Post on 06-Mar-2015
transcript
PROCTER & GAMBLE
Group MBA-1 [C3]Faculty Mentor : Prof. Deepa
PillaiStudent Mentor : Rohan Totala
INTRODUCTION TO FMCG SECTOR
FMCG EVOLUTION
1950’s-80’s ± Low Investment in the sector
Low purchasing power
Govt. emphasis on small scale sector
HLL and other company’s urbane
focus
Post liberalization Entry of MNCs
Focus shifted to getting to
rural consumer
first
Others, like Nestle,
remained with the urban population
Latest fad to hit the market is the ‘sachet’
bug.
Mushrooming of regional brands Nirma enters and changes the focus to Value for Money in the 70’s
Jyothy Laboratories, Ghari Detergent and ‘Anchor’ toothpaste
giving the nation-wide brands a run for their
money.
Industry Segments Household Care Branded and Packaged Food and Beverages Spirits and Tobacco
TRENDS AND TECHNOLOGY
Self Service Equals Labour Saving
Quasi Personaliz
ed advertise
ment
Integrating Brick &
Mortar and Online Stores
TOP 10 IN INDIA
HULIT
C
NESTL
E
DABUR
PIDILI
TE
COLGATE
PLAMOLIV
EGCPL
BRITANNIA
MARICO
P&G
0
100
200
300
400
500
600 536
137 12191 84 77 70 62 56
34
Top 10 in India
Profit(in crores)
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 Establishe
d And Strong Brand
Market Penetratio
n
Untouched rural
market
Excellent R&D
Department.
Developing Market.
Gillete, Old Spice
Acquisition.
Intense Competitio
n.
Rising Prices Of
Raw Material.
Removal Of Import
Restrictions Resulting
In Increasing Competitio
n.
4 P’s
Hygiene &
Health Care
• Feminine Care
• Health Care
Home Produ
cts
• Fabric Care
• Hair Care
• Baby Care
Gillette
• Gillette Shaving
• Duracell
• Oral B
Other
• Olay• Old
Spice• Camay
PRODUCT
PRICE: It varies according to product.
PLACEThrough 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
FINANCIAL RATIO OF
P&G
LIQUIDITY RATIO
PROFITABILITY RATIO
GEARING RATIO
SHAREHOLDER RATIO
July 2010 July 2009 July 2008
Current ratio 1.17 1.4 1.01
Quick ratio 0.98 1.13 0.79
LIQUIDITY RATIO
CURRENT RATIO=CURRENT ASSET/CURRENT LIABILITYQUICK RATIO = (CURRENT ASSET-INVENTORY)/CURRENT LIABITY
Chart liquidity ratio
July 2010 July 2009 July 2008
ASSET TURN OVER 1.71 1.76 1.8
Fixed asset turnover
3.94 3.65 3.57
NET PROFIT RATIO 19% 23% 20%
EBIT 25.53 29.91 27.58
EBITDA 25.54 26.95 25.57
PROFITABILITY RATIO
ASSET TURN OVER = SALES/TOTAL ASSETFIXED ASSET TURN OVER= SALES/FIXED ASSETNET PROFIT RATIO= NETPROFIT/SALES
July 2010 July 2009 July 2008
Debt equity ratio
0 0 0
Intrest coverage ratio
0 0 0
GEARING RATIO
DEBT EQUITY RATIO = TOTAL BORROWING/SHARE HOLDER FUNDAs there is no borrowing the debt equity ratio and interest coverage ratio is 0
July 2010 2009 July 2008
EPS 40.15 55.10 40.48
PE RATIO 40.15
SHAREHOLDER RATIO
Eps=(pat-preference Dividend)/No Of Share Holders
NAME OF COMPANY
PRICE EPS P/E RATIO 1 yr return %
P&G HYGIENE AND HEALTHCARE
2223.25 55.38 40.15 53.2
MARICO 130.3 3.93 33.14 43.27
NIRMA 240.5 13.9 17.31 28.37
DABUR 106.7 2.54 42 53.14
SHAREHOLDER RETURN ANALYSIS
0
10
20
30
40
50
60
1 yr return %
P&G hygieneand healthcare
Marico
Nirma
Dabur
HR POLICIES
Personal
Behavior at
Workplace
Child Labor and
Worker
Exploitatio
n Policy
Wage and Hour Practi
ces
Safety &
Health
Policy
Environmental
Quality
Policy
Attracting Talen
t:
Motivating and
Retaining Talen
t:
CAREER OPPORTUNITIES
Marketing-Assistant Brand
Manager
Finance & Accounting-
Financial Analyst
Customer Business
Development- Key Account Manager
Human Resources-
Associate Manager HR
Information Technology-
Associate Manager
Consumer Market
Knowledge-Associate Manager
Product Supply- Associate Manager
CSR INITIATIVE
P
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II:
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Rebuilding Lives for Earthquake victims in Gujrat(2001/2002)
P
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e
c
t
P
o
s
h
a
n
:
F
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ti
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M
a
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triti
o
n
i
n
I
n
d
i
a
(
2
0
0
0
)
Project Open Minds: Educating India’s Working Youth (1999)
Project Drishti: The First-ever Sight Restoration Programme in India (1999)
Project Peace: Environment Education Programme
AWARDS
P&G Wins the 7th Annual
International Business Awards
with its Live, Learn and Thrive
Corporate Cause Program in
Asia(July 13, 2010 )
Awarded Stevie Winner for CSR Program of the
Year 2010 in Asia ((Subcontinent, Australia and New Zealand)
Awarded Stevie Distinguished
Honoree for CSR Program of the Year 2010 in Asia (China,
Japan and Korea)
Proctor and Gamble Asia Pte Ltd have been awarded the 2010 Asian
Human Capital Award. in Singapore
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