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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