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MARKET
RESEARCH
AT P&G-THE ART OF UNDERSTANDING THE MARKET
BY DEV CHANDAN
1
BACKGROUND• Procter & Gamble was established
in 1837 at Cincinnati.
• P&G’s foray into MR was a mere
coincidence.
• From its inception, it sought product
response from customers.
• P&G used several innovative market
tools for research such as “MARKET
TESTING”.
• In late 1990’s, the extensive use of IT
helped its MR operations, which
resulted in greater efficiency and
savings in time and cost.
2
• Emphasis on PRODUCT.
• It emphasizes on quality, safety, investment in new technology.
• Failed to understand the changing needs of their customers.
3PRODUCT ORIENTED FIRMS
• Emphasis on MARKET.
• It organises its activities, products and services.
• Focusses on wants and needs of its customers.
4MARKET ORIENTED FIRMS
MARKET RESEARCH TOOLS
USED BY P&G
QUALITATIVE RESEARCH
TOOLS
QUANTITATIVE RESEARCH
TOOLS
ONLINE RESEARCH
• P&G had set up its MR
department in 1924.
• The company had two
independent in-house
research groups.
• The were responsible for
organizing customer
interviews.
• Developed set of qualitative
and quantitative research
tools and then switched to
online research.
5
QUANITATIVE RESEARCH
ANALYSIS• It refers to the systematic
investigation of social
phenomenon via statistical,
mathematical or numerical
data
• Helped in generating new
product ideas for P&G.
• The major tools used are:
• Blind tests
• Concept aided usage test
• Habits and Practices
• Quality monitoring
6
BLIND TESTS:• Used whenever items are to be
compared without influences from testers preferences or expectations.
• Comparative testing of commercial products to asses user preference without being influenced by branding.
CONCEPT AIDED USAGE TEST:• To evaluate consumer response
before the introduction of the product.
• Consumers were pre educated about a product and then their reactions are recorded.
7QUANITATIVE TOOLS
HABITS AND PRACTICES:• To capture user’s unmet needs.
• It uses opportunity index scores which identifies key areas of unmet needs.
QUALITY MONITORING:
• To check whether the products bought by the customers actually met their needs and the product design criteria.
8QUANITATIVE TOOLS
Bar Graph
Page Layout
9
Line Graph
Page Layout
0
5
10
15
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Series 1 Series 2 Series 3
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10
SWOT ANALYSIS
• Diversification
• Strong market
penetration
• Use of it
• Product availability
• Premium pricing
• Tap rural market
• Mergers and
acquisitions
• Stiff market
competition
• Saturation of
demand
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
12
24%
9%
14%
4%
30%
19%
Beauty Grooming
Health Care Snacks and Pet Care
Fabric and Home care Baby Care and Family Care
41%
20%
14%
9%
16%
North America
Western America
Central & Eastern Europe, Middle East and Africa
Latin America
Asia
P&G’s GEOGRAPHICAL
DIVERSIFICATION
P&G’s PRODUCT
DIVERSIFICATION
• Growing competition between all the leading
FMCG companies of the world.
• Diversification into different sectors apart from
healthcare and personal products.
• Revenues generated using market research has
been huge.
• They need to keep a count on the amount of
prominent law suits being filed against them.
ROADS AHEAD
THANK YOU