Presentation On P&G

Presented By: Usman Rehmani

Usman Rehmani

VISION STATEMENT

Be, and be recognized as, the best consumer products and services company in the world.
Usman Rehmani

MISSION STATEMENT
We will provide products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper. We will provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come.

RECOMMENDED VISION & MISSION

VISION P&Gs intent is to offer the highest quality consumer product goods at the least expensive price for the widest spectrum of customers in a convenient format. MISSION coca-cola will work with its suppliers and distributors to ensure that its products are recognized both in the market and on the supply side as contributory to a retail distributors bottom line.

VALUES

Integrity
Passion for Winning Leadership Trust Ownership

PRINCIPLES
We Are Strategically Focused in Our

Work. We Value Personal Mastery. We Seek to Be the Best. The Interests of the Company and the Individual Are Inseparable. We Are Externally Focused. Mutual Interdependency is a Way of Life

OBJECTIVES

To build existing core businesses into stronger global leaders. To grow leading brands in big countries, winning customers. To develop fast-growing, higher-margin with global leadership potential. To regain growth momentum rate and leadership in Western Europe. To drive growth in key developing markets.

COMPANY OVERVIEW & HISTORY

Procter and Gamble is actually the name of two persons William Procter and James Gamble immigrants from England & Ireland respectively. Procters business was candle making and Gambles business was soap making.

The partnership year 1837 was a difficult time to start the business although Cincinnati was a bustling market place; the nation was gripped by financial panic. Hundreds of banks were closing around the country.

In the 1850s despite rumors of an impending civil war in the US, they

built a new plant to sustain their

growing business.

In 1859 sales reached one million dollars. By this point only eight employees were working with Procter and Gamble, the company won contracts to supply the Union Army with soaps and candles.

In 1880s coca-colabegan to market a new product, an inexpensive soap that floats in water, the company called the soap Ivory.

By 1890, the fledgling partnership between the Procter and Gamble had grown into multimillion dollar corporation. In 1939, Television was introduced in USA and coca-cola was the only company that commercialized its product just after five months.

In 1980, as it approached its 150th anniversary, coca-cola was poised for a most dramatic period of growth in its history. In 1915 coca-cola started business outside USA in Canada. Company serves 106000 employees all over the world.

History Of coca-cola In Pakistan

coca-cola Pakistan, headquartered in Karachi,

commenced operations in Pakistan in 1991. In 1994 coca-cola acquired a soap-manufacturing facility Hub, Baluchistan. In 2004, a PUR facility was set up to produce P&Gs water purifying technology. Today, the Hub plant is equipped with state-of-the-art manufacturing technologies and quality assurance processes and systems, reflecting the company's values of safe, hygienic and ethical manufacturing practices.

DISTRIBUTION CHANNEL
coca-cola itself has no distribution channel rather they

were initially distributing its products through International Brands Limited (IBL). In the 1940s, Abudawood became the exclusive distributor of coca-cola(coca-cola) brands throughout Saudi Arabia. In 1956, Abudawood and coca-cola established a jointventure factory in Saudi Arabia (called Modern Industries Inc.). In the same year Abudawood started distribution of coca-cola products in Pakistan.

SOCIAL RESPONSIBILITY

Pampers Hospital Education Program

Safeguard School Education Program

SUSTAINABILITY AT coca-cola

FINANCIAL ANALYSIS

Balance Sheet 2010

During the previous 3 years P&Gs assets have

diminished by 10%.
While long term debt has been constant short term

debt has decreased by 48%.

coca-cola has an extremely low ratio of tangible assets

to intangible assets.

June 2008

June 2009

June 2010

Total Assets

143992.00

134833.00

128172.00

Total Liabilities
Total Equity Short Term Debt Long Term Debt Current Assets Intangible Assets

74498.00
69494.00 13084.00 23581.00 24515.00 98837.00

71734.00
63099.00 16320.00 20652.00 21905.00 93466.00

67057.00
61115.00 8472.00 21360.00 18782.00 90146.00

ANALYSIS OF THE EXTERNAL ENVIRONMENT

Porters Five Forces

Continued..
faces very strong buyers power because retailers like

Wal-Mart are able to negotiate for pricing with companies. limited supplier power because of the costs they incur when switching suppliers. low threat of new entrants because a huge capital amount is required. high threat of substitutes. high level of rivalry exists among existing firms.

PEST ANALYSIS

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SWOT ANALYSIS (Opportunities and Threats)

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Opportunities

Developing markets. Niche markets. New products. To invest in the segment for children. To introduce food and beverages for Pakistani market. Emerging consumer market (China& India). Manufacturing facilities in China. Selling through internet.

Threats
Uncertainty in pharmaceuticals business. Increase in prices of raw materials. Unilever is the biggest threat. Price competition around the world. Political disruption.

COMPETITORS

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CPM
coca-cola Weight KimberlyClark Johnson & Johnson

Critical Success Factors

Advertising Product Quality Price Competitiveness Management Financial Position Customer Loyalty Global Expansion Market Share

Rating Score Rating Score Rating Score

0.20 0.10 0.10 0.10 0.15 0.10 0.20 0.05 1.00

4 4 3 3 3 4 2 4

0.80 0.40 0.30 0.30 0.45 0.40 0.40 0.20 3.25

1 4 3 4 4 4 4 1

0.20 0.40 0.30 0.40 0.60 0.40 0.80 0.05 3.15

3 3 4 3 3 2 2 3

0.60 0.30 0.40 0.30 0.45 0.20 0.40 0.15 2.80

Total

EFE Matrix
Key External Factors Opportunities 1. Global markets are a significant growth market 1. Increased demand due to new health and beauty needs. 0.15 1 0.15 Weight Rating Weighted Score

0.05 0.05
0.14 0.10 0.10 0.05 0.05 0.10 0.20 1.00

4 1
4 3 3 3 2 4 1

0.20 0.05
0.60 0.30 0.30 0.15 0.10 0.40 0.20 2.45

1. Internet advertising growth.

1. coca-cola is a category killer. 1. Increasingly health conscious public. Threats 1. Economic downturn. 1. Increased competition from rivals. 1. Lack of product acceptance. 1. Poor media exposure for new products. 1. High core commodity prices affecting product cost. Total

ANALYSIS OF THE INTERNAL ENVIRONMENT

SWOT ANALYSIS (Strengths and Weaknesses)

Strengths
large scale operations. very strong brand name and leading market position. coca-cola has a huge customer base. innovations to sustain its customer base. Diversified product portfolio. Strong focus on research & development. Strong global presence (160countries).

Core Strengths
Coca-cola focuses on five core strengths required to win in the consumer products industry.

Weaknesses
less innovative than its major competitor Unilever. products have failed in certain geographic areas. For

example, Oil of Olay failed in Pakistan, Camay failed here as well. Dependent on Wal-Mart stores for majority of its revenue. Production facilities in 43 countries while operations in more than 160 countries.

IFE Matrix
Key Internal Factors Weight Rating Weighted Score 0.20 0.40 0.15 0.60 0.15 0.15 0.15 0.20 0.15 0.15 0.08 0.10 0.10 0.11 0.10

Internal Strengths
1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. Largest home consumer product goods manufacturer. Innovative products format. Increasing free cash flows. Career development program. Strong management team. Strong logistics supply chains. Discount pricing structures. Long-range planning. Reputation for quality. Outperforming financial ratios Many products are not personal care necessity. Little unified brand focus. Narrow margins. High operating costs. Uncertain joint marketing ventures. 0.05 0.10 0.05 0.15 0.05 0.05 0.05 0.05 0.05 0.05 0.04 0.05 0.05 0.11 0.10 4 4 3 4 3 3 3 4 3 3 2 2 2 1 1

Internal Weaknesses

TOWS MATRIX
S- Strengths
Innovative products. Professional management. Diverse product lineup. Plans for acquisitions.

W- Weaknesses
Lack of direct marketing. Lack of new media marketing channels. Dependence on few major product categories.

O- Opportunities

S-O Strategies

W-O Strategies
More focused marketing strategy. Liaison with good distributors to increase online sales. Utilize niche markets rather to depend upon few product categories. Develop good partnership with internet consumer product goods distributors to increase sales.

Expanding marketing strategies. Undifferentiated rival products. Consumer demand. Niche markets.

Develop new products to target niche markets. Utilize managerial competencies for aggressive marketing strategy to attain competitive advantage. Continue diversification to fulfill consumers demand.

T- Threats
Price competition. Regulations. Rival competitors.

S-T Strategies

W-T Strategies

Utilize buying volume to put pressure on competitors. Continue product diversification to offset increased chances of competitor entry.

SPACE Matrix
Financial Strength
The companys original capital ratio is 7.23 percent which is 1.23 percentage points over the generally required ratio of 6. P&Gs return on assets is negative 8.7 compared to industry average of positive 8.0. The companys net income is continually expanding. The companys revenue increased 14 percent.
Ratings 1.0 1.0 3.0 4.0 9.0

Industry Strength
Increasing market share provides geographic and product freedom. More competition in global markets. Kimberly-Clark provides a strong industry benchmark. High inflation rate in developing countries and political instability are big hurdles for international business growth. Merger and acquisitions are also difficult due to credit markets. coca-cola get more of its revenue fr0m US market. coca-cola focused on home consumer product goods for health and beauty. coca-cola is a recognized category killer. In addition of Kimberly-Clark, Johnson & Johnson is a trouble creating competitor.

Ratings 4.0 2.0 4.0 10.0 Ratings

Environmental Stability

-4.0 -4.0 -5.0 -13.0 Ratings

Competitive Advantage

-2.0 -5.0 -2.0 -9.0

Conclusion:
ES average is -13.0 3= -4.33 IS average is +10.0 3= +3.33 CA average is -9.0 3= -3.00 FS average is +9.0 4= +2.25 Directional vector coordinates: x-axis: -3.00 + (13.33) = 0.33 y-axis: -4.33 + (12.25) = -2.08

Outcome:
coca-colashould pursue Competitive Strategies.

QSPM Chart

QUANTITATIVE STRATEGIC PLANNING MATRIX

Key Factors Weight Strategic Alternatives Joint Ventures in Joint Ventures in Europe Asia AS TAS AS TAS 4 4 2 0.40 0.60 0.20 2 3 4 0.20 0.45 0.40 -

Opportunities
1. Europe is a potential growth market. 1. The US market continues to develop new product categories. 1. Free market economies increasing in Asia. 1. Demand for health & beauty products is increasing. 0.10 0.15 0.10 0.05

Threats
1. 1. 1. Competitor threats such as Kimberly-Clark. Economic contraction in its main US market. Lack of defining product to attract continued foot-traffic in the companys retail distributors. Environmental issues with some home consumer product goods products. Low value of US dollar abroad. 0.10 0.05 0.10 3 4 0.30 0.40 4 1 0.40 0.10

1. 1.

0.05 0.15

0.60

0.30

Strengths
1. Profits rose 1. Strong management team 1. New employee development programs. 0.10 0.10 0.10 4 4 0.40 0.40 2 2 0.20 0.20

1. Diversified product portfolio.

1. Performance driven management. 1. Capacity utilization increased from 60% to 80% for all manufacturing facilities.

0.05
0.05 0.15

4
3

0.20
0.45

3
4

0.15
0.60

Weaknesses
1. Johnson & Johnsons troubles could be contagious. 0.05 2 4 0.30 0.60 4 3 0.60 0.45 1. Restructuring costs could be significant if 0.05 the market requires. 1. International expansion suffers. 0.15 1. The company is slow in leveraging its 0.15 global operations due to current economic conditions. 1. Pre-tax profit margins are narrow. Sum of Total Attractiveness Score 0.05 1.0

5.30

4.65

INTERNAL-EXTERNAL (IE) MATRIX

BOSTON CONSULTANT GROUP MATRIX

CONCLUSION
coca-colais the worlds largest producer of household

and personal products by revenue with net sales of $83503 million with its products reaching 4 billion people worldwide. Being in more competitive position coca-cola must continue to scan the environment for possible threats, whether through acquisition or Greenfield investments. coca-cola must continue to innovate because economies of scales allow coca-cola to spend much more than rivals on research and development.

 coca-cola will also have to control its pricing and

reduce outside vendors.

coca-cola will want to continue its strong support and

funding of its world class research and development in order to continue to provide innovative products to touch the lives of customers worldwide.

RECOMMENDATIONS
coca-cola may have a series of strategies which can be

more attractive to the company. Such series of

alternatives may not result in an alternative internal rate of return (IRR) relative to the cost of the strategies. Hence, in such time of economic pressure it is recommended to do nothing and continue

business as usual and even avoid organic expansion

also.

 Another recommendation is to expand organically.

coca-cola has access to a greater number of developed

and developing markets.

The

company

has

also

product

co-branding

opportunities because of its size and volume of sales. Thus, coca-cola can opt to expand through organic growth by establishing another brand category that

will target specifically the UK and European markets

to increase companys continued growth.

 Third suggestion is about acquisition that the company can

acquire its primary competitor. Through such acquisition the

established company can gain immediate sales capacity and

market position without investing in substantial marketing effort.
New products must be introduced which must be appropriately

positioned relative to its competitors but this would involve thousands of dollars in terms of marketing.

Usman Rehmani Conts no= 03007477593