1. Final
Presentation
on Procter
and Gamble
November 26
2014
Name : RISHIRAJ DAS
Roll No. : DM14B33
Sec : PGDM 2
Touching
Lives,
Improving
lives

2. Acknowledgement
I have taken efforts in this project. However, it would
not have been possible without the kind support and
help of many individuals. I would like to extend my
sincere thanks to all of them.
I am highly indebted to my mentor/sir Mr. Ashis
Bhagrav for his guidance and constant supervision as
well as for providing necessary information regarding
the project & also for his support in completing the
project.
I would like to express my gratitude towards my parents
for their kind co-operation and encouragement which
helped me in completion of this project

3. Contents
Topic 1 SECTORAL INFORMATION
1. Worldwide sectoral Contribution to the World Economy (GWP)
2. GDP % Contribution to the Indian Economy
3. Historical Growth/Degrowth Pattern observed in the last 5 years
4. The reasons for the Growth/Degrowth pattern observed in the sector.
5. Porter’s Five Forces Model
Topic 2 COMPANY INFORMATION
1. Promoters of the Company and company snapshot
2. Market Share of the company
3. Product/Services offered by the company
4. Competitor Analysis
5. News (Last 6/12 month) incl. corporate announcement
Topic 3 MARKETING STRATEGY
1. SWOT analysis of company
2. Conduct STP and market planning of company
3. Map the products/services of the company in BCG matrix and their PLC
4. Comparison of sales of company for past 3 years
5. The marketing and promotional strategy of the company and link it with current
company performance
Topic 4 BUSINESS FINANCE
1. Gross Profit and Net Profit Margin of the company
2. Direct and indirect costs of the company Fixed assets added during the year
3. Working Capital requirement for the year
4. Debt/Equity ratio of the company and its implications
Topic 5 HUMAN RESOURCE MANAGEMENT
1. Organization Structure
2. Analysis of JDs and Job Specifications Training needs of the company
3. Organization culture (as per employee reviews or research findings)
Topic 6 BIBLIOGRAPHY
Topic 7 CONCLUSION

4. Topic 1 SECTORAL
INFORMATION

5. Worldwide sectoral Contribution to the World Economy (GWP)
Sectoral Contribution in World
Economy
23.20%
16.80%
13.90%
13.50%
1999-00
2007-08
2012-13
2013-14
GDP % Contribution to the Indian Economy
54%
29%
17%
Manufacturing
Service
Agriculture
Sectoral Contribution towards Indian GDP

6. Historical Growth/Degrowth Pattern observed in the
last 5 years
44.9
41.1
34.8
30.2
24.2
2014 2013 2012 2011 2010
2070
2060
2050
2040
2030
2020
2010
2000
1990
1980
1 2 3 4 5
CAGR Rate
Years
 The industry has tripled its size over the past 10 years growing
much faster than in recent decades.
 The FMCG sector is the fourth largest in the Indian economy,
with a total market size of USD44.9 bin in 2014.
 The sectors growth has been driven by increasing consumption,
resulting from rise in incomes , changing lifestyles and
favorable demographics.
 Though the fmcg sector continues to grow in double digits, there
has been some moderation (9.4%) in growth rates during 2014
due to declaration of GDP growth and high inflation.
Source: Spark Capital December 2014 report, The Hindu Business Line,
Aranca analysis

7. Porter’s Five Forces Model
Threat of Competition: HIGH
P&G’s market environment is highly competitive, with global, regional, and
local competitors. In many of the markets and industry segments in which P&G
sells its products, P&G competes against other branded products as well as
retailers’ private-label brands.
Threat of New Entrants: LOW-MODERATE
The threat of new entrants seems to be low overall but it depends on which
business segment of Procter & Gamble the threat is coming from. It is a low
probability for a new entrant to become as big and as well capitalized as P&G.
The biggest barriers to entry are derived from research and development
Bargaining Power of Suppliers: LOW
Procter & Gamble does not seem to have any reliance on specific suppliers and
P&G forms joint ventures and partnerships for new products.

8. Threat of Substitutes: LOW-MODERATE
The threat of substitutes is moderate and not high because most of the products
that P&G sells are necessities. There is no substitute for laundry detergent
besides different types of laundry detergent.
Bargaining Power of Buyers: MODERATE
The power of buyers is moderate because as mentioned, 15% of P&G’s sales
are to Wal-Mart who is a very demanding buyer. There are two tiers of buyers,
the retailers and the end consumer

9. Topic 2 COMPANY
INFORMATION

10. Overview of the Company
Procter & Gamble
 William Procter, a candle maker, and James Gamble, a soap maker,
immigrants from England and Ireland respectively who had settled earlier
in Cincinnati, who met as they both married sisters, Olivia and Elizabeth
Norris, 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 was born.
 In 1859, sales reached one million dollars. By this point, approximately
eighty employees worked for Procter & Gamble.
 During the American Civil War, the company won contracts to supply the
Union Army with soap and candles. In addition to the increased profits
experienced during the war, the military contracts introduced soldiers
from all over the country to Procter & Gamble's products.
 In the 1880s, Procter & Gamble began to market a new product, an
inexpensive soap that floats in water. The company called the soap Ivory.
William Arnett Procter, William Procter's grandson, began a profit-sharing
program for the company's workforce in 1887.
 As radio became more popular in the 1920s and 1930s, the company
sponsored a number of radio programs .As a result, these shows often
became commonly known as “soap operas”.
 Numerous new products and brand names were introduced over time, and
Procter & Gamble began branching out into new areas.
 The company introduced "Tide" laundry detergent in 1946 and "Prell"
shampoo in 1950. In 1955, Procter & Gamble began selling the first
toothpaste to contain fluoride, known as "Crest".

11.  In 1994, the company made headlines for big losses resulting from
leveraged positions in interest rate derivatives, and subsequently sued
Bankers Trust for fraud; this placed their management in the unusual
position of testifying in court that they had entered into transactions they
were not capable of understanding.
 In 1996, Procter & Gamble again made headlines when the Food and
Drug Administration approved a new product developed by the company,
Olestra .Also known by its brand name Olean, Olestra is a substitute for
fat in cooking potato chips and other snacks that during its development
stages is known to have caused anal leakage and gastro-intestinal
difficulties in humans.
 In January 2005 P&G announced an acquisition of Gillette, forming the
largest consumer goods company and placing Unilever into second place
.This added brands such as Gillette razors, Duracell, Braun, and Oral-B to
their stable.
 P&G's dominance in many categories of consumer products makes its
brand management decisions worthy of study.

12. Snapshot of Procter and Gamble
Company Details
Industry Household & Personal Products
House Procter & Gamble - MNC
Registered
Office Registered Office
Address
P & G Plaza,Cardinal Gracias Road,Chakala Andheri
(East)
Mumbai , 400099 , Maharashtra
BSE Code [500459]
NSE Symbol PGHH
Bloomberg PG IN
ISIN Code INE179A01014
Chairman R A Shah
Managing
Director Shantanu Khosla
Secretary Preeti Bishnoi
Source : www.aceanalyzer.com

13. Promoters of the company
Top 5 Promoters as on Sep 2014
Name % of Holdings No. of Shares Inc/Dec
Procter & Gamble Asia Holding BV 21221953 65.38 0
HDFC Trustee Company Ltd HDFC
Prudence Fund 1897544 5.85 -0.52
Rosemount LLC 1088137 3.35 0
Temple Trees Impex & Investment Pvt Ltd 619683 1.91 0
SBI Blue Chip Fund 561993 1.73 5
Source : www.aceanalyzer.com

14. Market Share of Procter and Gamble
4649.9
Market Share Price
The market share price of Procter and Gamble for last Six
months.
Source : www.aceanalyzer.com
5701.45
5401.35
5381
5299.6
4259.1
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14

15. Product/Services offered by Procter & Gamble
FABRIC AND HOME CARE
Fabric Care
Categories: Fabric Enhancers ,
Laundry Additives,Laundry
Detergents
Home Care
Categories: Air Care, Dish Care,
Surface Care, P&G Professional
Personal Power
Categories: Batteries
Source: Annual reports of P&G
BEAUTY
Beauty Care
Categories: Antiperspirant and
Deodorant, Cosmetic, Skin Care,
Personal Cleansing
PRESTIGE
Categories: Prestige
Hair Care
Categories : Hair Care, Hair Color
Salon Professional
Categories : Salon Professional
BABY, FEMININE AND FAMILY CARE
Baby Care
Categories: Diapers & Pants, Baby
Wipes
Feminine Care
Categories: Adult Incontinence,
feminine care
Family Care
Categories : Paper Towels, Tissues ,
Toilet Papers
HEALTH AND GROOMING
Personal Health Care
Categories: Gastrointestinal, Rapid
Diagnostics, Respiratory,
Vitamins/Minerals/Supplements
Shave Care
Categories : Electronic Hair Removal,
Female Blades & Razors
Male Blades & Razors, Other Shave
Care

16. Competitors Analysis
Competitor’s analysis according to the Net profit
23.35550238
Competitor’s analysis according to the Total Assets Return
24.23713085 42.13984889
Source : www.aceanalyzer.com
13.80303386
13.80059465
13.84466057
15.08518195
15.67417698
HUL
DABUR India
Godrej Consumer
Colgate
Marico
Emami
118.0174242
34.52633526
18.67091537
89.99933318
HUL DABUR India Godrej Consumer Colgate Marico Emami

17. Corporate Announcements
 Nov 24, 2014 - Old Spice Debuts “Dadsong” Holiday Ad as
Sequel to Much-Hyped”MOM Song” TV spot.
 Oct 28, 2014 – Wella Professionals Launches Partnership with
Match.
 Sept 20 , 2014 – P&G Delivers First quarter Core EPS of $1.07.
 Aug 19, 2014 - New Survey Finds Holiday Toy Shoppers Still
Forgetting To buy Batteries.
 July 15 , 2014 - P&G’s to webcast presentation from 2014
analyst meeting.
 June 5, 2014 – Tide Dry Cleaners opens second location in
southwest india

18. Topic 3 :MARKETING
STRATEGY

19. SWOT Analysis of Procter And Gamble
STRENGHT
 The company is valued at$191.47 billion on the market.
 Many of P&G’s products are considered non cyclical.
 P&G has over 300 brands globally which are available in over 180
countries.
 It has around 25 brands have annual sales over a billion dollars.
 Over 125,000 people are employed in P&G globally.
 Many of P&G’s products are considered non cyclical.
WEAKNESS
 P&G are losing their market share rapidly. In online media leadership and
presence P&G is lagging behind.
 The beauty and health products by P&G are mostly for women.
 P&G does not make and offer any private label products for the retail
customers.
 Offers multiple products in each category along with more than on brand.
 P&G invests every year $2 billion for research and development.
OPPURTUNITIES
 Tap rural markets and increase penetration in urban areas.
 The expontial growth of the middle class in emerging markets such as
China and India.
 An opportunity for P&G is health and beauty products for men.
 Fake products sold under the name of P&G brands.
 Its product have stiff competition from big domestic players and
international brands.
THREATS
 There is a cut throat competition in the fast moving consumer’s good
markets today.
 The private level growth is a serious threat to the P&G’s market share.
 In the market many substitutes for the P&G products at a cheaper price.

20. Segmenting, Targeting and Positioning
S
•Demographic - Family size
•Higher Middle Class People and Upper class society
•Urban and Semi urban area
•Many products segmented to both men and women
T
•General Customers
•Products targeted to babies of 4to 5 months ages, 10-
16 yrs age children and the adults persons
•Targeted to Upper, Middle and Lower class people
P
•Premium brands against its competitors
•Superior Technology
• Importance to Quality
•Enviornmental Friendly

21. Marketing Mix
The marketing mix is a business tool used in marketing and by marketing
professionals. The marketing mix is often crucial when determining a product or
brand's offering, and is often synonymous with the four Ps: price, product,
promotion, and place; in service marketing, however, the four Ps have been
expanded to the Seven Ps or eight Ps to address the different nature of services.
Product
 Product classification – service consumer good
 Product differentiation- form , features , performance , reliability
 Superior technology
 Attractive packaging
 Catchy taglines
 Established as a brand itself
Pricing
 Optional – feature pricing
 Product- line pricing
 Cost- plus pricing
 Competitive pricing
 Distribution pricing
Place
 In store placement strategy
 Already existing strong links in urban area
 Rural penetration
 Develop marketing channels as strong and penetrated so that it would
gain access to remote areas

22. Promotion
 Media
 Radio
 Hoardings
 Consumer promotion
 Fragrance oriented and eco friendly
 Newspaper
 Various promotional offers
 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.

23. BCG Matrix of Procter & Gamble
Stars
 Gillette
 Pantene
Relative Market Share
 Head & Shoulders
 Pamper
 Whisper
Question Mark
 Olay
Cash Cows
 Ariel
 Vicks
 Tide
 Oral - B
Dogs
 Ambi pur
H
i
g
h
M
a
r
k
e
t
G
r
o
w
t
h
H
i
g
h
L
o
w
High Low

24. PRODUCT LIFE CYCLE OF P&G
INTRODUCTION
1947, PANTENE HAIR TONIC
GROWTH
2003, VICKS & since 2005,PANTENE
MATURITY
In most of its brands
DECLINE
In the era of financial crunch & downtrend
PRODUCT LIFECYCLE: EXAMPLE VICKS
Vicks has reached the maturity stage (i.e.) most profit is earned by the market as
a whole. At this stage Research and Development is likely to be restricted to
product modification and improvement and perhaps to improve production
efficiency and quality.

25. Comparison of sales of company for past 3 years
Year Amount of sales % Change
2014 2050.94 21.58%
2013 1686.78 30.01%
Implications:
Amount of sales
2050.94
1297.41
1686.78
In the year 2014 Procter and Gamble made a sale of Rs. 2050.94,
where as in 2013 the sale was Rs. 1686.78 and also in the year 2012
the sale was Rs. 1297.41. The sale gradually increasing year to year.
Source : Annual reports of P&G
2014
2013
2012
2012 1297.41

26. Promotional Strategy
“Thank You, Mom” Campaign
 P&G's corporate campaign kicked off in April with its first ``Thank You,
Mom'' TV spot.
 It also has a dedicated ``Thank, You Mom'' Facebook page and app that
allows people to send ``Thank you'' messages to their mothers.
 P&G is sponsoring more than 150 global athletes.
 P&G is sponsoring a few athletes like boxer Mary Kom and runner
Kavita Raut, giving their mothers a chance to see them perform and
hopefully win at London this year.
 P&G expects the campaign to drive $500 million in sales.

27. TOPIC 4 : BUSINESS
FINANCE

28. Gross Profit and Net Profit Margin of the company
Particulars
Findings of Gross Profit Ratio
G.p./Net sales*100
Particulars 2014
%
2013
%
2012
%
Gross Profit Ratio 45.67%
42.80% 45.25%
Findings of Net Profit Ratio
PAT/Net sales*100
Particulars 2014
%
2013
%
2012
%
Net Profit Ratio 14.72% 12.04% 13.97%
Source : Annual reports of P&G
2014
Amt. in Rs.
2013
Amt. in Rs.
2012
Amt. in Rs.
Net Sales 2050.94 1686.78 1297.41
Less : Increase/decrease in stock 3.47 -34.34 -16.39
Raw Materials Consumed 808.34 737.79 540.53
Power/fuel Cost 15.10 13.89 9.84
Employee Cost 89.44 93.78 60.33
Other Manufacturing Expenses 197.77 153.60 115.90
Gross Profit 936.82 722.06 587.20
Profit After Tax(PAT) 14.72 12.04 13.97

29. Direct and Indirect costs of the company
Calculation of Direct Cost
2014
Amt. in Rs.
2013
Amt. in Rs.
Calculation of Indirect Cost
Particulars
Cost Change in Comparison to previous years
Source : Annual reports of P&G
2012
Amt. in Rs.
Raw Materials Consumed 808.34 737.79 540.53
Power/fuel Cost 15.10 13.89 9.84
Other Manufacturing Expenses 197.77 153.60 115.90
DIRECT COST 1021.21 905.28 666.27
Particulars
2014
Amt. in Rs.
2013
Amt. in Rs.
2012
Amt. in Rs.
General and Administration
Expenses
42.18 31.53 48.78
Selling and Distribution
Expenses
439.46 394.22 325.72
Miscellaneous Expenses 34.63 46.21 12.99
Depreciation 35.18 31.31 28.08
INDIRECT COST 551.45 503.27 415.57
Particulars 2014
%
2013
%
2012
%
DIRECT COST 12.80598
35.87284
--------
INDIRECT COST 9.57339
21.10354 ------

30. Fixed Assets during the year
Particulars 2014
Amt. in Rs.
2013
Amt. in Rs.
Fixed Assets
22,304
21,666
Fixed Assets added
638
In the year 2013 value of fixed assets was 21,666 and in the year
2014 it increases to 22,304. New fixed assets value added 638
Source: Annual report of P&G

31. Working Capital requirement
Particulars
2014
Amt. in Rs.
2013
Amt. in Rs.
2012
Amt. in Rs.
Inventories 118.52 118.90 92.27
Sundry Debtors 86.05 80.87 48.15
Cash and Bank 269.08 166.03 182.37
Other Current Assets 47.95 37.79 22.35
Loans & advances 490.83 437.11 424.15
Total Current assets 1012.43 840.70 769.29
Less: Current Liabilities 293.11 289.12 309.37
Provisions 208.99 152.08 89.57
Total Current Liabilities 502.10 441.20 398.94
Particulars
2014
Amt. in Rs.
2013
Amt. in Rs.
2012
Amt. in Rs.
Working Capital 510.33 399.50 370.35
Calculation of Working Capital requirement
Current assets – Current Liabilities
Source : Annual reports of P&G

32. Debt/Equity ratio of the company and its implications
Particulars 2014
Amt. in Rs.
Particulars 2014
2013 2012
Debt Equity Ratio 1.00% 1.00% 1.53%
Calculation of Debt Equity Ratio
Total Shareholders Fund/Shareholders Equity
Implications :
Here the Debt equity ratio is 1 which means that the company has a good capital
structure. Which is a good sign for the company
Source : Annual reports of P&G
2013
Amt. in Rs.
2012
Amt. in Rs.
Total Shareholders Fund 1005.84 808.11 1067.37
Shareholders Equity 1002.90 805.32 697.04

33. TOPIC 5 : HUMAN
RESOURCE
MANAGEMENT

34. Organization Structure of P&G

35. Analysis of JDs and Job Specifications posted by
the company on online-job portals
Designation Territory Manager - Parlour (east) - 1 Opening(s)
Job
Description
Responsible for Parlour Sales for East zone
Handling and leading team of front line Sales
Promotion officers and Sales Promoters.
Analysis and forecasting of sales data.
Sales and distribution management.
Desired Profile - Minimum of 6- 8 years of work experience plus
team handling exposure is must for this role.
- Candidates from the Cosmetic channel/ industry or
candidate with a fair amount of FMCG cosmetics
products experience are encouraged to apply.
- Candidates presently leading in managerial roles
are only encouraged to apply for this post.
- Minimum of 6- 10 years of work experience plus
team handling exposure is mandatory for this role.
- Candidates from the Cosmetic channel/ industry or
candidate with a fair amount of FMCG cosmetics
products experience are encouraged to apply.
- Candidates presently leading in managerial roles
are only encouraged to apply for this post.

36. - 75% tour is applicable in this managerial position.
Experience 6 - 10 Years
Industry Type FMCG
Role Area / Territory Manager
Functional
Area
Sales, Retail, Business Development
Education UG - Any Graduate - Any Specialization
PG - Any Postgraduate
Doctorate - Doctorate Not Required
Compensation: 5,50,000 - 11,00,000 P.A. Salary not constraint for
right talent.
Location Kolkata
Keywords Regional Territory Manager - Parlour
Contact HRManager
Procter and Gamble
Job Posted 2014-11-02 19:18:54.0
Source: www.naukri.com

37. Training needs of the company
 Sales Training
 Training for the new products
 Analytical thinking for launching an ad for that product

38. Organisational Culture
Procter & Gamble is 5 in The 2014 DiversityInc Top 50 Companies for
Diversity, which it achieved by combining corporate diversity with a
passion to change lives (Visconti). Organizational culture consists of
shared values and beliefs that allow employees to understand their roles
and the values of the company (Luthans, 158). Bob McDonald, CEO of
P&G, said that the difficulty of moving into another culture and
expanding globally is bringing your values with you. Diversity, then, is a
strategy for P&G: “if I’m trying to improve someone’s life, would I be
better off having somebody in the organization who is of that
representation so they can help the company be empathetic to the
consumer?” (Visconti). By having a diverse workforce, P&G sets itself up
for success because these employees bring in different backgrounds
and knowledge about different cultures, allowing them to connect with
consumers all across the globe.
Other advantages to diversity include enhanced creativity, better
decision making, and more effective and productive performance
(Luthans, 175). McDonald strives to capitalize on using diversity to stem
innovation. The generation of better ideas is more likely when individuals
come from a variety of different cultures. This allows for the opportunity
of more unique solutions and recommendations.

39. Conclusion
As we know this market is known as FMCG market so there are
many competitor in this time in the market so P&G company were
focused in this time and target the middle class segment for
increasing the sales as well as market shares .
Some products like Gillette is made by the company to target the
higher segment of the market.
In India HUL is biggest competitor in FMCG market.

40. Bibliography
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df
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kelloggs-haslarger-canvas-in-india/464942/
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 www.aceanalyzer.com
 www.ibef.org
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