Comparison between Procter and gamble

and Unilever
 Introduction
•
Formed in 1930 By the merger of Margarine
Unie (Dutch Company) & Lever Brothers
(British Soap Company)
•
Main Focus on it’s Foods, Personal care &
Home Care Business.
•
Second largest Consumer goods Company
(After P&G)
•
Third largest Food Firm after Nestle & Kraft
Foods in the world.
 Introduction
•
The Group operates through seven segments:
a) Soaps and Detergents
b) Personal Products
c) Exports
d) Beverages
e) Foods
f) Ice Creams and Other
•
Significant Business in US, Europe, Asia & Latin
America.
 Introduction

• One of the Largest FMCG Companies in the world.

• Number One maker & Marketer of Household
Products in U.S.
• Five Business Segments includes Fabric & Home
Care, Baby, Feminine and family care, Beauty care,
Health care, Food and Beverages
 Introduction

Ranked 31st among the Fortune 500
Companies in 2003.

Operations in more than 80 countries world
wide

Employee strength of more than 110,000
worldwide.
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 both
married sisters, Olivia and Elizabeth Norris formed the
company initially
Alexander Norris, their father-in law called a meeting in which
he convinced his new so ns-in-law to become business
partners.
On October 31, 1837, as a result of the suggestion,
Procter & Gamble was born.
History
In 1872, two Dutchmen, Jurgens and VanDer 
Bergh had ventured into the margarine business.
In 1927, they decided to merge to form two companies, Margarine
Unie NV, based in the Netherlands and Margarine Union Ltd, based in
the UK
William Hesketh L ever  founded L ever Brothers· in 1885 
By 1887, introduced SUN LIGHT·, the world 1st packaged laundry soap
L ever & Co. was making 450 tons of  Sunlight soap a week.
He expanded his business from UK to Australia, North America and
other parts of Europe
In 1890,L ever & Co became a limited company ²LEVER BROTHER LTD,
by 1894, they went PU BLIC
 MISSION

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.
 MISSION

Vitality is at the heart of everything we

do. It's in our brands, our people and our
approach to business.
 Goals
“TOUCHING LIVES IMPROVING LIVES”

provide branded products

and services of superior quality
value that improve the lives of
the world’s consumers and As a
result, consumers will reward us
with leadership sales, profit and
value
 Goals
“TOUCHING HEARTS, CHANGING LIVES”
 add vitality to life
 meet everyday needs for nutrition,
hygiene, and personal care with
brands that help people feel good,
look good and get more out of life
 Objective
Bring together transactional activities such as accounting and order
management in a single organization to provide services to all p&g
units at best in class.
Remains on the cutting edge of the industry.
 To be a thought leader within each corporate function.
To be the first consumer goods company in Pakistan.
Be competitive with other high quality companies in order to help,
attract, motivate and retain the talent needed to lead and grow
P&G’s business.
Strive to be best in all areas of strategic importance to the company.
 
 Objective

Create and deliver an engaging and

interactive online brand experience
 Culture
• Integrity
• Passion for Winning
• Leadership
• Trust
• Ownership
 Culture

• Clarity of goals
• Trust
• Leadership
• Innovation & diversity
• High aims & goal oriented approach
 Shared principles

•  respect for all individuals‡
• Inseparable interests
• Strategically focused 
• Innovation- cornerstone of success
• Externally focused
• value personal mastery
• Seek to be the best
•  Mutual interdependency
 Competitor Comparison

Top Segment CG/Foods Consumer care Food Food

Top Brand Dove Tide Mac & Cheese Kit Kat
CEO A. Burgmans A.G. Lafley R. Deromedi P. Letmathe
Stock per share $66.03 $53.76 $30.70 66.90
Growth 15.58% 9.25% 8.2% 11.23%
Revenues 42,942M 28.2 BL $31,010 M $69 B
Revenue Growth -11.93% 19% 4.3%% -1.93%
International 100+ 42 150+ 86
Business Segments 3 5 5 6
Employees 234000 110000 10600 253000
Management

Board Of Directors
 Management
• CEO USA
Management

Board Of Directors
 Management
• Mr. Ehsan A Malik CEO
Pakistan
Product Line
Product Line
Product of Focus
Product of Focus
Marketing strategy
 Marketing strategy
 direct contact
 Establish stalls in markets and malls
 They go schools and colleges
 free demos
 satisfy costumers on the spot
 policy that their commercials not executed right
before & after the commercial of competitors
--
Strengths Weaknesses
•Largest producing company •High rates of skin care products
•Enjoying economies of scale •Ratio of success of new product is low
•Good will in the market •Huge inventory stocks of raw material and
•Strong financial position finished goods
•Market leader in tea industry with Lipton & •Few new products are introduce in the market
Brook Bond
•Capture 70 percent market share of ice cream
industry
•Highly sales brands in skin care i.e. Ponds and
Fair & Lovely
•Have Strong distribution channel in Pakistan
•Wide product line in home wash

Opportunities Threats
•Capturing food industry by acquiring Raffan Best •Facing tough competition in Ghee and Cooking
Foods Oil
•Wide scope of confectionery business for LBPL •Facing tough competition in ice cream.
•LBPL is looking to acquire Tapal tea •LBPL is facing a very tough competition in
personal care and detergents by P&G
•There is very tough competition in detergents
and soap markets
•High inflation rate is increasing the cost of
imported raw material day by day
Strengths Weaknesses
•Social corporate image. •Unwilling to serve the low income
Swot analysis
•Strong financial position.
•Concerned about the total quality
market.
•Limited manufacturing facilities.
management.
•Direct contact with their costumers.
•Good relation with suppliers.
•Targets wives and children.
•Enthusiastic sales team.
•World wide research and
manufacturing.
•Well established and renowned
distributors.
•Has a larger share in the soap
industry.
Opportunities Threats
•Promoting health care products. •Increasing market share of local
•Introducing newer product lines. Producers.
•Increase in awareness. •Threat of new entrants .
•Increasing inflation in the country
 Financial analysis
Net Income
3500
Revenue
54,000
3000
52,000
2500
50,000

48,000 2000

46,000 1500

44,000 1000

42,000
500
40,000
2000 2001 2002 2003 0
2000 2001 2002 2003
 Financial Analysis (cont.)

280000
0
270000
0
260000
0
250000
0
Net Profit 240000 Employees
0 Margin
230000
0
0 220000

0 210000
2000 2001 2002 2003 2000 2001 2002 2003
Revenues: Product Segmentation

43%

57%

Foods Division
Home and Personal Care
 Financial analysis
Net sales Operating Cash Flow
($billions) ($billions)
 Net sales
By business segment By geographic region
 P&G and Unilever
•
Unilever entered the u.s market in late 19th
cent. & Competed with the market leader P&G.
•
P&G dominated the U.S household & personal
care market while Unilever dominated the
European market.
•
Equal Dominance of P&G & Unilever in Asia.
•
Both Competed in every aspect of their
operations.
 P&G and Unilever
•
Fiercest Competition in Soaps (Body care &
Fabric Care) & Shampoo (Hair care) segments.
•
Both among the Heaviest users of CI.
•
Many instances since 1940 proving their
involvements in Corporate espionage.
 Thank You

• Proctal & gambel • Unilever