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Company Overview
Procter & Gamble (P&G) is one of the worlds leading manufacturers of consumer packaged
goods. The company markets nearly 300 brands to approximately five billion consumers in
more than 160 countries. To address the needs of its worldwide customer base, P&G
employs a widely distributed product development strategy. P&G employees at the
Cincinnati headquarters collaborate with other P&G personnel and suppliers located all
over the world. Their goal: cost effectively create innovative products to improve the lives
of consumers globally and introduce them to the market ahead of the competition.
P&G India
P&G is one of the largest and amongst the fastest growing consumer goods companies in
India. Established in 1964, P&G India now serves over 650 million consumers across India.
Its presence pans across the Beauty & Grooming segment, the Household Care segment as
well as the Health & Well Being segment, with trusted brands that are household names
across India. These include Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers,
Pantene, Oral-B, Head & Shoulders, Wella and Duracell. Superior product propositions and
technological innovations have enabled P&G to achieve market leadership in a majority of
categories it is present in. P&G India is committed to sustainable growth in India, and is
currently invested in the country via its five plants and over nine contract manufacturing
sites, as well as through the 26,000 jobs it creates directly and indirectly. Our sustainability
efforts focus on Environmental Protection as well as Social Responsibility to help develop
the communities we operate in.
P&G operates under three entities in India - two listed entities Procter & Gamble Hygiene
and Health Care Limited and Gillette India Limited, as well as one 100% subsidiary of the
parent company in the U.S. called Procter & Gamble Home Products.
The P&G divided it products into 2 major segments, Global Business Units (GBUs)
Organization Structure
Global Business Units (GBUs) Focus on consumers, brands and competitors in India. They are
responsible for the innovation profitability from their businesses.
Market Development Organizations (MDOs) are charged with knowing consumers and
retailers in each market.
Global Business Services (GBS) utilizes P&G talent and expert partners to provide best
best-in-class
business support services at the lowest costs.
Lean Corporate Functions ensure ongoing functional innovation and capability improvement.
Core Strengths
P&G focuses on five core strengths required to win in the consumer products industry. They are
designed to lead in each of these areas.
Strategy
They are focused on strategies that the right for the long- term health of the Company and will
deliver total shareholder return in the top one-third of their peer group.
The Companys long-term financial targets are:
Grow organic sales 1% to 2% faster than market growth in the categories and geographies in
which they compete,
Deliver earnings per share (EPS) growth of high single digits to low double digits, and
SCM model :
Distribution network
In the last two years P&G has increased its India distribution network by approximately 10%
year-on-year,
year, according to the report. However, its network is still miniscule compared to
competitors.
Can a change in Distribution channel bring improvement in the sales of the company?
According to us YES, a change in distribution channel can improve the sales of the Co.
1. The Co. can increase its sales with the help of trade fair & exhibition by doing direct
sales to the customers.
2. The Co. can increase its sales performance by promotion its product to the target
consumers preferred areas and location.
3. Also by organizing different prize schemes and sales contest among the customers,
dealers & the sales force the co. can increase its sales volume.
P & G is an organisation which traditionally deriving its bread and butter from premium
brands, and from developed market.
North America
44%
Western
Europe
30%
Globally and within India, the company is investing heavily in innovation, R&D and
distribution. The strategy is to make several of its billion dollar brands more localised,
accessible and affordable for consumers.
The company is trying to strengthen its portfolio by bringing many more brands into the
country.
The parent company also plans to launch toothpaste brands Crest and Oral B in
emerging markets, including India by 2015.
P & G is trying to cater the gaps in its Indian portfolio include toothpaste (a 3,000 crore
market) and soaps ( 7,000 crore).
Approximately $1.2 billion in annual cost of goods savings across raw materials,
manufacturing and transportation and warehousing expenses.
Better management
Improving Productivity
Improving quality
Existing methods for collaboration and innovating and developing new ideas wasnt
good enough.
For companies like P & G one vendor simply isnt enough to satisfy their diverse needs.
e.g. Google search was inadequate.
- Doesnt always link information from within the company
- reliance on keywords isnt ideal for all of the topics for employees might search.
when P&G executives traveled to meet with regional managers, there was no way to
integrate all the reports and discussions into a single document.
SharePoint to store all presentations to one location, accessible from every parts of the
company.
If enough employees didnt use Collaborative Systems, the tools would be much less
useful for those that did use them.
80000 people using IM, 20000 MS Outlook for mailing, calendaring, contact
management, task management, note taking.
Researchers use the tools to share the data theyve collected on various brands
Marketers can more effectively access the data they need to create highly targeted ad
campaigns.
Managers are more easily able to find the people and data they need to make critical
business decisions.
Using Telepresence managers and officers cad hold high-definition meetings over long
distances.
Company has saved $4 for every $1 invested in the 70 high-end telepresence systems it
has installed over the past few years.