REPORT

ON

SUBMITTED BY:
-DIXIT JIYANI

ROLL NO.:
- 20
-

DECLARATION

i DIXIT JIYANI bearing roll no. 20 class Khyati school of business administration, Ahmedabad
hereby declare that the project report entitled PROCTOR AND GAMBLE is an original work
and the same has not been submitted any other institute for the award of any other bba. The
suggestions as approved by the faculty were duly incorporated.

Countersigned signature of student

Signature of faculty guide
TABLE OF CONTENTS:

SNO. TOPIC NAME PAGE NO.

1 Company profile
2 finance
3 Social responsibility and future plan
4
COMPANY PROFILE

• NAME : PROCTER AND GAMBLE

• RESISTERED: Cincinnati, Ohio, united states

•
HISTORY:
candlemaker William Procter, born in England, and soap maker James gamble, born in
Ireland, both emigrated to us from the united Kingdome. They settled in Cincinnati,
Ohio, initially and met when they married sister Olivia and Elizabeth Norris, alexander
Norris, their father-in-law, persuaded them to become business partners, and in 1837
proctor and gamble was created.
In 1858-1859, sales reached $1 million. By that point, above 80 employees worked for
Procter & gamble. During the American civil war, the company won contract to supply the union
army with soap and candles. In addition to the increased profits experienced during the war, the
military contract introduce soldier from all over the country to Procter & gamble's product.

The company began to build factories in other location 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 product as well, and in 1911 began producing Crisco, a shortening
made of vegetable oils rather than animal fats.

VISION : To be the best consumer product and services company in the word
 • MISSION :
To provide branded products and services of superior quality and
values that improve the lives of the world's consumers, now and for generation to come.

• PRODUCTS : cleaning agents, skin care, personal care

• ORGANISATION:

The multidivisional structure of p&g consists of operating

division, each rep-resenting a separate business or profit center in which the top corporate
officers' delegates responsibilities for day-to-day operations and business-unit strategy to
division managers.

• LOCATION : united states

• AWARDS :

best company compensation, best workplace culture awards of 2021, best company
for diversity 2021, best company for women 2021, etc.
FINANCE

TURNOVE:

Procter & Gamble annual revenue for 2021 was $76.118B, a 7.28%
increase from 2020.
Procter & Gamble annual revenue for 2020 was $70.95B, a 4.83%
increase from 2019.
Procter & Gamble annual revenue for 2019 was $67.684B, a 1.27%
increase from 2018
BALANCE SHEET:
SOCIAL RESPONSIBILITY AND FUTURE PLANS

• There’s a world of good in here

We want to make every day better for people in the communities we
operate in. We focus where we can uniquely bring value and where our
brands and people can make the biggest difference.
In India, we improve access to holistic education for underprivileged
children through our flagship CSR program ‘P&G Shiksha’. We also
focus on providing comfort to families in times of a disaster through
donation of health and hygiene products, monetary contributions and
donation of P&G Purifier of Water.

• GENDER EQUALITY
Woman soccer player
Gender equality Icon
We See Equal
Many of our products are made uniquely for women and men. We have
deep insights into their lives, their challenges, and their aspirations. So
when it comes to the gender bias they face, it’s up to us to help change
the narrative.
In 2017, we launched this gender equality campaign to show the world
as we see it—equal. It’s been viewed millions of times in more than 180
countries.
In 2005, P&G launched its signature CSR program ‘P&G Shiksha’ with
an aim to provide children from underprivileged backgrounds access to
holistic education.

We focus our efforts in three main areas - improving education

infrastructure, empowering marginalized girls through education and
improving learning outcomes.

Over the years, in partnership with NGO’s we have built and supported
more than 2100 schools across India that will impact more than 1.7
million children.
PRODUCTS

BRANDS
Our brands icon
Iconic brands you can trust in your home
P&G products have made a name for themselves by combining “what’s
needed” with “what’s possible”—making laundry rooms, living rooms,
bedrooms, kitchens, nurseries, and bathrooms a little more enjoyable for
over 181 years.

Baby Care

Pampers
Nappies, pants and baby wipes
 Fabric Care

Ariel Tide
Laundry products Laundry products

Feminine Care

Whisper
Feminine care pads
 Grooming

Gillette
Razor, blades and men's grooming

Haire Care

Head & Shoulders Herbal Essences Pantene

World leaders in hair care hair care
Dandruff and scalp care
 Home Care

Ambi pur
Oduor eliminators

Oral Care

Oral-B
Toothbrushes, toothpaste, oral care
 Personal Health Care

Vicks
Cough, cold and flu relief

Skin and Personal Care

Olay Old Spice

Skin care pre-and-post shave,
body wash and deodorants
Marketing staff and structure

The simple structure is a structure in which the owner-manager makes all major decisions and
monitors all activities while the staff serves as an extension of the manager’s supervisory
authority.

Functional Structure
The functional structure is a structure consisting of a chief executive officer and a limited
corporate staff, with functional line managers in dominant organizational areas, such as
production, accounting, marketing, R&D, engineering, and human resources.

Multidivisional structure
The multidivisional (M-form) structure consists of operating divisions, each representing a
separate business or profit center in which the top corporate officer delegates responsibilities for
day-to-day operations and business-unit strategy to division managers.
MARKET SEGMENTATION, TARGETING AND POSITIONING

Like any other FMCG company, Procter & Gamble uses a mix of demographic, geographic and
psychographic segmentation variables.
Differentiation targeting strategy is used by P & G to make the specified product available to the
particular customer.
Product based and value-based positioning is used by P & G to create the right set of imagery
stimulus in the mind of the consumer.

Tagline- “Touching lives, improving life”

Market consists of numerous buyers and buyers differ in their wants, resources, locations, buying
attitudes and buying practices. Through the market segmentation P&G divides its large,
heterogeneous markets into smaller segments that can be reached more efficiently and effective
with products and services that match their unique needs. This section focuses on P&G’s three
important segmentation strategies.

• Consumer Market Segmentation

• Business Market Segmentation
• International Market Segmentation
• Consumer Market Segmentation:

There is no single way to segment a consumer market. P&G marketers have to try different
segmentation variables to find the best way to view the market structure. Major variables used by
P&G in segmenting its consumer markets can be illustrated as below.

1. Demographic Segmentation: P&G divides its market into groups based on variables
such as: -

a. Age: P&G produces its products on the basis of age such as ‘Crest’ a kind of toothpaste for
kids with different flavors such as Kids Crest Cavity Protection Sparkle Fun. Another paste for
adult is Crest Nature’s expression pro-health.

b. Sex: For male ‘Boss’ fragrance for male. For female ‘Naomi Campbell’. Naomi Campbell is a
true star. She is famous worldwide for her strong personality, sensual beauty and glamorous
lifestyle.

NAOMI CAMPBELL perfumes capture her multi-dimensional character to create expressive,

feminine fragrances. Like Naomi Campbell, her fragrance and packaging design will surprise the
customers. The prestigious detail will attract the customers.
c. Family size: For large and extended family they produce ”96-tissiues Puffs Plus”. For small
family they produce ”60-tissiues Puffs Plus”.

d. Income: For affluent customer use” Gillette Fusion” with 5 blades. And for low income
leveled customer use” Mach3”.

e. Occupation: For a corporate executive use a low fragranced perfume on the other hand, a
model use high fragranced perfume.

2. Geographic segmentation: Being a multinational company operating almost worldwide

with a wide variety of products. P&G divides its market into different geographical units such as
nations, states, regions, countries, climate & density of population etc.

a. World region: Although a North American company P&G operates almost in all regions of
the world more or less. For example, it has manufacturing plant for its product “Head and
Shoulders” in Latin America, Asia, Australia and Europe. But there are certain regions where it
markets its products through having no manufacturing plant.

b. Climate: Based on climate condition P&G segments its market. For example, P&G
segments its market of coffee based on temperature of different regions of the world. It has
hugely concentrated its coffee markets such as “Millstone”, “Home coffee” in the cold and
Scandinavian countries.

c. Density of population: Based on density of population P&G is considering its market

segments. It has fewer marketing opportunity in African region with very small population rather
than in the Asian part, a huge markets of consumer products. Even it has no manufacturing plant
of certain products in Africa.
3. Psychographic Segmentation: By psychographic segmentation P&G divides its
consumers and buyers into different individual groups based on social class, life style, life cycle
and personality characteristics. But people in a same demographic group can have very different
psychographic makeup.

a) social class: Social class means the classification of the people who live in the society
such as: upper class, lower class and middle class. Here we see that, P&G segmented its products
according to social class.
For example, P&G has introduced the famous brand ‘Olay’ for skin care. Olay is about beauty,
inside and out. It’s about keeping in constant concert with a woman’s wants, her needs, her
aspirations. But more than anything, it’s about celebrating the unique beauty within every
woman, because loving the skin we’re in is the most beautiful feeling of all. With 8 product lines
offering a multitude of products, Olay embraces every woman’s skin and cares for it like no
other.
Like this it has also introduced ‘Braun’, Cover Girl, Camay etc. In the perspective of our
country, we can say that, these kinds of products are not for the lower-class people. Moreover, it
has some brands of fragrance which are only for those people who are affluent.

b) Lifestyle: People maintain different lifestyles. Some leads luxurious life, some lead casual
life, again some lead ordinary life. These distinct lifestyles play an important role in the market
segmentation of P&G.
P&G produces different shaving blade such as ‘Gillette Twin Blade’, ‘Gillette MP3 Power’, and
‘Gillette Fusion for different life styles. It also manufactures and markets “Febreze” an refresher
highly usable in air-conditioned room for people who lead a luxurious life.

c) Personality: P&G has used personality variables to segment market. For example, P&G
introduced a sort of decaffeinated coffee named ‘Millstone’ for the late nighters to retain the
energy during the whole night. And another flavor named ‘Folgers’ for normal users.
4. Behavioral segmentation: By behavioral segmentation P&G divides the buyers into
groups based on their knowledge, attitudes, uses, or responses to a product. The company
marketers believe that behavior variables are very crucial in segmenting markets.

a) Occasion segmentation: P&G generally produces those products which are used in our
daily life. Sometimes in some occasions it puts its concentration in some selected products. In
different types of occasions, it often provides offers like “buy one and get one” or “buy it and get
20% extra”.

b) Benefit segmentation: Benefit segmentation means dividing the market into groups
according to the different bents that consumers seek from the product. P&G has already found
that people want to get several benefits from a product class and here P&G has identified several
different laundry detergent segments.

Each segment seeks a unique combination of benefits, from cleaning and bleaching to economy,
fabric softening, fresh smell, strength or mildness or only a few. Here several brands of
detergents and laundry are positioned for different segments as follows: -Tide, Cheer, Downy,
Bounce.

c) Other behavioral segmentations

Usage rate: P&G segmented their market into light user, medium user, and heavy user.

User status: P&G has already segmented their products into groups of ex-users, potential users,
first users and regular users.
BRANDING EFFORTS

INNOVATION IS THE LIFEBLOOD OF OUR COMPANY

At P&G, innovation isn’t just about making our products the best; it’s about improving lives.
Thinking innovatively across every area of the business has the power to improve our world,
lend a helping hand or spark a movement. It can also lead to industry-changing ideas and
technology such as collaborative robots, motion sensors, Blockchain, 3D printing, augmented
reality, voice recognition, and new polymer developments.

We believe best ideas emerge from the creative connections that happen between our talented
employees. We encourage our multi-functional teams to work together to come up with new
ideas to address challenges we face. And we enable this through creative frameworks and
inspiring office spaces designed by specialized architects—because a creative and dynamic work
environment is key to bringing dynamic ideas to life.

BUILD TECHNOLOGY THAT DISRUPTS THE INDUSTRY

Our innovations build brands, shape markets and improve products. Our multi-skilled Gillette
team combined consumer insight, technical expertise and precision engineering to design,
develop and launch a technologically-advanced razor that swivels with the contours of the face to
deliver a closer and smoother shave—and a better consumer experience.

INNOVATE FROM END-TO-END

P&G teams work on exciting, technical projects from the beginning of their careers. This could
involve small developments or improvements. Or it could mean researching, designing, building,
testing, marketing, and launching a brand-new product. We work creatively and technically from
start to finish.
INNOVATE #LIKEAGIRL
Develop breakthrough marketing campaigns as a P&G brand builder. The #LIKEAGIRL
empowered girls worldwide and changed the way the term was used from a negative to a
positive.

SPARK SOLUTIONS THAT IMPACT THE WORLD

Our teams innovate everywhere, and each breakthrough we make improves people’s lives. We’re
committed to making the world a better place, and at P&G, you’ll be empowered to do that from
Day 1. Whether you work in a research lab, one of our smart, connected manufacturing facilities,
or somewhere else along the supply chain, you’ll see your impact in the real world, right away.

PRODUCT LIFE CYCLE (PLC)

P&G’s Product Life Cycle (PLC):

 • Weaknesses
An overview of the firm’s PLC will point to the fact that the company is currently in its maturity
stage. With a powerful introduction occurring in 1947 and the following gradual growth
occurring primarily in the 2000s, the firm has already established most of its brands in the global
market. Although the decline stage is yet to be expected, a closer look at the current PLC of P&G
will show that it has several problems.

On the one hand, the focus on the R&D aspect of the company’s function can be viewed as a
positive phenomenon. However, the lack of enthusiasm for the design and introduction of new
brands is a problem. On the one hand, the entrepreneurship no longer needs active promotion as
it has already established a strong presence in the target environment. On the other hand, the lack
of focus on the design of new products may cause the entrepreneurship to be surpassed by other
companies that have enough potential to become dominant in the target environment (P&G
names top suppliers, 2008).

• Product Design
The brand product that is bound to bring the company the popularity that it used to enjoy should
be created based on the idea of environmentalism and sustainability. Given the significance of
environmentalist ideas nowadays, target customers are bound to pay close attention to the new
product and the features that it includes. Therefore, P&G should market its environmental
awareness and the benefits that natural elements-based products can offer to buyers.

• Strategies
To make the position of the entrepreneurship in the target market stronger, the company leaders
should consider putting a stronger emphasis on the R&D process. Thus, new products that will
take the customers by storm again can be designed. Another idea that should be viewed as
essential in the global economy, the emphasis on the advertising and a strong promotion
campaign may be viewed as an option. Finally, it could be suggested that the firm should apply
the concept of sustainability and lean management to minimize waste and save a sufficient
amount of money on expanding into the global economy.

• Total Quality Management (TQM)

To improve P&G’s performance, one should consider the application of a TQM framework.
Particularly, the customer focus will have to be considered as the primary aspect that P&G
should pay attention to. Although the current customer communication issues cannot be viewed
as detrimental to the firm’s success, a better understanding of the new clients’ needs should be
promoted as the tool for increasing the profit margins of the entrepreneurship.

• Customer Focus
A more detailed analysis of the target customers will have to be carried out. For instance, an
elaborate customer segmentation should be viewed as an option. Apart from focusing on gender
and age, it will be necessary to target people of different cultures. Moreover, people of different
incomes will have to be considered. To be more exact, the line of luxurious products should be
introduced to the market along with its cheaper substitutes and the “golden mean” for people of
an average income.

• Planning
The planning process, in its turn, will have to include a more efficient time management
approach. Also, customer-focused values will have to be adopted to plan the company’s further
course of action.

• Process Management
The production process, as well as the rest of the actions carried out in the environment of the
company, will have to be supervised carefully, with regular reports concerning the efficacy of the
participants. As a result, a rapid increase in quality can be expected.
PRODUCT LINE AND MIX

Product Mix: -

A product mix is the set of all the products offered for sale by a company. The structure
of product mix has width, depth, length and consistency. or
Product mix can be defined as: -
“Product mix is defined as, the set of all product lines and items that a particular seller
offers for sale to buyers.”
The product mix is also known as product assortment. Or factors influencing change in
product mix

• Width: -
The width of the product mix refers to how many product lines the company carries.

For Example: -
Proctor & Gamble markets a fairly wide product mix consisting of many product lines including
food, household, cleaning, mechanical, cosmetics and personal care products

• Depth: -
The depth of the product mix refers to how many varieties are offered of each product in
the line.

For example: -
P&G Crest tooth paste comes in three sizes and two formulations (past, gel)
 • Length: -
The length of the product mix refers to the total number of items in its product mix.

For example:
P&G typically carries many brands within each line It sells eight laundry detergents, six
hand soaps, six shampoos, & four dish washing detergents.

• Consistency: -
The consistency of the product mix refers to how closely relate the various product lines
are in end-use, production requirements, distribution channels or in some other way.

For example: -
P&G product lines are consistent insofar as they are consumer products that go through
the same distribution channels. The lines are less consistent insofar they provide different
functions for buyers.
These four dimensions of the product mix provide the handles for defining the company’s
product strategy. The company can adopt product lines, thus widening its product mix.

Major Product-Mix Strategy: -

Manufacturers we several major strategies in managing their product mix.

1) Expansion of product mix: -

A firm may decide to expand its present mix by increase the number of lines or the depth
within the lines. Now lines may be related or unrelated to the present products. The company
may also increase the number of items in its product mix.
2) Contraction of product mix: -
Another product strategy is to thin out the product mix, either by eliminating entire line
or by simplifying the assortment with in a line. The shift from fat and long lines to thin and short
lines, is designed to eliminate low-profit products and to get more profit from fewer products.
There are many examples of product mix contraction, sometimes involving will known
firms. For example, Unilever, and English, Dutch firm decided to produce more than 1000
brands from its total set of about 1600. The company wants to concentrate its marketing
resources on the 400 or so remaining brands including Lipton teas, Lever soap that generate 90%
of annual revenues.

3) Alteration of existing product: -

In spite of developing a complete new product, management should take a fresh look at
the company’s existing products. Often, improving and established product can be more
profitable and less risky than developing a completely new one.
For material goods, especially, redesigning is often the key to products, renaissance
packaging has been a very popular area for product alteration, particularly in consumer products.

4) Positioning the product: -

Positioning of product in the market is a major determinant of company profits. A
product position is the image that the product projects in relation to competitive product and to
other products marketed by the same company.
Marketing executives can choose from a variety of positioning strategies. These strategies
can be grouped into following six categories:

1). positioning in relation to a competitor: -

Position is directly against the competition.
2). positioning by product attribute: -
The company associates its product with some product features.
3). positioning by price and quality: -
To position on high price, high quality or low-price, low-quality basis.
4). Positioning in relation to product use.
5). Positioning in relation to a target market: - (Market Segmentation)
6). Positioning in relation to product class: - (Associating the Product) a class of product
5) Trading up & trading down: -
As product strategies, trading up and trading down involves, essentially, an expansion of
the product line and a change in product positioning.
Trading up means adding a higher priced prestige product to a line in the hope of
increasing the sales of existing lower priced products. When a company going on a policy of
trading up, at least two ways are open with respect to promotional emphasis.

(1) The seller may continue to depends upon the older, lower-priced product for the bulk of the
sales volume and promote it heavily or
(2) The seller may gradually, promote the new product and expect it to share a major sale

• volume.
A company is said to be trading down when it adds a lower priced item to its line of prestige
products. The company wants to sale its products rapidly.

Product Line
A product line includes a group closely related products that are considered a unit
because of marketing, technical or end-use consideration.

Definition: -
A broad group of products intended for essentially similar uses and possessing reasonably
similar physical characteristics, constitutes a product line. Or
“A product line is defined as” A product line is a group of products that are closely related, either
because

(1) They function in a similar manner.

(2). Sold to the same customer groups
(3). Marketed through the same type of outlets,
(4). Fall within a given price ranges.
Clothing is an example of product line. But in a different context, say in a small specialty
shop, men’s furnishings (shirts, ties and under wears) and men’s ready-to-wear (suits, jackets,
topcoats and stocks) would each constitute a line.
There are product line managers for refrigerators, stoves and washing machines.
Product line decisions, management and responsibilities: -
Product line decisions are concerned with the combination of the individual products offered
within a given line. The product line manager supervises several product managers who are
responsible for the individual products and the line. Decisions about a product line are usually
incorporated into a marketing plan at the divisional level. Such a plan specifies changes in the
product lines and allocation to the products in each line. Generally, product line managers have
the following responsibilities;
1. Considering expansion of a given product line
2. Considering candidates for deletion from the product line
3. Evaluating the effects of the product addition and deletions on the profitability on the
other items in the line.
4. Allocating resources to individual products in the line