1.

INTRODUCTION

Procter & Gamble Co., also known as P&G, is an American multi-national consumer

goods corporation headquartered in downtown Cincinnati, Ohio, founded in 1837 by British

American William Procter and Irish American James Gamble. It primarily specializes in a wide

range of cleaning agents and personal care and hygienic products. Before the sale of Pringles to

the Kellogg Company, its product portfolio also included foods, snacks and beverages. David

Taylor is the current president and CEO of Procter & Gamble.

Unilever is an Anglo-Dutch transnational consumer goods company co-headquartered

in Rotterdam, Netherlands and London, United Kingdom. Its products include food,

beverages, cleaning agents and personal care products. It is the world's largest consumer goods

company measured by 2012 revenue and is also the world's largest producer of food spreads,

such as margarine. It is Europes seventh most valuable company. Unilever is one of the oldest

multinational companies , its products are available in around 190 countries. Paul Polman is the

current president and CEO of Unilever since 2009.

 2. BENCHMARKING FACTORS

a. TECHNOLOGY

P&G partnership with PureCycle Technologies to use a P&G-invented technology with

the potential to revolutionize plastics recycling. P&G scientists figured out a way to restore

recycled polypropylene plastics to "virgin-like" quality.P&G has been using recycled plastic

for a very long time, and has been a leader in plastics recycling. However, P & G limited in the

amount of recycled content and the products that can use recycled plastic due to the inherently

poor quality of recycled materials.

With this new technology that takes nearly all the imperfections out of the final product,

it will enable P&G to increase their usage of recycled plastics and help us move closer to

meeting our sustainability goals. While this is a P&G-developed technology, the recycled

polypropylene produced by PureCycle will be widely available for purchase across the entire

plastics industry.Today, consumers are increasingly expecting that the products they buy are

environmentally responsible. This new technology delivers a win-winadvancing our

innovative capabilities while also delivering an environmental benefit.

Unilever teamed up with the Fraunhofer Institute for Process Engineering and

Packaging IVV in Germany to develop CreaSolv Process, a groundbreaking new technology to

recycle sachet waste.The CreaSolv Process technology was inspired by an innovation used to

recycle TV sets, where brominated flame retardants are separated from waste electrical and

electronic equipment polymers. During the process, the plastic is recovered from the sachet and

is then used to create new sachets for Unilever products. Unilever believe that their commitment
to making 100 percent of our packaging recyclable, reusable or compostable will support the

long-term growth for their business.

b. FINANCIAL

Procter & Gamble Co ( P&G ) net sales in 2015 is $ 70.7 billions while in 2016 is $ 65.3

billions which declined by -7.6 %.Operating income of the company in 2015 is $ 11 billions

while in 2016 $ 13.4 billions which increased by 18%.Net earnings attributable to Procter &

Gamble in year 2015 is $ 7 billions while in year 2016 $10.5 billions which increase by 34

%.While in net earnings margin from continuing operations in year 2015 is 11.7 % which

increased in the year 2016 to 15.4 %.The market share of Procter & Gamble in this year is

increased 30 %.

While for Unilever, in the year of 2015 turnover increased by 10% to 53.3 billion

including a positive currency impact of 5.9% .The underlying sales growth 4.1%, ahead of to

their markets, with volume up 2.1% and price up 1.9% .The emerging markets underlying sales

growth 7.1% with volume up 2.7% and price up 4.3% . Core operating margin at 14.8% up

30bps and the core operating profit up 12%, operating profit down 5.8% reflecting profits on

disposals in 2014 .Free cash flow for the Unilever of 4.8 billion, up $.7 billion including 0.8

billion of tax on disposal profits in 2014 .Core earnings per share up 14% at current exchange

rates, up 11% at constant exchange rates.

In the First quarter in the year of 2016, Unilever underlying sales growth 4.7% with

emerging markets up 8.3% .Besides that, the volume growth 2.6% and pricing up 2.0% while

turnover declined (2.0)% to $12.5 billion including a negative currency impact of (7.1)%

.Quarterly dividend raised 6% to $0.3201 per share.

 c. MARKETING

The Procter & Gamble Companys marketing mix (4Ps) is typical in the consumer goods

industry. A firms marketing mix or 4Ps (product, place, promotion and price) refer to the

strategies and tactics used to achieve goals in the marketing plan. In this case, Procter & Gamble

has a marketing mix that utilizes various channels to maximize market penetration. Market

penetration is one of the companys main growth strategies .The global market presents

challenges linked to the diversity of products and consumers. For example, P&G must offer a

wide variety of products that satisfy the preferences of numerous consumer types and market

segments. Procter & Gambles marketing mix addresses such concerns to ensure high business

performance. Nonetheless, the consumer goods market is highly dynamic. This condition

requires Procter & Gamble to adapt its marketing mix to match the opportunities and challenges

in the global market.

In Unilever ,one of the marketing strategy that the company implemented are market

penetration.Market penetration strategy of the company runs along its extension more towards

North America, Asia and Europe by extending its product line. The market augmentation could

be done by stimulating the market with product innovation and thus market

penetration.Unilever also implemented market development as one of their marketing

strategy.Unilever is extending the practicality of its market development strategy by stimulating

the product innovation and research and development sector for the new product development.

As the market development for any company becomes more integrated with the companys

expansion, acquisitions and partnerships, therefore Unilever is also focusing on all these
respects.The company diversification strategy is being focused more preferably for the North

America and the emerging economies of Asia including China.

d. TARGET MARKET

To retain the existing customer, Procter & Gamble by improve contracts with existing

customers.Besides that ,the company also will use frequency program.Besides that,identify and

more contact with new potential customers.Objection handling will be encouraged become

campanile constraint that 2/3 ideascome from over customers.Procter & Gamble also will

concert profiteer customers will more pollinate customers.Company considered that customer

is always the king of the market and more sensitive to quality and prices at a time.The target

market of the Procter & Gamble are the middle up class customers especially women and

children. Company will use about 10% cost to retain its customers.

In Unilever , target market is basically based on families who come in upper middle and

higher classes. Most of its products have a premium price. They target that segment of the

market which is willing to pay more for quality and seek value for their money. But they also

offer some lower end fighting brands for lower income people that are able to achieve almost

similar kind of benefit as those consumers who buy their higher end products.
 e. SERVICES

P&Gs Global Business Services (GBS) team, which is responsible for leading efforts

to digitize the company, is transforming the way business is done at P&G. GBS, which provides

technology, processes and standard data tools to help the company operate simpler, flatter,

faster and with more agility, has saved the company more than $900 million to date. The GBS

organization is one of the companys four pillars and is composed of 7000 people. The company

support P&Gs 127,000 employees and 300 brands sold in 180 countries. .Its also provide more

than 170 employee and business services including IT, finance, facilities, purchasing and

employee services as well as business building solutions. The GBS model is all about the AND.

The company want to lower costs AND improve quality AND innovation AND productivity.

GBS is one of the largest, most progressive Shared Service Organizations in the world.

In Unilever, the objective of the service management is to ensuring the delivery

technologies in a service wrapper that drives impact and value that the business that can

understand.There are six process of the service management in Unilever,single point of

aggregation to geography IT , ensuring constant delivery of service metrics , driving service

restoration and management of critical incidents,E2 E-services custodians to ensure zero impact

of live services,managing the service lifecylcle & TCO and driving service performance

culture..The technical component service in directly consumed service ownership service

delivery such as employee services , support services such as HR , finance or workplace and

also business services such as enterprise services.

 f. PRODUCTS

In this case, Procter & Gambles products are classified as consumer goods. The

company included foods and beverages in its product mix until the Pringles brand was sold to

the Kellogg Company in 2012. Streamlining efforts to focus the business on the most profitable

product lines have also corresponded to changes in Procter & Gambles organizational

structure. These changes were aimed at making the company easier to manage. At present,

Procter & Gambles product mix has the following segments:Beauty,Grooming,Health

Care,Fabric & Home Care and Baby, Feminine & Family Care. These segments are based on

how Procter & Gamble manages its consumer goods business. For example, each segment of

products has dedicated management personnel and is reported as a segment in P&Gs annual

filings with the U.S. Securities and Exchange Commission. The Procter & Gamble Companys

Beauty segment includes products like Pantene shampoo and Safeguard soap. Blades, razors,

pre-shave and post-shave products, and related appliances are grouped under the Grooming

segment. Procter & Gamble groups oral care products and supplements into the Health Care

segment. The Fabric & Home Care segment includes laundry detergents, fabric enhancers, and

related products. The Baby, Feminine & Family Care segment includes Procter & Gambles

Pampers diapers and related products, Tampax feminine care products, and Bounty and

Charmin tissue paper products. The variety and range of these product lines indicate that the

company has expanded its operations. Even though there is opportunity to expand this element

of the marketing mix based on the PESTEL/PESTLE analysis of Procter & Gamble, the

company focuses on managing a simpler and more streamlined organization.

 Unilever expands its consumer goods business through the years, resulting in a

broadening product mix currently composed of over 400 brands.This section of the marketing

mix identifies the companys outputs, collectively known as the product mix. Unilever has a

wide variety of products under the following categories: Foods, Refreshment (beverages and

ice cream), Home Care and Personal Care. Unilevers food products include Best Foods

mayonnaise and sandwich spreads, as well as Knorr stock cubes and sauces. The refreshment

category includes Heartbrand ice creams and Brook Bond teas. Unilever sells products like Surf

laundry detergent and Sun dishwasher detergent under the home care category. The companys

Close-Up toothpaste, Vaseline lotion, and Dove soap and shampoo are sold under the personal

care category. These types of products indicate that Unilevers marketing mix is already highly

diversified. Such diversification partly results from the companys acquisition strategy in the

consumer goods market through the years. For example, the firm acquired Best Foods in

2000. Unilevers organizational structure reflects the diversity of consumer goods in this

product mix.
 g. COST

P & Gs are defined as those expenses which are incurred before work in producing the

project deliverable commences, together with those costs that are non-specific to a particular

Bill or Activity list item. P&G cost therefore represents those costs which cannot be reasonably

allocated to any specific identified activity on a project. In this regard the international Webster

comprehensive dictionary defines the word preliminary as antecedent or introductory to the

main business and defines the word general as pertaining to including or affecting all of the

whole; not local or particular. The term originates from civil engineering industry where those

costs which are not attributable to a specific bill of quantity item rate or cost were collected

under the heading P & G expenses.

Unilever not use activity based costing more because when Unilever first acquired the

Gloucester factory - along with three former Birds Eye Wall's frozen food sites - there was an

old system was hugely manually-intensive and all it did was produce paper-based reports, the

main purpose of which was to capture whether people had attended work or not. The allocation

of staff costs against specific products lines was a complex manual process involving four full-

time clerks and a HR department administrator.The costs were accrued against each unique

stock keeping unit (SKU) code although this was problematical due to many obsolete product

variants.Now, Unilever UK Ice Cream then decided to replace the legacy system and switch to

a time-based activity management solution. It has helped the company to cut administrative

costs, reduce absence, and gain a new insight into production activities.
 h. OPERATIONS

The Procter & Gamble Companys operations management (OM) strategy follows goals

for optimization in efficiency and effectiveness in satisfying various needs of the business in

consumer goods markets worldwide. The strategy addresses the 10 strategic decisions, which

pertain to various operational areas of the company. Procter & Gambles operations

management efforts push for maximum productivity in these 10 strategic decision areas. Highly

productive operations support effective strategy implementation. For example, based on higher

productivity, Procter & Gambles operations managers can implement higher production

capacity directives. These conditions contribute to the companys ability to stabilize its global

business. Current OM strategies and tactics work to fulfill Procter & Gambles business goals.

However, it is essential to make adjustments in response to changes in P&Gs industry and

market variables. Such adjustments should match variables like market demand and

technological advances to maintain high performance and support market leadership.

Unilevers operations management (OM) is responsible for keeping high productivity

throughout the global organization of the consumer goods business. Operations managers

develop procedures and processes to support the organization in achieving higher performance

in the 10 strategic decisions pertaining to operations and productivity. Unilevers operational

performance directly supports financial performance. Thus, it is essential for the companys

operations management to address concerns in these strategic decision areas to maintain high

productivity. As a leading consumer goods firm, Unilever has evolving operations management

approaches to keep the business highly productive.In the 10 strategic decision areas of

operations management, Unilever focuses on high productivity through effectiveness and

efficiency in business processes. The resulting high performance ensures Unilevers long-term

success in the global consumer goods market.

i. PRODUCTIVITY

Productivity is a core strength for P&G, which creates flexibility to fund our growth

efforts, offset cost challenges and/or improve operating margins. We have taken significant

steps to accelerate productivity and savings across all elements of costs, which are yielding

significant benefits to our operating margin. Procter & Gamble introduced some productivity

improvements in their cost of goods sold, overhead reductions and marketing efficiencies.

The productivity of Unilevers operations is evaluated using a number of criteria or

measures. With a global consumer goods organization and a diversified product mix, a wide

variety of these measures are used to support operations management decisions. The following

are some notable productivity criteria used at Unilever :Batches shipped (Distribution facility

productivity),Units produced (Manufacturing productivity) and Inquiries addressed (Unilevers

consumer advisory service productivity)

 j. TIME

Most of P&G's models use a continuous review policy. Continuous review policy, as

the name implies, means that inventory levels are monitored continually. When inventory goes

below a set order point, the company reorders up to a set amount using an order quantity

(number of items per unit) or a multiple of the order quantity. The models have been developed

to accommodate the demand and production situation that P&G faces.

Unilever using just-in-time delivery system products. For example, when Unilever send

products to Carrefour. Carrefour will periodically count using sampling method regarding what

Unilever products are sold every day, (even more focused when the weekend). And asks

Unilever to deliver the amount of product that Carrefour need. Therefore, it is certain Unilever

send the products to the Carrefour in a timely manner according to the situation of goods stock

in Carrefour, because of that Unilever hope that customer are satisfied with the Unilever

products.