View
221
Download
0
Category
Preview:
Citation preview
7/27/2019 PGDM-Comm 44 Paridhi Golchha
1/20
qwertyuiopasdfghjklzxcvbnmqwerty
opasdfghjklzxcvbnmqwertyuiopasdfg
klzxcvbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnmqwe
yuiopasdfghjklzxcvbnmqwertyuiopa
dfghjklzxcvbnmqwertyuiopasdfghjklz
vbnmqwertyuiopasdfghjklzxcvbnmq
wertyuiopasdfghjklzxcvbnmqwertyu
pasdfghjklzxcvbnmqwertyuiopasdfgh
klzxcvbnmqwertyuiopasdfghjklzxcvbmqwertyuiopasdfghjklzxcvbnmqwer
uiopasdfghjklzxcvbnmqwertyuiopasd
ghjklzxcvbnmqwertyuiopasdfghjklzxvbnmqwertyuiopasdfghjklzxcvbnmrt
uiopasdfghjklzxcvbnmqwertyuiopasd
ghjklzxcvbnmqwertyuiopasdfghjklzx
Marketing Management of FMCG
PROCTER & GAMBLE
10/6/2013
Paridhi Golchha
7/27/2019 PGDM-Comm 44 Paridhi Golchha
2/20
TABLE OF CONTENTS:
SNO. TOPIC NAME PAGE NO.
1 INDUSTRY DETAILS 2
2 INTRODUCTION OF P&G 3
3 VISION AND MISSION OF P&G 3
4 VALUES AND PRINICIPLE 5
5 HISTORY AND MILESTONES 6
6 PRODUCT ANALYSIS 9
7 STP 10
8 COMPETITORS ANALYSIS 11
9 MARKET ANALYSIS 12
10 SWOT ANALYSIS 13
11 PESTEL ANALYSIS 15
12 PORTERS FIVE FORCE MODEL 16
13 BCG MATRIX 18
14 RECOMMANDATIONS AND SUGGESTIONS 19
15 BIBLIOGRAPHY 20
7/27/2019 PGDM-Comm 44 Paridhi Golchha
3/20
INDUSTRY DETAILS:
[FMCG-FAST MOVING CONSUMER GOODS]
THE TERM FMCG REFERS TO THOSE RETAIL GOODS THAT ARE GENERALLY REPLACED OR FULLY USED UP
OVER A SHORT PERIOD OF DAYS, WEEKS, OR MONTHS, AND WITHIN ONE YEAR. THIS CONTRASTS WITH
DURABLE GOODS OR MAJOR APPLIANCES SUCH AS KITCHEN APPLIANCES, WHICH ARE GENERALLY
REPLACED OVER A PERIOD OF SEVERAL YEARS.
FAST MOVING CONSUMER GOODS (FMCG) OR CONSUMER PACKAGED GOODS (CPG) ARE PRODUCTS
THAT ARE SOLD QUICKLY AT RELATIVELY LOW COST. EXAMPLES INCLUDE NON-DURABLE GOODS SUCH
AS SOFT DRINKS, TOILETRIES, GROCERY ITEMS ETC. THOUGH THE ABSOLUTE PROFIT MADE ON FMCG
PRODUCTS IS RELATIVELY SMALL, THEY GENERALLY SELL IN LARGE QUANTITIES, SO THE CUMULATIVE
PROFIT ON SUCH PRODUCTS CAN BE LARGE.
FMCGS HAVE A SHORT SHELF LIFE, EITHER AS A RESULT OF HIGH CONSUMER DEMAND OR BECAUSE THE
PRODUCT DETERIORATES RAPIDLY. SOME FMCGS SUCH AS MEAT, FRUITS AND VEGETABLES, DAIRY
PRODUCTS AND BAKED GOODS ARE HIGHLY PERISHABLE. OTHER GOODS SUCH AS ALCOHOL,
TOILETRIES, PRE-PACKAGED FOODS, SOFT DRINKS AND CLEANING PRODUCTS HAVE HIGH TURNOVER
RATES.
THE FOLLOWING ARE THE TYPICAL CHARACTERISTICS OF FMCGS:
FREQUENT PURCHASE
LOW PRICE
HIGH VOLUMES
LOW MARGINS
EXTENSIVE DISTRIBUTION NETWORKS
HIGH STOCK TURNOVER
7/27/2019 PGDM-Comm 44 Paridhi Golchha
4/20
FMCG SCOPE AND COMPANIES:
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the
production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods
(FMCG) are those consumables which are normally consumed by the consumers at a regular interval.
Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The
industry also engaged in operations, supply chain, production and general management.
FMCG Companies Worldwide
Procter & Gamble
Unilever PLC
Taj agro international (India)
Dabur India Limited
Godrej Consumer Products (GCPL)
Other Leading FMCG companies
Some of the well known FMCG companies are Sara Lee, Nestl, Reckitt Benckiser, Unilever, Procter &
Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.
INTRODUCTION OF
Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a
wide range of consumer goods. In India Proctor & Gamble have two subsidiaries: P&G Hygiene and
Health Care Ltd. and P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's
fastest growing Fast Moving Consumer Goods Companies with a turnover of more than Rs. 500 crores.
http://www.pg.com/7/27/2019 PGDM-Comm 44 Paridhi Golchha
5/20
It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric
Care segment and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric
Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment.
Proctor & Gamble's (P&G) Mission and Vision Statement
VISION of P&G To be a leading consumer goods company and to improve the lives of world consumers
by providing valuable and innovative products. Ten years ago Procter and gamble started the journey
to improve the lives of Pakistani consumers by providing them with world famous quality brands. P&G
want to be an outstanding organization with a passion for winning that would felt by everyone
everyday; in the office, in the field every where P&G vision is to lead business growth by proactively
identifying opportunities and positively contributing to volume growth.
We will provide branded products and services of superior quality and value that improve the lives of
the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value
creation, allowing our people, our shareholders, and the communities in which we live and work to
prosper.
VALUES AND PRINICPLES OF P & G
P&G is its people and the values by which we live. We attract and recruit the finest people in the world. We build our organization from within, promoting
and rewarding people without regard to any difference unrelated to performance. We act on the
conviction that the men and women of Procter & Gamble will always be our most important asset.
LEADERSHIP:
We are all leaders in our area of responsibility, with a deep commitment to deliverleadership results.
We have a clear vision of where we are going. We focus our resources to achieve leadership objectives and strategies. We develop the capability to deliver our strategies and eliminate organizational barriers.
OWNERSHIP:
7/27/2019 PGDM-Comm 44 Paridhi Golchha
6/20
We accept personal accountability to meet our business needs, improve our systems,and help others improve their effectiveness.
We all act like owners, treating the Company's assets as our own and behaving with the Company's long-
term success in mind
HISTORY OF P&G
Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a
wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health
Care Ltd. and P&G Home Products Ltd.
Procter & Gamble's relationship with India started in 1951 when Vicks Product Inc. India, a branch of
Vicks Product Inc. USA entered Indian market. In 1964, a public limited company, Richardson Hindustan
Limited (RHL) was formed which obtained an Industrial License to undertake manufacture of Menthol
and de mentholated peppermint oil and VICKS range of products such as Vicks VapoRub, Vicks Cough
Drops and Vicks Inhaler. In May 1967, RHL introduced Clearasil, then America's number one pimple
cream in Indian market. In 1979, RHL launches Vicks Action 500 and in 1984 it set up an Ayurvedic
Research Laboratory to address the common ailments of the people such as cough and cold.
In October 1985, RHL became an affiliate of The Procter & Gamble Company, USA and its name was
changed to Procter & Gamble India. In 1989, Procter & Gamble India launched Whisper - the
breakthrough technology sanitary napkin. In 1991, P&G India launched Ariel detergent. In 1992, The
Procter & Gamble Company, US increased its stake in Procter & Gamble India to 51% and then to 65%.
http://www.google.co.in/imgres?imgurl=http://deals.spotshoppingguide.com/wp-content/uploads/2009/10/procter-gamble-products.png&imgrefurl=http://deals.spotshoppingguide.com/2009/10/01/free-pg-samples/&usg=__8zat8HPy-QHcXzaJocXQZ42Za4g=&h=264&w=406&sz=154&hl=en&start=63&zoom=1&tbnid=X0hgS5L8-TBVzM:&tbnh=81&tbnw=124&prev=/images?q=p&g+products&um=1&hl=en&sa=X&biw=1362&bih=596&tbs=isch:1&um=1&itbs=1&ei=ow-4TPPkN4q8vgPDrqHLDQhttp://www.google.co.in/imgres?imgurl=http://i01.i.aliimg.com/photo/v0/107660337/Vicks_Vaporub_P_G.jpg&imgrefurl=http://www.alibaba.com/product-free/107660337/Vicks_Vaporub_P_G.html&usg=__3V0G0h44akL7p0567M4soX69QEA=&h=592&w=608&sz=38&hl=en&start=96&zoom=1&tbnid=Qn1TndXeynEPTM:&tbnh=132&tbnw=136&prev=/images?q=p&g+products&um=1&hl=en&sa=X&biw=1362&bih=596&tbs=isch:1&um=1&itbs=1&ei=pw-4TJXUEIPqvQPtt4DZDQhttp://www.google.co.in/imgres?imgurl=http://deals.spotshoppingguide.com/wp-content/uploads/2009/10/procter-gamble-products.png&imgrefurl=http://deals.spotshoppingguide.com/2009/10/01/free-pg-samples/&usg=__8zat8HPy-QHcXzaJocXQZ42Za4g=&h=264&w=406&sz=154&hl=en&start=63&zoom=1&tbnid=X0hgS5L8-TBVzM:&tbnh=81&tbnw=124&prev=/images?q=p&g+products&um=1&hl=en&sa=X&biw=1362&bih=596&tbs=isch:1&um=1&itbs=1&ei=ow-4TPPkN4q8vgPDrqHLDQhttp://www.google.co.in/imgres?imgurl=http://i01.i.aliimg.com/photo/v0/107660337/Vicks_Vaporub_P_G.jpg&imgrefurl=http://www.alibaba.com/product-free/107660337/Vicks_Vaporub_P_G.html&usg=__3V0G0h44akL7p0567M4soX69QEA=&h=592&w=608&sz=38&hl=en&start=96&zoom=1&tbnid=Qn1TndXeynEPTM:&tbnh=132&tbnw=136&prev=/images?q=p&g+products&um=1&hl=en&sa=X&biw=1362&bih=596&tbs=isch:1&um=1&itbs=1&ei=pw-4TJXUEIPqvQPtt4DZDQ7/27/2019 PGDM-Comm 44 Paridhi Golchha
7/20
In 1993, Procter & Gamble India divested the Detergents business to Procter & Gamble Home Products
and started marketing Old Spice Brand of products. In 1999 Procter & Gamble India Limited changed the
name of the Company to Procter & Gamble Hygiene and Health Care Limited.
In 1993, Procter & Gamble Home Products is incorporated as a 100% subsidiary of The Procter &Gamble Company, USA. Procter & Gamble Home Products launches Ariel Super Soaker.
In 1993, Procter & Gamble India divests the Detergents business to Procter & Gamble Home Products.
In 1995, Procter & Gamble Home Products enters the Haircare Category with the launch of Pantene Pro
In 1997 Procter & Gamble Home Products launches Head & Shoulders shampoo.
In November 2000, Procter & Gamble Home Products Limited presented India in the first International
Hair Styling and Beauty Expert Contest- Hair Asia Pacific 2000 in collaboration with Sri Lankan
Association of Hairdressers and Beautician.
During this period, Procter & Gamble Home Products also re-launched the international range of Head &
Shoulders, best-ever Anti-dandruff shampoo with an improved formula, new pack-design and logo, in
three variants - Clean & Balanced, Smooth & Silky and Refreshing Menthol, which offers the fine
combination of anti-dandruff efficacy and hair conditioning.
In January 2001, Procter & Gamble Home Products Limited and Whirlpool India Ltd. launched a special
'Ariel - Whirlpool Superwash' offer, making washing machines more affordable to the people of
Hyderabad.
On purchase of either a 500gms, 1kg or 1.5kg economy pack of New Ariel Power Compact, consumers
are automatically eligible to buy a Whirlpool Washing Machine for as low as Rs.238/- in Equal Monthly
Installments for 24 months, by filling in the application form that comes with the Ariel pack and
contacting any one of the Whirlpool dealers mentioned on the pack.
In June 2001, Procter & Gamble in partnership with the Association of Beauty Therapy & Cosmetology
(ABTC), India hosted the Pantene Artist 2001 a national stylist competition, which included categories
such as Bridal Dressing, Hair Cutting and Body Painting. Present at the event was world-renowned
hairdresser and stylist Jun L. Encarnecion, who demonstrated the hottest international haircuts and
styles in vogue via an interesting hairhsow. Mr. Encarnecion has trained students in leading hairdressing
schools like Robert Fielding School of Hair Dressing (U.K), Pierre Alexander International Academy (U.K),
7/27/2019 PGDM-Comm 44 Paridhi Golchha
8/20
Vidal Sassoon Academy, (U.S.A) among others and also enjoys the reputation of being the official
hairdresser for the 1993 Miss Universe pageant.
In April 2002, Procter & Gamble Home Products Limited announced the launch of a special Ariel Bar
Refund Offer along with its new Advanced Ariel Compact. Under the Ariel Bar Refund Offer, consumerscould exchange their detergent bar on purchase of Advanced Ariel Compacts 1kg and 500gms packs, and
avail of a Rs.15 and Rs.7 discount respectively on MRP.
Additionally, Procter & Gamble Home Products announced the Beat The Summer Dandruff offer on
which 200ml Head & Shoulders bottle was available for Rs.99/- only, thus giving a benefit of a Rs.23/-
discount to consumers.
In June 2003, Procter & Gamble Home Products Limited launched Pampers - worlds number one selling
diaper brand with sales of US$ 6 billion annually. Pampers provides superior dryness for uninterrupted
overnight sleep, with just one pampers diaper. In India, Pampers Fresh & Dry is available in a variety of
three sizes 4s, 10s and 25
In July 2003, Procter & Gamble Home Products Limited launched Pantene Long Black, the ultimate
solution for achieving the Long and Black hair look, and Head & Shoulders Silky Black - the only shampoo
in India to offer the dual benefits of 100% dandruff-free as well as silky black hair.
In January 2004, Procter & Gamble Home Products Limited announced the launch of Rejoice Asias No.
1 shampoo, in India. Rejoices patented Micro-Silicone conditioning technology gives twice as smooth,
and easy to comb hair versus ordinary shampoos, at affordable prices in 100 ml bottles and 7.5 ml
sachets.
In August 2007, Procter & Gamble Home Products Limited signed Preity Zinta Bollywood's no.1
Actress, as Brand Ambassador for its Head & Shoulders anti-dandruff shampoo that gives 100%
dandruff-free soft beautiful hair.
http://www.google.co.in/imgres?imgurl=http://www.scienceinthebox.com/en_UK/research/pic/products2.jpg&imgrefurl=http://www.scienceinthebox.com/en_UK/research/perfume_en.html&usg=__R63y71xI61kz8YYyry0K69FJWR8=&h=212&w=560&sz=37&hl=en&start=113&zoom=1&tbnid=GFmSK8VDXi4QHM:&tbnh=50&tbnw=133&prev=/images?q=p&g+products&um=1&hl=en&sa=X&biw=1362&bih=596&tbs=isch:1&um=1&itbs=1&ei=qw-4TLmmN4juvQOwlsSrDQ7/27/2019 PGDM-Comm 44 Paridhi Golchha
9/20
In October 2008, Procter & Gamble Home Products Limited launched New Pantene Amino Pro-V
Complex shampoos, which makes hair ten times stronger.
PRODCUT ANALYSIS:
PRODUCT DEPTH AND WIDTH:
Width number of different product lines
Length total number of items the company carries within product lines Depth number of versions offered of each product in line
SEGMENTATION, TARGETING AND POSTIONING
Procter & Gamble one of the world's premier consumer goods companies. Some 99 percent of all U.S.
households use at least one of P&G's more than 300 brands, and the typical household regularly buys
and uses from one to two dozen P&G brands. How many P&G products can you name? Why does this superb
marketer compete with itself on supermarket shelves by marketing seven different brands of laundry
7/27/2019 PGDM-Comm 44 Paridhi Golchha
10/20
detergent? The P&G story provides a great example of how smart marketers use segmentation,
targeting, and positioning.
PROCTER & GAMBLE: Procter & Gamble (P&G) sells seven brands of laundry detergent in the United
States (Tide, Cheer, Bold, Gain, Era, Dreft, Febreze, and Ivory Snow). It also sells six brands of hand soap
(Ivory, Safeguard, Camay, Olay, Zest, and Old Spice); five brands of shampoo (Pantene, Head &
Shoulders, Pert, Physique, and Vidal Sassoon);four brands of dishwashing detergent (Dawn, Ivory, Joy,
and Cascade); three brands each of tissues and towels(Charmin, Bounty, Puffs), and deodorant
(Secret, Sure, and Old Spice); and two brands each of fabric softener(Downy and Bounce), cosmetics
(Cover Girl and Max Factor), skin care potions (Olay and Noxema), and disposable diapers (Pampers and
Luvs). Moreover, P&G has many additional brands in each category for different international markets.
For example, it sells 16 different laundry product brands in Latin America and 19in Europe, the MiddleEast, and Africa. (See Procter &Gamble's Web site at www.pg.com for a full glimpse of the company's
impressive lineup of familiar brands.)
These P&G brands compete with one another on the same supermarket shelves. But why would P&G
introduce several brands in one category instead of concentrating its resources on a single leading
brand? The answer lies in the fact that different people want different mixes of benefits from the
products they buy. Take laundry detergents as an example. People use laundry detergents to get their
clothes clean. But they also want other things from their detergentssuch as economy, bleaching
power, fabric softening, fresh smell, strength or mildness, and lots of suds or only a few. We all want
some of every one of these benefits from our detergent, but we may have different priorities for
each benefit. To some people, cleaning and bleaching power are most important; to others, fabric
softening matters most; still others want a mild, fresh-scented detergent. Thus, there are groups or
segmentsof laundry detergent buyers, and each segment seeks a special combination
of benefits. Procter & Gamble has identified at least seven important laundry detergent segments, along
with numerous sub segments, and has developed a different brand designed to meet the special
needs of each. The seven brands are positioned for different segments as follows
? Tide provides "fabric cleaning and care at its best." It's the all-purpose family detergent that is "tough
on greasy stains."
7/27/2019 PGDM-Comm 44 Paridhi Golchha
11/20
? Cheer is the "color expert." It helps protect against fading, color transfer, and fabric wear, with or
without bleach. Cheer Free is "dermatologist tested . . . contains no irritating perfume or die."
? Bold is the detergent with built-in fabric softener and pill/fuzz removal.
? Gain, originally P&G's "enzyme" detergent, was repositioned as the detergent that gives you clean,
fresh-smelling clothes. It "cleans and freshens like sunshine. Great cleaning power and a smell that stays
clean."
? Era is "the power tool for stain removal and pre treating." It contains advanced enzymes to fight a
family's tough stains and help get the whole wash clean. Era Max has three types of active enzymes to
help fight many stains that active families encounter
? Ivory Snow is "Ninety-nine and forty-four one hundredths percent pure." It provides "mild cleansing
benefits for a pure and simple clean."
? Dreft also "helps remove tough baby stains . . . for a clean you can trust." It's "pediatrician
recommended and the first choice of mothers." It "doesn't remove the flame resistance of children's
sleepwear." Within each segment, Procter & Gamble has identified even narrower niches. For example,
you can buy regular Tide (in powder or liquid form) or any of several formulations:
? Tide with Bleach helps to "keep your whites white and your colors bright." Available in regular or
"mountain spring" scents? Tide Liquid with Bleach Alternative uses active enzymes in pre treating and
washing to break down and remove the toughest stains while whitening whites
? Tide High Efficiency "unlocks the cleaning power of high-efficiency top-loading machines" it prevents
over sudsing? Tide Clean Breeze gives the fresh scent of laundry line-dried in a clean breeze.
? Tide Mountain Spring lets you "bring the fresh clean scent of the great outdoors inside the scent
of crisp mountain air and fresh wildflowers."
? Tide Free "provides all the stain removal benefits without any dyes or perfumes."
? Tide Rapid Action Tablets are portable and powerful. It's Tide "all concentrated into a little blue and
white tablet that fits into your pocket."By segmenting the market and having several detergent brands,
Procter & Gamble has an attractive offering for consumers in all important preference groups. As a
result, P&G is really cleaning up in the $4 billion U.S. laundry detergent market. Tide, by itself, captures a
7/27/2019 PGDM-Comm 44 Paridhi Golchha
12/20
whopping 38percent market share. All P&G brands combined take a57 percent share of the market
three times that of nearest rival Unilever and much more than any single brand could obtain by itself
Main competitors:
HUL
KIMBERLY CLARK LIVER PVT. LTD.
JOHNSON AND JOHNSON
COMPETITORS ON THE BASIS OF PRODUCT
PRODUCT NAME COMPETITORS NAME
Vicks Amirtanjan Bam, Zandu Bam, Cold Snap,
Pharmao cold
Pantene Sunsilk, Clinic Plus
Ariel Surf Excel, Rin
Whisper Kotex, Stayfree
Pamper Huggies, Snuggy Baby Diapers
7/27/2019 PGDM-Comm 44 Paridhi Golchha
13/20
MARKET ANALYSIS:
SWOT Analysis:
Strengths:
Diversification: Product diversification with about300 products. The diverse product mix includes
personal and beauty items, household products, health and wellness, Baby and family and pet care and
nutrition.
Research and development: P&G invests 3 - 4 % of Net outside Sales in research and development
(R&D). This amount easily exceeds their leading competitors, among consumer products companies.
They also have more Ph.D.s working in labs around the world than the combined science and
engineering faculty at Harvard, MIT and Berkeley.
Innovation: In fiscal year 2004-05, P&G was granted 27,000 patents globally. P&G has produced a
number of new products like diapers; shampoo and conditioner in one; toothpaste that prevents
osteoporosis. Its diversified product mix helps in connecting technology across categories and brings
innovation to the product.
Fat profit margins: P&G announced net sales for the April - June quarter to $21.3 billion, the growth of
10%. This is the seventh year and 24thconsecutive quarter in which P&G delivered top-line growth
above the company's targets.
Strong brands: P&G has 13 Billion-Dollar Sales Brands such as: Always, Ariel, Bounty, Charmin, Crest,
Downy/Lenor, Folgers, Iams, Pampers, Pantene, Pringle's and Tide. The total sales of these thirteen
billion dollar brands taken together, would make a Fortune 100 company in itself.
Brand building: Advertisement expenditure of P&G is twice than the next company on the list
of companies which spend highly on advertising. Their idea of promoting product during weekday day
time slots when mostly housewives would be available helped in building the brand in a big way.
Wide distribution network: P&G markets its products in 160 countries with manufacturing capacities in
40 countries.
Leading market position: P&G is the world's largest consumer products company. P&G is the global
leader in all its 5 broad business segments.
7/27/2019 PGDM-Comm 44 Paridhi Golchha
14/20
Weaknesses:
Non-profitable products: Running products which may not be profitable but still had to do it because of
keeping up with the market presence strategy. Few such products are Crest as toothpaste, Always
hygiene pads, and Dawn dishwashing bar.
Inadequate quality control: With large number of product profile, the quality control of all the products
has deteriorated. In September 2006, P&G suspended sales of the cosmetics in China after they were
found by the authorities to contain the banned substances, chromium and neodymium. The case of Rely
tampon also establishes this fact.
Mass appeal products at premium price: Some mass appeal products like Pringles are priced very high
as compared to its competitors products.
Opportunity:
Developing markets: The economies of China and India are growing at a very fast pace. The company
currently competes in only about 10 of its top 25categories in most developing countries. This provides
P&G with an opportunity to enhance its market share as well as expand its presence in other categories.
Growing bottled water market: Bottled water is a fast-growing segment in the worlds food and
beverage market owing to increasing health concerns. In May 2007, P&G launched PUR Flavor Options,
a product that allows consumers to choose flavored or unflavored water from their home water filter.
P&G could leverage its position in the bottled water segment to capitalize on the growing demand for
packaged and flavored water.
Growing healthcare industry in the US: There is a growing opportunity for disinfectant manufacturers in
the healthcare industry in the US. The aging US population would lead to increased health care spending
in the US. P&G is well positioned in the prescription drugs and healthcare segments and can leverage
this trend to boost both its revenues and market share.
Changing consumer preference: With the consumer preferences and choices, P&G because of its huge
R&D base and Connect + Develop program is well placed to come up with new and innovative products
that may suit the customer needs..
Threats:
New regulations: Due to increasing public pressure, the US Food and Drug Administration (FDA) are
expected to impose stringent quality norms on cosmetic products. New regulations may delay launch of
new products and result in higher product development expenditure. These regulations may impose
7/27/2019 PGDM-Comm 44 Paridhi Golchha
15/20
new liabilities or increase operating expenses, either of which could result in a decline in profitability.
Competition from local low cost players: P&G faces competition from local, low-cost manufacturers in
developing countries.
Customer concentration: A significant portion of the revenues from the sale of products is derived froma few customers. Sales to Wal-Mart Stores, Inc. represent approximately 15% of its total revenue in
2007. The company gets more than billions of dollars from seven retail customers. The loss of any of
these customers will lead to a sharp decline in its revenues.
PESTEL ANALYSIS:
7/27/2019 PGDM-Comm 44 Paridhi Golchha
16/20
PORTERS 5 FORCE MODEL:
7/27/2019 PGDM-Comm 44 Paridhi Golchha
17/20
Threat of New Entrants
P&G possess a significant amount of market share around the world. To compete P&G, A competitor must have a large sum of capital for heavy marketing and R&D. Firms That Specialize in nice market could possibly become a threat to P&G corresponding
business segment.
Power of Buyers:
P&G is heavily dependent on wall mart and its affiliates for generating a major part of itsrevenue.
High dependence upon Wal-Mart could reduce the bargaining power of P&G.Power of Suppliers
Supplier of P&G need key customer for profitable revenue generation and will have littlebargaining power.
7/27/2019 PGDM-Comm 44 Paridhi Golchha
18/20
Rising interest rate and declining availability of credit ultimately should not affect P&Gsrelationship with its suppliers.
Threat of Substitutes
There are substantial no of substitutes for all of P&Gs product offerings, creating an intensecompetitive environment.
In order to differentiate itself P&G must continue to provide new and innovative products tothe customer.
RECOMMENDATIONS AND SUGGESTIONS:
http://www.pg.com/http://www.pg.com/7/27/2019 PGDM-Comm 44 Paridhi Golchha
19/20
The practice of incomplete market coverage should not be followed because you cannot hijack other
companys customers and new customers as well. All these scenarios require following strategies:
MARKET DEVELOPMENT STRATEGY:
P&G is emphasizing on urban areas while it has neglected the suburban areas, which is also a big market
for soaps like safeguard. For this purpose, they should efficiently utilize their Marketing Information
System to collect information about the demand and attitudes of the people in these areas. By using this
strategy, safeguard can fetch the customers of competitors and will be successful in building new
customers.
PRODUCT DEVELOPMENT STRATEGY:
It describes to develop new products or modify the existing products with respect to size, color,packaging, etc.
Safeguard is a well-perceived product among the customers, and at this moment, it is available in two
sizes; 75gm and 125gm, which cannot satisfy the demand of every segment. While the products of the
competitors are available in multiple sizes which provide abundant choices for purchases to customers
for example Lifebuoy Gold has 140gm and 95gm and Medicame has 80gm soap available in the market.
This provides an opportunity to the customer to have multiple choices. It can be a threat for the market
share of safeguard. On the other hand, in case of safeguard the choice to customer is very limited.
Therefore, it is necessary that safeguard should be available in maximum possible sizes to meet the
selection criteria of the customer. As far as launching of new product is concerned, it is not necessary for
P&G at this moment, but in future, they will require taking this step as well because they have some
other soap like ivory, and zest which are very famous in international market.
MARKET PENETRATION STRATEGY:
It describes that a company tries to sell more of its product by introducing new supplementary uses.
Safeguard is that product, which contains such chemicals useful for beauty care as well. This
characteristic, we have analyzed through its product formula. Therefore, it is more useful to supplement
7/27/2019 PGDM-Comm 44 Paridhi Golchha
20/20
this idea with existing safeguard or introduce safeguard into different pack sizes especially for capturing
the female customers.
BIBLIOGRAPHY:
www.p&g.com www.wikipedia.com www.mbaboast.com www.ebooks.com www.times.com
THANK YOU
Recommended