Downloaded 14 times
More Related Content
P&g
- 2. Flow Of Presentation Significance of Study Industry Profile Company Profile 4P Model SWOT analysis Porter: Five force model Way Forward Key Lessons
- 3. The fastmoving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. In 2015, revenue from consumer durables sector in India stood at US$ 9.7 billion, which further increased to US$ 12.5 billion in FY16. Consumer durable market expected to grow at CAGR of 13 per cent from FY05 to FY20. Cascading Multiple Taxes by the FMCG sector (Import duty, service tax, CST, income tax). 30% revenue of the sector goes into both direct and indirect taxes. The FMCG sector is one of the larger employers sector in country. This sector provides significant direct and indirect employment opportunities for over 30 Lakh people in the country.
- 4.
- 5. In 1837William Proctor starred a soap and candle company. Proctor and Gamble is one of the largest FMCG company in the world offering a wide range of products. It touches life of 4.4 billion people spreading across the 180 countries in the world.
- 6.
- 7. 2016 net salesby Geographic Location
- 8.
- 9. Attractiveness and GrowthPolicy Brand Loyalty Distribution Channel Innovation Pricing Strategy Quality of the Product
- 11. Products P&G India nowserves over 650 million consumers across India. With a portfolio of more than 50 brands which includes Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral- B, Head & Shoulders, Wella and Duracell.
- 12. Gillette is abrand of men's safety razors and other personal care products including shaving supplies, owned by the multi-national corporation Procter & Gamble (P&G). 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. Gillette’s has a wide range of products which include Razors, Trimmers, Blades, Shaving Cream, Gel, Foams, Skincare and Aftershave.
- 16. Product Price(Rs) Mach 3Razor 160 Fusion ProGlide 499 Fusion Power Razor 460 Guard Razor 22 Vector Razor 50 7 0’Clock Ready 15
- 17. Place Gillette’s ownnetwork reaches 1L outlets in 3600 towns. Hub and Spoke approach. 20 Hub cities and Spoke are Tier 2 and Tier 3 towns.
- 18. Promotion P&G brandhas high recognition rate. Focus on brand value, innovation and cutting edge technology. P&G uses pull strategy by means of heavy and innovative advertising. Coupons.
- 23.
- 24. STRENGTHS Large investmentin consumer understanding and R&D (Nearly double than its close competitor Unilever). Strong Brand portfolio: P&G is focusing on 10 product categories with about 65 brands. Across the 10 categories, P&G has 21 brands with annual sales of $1 billion to about $10 billion, and 11 brands with sales of $500 million to $1billion. Extensive experience of marketing in different market segments, counted as one of the best marketers in the world. Most admired brand by consumers in its segment because of consumer understanding and Social responsibility to the community and environment. Procter and Gamble operates in over 80 countries and offers products and services in more than 180 countries worldwide, which makes it global leader.
- 25. WEAKNESS The companycontinues to rely heavily on mature markets. The emerging markets will outperform mature markets over the period. Resistance to divest its weak or poor brands. 90% of its profits are driven by only 20% of its brands. Dynamic nature of beauty and skincare products. Dependence upon large retailers for its revenues. Lagging behind in On-line media leadership and presence.
- 26. THREATS Facing cutthroat competition in FMCG segment by competitors like Unilever, Colgate-Palmolive, Kimberly-Clark, Avon products etc. Many retail brands Like D Mart and Reliance fresh have starting with their own brands and are planning their own private labels for detergents, personal care products and others. Local firms give stiff competition in terms of price and availability, especially in rural sector. Political instability, terrorist activities and economic changes can lead business towards deflation, inflation, interruption or reduced demand. Brand image and profits of P&G have negatively impacted by counterfeit products.
- 27. OPPURTUNITIES Divest brandsthat doesn’t have significant share in revenue generation. Rural market penetration. Opportunity to make and offer private label products for retail consumers. Opportunity for more products in Men beauty and Healthcare segment. Yet to Leverage social media and internet marketing to expand its reach among people.
- 29. BARGAINING POWER OFSUPPLIERS Bargaining power of suppliers in the model is explained by the strength of the position of sellers Co-dependent relationship P&G is a key customer Supplier diversity is kept high
- 30. THREAT OF NEWENTRANTS The force describes how easy or difficult it is for new entrants to start competing, and which barriers do exist. Established economies of scale Big Distribution network Brand Power
- 31. THREAT OF SUBTITUTES Threatof substitutes in the model refers to how easy a product or service can be substituted, especially if they are cheaper. • Low involvement products • Substitutes having lower quality. • Low switching cost
- 32. BARGAINING POWER OFBUYERS Too many choices are available. High quality of information. Relationship of Walmart and P&G.
- 33. COMPETITIVE RIVALRY Rivalry amongthe existing players considers whether there is a strong competition between the existing players in the industry. It also seeks to answer the question “is one player very dominant or all equal in strength and size”. High because presence of strong competitors like HUL, Colgate palmolive , ITC, patanjali . Low switching cost. High aggressiveness of firms.
- 34. WAY FORWARD PrivateLabels Counterfeit products Exploiting Emerging markets Special marketing strategy
- 35. KEY LESSONS Diversificationof suppliers. High competitive market requires rigorous marketing strategies and innovation in products.