By-Akshay Gautam

MARKETING MANAGENMENT OF

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.

                                      P&G Indiasubsidiary of world’s largest consumer goods company Procter & Gamble .

largest and amongst the fastest growing consumer goods companies in India.

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 manufacturing sites.

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 & Gamble's products.

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 success.

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 care products.

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, low-income markets. Through HFS, they connect to consumers with affordable products and packaging specially designed for their needs.

P&G brands and P&G people are thefoundation of P&G’s success.

P&G people bring the values to lifeas we focus on improving,

the lives of the world’s consumers.

A. G. Lafley, CEO P&G

Consumer Understanding

Innovation

Brand-Building Scale

Go-to-market Capabilities Core

Strength of P&G

Product Strategy

Product classification – service consumer goodProduct differentiation- form , features , performance , reliabilitySuperior technologyCSR initiativesAttractive packagingCatchy taglinesEstablished as a brand itself

Pricing Strategy

Optional – feature pricingProduct- line pricingCompetitive pricingDistribution pricing 

Place Strategy

In store placement strategyAlready existing strong links in urban areaRural penetrationDevelop marketing channels as strong and penetrated so that it would gain        access to remote areasStrategic location of warehouseIncrease wholesale dealers in small towns so that they can go to the nearby    villagesNational coverage would be dealt with by increasing the company’s     warehouses and creating C&F agents in the smaller cities 

Promotion Strategy

MediaRadioHoardingsConsumer promotionFragrance oriented and eco friendlyNewspaperVarious promotional offersP & 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.

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.

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’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.

P&G “THANK YOU MOM” CAMPAIGN

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 year 2006

Tide surpasses Surf and turns out to be urban India’s biggest brand in the year 2011

Reward Me Free Samples of Products by P&G

Do you dream about getting things for free? Like Free Sample of Products used in daily life. Reward Me Free Samples of Products by P&G can make your dream come true. Reward Me is an initiative by P&Gwhere you can get samples of new P&G products, offers on products purchase and personal care tips and tricks. So enjoy the Reward Me Free Samples by P&G. For now you can order Pantene Shampoo, Olay, Ariel, Pamper, Whisper and Head & Shoulder.

Rewardme is one of the leading site to provide free samples of P&G Products. You just have to do simple free registration on the site and can avail many products samples for FREE

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.

Product: “Pantene”

Product levels: 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.

Competitors : Sunsilk . Clinic Plus.

Challenges :There is hard competition from market leaders Sunsilkand Clinic Plus specially in southern areas.

Target Customers : Mainly the women and girls.Regular users, including Males.

Positioning :Pantene is positioned as shampoo for women of all age groups depending on their requirement and texture of hair.

Brand Strategy : Umbrella Branding.

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”

Product Levels: Head & shoulder is a brand of P&G particularly used for dandruff prevention and to protect hair.

Market Share: 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

Segmentation: 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.

Positioning: Anti dandruff shampoo

Product strategy/mix: 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.

Product: “Ariel”

Product Levels:Ariel is a marketing line of laundry detergents made by Procter & Gamble. It is the flagship brand in Procter & Gamble's.

Target Customer : General Consumers. Color Sensitiveness of Clothes. Washing Machine Users.

Segmentation : Demographic- Family Size. Benefits- Quality, Service, Income.

Positioning : 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 : Optional-Feature Pricing. 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 500 Extra.

Product: “Vicks”

Market Share: Vicks Vaporub is market leader in this segment with a share of 50%. Vicks action 500 has around 40% market share

Sales: Vicks brand accounts for 40% of Company turnover, i.e. Rs. 170 Cr. More Sales during Monsoon period.

Competitors Challenge: Amritanjan Bam Zandu Bam Cold Snap Pharma ‘o cold

Product Strategy: Promotional Strategy offering special Coupons. Introduction of new products. Emotional Marketing ( Not selling Vicks selling Mother’s Love ).

Target Customers: Children. Adults. Sinus Patient.

Positioning Strategy : Unique Shape of Cough Drops inhaler & Caplet. Touch Therapy. Mother’s Love Platform.

Segmentation Strategy : On the basis of Age. Kids above the age of 6 months. Youth.

Branding Strategy : Umbrella Branding

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.

Product: “Gillette”

Product Levels: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 & Gamble

Target Customers : Young Men. Beauty Conscious Women.

Segmentation : Niche Marketing Urban & Semi-Urban area Benefits- Quality, Economy. User Status- Regular User, Potential User & Non-users.

Positioning :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 Disposable razors

Product Strategy : Products Classification- Service Consumer good. Product Differentiation- Form, Features, Performance, Reliability, Style. Established as a brand itself.

Pricing Strategy / Mix : Optional-Feature Pricing Captive Product Pricing

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

P&G- SWOT ANALYSIS

SWOT analysis- Opportunities : Developing Markets 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 Economic slowdown  Vicks banned in US marketIncrease cost of raw materials   

Main Competitors : Johnson & Johnson Co. Kimberly-Clark Liver Pvt. Ltd. Hindustan Unilever Ltd.

Target Markets : Homeowners Stay-at-home parents Women B2B

 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. 

CONCLUSION