PPM IT assignmnent 2 16030141080

Procter & Gamble
2016-18
PPM IT -Assignment 2
India Based MNC
By Neethu Sethu Nair

Touching lives, improving life Page 1
Procter & Gamble
INTRODUCTION
Procter & Gamble Co., also known as P&G, is an American multinational consumer
goods company headquartered in downtown Cincinnati, Ohio, United States, founded by
William Procter and James Gamble, both from the United Kingdom.
Its products include cleaning agents and personal care products. Prior to the sale
of Pringles to the Kellogg Company, its product line also included foods and beverages.
In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was
streamlining the company, dropping around 100 brands and concentrating on the remaining
65 brands, which produced 95% of the company's profits. A.G. Lafley, the company's
chairman, president, and CEO until October 31, 2015, said the future P&G would be "a
much simpler, much less complex company of leading brands that's easier to manage and
operate".
David Taylor became P&G CEO and President effective November 1, 2015.
HISTORY
Origins
Candlemaker William Procter and soapmaker James Gamble, both born in the United
Kingdom of Great Britain and Ireland, emigrated from England and Ireland, respectively.
They settled in Cincinnati initially and met when they married sisters, Olivia and Elizabeth
Norris. 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 created.
In 1858–1859, sales reached $1 million. By that point, about 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"
International expansion
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. After this acquisition, Procter &
Gamble had their UK Headquarters at 'Hedley House' in Newcastle upon Tyne, until quite
recently. 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 tissue paper products. Once again focusing on laundry, Procter & Gamble
began making Downy fabric softener in 1960 and Bounce fabric softener sheets in 1972.[7]
One of the most revolutionary products to come out on the market was the company's
disposable Pampers diaper, first test-marketed in 1961, the same year Procter & Gamble
came out with Head & Shoulders. 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 landfilling.

Further developments
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, the Iams Company, and Pantene, among others. In 1994,
the company made headlines for big losses resulting from levered 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, P&G 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.
In January 2005, P&G announced the 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, and
Gillette's Rembrandt toothpaste line to Johnson & Johnson. The deodorant brands Right
Guard, Soft and Dri, and Dry Idea were sold to Dial Corporation.
The companies officially merged on October 1, 2005.Liquid Paper and Gillette's stationery
division, Paper Mate, were sold to Newell Rubbermaid. 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 the likelihood of one of their products cannibalizing the sales of another.
On August 25, 2009, the Ireland-based pharmaceutical company Warner
Chilcott announced they had bought P&G's prescription-drug business for $3.1 billion.
P&G exited the food business in 2012 when it sold its Pringles snack food business
to Kellogg's for $2.75 billion after the $2.35 billion deal with former suitor Diamond
Foods fell short. The company had previously sold Jif peanut butter and Folgers coffee in
separate transactions to Smucker's.

In April 2014, the company sold its Iams pet food business in all markets excluding Europe
to Mars, Inc. for $2.9 billion. It sold the European Iams business to Spectrum Brands in
December 2014.
CORE STRENGTHS OF PROCTER & GAMBLE

Consumer Understanding
No company in the world has invested more in market research than P&G. We interact with
more than five million consumers each year in nearly 100 countries. We conduct over
15,000 research studies every year, and invest more than $350 million annually in
consumer understanding.
The insights we gain help us identify opportunities for innovation and better serve and
communicate with our consumers.
Innovation
P&G is widely recognized as the industry‘s global innovation leader. Nearly all organic sales
growth over the past decade has come from new brands or improved products. We
collaborate with a global network of research partners, and more than half of all product
innovation coming from P&G today includes at least one major component from an external
partner.
Their contributions have consistently helped us earn honors from the SymphonyIRI New
Product Pacesetters Report—the annual list of the biggest innovations in our industry.
Over the past 16 years, P&G has had 132 products on the top 25 Pacesetters list—more
than our six largest competitors combined. P&G earned 5th place among Fortune‘s 2011 list
of the World‘s Most Admired Companies. And as of April 2011, P&G has won 22 ―Product of
the Year‖ recognitions, as voted on by consumers in the US, UK, France, Holland, Italy,
Spain, and South Africa.
Brand-Building
P&G is the brand-building leader of our industry. We‘ve built the strongest portfolio of
brands in the industry with 50 leadership brands that are among some of the world‘s best-
known household names–and which together make up 90% of P&G‘s sales and more than
90% of profits. Twenty-five of these brands each generate more than $1 billion dollars in
annual sales.

Go-to-Market Capabilities
We‘ve established industry-leading go-to-market capabilities. P&G is consistently ranked
by leading retailers in industry surveys as a preferred supplier. We‘re also frequently
ranked as the industry leader in a wide range of capabilities, including clearest company
strategy, brands most important to retailers, strong business fundamentals and innovative
marketing programs.
Scale
P&G is creating scale advantage by integrating across our enterprise, consistently acting as
one Company across our businesses and markets. By harnessing the strength of our brands
and categories as one Company, we can better serve more consumers around the globe.
With all of our brands, businesses, and people working in unison, we can create scale
advantages by allocating resources more strategically and efficiently than any individual
business can do on its own.
This combination is greater than the sum of its parts—and we are focused on maximizing
its potential.

STRUCTURE OF BUSINESS
FUNCTIONS IN U.S.A
 SALES
Amanda Beatty
Senior Account Executive at Procter & Gamble
Current 1. Procter & Gamble
Previous
1. Procter & Gamble
Education
1. Miami University
Experience
Senior Category Manager
Procter & Gamble
August 2015 – Present (1 year 1 month)Fayetteville, Arkansas
Account Executive
Procter & Gamble
January 2014 – August 2015 (1 year 8 months)Cincinnati, Ohio

 INFORMATION TECHNOLOGY
Amruta Jonnalagadda
IT Project Manager, Business Process Transformation
Leader at Procter & Gamble Cincinnati Area, KY
Consumer Goods
Previous 1. Procter & Gamble,
2. McCombs School of Business,
3. CRISIL
Education1. University of Bath
Experience
IT Innovation & Systems Analyst, Global Business Services
Procter & Gamble
June 2011 – Present (5 years 3 months)Cincinnati Area, KY
Cross functional IT Consultant
IDS Intern
Procter & Gamble
June 2010 – August 2010 (3 months)
Cheryl Hall
Customer Analytics and Big Data at Procter & Gamble
Seattle, Washington Information Technology and Services
2. Alfa Insurance,
3. Launching Entrepreneurs Across Rural Networks
Education1. University of Alabama

Arka Chaudhuri
IT Manager at Procter & Gamble
Cincinnati Area, KY Information Technology and
Services
Previous 1. Procter & Gamble
Education1. Penn State University

 FINANCE AND ACCOUNTING
Famatta Mensah
Retail Finance Manager at Procter & Gamble
Cincinnati, Ohio
Consumer Goods
Allison Kirkby
Chief Executive Officer at Tele2 AB
Stockholm, Sweden Telecommunications
Current 1. Tele2,
2. Reach For Change,
3. Greggs PLC
Previous 1. Tele2,
2. In Kind Direct,
3. 21st Century Fox
Education1. The Chartered Institute of Management
Accountants
Current Procter & Gamble
Previous Procter & Gamble
Education University of South Carolina-Columbia

 HUMAN RESOURCES
Janet Nelson
Senior HR Manager, North America Baby Care and
North America Feminine Care at Procter & Gamble
Cincinnati Area, KY Consumer Goods
2. First Hospital Corporation,
3. Contact Concepts
Education1. Vanderbilt University
 BRAND MANAGEMENT/MARKETING
Maddie Bell
Brand Manager - Walmart Customer Team at Procter &
Gamble
Fayetteville, Arkansas Marketing and Advertising
2. Duke Student Broadcasting,
3. Hart Leadership Program: Entrepreneurial
Leadership Initiative
Education1. Duke University

PROCTER & GAMBLE IN INDIA
P&G is one of the largest and amongst the fastest growing consumer goods
companies in India
Established in 1964, P&G India now serves over 650 million consumers across India. Its
presence pans across the Beauty & Grooming segment, the Household Care segment as well
as the Health & Well Being segment, with trusted brands that are household names across
India.
These include Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-
B, Head & Shoulders and Wella. Superior product propositions and technological
innovations have enabled P&G to achieve market leadership in a majority of categories it is
present in.
P&G India is committed to sustainable growth in India, and is currently invested in the
country via its six plants and over nine contract manufacturing sites, as well as through the
26,000 jobs it creates directly and indirectly. Our sustainability efforts focus on
Environmental Protection as well as Social Responsibility to help develop the communities
we operate in.
P&G operates under three entities in India - two listed entities ―Procter & Gamble Hygiene
and Health Care Limited‖ and ‗Gillette India Limited‘, as well as one 100% subsidiary of the
parent company in the U.S. called ‗Procter & Gamble Home Products Private Limited‘.

Nikhil Ramesh
Country Marketing Manager - Procter & Gamble
Mumbai, Maharashtra, India
Consumer Goods
Current Procter & Gamble
Previous Procter & Gamble
Education Indian Institute of Management, Bangalore
Experience
Country Marketing Manager - P&G India Beauty Care
Procter & Gamble
September 2012 – Present (4 years)Mumbai Area, India
Country Marketing Manager for P&G India Beauty Care (Skin & Body Care)

 FINANCE AND MARKETING
Karthik Natarajan
CFO, Finance Director - P&G India Mumbai,
Maharashtra, India Consumer Goods
Education1. Institute of Chartered Accountants of
India
 HUMAN RESOURCES
Sonali Roychowdhury
HR Director - India/Middle-east/ Africa Distributor Operations, and Indian Sub-
continent
Mumbai Area, India Consumer Goods
Current 1. Procter and Gamble
Previous 1. Procter and Gamble India
Education1. XLRI Jamshedpur

 BRAND MANAGEMENT/MARKETING
Chandan Pansari
Brand Manager, Oral Care, India at Procter & Gamble
Mumbai Area, India Marketing and Advertising
2. Google
Education1. Mudra Institute of Communicatons,
Ahmedabad

THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
Agile Pursuits Franchising, Inc. [Ohio]
Agile Pursuits, Inc. [Ohio]
An-Pro Company [Ohio]
Arbora & Ausonia, S.L. [Spain]
Arbora, S.A. [Spain]
Baryon, S. de R.L. de C.V. [Mexico]
Becruz, S.A. de C.V. [Mexico]
Braun (Shanghai) Co., Ltd. [China]
Braun (Shanghai) International Trading Co., Ltd. [China]
Braun GmbH [Germany]
Braun Oral-B Ireland Limited [Ireland]
Braun-Gillette Immobilien GmbH & Co. KG [Germany]
CAMADA Grundstücks-GmbH & Co. oHG [Germany] (*)
Capella OOO [Russia]
Celtic Insurance Company, Inc. [Vermont]
Chemo Laboratories Manufacturing Sdn. Bhd. [Malaysia]
China Battery Limited [Hong Kong]
Clairol Limited [U.K.]
Compania Giva, S.A. [Delaware]
Compania Procter & Gamble Mexico, S. de R.L. de C.V. [Mexico]
Consumer Studies, Inc. [Massachusetts]
Corporativo Procter & Gamble, S. de R.L. de C.V. [Mexico]
Corpydes S.A. de C.V. [Mexico]
Cosmetic Products Pty. Ltd. [Australia]
Cosmopolitan Cosmetics China Ltd. [Hong Kong] (*)
Crest Toothpaste Inc. [Canada]
Decun, S. de R.L. de C.V. [Mexico]
Detergent Products A.G. [Switzerland] (*)
Duracell (1993) Ltd. [U.K.]
Duracell (China) Ltd. [China]
Duracell Batteries B.V.B.A. [Belgium]
Duracell Batteries Ltd. [U.K.]
And many more etc..

CAPTIVE OF PROCTER AND GAMBLE
Captive facility - In the captive center model, the business sets up its own
subsidiary offshore so that all assets and staff are owned by the client business.
The client then sets up its own operations through hiring local staff and leveraging
expatriate staff.
This model has the advantage of the client retaining ownership and operational
control. Captive centers will best serve clients that want to migrate core business
processes offshore or technology companies that want to establish IT
development, support and maintenance in a multi-shore structure.
Examples of successful captive operations include GE, Amex, Intel, SAP, JP
Morgan Chase, Standard Chartered Bank in India and P&G and Chevron Texaco.
WHY CAPTIVES….????
The process of choosing a specific type of global ownership model depends upon an
analysis of a company‘s strategic requirements, decision influencers and key
benefits afforded. In this section, we outline a situation where the captive model
is the best choice. Figure 2 highlights the major requirements, decision influencers
and key benefits that support the decision to select a captive ownership model.

THANK YOU

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