P&G is the world's largest consumer goods company and operates in India through subsidiaries. To strengthen its presence in India and increase sales 20-fold by 2015, P&G India launched "Project 2-3-4" aiming to double users, triple spending per user, and quadruple net sales. P&G distributes products through a limited number of large distributors to extend reach across India in an efficient and high-volume manner.

1. Case study on P & G
Prasad Kumar Nayak
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2. Introduction to P & G
• P & G India is the subsidiary of world’s largest
consumer goods company Procter & Gamble .
• It is ranked 86 in the 2012 fortune 500 list with a
revenue of $ 82.5 billion.
• P&G India is one of the largest and amongst the
fastest growing consumer goods companies in
India.
• It was established in 1964,
• P&G India now serves over 650 million
consumers across India.

3. P & G India Products
• The various brands are
Vicks, Ariel, Tide, Whisper, Olay, Gillette,
Ambipur, Pampers, Pantene, Oral-B, Head &
Shoulders, Wella and Duracell.

4. Introduction to P & G
 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’.

5. Introduction to P & G
Now it has a direct reach of 1.3 million outlets
across India.
At present, India is one of the smallest markets
for P&G with just $1-billion sales across three
subsidiaries -Procter & Gamble Health &
Hygiene, Gillette India and Procter & Gamble
Home Products
P & G currently invested in the country via its five
plants and over nine contract manufacturing sites
It 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.

6. Project 2-3-4
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.

7. Why Project 2-3-4
• P & G is an organisation which traditionally deriving its
bread and butter from premium brands, and from
developed market.
2009 Sales by Geographical Region
Developing market
22%
North East Asia North America
4% 44%
Western Europe
30%
Sources-Economic times

8. • 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
localised, 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).

11. “Thank You, Mom” Campaign
 P&G's corporate campaign kicked off in April with its
first ``Thank You, Mom'' TV spot.
 It also has a dedicated ``Thank, You
Mom'' Facebook page and app that allows people to
send ``Thank you'' messages to their mothers.
 P&G is sponsoring more than 150 global athletes.
 P&G is sponsoring a few athletes like boxer Mary Kom
and runner Kavita Raut, giving their mothers a chance
to see them perform and hopefully win at London
this year.
 P&G expects the campaign to drive $500 million in
sales.

12. 1. Analyze the sales and Distribution System of P&G?
P&G keeping broaden the market by slashing it’s no. of
distributors down to one-tenth of it’s size .
85% of it’s sales come from the top 30 towns & it’s
current volume did not justify a large distributor network.
So P&G will now have one distributer who will operate
like superstockist., which help to replenish it’s
distributors more frequently and reduce their average
stock level.
P&G keep growing on ROI(Return On Investment) which
resulted in each distributer trying to extend it’s reach to
push up volumes.

13.  With a limited number of distributers, P&G will
also not need to invest in C&F agents.
 P & G follows wholesale format of distribution
for Vicks.
 P&G is giving 6% margin to the distributor
 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.

14. Distribution network of FMCG:-
• MANUFACTER PLANT
C/F
DISTRIBUTOR
OUTLETS/ SHOPS
END CONSUMER/ USER

15. Distributor network of automobile
FACTORY
DEALER
CONSUMER

16. THANK YOU