GLOBAL SOLUTIONS

My company is subsidiary company under the conglomerate- PROCTER AND GAMBLE LTD.

History

William Procter, a candle maker, and James Gamble, a soap maker, immigrants from England
and Ireland, respectively, who had settled earlier in Cincinnati, who met as they married sisters,
Olivia and Elizabeth Norris formed the company initially. 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 born.

In 1858-1859, sales reached $1 million. By this point, approximately 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"

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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. Procter & Gamble maintained a strong link to the North
East of England after this acquisition. 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 paper products. Once again focusing on laundry, Procter & Gamble began making
"Downy" fabric softener in 1960 and "Bounce" fabric softener sheets in 1972. One of the most
revolutionary products to come out on the market was the company's "Pampers", first test-
marketed in 1961. 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 land filling.

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, and the Iams Company, among others. In 1994, the company made
headlines for big losses resulting from leveraged 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, Procter & Gamble 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 that during its development stages is known to have caused anal leakage and
gastrointestinal difficulties in humans.

Procter & Gamble has dramatically expanded throughout its history, but its headquarters still
remains in Cincinnati.

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In January 2005 P&G announced an 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. It also divested Gillette's oral-care toothpaste line, Rembrandt. The deodorant
brands Right Guard, Soft & Dri, and Dry Idea were sold to Dial Corporation. The companies
officially merged on October 1, 2005. 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 24, 2009, the Irish-based pharmaceutical company Warner Chilcott announced they
had bought P&G's prescription-drug business for $3.1 billion.

HISTORY OF GLOBAL SOLUTIONS

It is an Indian based company .In 1978, GLOBAL SOLUTIONS was started as

detergent company. It was into the manufacturing of soaps and detergents. After
the 1990’s we stepped into the manufacturing of beauty care products like fairness
creams, face powders etc.

In 1991, after globalization we became a subsidiary of Procter and Gamble and

moved in to the manufacturing of health care products and grooming products.

After 2000 we ventured into the food and beverage industry. The company has
grown really big with time not only in India but globally too.

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Operations

Effective July 1, 2007, the company's operations are categorized into three "Global Business
Units" with each Global Business Unit divided into "Business Segments" according to the
company's March 2009 earnings release.

 Beauty Care
o Beauty segment
o Grooming segment
 Household Care
o Baby Care and Family Care segment
o Fabric Care and Home Care segment
 Health and Well-Being
o Health Care segment
o Snacks, Coffee, and Pet Care segment

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Procter & Gamble headquarters in Downtown Cincinnati, Ohio

Global Solutions headquarters in North Bangalore, Karnataka

PROCTER AND GAMBLE

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Puffed Puffs

After the catastrophic disaster that has occurred and half the world’s population is wiped off.
There is extreme devastation and shortage of all basic necessities in the world. There will
shortage of food, clothing, and shelter. There might be a threat of an epidemic, during this time
nutritious for survival is important. The most important necessity is food during this time since it
is very hard to come by. We have come up with an interesting product with a long shelf life that
is tasty and more importantly 'ready to eat' right out of the packet without cooking\boiling
it.There are around 6 units in each packet

Our product is a snack made out of dough with no filling inside. It is a plain snack made out of
flour, butter, baking soda and salt. We have one with dry nuts inside the dough too. The snack is
filling, appetizing and economical.

PROCTER AND GAMBLE

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MARKET ANALYSIS

FOOD PROCESSING INDUSTRY

Strengths

 Abundant availability of raw material

 Priority sector status for agro-processing given by the central Government
 Vast network of manufacturing facilities all over the country
 Vast domestic market

Weaknesses

 Low availability of adequate infrastructural facilities

 Lack of adequate quality control and testing methods as per international standards
 Inefficient supply chain due to a large number of intermediaries
 High requirement of working capital.
 Inadequately developed linkages between R&D labs and industry.
 Seasonality of raw material

Opportunities

 Large crop and material base offering a vast potential for agro processing activities
 Setting of SEZ/AEZ and food parks for providing added incentive to develop Greenfield
projects
 Rising income levels and changing consumption patterns
 Favorable demographic profile and changing lifestyles
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 Integration of development in contemporary technologies such as electronics, material

science, bio-technology etc. offer vast scope for rapid improvement and progress
 Opening of global markets

Threats

 Affordability and cultural preferences of fresh food

 High inventory carrying cost
 High taxation
 High packaging cost

Packaged / Convenience Foods

Consumer food industry mainly consists of ready-to-eat and ready-to-cook products,

salted snacks, chips, pasta products, cocoa based products, bakery products, biscuits, soft
drinks, etc.

There are around 60,000 bakeries, several pasta food units and 20,000 traditional food
units and in India. The bakery industry is among the few processed food segments whose
production has been increasing consistently in the country in the last few years. Products
of bakery include bread, biscuits, pastries, cakes, buns, rusk etc. This activity is mostly
concentrated in the unorganized sector. Bread and biscuits constitute the largest segment
of consumer foods with an annual production of around 4.00 million tonnes. Bread
manufacturing is reserved for the small-scale sector. Out of the total production of bread,
40% is produced in the organized sector and remaining 60% in the unorganized sector, in
the production of biscuits the share of unorganized sector is about 80%.

PROCTER AND GAMBLE

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PROCTER AND GAMBLE

 GLOBAL SOLUTIONS

PROCTER AND GAMBLE

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TARGET MARKET

 Income groups
 Lower middle class
 Middle class
 Upper middle class
 Lower class

PRICING STRATEGY

 Brand value and experience of market

 Mid-premium strategy
 Range

PLACE AND DISTRIBUTION

 Geographical area
 Localized area
 Distribution channels

POSITIONING

USP: healthy, tasty, economical, long shelf life

PROCTER AND GAMBLE

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MARKETING STRATEGY

TELIVISION

 Network channels

 Repetition of the ad

PRINT

 Mediums- newspaper, magazines

 Repetition of the ad

POINT OF PURCHASE

 Free samples

 Word of mouth

 Our sales persons will go from door to door advertising our products

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Finances

Investments
 Pre – existing funds- 200 crores in the current account
 Loans raised through the mortgage of assets in the STATE BANK OF INDIA- 100 crores

In normal circumstances if this product was launched the MRP would

have been around Rs. 50 but since the disaster has struck and there is a
shortage we will have minimum profit margin of 3 Rs and the MRP would
be Rs. 35 while the cost of producing the product will be Rs.32.

BREAK EVEN POINT

We plan to break even in 4 years.

PROCTER AND GAMBLE

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Contents

 History

 Introduction to the product

 Market analysis

 Promotion, marketing strategy

 Finance

PROCTER AND GAMBLE

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PROCTER AND GAMBLE