Procter & gamble marketing strategy


Published on

Published in: Education, Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • One company manages the Vicks and Whisper healthcare products, another markets detergents, haircare products and diapers, and the third handles Gillette and Oral B. 
  • In 1985 ,Procter n Gamble company ,USA acquires Richardson Vicks Inc. In 1989 ,RHL changes its name to P&G India Ltd. In 1999 Procter & Gamble India Limited to Procter & Gamble Hygiene and Health Care Limited .
  • Procter & gamble marketing strategy

    1. 1. By – Group 1 Strategy in India
    2. 2. About P&G….. <ul><li>Founded – 1837 *(American multinational corporation) </li></ul><ul><li>Industry - Consumer goods </li></ul><ul><li>Products are available in 140 countries </li></ul><ul><li>Principles : </li></ul><ul><li>Show respect for all individuals. </li></ul><ul><li>Inspire and Enable people to achieve high expectation and challenging goals </li></ul><ul><li>The interests of the company and the individual are inseparable. </li></ul><ul><li>Encourage the stock ownership and ownership behavior </li></ul><ul><li>Strategically focused in their work. </li></ul><ul><li>Only do work and ask for work that add value to their business </li></ul>
    3. 3. P&G Principle….. <ul><li>Innovation is the cornerstone of their success. </li></ul><ul><li>Great value on big ,new customer innovation </li></ul><ul><li>Externally focused. </li></ul><ul><li>Develop superior understanding of consumer and their needs </li></ul><ul><li>value personal mastery. </li></ul><ul><li>seek to be the best. </li></ul><ul><li>Learn form both success and failure </li></ul><ul><li>Mutual interdependency is a way of life.” </li></ul><ul><li>Build superior relationship with all the parties </li></ul>
    4. 4. P&G in India….. <ul><li>In 1985 P&G. </li></ul><ul><li>In 1989 P&G. </li></ul><ul><li>In 1991 P&G. </li></ul><ul><li>In 1998 P&G </li></ul><ul><li>In 1999 P&G. </li></ul><ul><li>Joint Venture /Merger and Acquisition- </li></ul><ul><li>A joint venture with Godrej Soaps India in 1993. </li></ul><ul><li>Acquires the Shulton business which has brands such as Old Spice in 1993. </li></ul><ul><li>Acquires Gillette in 1995 ,and diversify their brand . </li></ul><ul><li>Other mergers and acquisition are , Revlon Inc- Max Factor, Wella, Laboratories Vita-Commercial ,Long Chen Paper Co-Ltd . </li></ul>
    5. 5. Product Portfolio……
    6. 6. SWOT Analysis of P&G ….. <ul><li>Strength </li></ul><ul><li>Product innovation </li></ul><ul><li>Offers multiple products </li></ul><ul><li>Strong Brand image </li></ul><ul><li>Strong Customer Loyalty </li></ul><ul><li>Diversified Business Structure </li></ul><ul><li>Weakness </li></ul><ul><li>Views Product Performance only </li></ul><ul><li>Increased promotional spending to keep </li></ul><ul><li>healthy sales </li></ul><ul><li>Customer Concentration </li></ul><ul><li>Opportunities </li></ul><ul><li>Going Green/Eco Friendly </li></ul><ul><li>Emerging markets </li></ul><ul><li>Selling directly to consumers </li></ul><ul><li>Better product experience </li></ul><ul><li>Threats </li></ul><ul><li>Substitute brands that have a cheaper price </li></ul><ul><li>Slowdown in consumer spending . </li></ul><ul><li>Key competitors expanding their product </li></ul><ul><li>portfolios through acquisitions </li></ul><ul><li>Increase cost of row materials </li></ul><ul><li>Vicks banned in US market </li></ul>
    7. 7. P&G Approach to New Customers, New Markets <ul><li>The three approaches: </li></ul><ul><li>Proactively understand customer needs and cultural norms unique to each country. </li></ul><ul><li>Use those insights to run low-fidelity, strategic experiments. </li></ul><ul><li>Use the resulting assumptions to drive the development of local business models, including product development, marketing and branding, sales and distribution, and manufacturing. </li></ul><ul><li>Lafley’s &quot;Living It.“ program for market research </li></ul>
    8. 8. Core Strength of P&G…..
    9. 9. Porter Five Force Competitive Analysis for P&G…..
    10. 10. Porter Five Force Competitive Analysis for P&G….. <ul><li>Threat of New Entrants- </li></ul><ul><li>P&G possess a significant amount of market share around the world . </li></ul><ul><li>To compete P&G ,A competitor must have a large sums of capital for heavy marketing and R&D. </li></ul><ul><li>Firms That Specialize in nice market could possibly become a threat to P&G corresponding business segment . </li></ul><ul><li>Power of Buyers </li></ul><ul><li>P&G is heavily dependent on wall mart and its affiliates for generating a major part of its revenue. </li></ul><ul><li>High dependence upon Wal-Mart could reduces the bargaining power of P&G. </li></ul>
    11. 11. <ul><li>Power of Suppliers </li></ul><ul><li>Supplier of P&G need key customer for profitable revenue generation and will have little bargaining power. </li></ul><ul><li>Rising interest rate and declining availability of credit ultimately should not affect P&G’s relationship with its suppliers </li></ul><ul><li>Threat of Substitutes </li></ul><ul><li>There is substantial no of substitutes for all of P&G’s product offerings ,creating an intense competitive environment . </li></ul><ul><li>In order to differentiate it self P&G must continue to provide new and innovative products to the customer . </li></ul>Porter Five Force Competitive Analysis for P&G…..
    12. 12. <ul><li>Intensity of Rivalry </li></ul><ul><li>P&G has several strong competitors in different markets like AMWAY corporation ,Colgate-Palmolive company ,Johnson & Johnson ,Revlon ,HUL among big and medium size competitors . </li></ul><ul><li>Switching cost in this industry are quite low . </li></ul>Porter Five Force Competitive Analysis for P&G…..
    13. 13. Competitors of P&G in India….. <ul><li>Main Competitors : </li></ul><ul><li>HUL </li></ul><ul><li>Kimberly Clark Liver Pvt. Ltd . </li></ul><ul><li>Johnson & Johnson </li></ul><ul><li>Competitors on basis of Product : </li></ul>
    14. 14. Competitive Advantage of P&G with Respect to Rivals….. <ul><li>P&G have long standing reputation of having family of product, that having the excellent quality . </li></ul><ul><li>Intensive research to determine their target market and type of product would best fit their need </li></ul><ul><li>P&G have product for both the market segment, economic and Luxury . </li></ul>
    15. 15. Strength in Structure Global Business Units (GBUs) focus on consumers, brands and competitors in India. They are responsible for the innovation profitability from their businesses. Market Development Organizations (MDOs) are charged with knowing consumers and retailers in each market . Global Business Services (GBS) utilizes P&G talent and expert partners to provide best-in-class business support services at the lowest costs. Lean Corporate Functions ensure ongoing functional innovation and capability improvement.
    16. 16. P&G Strategy ….. <ul><li>Business Level </li></ul><ul><li>Efforts to build competitive advantage </li></ul><ul><li>Collaborative partnership and strategic alliance </li></ul><ul><li>Distribution channel </li></ul><ul><li>Functional Level Strategy </li></ul><ul><li>Human Resources Strategy </li></ul><ul><li>R&D Technology Strategy </li></ul><ul><li>Marketing and Sales Strategy </li></ul>
    17. 17. Value Chain Analysis…...
    18. 18. Value Chain Analysis…... <ul><li>Analysis of Primary activity </li></ul><ul><li>P&G developed extensile economies from its scale of operations in </li></ul><ul><li>finance ,logistics ,marketing ,Research, new product development , </li></ul><ul><li>technology innovation and other function </li></ul><ul><li>Inbound and Outbound Logistics </li></ul><ul><li>P&G’s goal has been to create adaptive, reactive supply networks that will link together sales and supply processes, inside and outside the organization, to improve product availability. </li></ul>
    19. 19. Value Chain Analysis…... <ul><li>Operations </li></ul><ul><li>P&G organized into 3 business units </li></ul><ul><ul><li>Beauty </li></ul></ul><ul><ul><li>Health and well-being </li></ul></ul><ul><ul><li>Household care </li></ul></ul><ul><li>The operation group consist of market development organization and global business services </li></ul>
    20. 20. Value Chain Analysis…... <ul><li>Sales and Marketing </li></ul><ul><li>The company markets more then 300 brands over 180 countries </li></ul><ul><li>23 of these brands are categorized by P&G as billion dollar brands. </li></ul><ul><li>Majority of sales now coming from promotional events, pull systems of efficient distributors of consumer and industrial product </li></ul><ul><li>Services </li></ul><ul><li>P&G emphasis on its principal business call of providing its customers with right products at right place all the time </li></ul>
    21. 21. Value Chain Analysis of P&G….. <ul><li>Analysis and Support Activity </li></ul><ul><li>Firm Infrastructure : </li></ul><ul><li>Integrity </li></ul><ul><li>Passion for Winning </li></ul><ul><li>Leadership </li></ul><ul><li>Trust </li></ul><ul><li>Ownership </li></ul>
    22. 22. Value Chain Analysis…... <ul><li>Product R&D </li></ul><ul><li>P&G has strong commitment to find the best researchers, and retain </li></ul><ul><li>them with cultural design to reward success ,stimulate learning , </li></ul><ul><li>challenges compliancy and nurture innovation. </li></ul><ul><li>Human resources Strategy </li></ul><ul><li>Hire the best </li></ul><ul><li>Challenges of P&G people from day1 </li></ul><ul><li>Business and functional leaders activity recruiters, Teach and Coach </li></ul><ul><li>Plan careers </li></ul><ul><li>Never Stop Learning </li></ul>
    23. 23. Value Chain Analysis of P&G….. <ul><li>Procurement : </li></ul><ul><li>P&G expect measure changes in transportation area including </li></ul><ul><li>partnership with logistics outsources and more use of technique such </li></ul><ul><li>as cross-docking . </li></ul>
    24. 24. Marketing Strategy Analysis <ul><li>Vicks </li></ul><ul><li>Pantene </li></ul><ul><li>Pampers </li></ul>
    25. 25. Marketing Strategy Analysis….. <ul><li>Product: “Vicks” </li></ul><ul><li>Market Share: </li></ul><ul><li>Vicks Vaporub is market leader in this segment with a share of 50%. </li></ul><ul><li>Vicks action 500 has around 40% market share </li></ul><ul><li>Sales: </li></ul><ul><li>Vicks brand accounts for 40% of Company turnover, i.e. Rs. 170 Cr. </li></ul><ul><li>More Sales during Monsoon period. </li></ul>
    26. 26. Marketing Strategy Analysis….. Ansoff Matrix for Vicks
    27. 27. Marketing Strategy Analysis….. Level of Product(Pantene)
    28. 28. Marketing Strategy for Pantene…… <ul><li>Pricing and Promotional strategy- </li></ul><ul><li>P&G strategy essentially was a disguised price increase. </li></ul><ul><li>P&G lowered their wholesale price, but the retailer only enjoyed higher </li></ul><ul><li>margins and did not pass the savings on to the customer </li></ul><ul><li>Personal selling is not an aspect of Pantene’s promotional selling and it </li></ul><ul><li>would not be wise to incorporate it. </li></ul>
    29. 29. Marketing Strategy Analysis….. <ul><li>Pamper ‘s 4 Ps analysis: </li></ul><ul><li>product </li></ul><ul><li>Core benefit- Pamper provide a baby care from the age of 2 month to 4 year child </li></ul><ul><li>Basic product- Pamper is the which is based on concept of providing baby care through disposable diaper </li></ul><ul><li>Expected- Various products launched under this brand name to suit to the requirements of the customers like – baby diapers with lotion top surface ,a rash guard diaper that prevents eruptions caused by diapers; custom fit baby diapers for all age groups. </li></ul><ul><li>Augmented- international website deals with delicate sensibilities of new parents, this area offers free expert advice through alliances with organization and pamper is also the innovator of Pampers Baby care Mobile Clinic </li></ul>
    30. 30. Marketing Strategy Analysis….. <ul><li>Potential- It is when baby uses this, get comfort like cloth with </li></ul><ul><li>performance wise better than cloth nappies. </li></ul><ul><li>Price Factor : </li></ul><ul><li>Internal Factor- </li></ul><ul><ul><li>Goal and Objective </li></ul></ul><ul><ul><li>Cost Aspects </li></ul></ul><ul><ul><ul><li>Actual cost </li></ul></ul></ul><ul><ul><ul><li>Organization consideration </li></ul></ul></ul><ul><li>External Factor </li></ul><ul><ul><li>Market and demand </li></ul></ul><ul><ul><li>Competitor pricing strategy </li></ul></ul>
    31. 31. Marketing Strategy Analysis….. <ul><li>Promotion : </li></ul><ul><li>Advertising </li></ul><ul><li>Public relation </li></ul><ul><li>Sales promotion </li></ul><ul><li>Selection of media </li></ul><ul><li>Place : Distribution Channel </li></ul>