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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 Introduction1.2 Product Portfolio1.3 Head & Shoulder variants1.4 SKU’S & Pricing
Chapter 22.1 Distribution Channel2.2 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 & Pricing 3.7 Distribution Channel & Margin
Chapter 44.1 Data Analysis4.2 Issues4.3Recommendation
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 and Health 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 Best Employer 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. MehtaMr. D. Acharya
ORGANISATION STRUCTURE
Market Development Organization
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CORE STRENGTH
1.2 PRODUCT PORTFOLIO
Health Care
Beauty &Grooming Health & Well-Being Household Care
Global Business Services
Corporate Functions
Consumer Understanding
Scale
Go to market capabilities
Innovation
Brand Building
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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 Wings3) Whisper Ultra with Wings 4) Whisper Ultra XL Wings5) Whisper Choice
Fabric Care
1) Ariel Front-O-Mat2) Ariel Fragrances3) Tide Detergent4) Tide Bar
Hair Care
1) Pantene Pro V 2) Head & Shoulders 3) Rejoice
Baby Care1) Pamper
1.3 Head & Shoulders
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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 homes as 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 & SilkyHead & Shoulders Refreshing MentholHead & Shoulders Clean and BalancedHead & Shoulders Silky BlackHead & Shoulders Naturally CleanHead & Shoulders Nourishing Aloe Vera
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Anti-dandruff market in India
Company Brand Market share in %
P&GHead &
Shoulders58.20%
HUL Clinic All
Clear35.90%
DaburVatika Anti
dandruff5.10%
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 draft first 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...
COMPANY DEPOT
RETAILER
RETAILER
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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
MANUFACTURER
COMPANY DEPOT (C/F)
MAIN SITE/ SHIPMENT
POINT
DISTRIBUTER
RETAILER
RETAILER
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Distributor:
OM ASSOCIATES
H.O:- Plot no.276, SatyanagarBhubaneswar-7
Contact no. OfficePh.no. 0674-325522
Mr. Malay MohantiPh no.9238694343
Mr. Rout Rai (Sales Executive)Ph.no.9238694343
Mr.Tushar (logistic)Ph.no.9338079455
Mode of transportTRUCK
Territories: 20
No. of SKU’S Of P&G available: Approx 300+
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2.2 Promotion
1. From Manufacturer to Retailer Various 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 Retailer
In 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 HUL2. 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
MANUFACTUR
COMPANY DEPOT
DISTRIBUTER(SATH CHIDANANDA Trader)
RETAILER RETAILER
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C&F:Company depotMongely Square, Cuttack
Distributer:SATH CHIDANANDA TRADERB-21, Saheed Nagar
HR (executive)Mr.Grish Prasad RathPh.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 removes 100% 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 Clean2. Lively Black3. 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
MANUFACTURE
HINDUSTAN AGENCY
DISTRIBUER (Bhagwati distributer)
RETAILER RETAILER
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C/F:Hindustan AgencyMancheswar
Distributer:Bhagwati DistributerKhintamani 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
19
3
Comparison in terms of sale
Head & ShoulderClinic All ClearVatika Anti dandruff
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Product Retailer
Head & Shoulder 19
Clinic All Clear 3
Vatika Anti dandruff 0
Variants of Head & Shoulder with retailer
No. of variants No. of retailer
3 2
4 2
5 6
6 11
1 2 3 40
1
2
3
4
5
6
7
2
2
6
11
No. of variants of Head & Shoulder
No. of variants
Retailer Perception about P&G distribution
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18
3
Retailer Perception about P&G distribu-tion
SatisfiedDissatisfied
Variant sells more
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Satisfied 19
Dissatisfied 3
Variety RetailerRefreshing Menthol 14Silky Black 5smooth & silky 2
14
5
2
variety sells more
Refreshing MentholSilky Blacksmooth & silky
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
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21 retailer 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
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 demand2. Launch combo pack in which they combine fast movable varieties with slow
movable varieties like:3. MENTHOL (90 ml) + ALOE VERA (90ml) = Rs. 1504. 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
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