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An Assessment Proctor &Gamble



Company Overviewy P&G is a U.S-based FMCG company

y Founded by William Procter and James Gamble, in 1837

y Procter & Gamble Co. is a Fortune 500,which currently ranked 39 American globalcorporation based in Cincinnati, Ohio.

y Procter & Gamble is world·s largest multinational consumer goods company,

y 8th largest market capitalization organization in the world.

y 106,000 employee & serves 5billion consumers in more than 180 countries

y Operations in nearly 70 countries

y

Markets its nearly 24 brands in 160countries

y P&G is the 23rd largest US company by

revenue and 14th largest by profit



P&G India

y Procter & Gamble's relationship with India started in 1951.

y In India Proctor & Gamble has three subsidiaries:

1. P&G Hygiene and Health Care Ltd.

2. P&G Home Products Ltd.

3. P&G Beauty and grooming products.

y Procter & Gamble India is one of the country's leading advertisers.



PROMINENET BRANDS OF P&Gy

BEAUTY AND GROOMING PRODUCTS

Head & Shoulders, Olay, Pantene, Camay, zest, ivory, old spice,

Wella,Braun,Fusion,Gillete,MACH3

y HEALTH AND WELL BEING

Crest, Oral-B ,Always, Iams, Pringles, Fiber sure, Metamucil, Pepto-Bismol

y HOUSEHOLD CARE

Ace, Ariel, Dawn, Downy, Duracell, Gain, Tide, ivory, Mr.Clean, Bounty, Charmin, Pamper



2010 Global Segment Resultssegment Net sales %Total sales Net

earnings

%Totalearnings

Total growth Billion dollarbrand

Fabric &home care

23,805 29.9% $3,339 31% 2.67% Ariel,Tide,dawn

Beauty 19,491 24.4% $2712 25% 3.00% Olay,pantene,wella

Baby and

family care

14,736 18.5% $2,049 19% 4.49% Bounty,

pampersHealth care 11,493 14.4% $1860 17% 1.82% Oral-B,crest

Grooming 7,631 9.6% $1,477 13% 3.01% Gillette,Mach3

Snacks,coffee,petcare

3,3135 3.9% $326 3% 0.67% Folgers,pringles

corporate -1,353 -1.7% ($817) -7% -1.81%

TOTAL 79,748 99.0% $10,946 100% 3.98%



2010 NET SALES GRAPHICAL SEGMENTATION

yBy business segment By geographic segment

By maturity market



FAILED BRANDS OF P&G

y

OLESTRA-is a fat substitute it contains olean whichinhibits the absorption of vitamins and essentialnutrients

y FIT- which is a fruit and a vegetable wash

y HIDDEN- a magic hair spray

y ENCAPRIN

y TORANGOS



BUSINESS GROWTH AND DIVESTURES

y Folgers Sale

On June 4, 2008, P&G sold its Folgers coffee unit to J.M. Smucker Co for $2.95billion. As part of the deal, P&G shareholders will receive a 53.5 percent stakein Smuckers and the company will assume $350 million of Folger's debt.

y Gillette Acquisition

Procter & Gamble acquired Gillette in 2005 for over $50 billion in its largest acquisition to date. .A key piece of the acquisition beyond Gillette's product lines was its distribution network and supply chain. Gillette's distributionnetwork and supply chain in emerging markets had been extremely successful for Gillette and, once acquired, has worked to complement P&G's owndistribution network

y Sale of Pharmaceutical Unit

y In 2009 P&G sold its pharmaceutical unit to Warner Chilcott Plc for $3.1 billion incash



GRAPHICAL REPRESANTION OF NET SALESYEAR 2005 2006 2007 2008 2009 2010

Net sales $53,216 $64,416 $72,441 $79,257 $76,694 $78,938

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

2005

net sales

net sales

2006 2007 2008 2009 2010



GRAPHICAL REPRESENTATION OF NET PROFIT

Year 2005 2006 2007 2008 2009 2010

Net profit $6,923 $8,684 $10,340 $12,075 $13,436 $12,736

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Net profit

Net profit

2005 2006 2007 2008 2009 2010



GRAPHICAL REPRESENTATION OF NET WORTH

Year2005 2006 2007 2008 2009 2010

Networth

$18,655 $63,171 $67,012 $69,784 $63,382 $61,439

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1 2 3 4 5 6

Net worth

Net worth

2005 2006 2007 2008 2009 2010



GRAPHICAL REPRESENTATION OF EPS

Year 2005 2006 2007 2008 2009 2010

EPS 2.7 2.8 3.22 3.86 4.49 4.32

0

0.51

1.5

2

2.5

3

3.5

4

4.5

5

1 2 3 4 5 6

EPS

EPS

2005 2006 2007 2008 2009 2010



CAGR

y V (t0) : start net earnings, V (tn) : finish netearnings, tn î t0 : number of years.

CAGR(t2005 ,t2010) =($ 12,736/$6,923)1/2010-2005- 1

= 0.1296 = 12.96%



CONCLUSION

y From the year 2005 upto 2008 the net sales increases then

it again shows a increase in the current year 2010 upto 2010

y From the year 2005 to 2009 the net profit increases and then

it decreases in the year slightly in the current year

yFrom 2005 to 2008 net worth has increased then it shows adownfall trend from the year 2009 and 2010

y From the year 2005 t0 2009 the EPS of the P&G increases

and then it shows a slight downfall in the current year



BIBLIOGRAPHY

ywww. proctor & gamble.com

y www. Wikipedia.com

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