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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

My company is subsidiary company under the conglomerate- PROCTER AND GAMBLE LTD.

History

William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England

and Ireland, respectively, who had settled earlier in Cincinnati, who met as they married sisters,

Olivia and Elizabeth Norris formed the company initially. 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 born.

In 1858-1859, sales reached $1 million. By this point, approximately 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.

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"

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

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. Procter & Gamble maintained a strong link to the North

East of England after this acquisition. 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 paper products. Once again focusing on laundry, Procter & Gamble began making

"Downy" fabric softener in 1960 and "Bounce" fabric softener sheets in 1972. One of the most

revolutionary products to come out on the market was the company's "Pampers", first test-

marketed in 1961. 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 land filling.

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, and the Iams Company, among others. In 1994, the company made

headlines for big losses resulting from leveraged 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, Procter & Gamble 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 that during its development stages is known to have caused anal leakage and

gastrointestinal difficulties in humans.

Procter & Gamble has dramatically expanded throughout its history, but its headquarters still

remains in Cincinnati.

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

In January 2005 P&G announced an 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. It also divested Gillette's oral-care toothpaste line, Rembrandt. The deodorant

 brands Right Guard, Soft & Dri, and Dry Idea were sold to Dial Corporation. The companies

officially merged on October 1, 2005. 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 thelikelihood of one of their products cannibalizing the sales of another.

On August 24, 2009, the Irish-based pharmaceutical company Warner Chilcott announced they

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

HISTORY OF GLOBAL SOLUTIONS

It is an Indian based company .In 1978, GLOBAL SOLUTIONS was started as

detergent company. It was into the manufacturing of soaps and detergents. After 

the 1990¶s we stepped into the manufacturing of beauty care products like fairness

creams, face powders etc.

In 1991, after globalization we became a subsidiary of Procter and Gamble and

moved in to the manufacturing of health care products and grooming products.

After 2000 we ventured into the food and beverage industry. The company has

grown really big with time not only in India but globally too.

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

Operations

Effective July 1, 2007, the company's operations are categorized into three "Global Business

Units" with each Global Business Unit divided into "Business Segments" according to the

company's March 2009 earnings release.

y  Beauty Care

o  Beauty segment

o  Grooming segment

y  Household Care

o  Baby Care and Family Care segment

o  Fabric Care and Home Care segment

y  Health and Well-Being

o  Health Care segment

o  Snacks, Coffee, and Pet Care segment

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

Procter & Gamble headquarters in Downtown Cincinnati, Ohio

Global Solutions headquarters in North Bangalore, Karnataka

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

Puffed Puffs

After the catastrophic disaster that has occurred and half the world¶s population is wiped off.

There is extreme devastation and shortage of all basic necessities in the world. There will

shortage of food, clothing, and shelter. There might be a threat of an epidemic, during this time

nutritious for survival is important. The most important necessity is food during this time since it

is very hard to come by. We have come up with an interesting product with a long shelf life that

is tasty and more importantly 'ready to eat' right out of the packet without cooking\boiling

it.There are around 6 units in each packet

Our product is a snack made out of dough with no filling inside. It is a plain snack made out of 

flour, butter, baking soda and salt. We have one with dry nuts inside the dough too. The snack is

filling, appetizing and economical.

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

MARKET ANALYSIS

FOOD PROCESSING INDUSTRY

Strengths

y  Abundant availability of raw material

y  Priority sector status for agro-processing given by the central Government

y  Vast network of manufacturing facilities all over the country

y  Vast domestic market

Weaknesses 

y  Low availability of adequate infrastructural facilities

y  Lack of adequate quality control and testing methods as per international standards

y  Inefficient supply chain due to a large number of intermediaries

y  High requirement of working capital.

y  Inadequately developed linkages between R&D labs and industry.

y  Seasonality of raw material

Opportunities 

y  Large crop and material base offering a vast potential for agro processing activities

y  Setting of SEZ/AEZ and food parks for providing added incentive to develop Greenfield

 projects

y  Rising income levels and changing consumption patterns

y  Favorable demographic profile and changing lifestyles

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

TARGET MARKET

  Income groups 

  Lower middle class 

  Middle class 

  Upper middle class

  Lower class 

PRICING STRATEGY

  Brand value and experience of market

  Mid-premium strategy

  Range

PLACE AND DISTRIBUTION

  Geographical area

  Localized area

  Distribution channels

POSITIONING

USP:  healthy, tasty, economical, long shelf life

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

MARKETING STRATEGY

TELIVISION

   Network channels

  Repetition of the ad

PRINT

  Mediums- newspaper, magazines

  Repetition of the ad

POINT OF PURCHASE

  Free samples

  Word of mouth

 Our sales persons will go from door to door advertising our products

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

Finances

Investments

  Pre ± existing funds- 200 crores in the current account

  Loans raised through the mortgage of assets in the STATE BANK OF INDIA- 100 crores

In normal circumstances if this product was launched the MR P would

have been around Rs. 50 but since the disaster has struck and there is a

shortage we will have minimum profit margin of 3 Rs and the MR P would

be Rs. 35 while the cost of producing the product will be Rs.32.

BREAK EVEN POINT

We plan to break even in 4 years.

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE

Contents

  History

  Introduction to the product

  Market analysis

  Promotion, marketing strategy

  Finance

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GLOBAL SOLUTIONS

PROCTER AND GAMBLE