Procter & Gamble

2016-18

PPM IT -Assignment 2 India Based MNC

By Neethu Sethu Nair

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Procter & Gamble

INTRODUCTION

Procter & Gamble Co., also known as P&G, is an American multinational consumer

goods company headquartered in downtown Cincinnati, Ohio, United States, founded by

William Procter and James Gamble, both from the United Kingdom.

Its products include cleaning agents and personal care products. Prior to the sale

of Pringles to the Kellogg Company, its product line also included foods and beverages.

In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was

streamlining the company, dropping around 100 brands and concentrating on the remaining

65 brands, which produced 95% of the company's profits. A.G. Lafley, the company's

chairman, president, and CEO until October 31, 2015, said the future P&G would be "a

much simpler, much less complex company of leading brands that's easier to manage and

operate".

David Taylor became P&G CEO and President effective November 1, 2015.

HISTORY

Origins Candlemaker William Procter and soapmaker James Gamble, both born in the United

Kingdom of Great Britain and Ireland, emigrated from England and Ireland, respectively.

They settled in Cincinnati initially and met when they married sisters, Olivia and Elizabeth

Norris. 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 created.

In 1858–1859, sales reached $1 million. By that point, about 80 employees worked for

Procter & Gamble. 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.

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In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that

floats in water. The company called the soap Ivory. William Arnett Procter, William

Procter's grandson, began a profit-sharing program for the company's workforce in 1887.

By giving the workers a stake in the company, he correctly assumed that they would be

less likely to go on strike.

The company began to build factories in other locations in the United States because the

demand for products had outgrown the capacity of the Cincinnati facilities. The company's

leaders began to diversify its products, as well, and in 1911, began producing Crisco,

a shortening made of vegetable oils rather than animal fats. As radio became more popular

in the 1920s and 1930s, the company sponsored a number of radio programs. As a result,

these shows often became commonly known as "soap operas"

International expansion

The company moved into other countries, both in terms of manufacturing and product

sales, becoming an international corporation with its 1930 acquisition of the Thomas

Hedley Co., based in Newcastle upon Tyne, England. After this acquisition, Procter &

Gamble had their UK Headquarters at 'Hedley House' in Newcastle upon Tyne, until quite

recently. Numerous new products and brand names were introduced over time, and Procter

& Gamble began branching out into new areas. The company introduced Tide

laundry detergent in 1946 and Prell shampoo in 1947. In 1955, Procter & Gamble began

selling the first toothpaste to contain fluoride, known as Crest. Branching out once again in

1957, the company purchased Charmin paper mills and began manufacturing toilet

paper and other tissue paper products. Once again focusing on laundry, Procter & Gamble

began making Downy fabric softener in 1960 and Bounce fabric softener sheets in 1972.[7]

One of the most revolutionary products to come out on the market was the company's

disposable Pampers diaper, first test-marketed in 1961, the same year Procter & Gamble

came out with Head & Shoulders. Prior to this point, disposable diapers were not popular,

although Johnson & Johnson had developed a product called Chux. Babies always wore cloth

diapers, which were leaky and labor-intensive to wash. Pampers provided a convenient

alternative, albeit at the environmental cost of more waste requiring landfilling.

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Further developments

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, the Iams Company, and Pantene, among others. In 1994,

the company made headlines for big losses resulting from levered positions in interest rate

derivatives, and subsequently sued Bankers Trust for fraud; this placed their management

in the unusual position of testifying in court that they had entered into transactions that

they were not capable of understanding.

In 1996, P&G again made headlines when the Food and Drug Administration approved a new

product developed by the company, Olestra. Also known by its brand name 'Olean', Olestra

is a lower-calorie substitute for fat in cooking potato chips and other snacks.

In January 2005, P&G announced the acquisition of Gillette, forming the largest consumer

goods company and placing Unilever into second place. This added brands such as Gillette

razors, Duracell, Braun, and Oral-B to their stable.

The acquisition was approved by the European Union and the Federal Trade Commission,

with conditions to a spinoff of certain overlapping brands. P&G agreed to sell its Spin

Brush battery-operated electric toothbrush business to Church & Dwight, and

Gillette's Rembrandt toothpaste line to Johnson & Johnson. The deodorant brands Right

Guard, Soft and Dri, and Dry Idea were sold to Dial Corporation.

The companies officially merged on October 1, 2005.Liquid Paper and Gillette's stationery

division, Paper Mate, were sold to Newell Rubbermaid. In 2008, P&G branched into the

record business with its sponsorship of Tag Records, as an endorsement for TAG Body

Spray.

P&G's dominance in many categories of consumer products makes its brand

management decisions worthy of study. For example, P&G's corporate strategists must

account for the likelihood of one of their products cannibalizing the sales of another.

On August 25, 2009, the Ireland-based pharmaceutical company Warner

Chilcott announced they had bought P&G's prescription-drug business for $3.1 billion.

P&G exited the food business in 2012 when it sold its Pringles snack food business

to Kellogg's for $2.75 billion after the $2.35 billion deal with former suitor Diamond

Foods fell short. The company had previously sold Jif peanut butter and Folgers coffee in

separate transactions to Smucker's.

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In April 2014, the company sold its Iams pet food business in all markets excluding Europe

to Mars, Inc. for $2.9 billion. It sold the European Iams business to Spectrum Brands in

December 2014.

CORE STRENGTHS OF PROCTER & GAMBLE

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Consumer Understanding

No company in the world has invested more in market research than P&G. We interact with

more than five million consumers each year in nearly 100 countries. We conduct over

15,000 research studies every year, and invest more than $350 million annually in

consumer understanding.

The insights we gain help us identify opportunities for innovation and better serve and

communicate with our consumers.

Innovation

P&G is widely recognized as the industry‘s global innovation leader. Nearly all organic sales

growth over the past decade has come from new brands or improved products. We

collaborate with a global network of research partners, and more than half of all product

innovation coming from P&G today includes at least one major component from an external

partner.

Their contributions have consistently helped us earn honors from the SymphonyIRI New

Product Pacesetters Report—the annual list of the biggest innovations in our industry.

Over the past 16 years, P&G has had 132 products on the top 25 Pacesetters list—more

than our six largest competitors combined. P&G earned 5th place among Fortune‘s 2011 list

of the World‘s Most Admired Companies. And as of April 2011, P&G has won 22 ―Product of

the Year‖ recognitions, as voted on by consumers in the US, UK, France, Holland, Italy,

Spain, and South Africa.

Brand-Building

P&G is the brand-building leader of our industry. We‘ve built the strongest portfolio of

brands in the industry with 50 leadership brands that are among some of the world‘s best-

known household names–and which together make up 90% of P&G‘s sales and more than

90% of profits. Twenty-five of these brands each generate more than $1 billion dollars in

annual sales.

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Go-to-Market Capabilities

We‘ve established industry-leading go-to-market capabilities. P&G is consistently ranked

by leading retailers in industry surveys as a preferred supplier. We‘re also frequently

ranked as the industry leader in a wide range of capabilities, including clearest company

strategy, brands most important to retailers, strong business fundamentals and innovative

marketing programs.

Scale

P&G is creating scale advantage by integrating across our enterprise, consistently acting as

one Company across our businesses and markets. By harnessing the strength of our brands

and categories as one Company, we can better serve more consumers around the globe.

With all of our brands, businesses, and people working in unison, we can create scale

advantages by allocating resources more strategically and efficiently than any individual

business can do on its own.

This combination is greater than the sum of its parts—and we are focused on maximizing

its potential.

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STRUCTURE OF BUSINESS

FUNCTIONS IN U.S.A

SALES

Amanda Beatty

Senior Account Executive at Procter & Gamble Current 1. Procter & Gamble

Previous 1. Procter & Gamble

Education 1. Miami University

Experience

Senior Category Manager

Procter & Gamble August 2015 – Present (1 year 1 month)Fayetteville, Arkansas

Account Executive Procter & Gamble January 2014 – August 2015 (1 year 8 months)Cincinnati, Ohio

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INFORMATION TECHNOLOGY

Amruta Jonnalagadda

IT Project Manager, Business Process Transformation

Leader at Procter & Gamble Cincinnati Area, KY

Consumer Goods

Current 1. Procter & Gamble

Previous 1. Procter & Gamble,

2. McCombs School of Business,

3. CRISIL

Education 1. University of Bath

Experience

IT Innovation & Systems Analyst, Global Business Services

Procter & Gamble

June 2011 – Present (5 years 3 months)Cincinnati Area, KY

Cross functional IT Consultant

IDS Intern

Procter & Gamble

June 2010 – August 2010 (3 months)

Cheryl Hall Customer Analytics and Big Data at Procter & Gamble

Seattle, Washington Information Technology and Services

Current 1. Procter & Gamble

Previous 1. Procter & Gamble,

2. Alfa Insurance,

3. Launching Entrepreneurs Across Rural Networks

Education 1. University of Alabama

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Arka Chaudhuri IT Manager at Procter & Gamble

Cincinnati Area, KY Information Technology and

Services

Current 1. Procter & Gamble

Previous 1. Procter & Gamble

Education 1. Penn State University

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FINANCE AND ACCOUNTING

Famatta Mensah

Retail Finance Manager at Procter & Gamble

Cincinnati, Ohio

Consumer Goods

Allison Kirkby

Chief Executive Officer at Tele2 AB

Stockholm, Sweden Telecommunications

Current 1. Tele2,

2. Reach For Change,

3. Greggs PLC

Previous 1. Tele2,

2. In Kind Direct,

3. 21st Century Fox

Education 1. The Chartered Institute of Management

Accountants

Current Procter & Gamble

Previous Procter & Gamble

Education University of South Carolina-Columbia

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HUMAN RESOURCES

Janet Nelson

Senior HR Manager, North America Baby Care and

North America Feminine Care at Procter & Gamble

Cincinnati Area, KY Consumer Goods

Previous 1. Procter & Gamble,

2. First Hospital Corporation,

3. Contact Concepts

Education 1. Vanderbilt University

BRAND MANAGEMENT/MARKETING

Maddie Bell

Brand Manager - Walmart Customer Team at Procter &

Gamble

Fayetteville, Arkansas Marketing and Advertising

Current 1. Procter & Gamble

Previous 1. Procter & Gamble,

2. Duke Student Broadcasting,

3. Hart Leadership Program: Entrepreneurial

Leadership Initiative

Education 1. Duke University

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PROCTER & GAMBLE IN 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 and Wella. 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 six 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 Private Limited‘.

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Nikhil Ramesh

Country Marketing Manager - Procter & Gamble

Mumbai, Maharashtra, India

Consumer Goods

Current Procter & Gamble

Previous Procter & Gamble

Education Indian Institute of Management, Bangalore

Experience

Country Marketing Manager - P&G India Beauty Care

Procter & Gamble

September 2012 – Present (4 years)Mumbai Area, India

Country Marketing Manager for P&G India Beauty Care (Skin & Body Care)

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FINANCE AND MARKETING

Karthik Natarajan CFO, Finance Director - P&G India Mumbai,

Maharashtra, India Consumer Goods

Current 1. Procter & Gamble

Education 1. Institute of Chartered Accountants of

India

HUMAN RESOURCES

Sonali Roychowdhury

HR Director - India/Middle-east/ Africa Distributor Operations, and Indian Sub-

continent

Mumbai Area, India Consumer Goods

Current 1. Procter and Gamble

Previous 1. Procter and Gamble India

Education 1. XLRI Jamshedpur

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BRAND MANAGEMENT/MARKETING

Chandan Pansari

Brand Manager, Oral Care, India at Procter & Gamble

Mumbai Area, India Marketing and Advertising

Previous 1. Procter & Gamble,

2. Google

Education 1. Mudra Institute of Communicatons,

Ahmedabad

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THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES

Agile Pursuits Franchising, Inc. [Ohio] Agile Pursuits, Inc. [Ohio] An-Pro Company [Ohio] Arbora & Ausonia, S.L. [Spain] Arbora, S.A. [Spain] Baryon, S. de R.L. de C.V. [Mexico] Becruz, S.A. de C.V. [Mexico] Braun (Shanghai) Co., Ltd. [China] Braun (Shanghai) International Trading Co., Ltd. [China] Braun GmbH [Germany] Braun Oral-B Ireland Limited [Ireland] Braun-Gillette Immobilien GmbH & Co. KG [Germany] CAMADA Grundstücks-GmbH & Co. oHG [Germany] (*) Capella OOO [Russia] Celtic Insurance Company, Inc. [Vermont] Chemo Laboratories Manufacturing Sdn. Bhd. [Malaysia] China Battery Limited [Hong Kong] Clairol Limited [U.K.] Compania Giva, S.A. [Delaware] Compania Procter & Gamble Mexico, S. de R.L. de C.V. [Mexico] Consumer Studies, Inc. [Massachusetts] Corporativo Procter & Gamble, S. de R.L. de C.V. [Mexico] Corpydes S.A. de C.V. [Mexico] Cosmetic Products Pty. Ltd. [Australia] Cosmopolitan Cosmetics China Ltd. [Hong Kong] (*) Crest Toothpaste Inc. [Canada] Decun, S. de R.L. de C.V. [Mexico] Detergent Products A.G. [Switzerland] (*) Duracell (1993) Ltd. [U.K.] Duracell (China) Ltd. [China] Duracell Batteries B.V.B.A. [Belgium] Duracell Batteries Ltd. [U.K.]

And many more etc..

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CAPTIVE OF PROCTER AND GAMBLE

Captive facility - In the captive center model, the business sets up its own

subsidiary offshore so that all assets and staff are owned by the client business.

The client then sets up its own operations through hiring local staff and leveraging

expatriate staff.

This model has the advantage of the client retaining ownership and operational

control. Captive centers will best serve clients that want to migrate core business

processes offshore or technology companies that want to establish IT

development, support and maintenance in a multi-shore structure.

Examples of successful captive operations include GE, Amex, Intel, SAP, JP

Morgan Chase, Standard Chartered Bank in India and P&G and Chevron Texaco.

WHY CAPTIVES….????

The process of choosing a specific type of global ownership model depends upon an

analysis of a company‘s strategic requirements, decision influencers and key

benefits afforded. In this section, we outline a situation where the captive model

is the best choice. Figure 2 highlights the major requirements, decision influencers

and key benefits that support the decision to select a captive ownership model.

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THANK YOU