yield in the present with investment in
the future.
 To shape the values and set the standards of the
organization.

27. WAS THIS THE ONE???

28. P&G PRODUCTS
 Always is a brand of feminine hygiene products.
 Ariel is a brand of laundry detergent.
 Atonal is a brand of osteoporosis drug.
 Bounty is a brand of paper towels.
 Braun is a small-appliances manufacturer
specializing in electric razors, coffeemakers,
toasters, and blenders.
 Crest is a brand of toothpaste.
 Dawn is a brand of dishwashing detergent.

29. P&G PRODUCTS
 Downy/Lenora is a brand of fabric softener.
 Duracell is a brand of batteries and flashlights.
 Fusion is a brand of men's wet shave razors.
 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.
 Old Spice is a brand of aftershave and shaving cream.

30. P&G PRODUCTS
 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.
 Pantene is a brand of hair care products.
 Prilosec OTC is a brand of heartburn medicine.
 Pringles is a brand of potato chips.

31. P&G PRODUCTS
 Puffs is a brand of facial tissue.
 Secret is a brand of antiperspirant and deodorant.
 Safeguard is global personal care brand.
 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
 Whisper is a brand of panty liners sold primarily in Asian
markets.

32. Beauty Segment
Competition and Growth
 Competitors
 Unilever
 LOreal
 Private Labels
 3% Net sales growth from 2011
 % of P&G s Net Sales are from the Beauty
segment

33. BRAND AWARENESS

34. BRAND AWARENESS

35. DISTRIBUTION AT P&G
 The distribution is of three types, which are being
followed :
 Intensive distribution
 Extensive distribution
 Specialty distribution

36. DISTRIBUTION CRITERIA
 Ordering Speed:-
Manufacturing of product and the time till it reaches the
consumer.
 Delivery Flexibility:-
How easy to distribute the product.
 Personal Selection And Customization:-
Which distribution channel to select.

37. Basic Channels of Distribution
Manufacturers/products
Agents
Wholesalers/distributors
RetailersRetailers
Consumers and organizational end users

38. 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

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

40. AN INTEGRATED CASCADE OF CHOICES

41. DIFFERENT PRICING STRATEGIES
ADOPTED BY P&G
 Optional-features strategy
 Product-line pricing
 Cost-plus pricing
 Competitive pricing
 Distribution pricing

42. ONLINE MARKETING
 The company has actively developed or sponsored
numerous online communities.
 As of 2000, the company had 72 "highly stylized
destination sites.

43. HR SYSTEM AND STRATEGIES
 The HR function at P&G isn t traditional support
function but a strategic function.
 P&G has unique Human Resource strategies e.g.
promote from with in philosophy.
 People are recruited at the entry level.
 Through continuous mentoring people with in the
company at highest levels.

44. HR PLANNING
 The HR planning in P&G is done by different
departments and business units.
 P&G hires people from base level and then promote
people from with in.
 P&G has strong policy of job rotation.
 The job analysis is based on success drivers.

45. HIRING PRINCIPLE

46. HR DEPARTMENT OF P&G
 The HR department at P&G is a strategic function.
 The department helps form and implement strategies.
 HR here is a change and development agent and not
the policy of the organization.
 HR sits at the table while making policies, procedures,
goals, and strategies.

47. Human Resource Development
Function:
Talent Supply
Management
Organization
Involvement
Organizational
Excellence
Maximization
Development
Of External
Relations
Maximize
capability

48. RECRUITMENT & SELECTION AT
P&G:
Recruitment and selection is done in following steps:
Job structure and definition
Job description
Job specification
Job standards
Selection

49. P&G RECRUITMENT AND
SELECTION PROCESS:

50. SELECTION PROCESS:
Application
Assessment
Initial Interview
Final Interview
Your offer and Your future

51. TYPES OF SELECTION DEVICES:
 Written tests
 Online evaluation
 Screening interview
 Panel interview

52. ORIENTATION:
Two type of orientation takes places at P&G:
 Work unit orientation
 Organization orientation

53. 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
 Warehouse Training
 Action Learning

54. IMPROVE PRODUCTIVITY IN ALL
AREAS
 Cost of Goods
 Reduce Raw Material costs
 Long-term contracts
 Increase Number of Suppliers
 Reduce excess inventory
 Develop partnerships (PGT Healthcare)
 Research & Development ~ $2 billion annually
 Continuous improvement
 Product Innovation

55. GROWTH IN DEVELOPING MARKETS
80%
77%
63%
20%
23%
37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
FY '00 FY '05 FY '12
%ofTotalCompanySales
P&G Sales Growth: 2000 to 2012
Developed
Developing
 Company-wide initiative: Acquire 1 billion additional
consumers by 2014/2015

56. SWOT ANALYSIS OF P&G:
STRENGTH:
Product innovation.
Offers multiple products.
Strong Brand Image.
Strong customer liability.
Diversified business structure.
Research and development.
Global Operation.
Strong Distribution Network.

57. SWOT ANALYSIS OF P&G:
WEAKNESS:
 Views product performance only.
 Increased promotional spending to keep healthy sales.
 Customer concentration.

58. SWOT ANALYSIS OF P&G:
OPPORTUNITIES:
 Going Green/ Eco friendly
 Emerging markets
 Selling directly to customers
 Better product experience
 Diversification.
 Capitalizing on media.

59. SWOT ANALYSIS OF P&G:
THREATS:
Substitute of brands that have cheaper price.
Slow down in consumer spending.
Key competitors expanding their product portfolios
through acquisitions.
Increase cost of raw material.
Competition.
Government regulation.

60. P&G VS PRIVATE LABELS
 Intense competition
 Private labels are much cheaper
Company % - 2010 % - 2011 % Change
Wyeth Labs, Inc. (Pfizer) 25.17 25.87 0.7
Reckitt Benckiser 26.82 24.23 -2.59
Private label 24.78 22.17 -2.61
Procter and Gamble Co. 13.59 19 5.41
Other 3 3.31 0.31
Novartis Consumer Health 2.61 3.02 0.41
Blacksmith Brands 0.65 1.12 0.47
Health Care Products 1.36 0.73 -0.63
Boiron-Borneman 1.13 0.55 -0.58
Qualitest Products 0.9 0 -0.9
Top Cough Syrup Makers - Market Share

61. ENVIRONMENT PROTECTION
• Environment suffers due to industrialization and
development.
• Development must be carried out keeping the
sustainability in mind.
• The P&G Co. today expanded its sustainability goals to
continue creating value.
• We continue to improve the environmental sustainability
of our products.
• Expanded its social sustainability work, touching and
improving the lives each year through:
 Children Safe Drinking Water
 Pamper UNICEF Partnership.

62. ENVIRONMENT PROTECTION
• We focus on areas where we can make the biggest positive impact.
• We include sustainability into every aspect of our products—from
initial design to manufacturing to packaging to social impact.

63. ENVIRONMENT PROTECTION

64. ENVIRONMENT PROTECTION

65. ENVIRONMENT PROTECTION
 Olay has reduced water usage
by 12%.
 Thanks to a special pump
redesign.
 Olay diverts manufacturing
waste.
 Its plant in Ireland has reduced:
 energy consumption by 12%
 CO2 emissions by 16%.

66. ENVIRONMENT PROTECTION
Cascade Platinum
 Cascade Platinum is a dishwashing product.
 Innovation to conserve resources at home.
 They eliminate the need to pre-rinse dishes before
putting them into the dishwasher.

67. ENVIRONMENT PROTECTION
• We see sustainability as an opportunity.
• Our objective is lead value with brands and products
that consumers prefer.
• We conserve resources, protect environment and
social conditions.
• Ensure our products, packaging and operations are
safe.
• Actively encourage reuse, recycling and composting.

68. P&G AWARDS AND ACHEIVEMENTS
National Association for Female Executives:
 Recognized by the National Association for Female
Executives as one of the Top 50 Companies for Executive
Women
 Ranked # on the World s Most Respected Companies
List

69. P&G AWARDS AND ACHEIVEMENTS
AC Nielsen Survey:
 Ranked # 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.

70. FACTS AND FIGURES

71. Top 10 Advertisers in 2014 (Q1)

72. REVENUE GROWTH OF P&G

73. OLYMPIC GAMES SPONSERSHIP

74. KEY TO SUCCESS OF P&G