PROCTER & GAMBLE

Group MBA-1 [C3]Faculty Mentor : Prof. Deepa

PillaiStudent Mentor : Rohan Totala

INTRODUCTION TO FMCG SECTOR

FMCG EVOLUTION

1950’s-80’s ± Low Investment in the sector

Low purchasing power

Govt. emphasis on small scale sector

HLL and other company’s urbane

focus

Post liberalization Entry of MNCs

Focus shifted to getting to

rural consumer

first

Others, like Nestle,

remained with the urban population

Latest fad to hit the market is the ‘sachet’

bug.

Mushrooming of regional brands Nirma enters and changes the focus to Value for Money in the 70’s

Jyothy Laboratories, Ghari Detergent and ‘Anchor’ toothpaste

giving the nation-wide brands a run for their

money.

Industry Segments Household Care Branded and Packaged Food and Beverages Spirits and Tobacco

TRENDS AND TECHNOLOGY

Self Service Equals Labour Saving 

Quasi Personaliz

ed advertise

ment

Integrating Brick &

Mortar and Online Stores

TOP 10 IN INDIA

HULIT

C

NESTL

E

DABUR

PIDILI

TE

COLGATE

PLAMOLIV

EGCPL

BRITANNIA

MARICO

P&G

0

100

200

300

400

500

600 536

137 12191 84 77 70 62 56

34

Top 10 in India

Profit(in crores)

GOVERNMENT POLICIES

Excise Cut

Foreign Direct Investment  Removal of Quantitative Restrictions

and Reservation Policy  Central and state initiatives   Food laws

HISTORY OF P&G

Started in 1837 by William Procter and James Gamble.

First products were soaps and candles.

Procter and Gamble has nearly 300 brands in more then 160 countries.

Main Headquarter in Cincinnati, Ohio.

Employs 138,000 people in 160+ countries.

KEY PERSONNEL

Mr. R. A. Shah(Chairman)

Mr. S. Khosla(Managing director)

Mr. B. S. Mehta(Non-Executive

Director)

Mr. D. Acharya(Non-Executive

Director)

Ms. D. A. Henretta(Non-Executive

Director)

Mr. P. Agarwal(Non-Executive

Director)

SWOT ANALYSIS

Product Innovation

Well Establishe

d And Strong Brand

Market Penetratio

n

Untouched rural

market

Excellent R&D

Department.

Developing Market.

Gillete, Old Spice

Acquisition.

Intense Competitio

n.

Rising Prices Of

Raw Material.

Removal Of Import

Restrictions Resulting

In Increasing Competitio

n.

4 P’s

Hygiene &

Health Care

• Feminine Care

• Health Care

Home Produ

cts

• Fabric Care

• Hair Care

• Baby Care

Gillette

• Gillette Shaving

• Duracell

• Oral B

Other

• Olay• Old

Spice• Camay

PRODUCT

PRICE: It varies according to product.

PLACEThrough Strategic account management team develops supply chain improvements that boosts the sales by 9%.

49 other places other than India. PROMOTION

Print and electronic media have effective recall & persuasion scores.

Celebrity Endorsement.

FINANCIAL ANALYSIS

INTERPRET THE FINANCIAL STATEMENT OF P&G

FINANCIAL RATIO OF

P&G

LIQUIDITY RATIO

PROFITABILITY RATIO

GEARING RATIO

SHAREHOLDER RATIO

July 2010 July 2009 July 2008

Current ratio 1.17 1.4 1.01

Quick ratio 0.98 1.13 0.79

LIQUIDITY RATIO

CURRENT RATIO=CURRENT ASSET/CURRENT LIABILITYQUICK RATIO = (CURRENT ASSET-INVENTORY)/CURRENT LIABITY

Chart liquidity ratio

July 2010 July 2009 July 2008

ASSET TURN OVER 1.71 1.76 1.8

Fixed asset turnover

3.94 3.65 3.57

NET PROFIT RATIO 19% 23% 20%

EBIT 25.53 29.91 27.58

EBITDA 25.54 26.95 25.57

PROFITABILITY RATIO

ASSET TURN OVER = SALES/TOTAL ASSETFIXED ASSET TURN OVER= SALES/FIXED ASSETNET PROFIT RATIO= NETPROFIT/SALES

July 2010 July 2009 July 2008

Debt equity ratio

0 0 0

Intrest coverage ratio

0 0 0

GEARING RATIO

DEBT EQUITY RATIO = TOTAL BORROWING/SHARE HOLDER FUNDAs there is no borrowing the debt equity ratio and interest coverage ratio is 0

July 2010 2009 July 2008

EPS 40.15 55.10 40.48

PE RATIO 40.15

SHAREHOLDER RATIO

Eps=(pat-preference Dividend)/No Of Share Holders

NAME OF COMPANY

PRICE EPS P/E RATIO 1 yr return %

P&G HYGIENE AND HEALTHCARE

2223.25 55.38 40.15 53.2

MARICO 130.3 3.93 33.14 43.27

NIRMA 240.5 13.9 17.31 28.37

DABUR 106.7 2.54 42 53.14

SHAREHOLDER RETURN ANALYSIS

0

10

20

30

40

50

60

1 yr return %

P&G hygieneand healthcare

Marico

Nirma

Dabur

HR POLICIES

Personal

Behavior at

Workplace

Child Labor and

Worker

Exploitatio

n Policy

Wage and Hour Practi

ces

Safety &

Health

Policy

Environmental

Quality

Policy

Attracting Talen

t:

Motivating and

Retaining Talen

t:

CAREER OPPORTUNITIES

Marketing-Assistant Brand

Manager

Finance & Accounting-

Financial Analyst

Customer Business

Development- Key Account Manager

Human Resources-

Associate Manager HR

Information Technology-

Associate Manager

Consumer Market

Knowledge-Associate Manager

Product Supply- Associate Manager

CSR INITIATIVE

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Rebuilding Lives for Earthquake victims in Gujrat(2001/2002)

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)

Project Open Minds: Educating India’s Working Youth (1999)

Project Drishti: The First-ever Sight Restoration Programme in India (1999)

Project Peace: Environment Education Programme

AWARDS

P&G Wins the 7th Annual

International Business Awards

with its Live, Learn and Thrive

Corporate Cause Program in

Asia(July 13, 2010 )

Awarded Stevie Winner for CSR Program of the

Year 2010 in Asia ((Subcontinent, Australia and New Zealand)

Awarded Stevie Distinguished

Honoree for CSR Program of the Year 2010 in Asia (China,

Japan and Korea)

Proctor and Gamble Asia Pte Ltd have been awarded the 2010 Asian

Human Capital Award. in Singapore

CONCLUSION

P&G delivers high quality, reliable and cost-effective FMCG products to customers globally.

P&G provide wide variety of products by constantly exploring and implementing innovative techniques that drive long-term value to their customers.

Though P&G is one of the top companies in world they lag in India due to their rural market negligence.

P&G products are priced on value basis but Indian customers are price sensative.

THANK YOU