p& g company project work

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Acknowledgment

We have a great pleasure to present the project report on “ Distribution channel of

Proctor & Gamble Head & Shoulder and its Competitors”

The study of different distribution channel is enchanting as well as interesting for us

to undertake. We completed this project under the guidance of Prof. (Dr.) Dindayal

Swain.

We would like to express our heartful gratitude and immense thanks to Prof.

(Dr.) Dindayal Swain for proper guidance and for providing us opportunity to this

project.

We would like to thanks all Retailers who help us to complete this project.

Last but not least we would like to thanks all distributers for their co-operation.

‘

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Contents

Research Methodology

Objective Chapter1

1.1 Introduction

1.2 Product Portfolio

1.3 Head & Shoulder variants

1.4 SKU’S & Pricing

Chapter 2

2.1 Distribution Channel

2.2 Promotion2.3 Margin

Chapter 3

3.1 Competitor Scanning

3.2 Clinic All Clear Variants

3.3 SKU’S & Pricing

3.4 Distribution Channel & Margin

3.5 Dabur Vatika Antidandruff Variants

3.6 SKU’S & Pricing3.7 Distribution Channel & Margin

Chapter 4

4.1 Data Analysis

4.2 Issues

4.3Recommendation

Webiliography

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Research Methodology

For our Project we have taken we have taken different methodology for our

research objective. Following are the methods we carried out and are highlighted in

this project.

Primary data:

Collected primary data from Random Sampling

Process of Data Survey:-

• To collect our primary data we have face to face interaction with

Distributors

• Face to face interaction with retailers of areas:

Ravi Talkies

Radhika Tower Vivekananda Marg

Tankapani Road

Secondary Data:

• Internet

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Objective Of Project

To know about SKU’S and prices from retailers

To know about the sales promotion

Study the whole distribution channel & logistics

About competitors and their Channels

Margin of Retailer & distributer of P&G and its competitors

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Chapter -1

1.1 INRODUCTION

COMPANY PROFILE

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Procter & Gamble Co. (P&G) is an American company founded in 1837 based in

Cincinnati, Ohio that manufactures a wide range of consumer goods. As per 2008 it

is 8 Th largest in world by market capitalization and 14 th largest company of US

by profit. In India Proctor & Gamble has two subsidiaries: P&G Hygiene andHealth Care Ltd. and P&G Home Products Ltd.

Its relation started with India in 1951 P&G Hygiene and Health Care Limited is

one of India's fastest growing Fast Moving Consumer Goods Companies that has in

its portfolio P&G's Billion dollar brands such as Vicks & Whisper. With a turnover

of Rs. 500+ crores, the Company has carved a reputation for delivering high

quality, value-added products to meet the needs of consumers.

P&G Hygiene and Health Care Limited takes pride in being voted India's BestEmployer 2003 in a survey of 200 companies conducted by International HR

Consultancy Hewitt Associates in association with Business Today magazine.

Earlier, the Company was voted India's 2nd Best Employer in previous editions of

the survey in 2001 and 2002. Notably, there are over 200 Indian employees with

P&G Subsidiaries abroad.

List of directors

Mr. R .A. Shah (Chairman)

Mr. S. Khosla (Managing Director)

Ms. D. Henretta

(Alternate: Mr. Pramod Agarwal)

Mr. B. S. Mehta

Mr. D. Acharya

ORGANISATION STRUCTURE

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Market Development Organization



CORE STRENGTH

1.2 PRODUCT PORTFOLIO

Health Care

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Beauty

&Grooming

Health &

Well-BeingHousehold

Care

Global Business Services

Corporate Functions

Consumer

Understanding

Scale

Go to market

capabilities

Innovation

Brand Building



1) Vicks Vapor rub

2) Vicks Inhaler

3) Vicks Cough drop

4) Vicks Action 500

Famine Care

1) Whisper Maxi Regular

2) Whisper Maxi XL Wings

3) Whisper Ultra with Wings

4) Whisper Ultra XL Wings

5) Whisper Choice

Fabric Care

1) Ariel Front-O-Mat

2) Ariel Fragrances

3) Tide Detergent

4) Tide Bar

Hair Care

1) Pantene Pro V2) Head & Shoulders

3) Rejoice

Baby Care1) Pamper

1.3 Head & Shoulders

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http://www.pg-india.com/hp/arielfront.htm

http://www.pg-india.com/hp/ariel2.htm

http://www.pg-india.com/hp/tide.htm

http://www.pg-india.com/hp/tidebar.htm

http://www.pg-india.com/hp/panteneprov.htm

http://www.pg-india.com/hp/hs.htm

http://www.pg-india.com/hp/rejoice.htm

http://www.pg-india.com/hp/arielfront.htm

http://www.pg-india.com/hp/ariel2.htm

http://www.pg-india.com/hp/tide.htm

http://www.pg-india.com/hp/tidebar.htm

http://www.pg-india.com/hp/panteneprov.htm

http://www.pg-india.com/hp/hs.htm

http://www.pg-india.com/hp/rejoice.htm



The shampoo market in India was estimated at Rs. 21.41 billion per annum as of

February 2008, growing annually at a rate of 14.5 percent.

Head &

Shoulders is the

world’s No. 1 Anti-dandruff shampoo and now has become a part of Indian homesas well. This best-ever anti-dandruff shampoo has an improved formula, which

offers the fine combination of anti-dandruff efficacy and hair conditioning. What

makes the new Head & Shoulders its best so far is its break-through formula which

covers the scalp more effectively to remove even the tiniest flake of dandruff, while

the new conditioning property keeps hair looking beautiful.

Head & Shoulders now comes in a new pack-design and logo in six variants:

Head & Shoulders Smooth & Silky

Head & Shoulders Refreshing Menthol

Head & Shoulders Clean and Balanced

Head & Shoulders Silky Black

Head & Shoulders Naturally Clean

Head & Shoulders Nourishing Aloe Vera

Anti-dandruff market in India

Company Brand Market share in %

P&GHead &

Shoulders58.20%

HULClinic All

Clear 35.90%

Dabur Vatika Anti

dandruff 5.10%

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1.4 PRICING

Head & Shoulders is available in three different pack sizes (SKU’S) –

90ML, 200ML, 400ML, 3ML, and 8.4ML

SKU’S PRICE

90ml Rs.60

200ml Rs.139

400ml Rs.224

8.4 ml Rs.3

5ml Rs.1.50

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CHAPTER -2

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2.1 CHANNEL STUDY

With help of distribution channel we can know whole overview of distribution in

the market. Channel study helps us to know about the flow of product in market.In Bhubaneswar Company has its own distribution network and supplies the order

on basis of sales man report or order is given by suppliers on phone. The company

has its own depot in Cuttack.

But in this distribution channel there is a problem that is they collect demand draftfirst from retailers and after that they provide the product and also there is money

limit and quantity limit. Goods should be more than 5 boxes and amount should be

Rs. 35000 at lest. So many retailers and not interested in taking product directly

from company.

Only few big retailers do this. Some retailer has directly picked up their goods from

company depot and they are usually made payment through the DD...

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COMPANY DEPOT

RETAILER

RETAILER



Even some retailers have been collecting their products through their association or

say distributer and bulk breaking between them. This type of distribution system

has adopted by some retailers in suburb of Bhubaneswar where a significant

demand would likely to be there. But company’s salesperson is not visiting these

places. The distributer collect the products from company depot and their sales person go and collect the demand weekly and then according to the retailer

requirement provide product to them.

Company depot acts as C& F agent:

Pahal, Cuttack – Bhubaneswar road

Manufacturing Point:

Gurgaon, Mandidip

Fast Moving Products:

Laundry Care: TIDE

Hair Care: Head & Shoulder

Famine Care: Whisper

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Channel

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MANUFACTURER

COMPANY DEPOT

(C/F)

MAIN SITE/ SHIPMENT

POINT

DISTRIBUTER

RETAILER

RETAILER



Distributor:

OM ASSOCIATES

H.O:- Plot no.276, Satyanagar

Bhubaneswar-7

Contact no.

Office

Ph.no. 0674-325522

Mr. Malay Mohanti

Ph no.9238694343

Mr. Rout Rai (Sales Executive)

Ph.no.9238694343

Mr.Tushar (logistic)

Ph.no.9338079455

Mode of transport

TRUCK

Territories:

20

No. of SKU’S Of P&G available:

Approx 300+

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2.2 Promotion

1. From Manufacturer to RetailerVarious club membership and incentive according to them

• Platinum Club: Sales target of Rs.50,000& above

• Gold Club: Sales target of Rs. 30,000-50,000

• Silver Club: Sales target of Rs. 30,000 and Below

2.

From Distributer to RetailerIn 1 Carton (40 pieces) 3 pieces are free given to retailer by Distributer

2.3 MARGIN:

C&F to Distributor: 2-5%

Distributor to Retailer: 10-12%

Reorder time:

For retailer is 1 week and for some it is 14 days and in every 1 week the sales

person of distributor takes the order and supply according to the requirement of

retailer and sometime retailer also give order on phone.

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Chapter-3

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Competitor Scanning

From the interaction with various Retailers in Bhubaneswar we found that major

competitors of P& G Head & Shoulder are

1. Clinic all Clear from HUL

2. Vatika Anti dandruff shampoo from Dabur

3.1 Clinic All Clear:

The Clinic All Clear brand was launched in 1980 in India. It was known as

Clinic Special then and its name was later changed to Clinic All Clear in

1996.The brand is also present as Clear in 14 other countries worldwide. To

align itself to the international quality standards this year Clinic All Clear has

been relaunched this year as Clear.

Clear is available in 5 variants:

1. Clear Active Care

2. Clear Ice Cool

3. Clear Hair fall Defense

4. Clear Soft Gloss

5. Clear Radiant

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3.2 Pricing

No. of SKU’S: 100 ml, 200ml, 400ml, 8ml

SKU’S PRICE

100ml Rs.64

200ml Rs.134

400 ml Rs.220

8ml Rs.3

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3.3 Distribution Channel Of Clinic All Clear

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MANUFACTUR

COMPANY DEPOT

DISTRIBUTER

(SATH CHIDANANDA Trader)

RETAILER RETAILER



C&F:

Company depot

Mongely Square, Cuttack

Distributer:SATH CHIDANANDA TRADER

B-21, Saheed Nagar

HR (executive)

Mr.Grish Prasad Rath

Ph.no-2544359

Mode of Transport

Truck

Total SKU’S:

Approx 700

Territories:

BMC

Margin:

C&F to Distributer –: 2-3%

Distributor to retail-: 8-10%

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3.4 Vatika Antidandruff Shampoo from DABUR

Vatika Dandruff Control Shampoo removes dandruff without being violent on hair.

Discover non-violence, the new beauty mantra captured in Vatika Dandruff Control

Shampoo range. Enriched with the goodness of nature, Vatika gently removes100% dandruff and prevents recurrence, without causing any damage to hair. So

what you get is dandruff-free, beautiful hair. That's the power of non-violence.

Vatika is present in 3 variants:

1. Naturally Clean

2. Lively Black

3. Hair fall defense

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3.5 Pricing

No. of SKU’S 100ml, 200ml, 5 ml

SKU’S PRICE

100ml Rs.65

200ml Rs.125

5ml Rs.1

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3.6 Distribution Channel

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MANUFACTURE

HINDUSTAN AGENCY

DISTRIBUER (Bhagwati

distributer)

RETAILER

RETAILER



C/F:

Hindustan Agency

Mancheswar

Distributer:

Bhagwati Distributer

Khintamani Square

No. of Territories: 6

• Unit6

• ID market

•

Rasulgarh• Janpath

• Market Building

• Saheed Nagar

Margin

C/F to distributer: 5%

Distributer to retailer: 15%

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CHAPTER- 4

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4.1Data Analysis

Comparison in terms of sales

Product Retailer

Head & Shoulder 19

Clinic All Clear 3

Vatika Anti dandruff 0

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Variants of Head & Shoulder with retailer

No. of variants No. of retailer

3 2

4 2

5 6

6 11

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Retailer Perception about P&G distribution

Satisfied 19

Dissatisfied 3

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Variant sells more

Variety Retailer

Refreshing Menthol 14

Silky Black 5

smooth & silky 2

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4.2 Issues

.

As per retailer sachet sells more and the reorder time is less they order

average 60-70 sachet per order in 6 days

All varieties of Head & Shoulder are not sold in market like Aloe Vera so it is

not kept by many retailers and if kept the rotation of stock is slow. Out of 21retailer only 12 kept Aloe Vera but they complain that the stock rotation is

too low

Lack of sales promotion from C& F to distributors and from distributors to

retailer and also from retailer to consumers.

4.3 Recommendation

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Company should provide more profit to retailers in sachets than bottles as it

sells more in market. They should provide 1 strip free on order of 7 strip or

84 sachet Company should adopt push strategies for those varieties which sells less in

market Like :

• Customer Push

1. Rs.10 off on 95ml, 200ml on those varieties which is not in demand

2. Launch combo pack in which they combine fast movable varieties with slow

movable varieties like:

3. MENTHOL (90 ml) + ALOE VERA (90ml) = Rs. 150

4. They should stop 400ml Aloe Vera as it hardly in demand.

• Trade Push

1. Margin of retailer on slow moving varieties like Aloe Vera should be

increase to 12% so that they push slow moving varieties.

2. Distributor should give initiative to those retailers who clear slow moving

varieties in less time.

Webiliography

www.pg.com www.hul.co.in

www.dabur.com

http://www.pg.com/

http://www.hul.co.in/

http://www.dabur.com/

http://www.pg.com/

http://www.hul.co.in/

http://www.dabur.com/

p& g company project work

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