Documente Academic
Documente Profesional
Documente Cultură
Submitted by:
Mahwish Malik
MBA- I 3rd semester
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OPERATIONS MANAGEMENT: 2008
MEMBERS
WHO SUPPORTED ME IN EVERY
WAY OF LIFE AND DID NOT LET ME
DOWN
&
ALL WELL WISHER’S
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ACKNOWLEDGEMENT
I have the only pearl of eyes to admire the blessing of the Compassionate and
Omnipotent because the words are bound, knowledge is limited and time is short
to express His dignity. All thanks are due only to Almighty Allah, most gracious,
the most merciful, who gave me the strength to do this job. My special praise for
Holy Prophet Muhammad (Peace Be Upon Him) who is, for even humanity as a
whole.
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Executive Summary
The boundaries that define competition are subject to environmental changes such
as technological advances or evolving consumer preferences (Day, Shocker and
Srivastava 1979).
The businessmen of today have to confront with multifarious challenges and coop
with hyper competitive environment with ever increasing threats from unknown
directions. To survive in this environment we have to come up with new products
with attributes compatible or superior to that of the competitor. For becoming
market leader they would require extra ordinary marketing & management skills.
They will have to maintain their brand image and ensure that customers remain
hardcore loyal to their brand, for this purpose they should add extra value and
more satisfaction with reasonable cost. In order to capture more and more market
share they should conduct extensive research of the market and spend handsome
amount on developing innovative and quality products. Also enhances
competitive advantage and capture maximum market share.
For capturing sand maintaining maximum market share and to remain market
leader the marketing manager should have a very efficient supply chain
management system. Marketing mix strategy should be reviewed periodically to
remain abreast with latest trend, changes, and consumer preferences prevailing in
the market. They should devise effective messages, communication channel, and
allot suitable promotion budget. As the customer trends are changing components
of promotion mix should be selected carefully and focus on sales promotion rather
than advertising. Marketers should not aim on one time profit rather they should
plan for maintaining strong loyal customer’s base. This will result in repeat sales.
The management of P&G are following all these techniques and ethics in order to
their competitive advantage, capture maximum market share, remain market
leader, provide maximum value and satisfaction to customers and established
abroad base of hardcore loyal customers. So far so good they have succeeded.
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HISTORY:
Established in 1837, The Procter & Gamble Company began as a small, family
operated soap and candle company in Cincinnati, Ohio, USA. Today, P&G
markets almost 300 products to more than five billion consumers in 140 countries,
Pakistan being one of them.
1837
Neither William Procter nor James Gamble ever intended to settle in Cincinnati.
Although the city was a busy center of commerce and industry in the early
nineteenth century, William, emigrating from England, and James, arriving from
Ireland, were headed farther west.
Despite their intentions, however, both men ended their travels when they arrived
at the Queen City of the West—William took care of his ailing wife, Martha, who
soon died, and James sought medical attention for himself.
William Procter quickly established himself as a candle maker. James Gamble
apprenticed himself to a soap maker. The two might never have met had they not
married sisters, Olivia and Elizabeth Norris, whose father convinced his new sons-
in-law to become business partners. In 1837, as a result of Alexander Norris'
suggestion, a bold new enterprise was born: Procter & Gamble.
On April 12, 1837, William Procter and James Gamble start making and selling
their soap and candles. On August 22, they formalize their business relationship by
pledging $3,596.47 apiece. The formal partnership agreement is signed on October
31, 1837.
1859
P&G sales reach $1 million.
1879
The inexpensive, but high-quality Ivory soap is introduced
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1924
P&G is one of the first to create a market research department to study consumer
preferences and buying habits
1955
Crest, the first toothpaste with fluoride clinically proven to fight cavities, is
introduced
1961
Pampers is introduced and eventually replaces cloth diapers
1980
Sales reach $10 billion
2003
P&G operates in 80 countries worldwide, employing 98,000. Have 13 billion
dollar brands in its portfolio: Charmin, Tide, Pantene, Iams, Folgers, Crest, Olay,
Always, Ariel, Bounty, Downy, Pringles, and Pampers $43.3 billion in net sales in
2003.
2004
P&G's Safe Drinking Water Program wins the World Business Award from the
United Nations Development Program & International Chamber of Commerce in
support of the UN's Millennium Development goals.
Actonel is P&G's newest billion-dollar brand, and the first pharmaceutical brand to
reach this important milestone.
2005
P&G and Gillette merge into one company and add five more Billion Dollar
Brands to our product portfolio including Gillette and Braun's shaving and
grooming products, the Oral-B dental care line and Duracell batteries.
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P&G BACKGROUND:
P&G Pakistan is a subsidiary of the Procter and Gamble Corporation, the leading
consumer goods company with a mission to improve the lives of consumers
wherever it operates.
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owned company with publicly traded shares, currently owned by over one million
shareholders from around the globe.
P&G employs over 100,000 people from all over the world, spread evenly
between 1-USA, 2-Europe/Middle East and Africa and 3-Latin America/Asia.
P&G hires and respects individuals regardless of race, color, religion, gender, age,
national origin, citizenship or disability, and actively promotes diversity within its
organization as well as in its business operations.
P&G GOALS:
P&G's goal is simple - "To create the most successful global brands in every
category everywhere we compete. And we have the strength to do it"
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GLOBAL BUSINESS:
The P&G community consists of nearly 98,000 people working in almost 80
countries worldwide. What began as a small, family-operated soap and Candle
Company now provides products and services of superior quality and value to
consumers in 140 countries.
STRONG BRANDS:
Our company has one of the largest and strongest portfolios of trusted brands,
including Pampers, Tide, Ariel, Always, Pantene, Bounty, Folgers, Pringles,
Charmin, Downy, Iams, Crest, Actonel and Olay.
ORGANIZATION HIERARCHY:
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PRODUCT LINE
Thanks to the use of latest detergent technologies, the new Ariel is able to deliver
great end-results on cleaning and whiteness maintenance.
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New Ariel delivers against one of the key Pakistani consumer needs: a detergent
that could give spotless cleaning to both colored and white clothes. This is because
new Ariel contains a unique double action system, which gets fully dissolved
unlike bar soap. The green speckles penetrate deep into the fabric to help remove
tough stains. The blue speckles give shine to your whites and brightness to your
colored clothes.
Procter & Gamble is one of the world’s largest manufacturers of products for
feminine protection. In 1984, P&G introduced the Always line of feminine
hygiene pads onto the USA market and it rapidly became the global market leader.
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3. Convenience
4. Economy
The Always line up ensures that women are provided with a product that fits with
their expectations and needs in Pakistan. The Always thick pad is a traditional pad
and contains normal fluff pulp in the core for absorption. The Always ultra pad is a
super thin pad that contains a highly absorbent material that can absorb several
times of its own weight in fluid and convert it to gel. The fiber-webbed
distribution layer encourages rapid dispersal of the fluid before it comes in contact
with the absorbent core. The polyethylene back sheet stops fluid from passing
through the pad. The adhesive stripes on the back sheet are made of special glue
that holds the pad securely on the panty. Wings wrap smoothly around the panty,
holding it in place, and prevent soiling. The quick wrap packages allow women to
carry unused pads discretely and dispose of used pads hygienically.
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In 1926, the world was introduced to the finest and most sophisticated of luxuries -
Camay; and in 1994, the pleasure was brought to Pakistan. Different in its very
essence, defining beauty in a totally different way from other soaps, Camay stands
apart in a league of its own. Camay is not just soap; it is a feeling - of beauty from
within. In a world short of time, Camay is about finding time and pampering
yourself. The person that resides inside needs importance and attention. Camay is
for spoiling you, because "you" are the most important person in your life.
Head & Shoulders is the world's leading Anti Dandruff shampoo. It has been
awarded "the best Anti Dandruff shampoo" by many medical associations
including US dermatologists. In Pakistan, H&S has a 65% market share of Anti
Dandruff shampoo segment. It has consolidated this position since the new
Renaissance launch. The new, best ever formula for Head & Shoulders contains
extra moisturizers which clear away dandruff and also leave hair looking beautiful.
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There's really no need to feel uneasy about having dandruff - all you need is the
right solution. Head & Shoulders® has been providing that solution for more than
35 years, as well as leaving hair manageable and looking great. We've offered
some information here on dandruff and related scalp conditions to help you
understand them better.
The good news is that dandruff can be fought and even prevented. Head &
Shoulders has a new line of shampoos, 2 in 1 formulas and conditioners to help
you fight dandruff and leave your hair manageable and looking great.
With its superior moisturizing quality and added UV protection, it has become a
preferred moisturizing lotion for women in Pakistan. Women love it because it
leaves the skin fresh and glowing.
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In August 2000, Procter & Gamble launched Pampers in this country in Pakistan.
Local consumers now benefit from this globally renowned product that is
approved by standards of the Human Safety Reassurance Program and also
endorsed by the International Society of Pediatricians. Imported from Saudi
Arabia, Pampers is packed locally and aims to provide a better parenting
experience to Pakistani mothers.
The special feature of Pampers is the new diaper core design including a new dual
acquisition system which helps to improve the condition of baby's skin through a
better dryness performance. The Pampers core takes in urine from the diaper
surface after loading. Fast acquisition minimizes baby's contact time with the skin.
A homogeneous blend of cellulose and a very absorbent material result in efficient
distribution of the GM. The storage technology locks the urine away so that it
cannot return to the baby's skin. Leg elastics, barrier leg cuffs and the waist shield
are added to provide greater leakage prevention. The fastening strips allow the
diaper to be refastened over and over again. Balsam lotion on the top-sheet
provides comfort and moisturizing to baby’s skin, each time he moves.
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Laboratory and use tests confirm that Pampers provides an outstanding level of
dryness and is significantly superior to cloth and other diapers under all
conditions. Consumer research shows that Pampers has made considerable head
way in generating trial and conversion amongst cloth using mothers, who feel that
Pampers has helped in bringing about a difference in her babies life and also her
own. Consumer confidence is further validated by the fact that Pampers currently
had 75% market share in Pakistan and has managed to more than double the
market size since its launch.
The Pantene Pro-V line of shampoos is the best selling shampoo and conditioner
system in the world loved by women in more than 100 countries. Pantene has
always been on the cutting edge of hair care technology being the shampoo that
provides solution to different types of hair problems.
Pantene was launched in Pakistan in 1995 and currently every 6th female shampoo
user uses Pantene for her hair care needs. Pantene in Pakistan has 5 variants that
provide solution to different hair problems as below:
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Variant: Extra-Treatment
Variant: Anti-Dandruff
Variant: Clarifying
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Color: Gold
Hair's just dead stuff on your head, right? Well, yeah, on some people it looks like
that. But not you. Not after you've lathered, rinsed and repeated with Pert Plus
Shampoos and their awesome clean conditioning technology. What's that, you ask?
It's the unique way Pert Plus works. It cleans, conditions, and then it gets outta
there. It doesn't hang around to weigh hair down. No waxy residue. No build-up.
None of those listless, slacker follicles. It's water-based, so hair rinses clean.
Suddenly hair is shining and lively-looking. Dare I say it's billowy? Yes. Thanks to
a shampoo that knows when to quit.
Pour some in your hand. Doesn't it feel rich and luxurious? Smell it. The scent is
sublime. Best of all, Pert Plus Shampoo never builds up. It doesn't know how. The
excess just washes away. So your hair feels clean and full and looks great all day.
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Attribute
Product Type
Original
What would life be without American icons? We're talking' about blue
jeans, soda pop, and, of course original Pringles in that famous red
can. What are you waiting' for? Open a can and bite into a classic.
Also available in 50-gram and 100-gram cans.
Paprika
Barbecue
Yeehaw! Got a taste for tangy BBQ flavor? Then pop open a can of
Barbeque Sauce and transport yourself to the Old West.
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Wanna see your tongue do back flips? Seriously, grab a stack of Salt
and Vinegar and watch your mouth turn into a circus.
Pop these delectable and savory crisps into your mouth and crunch
away! Smooth sour cream flavor and a delicious onion taste make for
finger lickin' goodness.
This is snacking on the edge! If you like a snack that adds spice to
your life and treats your taste buds to irresistible peppery flavor, dive
into a can of Pringles Hot & Spicy crisps!
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Vicks is a well-established and leading brand for cough and cold Relief across the
world. Globally, there are a broad range of products under the Vicks umbrella,
ranging from Multi-symptom relief medicine (Nyquil and Dayquil) to the world
famous Vicks Vaporub to other cough and cold relief syrups (Formula 44), tablets
(Action 500), and drops (Vicks Throat Drops).
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Attribute
Product Type
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Global Gillette, formerly The Gillette Company, likes to be on the cutting edge.
The world's #1 maker of shaving supplies, the firm is best known for its razors and
blades (Sensor, Trac II, and the premium-priced Mach3, M3Power, and Fusion),
but it's also a leading battery (Duracell) maker. Gillette also makes Braun electric
shavers. In October 2005 The Procter & Gamble Company (P&G) bought
100% of Gillette for about $57 billion in stock. Its Braun- and Oral-B-branded
oral care products are now part of P&G's brand portfolio. It sold its Right Guard,
Soft & Dri, and Dry Idea brands to Henkel's Dial for some $420 million.
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Supply chain management has strategic implications because the supply system
can be used to achieve important competitive priorities. It also involves the
coordination of key functions in the logistics.
Since, the organization is trading concern specifically in Pakistan. Sale is the key
operation for the company that the company is growing on the total sale. It doesn’t
mean that other operations are not important. But the starting point for the
company is the sale of the product.
It was the great opportunity for me to see the overall process of sale, in the sale
operation, the prominent operations are:
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One person is responsible for one task. TSO (Territory Sales Officers) take the
order from the retailer & wholesalers and that order is recorded on the Pam
computer. At the end of the market, they return back to the office and all the orders
are transferred to a format. There is a computer section, which is having a
specified format for the order that is developed in Oracle. All the orders are
recorded automatically when the Palm computer is connected with the PC in
office.
When format are filled, the different vouchers are developed and bill list is
generated. Now the supplier will supply the ordered product in the next day. After
the supply of the product, the recovery of the payments is received from the
customers. And that entire amount is given to the account officer in the office. The
other important section is the display of the product in the shops. That is also most
important to attract the customers. The advertisement cost becomes reduced in this
manner, because after that the company will not spend on so much expensive
advertisement like TV commercials.
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1. Employee involvement.
2. Continuous improvement.
EMPLOYEE INVOLVEMENT:
For employee involvement P&G gives the training to its employees with the
passage of time. “Human Resource Department” arranges the training for their
employees.
CONTINUOUS IMPROVEMENT:
OPERATIONS:
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Effective July 1, 2007, the company's operations are categorized into 3 "Global
Business Units" with each Global Business Unit divided into "Business
Segments," according to the company's June 2007 earnings release.
Beauty
Beauty segment
Grooming segment
Household Care
Health Care
In 2007, the P&G's Canadian division was named one of Canada's Top 100
Employers, as published in Maclean's magazine, the only consumer products
company to receive this honor.
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Generally customers make the indication about their future requirement some time
ago. So it is relatively easy for the firm to manage that sort of demand and
corresponding production. Also all the forecasting and demand handling is done
by Head Quarter itself. A 6 month sales forecast maintains by the P&G.
FORECASTING TECHNIQUES:
There the three forecasting techniques are available for the purpose of the
forecasting of the demand, which are as under.
1. Judgmental Method.
2. Causal Method.
3. Time Series Method.
The usage of these techniques depends upon the availability of the data about the
past. Casual method use historical data on independent variables. Time series
analysis relies heavily on historical demand data to project the future size of
demand and recognizes seasonal trend and patterns. A key factor in choosing the
forecasting method is the time horizon.
1. Causal Method.
2. Time Series Method.
Blow RoomPage 34
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Procter & Gamble India is one of the country's leading advertisers, with a small
portfolio of products led by India's best-selling healthcare brand, Vicks. For
various historical reasons, the group operates through two separate subsidiaries,
one of which is part-publicly owned.
• P&G Pakistan has reinvested over $100 million in Pakistan within the last
12 years.
• P&G Pakistan has invested 63 million dollars over the last 5 years in terms
of capital, marketing and training.
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• P&G Pakistan creates more than 4,000 jobs in Pakistan. 99% of the jobs
that P&G Pakistan creates in Pakistan are held by Pakistanis.
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In order to meet the high levels of distribution, IBL is & continuing to reduce
operating costs, increase our supply chain efficiency, reduce inventory and shorten
cycle times.
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RECOMMENDATIONS:
o More awareness
o Product identification measures like Company Seal etc.
• They are market leader in 6 out of 12 products. They should take
effective measure to enhance their market leadership
• Market share of Multan is only 9%; however Multan still has a lot of
unexplored potential. Sales promotion measures should be adopted to
enhance its market share
• Camay-Dog product should be re-launched by adding more attributes.
Camay is a market leader product worldwide but in P&G Pakistan it is a
dog product.
• P&G should focus on sales promotion rather than advertising in sub
urban and rural areas of Multan and Southern Punjab.
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BIBLIOGRAPHY
www.pg.com
www.pg.com.pk
www.ansreview.org
www.google.com
www.yahoo.com
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