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REPORT ON MANAGEMENT & HRM OF

Presented by:Nida NasirAniqa SabaRakhshanda MukhtarSubmitted to: Ms. Nighat MoinHISTORY OF P&GP&G is an American multinational consumer goods.Company Headquarter in Ohio , United States.P&G was founded in 1837 by William Procter and James Gamble.William a Candle maker and James a Soap maker.On 31 October the Procter and Gamble company was created.

FOUNDERS OF P&GP&G HISTORY: A LEGEND OF FIRSTS1837: William Procter and James Gamble started making and selling candles and soap.1859: After the partnership is formed, P&G sales reached $ 1 million.1862:During the Civil war, Procter & Gamble was awarded several contracts.1879:An inexpensive, but high-quality IVORY soap was introduced.

P&G HISTORY: A LEGEND OF FIRSTS1895: King Camp Gillette invented the first safety razor.1896: First color print advertisement- an ad for Ivory.1924: A market research department is created.1937: P&G celebrated its 100th anniversary , Sales reach $230 million.1955: Creates the first tooth paste.1961:Pmpers is introduced and eventually replaces clothes diapers.

P&G HISTORY: A LEGEND OF FIRSTS1980: Sales reached $ 10 billion.1987: P&G celebrated its 150th anniversary.2002: P&G developed Naturally feminine pads.TODAY P&G operates in 80 countries world wide , employing more than 100,000. Its slogan is Touching and Improving Lives.

ORGANIZATIONAL STRUCTURE

ORGANIZATIONAL STRUCTUREIt specifies the firm formal reporting relationships , procedures , controls and authority decision.It is comprised of Global business units , Selling and Market operations , Global Business Service and Corporate Functions.Global Business Units are responsible for developing overall strategies.Selling and Market operations help in developing and executing market plans at the local level . Global Business Services provides technology , processes and standard data tool. MEMBERSOF P&GA.G Lafley: Chairman of the board , president and chief executive officer of the company.

Francis S . Blake : Former chairman of the board

MEMBERSOF P&GDavis S . Taylor: Group president , Beauty , Grooming and Health care President and chief Executive Officer. Mark Biegger: Chief Human Resource Officer.

Steven D. Bishop: Group President , Global Oral Care.

Giovanni Ciserani: Group President , Global Fabric & Home Care.

MEMBERSOF P&GLinda W . Clement- Holmes: Chief Information Officer.

Mary Lynn Ferguson Mc Hugh: Group President, Global Family care.

Colleen E Jay: President Beauty Specialty Businesses.

R . Alexandra Keith: President Global Skin and Personal care.

EXTERNAL ENVIONMENT OF P&GEconomic:

Adapted to the recession by lowering earning projections.

Shed 15% of the management staff.

Focus on the 43 best-selling brands

Have to keep up with changing trends in consumer demand.

EXTERNAL ENVIRONMENT OF P&GDemographic

Everybody will use most these products.

Middle to upper class consumers due to the higher price of the brand name products.

Global in more than 80 countries

EXTERNAL ENVIRONMENT OF P&GLegal / Regulatory

Must meet industry regulations and standards inmany different countries

Competition

Three main competitors

Johnson & Johnson

Kimberly-Clark

Unilever

L'Oreal

EXTERNAL ENVIRONMENT OF P&G Competitor Analysis:Stiff competitors like Estee Lauder, Maybelline and LOreal. The cost of switching is very less. The main competitors are the ones which manufacture same range of cosmetics but at lower cost.P&G products must be capable enough to put strong competition to its opponent products.EXTERNAL ENVIRONMENT OF P&G Domestic Competition: New products coming with private labels in local markets every now. P&G should follow some innovation. Introduce new and fresh products. Wal-Mart is the biggest buyer of P&G products. It has formed strategic alliances with it.EXTERNAL ENVIRONMENT OF P&GInternational Competitors:Most fit for survival across the international market.The huge global scale of P&G allows it to get an edge over LOreal in developing countries.Competitive Advantage: Has diversified product portfolio. The P&G has created brand awareness. By recession which is why it again gains an edge over LOreal i.e. cosmetics range.

INTERNAL ENVIRONMENT OF P&GP&G Epitome of cultureIn P&G, they use we instead of I.Everyone at P&G is like a hand in a bucket of water-when the hand is removed, the water closes in and there is no trace. Conform and you succeed; questions and you are gone.Research as an integral part of P&G thoroughness.Its aim is to produce products that consistently win the consumers blind tests.

INTERNAL ENVIRONMENT OF P&GCore values are:LeadershipOwnershipIntegrityPassion for winningTrustPrinciples:Show respect for all individuals.Strategically focused on workSeek to be the best.Innovation is cornerstone towards success.Mutual Interdependency is a way of life.Externally focused.

INTERNAL ENVIRONMENT OF P&GHuman Resources:

Hire and retain some of the mosttalented people in the industry.

Rewarded and recognized for theircontributions.

Global training programs on managing the innovation process.

Training for high-potential junior staff.

INTERNAL ENVIRONMENT OF P&G P&Gs internal strategy is to focus on 5 core strengths to win the customer products industryConsumer Understanding: P&G conducts over 20,000 research studies.Innovation: Is recognized as the industrys global leader in innovation.Brand Building: Portfolio of 50 leadership brands which make up 90% of sales .Go-to-Market Capabilities: P&G is ranked as the preferred supplier by leading retailers.Scale: Allocating resources more strategically and efficiently.

INTERNAL ENVIRONMENT OF P&GMarketing:

Constant emphasis on building brand recognition andbrand value

In the 1880s it was oneof the first companies to advertise nationally.

In the 1930s, P&G was the first firm to develop the idea ofbrandmanagement.

In the 1930s they used their own soap operasand radio programs for advertising.INTERNAL ENVIRONMENT OF P&GResearch:World class R&D organization, with more than 7,500 scientists. This includes 1,250Ph.D.scientists.Invest4% ofsales backinto research& development.Lafley had an enormous impact on P&G in an attempt to turn a stalling company around.

INTERNAL ENVIRONMENT OF P&GLeadership A.G. Lafley states that:Todefineandinterpretthemeaningfuloutside (external environment).To answer the two-part question: What business are we in and what business are we noting?Tobalance sufficientyield in thepresent withinvestment in the future.Toshape the values andsetthe standards of the organization.

NAME THE 3 FAMOUS SHAMPOOS THAT COME IN YOUR MIND????

WAS THIS THE ONE???

P&G PRODUCTSAlways is a brand of feminine hygiene products.Ariel is a brand of laundry detergent.Atonal is a brand of osteoporosis drug.Bounty is a brand of paper towels.Braunis a small-appliances manufacturer specializing in electric razors, coffeemakers, toasters, and blenders.Crestis a brand oftoothpaste.Dawnis a brand of dishwashingdetergent.

P&G PRODUCTSDowny/Lenorais a brand offabric softener.Duracellis a brand of batteries and flashlights.Fusionis a brand of men's wet shave razors.Gainis a brand of laundry detergent and fabric softeners.Gilletteis asafety razormanufacturer.Head & Shouldersis a brand ofshampoobody wash, and deodorant.Old Spiceis a brand ofaftershaveandshaving cream.

P&G PRODUCTSIvoryis a soap.Nice 'n Easyis ahair coloringproduct.Olayis a brand of women'sskin careproducts.Oral-Bis a brand of toothbrush.Pampersis a brand of disposablediaper.Panteneis a brand ofhair careproducts.Prilosec OTCis a brand of heartburn medicine.Pringlesis a brand of potato chips.

P&G PRODUCTSPuffsis a brand offacial tissue.Secretis a brand of antiperspirant and deodorant.Safeguard is global personal care brand.TAGis a deodorant andbody spray.Tideis a brand of laundry detergent.Vicksis a brand name of over-the-counter medicines Wellais a brand name of hair care productsWhisperis a brand of panty liners sold primarily in Asian markets.

Beauty SegmentCompetition and GrowthCompetitorsUnileverLOrealPrivate Labels

3% Net sales growth from 201124% of P&Gs Net Sales are from the Beauty segment

BRAND AWARENESS

BRAND AWARENESSDISTRIBUTION AT P&GThe distribution is of three types, which are being followed :Intensive distributionExtensive distributionSpecialty distribution

DISTRIBUTION CRITERIAOrdering Speed:-Manufacturing of product and the time till it reaches the consumer.Delivery Flexibility:- How easy to distribute the product. Personal Selection And Customization:- Which distribution channel to select.Basic Channels of DistributionManufacturers/productsAgentsWholesalers/distributorsRetailersRetailersConsumers and organizational end usersPROMOTION STRATEGYP&G insists on a pull strategyHeavy advertising and media pioneerAdvertising creativityP&G A click mortar companyCoupon Celebrity advertising

PRICING STRATEGIESUnderstand how companies find a set of prices that maximizes the profits from the total product mix.Learn how companies adjust their prices to take into account different types of customers and situations.Know the key issues related to initiating and responding to price changes.

AN INTEGRATED CASCADE OF CHOICESDIFFERENT PRICING STRATEGIES ADOPTED BY P&GOptional-features strategyProduct-line pricingCost-plus pricingCompetitive pricingDistribution pricing

ONLINE MARKETINGThe company has actively developed or sponsored numerousonline communities.As of 2000, the company had 72 "highly stylized destination sites.

HR SYSTEM AND STRATEGIESThe HR function at P&G isnt traditional support function but a strategic function.P&G has unique Human Resource strategies e.g. promote from with in philosophy.People are recruited at the entry level.Through continuous mentoring people with in the company at highest levels.

HR PLANNINGThe HR planning in P&G is done by different departments and business units.P&G hires people from base level and then promote people from with in.P&G has strong policy of job rotation.The job analysis is based on success drivers.

HIRING PRINCIPLE

HR DEPARTMENT OF P&GThe HR department at P&G is a strategic function.The department helps form and implement strategies.HR here is a change and development agent and not the policy of the organization.HR sits at the table while making policies, procedures, goals, and strategies.

Human Resource Development Function:RECRUITMENT & SELECTION AT P&G:Recruitment and selection is done in following steps:Job structure and definitionJob descriptionJob specificationJob standardsSelection

P&G RECRUITMENT AND SELECTION PROCESS:

SELECTION PROCESS:ApplicationAssessmentInitial InterviewFinal InterviewYour offer and Your future

TYPES OF SELECTION DEVICES:Written testsOnline evaluationScreening interviewPanel interview

ORIENTATION:Two type of orientation takes places at P&G:

Work unit orientation Organization orientation

TRAINING AND DEVELOPMENT APPROACHES:Basically there are two approaches for training and development: On-the-job Job rotationJob Instruction trainingCoaching Off-the-jobWarehouse TrainingAction Learning

IMPROVE PRODUCTIVITY IN ALL AREASCost of Goods Reduce Raw Material costs Long-term contractsIncrease Number of SuppliersReduce excess inventoryDevelop partnerships (PGT Healthcare)Research & Development ~ $2 billion annuallyContinuous improvementProduct InnovationGROWTH IN DEVELOPING MARKETSCompany-wide initiative: Acquire 1 billion additional consumers by 2014/2015SWOT ANALYSIS OF P&G:STRENGTH:Product innovation.Offers multiple products.Strong Brand Image.Strong customer liability.Diversified business structure.Research and development.Global Operation.Strong Distribution Network.

SWOT ANALYSIS OF P&G: WEAKNESS: Views product performance only. Increased promotional spending to keep healthy sales. Customer concentration.

SWOT ANALYSIS OF P&G: OPPORTUNITIES: Going Green/ Eco friendly Emerging markets Selling directly to customers Better product experience Diversification. Capitalizing on media.

SWOT ANALYSIS OF P&G:THREATS:Substitute of brands that have cheaper price.Slow down in consumer spending.Key competitors expanding their product portfolios through acquisitions.Increase cost of raw material.Competition.Government regulation.

P&G VS PRIVATE LABELSIntense competitionPrivate labels are much cheaper

ENVIRONMENT PROTECTION Environment suffers due to industrialization and development.Development must be carried out keeping the sustainability in mind.The P&G Co. today expanded its sustainability goals to continue creating value.We continue to improve the environmental sustainability of our products.Expanded its social sustainability work, touching and improving the lives each year through: Children Safe Drinking WaterPamper UNICEF Partnership. ENVIRONMENT PROTECTION We focus on areas where we can make the biggest positive impact.

We include sustainability into every aspect of our productsfrom initial design to manufacturing to packaging to social impact.

ENVIRONMENT PROTECTION ENVIRONMENT PROTECTION

ENVIRONMENT PROTECTION Olay has reduced water usage by 12%.Thanks to a special pump redesign.Olay diverts manufacturing waste.Its plant in Ireland has reduced: energy consumption by 12% CO2emissions by 16%.

ENVIRONMENT PROTECTION Cascade PlatinumCascade Platinum is a dishwashing product.Innovation to conserve resources at home.They eliminate the need to pre-rinse dishes before putting them into the dishwasher.

ENVIRONMENT PROTECTION We see sustainability as an opportunity.Our objective is lead value with brands and products that consumers prefer.We conserve resources, protect environment and social conditions.Ensure our products, packaging and operations are safe.Actively encourage reuse, recycling and composting.

P&G AWARDS AND ACHEIVEMENTSNational Association for Female Executives:Recognized by the National Association for Female Executives as one of the Top 50 Companies for Executive WomenRanked #10 on the Worlds Most Respected Companies List

P&G AWARDS AND ACHEIVEMENTSAC Nielsen Survey:Ranked #3 as the Employer of Choice across the targeted campuses in a survey conducted by AC Nielsen.Business Today:Business Today has rated P&G amongst the most preferred companies by management students across India.

FACTS AND FIGURESTop 10 Advertisers in 2014 (Q1)

REVENUE GROWTH OF P&G

OLYMPIC GAMES SPONSERSHIP

KEY TO SUCCESS OF P&G

THANK YOU ALL FOR YOUR ATTENTIONSheet1Top Cough Syrup Makers - Market ShareCompany% - 2010% - 2011% ChangeWyeth Labs, Inc. (Pfizer)25.1725.870.7Reckitt Benckiser26.8224.23-2.59Private label24.7822.17-2.61Procter and Gamble Co.13.59195.41Other33.310.31Novartis Consumer Health2.613.020.41Blacksmith Brands0.651.120.47Health Care Products1.360.73-0.63Boiron-Borneman1.130.55-0.58Qualitest Products0.90-0.9Info. Gathered from Business & Co. Resource Center

Market shares are shown based on supermarket, drug stores and mass merchandisers sales for the 52 weeks ended March 20, 2011.https://sremote.pitt.edu/servlet/,DanaInfo=galenet.galegroup.com+BCRC?rsic=PK&rcp=CO&vrsn=unknown&locID=upitt_main&srchtp=cmp&cc=1&c=3&mode=c&ste=95&tbst=tsCM&tab=8192&ccmp=Procter+and+Gamble+Co.&tcp=procter+and+gamble&n=25&docNum=I2502039508&bConts=13247