Marketing Management of P&G India by AKSHAY GAUTAM
Procter & Gamble
American global corporation based in Cincinnati, Ohio.
world’s largest consumer goods company.
ranked 86 in the 2012 fortune 500 list with a revenue of $ 82.5 billion.
As of 2008, P&G is the 23rd largest US company by revenue and 14th
largest by profit.
It is 10th in Fortune's Most Admired Companies list (as of 2007).
According to the Nielsen Company, in 2007 P&G spent more on advertising
than any other company.
subsidiary of world’s largest consumer goods company Procter & Gamble .
largest and amongst the fastest growing consumer goods companies in
established in 1964.
serves over 650 million consumers.
Its presence pans across the Beauty & Grooming segment, the Household
Care segment as well as the Health & Well Being segment.
P&G operates under three entities in India - two listed entities
1. “Procter & Gamble Hygiene and Health Care Limited” and
2. ‘Gillette India Limited’,
as well as one 100% subsidiary of the parent company in the U.S. called
3. ‘Procter & Gamble Home Products’.
Has a direct reach of 1.3 million outlets across India.
invested in the country via its five plants and over nine contract
creates 26,000 jobs directly and indirectly.
Procter & Gamble, will build its largest manufacturing plant in the Indian
sub-continent in Hyderabad by investing 345 crore.
HOW P&G WAS BORN?
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 sons-in-law to become
business partners. On October 31, 1837, as a result of the suggestion,
Procter & Gamble was born.
In 1859, sales reached one million dollars. By this point, approximately
eighty 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 &
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 assumed correctly 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.
•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“.
•The company moved into other countries, both in terms of manufacturing and
product sales, becoming an international corporation with its 1930 acquisition
of the Newcastle upon Tyne-based Thomas Hedley Co.
•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 1950. 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.
•One of the most revolutionary products to come out on the market was the
company's "Pampers", first test-marketed in 1961.
•Also acquired a number of other companies that diversified its product line
and increased profits significantly .These acquisitions included Folgers
Coffee, Norwich Eaton Pharmaceuticals, Richardson-Vicks, Noxell, Shulton's
Old Spice, Max Factor, and the Iams Company, among others.
In 1887,P&G institutes a pioneering profit-sharing program that gives
employees an ownership stake in the Company. This significant
innovation helps employees connect their vital roles with the Company’s
P&G becomes the first company to conduct deliberate, data-based
market research with consumers. This forward-thinking approach
enables us to improve consumer understanding, anticipate consumer
needs and respond with products that improve their everyday life.
P&G becomes one of the first companies to formally respond to
consumer correspondence by establishing the Consumer Relations
department. The addition of toll-free phone numbers in 1973 and e-mail
in the 1980s further enhance consumers’ ability to contact us and keep
the consumer at the heart of all we do.
P&G develops Naturella feminine pads specifically to meet the needs of
low-income women in Latin America. Based on deep consumer
understanding, Naturella responds to consumers’ desire for freshness
with chamomile, a unique ingredient never before used in feminine
High Frequency Stores common in developing markets emerge as their
largest customer channel. Consisting of nearly 20 million stores across the
world, HFS represents a particular opportunity in fast-growing, lowincome markets. Through HFS, they connect to consumers with affordable
products and packaging specially designed for their needs.
A. G. Lafley, CEO P&G
P&G brands and P&G people are the
foundation of P&G’s success.
P&G people bring the values to life
as we focus on improving,
the lives of the world’s consumers.
Product classification – service consumer good
Product differentiation- form , features , performance , reliability
Established as a brand itself
Optional – feature pricing
Product- line pricing
In store placement strategy
Already existing strong links in urban area
Develop marketing channels as strong and penetrated so that it would gain
access to remote areas
Strategic location of warehouse
Increase wholesale dealers in small towns so that they can go to the nearby
National coverage would be dealt with by increasing the company’s
warehouses and creating C&F agents in the smaller cities
Fragrance oriented and eco friendly
Various promotional offers
P & G is spending 30-35 % of its sales in Advertisement and Promotion
which is highest in the industry, HUL expends only 15% of sales on
Advertisement and Promotion.
To strengthen its presence in India, and increase sales 20 times from its
current $ 1b level, P&G India has formulated a 'Project 2-3-4'.
P&G's 'Project 2-3-4,' is aimed at
2:doubling the number of Indians who use its products,
3:trebling per capita spending by Indians on its products and
4:quadrupling net sales of its India operations by 2015.
Globally and within India, the company is investing heavily in innovation,
R&D and distribution. The strategy is to make several of its billion dollar
brands more localized, accessible and affordable for consumers.
The company is trying to strengthen its portfolio by bringing many more
brands into the country.
The parent company also plans to launch toothpaste brands Crest and Oral B
in emerging markets, including India by 2015.
P & G is trying to cater the gaps in its Indian portfolio include toothpaste (a
3,000 crore market) and soaps ( 7,000 crore).
P&G “THANK YOU MOM” CAMPAIGN
P&G’s “Thank You Mom” Olympic marketing program was a brilliant
effort to draw on a universal human value to create a program with
energy, relevance and emotion that spanned brands and countries. Plus,
it’s ongoing with a life beyond one Olympic Games.
In India though, the ‘Thank You, Mom‘ campaign has taken a more literal
form and the FMCG major is playing the wishing well of sorts. P&G has
initiated the ‘Fulfill Her Wish‘ drive in India and is inviting consumers to
confide in it their mother‘s wish. The company has pledged to fulfill the
wish by Mother‘s Day (13 May).
P&G has been using avenues ranging from mainstream advertising to
social media, on-ground activations and exclusive toll free numbers to
record people‘s pledges and messages.
Shiksha : Padhega India. Badhega India.
P&G’s flagship Corporate Social Responsibility Program Shiksha is an integral part
of our global philanthropy program - Live, Learn & Thrive. Now in its 8th
year, Shiksha has till date helped 280,000 underprivileged children access their
right to education. The program has built & supported over 140 schools across
India, in partnership with NGOs like Round Table India (RTI), Save the Children
(STC), Army Wives Welfare Association (AWWA) and Navy Wives Welfare
Association (NWWA), amongst others.
In 2000, Procter & Gamble launches Tide
Tide becomes India’s largest ‘Brand by Value’ in the year 2003-04
Tide overtakes Rin and becomes the mid-tier laundry leader in the
Tide surpasses Surf and turns out to be urban India’s biggest brand
in the year 2011
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The New Pantene Amino Pro-V Complex range of shampoo & conditioner
comes in three variants suited for individual needs - Pantene Nourished
Shine, Pantene Hair Fall Control & Pantene Smooth & Silky. Enriched with
the goodness of pro-vitamins and three essential aminos, Pantene restores
your hair with its lost beauty while making your hair ten times stronger.
To give solution like shampoo etc. which
helps customers for protection of their hair.
Market Share :
Pantene currently has a market share of 7.5 per cent in the Rs
900-crore domestic shampoo market.
There is hard competition from market leaders Sunsilk
and Clinic Plus specially in southern areas.
Target Customers :
Mainly the women and girls.
Regular users, including Males.
Pantene is positioned as shampoo for women of all age groups depending
on their requirement and texture of hair.
Brand Strategy :
Brand Extensions :
Optional feature Pricing.
Since 1950, Head & Shoulders has been at the forefront of scalp and hair
science, significantly advancing the treatment of dandruff and scalp
problems. Along with professional advice and expert insight we have a
wide range of products to care for your scalp and nurture your hair.
Head & Shoulders is available in 8 variants in India including Men Hair
Retain, Complete Care for Dry Scalp, Anti Hair fall, Smooth & Silky, Cool
Menthol, Clean & Balanced, Thick & Long & Silky Black.
Product: “Head & Shoulders”
Head & shoulder is a brand of P&G particularly used for dandruff
prevention and to protect hair.
H&S is market leader for more than 35 years. As a result, over 90 million
people in over 45 different countries have come to depend on Head &
Shoulders® to help prevent dandruff.
Procter & Gamble Hygiene and Health Care Limited (P&G) announced
the launch of `Best-Ever Head & Shoulders Anti-Dandruff Shampoo'
(H&S) in the Rs 500 crore hair-care market Few months back.
Target customer :
Young Men and Women
Hair conscious Men and Women
Mainly used in urban and semi urban area.
User Status-Regular user, Potential user & non user.
Segmentation is also done for different age groups.
Different variety for different hair.
Anti dandruff shampoo
All variety has almost Price same
Introduced in 1991, Ariel was the first to bring the 'compact detergent'
technology, the enzyme technology for safe and superior stain-removing
power and the 'smart eyes' technology into India, with an aim of
becoming India's best stain removal detergent. Ariel contains safe
ingredients for all fabrics under recommended usage conditions for
laundry. The Ariel product range in India includes different variants to
meet your specific needs like Ariel OxyBlu, Ariel Oxyblu Ultramatic, Ariel
Front O Mat, Ariel 2in1.
Ariel is a marketing line of laundry detergents made by Procter & Gamble.
It is the flagship brand in Procter & Gamble's.
Target Customer :
Color Sensitiveness of Clothes.
Washing Machine Users.
Demographic- Family Size.
Benefits- Quality, Service, Income.
Used Product Description, Relevance of POD and Believability of POD,
Growth stage Strategy.
Stain pre-treatment product.
Cold is the new hot.
Product Strategy :
Products Classification- Service Consumer good.
Product Differentiation- Form, Features, Performance, Reliability.
Established as a brand itself.
Pricing Strategy / Mix :
Product- Line Pricing.
Is Cheaper than the Competitor's Products.
Vicks has long been invested in the science and research of
respiratory health and through that dedication has developed a wide
range of therapeutic products that offer effective relief for all the
major signs and symptoms of the common cold, flu and sinus pain
and pressure. The Vicks product range in India includes Vicks Cough
drops, Vicks Vaporub, Vicks Inhaler, Vicks Vapocool, and Vicks Action
Vicks Vaporub is market leader in this segment with a share of 50%.
Vicks action 500 has around 40% market share
Vicks brand accounts for 40% of Company turnover, i.e. Rs. 170 Cr.
More Sales during Monsoon period.
Pharma ‘o cold
Promotional Strategy offering special Coupons.
Introduction of new products.
Emotional Marketing ( Not selling Vicks selling Mother’s Love ).
Positioning Strategy :
Unique Shape of Cough Drops inhaler & Caplet.
Mother’s Love Platform.
Segmentation Strategy :
On the basis of Age.
Kids above the age of 6 months.
Branding Strategy :
Gillette® has been at the heart of men’s grooming for over 100 years. Each
day, more than 600 million men around the world trust their faces and skin
to Gillette’s innovative razors and shaving products designed for the
unique needs of men – helping them to look, feel and be their best every
day. The razor range in India includes Gillette Vector, Gillette Mach3,
Gillette Mach3 Turbo, Gillette Guard and Gillette Mach3 Turbo Sensitive
and Gillette Fusion. The Shave Care range includes Gillette Fusion
HydraGel, Gillette Series Sensitive Skin Foam, Gillette Series After Shave &
Gillette Classic Shave Foam Sensitive Skin.
used for Safety Razors among other Personal Hygiene products.
Co- Branding Acquisition of Gillette & P&G.
In 2005, Global Gillette was dissolved and incorporated into Procter &
Target Customers :
Beauty Conscious Women.
Urban & Semi-Urban area
Benefits- Quality, Economy.
User Status- Regular User, Potential User & Non-users.
Used Product description, Announcing Category Benefits, Relevance of POD
and Believability of POD, Growth stage Strategy.
Super Speed razor
Reducing facial irritation
Safety Razor- prevent cuts and allowing for a closer shave
Product Strategy :
Products Classification- Service Consumer good.
Product Differentiation- Form, Features, Performance, Reliability, Style.
Established as a brand itself.
Pricing Strategy / Mix :
Captive Product Pricing
P&G- SWOT ANALYSIS
SWOT Analysis- Strengths :
Leading Market Position
Strong brand image
Strong customer loyalty
Diversified and innovative product Portfolio
Strong Finances in past years
SWOT analysis- Weaknesses :
Quality control Problem
Decreased Revenues in their Northeast Asian Market
SWOT analysis- Opportunities :
Selling directly to consumers
Better product experience
Demographic trends across the world
SWOT analysis- Threats :
Competitors i.e. substitute brands that have a cheaper price
Rising cost of energy prices
Vicks banned in US market
Increase cost of raw materials
Main Competitors :
Johnson & Johnson Co.
Kimberly-Clark Liver Pvt. Ltd.
Hindustan Unilever Ltd.
Target Markets :
As we know this market is known as FMCG market so
there are many competitor in this time in the market so P&G
company were focused in this time and target the middle
class segment for increasing the sales as well as market shares
Some products like Gillette is made by the company to
target the higher segment of the market.
In India HUL is biggest competitor in FMCG market.