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7/27/2019 PnG Project

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PnG

SWOT analysis

STRENGTHS

Scope was long experience in the oral hygiene industry since1967.

The taste or flavor of Scope better than other mouthwashes.High-quality product, quality processes and procedures.Have a first rating in mouthwash market share.

WEAKNESSES

Not enough make a distribution channel.Lack of canning or packaging.Undifferentiated products or services with other competitor.

OPPORTUNITIES

Brand which it concentrate for a healthy oral.Move into new market segment that offer improves profit.

A developing market such as in the Internet.Place more distribution channel such as more drugstore andfood store

THREAT

Too many competitor in this industry.

Price wars with other competitor.Not patentable , competitor can attempt to duplicate a product


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INDUSTRY PROFILEWhat are Fast Moving Consumer Goods (FMCG)?

Products which have a quick turnover, and relatively low cost are known as FastMoving Consumer Goods (FMCG). FMCG products are those that get replaced within

a year. Examples of FMCG generally include a wide range of frequently purchasedconsumer products such as toiletries, soap, cosmetics, tooth cleaning products,shaving products and detergents, as well as other non-durables such as glassware,bulbs, batteries, paper products, and plastic goods. FMCG may also includepharmaceuticals, consumer electronics, packaged food products, soft drinks, tissuepaper, and chocolate bars.A subset of FMCGs are Fast Moving Consumer Electronics which include innovativeelectronic products such as mobile phones, MP3 players, digital cameras, GPSSystems and Laptops. These are replaced more frequently than other electronicproducts.White goods in FMCG refer to household electronic items such as Refrigerators,T.Vs, Music Systems, etc.In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industriesin India. According to the AC Nielsen India study, the industry grew 5.3% in valuebetween 2004 and 2005.

Indian FMCG SectorThe Indian FMCG sector is the fourth largest in the economy and has a market sizeof US$13.1 billion. Well-established distribution networks, as well as intensecompetition between the organised and unorganised segments are thecharacteristics of this sector. FMCG in India has a strong and competitive MNCpresence across the entire value chain. It has been predicted that the FMCG marketwill reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle

class and the rural segments of the Indian population are the most promisingmarket for FMCG, and give brand makers the opportunity to convert them tobranded products. Most of the product categories like jams, toothpaste, skin care,shampoos, etc, in India, have low per capita consumption as well as low penetrationlevel, but the potential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapidurbanization, increased literacy levels, and rising per capita income.The big firms are growing bigger and small-time companies are catching up as well.According to the study conducted by AC Nielsen, 62 of the top 100 brands areowned by MNCs, and the balance by Indian companies. Fifteen companies ownthese 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number

three followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6),Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarettecompanies have always shied away from revealing. Personal care, cigarettes, andsoft drinks are the three biggest categories in FMCG. Between them, they accountfor 35 of the top 100 brands.


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4 PS ANALYSIS OF PANTENE PRO-VPRODUCT:

Clearly, Shampoo is more than just shampoo when P&G sells it.P&Gs great success in the rough-and-tumble shampoo world comes from developing aninnovative product concept.

An effective product concept is the first step in marketing-mix planning.Philip Kotler defines product asAnything that can beoffered to a market forattention, acquisition, use or consumption that might satisfy a -want or need.It includes physical objects, services, persons,places, organizationsand ideas.

Product planners need to think about the product on three levels. The most basiclevel is the core product, which addresses the question: What is the buyer reallybuying?Theodore Levitt has pointed out that buyers 'do not buy quarter-inch drills; they buy

quarter-inch holes'. Thus when designing products, marketers must first define thecore ofbenefits that the product will provide to consumers.The product planner must next build an actual product around the core product.Actual products may have as many as five characteristics: a quality level, features,styling, a brand name andpackaging. product is more than a simple set of tangible features.Consumers tend to see products as complex bundles of benefits that satisfy their needs.

PRICE:As mentioned above the 200 ml bottle was available for Rs 98 and 100 ml for Rs51.But very recently Pantene had reduced the prices and now the same 200 mlbottles are available for Rs 89 and 100 ML FOR Rs 41.P&G has basically adopted Geographical pricing strategy for Pantene.They have set

different prices for Pantene in different countries.This is a very good strategicmethod as it captures the local conditions as well as purchasing power of the localpopulation.When Pantene launched Lively Clean,it adopted Promotional Pricing for it andlaunched it at an introductory price of R78 for 200 ml bottleIt has also introduced Bundle Pricing where it has clubbed two or more products andsold them at a reduced price.But this strategy has not been very successful as iteroded the premium image of the Shampoo and gave the impression of desperationof the company.

Around 2 years back in 2006 P&G reduced the rates of Pantene by 16%. By thisway what P&G did was cutting its bottle's premium over sachets. At the same time

P&G is reducing the price gaps between its own brands. While Pantene and Head &Shoulders were sold at nearly similar price points, bringing down Pantene pricesplaced it between Rejoice (Rs 39 for 100 ml) and Head & Shoulders (Rs 64 for 100ml) and thereby segment P&G's shampoo brands at different price points.This strategy is known as Product Line Pricing.

Very recently Pantene has changed its pricing approach and experimented withValue Pricing Strategy. In this Procter & Gamble made dramatic and long-termchanges in i ts pr ic ing and promot ion strategy dur ing which i t boosted

advert is ing whi le simultaneously cu rbing its distr ibut ion c hannel deals

(in-store displays, trade deals), and s ignif icant ly reduc ing its c oupo n

promot ions. It is interesting to note that P&G's value pricing strategy regardingPantene is quite a misnomer. During this period many stores were switching toEDLP (every day low pricing) policies, which meant that consumers would save on


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their overall purchase without having to deal shop. In contrast, P&G strategyessentially was a disguised price increase; coupons were cut by 50%, whichcontributed to an increase in the customer's price paid by 20%. It is possible thatP&G lowered their wholesale price, but the retailer only enjoyed higher margins anddid not pass the savings on to the customer. Another possibility is that retailerslowered retail prices consistently, following P&G's decrease in wholesale price, butonce promotional trade deals are factored in those everyday lower wholesale pricesdid not result in a lower total price paid. For example, if P&G's old price was Rs20,but gave deals of Rs15, at which price 90% of purchases were made, the wholesaleprice equaled Rs15.7 (.90*15 + .10*20). If P&G set a "Value Price" point of Rs18,but 100% of purchases we were made at that price, the retailer enjoyed no costsavings-only a cost increase. If P&G had truly offered price cuts their results mayhave been much different.

PROMOTION:The promotional strategy of Pantene is highly useful and effective. Using magazineprint advertisements and commercials allows for the opportunity to segment their

advertisements by specific magazines, specific TV shows, and specific time slots.These strategies provide Pantene with the opportunity to wisely advertise to theirtarget audience. Pantenes use of advertising with different ethnicities, hair types, and ages hasproven to be a critical factor because they are now developing specific hair care linefor different types of ethnicities; they were voted Asias number one shampoo, andthey are a highly marketable product in Europe. Without promotion this brand would be relatively unknown and its popularitywould not be near what has been established with promotion. Many times when aconsumer sees a product in the store that they have not heard of they will browseover it and choose a product they know. Consumer and market knowledge areprevalent because Pantene and P&G are built around what consumers want.

Public Relations is a large aspect of the P&G/Pantene promotional mix. Proctor &Gamble does things like raising funds for children who suffer from malnutrition inIndia and Pantene recently put on the Condition for a Cause campaign, donatingmoney to heart disease research. Sales Promotion is also alarge factor for Pantene,they use marketing and business techniques to try and improve consumers lives.They are always finding new and better ways to reach their consumers andbetween their PR campaigns and advertising they are constantly appealing toconsumers and causing them to trust Pantene.Personal selling is not an aspect of Pantenes promotional selling and it would notbe wise to incorporate it. Personal selling often comes off as a sleazy salesmans cheap and last minute effort. Pantenes print and TV advertisements are enough for

Pantene to bring in new customers and frequently remind its loyal customers that itis still in the stores and going strong. Personal Selling would also be a pricey movethat would hinder rather than aid Pantenes efforts. Lastly, advertising is anenormous part of Pantenes promotional mix. Without the current advertisingstrategies and past ones as well, Pantene wouldnt be the widely known and the The distributor needs to be aware of the brands state in the market, theyshould have information on the product in order to decide if they want to beassociated with that product and if so, they will need to know enough aboutthe product to aid customers in finding a shampoo that is best for the them.The idea would be to establish a relationship with as many retailers aspossible to make the brand the recommended one. Consumers need to knowas much as possible about the product. They do not want to feel as if thecompany is hiding something from them and they want to be able to trust theproducts they are using. Information like the ingredients, different products


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the brand carries, efforts made by the brand to help others and humanity areall factors that could affect a sale. Distribution as much information aspossible is a good idea for the company.

The purpose in using aspects of the promotional mix is to build brand equity,brand awareness, and frequently put our advertisements and name into thepublic to be seen. The frequency in which the ads are seen is as important asthe message we are providing.

PLACE:Placement(or distribution): refers to how the product gets to the customer; forexample, point-of-sale placement or retailing. This fourth P has also sometimesbeen called Place, referring to the channel by which a product or service is sold(e.g. online vs. retail), which geographic region or industry, to which segment(young adults, families, business people), etc. also referring to how the environmentin which the product is sold in can affect sales.

Pantene has an undoubtedly amazing design & distribution channel and this can beSupported by the fact Pantene is one of the most easily available brands in the industry.In 1998-1999. Pantene launched global corporate restructuring program called Organization2005, and made several changes in structure, work processes and culture to generategreater stretch, innovation and speed to help its products reach the market faster.Pantene retails through Spencers,Reliance Fresh,More,RPG group and wide varietyof Kirana stores spread all over the country.


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COMPETITIVE ANALYSIS OF PANTENE

Competitors are an essential part of any products scheme of operations.Thestrategies adopted by competitors decide the operation plans for the product.So,it becomes important to analyze the competitors on the basis of all the criterias.

But scope ofthis project limits us to the competitive analysis based on the 4 Ps framework.The main competitors for Pantene are Sunsilk from HUL,Fiamma Di wills fromITC,Halo from Colgate Palmolive and Vatika from Dabur India Ltd.

COMPETITIVE ADVANTAGEUnder the marketing concept, companies gain competitive advantage by designingoffers that satisfy target-consumer needs better than competitors offers. Theymight deliver more customer value by offering consumers lower prices thancompetitors for similar products and services, or by providing more benefits thatjustify higher prices. Marketing strategies must consider the strategies of

competitors as well as the needs of target consumers. Some of the main points thatconstitute the competitive advantage of P&G in general and Pantene in specific are:P&G is one of the largest FMCG companies in the world. Its main competition is withUnilever which has almost equal presence in the world. Procter and Gambles salesas of November 21st, 2003 reached $44,776 million.

PROMOTIONAL STRATEGYThe promotional strategy of Pantene is highly useful and effective. Using magazine

print advertisements and commercials allows for the opportunity to segment theiradvertisements by specific magazines, specific TV shows, and specific time slots.These strategies provide Pantene with the opportunity to wisely advertise to theirtarget audience. Pantenes use of advertising with different ethnicities, hair types, and ages hasproven to be a critical factor because they are now developing specific hair care linefor different types of ethnicities; they were voted Asias number one shampoo, andthey are a highly marketable product in Europe. Without promotion our brand would be relatively unknown and its popularitywould not be near what has been established with promotion. Many times when aconsumer sees a product in the store that they have not heard of they will browseover it and choose a product they know. Consumer and market knowledge are

prevalent because Pantene and P&G are built around what consumers want. Public Relations is a large aspect of the P&G/Pantene promotional mix. Proctor &Gamble does things like raising funds for children who suffer from malnutrition inIndia and Pantene recently put on the Condition for a Cause campaign, donating money to heart disease research


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PRICING STRATEGYProcter & Gamble is a giant in household products, and the company which definedmany marketing strategies we now take for granted. It was the first company toadvertise nationally direct to consumers (in 1880) and it literally created theconcept of "soap opera" by sponsoring radio and television dramas targeting

women. Other inventions included the first Fluoride-based toothpaste (Crest), therevolutionary synthetic detergent Tide, and the first disposable nappy, Pampers. P&Gfound life in the first years of 21st century more difficult than it may have expected,with earnings below expectations and a series of management shake-ups as aresult of under-performance. The group got back on track during 2002 with thepurchase ofClairol and Wella and a renewed focus on core products. Followingdynamic performance in 2003 and 2004, P&G demonstrated the strength of itsrecovery with the announcement in 2005 that it had agreed a deal to acquirelegendary personal care products rival Gillette. Advertising Age estimated globalmeasured advertising expenditure of $8.5bn in 2006, making P&G thProcter & Gamble made dramatic and long-term changes in its pricing and

promotion strategy for Pantene during which it boosted advertising whilesimultaneously curbing its distribution channel deals (in-store displays, trade deals),and significantly reducing its coupon promotions.It adopted value pricing strategy wich further influenced its future marketingdecisions.RECOMMENDATIONSP&G has a dubious pricing strategy.In india sometimes they adopt thepremium pricing and at other times they change it to value pricing.Thiscreates confusion in the mind of customer.Our recommendation is that Pantene should stick to one strategy and

develop on it.Fluctuating prices have chances to affect the mind of customersnegatively.This should be avoided.

P&G should keep up the efforts of bringing in more and more innovativeproducts.This is because ultimately nothing works for a company more thanits products.Some rumors about the presence of wax in Pantene shampoo affected themarket.Such rumors should be severly dealt with as they affect the brandloyalty as well as market share.There were some reports which said that Pantene tests its product onanimals which ultimately proves fatal to them.This created a big problem for

Pantene by the environmentalists.This project recommends Pantene to gomore herbal and environment friendly as it affects the companys image inthe long run.Pantene is still not much known in the semi urban India.Stress should be laidon the promotion of Pantene in the interior of country as well.

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