Procter & Gamble

Company’s Profile

The Procter & Gamble Company (P&G) is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, USA. Its products include foods, beverages, cleaning agents and personal care products. In 2011, P&G recorded $82.6 billion dollars in sales. Fortune magazine ranked P&G at fifth place of the "World's Most Admired Companies" list, which was up from sixth place in 2010.

Procter & Gamble (P&G) is America’s biggest makerof household products, with at least 250 brands in six main categories: laundry and cleaning (detergents), paper goods (toilet paper), beauty care (cosmetics, shampoos), food and beverages (coffee, snacks), feminine care (sanitary towels) and health care (toothpaste, medicine).

P&G’s famous brands include Ariel, Pantene, Head & Shoulders, Fabreze, Sunny Delight, and Oil of Olaz. About half of P&G's sales come from its top ten brands. P&G also makes pet food and PUR water filters.  Finally, P&G produces chemicals. Today, P&G markets its products to more than five billion consumers in 180 countries. The company has on-the-ground operations in over 70 countries around the world, and employs more than 129,000 (2011) people. Last year’s revenues are US$ 82.55 billion (2011).

William Procter, a candlemaker, and James Gamble, a soapmaker, emigrated from England and Ireland respectively. They launched their new enterprise in Cincinnati in 1837. The company gradually grew into a multi-million dollar corporation. Once a staple of the company's product line, candles declined in popularity with the invention of the electric light bulb. P&G discontinued candle manufacturing in the 1920s.  Soap is still one of P&G’s core products. P&G was the first company to advertise nationally direct to consumers (Ivory soap in the 1880s).

Procter & Gamble acquired a number of other companies that diversified its product line and significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's Old Spice, Max Factor, and the IamsCompany, among others. P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study.[7] For example, P&G's corporate strategists must account for the likelihood of one of their products cannibalizing the sales of another.

Procter and Gamble is a tier one sponsor of the London's Olympic Games 2012 and sponsors 150 Athletes.

P & G has adopted ‘Purpose-inspired Growth Strategy’. Its main features are:

• Execution of the strategy as planned, with unrelenting focus on innovation.• increasing productivity, which frees up resources to invest in innovation.• continue to strengthen portfolio of businesses.• Tackling growth challenges head on.• have solid, executable plans in place to capture the enormous growth potential that strategy creates.

P & G PakistanProcter & Gamble started its operations in Pakistan in 1991 with the goal of becoming the finest Global Local Consumer Goods Company operating in Pakistan. Since the inception of P&G Pakistan, they have committed them to business growth, consumer satisfaction and community development.

There is special focus on employees in P& G Pakistan. The company nutures local talent in the country and has invested significantly in training and development of its employees. Currently, more than 50 employees from Pakistan are serving in P&G locations abroad.

P&G Pakistan has been serving its consumers from last two decades. The company launched brands in Pakistan which are amongst leading brands in their categories. Famous P&G brands in Pakistan are Head & shoulder, Pantene, Safeguard, Ariel, Pampers, Vicks etc. Thus securing the trust of Pakistani consumers and inspiring team to continue to deliver outstanding brands and programs.

P & G Pakistan has received “Fastest Rising Company of 2010” award by Pakistan society of Human Resource Management. Moreover, P&G Pakistan was recognized by the U.S. State Department with the prestigious Award for Corporate Excellence (ACE) for fulfilling its Purpose of touching and improving lives in Pakistan.

P & G values

Financial statistics 2011

(Amounts in millions, except per share amounts)Net Sales $82,559Operating Income 15,818Net Earnings 11,797Net Earnings Margin from Continuing Operations 14.3Dividends Per Common Share 1.97

P&G Brands

SafeguardSafeguard is P&G’s largest Global Personal Care brand. First launched as a bar soap in the USA in 1963, it is now also available in other product forms such as Bodywash, Liquid hand soap and Hand sanitizer. Safeguard is currently sold in more than 15 countries across Asia, Europe, Africa and Latin America with leadership market share in China and the Philippines.

Safeguard partners with leading health organizations across the world such as Pakistan Medical Association (PMA). Together with the partners, Safeguard has championed the promotion of life saving hygiene habits among kids via proven & effective School Handwash Education Programs. These efforts have so far touched the lives of more than 40 million kids across the world.

Additionally, Safeguard has joined hands with the Save the Children in Pakistan to create safe and hygienic sanitation infrastructure at the grass root level.

Head & Shoulders

Since 1950, head & shoulders shampoo has been at the forefront of scalp and hair science, significantly advancing the treatment of dandruff and scalp problems. New formula introduced in 2007, the proprietary zinc pyrithione (ZPT) formula in Head & Shoulders effectively targets the source of dandruff so men and women can feel confident that their hair looks great. With full lines of shampoos and conditioners, Head & Shoulders systems provide the dual benefits of achieving both a healthy scalp and great-looking hair. Offering ten shampoos and five corresponding conditioners, Head & Shoulders has a line to fit the needs of all men and women.

Market share of head & shoulders shampoo is given below:

Ariel

Ariel is a marketing line of laundry detergents made by Procter & Gamble. Ariel first appeared on the UK market in 1967 and was the first detergent with stain-removing enzymes. It was a high-sudsing powder designed for twin-tub and top-loading washing machines. Since 1968, Ariel has experienced a steady stream of progressive product innovations. Ariel has met a wider need through the development of sustainability initiatives. In Pakistan, Ariel is one of the top detergent brand.

detergents market is expected to witness a single digit growth of 2-3% in the year 2005 as well, according to Procter & Gamble’s associate director-sales. The company, which started a price war last year by cutting prices of Ariel by nearly 50% claimed  that it had gained a 1.5% value share in detergents.