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PROCTER & GAMBLE

Group MBA-1 [C3] Faculty Mentor : Prof. Deepa Pillai Student Mentor : Rohan Totala

INTRODUCTION TO FMCG SECTOR


FMCG EVOLUTION 1950s-80s Low Investment in the sector Post liberalization Mushrooming of regional brands Industry Segments
Govt. emphasis on small scale sector Focus shifted to getting to rural consumer first

Low purchasing power

HLL and other companys urbane focus


Others, like Nestle, remained with the urban population

Entry of MNCs

Latest fad to hit the market is the sachet bug.

Nirma enters and changes the focus to Value for Money in the 70s

Jyothy Laboratories, Ghari Detergent and Anchor toothpaste giving the nation-wide brands a run for their money.

Household Care

Branded and Packaged Food and Beverages

Spirits and Tobacco

TRENDS AND TECHNOLOGY

Self Service Equals Labour Saving

Integrating Brick & Mortar and Online Stores

Quasi Personalized advertisement

TOP 10 IN INDIA
Top 10 in India
600 536 500

400

300 Profit(in crores) 137 121 91 100 84 77 70 62 56 34

200

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 Established And Strong Brand Market Penetration

Excellent R&D Department. Developing Market. Gillete, Old Spice Acquisition.

Intense Competition. Rising Prices Of Raw Material. Removal Of Import Restrictions Resulting In Increasing Competition.

Untouched rural market

4 Ps
PRODUCT
Hygiene Feminine Care & Health Health Care Care

Home Products

Fabric Care Hair Care Baby Care Gillette Shaving Duracell Oral B

Gillette

Other

Olay Old Spice Camay

PRICE: It varies according to product.

PLACE
Through 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

LIQUIDITY RATIO

FINANCIAL RATIO OF P&G

PROFITABILITY RATIO

GEARING RATIO

SHAREHOLDER RATIO

LIQUIDITY RATIO

July 2010 Current ratio Quick ratio 1.17 0.98

July 2009 1.4 1.13

July 2008 1.01 0.79

CURRENT RATIO=CURRENT ASSET/CURRENT LIABILITY QUICK RATIO = (CURRENT ASSET-INVENTORY)/CURRENT LIABITY

Chart liquidity ratio

PROFITABILITY RATIO July 2010 ASSET TURN OVER Fixed asset turnover NET PROFIT RATIO EBIT EBITDA 1.71 3.94 19% 25.53 25.54 July 2009 1.76 3.65 23% 29.91 26.95 July 2008 1.8 3.57 20% 27.58 25.57

ASSET TURN OVER = SALES/TOTAL ASSET FIXED ASSET TURN OVER= SALES/FIXED ASSET NET PROFIT RATIO= NETPROFIT/SALES

GEARING RATIO

July 2010 Debt equity ratio 0

July 2009 0 0

July 2008 0 0

Intrest 0 coverage ratio

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

SHAREHOLDER RATIO

July 2010 EPS PE RATIO 40.15 40.15

2009 55.10

July 2008 40.48

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

SHAREHOLDER RETURN ANALYSIS

NAME COMPANY
P&G HYGIENE AND HEALTHCARE

OF PRICE

EPS

P/E RATIO

1 yr return %

2223.25 130.3 240.5 106.7

55.38 3.93 13.9 2.54

40.15 33.14 17.31 42

53.2 43.27 28.37 53.14

MARICO NIRMA DABUR


60 50 40 30 20 10 0

P&G hygiene and healthcare Marico Nirma Dabur 1 yr return %

HR POLICIES

Personal Behavior at Workplace

Child Labor and Worker Exploitation Policy

Wage and Hour Practices

Safety & Health Policy

Environmental Quality Policy

Attracting Talent:

Motivating and Retaining Talent:

CAREER OPPORTUNITIES
MarketingAssistant Brand Manager Finance & AccountingFinancial Analyst Customer Business Development- Key Account Manager

Human ResourcesAssociate Manager HR

Information TechnologyAssociate Manager

Consumer Market KnowledgeAssociate Manager

Product SupplyAssociate Manager

CSR INITIATIVE
Project Shiksha II: Educating Underprivileged Children Rebuilding Lives for Earthquake victims in Gujrat(2001/2002) Project Poshan: Fighting Malnutrition in India (2000) Project Open Minds: Educating Indias Working Youth (1999) Project Drishti: The First-ever Sight Restoration Programme in India (1999) Project Peace: Environment Education Programme

AWARDS

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