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PROCTER & GAMBLE WE TOUCH LIVES IN SMALL BUT MEANINGFUL WAY

Procter& Gamble

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Page 1: Procter& Gamble

PROCTER & GAMBLE

WE TOUCH LIVES IN SMALL BUT MEANINGFUL WAY

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Submitted To: Sir Imran Yousaf

Submitted By: Sehrish Tufail

Saba Khan

Amna Yousaf

Batch : BBA 19 (B)

INTERNATIONAL ISLAMIC UNIVERSITY, ISLAMABAD

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HISTORY:

William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England and Ireland, respectively, who had settled earlier in Cincinnati, who met as they married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born. In 1837, Procter and Gamble was founded in Cincinnati by William Procter, a candle maker, and brother-in-law Gamble, a soap maker. Their joint venture started one of the most influential companies in all American industry.

In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats in water. The company called the soap Ivory. It was the company's first product being introduced in 1879.

For generations, Procter and Gamble has been built by scientists and consumer researchers; the latter finding out what the public wants and needs, and the former improving upon old products or inventing new ones to match these needs and desires. During the American Civil War, the company won contracts to supply the Union Army with soap and candles. In addition to the increased profits experienced during the war, the military contracts introduced soldiers from all over the country to Procter & Gamble's products. Once the war was over and the men returned home, they continued to purchase the company's products.

Several products were developed during the time period when William Procter's son, William Alexander Procter, took over the company (1890-1907.) William Cooper Procter began working in the company in 1883 and served as president of

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the company from 1907-1930. During this time, the company's sales rose from $20 million to $200 million. This was a period of growth in which the company built several plants: five in the United States, one in Canada, and one in England.

  Over time, the company began to focus most of its attention on soap, producing more than thirty different types by the 1890s. As electricity became more and more common, there was less need for the candles that Procter & Gamble had made since its inception. Ultimately, the company chose to stop manufacturing candles in 1920.

William Cooper Procter was a pioneer in many labor relation reforms. Procter and Gamble became the first American company to give half holidays on Saturdays and set up a profit-sharing plan in the same year. Company policy was reworked in 1920, so that all employees were guaranteed 48 weeks of work per year. Other firsts include a disability pension plan, a life insurance plan, and employee representation on the board of directors.

Procter & Gamble acquired a number of other companies that diversified its product line and significantly increased profits. Procter & Gamble has dramatically expanded throughout its history, but its headquarters still remains in Cincinnati. Today, P&G; goods are found in 98 percent of all American households. P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study. P&G identify common consumer needs, develop new product innovations and build its brands through effective commercial innovations, marketing and sales.

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INTRODUCTION:

Procter & Gamble (P&G) was set up by William Procter and James Gamble in April 1837 to manufacture soap and candles in the U.S. Today it is a $79 Billion personal care and health and wellness company, manufacturing a broad range of products and employing 140,000 people all over the world. P&G's products are sold in 160 countries. P&G has operations in more than 80 countries, with more than 300 brands. These include beauty care, household care and Gillette products. Three billion times a day, P&G brands touch the lives of people around the world. The Procter & Gamble Company (P&G) is a giant in the area of consumer goods. The leading maker of household products in the United States.

In 2005 P&G changed its culture from a conservative, slow-moving, bureaucratic behemoth to that of a modern, fast-moving, Internet-savvy organization. Its new spirit of openness is most evident on the Internet. 3 years ago, it was a stodgy, nondescript site where no one other than investors or job seekers had any reason to go to. Today, you see a consumer-friendly portal with loads of information about P&G products.

Committed to remaining the leader in its markets, P&G is one of the most aggressive marketers and is the largest advertiser in the world. Many innovations that are now common practices in corporate America--including extensive market research, the brand-management system, and employee profit-sharing programs--were first developed at Procter & Gamble.

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MISSION:

Procter and Gamble is one of the most admired companies in the world. They take pride in their products, values and principles and involvement in the world. Their mission or purpose reflects this pride. Their mission, as stated on their webpage, is that “we will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper”.

Procter and Gamble’s quality products are the result of their massive investment in research and development. They are continually improving existing products and brands while creating new products. They understand what their consumer wants and have the technology to develop the products that will meet these wants. P&G is its people & the values by which they live.

They recruit the finest people in the world. They build the organization from within, promoting and rewarding people without any difference unrelated to performance. They work on the conviction that the people of P&G are the most rewarding asset.

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VISION:

Their vision is, “To be recognized as, the best consumer products and services in the world.” Having clear vision of where they are going, they are focusing the resources to achieve leadership objectives and strategies as well as developing the capability to deliver the strategies and eliminate organizational barriers. Procter and Gamble will continue to serve consumers by continuously innovating products that will allow them to be leaders in household and personal care, health care, and food products. To produce products with the utmost care to give nothing but quality to our communities. And to continue to grow so that we can maximize our shareholder’s wealth.”

Beyond just making the best products, Procter and Gamble tries to improve the communities that they touch around the world. The company believes they have a social responsibility to these communities. On the basic level, they provide products that improve the lives of their consumers in terms of health and convenience. By treating their employees fairly they contribute to their social and financial well-being. On the global level, they give aid to philanthropic programs such as Humanitarian and Disaster Relief. Procter and Gamble also produces products that are safe to the environment in both production and in their use. They strive to better the quality of life for everyone both now and in the future.

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GEOGRAPHIC SEGMENTATION: P&G has expanded significantly, but its headquarters still remains in Cincinnati. Today, P&G; goods are found in 98 percent of all American households. With additional products are sold worldwide, from the Arabian Peninsula to Argentina to India, the company remains committed to marketing superior products. Its manufacturing operations are based in

the following countries. United States

Canada

Mexico

Latin America

Europe

China (31 wholly-owned factories) and other parts of Asia

Africa

Australia

IN PAKISTAN:

Procter & Gamble started its operations in Pakistan in 1991 with the goal of becoming the finest Global Local Consumer Goods Company operating in Pakistan. Procter & Gamble is marketing a range of consumer goods products including 13 brands comprising shampoos, detergents, soaps, baby care, feminine protection, and Vicks and snacks products. The company, which serves over 5 billion consumers in 140 countries worldwide and markets more than 250 brands, produces bar soaps and repacks bulk shampoos and Pampers brand of diapers into sachets and smaller packs respectively at its Hub

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plant near Karachi. P&G's Pakistan operation is relatively small and yet it has been successful to improve the lives of consumers here in Pakistan, like elsewhere in the world. It has served over 140 million consumers in Pakistan, which equals the entire population of the country since its operations 11 years ago. The company is exporting bar soaps manufactured here in Pakistan to Saudi Arabia, Yemen, Syria and Afghanistan where it is in great demand due to its high quality and competitive price. Since the inception of P&G Pakistan, till today they are performing one of the most thriving operations in Pakistan.

HIERARCHY OF THE ORGANIZATION:

Chairman, President and CEO

Vice Chairman

Chief Operating Officer

Chief Finance Officer

President, Global Business Unit

Board of Directors

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PRODUCT MIX:

The company has categorized its products into 3 "Global Business Units" with each Global Business Unit divided into "Business Segments".

1. Beauty Care

Beauty segment Grooming segment

2. Household Care

Baby Care and Family Care segment Fabric Care and Home Care segment

3. Health and Well-Being

Health Care segment Snacks, Coffee, and Pet Care segment

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PRODUCT LINE:

The product line of P&G for different Global Business Units is as follows.

Beauty & Grooming:

Olay Herbal Essence Pantene Head & shoulders Pert Wella Zest Gala Dunhill fragrances

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Lacoste fragrances Hugo boss Gucci fragrances Safe guard Cover girl Dolce & Gabbana Gillette Ivory Puma

Health & Well-Being:

Crest Oral-B Fixodent Pepto Bismol Zooth Scope Pringles Vicks Clearblue easy Gleem Glide

Household Care:

Pampers Tide Bold Dawn Charmin Ariel Swiffer Bounty Duracell Cascade Puff Downy Joy

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All these products are available in different sizes, shapes and forms.

INDUSTRY ANALYSIS:

TRENDS IN THE MARKET:

Procter and Gamble’s main industry in which they compete is Personal Products. The industry focuses on selling products that meet the needs of everyday consumers in areas such as personal hygiene, beauty and health, pet care and other household products. A major issue within this industry is the contaminated pet food. Many companies have been forced to recall their pet food products because of the dangerous and harmful threat it poses to animals. Consumers want a product that they know will be safe for their pets. These customers of the personal products industry have begun to look elsewhere for their pet food products taking revenue away from the leading companies in this industry such as P&G. These companies must regain the trust of these customers by putting a product on the market that is safe for all pets and take all measures to ensure that the contaminated pet food is off the market.

Another growing trend in the personal products industry is for companies to make environmentally safe products. More and more consumers are becoming aware of the impact, which everyday personal products have on the environment. Global warming and our actions in slowing it down has become headline news. Companies must find ways to produce products that are safe for the environment while continuing to be of high quality and of similar prices to past products. Consumers are becoming more inclined to buy a product that is safe for their family and is safe for nature even if it means they have to pay a little bit more for it. To stay competitive, companies such as Procter and Gamble must continue spending money in their R&D department to create safe and environmentally friendly products.

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COMPANY ANALYSIS:

Procter and Gamble is constantly trying to find ways to improve their products related to personal and beauty, house and home, health and wellness, pet nutrition and care. These are the company’s primary product lines and they are continually researching and developing new ideas to improve the products.

Procter and Gamble has focused a lot of research on their personal and beauty line. They have researched different types of hair and skin, and have developed products to fit theses types. P&G’s hair product line deals with the different lengths, treatments, problems and disorders of hair. They develop products such as shampoos and conditioners and styling products to fit the needs of the different hair types. Procter and Gamble conducts similar research on skin structure, identifying the different types of layers and the genetics of skin. This research provides insight into different skin problems including what effect the sun has on the aging of skin. They have developed many different lotions, moisturizers and oils to help take care of the skin throughout a lifetime.

Proctor and Gamble has discovered several innovations for their house and home products. A lot of research was invested in combining laundry detergent with bleach to provide consumers a single product for the laundry room. This was a difficult task because of the composition of bleach and its effects on clothes. They eventually found a way to make bleach safe for fabrics and stable when mixed with detergent The research that was conducted to find a way to mix the two was expensive but now the mixture of bleach in laundry detergent is affordable for everyone. Another major innovation in the house and home product line was the improvement of the paper towel, which involved a change in the papermaking process. The “absorbent capacity, strength, flexibility, softness, and thickness of structured tissues, and towels make usage more convenient, faster, and comfortable”. These developments have set P&G above their competitors in the house and home product lines.

Procter and Gamble has also invested heavily in research for their other product lines that has resulted in many improved products. They have developed different formulas related to toothpaste particularly Crest. In addition, they have developed leak proof diapers for their baby care line, Pampers. In their pet nutrition and care line, Iams and Eukanuba, they are providing healthy food products for animals.

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SWOT ANALYSIS:

The SWOT analysis gives an overview of Proctor and Gamble internal strengths and weaknesses and the external opportunities and threats. According to Market line Business Information Centre, P&G’s SWOT analysis is summed up with the following:

Strengths

Procter and Gamble has gained a leading market position with most of its businesses. They are the global market leader in the beauty segment. They are also leaders in the oral care and fabric care segments. Their brands amongst these segments have become leading names. This leading market position provides the company a competitive edge and stable financial growth.

The company has a diversified and innovative product portfolio. They have over 300 brands that spans across 40 product markets. They have succeeded in becoming a world leader in brand creation and brand building. Their product portfolio is one of the largest with trusted, quality brands. Furthermore, Procter and Gamble focuses on product innovation. They conduct more than 10,000 research studies a year and work together with 4 million consumers all over the world. With their diverse and innovative product portfolio, they protect themselves from demand fluctuations amongst their product lines and gain customer loyalty and revenue growth.

Procter and Gamble has posted strong finances in the recent years. They have had strong revenue growth across all of their key segments. In addition, their revenue growth and profit margins has been higher than the industry’s average. Their positive financial statements have also strengthened the company’s market position.

Weaknesses

Procter and Gamble has quality control problems with some of their products. They have placed recalls on certain products such as cosmetics

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made in China and the Swiffer Sweep&Vac. If they have continual recalls, it could tarnish their brand image leading to lower customer loyalty.

The company has seen decreased revenues in their Northeast Asia market. This market has such high profit potential and this current trend puts Procter and Gamble at a disadvantage with their competitors.

Opportunities

One of the greatest opportunities for any company is the developing markets of developing countries. These countries have market potential that is expected to increase in the next few years. Currently, Procter and Gamble only offers products in 10 of their top 25 product categories in most of the developing countries. They have an opportunity to expand their market shares in these developing countries.

The demographic trends across the world are moving in a direction to help boost Procter and Gamble’s sales. The aging baby boomers of the US are becoming more beauty focused and using more beauty and anti-aging products. The cosmetic segment of P&G could benefit from this trend. Additionally, there is an increased demand for pet food all over the world. More and more households are owning pets and often times more than just one. Procter and Gamble’s Iams brand of pet food can become a major segment for the company aiming to meet this increased demand.

Threats

The markets that Proctor and Gamble compete in are filled with other large, well-established companies such as Colgate-Palmolive and Unilever. These companies produce products that are just as effective as P&G products. Procter and Gamble must constantly compete with these companies in almost all of their markets.

Rising energy prices are affecting all business and Procter and Gamble is no exception. The company’s costs of energy and raw material has gone up significantly in the past year and will continue to increase as the price of gasoline, natural gas and diesel fuel escalates. This increase will affect the company’s profits.

The economic slowdown in both the US and Eurozone will greatly strain Procter and Gamble. These two markets are extremely important to the company’s revenues. With rising interest rates in the US and increased inflation in the Eurozone, people are tighter with their money which could lead to decreased sales for P&G.

New regulations on health and beauty products could become a problem for Procter and Gamble. More and more consumer protection groups are

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pressuring for healthier products with less harmful chemicals in them. The US food and drug administration is forcing companies to meet higher quality control regulations on their products. This could slow down the launching of new products for P&G and force the company to spend more on R&D of new products that meet the regulations’ standards.

COMPETITOR ANALYSIS:

Procter and Gamble’s three main competitors are Johnson and Johnson, Kimberly-Clark, and Unilever. These companies match or come close to matching the revenue of P&G. There are differences among the products sold between the companies but they all have similar product ideas.

Johnson and Johnson has the highest net income of these companies. The primary revenue generator for the company is their health care products. They have a strong brand association with their Band Aid and Neosporin products. Furthermore, Johnson and Johnson focuses on providing products to doctors, nurses and patients that need and use these health care products. Johnson and Johnson, as a company, strives to meet the need of their customers while providing a fair profit to their suppliers and distributors (jnj.com). They also take responsibility to give back to the community that they live in. Through their quality products, commitment to their customers and giving back to the community, Johnson and Johnson is a tough company with which to compete.

The Kimberly-Clark company dominates the health and hygiene markets. Some of their larger brands range from Kleenex to Depend Diapers. According to their website kimberly-clark.com, they hold the number one and number two shares in their markets in over 80 countries (kimberly-clark.com). They base much of their innovation off their customers’ preferences and wants. Their three concerns with being successful are quality, service and fair dealing.

Unilever is a food, home, and personal care company. Their products vary from Vaseline to Ben and Jerry’s Ice Cream. They focus on constantly enhancing and developing products that better the lives of their customers. Unilever makes everyday products for people that want to use a safe and healthy product.

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So these three companies give a tough time to Procter and Gamble.

CUSTOMER ANALYSIS:

Procter and Gamble is constantly looking for new ways to meet the needs of their customers. These customers range from men and women to cats and dogs. P&G has a couple different ways they research to meet their consumers’ needs: qualitative and quantitative. P&G conducts their qualitative research by having focus group discussions, in-home visits in-context visits, and in-store interviews. This allows P&G to interact personally with their consumers to get their opinions and facts on how their products are helping or not helping them. Their quantitative research includes habits and practices, blind tests, concept aided usage and quality monitoring. The quantitative research is used to see habitual data and use this for new ideas relating to how consumers use these products in their homes and outside of their homes. Quantitative research involves larger groups and statistical data analysis. These types of researches help the company in many different ways. It can help management and improve the way they make decisions, it make it easier to trace problems, and helps the company to focus on new, different ways to maintain their existing customers.

PRODUCT LIFECYCLE:

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PANTENE:

In 1947 the original Pantene hair tonic was launched. After the introduction and launching of Pantene it remained in its introductory stage till 1983. In 1985 it began to grow but the growth rates not very fast. For this purpose P&G launched first product line of Pantene for women in 2003. After this the actual growth rate of Pantene started. And now it is at top growth stage.

VICKS:

In 1983 Vicks was launched which started to grow within a short time period. It acquired growth till 1990 and now it is at its maturity stage.

HEAD & SHOULDERS:

It was introduced in 1978 and remained in its introductory stage for a number of years. In 1989 it started to grow and now it is at its maturity stage.

ARIEL:

Today Ariel is also at its maturity stage.

GALA:

Gala biscuit was introduced in 1988 it captured a lot of customers during its growth but today it is at its declining stage.

ADVERTISING OBJECTIVES:

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TARGET MARKET:

Being that Procter and Gamble has such large diverse product lines, their target market is more than just one defined market. Because of this, Procter and Gamble has gone to great lengths to recover data to determine their target market with some individual products. For example Procter and Gamble uses the internet to test how their products will do in their target markets. From online surveys, P&G found that 80 percent of the potential buyers were woman between the ages of 35-54. Also, Procter and Gamble went as far as videotaping consumers at home, basically their own reality TV, to learn about the consumers and to reveal more about what the surveys didn’t show.

As for the products sold at Procter and Gamble, the target market seems to point to stay-at-home parents, more specifically mothers with children. With so many cleaning products, feminine hygiene, personal and beauty care, baby and family, and pet nutrition and care products, Procter and Gamble naturally targets those who own homes. These individual are the ones that are most likely to use and need the P&G products.

Procter and Gamble uses this motherly target market in the set up of their website, pg.com, basing pictures, captions and arrangement around the female attraction. The website has a feminine touch to it with colors. Not to mention that almost all the pictures on the website are of females, most looking around the age of 30. P&G brands use the same target markets as the P&G website in their TV commercials, magazine ads and other advertisements (pg.com). Procter and Gamble is targeting the homeowners market. Most of their products are used for home purposes. P&G use target marketing, but their products are so well known and used that not very much target marketing is needed, due to brand recognition.

P&G has created products designed specifically to target developing nations. For example, in many countries consumers wash clothing by hand with limited amounts of water. In response, P&G has launched Downy Single Rinse in Mexico, China, Philippines, and 9 other countries.

While not as big as the homeowner market, Procter and Gamble also offers business-to-business selling. According to their pgbrands.com website, P&G is committed to boosting other businesses’ sales, increasing their efficiencies, and improving these businesses profitability through their B2B resource (pgbrands.com). P&G sells cleaning and laundry products, snacks, and coffee and

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beverages to other businesses. P&G has built a strong brand name recognition for their products and know that employees and customers of these businesses will feel more comfortable with these goods because they use the same products at home. Business-to-Business selling is another target market for Procter and Gamble.

COMMUNICATION TARGET:

Communication targets enable P&G to find opportunities and tap into them. It gives them the information needed to focus on the buyers that are interested in what they have to offer. This saves both time and money in an ever-changing society.

P&G uses several modes of communication to target its customers. The most effective and widely used means of communication by Procter and Gamble is through television and radio advertising. P&G also connects with its consumers through internet and outdoor advertisement. They also utilize print media like newspapers and magazines to inform their buyers about their latest products and innovations. The communication target is also achieved through posters, brochures, banners and many other similar forms.

BCG MATRIX:

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STARS PRODUCTS OF P&G:

Pantene

Head and shoulders

Pampers

Gillette

Gucci fragrances

Safe guard

Ariel

QUESTION MARK PRODUCTS:

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Iams

Zooth

Vicks

Joy

Puff

CASH COWS OF P&G:

Tide

Gala

Fixodent

Pringles

DOGS:

Pepto bismol

Pert

Cascade

Glide

SUBLIMINAL MARKETING:

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Subliminal marketing is a technique which uses graphic design elements to communicate a message subconsciously. P&G uses deep connotations and stereotypes that exist in society to tap into the audiences mind and ultimately reinforce a sale. They do it in every form of media from print to web, packaging, logos and magazines to movies. You could say that it's graphic design at its best.

Actually people don’t have time to look and study every advert because there so monotonous and obvious that they've become a part of our daily lives but subliminal marketing also has another subliminal level that dwells in the mind of the consumer.

P&G mostly does it subliminal marketing through bill boards, banners, LCD displays in big malls, different music tones for different products etc.

PRODUCT POSITIONING:Product positioning is defined as the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or

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organization. P&G has positioned its brands in their customers mind by different methods. Some of them are listed below.

FOR GILLETTE:

It has used Product description, Announcing Category Benefits. It has made realized its customers that the Gillette razors are

Super Speed razor s Reduce facial irritation Safety Razors- prevent cuts and allowing for a closer shave Disposable razors

FOR VICKS:

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Positioning of Vicks vapor Rub is done by showing a

Unique Shape of Cough Drops inhaler & Caplet. Touch Therapy. Mother’s Love Platform.

FOR ARIEL:

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P&G has used

Product Description Stain pre-treatment product. Cold is the new hot.

FOR PANTENE:

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Pantene is positioned as shampoo for women of all age groups depending on their requirement and texture of hair.

Reduces hair fall.

FOR HEAD & SHOULDERS:

Anti dandruff shampoo

Different colors are used for different variety.

OTHER COMMUNICATION TOOLS:

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SALES PROMOTION:

Jake Barr is in charge of "supply chain innovation" at The Procter & Gamble Co. He is supposed to figure out how to get the consumer products giant's detergents, soaps and personal care products into the hands of 5 billion customers in 170 countries more efficiently. "If you can't drive sales and deliver product at the point of purchase, you lose," Barr says. Some 60% of P&G's sales now come from what Barr calls "events." These are promotions that the supermarket, convenience store or other retailer executes with price cuts or other incentives; or they take the form of discount coupons and price promotions mailed out or distributed in a store by P&G itself. Some events are initiated on the Internet, such as a "Max the Stack" promotion for the company's Pringles brand of potato chips. Coupons have been a promotional strategy for more than 100 years, it is estimated that 3000 manufactures print 310 billion coupons. While coupons are believed to be effective in enticing consumers to try and to continue to buy a product, Similar promotions for gift-with-purchase were rolled out on the Pampers.com and BabyUniverse.com sites. These "pull" marketing events are designed to drive consumers to retail stores and maintain customer loyalty.

SAMPLES AND FREE TRIALS:

P&G offers samples and free trials on their official website named as P&G Brand Sampler.

A free access is provided to all the customers and they can have free samples as well as solutions to their problems. One can enjoy the latest samples and coupons from this site. Expert tips and advice for everyday life are available on P&G brand sampler site. Special discount coupons are available for different products like Ariel, Vicks, Puma, Pampers, Dolce & Gabbana etc. While for Pantene, Head & shoulders, Pert and other shampoos free sample sachets are available. Free trials are available for Tide, Oral-B, Crest etc.

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SPONSORSHIP AND EVENT MARKETING:

Procter & Gamble produced and sponsored the first radio “soap operas “in the 1930s. When the medium translated to television in the 1950s and 1960s, most of the new serials were sponsored and produced by this company. The serials “The Young and the Restless” and “As the World Turns” are currently broadcasted on CBS and are still sponsored by Procter & Gamble. Procter & Gamble also is the first company to produce and sponsor a prime-time show. Procter & Gamble was the one of the first mainstream advertisers on Spanish-language TV during the mid-1980s.In 2008, P&G expanded into music sponsorship when it joined Island Def Jam to create “Tag Records”, named after a body spray that P&G acquired from Gillette.

Procter & Gamble has, for several years, funded a recycling school in the slums of Cairo, Egypt. Many of the people in the village of Manshiyet Nasser collect garbage and have done so for decades. Procter & Gamble along with UNESCO has started the Mokattam Non-Formal Education Project. The project teaches the people of the village about the business and economics of recycling and how to properly recycle plastic. In December 2008, The US Environmental Protection Agency's Design for Environment program awarded P&G its highest level of recognition, Champion, for P&G's work in developing safer detergents under the Safer Detergents Stewardship Initiative (SDSI).

EDUCATIONAL PROGRAMS:

P&G makes contributions, mainly in products, to some orphanages across Balkans. P&G considers that education represents the cornerstone for a country's development and progress. Therefore the company is involved in series of programs supporting the education in several countries across Balkans.

1) Mothers. Organized and supported by Pampers, the educational program targeted to young mothers includes educational materials and product samples. In the hospital and when the baby is 3 months old, mothers receive brochures with advice on how to take care of their babies. Starting in 2004 Pampers also helped implement the program "Mom's schools in maternities" and 20 maternities in Romania host this program.

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2) P&G 2000 Program. To celebrate the new millennium P&G organized the P&G 2000 Program. The P&G 2000 Program equipped 160 schools in Romania with computer labs. To fund the project, Procter & Gamble allocated 3% of the sales of its products.

3) P&G Learn to change the world Program. The objective of the Civic Education Program "Learn to change the world!" is to educate children on being good citizens, getting involved in making a difference in the community's life and induce a positive, durable attitude of caring about the community needs. Dedicated to the 13-14 years old children, the program includes two phases: a theoretical phase during which children are taught notions of civic education and project management, and a practical phase during which children implement projects for the community benefit, with the financial support of P&G. P&G employees are involved in the Program, as volunteer, acting as mentors to the children on how to identify a need in the community, develop and implement the projects. The program started in 2002 and in 2004 we implemented it in 2 other cities in Romania.