p


  

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   !  "#
 A .G. Lafley (Chairman)

2


r p pr
ide branded pr ducts and
ser
ices f superi r quality and
alue
that impr
e the li
es f the w rld's
c nsumers, n w and f r generati ns t
c me.
 
 
r á unded ² 1837 *(American multinati nal c rp rati n)
r Headquarters - Cincinnati, Ohi , USA
r Key pe ple - A. G. Lafley, Chairman, President, and Chief
Executi
e.
r Industry - C nsumer g ds
r Re
enue - US$ 83.503 billi n (2008)
r $ 79 billi n (2009)
r Net inc me - US$12.075 billi n (2008),
r $ 13.436 billi n (2009)
r Empl yees - 138,000
r Website - www.pg.c m
r Pr ducts are a
ailable in 140 c untries
 
 
r Pr cter & Gamble is the w rld's largest pr ducer f
h useh ld and pers nal pr ducts by re
enue
r Its pr ducts reaching 4 billi n pe ple w rldwide
r P&G's pr duct line includes 23 brands acr ss
beauty, healthcare, and f d including pide
detergent, Pampers diapers, and Gillette raz rs,
that generate
er $1 billi n in re
enue annually
r In 2005, P&G expanded its p rtf li t include
raz rs and blades as well as batteries with its
acquisiti n f the Gillette C mpany
 „

r William Pr cter, a candlemaker, and James Gamble, a
s apmaker, immigrants fr m England and Ireland, respecti
ely,
wh had settled earlier in Cincinnati, wh met as they b th
married sisters, Oli
ia and Elizabeth N rris f rmed the
c mpany initially.
r Alexander N rris, their father-in law called a meeting in which
he c n
inced his new s ns-in-law t bec me business
partners.
r On Oct ber 31, 1837, as
a result f the suggesti n,
Pr cter & Gamble was b rn.
    

Effecti
e July 1, 2007, the c mpany's perati ns are categ rized int three
"Gl bal Business Units" with each Gl bal Business Unit di
ided int
"Business Segments," acc rding t the c mpany's June 2007 earnings
release.
r $
r Beauty segment
r Gr ming segment
r #"#%
r Baby Care and áamily Care segment
r áabric Care and H me Care segment
r %"&%% '
r Health Care
r Snacks, C ffee and Pet Care

r pwenty-f ur f P&G's brands

ha
e m re than a billi n d llars
in net annual sales and an ther
18 ha
e sales between $500 milli n
and $1 billi n.
 2 
 
Pr cter & Gamble manufactures its pr ducts acr ss the
gl be. Manufacturing perati ns are based in the
f ll wing regi ns:
r United States
r Canada
r Latin America
r Eur pe
r China (31 wh lly- wned
fact ries) and ther parts
f Asia
r Africa
r Australia

  
 



 


r $())*#+,--.%)/*#+,--. 

 !#01
r %" &%% '(,2*#+,--.%,3*
#+,--.  !#01
r #"#%(3/4*#+,--.%3)*#+
,--.  !#01


 

r In 1930 acquisiti n f the Newcastle up n pyne-

based ph mas Hedley C . terms f manufacturing
and pr ducti n.
r á lgers C ffee, N rwich Eat n Pharmaceuticals,
Richards n-Vicks, N xell, Shult n's Old Spice, Max
áact r, and the Iams C mpany, am ng thers were
als acquired.
r In January 2005 P&G ann unced an acquisiti n f
Gillette, f rming the largest c nsumer g ds
c mpany and placing Unile
er int sec nd place.



„  
 

r #%'%
On June 4, 2008, P&G s ld its á lgers c ffee unit t J.M. Smucker C f r
$2.95 billi n. As part f the deal, P&G shareh lders will recei
e a 53.5
percent stake in Smuckers and the c mpany will assume $350 milli n f
á lger's debt.
r %%!#
Pr cter & Gamble acquired Gillette in 2005 f r
er $50 billi n in its largest
acquisiti n
r %#+"0!!%

In 2009 P&G s ld its pharmaceutical unit t Warner Chilc tt Plc f r $3.1
billi n in cash. phe c mpany expects t b k a 43 cent per share earnings
b st in Q2 f fiscal 2010 as a result f the sale.
r % %
In January 2010, the c mpany ann unced it w uld pursue its wn nline
retail st re t sell its c nsumer pr ducts t US end-users, putting it in direct
c mpetiti n with maj r retailers in reaching c nsumers.
     

r Ariel is a brand f laundry detergent/liquid a
ailable in numer us f rms and
scents.
r B unty is a brand f paper t wel s ld in the United States and Canada.
r Braun is a small-appliances manufacturer specializing in electric sha
ers, epilat rs,
hair care appliances and blenders.
r Crest is a brand f t thpaste and teeth whitening pr ducts.
r Dawn is a brand f dishwashing detergent.[10]
r D wny/Len r is a brand f fabric s ftener.
r Duracell is a brand f batteries and flashlights.
r áusi n is a brand f men's wet sha
e raz rs and is the quickest P&G brand t ha
e
reached $1 billi n in annual sales.
r Gain is a brand f laundry detergent and fabric s fteners.
r Gillette is a brand f safety raz r and male gr ming pr ducts.
r Head & Sh ulders is a brand f shamp and c nditi ners.
r Old Spice is a brand f aftersha
e, De d rants, S aps and B dywash.
r I
ry is a s ap.
r Nice 'n Easy is a hair c l ring pr duct.
r Olay is a brand f w men's skin care pr ducts.
r Oral-B is a brand f t thbrush, and ral care pr ducts.
r Pampers is a brand f disp sable diaper and ther baby care pr ducts.
r Pantene is a brand f hair care pr ducts (c nditi ners/styling aids).
r Pril sec OpC is a brand f heartburn medicine c -marketed by AstraZeneca.
r Pringles is a brand f p tat chips.
r Puffs is a brand f facial tissue.
r Secret is a brand f antiperspirant and de d rant.
r pAG is a de d rant and b dy spray.
r pide is a brand f laundry detergent.
r Vicks is a brand name f
er-the-c unter medicines (á rmula 44, Sinex,
NyQuil/DayQuil)
r Wella is a brand name f hair care pr ducts (shamp , c nditi ner, styling, and
hair c l r).
r Whisper is a brand f pantyliners s ld primarily in Asian markets.
2   
  
r t maintain its c mpetiti
e edge by f cusing n pr duct
inn
ati n
r p spend alm st twice as much n research and de
el pment
spending ($2.0 billi n in 2009) as its cl sest c mpetit r
r Ad pt "C nnect + De
el p" initiati
e, t bring new pr duct
ideas fr m utside the c mpany. C nnect + De
el p has led t
the de
el pment f 42% f new P&G pr ducts in recent years
r p f cus n emerging markets w rldwide BRIC and many m re
r Establish a R& D (research and de
el pment) gr up which able
t make a new inn
ati n f Sc pe pr ducts
r Impr
ing pr ducti n by upgrading pechn l gy
r Brand building and better marketing strategies

  


r SpRENGpH
r New Management
r Gr ss Margin 15 pimes the Industry A
erage
r One f the best marketers in the w rld
r Di
ersified brand p rtf li : m re than 300 brands with m re than 79
billi n in Re
enue
r pightly integrated with the largest retailers in the US and ar und the
w rld
r Pr duct inn
ati n
r palented management
r Distribute t 80 C untries
r Distributi n channels all
er the w rld
r New Billi n D llar brands
 


r p p Brands L sing Market Share
r Health and Beauty W men Only
r Lagging behind in nline media presence & leadership
r Missing pp rtunity: Refuses t manufacture pri
ate label
pr ducts f r its retail cust mers
r Sl w Pr cess Hea
y Culture
r Weak brands (Duracell, Iam, Braun, Pringles)
r Views Pr duct Perf rmance nly
r Expansi n f r brands is limited
 

r Health and Beauty f r Men
r D ubling En
ir nmental G als f r 2012
r Adding Value f r the C nspiracy
r Utilizing nline s cial netw rks
r G ing Green/Ec áriendly
r Capitalizing n nline media
r C ntinue t di
est brands that d n't align with the c mpany's
l ng-term g als (i.e., á lgers)
r Emerging markets
r New acquisiti n pp rtunities
r Selling directly t c nsumers
r Design f r better pr duct experience
„ 

r Substitute brands that ha
e a cheaper price
r Pri
ate label gr wth
r Sl wd wn in c nsumer spending in the US & gl bally
r Key c mpetit rs expanding their pr duct p rtf li s thr ugh
acquisiti ns
r Increase in raw material price
r C mm dity c st and currency exchange rate placed
tremend us pressure n the business

  



  
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