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OPERATIONS MANAGEMENT: 2008

Submitted to: Dr. Hayat Mohammad Awan

OPERATIONS :TERM PAPER:


MANAGEMENT PROCTOR N GAMBLE COMPANY

Submitted by:
Mahwish Malik
MBA- I 3rd semester

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OPERATIONS MANAGEMENT: 2008

I DEDECATE THIS REPORT TO ALL


OF MY
FAMILY

MEMBERS
WHO SUPPORTED ME IN EVERY
WAY OF LIFE AND DID NOT LET ME
DOWN

&
ALL WELL WISHER’S

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ACKNOWLEDGEMENT

I have the only pearl of eyes to admire the blessing of the Compassionate and
Omnipotent because the words are bound, knowledge is limited and time is short
to express His dignity. All thanks are due only to Almighty Allah, most gracious,
the most merciful, who gave me the strength to do this job. My special praise for
Holy Prophet Muhammad (Peace Be Upon Him) who is, for even humanity as a
whole.

It is a matter of great honor and pleasure for me to express my ineffable gratitude


and profound indebtedness to my venerable supervisor and Head of IMS Dr.
Hayat Mohammad Awan, for his kind supervision, valuable suggestion and
sympathetic attitude through my research. I am much impressed of his intellectual
activities, inexhaustible energy to steer forth the student. His sympathetic and
sincerest attitude is highly qualified experience.

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Executive Summary
The boundaries that define competition are subject to environmental changes such
as technological advances or evolving consumer preferences (Day, Shocker and
Srivastava 1979).

As competitive boundaries fluctuate, competitor can emerge from new or


unanticipated product categories. The world of today as becomes global village,
changes travel instantly from one part of globe to the other due to technical
advancement and state of the art technology like computer, internet, etc.

The businessmen of today have to confront with multifarious challenges and coop
with hyper competitive environment with ever increasing threats from unknown
directions. To survive in this environment we have to come up with new products
with attributes compatible or superior to that of the competitor. For becoming
market leader they would require extra ordinary marketing & management skills.
They will have to maintain their brand image and ensure that customers remain
hardcore loyal to their brand, for this purpose they should add extra value and
more satisfaction with reasonable cost. In order to capture more and more market
share they should conduct extensive research of the market and spend handsome
amount on developing innovative and quality products. Also enhances
competitive advantage and capture maximum market share.

For capturing sand maintaining maximum market share and to remain market
leader the marketing manager should have a very efficient supply chain
management system. Marketing mix strategy should be reviewed periodically to
remain abreast with latest trend, changes, and consumer preferences prevailing in
the market. They should devise effective messages, communication channel, and
allot suitable promotion budget. As the customer trends are changing components
of promotion mix should be selected carefully and focus on sales promotion rather
than advertising. Marketers should not aim on one time profit rather they should
plan for maintaining strong loyal customer’s base. This will result in repeat sales.

The management of P&G are following all these techniques and ethics in order to
their competitive advantage, capture maximum market share, remain market
leader, provide maximum value and satisfaction to customers and established
abroad base of hardcore loyal customers. So far so good they have succeeded.

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Procter & Gamble

Q: How many times has Procter &


Gamble touched YOU?

Procter & Gamble touches people’s lives


over two billion times every day!

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HISTORY:
Established in 1837, The Procter & Gamble Company began as a small, family
operated soap and candle company in Cincinnati, Ohio, USA. Today, P&G
markets almost 300 products to more than five billion consumers in 140 countries,
Pakistan being one of them.

1837

Brothers-in-law William Procter and James


Gamble start a partnership, making and selling
candles and soap in Cincinnati.

Neither William Procter nor James Gamble ever intended to settle in Cincinnati.
Although the city was a busy center of commerce and industry in the early
nineteenth century, William, emigrating from England, and James, arriving from
Ireland, were headed farther west.

Despite their intentions, however, both men ended their travels when they arrived
at the Queen City of the West—William took care of his ailing wife, Martha, who
soon died, and James sought medical attention for himself.
William Procter quickly established himself as a candle maker. James Gamble
apprenticed himself to a soap maker. The two might never have met had they not
married sisters, Olivia and Elizabeth Norris, whose father convinced his new sons-
in-law to become business partners. In 1837, as a result of Alexander Norris'
suggestion, a bold new enterprise was born: Procter & Gamble.

On April 12, 1837, William Procter and James Gamble start making and selling
their soap and candles. On August 22, they formalize their business relationship by
pledging $3,596.47 apiece. The formal partnership agreement is signed on October
31, 1837.

1859
P&G sales reach $1 million.

1879
The inexpensive, but high-quality Ivory soap is introduced

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1924
P&G is one of the first to create a market research department to study consumer
preferences and buying habits

1955
Crest, the first toothpaste with fluoride clinically proven to fight cavities, is
introduced

1961
Pampers is introduced and eventually replaces cloth diapers

1980
Sales reach $10 billion

2003
P&G operates in 80 countries worldwide, employing 98,000. Have 13 billion
dollar brands in its portfolio: Charmin, Tide, Pantene, Iams, Folgers, Crest, Olay,
Always, Ariel, Bounty, Downy, Pringles, and Pampers $43.3 billion in net sales in
2003.

2004
P&G's Safe Drinking Water Program wins the World Business Award from the
United Nations Development Program & International Chamber of Commerce in
support of the UN's Millennium Development goals.

Actonel is P&G's newest billion-dollar brand, and the first pharmaceutical brand to
reach this important milestone.

2005
P&G and Gillette merge into one company and add five more Billion Dollar
Brands to our product portfolio including Gillette and Braun's shaving and
grooming products, the Oral-B dental care line and Duracell batteries.

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HISTORY SO FAR IN PAKISTAN:


Procter & Gamble started its operations in Pakistan in 1991 with the goal of
becoming the finest global local consumer goods company operating in Pakistan.
It has first launched Camay and Head & Shoulders. With commitment came
growth, and in 1994 we acquired a soap-manufacturing facility, a sprawling 7-acre
land at Hub, Balochistan. Over the past nine years, the plant achieved state-of-art
manufacturing technologies and quality assurance processes. With a recent
strategic investment of 5 million dollars, the bar soap production capacity jumped
three-fold.

As a company we have always believed in the potential Pakistan has as a country


and a nation to develop and excel. No wonder P&G Pakistan, within the last 12
years, has reinvested over $100 million in Pakistan and has contributed close to
seven billion rupees to the Pakistani government's revenues over the last 5 years in
the form of sales tax, customs and excise duties. That is also why 99% of the jobs
that P&G Pakistan creates in Pakistan are held by Pakistanis. All this makes P&G
a more locally involved company than many companies actually headquartered in
Pakistan.

Since the inception of P&G Pakistan, we have always committed ourselves to


business growth, consumer satisfaction and community development. Thanks to
our committed base of employees, customers, vendors, stakeholders, and above
all, consumers, today we are one of the most thriving operations in Pakistan.

We proudly celebrate being a part of the Pakistani way of life.

P&G BACKGROUND:

P&G Pakistan is a subsidiary of the Procter and Gamble Corporation, the leading
consumer goods company with a mission to improve the lives of consumers
wherever it operates.

P&G is an international Company reaching out to almost the entire world


population with more than 250 brands in 130 countries. Many of these world
brands (Ariel, Tide, Pert Plus, and Pantene Pro-V, Head & Shoulders, Pampers and
Always) have become famous household names and are found in almost every
home. Headquartered in Cincinnati-Ohio in the USA, P&G has local operations
across the globe in more than 80 different countries, including numerous
manufacturing sites and 18 R&D-technical centers. P&G is an internationally

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owned company with publicly traded shares, currently owned by over one million
shareholders from around the globe.

P&G employs over 100,000 people from all over the world, spread evenly
between 1-USA, 2-Europe/Middle East and Africa and 3-Latin America/Asia.
P&G hires and respects individuals regardless of race, color, religion, gender, age,
national origin, citizenship or disability, and actively promotes diversity within its
organization as well as in its business operations.

P&G GOALS:
P&G's goal is simple - "To create the most successful global brands in every
category everywhere we compete. And we have the strength to do it"

PURPOSE, VALUES & PRINCIPLES:


Our core values and principles guide us in everything we do. Learn more about
what drives our purpose of providing products and services of superior quality and
value to the world's consumers.

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GLOBAL BUSINESS:
The P&G community consists of nearly 98,000 people working in almost 80
countries worldwide. What began as a small, family-operated soap and Candle
Company now provides products and services of superior quality and value to
consumers in 140 countries.

STRONG BRANDS:

Our company has one of the largest and strongest portfolios of trusted brands,
including Pampers, Tide, Ariel, Always, Pantene, Bounty, Folgers, Pringles,
Charmin, Downy, Iams, Crest, Actonel and Olay.

ORGANIZATION HIERARCHY:

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ORGANIZATION HIERARCHY MULTAN:

PRODUCT LINE

In July 1997, Ariel was launched in Pakistan based on a sophisticated and


advanced formula. Its breakthrough formula was warmly welcomed by the
Pakistani consumers.

Thanks to the use of latest detergent technologies, the new Ariel is able to deliver
great end-results on cleaning and whiteness maintenance.

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New Ariel delivers against one of the key Pakistani consumer needs: a detergent
that could give spotless cleaning to both colored and white clothes. This is because
new Ariel contains a unique double action system, which gets fully dissolved
unlike bar soap. The green speckles penetrate deep into the fabric to help remove
tough stains. The blue speckles give shine to your whites and brightness to your
colored clothes.

Procter & Gamble is one of the world’s largest manufacturers of products for
feminine protection. In 1984, P&G introduced the Always line of feminine
hygiene pads onto the USA market and it rapidly became the global market leader.

In 2001, Always was successfully introduced in Pakistan to be the first advanced


hygiene pads in the market, representing a milestone in the progress and
development of Pakistani women. As in many Muslim societies, women in
Pakistan are concerned about their cleanliness and hygiene during menstruation.
But unlike the former, Pakistani women have been behind in using proper hygiene
protection. Only 9% of women in urban Pakistan use disposable pads, the
remaining use cloth and other home made means of protection. The key reason
behind this is the prior existence of low quality products in the market.

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Consumer research shows the following hierarchy of needs for menstrual


protection:

1. Protection and reliability

2. Comfort and discretion

3. Convenience

4. Economy

The Always line up ensures that women are provided with a product that fits with
their expectations and needs in Pakistan. The Always thick pad is a traditional pad
and contains normal fluff pulp in the core for absorption. The Always ultra pad is a
super thin pad that contains a highly absorbent material that can absorb several
times of its own weight in fluid and convert it to gel. The fiber-webbed
distribution layer encourages rapid dispersal of the fluid before it comes in contact
with the absorbent core. The polyethylene back sheet stops fluid from passing
through the pad. The adhesive stripes on the back sheet are made of special glue
that holds the pad securely on the panty. Wings wrap smoothly around the panty,
holding it in place, and prevent soiling. The quick wrap packages allow women to
carry unused pads discretely and dispose of used pads hygienically.

Always marks a breakthrough in the lives of Pakistani women and has


revolutionized the concept of feminine protection. The ease and comfort it
provides during those awkward days has managed to bring about a sense of
freedom, mental security and peace for women.

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In 1926, the world was introduced to the finest and most sophisticated of luxuries -
Camay; and in 1994, the pleasure was brought to Pakistan. Different in its very
essence, defining beauty in a totally different way from other soaps, Camay stands
apart in a league of its own. Camay is not just soap; it is a feeling - of beauty from
within. In a world short of time, Camay is about finding time and pampering
yourself. The person that resides inside needs importance and attention. Camay is
for spoiling you, because "you" are the most important person in your life.

Head & Shoulders is the world's leading Anti Dandruff shampoo. It has been
awarded "the best Anti Dandruff shampoo" by many medical associations
including US dermatologists. In Pakistan, H&S has a 65% market share of Anti
Dandruff shampoo segment. It has consolidated this position since the new
Renaissance launch. The new, best ever formula for Head & Shoulders contains
extra moisturizers which clear away dandruff and also leave hair looking beautiful.

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Dandruff and Related Scalp Conditions

There's really no need to feel uneasy about having dandruff - all you need is the
right solution. Head & Shoulders® has been providing that solution for more than
35 years, as well as leaving hair manageable and looking great. We've offered
some information here on dandruff and related scalp conditions to help you
understand them better.

Use Head & Shoulders!

The good news is that dandruff can be fought and even prevented. Head &
Shoulders has a new line of shampoos, 2 in 1 formulas and conditioners to help
you fight dandruff and leave your hair manageable and looking great.

First launched in the 1950's, Olay rapidly became an


essential part of many women's' lives.

Today the brand is enjoyed by 70 million women worldwide and it continues to


add new products which enhance women’s' natural beauty. Oil of Olay was
launched in Pakistan in 1992.

With its superior moisturizing quality and added UV protection, it has become a
preferred moisturizing lotion for women in Pakistan. Women love it because it
leaves the skin fresh and glowing.

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In August 2000, Procter & Gamble launched Pampers in this country in Pakistan.
Local consumers now benefit from this globally renowned product that is
approved by standards of the Human Safety Reassurance Program and also
endorsed by the International Society of Pediatricians. Imported from Saudi
Arabia, Pampers is packed locally and aims to provide a better parenting
experience to Pakistani mothers.

The special feature of Pampers is the new diaper core design including a new dual
acquisition system which helps to improve the condition of baby's skin through a
better dryness performance. The Pampers core takes in urine from the diaper
surface after loading. Fast acquisition minimizes baby's contact time with the skin.
A homogeneous blend of cellulose and a very absorbent material result in efficient
distribution of the GM. The storage technology locks the urine away so that it
cannot return to the baby's skin. Leg elastics, barrier leg cuffs and the waist shield
are added to provide greater leakage prevention. The fastening strips allow the
diaper to be refastened over and over again. Balsam lotion on the top-sheet
provides comfort and moisturizing to baby’s skin, each time he moves.

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Laboratory and use tests confirm that Pampers provides an outstanding level of
dryness and is significantly superior to cloth and other diapers under all
conditions. Consumer research shows that Pampers has made considerable head
way in generating trial and conversion amongst cloth using mothers, who feel that
Pampers has helped in bringing about a difference in her babies life and also her
own. Consumer confidence is further validated by the fact that Pampers currently
had 75% market share in Pakistan and has managed to more than double the
market size since its launch.

The Pantene Pro-V line of shampoos is the best selling shampoo and conditioner
system in the world loved by women in more than 100 countries. Pantene has
always been on the cutting edge of hair care technology being the shampoo that
provides solution to different types of hair problems.

Pantene was launched in Pakistan in 1995 and currently every 6th female shampoo
user uses Pantene for her hair care needs. Pantene in Pakistan has 5 variants that
provide solution to different hair problems as below:

Products Type Attributes

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Variant: Smooth and Silky

Label Color: Green

Benefit: Shine for dull hair

Variant: Extra-Treatment

Label Color: Dark Blue

Benefit: Prevents split ends

Variant: Anti-Dandruff

Label Color: Light Blue

Benefit: Dandruff Control

Variant: Deep Black

Label Color: Black

Benefit: Shine for dull hair

Variant: Clarifying

Label Color: Silver

Benefit: Residue removal

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Variant: Golden Protection

Color: Gold

Benefit: Intensive care for dry/damaged hair

Pert Plus Shampoo + Conditioners-Good News from the Shower!

Hair's just dead stuff on your head, right? Well, yeah, on some people it looks like
that. But not you. Not after you've lathered, rinsed and repeated with Pert Plus
Shampoos and their awesome clean conditioning technology. What's that, you ask?
It's the unique way Pert Plus works. It cleans, conditions, and then it gets outta
there. It doesn't hang around to weigh hair down. No waxy residue. No build-up.
None of those listless, slacker follicles. It's water-based, so hair rinses clean.
Suddenly hair is shining and lively-looking. Dare I say it's billowy? Yes. Thanks to
a shampoo that knows when to quit.

Pour some in your hand. Doesn't it feel rich and luxurious? Smell it. The scent is
sublime. Best of all, Pert Plus Shampoo never builds up. It doesn't know how. The
excess just washes away. So your hair feels clean and full and looks great all day.

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Attribute
Product Type

Original

What would life be without American icons? We're talking' about blue
jeans, soda pop, and, of course original Pringles in that famous red
can. What are you waiting' for? Open a can and bite into a classic.
Also available in 50-gram and 100-gram cans.

Paprika

Add some spice to your life. Shake up a can of Pringles Paprika


crisps!

Barbecue

Yeehaw! Got a taste for tangy BBQ flavor? Then pop open a can of
Barbeque Sauce and transport yourself to the Old West.

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Salt and Vinegar

Wanna see your tongue do back flips? Seriously, grab a stack of Salt
and Vinegar and watch your mouth turn into a circus.

Sour Cream & Onion

Pop these delectable and savory crisps into your mouth and crunch
away! Smooth sour cream flavor and a delicious onion taste make for
finger lickin' goodness.

Cheese & Onion

Everybody gets a lil' cheesy sometimes, so it's good to have a snack


handy when the mood hits. Get your cheese on, and dig into a can of
Cheese & Onion.

Hot & Spicy

This is snacking on the edge! If you like a snack that adds spice to
your life and treats your taste buds to irresistible peppery flavor, dive
into a can of Pringles Hot & Spicy crisps!

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Safeguard, launched in 1995 by Procter &


Gamble has set new standards for defining
"health & hygiene" in Pakistan. It is an anti-bacterial soap that provides germ
protection for twice as long as ordinary soaps making it the doctors' number 1
recommended choice throughout the world. In addition to germ protection, it also
caters to various other needs such as beauty care and protection against sweat
odor.

Vicks is a well-established and leading brand for cough and cold Relief across the
world. Globally, there are a broad range of products under the Vicks umbrella,
ranging from Multi-symptom relief medicine (Nyquil and Dayquil) to the world
famous Vicks Vaporub to other cough and cold relief syrups (Formula 44), tablets
(Action 500), and drops (Vicks Throat Drops).

In Pakistan Vicks Vaporub is the leading external medicine brand


for cough and cold relief while Vicks Throat Drops are fast gaining
acceptance as an instant relief for throat irritation. In the years to
come, the Vicks team in Pakistan will introduce more and more of
its successful products to the consumers of the country.

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Herbal Essences' shampoo formula has been specifically developed to deliver a


richer, more sensuous lather using ingredients known as ‘lather boosters’ which
stop each bubble from bursting too soon. The result is longer lasting and
ultimately more fabulous lather which cleanses hair softly feeling wonderful to the
touch.

Attribute
Product Type

For Normal Hair 2in1

Herbal Essences moisture balancing 2 in 1 shampoo and conditioner


blends lavender, jasmine and aloe with plant derived ingredients to
calm and refresh hair and provide balanced conditioning and
detangling with no build up.

For Dry/Damaged Hair 2in1

Herbal Essences replenishing 2 in 1 shampoo and conditioner blends


Peony, Hibiscus and Vitamin E with plant derived ingredients to
gently clean and moisturize, replenish and protect dry or damaged hair
with optimal conditioners.

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For Normal to Oily Hair

Reduce the build-up on your hair with the conditioning of Herbal


Essences Clarifying/Residue Removal Shampoo. Made with Jasmine
and Orange Flower, it rinses and cleans away, leaving no residue to
weigh hair down.

Global Gillette, formerly The Gillette Company, likes to be on the cutting edge.
The world's #1 maker of shaving supplies, the firm is best known for its razors and
blades (Sensor, Trac II, and the premium-priced Mach3, M3Power, and Fusion),
but it's also a leading battery (Duracell) maker. Gillette also makes Braun electric
shavers. In October 2005 The Procter & Gamble Company (P&G) bought
100% of Gillette for about $57 billion in stock. Its Braun- and Oral-B-branded
oral care products are now part of P&G's brand portfolio. It sold its Right Guard,
Soft & Dri, and Dry Idea brands to Henkel's Dial for some $420 million.

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Supply chain management has strategic implications because the supply system
can be used to achieve important competitive priorities. It also involves the
coordination of key functions in the logistics.

Since, the organization is trading concern specifically in Pakistan. Sale is the key
operation for the company that the company is growing on the total sale. It doesn’t
mean that other operations are not important. But the starting point for the
company is the sale of the product.

It was the great opportunity for me to see the overall process of sale, in the sale
operation, the prominent operations are:

 Order of the products


 Supply of the product
 Display

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One person is responsible for one task. TSO (Territory Sales Officers) take the
order from the retailer & wholesalers and that order is recorded on the Pam
computer. At the end of the market, they return back to the office and all the orders
are transferred to a format. There is a computer section, which is having a
specified format for the order that is developed in Oracle. All the orders are
recorded automatically when the Palm computer is connected with the PC in
office.

When format are filled, the different vouchers are developed and bill list is
generated. Now the supplier will supply the ordered product in the next day. After
the supply of the product, the recovery of the payments is received from the
customers. And that entire amount is given to the account officer in the office. The
other important section is the display of the product in the shops. That is also most
important to attract the customers. The advertisement cost becomes reduced in this
manner, because after that the company will not spend on so much expensive
advertisement like TV commercials.

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As the acknowledged leader in Fast moving consumer goods, P&G is continuing


to set industry-leading standards for total quality management.

TQM is not any technique. It is basically a philosophy. It revolves around one


thing “Customer Satisfaction”. How this customer satisfaction will achieve?

It will achieve through:

1. Employee involvement.
2. Continuous improvement.

EMPLOYEE INVOLVEMENT:

For employee involvement P&G gives the training to its employees with the
passage of time. “Human Resource Department” arranges the training for their
employees.

CONTINUOUS IMPROVEMENT:

Continuous improvement will be achieved though:

1. Understanding customers’ needs and expectations.


2. Exceeding their promises and commitments.
3. Defining new industry service levels.
This will be supported by continuing their investment in people, technology and
infrastructure within the region. This will be maintained by the systems and
procedures that are in place throughout our organization to optimize quality,
reliability and consistency in their activities. P&G’s reputation depends on all of
them working as a team to satisfy and retain the single most important person in
their business.

OPERATIONS:

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Effective July 1, 2007, the company's operations are categorized into 3 "Global
Business Units" with each Global Business Unit divided into "Business
Segments," according to the company's June 2007 earnings release.

 Beauty

 Beauty segment

 Grooming segment

 Household Care

 Baby Care and Family Care segment

 Fabric Care and Home Care segment

 Health & Well-Being

 Health Care

 Snacks, Coffee and Pet Care

MANAGEMENT AND STAFF:


Current members of the board of directors of Procter & Gamble are:
Norman Augustine, Bruce Byrnes, Scott D. Cook, Joseph Gorman, A.G. Lafley,
Charles R. Lee, Lynn M. Martin, W. James McNerney, Jr., Johnathan Rodgers,
John F. Smith, Jr., Ralph Snyderman, Richard Dearlove, Margaret Whitman, and
Brian Bowns. Norman Augustine will be retiring from the Board following the
Company's October 2007 meeting.

In 2007, the P&G's Canadian division was named one of Canada's Top 100
Employers, as published in Maclean's magazine, the only consumer products
company to receive this honor.

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“A forecast is the prediction of future events used for the planning


purposes”.

Generally customers make the indication about their future requirement some time
ago. So it is relatively easy for the firm to manage that sort of demand and
corresponding production. Also all the forecasting and demand handling is done
by Head Quarter itself. A 6 month sales forecast maintains by the P&G.

FORECASTING TECHNIQUES:

There the three forecasting techniques are available for the purpose of the
forecasting of the demand, which are as under.

1. Judgmental Method.
2. Causal Method.
3. Time Series Method.
The usage of these techniques depends upon the availability of the data about the
past. Casual method use historical data on independent variables. Time series
analysis relies heavily on historical demand data to project the future size of
demand and recognizes seasonal trend and patterns. A key factor in choosing the
forecasting method is the time horizon.

P&G is currently following the:

1. Causal Method.
2. Time Series Method.

Blow RoomPage 34
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OPERATIONS MANAGEMENT: 2008

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 Procter & Gamble Latin America

 Procter & Gamble Germany

 Procter & Gamble India

 Procter & Gamble Japan

 Procter & Gamble France

 Procter & Gamble Europe

 Procter & Gamble UK

Procter & Gamble India is one of the country's leading advertisers, with a small
portfolio of products led by India's best-selling healthcare brand, Vicks. For
various historical reasons, the group operates through two separate subsidiaries,
one of which is part-publicly owned.

FACTS ABOUT P&G PAKISTAN:

• Procter & Gamble started its operations in Pakistan in 1991.

• P&G Pakistan is headquartered in Karachi.

• P&G Pakistan has reinvested over $100 million in Pakistan within the last
12 years.

• P&G Pakistan has invested 63 million dollars over the last 5 years in terms
of capital, marketing and training.

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• P&G Pakistan has contributed close to 7 billion rupees to the Pakistani


government's revenues over the last 5 years in the form of sales tax,
customs and excise duties.

• P&G Pakistan creates more than 4,000 jobs in Pakistan. 99% of the jobs
that P&G Pakistan creates in Pakistan are held by Pakistanis.

• P&G Pakistan owns a sprawling 7-acre land manufacturing facility at Hub,


Balochistan, which manufactures Safeguard and Camay soaps. A recent 5
million dollar investment has tripled the plant's capacity.

• P&G Pakistan runs several social marketing programs in the field of


education and health. These programs benefit more than 3 million people
annually.

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As already told that P&G has a distribution setup in Pakistan named as


International Brands Ltd. IBL manages the inventory and sales of P&G products in
Pakistan.

In order to meet the high levels of distribution, IBL is & continuing to reduce
operating costs, increase our supply chain efficiency, reduce inventory and shorten
cycle times.

If a brand supplied by a distributor is unavailable, consumers may switch to a


competitor brand, abandon expensively generated brand loyalty.

The levels of inventory maintained at IBL Multan are:

Maximum Level of Inventory Rs. 40 million

Minimum Level of Inventory Rs. 20 million

Buffer Stock Rs. 0.5 million

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RECOMMENDATIONS:

• Illegal manufacturing is indulging in adulteration of following products


o Pantene
o Head & Shoulders
o Pert Plus
o Ariel
To survive from this type of adulteration P&G should adopt effective strategy to
safeguard against such activities.

o More awareness
o Product identification measures like Company Seal etc.
• They are market leader in 6 out of 12 products. They should take
effective measure to enhance their market leadership
• Market share of Multan is only 9%; however Multan still has a lot of
unexplored potential. Sales promotion measures should be adopted to
enhance its market share
• Camay-Dog product should be re-launched by adding more attributes.
Camay is a market leader product worldwide but in P&G Pakistan it is a
dog product.
• P&G should focus on sales promotion rather than advertising in sub
urban and rural areas of Multan and Southern Punjab.

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OPERATIONS MANAGEMENT: 2008

BIBLIOGRAPHY

www.pg.com

www.pg.com.pk

www.ansreview.org

www.google.com

www.yahoo.com

Operations Management: LEE. KRAJEWSKI & LARRY P. RITZMAN

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