HUL AND P&G

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NEED/OBJECTIVES OF THE STUDY

To identify the difference between market

performance of HUL and P&G.

TO compare various parameter like :

1. Marketing mix

2. Financial analysis

3. Market share

4. Products

5. Strengths, Weaknesses, Opportunities & Threats

etc. for the two companies.

To study the level of customer satisfaction in HUL and

P&G.

To study customer buying behaviour.

To study consumer preferences.

To study the consumer trend in tele-communication

sector.

To study competitive marketing strategies adopted by

HUL and P&G.

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. INTRODUCTION

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer

Goods Company, touching the lives of two out of three Indians with over 20

distinct categories in Home & Personal Care Products and Foods & Beverages.

The company‟s Turnover is Rs. 17,523 crores (for the financial year 2009 –

2010).

HUL is a subsidiary of Unilever, one of the world‟s leading suppliers of fast

moving consumer goods with strong local roots in more than 100 countries

across the globe with annual sales of about €40.5 billion in 2008. Unilever has

about 52% shareholding in HUL.

Hindustan Unilever was recently rated among the top four companies globally

in the list of “Global Top Companies for Leaders” by a study sponsored by

Hewitt Associates, in partnership with Fortune magazine and the RBL Group.

The company was ranked number one in the Asia-Pacific region and in India.

The mission that inspires HUL's more than 15,000 employees, including over

1,400 managers, is to help people feel good, look good and get more out of life

with brands and services that are good for them and good for others. It is a

mission HUL shares with its parent company, Unilever, which holds about 52 %

of the equity.

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COMPANY PROFILE AND STRUCTURE

Date of Establishment 1933

Revenue 4275.18 ( USD in Millions )

Market Cap 591452.8929621 ( Rs. in Millions )

Corporate Address Hindustan Lever House,165/166 Backbay

Reclamation, Mumbai-400020, Maharashtra

www.hll.com

Management Details Chairperson - Harish Manwani

MD - Nitin Paranjpe

Directors - A Narayan, Ashok K Gupta, C K

Prahalad, D S Parekh, D Sundaram, Dhaval

Buch, Douglas Baillie, Gopal Vittal, Harish

Manwani, Nitin Paranjpe, Pradeep Banerjee, R

A Mashelkar, S Ramadorai

Business Operation Household & Personal Products

Background Hindustan Unilever (HUL) is the largest fast

moving consumer goods (FMCG) company, a

leader in home & personal care products and

foods & beverages. HUL's brands are spread

across 20 distinct consumer categories,

touching lives of every 2 out of 3 Indian.

It has employee strength over 15000 & 1200

managers. It has created widespread network

through its 2000 suppliers & associaties.There

75

Financials Total Income - Rs. 208102.045 Million ( year

ending Mar 2009)

Net Profit - Rs. 25007.057 Million ( year

ending Mar 2009)

Company Secretary Ashok K Gupta

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PRODUCTS

TEA COFFE PROCESSED ICE-CREAM WATER

FOOD

BEVERAGE = 12% PACKAGED FOOD = 6% OTHERS =3%

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FABRIC CLEANING SOAPS HAIRCARE SKIN &TOOTHCARE

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ASIAS

ASIA`S BEST EMPLOYER BRAND AWARD OF 2011

GOLDEN PEACOCK GLOBAL AWARD FOR CORPORATE SOCIAL

RESPONSIBILITY FOR YEAR 2011

GOLDEN PEACOCK ENVIROMENT AWARD FOR 2011 IN FMCG CATEGORY

6 EMVIES IN 2011

6TH MOST INNOVATIVE COMPANY GLOBLLY-FORBES

EQ*AT 89 (WORLD CLASS LEVEL)

VALUE AWARD BY TESCO INDIA

Hul has won many awards globally. HUL is country’s largest

exporter,recognized as a GOLDEN SUPER STAR TRADING HOUSE by the

government of india. Mission that inspires HUL is “ADD VITALITY TO LIFE”.

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Closeup is the original youth brand of India. The first brand targeting youth in

the oral care market. Closeup was the first gel toothpaste to be launched in

India and has led the gel toothpaste segment ever since. In 2004, Closeup was

re-launched with a bang. And this time it was packed with the power of

Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride, Mouthwash

and Micro whiteners, the perfect combination of ingredients for fresher breath

and stronger, whiter teeth. The brand umbrella also includes Closeup Lemon

Mint, gel toothpaste with the whitening benefits of lemon. The latest entry in

the Closeup stable is Closeup Milk Calcium – revolutionary new toothpaste

with the goodness of milk calcium in an industry-first core-in-sheath format,

with white milk calcium nutrient on the inside and a refreshing blue gel on the

outside.

Dove soap was launched in 1957. The skin's natural pH is slightly acidic 5.5-6.

Ordinary soaps tend to be alkaline, with pH higher than 9. Dove is formulated

to be pH neutral (pH between 6.5 and 7.5) and to be mild on skin. This makes it

suitable for all skin types for all seasons. Dove Body Wash is available in select

outlets. Since the 1980s, for example, Unilever has launched a moisturising

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body-wash, deodorants, body lotions, facial cleansers, shampoos and

conditioners, providing a comprehensive range of solutions.

Based on a revolutionary breakthrough in skin lightening technology, Fair &

Lovely was launched in 1978. The Hindustan Lever Research Centre developed

technology, based on research in the science of skin lightening to develop Fair

& Lovely. The formulation is patented. . The brand today offers a range of

products, including Ayurvedic Fair & Lovely Fairness cream, Fair & Lovely Anti-

Marks cream, Fair & Lovely Oil control Fairness Gel and Fair & Lovely Fairness

Soap. The latest has been the Perfect Radiance, a complete range of 12

premium skincare solutions from Fair & Lovely.

Since 1929, Lux , offers an exciting range of soaps and Body Washes with

unique elements to make bathing time more pleasurable. One can choose

from a range of skincare benefits like firming, fairness and moisturising. Lux

stands for the promise of beauty and glamour as one of India's most trusted

personal care brands .It continues to be a favourite with generations of users

for the experience of a luxurious bath. Lux has offered a range of soaps in

different colours and world class fragrances. Lux is a beauty soap of film stars –

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New Lux Strawberry & Cream and Lux Peach & Cream contain a blend of

succulent fruits & luscious Chantilly cream that melts down into your skin

making it soft and smooth

Pepsodent, launched in 1993, was the first toothpaste with a unique anti-

bacterial agent to meet the consumer need of checking germs even hours after

brushing. Pepsodent packs included a Germ Indicator in February-May 2002,

which allowed consumers to see the efficacy in fighting germs for themselves. .

Pepsodent connects directly with kids and their parents. Pepsodent has always

worked in the direction of an overall awareness of dental health. Pepsodent

also includes a range of toothbrushes.

Business Segments

Soaps and Detergents (46% Revenue, 44% EBIT): This segment includes

Laundry and Personal Wash products like soaps, detergent bars, detergent

powders, detergent liquids etc. Sales of the segment grew sales by 13.9% and

20.3% in CY07 and H1CY08 respectively. Fabric Wash has shown strong growth

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in this year with the market share moving up from 34.6% in Q4CY06 to 38.3%

in Q2CY08 Profitability margins which declined from 25.7% in CY'02 to 13.7 %

in CY'05 due to pricing actions from P&G in the Laundry segment have slightly

recovered to 15.6% (CY'07).

Personal Care Products (26% Revenue, 46.2% EBIT) : This business which

comprises mainly skin care, hair care and oral care is the most profitable

segment for HUL .It is highest contributor to HUL’s EBIT at 47%. This segment

has shown a revenue growth of 20.9% in H1CY08 and the new launches in the

Ponds and Dove range contributed to the profitability of the segment.

Beverages (11% Revenue,10.3% EBIT) : HUL's beverages business is

operated through the Brooke Bond and Lipton brands for packet tea and Bru

brand for coffee. With the aggressive relaunch of Brooke Bond, Taj Mahal and

Taaza, the company has been able to arrest the decline in its market share.

Overall margins have declined to 15% in CY'07 from 20% in CY'04 due to hike in

Coffee bean prices.

Foods (4% Revenue, 0.8% EBIT) :In spite of having one of the best

distribution networks (coverage of 6.3 mn outlets) in the country, the food

business has never constituted a big part of revenues.Thats why this is the

current focus area for the company. Presence in the foods category is mainly

through soup mix, Chinese meal maker, jams, ketchups and salts. HUL is clearly

keeping a low profile in the staples category, which is low margin business.

Ice Cream(1% Revenue, 0.6%EBIT) : This segment includes Ice Creams and

Frozen Desserts.Kwality Wall's, launched in 1995, is the company's master

brand for ice cream. It has launched Moo brand that boosts children’s calcium

levels in the June quarter of CY07.

Exports : Exports include sales of Marine Products, Castor, etc. as well as

sales of soaps and detergents, personal products, beverages and foods etc. by

the Exports Division. Exports are the lowest-margin business for the company.

It has already exited the low-margin shrimps and castor business.

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Others: This section includes Chemicals,Water purifiers, Agri seeds,

Property Development, Water business, etc. It has seen a growth of 41.5% as

Pure It (a water purifier product) increased its reach to more than 600 towns.

Unilever Principles Mission and Vision

Unilever products touch the lives of over 2 billion people every day – whether

that's through feeling great because they've got shiny hair and a brilliant smile,

keeping their homes fresh and clean, or by enjoying a great cup of tea,

satisfying meal or healthy snack.

A clear direction

The four pillars of our vision set out the long term direction for the company –

where we want to go and how we are going to get there:

We work to create a better future every day.

We help people feel good, look good and get more out of life with

brands and services that are good for them.

We will inspire people to take small everyday actions that can add up to

a big difference for the world.

We will develop new ways of doing business that will allow us to double

the size of our company while reducing our environmental impact.

We've always believed in the power of our brands to improve the quality of

people’s lives and in doing the right thing. As our business grows, so do our

responsibilities. Considering the wider impact of our actions is embedded in

our values and is a fundamental part of who we are.

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Principles:

Our corporate purpose states that to succeed requires "the highest standards

of corporate behaviour towards everyone we work with, the communities we

touch, and the environment on which we have an impact."

Always working with integrity:

Conducting our operations with integrity and with respect for the many

people, organisations and environments our business touches has always been

at the heart of our corporate responsibility.

Positive impact :

We aim to make a positive impact in many ways: through our brands, our

commercial operations and relationships, through voluntary contributions, and

through the various other ways in which we engage with society.

Continuous commitment:

We're also committed to continuously improving the way we manage our

environmental impacts and are working towards our longer-term goal of

developing a sustainable business.

Working with others:

We want to work with suppliers who have values similar to our own and work

to the same standards we do. Our Business partner code, aligned to our own

Code of business principles, comprises ten principles covering business

integrity and responsibilities relating to employees, consumers and the

environment.

HUL has consistently been the top advertisement spender over the years with

expenditure of Rs 650 crore in the year 2008. Second largest spending is Rs 240

crore by a telecom company. P&G India and Colgate-Plamolive, other FMCG

players, also feature in the top 10 advertisers list. HUL has increased its

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advertising expenses by 26.56% in CY'07.Also the money spent in Research and

Development which facilitates new product launches and re-launches of

existing products has seen a raise by 38.16% in the same year. Pricing scenario

in current time is in favor of companies but in past due to pricing war with P&G

in Soaps and Detergents, HUL's magins in the segment declined from a high of

25.7% in CY02 to 13.7% in CY05.

COMPETITION

Last Market Cap. Sales Net Profit Total

Price (Rs.cr) turnover assets

HUL 290.40 63,322.88 20,601.56 2,496.45 2,483.46

Dabur 140.00 12,117.00 2,417.91 373.56 877.17

Colgate 669.45 9,104.04 1,770.82 290.22 220.98

Godrej 222.75 5,723.65 1,088.01 161.55 599.80

consumer

P & G 1,074.85 3,489.04 645.02 131.41 346.64

Gillette 920.55 2,999.63 588.84 117.37 425.40

Emami 414.15 2,573.74 651.01 67.36 324.20

Jyothy 114.10 828.01 350.85 40.88 352.51

Labs

The above table shows the competition among the Indian FMCG brands. HUL is the leader of the market with maximum market capitalization and maximum sales turnover. The Net Profit stood at whooping 2500 crore approximately. HUL has Dominated the FMCG market but now faces a lot of competitors like ITC , Procter & Gamble, Godrej Consumer products,etc.

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BIGGER BETTER & FASTER I NNOVATIONS.

Dove moisturing oil care Lakme Sun Expert. Now more accessible

range. with Re.1 sachet.

Kisan range expanded and relaunced

Cup-a-soup instant Fair & Lovely future tube Soupy Noodles Rs.5 pack.

noodles.

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FINANCIAL PERFORMANCE

Rs. Crore 2008-09^ 2009-10 2010-11 2011-12

Net Sales 20,239 17,524 19,381 21,736

Operating Profit

2,845 2,566 2,458 3,073

Operating Profit Margin

14.1 14.6 12.7 14.1

Net Profit 2,496 2,202 2,306 2,691

Earning Per Share (Rs.)

11.46 10.10 10.58 12.46

Net Cash Flow from Operating Activities

2029 3441 1892 2870

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CHALLENGES BEFORE HUL

1. Competition in Core Categories.

2. Raw materials.

3. Consumer income reduction.

4. Emerging player.

5. Advertising expenditure.

6. Price positioning.

7. Competitors focusing single category.

8. Consumer behaviour.

9. Global Exposure.

10. Changing habits.

11. Confused with competitor‟s product.

12. Traditional habits.

13. Go Further-Go Faster.

14. Challenge conventional wisdom.

15. Creating a different mind set.

16. Make something from a waste.

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HUL CORPORATE SOCIAL RESPONSIBILITY

Provided income-generating opportunities to 45,000 Shakti

entrepreneurs in rural areas across 15 states in 100,000

villages through Project Shakti

Lifebuoy Swasthya Chetna has touched 120 million people

in more than 50000 villages across India since 2002

Fair and lovely foundation has awarded more than 790

scholarships to women with limited financial resources for

higher studies

HUL & vanrai have undertaken a forestation in the area

bringing close to 40 hectares of land under mango plantation

Reduced CO2 emissions from energy manufacturing

operations by 28% (measured per tonne of production over

2004 baseline). More than 75% of the units are zero

discharge sites.

HUL also contributes in case of national

calamities such as earthquake in Gujarat and tsunami in

south India through welfare measures.

In 2001 the company started a program called SHAKTI in

which they provide opportunities to rural women to improve

their livelihood & standard of living

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BCG Matrix

The BCG matrix method is based on product life cycle theory

that can be used to determine what priorities should be given

in the product portfolio of a business unit.

To ensure long term value creation, a company should have a

portfolio of product that contain both high growth product in

need of cash input and low growth products that generate lot

of cash.

It has two dimension :I .Market Share

II. Market Growth

The basic idea behind it is that bigger the market share a

product has or the faster products market grows the better it is

for company.

STARS (high growth, high market share)

Stars are using large amounts of cash. Stars are leaders in the

business. Therefore they should also generate large amounts

of cash.

Stars are frequently roughly in balance on net cash flow.

However if needed any attempt should be made to hold your

market share in Stars, because the rewards will be CashCows

if market share is kept

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CASH COWS (low growth, high market share)

Profits and cash generation should be high. Because of the

low growth, investments which are needed should be low.

Cash Cows are often the stars of yesterday and they are the

foundation of a company.

DOGS (low growth, low market share)

Avoid and minimize the number of Dogs in a company.

Watch out for expensive „rescue plans‟

Dogs must deliver cash, otherwise they must be liquidated.

QUESTION MARKS (high growth, low market share)

Question Marks have the worst cash characteristics of all,

because they have high cash demands and generate low

returns, because of their low market share

If the market share remains unchanged, Question Marks will

simply absorb great amounts of cash.

Either invests heavily, or sells off, or invests nothing and

generates any cash that you can. Increase market share or

deliver cash.

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BCG Matrix of HUL

Relative Market share(Cash Generation)

HIGH LOW

STAR

LUX SUNSILK SURF EXCEL FAIR & LOVELY

QUESTION MARK

RIN PEPSODENT

CASH COW

AXE Vaseline petroleum jelly

DOG

WHEEL

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SWOT - HUL

Strengths

1. Strong and well differentiated brands with leading share positions

2. Distinctly placed products providing reach to every segment of society.

3. Integrated supply chain and well spread manufacturing units

4. Distribution structure with wide reach, high quality coverage – The launch of

project “Shakti” has helped HUL to create brand awareness and extensive

reach in rural India.

5. Access to Unilever global technology, capability and sharing of best practices

from other Unilever companies.

6. Well placed to take advantage of growth in rural India and lower strata of

the society through “Shakti”.

7. It could look at introducing products from its parent company like margarine

in order to cater to changing consumer tastes and opportunities in food sector.

8. It can be a leader in exports by positioning itself as a sourcing hub for

Unilever companies in various countries.

Weaknesses

1. Price positioning in some categories allows for low price competition like

Amul captured Kwality’s market.

2. Limited success in changing eating habits of people.

3. Competitors focusing on a particular product and eating up HUL’s share, like

Nirma focusing on soaps and detergents.

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Opportunities

1. Growing consumer base due to increasing income levels and new consumers

from lower strata of the society

2. Untapped market in branded Ayurvedic medicines and other such consumer

products.

3. Opportunity in Food sector: changing consumer tastes

4. Expansion of horizons towards more and more countries

Threats

1. Unfavourable raw material prices due to inflation, reducing profitability.

2. Heavy onslaught of competition in the core categories from emerging

players like ITC will result in higher advertising expenditure

3. Spurious/counterfeit products in rural areas and small towns.

4. Reduction in real income of consumers due to high inflation.

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Hindustan Unilever (Marketing Mix).

Marketing Mix is a conceptual framework which highlights the principal

decisions that marketing managers make in configuring their offerings to suit

Customer’ The products offered by HUL are Home care brands, Personal Care

Brands, Food Brands, Water, Nutrition, Health, Hygiene & Beauty.

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1. PRODUCT

Attributes :

a) Safety:- The HUL Research Centre (HURC)

b) Services:- Focus on after sales services in case of any product defect or any

other issues.

c) Proper Packaging:- Laminated Papers and Plastic, & Corrugated Boxes

d) Quality:- Company tries to follow Total Productive Maintenance(TPM) in

order to make zero loss & zero errors.

e) Brand Name:- With over 20 lakhs customer, over 2000 suppliers, over 16500

employees makes this company a very popular brand.3. Appearance of

product is very attractive & complete information of product makes customer

buy the products as per needs.

2. PRICE

a) Offers brands with various price range.

b) The prices of the products are such that it is affordable to all income group.

c) Competitive rates as compared to its peers.

d) Discounts are offered on various products depending upon the products. (Rs

10 off on 2kg detergent powder). 1+1 free offers, seasonal discounts etc.

e) It has psychological factor on consumer’s mind as it offers products from

lower range to higher range.

3. PLACE

a) First company in India to introduced shampoo sachet forrural population.

b) Covers both mass & niche Markets.

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c) Also uses Direct Selling Channels, i.e franchisee to entire population, Eg:-

Aviance & Ayush.

d) Focuses on short supply chain distribution.

e) Sales takes place through retail, & wholesale distribution.

f) Builds & strengthens the market where already presence of HUL exists.

g) Conducting survey about the products & their preferences.

h) Covers intensive distribution.

4. PROMOTION

a) Creating Product awareness through advertisement & information on the

website.

b) Arousing Interest amongst consumer through stalls on the road or

outside shops etc. and showing live demonstration of the product.

c) Share Knowledge about the products verbally or through print & electronic

media, so that consumers knows all the details about the

product.

d) Share Benefits includes the shampoo scathes or any discount coupons

attached in the newspapers

e) A Statement is created through quality of the product & the

response company receives once consumers uses them.

f) Sales Push is done through free samples, introduction of a new

product at lower price, contest (online & offline), celebrities

endorsing the company‟s products.

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PROCTER & GAMBLE

The company began to build factories in other locations in the United

States because the demand for products had outgrown the capacity

of the Cincinnati facilities. The company's leaders began to diversify

its products as well and, in 1911, began producing Crisco, a

shortening made of vegetable oils rather than animal fats. As radio

became more popular in the 1920s and 1930s, the company

sponsored a number of radio programs. As a result, these shows

often became commonly known as "soap operas."

Procter & Gamble headquarters in Downtown Cincinnati, Ohio

The company moved into other countries, both in terms of

manufacturing and product sales, becoming an international

corporation with its 1930 acquisition of the Thomas Hedley Co.,

based in Newcastle upon Tyne, England. After this acquisition,

Procter & Gamble had their UK Headquarters at 'Hedley House' in

Newcastle upon Tyne, until quite recently. Numerous new products

and brand names were introduced over time, and Procter & Gamble

began branching out into new areas. The company introduced Tide

laundry detergent in 1946 and Prell shampoo in 1947. In 1955,

Procter & Gamble began selling the first toothpaste to contain

fluoride, known as Crest. Branching out once again in 1957, the

company purchased Charmin Paper Mills and began manufacturing

toilet paper and other paper products. Once again focusing on

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laundry, Procter & Gamble began making Downy fabric softener in

1960 and Bounce fabric softener sheets in 1972. One of the most

revolutionary products to come out on the market was the

company's Pampers, first test-marketed in 1961. Prior to this point

disposable diapers were not popular, although Johnson & Johnson

had developed a product called Chux. Babies always wore cloth

diapers, which were leaky and labor intensive to wash. Pampers

provided a convenient alternative, albeit at the environmental cost

of more waste requiring landfilling.

Procter & Gamble acquired a number of other companies that

diversified its product line and significantly increased profits. These

acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals

(the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema),

Shulton's Old Spice, Max Factor, and the Iams Company, among

others. In 1994, the company made headlines for big losses resulting

from leveraged positions in interest rate derivatives, and

subsequently sued Bankers Trust for fraud; this placed their

management in the unusual position of testifying in court that they

had entered into transactions that they were not capable of

understanding. In 1996, Procter & Gamble again made headlines

when the Food and Drug Administration approved a new product

developed by the company, Olestra. Also known by its brand name

'Olean', Olestra is a lower-calorie substitute for fat in cooking potato

chips and other snacks.

Procter & Gamble has dramatically expanded throughout its history,

but its headquarters still remains in Cincinnati.

In January 2005 P&G announced an acquisition of Gillette, forming

the largest consumer goods company and placing Unilever into

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second place. This added brands such as Gillette razors, Duracell,

Braun, and Oral-B to their stable. The acquisition was approved by

the European Union and the Federal Trade Commission, with

conditions to a spinoff of certain overlapping brands. P&G agreed to

sell its SpinBrush battery-operated electric toothbrush business to

Church & Dwight. It also divested Gillette's oral-care toothpaste line,

Rembrandt. The deodorant brands Right Guard, Soft & Dri, and Dry

Idea were sold to Dial Corporation.[5] The companies officially

merged on October 1, 2005. Liquid Paper, and Gillette's stationery

division, Paper Mate were sold to Newell Rubbermaid. In 2008, P&G

branched into the record business with its sponsorship of Tag

Records, as an endorsement for TAG Body Spray.[6]

P&G's dominance in many categories of consumer products makes

its brand management decisions worthy of study.[7] For example,

P&G's corporate strategists must account for the likelihood of one of

their products cannibalizing the sales of another.[

P&G exited the food business in 2012 when it sold its Pringles snack

food business to Kellogg's for $2.75bn after the $2.35bn deal with

former suitor Diamond Foods fell short.[10] The company had

previously sold Jif peanut butter and Folgers coffee in separate

transactions to Smucker's.

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Procter & Gamble Co. PROFILE

Type Public (NYSE: PG)

Founded 1837

Headquarters One Procter & Gamble

Plaza, Cincinnati, Ohio USA

Key people A. G. Lafley, Chairman and CEO

Industry Consumer goods

Revenue ▲ US$83.503 billion(2008)

Net income ▲ US$12.075 billion(2008)

Employees 138,000

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PRODUCTS

Ariel laundry detergent

Bounty paper towels, sold in the United States and Canada

Dawn dishwashing detergent

Duracell batteries and flashlights

Fusion five blade cartridge and razors.

Gain fresh smelling liquid and powder laundry detergents,

liquid fabric softener,dryer sheets and dish washing liquid

Gillette, variety of razors for men and women, shaving cream

for men, body wash for men, shampoo for men, deodorant and

anti-perspirant for men

Head & Shoulders shampoo

Olay Personal and beauty products

Oral-B inter-dental products, such as Oral-B Glide

Pampers disposable diapers and moist towelettes

Pantene hair care products

Tide variety of liquid and powder laundry detergents, stain

remover for laundry and stain remover pen

Vicks cough and cold

Wella hair care products

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Ambi Pur

Though we strive hard to keep our homes and our cars clean and tidy,

the results are rarely satisfactory. Odours that linger in our homes just

before guests arrive, or a persistent stench that never leaves the car,

not only adversely affect our mood, but also that of our guests. With

this in mind, P&G experts have bottled the fragrance of freshness

with the new Ambi Pure range for both homes and cars.

Ariel

Introduced in 1991, Ariel was the first to bring the 'compact detergent'

technology, the enzyme technology for safe and superior stain-

removing power and the 'smart eyes' technology into India, with an

aim of becoming India's best stain removal detergent. Ariel contains

safe ingredients for all fabrics under recommended usage conditions

for laundry. The Ariel product range in India includes different

variants to meet your specific needs like Ariel OxyBlu, Ariel Oxyblu

Ultramafic, Ariel Front O Mat, Ariel 2in1.

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Duracell

Duracell batteries have a history of providing dependable power when

and where you need it the most. Our range of Batteries gives you the

right power for all your device needs, providing up to 10x

performance. The product range in India includes Duracell and

Duracell Ultra. Duracell is available in sizes AAA, AA, C, D, and 9-

volt while Duracell Ultra is available in sizes AA and AAA sizes.

Gillette

Gillette® has been at the heart of men‟s grooming for over 100 years.

Each day, more than 600 million men around the world trust their

faces and skin to Gillette‟s innovative razors and shaving products

designed for the unique needs of men – helping them to look, feel and

be their best every day. The razor range in India includes Gillette

Vector, Gillette Mach3, Gillette Mach3 Turbo, Gillette Guard and

Gillette Mach3 Turbo Sensitive and Gillette Fusion. The Shave Care

range includes Gillette Fusion Hydra Gel, Gillette Series Sensitive

Skin Foam, Gillette Series After Shave & Gillette Classic Shave

Foam Sensitive Skin. The Gillette Skincare regimen is a no-fuss and

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efficient solution in caring for the health and appearance of men‟s

skin and includes a special range of designed-for-men Gillette

Skincare Foaming Wash, Gillette Skincare Scrub, Gillette Skincare

Facial Moisturizer with Aloe Vera, Gillette Skincare Facial

Moisturizer with SPF and Gillette Skincare Lotion 100ml.

Head & Shoulders

Since 1950, Head & Shoulders has been at the forefront of scalp and

hair science, significantly advancing the treatment of dandruff and

scalp problems. Along with professional advice and expert insight we

have a wide range of products to care for your scalp and nurture your

hair.

Head & Shoulders is available in 8 variants in India including Men

Hair Retain, Complete Care for Dry Scalp, Anti Hair fall, Smooth &

Silky, Cool Menthol, Clean & Balanced, Thick & Long & Silky

Black.

Olay

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Olay is a product truly born in love created by Graham Wulff for his

wife Dinah in 1950s to address her frustration with the then thick and

waxy beauty creams. Today, Olay is one of the most recognizable

brands in the world. Yet through all the changes and innovations, the

philosophy upheld by Graham Wulff remains just as relevant as ever:

Help women look and feel beautiful and Challenge what‟s possible

with their skin. The Olay portfolio in India covers Base Moisturizer,

Anti Ageing and Olay Whitening. The Anti Aging range includes

Olay Regenerist, Olay Total Effects, and Olay Age Protect. The Olay

Whitening range includes Olay White Radiance and Olay Natural

White. The Base Moisturizer includes Olay Moisturizing Lotions and

Creams

.

Oral-B continuously strives to work closely with the dental

professionals and deliver high quality products, which make us

leaders* in the $ 4.5 billion toothbrush category, marketing

toothbrushes for children & adults, as well as inter-dental products

such as Dental Floss. In India, Oral-B has an innovative range of

toothbrushes including CrossAction Pro-health 7 Benefits,

CrossAction Pro-health Superior Clean and Advantage Sensitive

toothbrush. Oral-B‟S floss range includes Ultra Floss & Essential

Floss.

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Pampers

As a result of constant research and innovation in understanding the

needs of babies at various stages of development, Pampers Active

Baby has been voted as the best diaper by Indian moms with the

guarantee of superior dryness for an uninterrupted sleep of 12 hours.

Pampers has an answer for all your needs with its innovative product

range that includes Pampers, Pampers Active Baby, Pampers Active

Baby Pants, all designed especially for providing a night of Golden

Sleep for the baby.

Pantene

The New Pantene Amino Pro-V Complex range of shampoo &

conditioner comes in three variants suited for individual needs -

Pantene Nourished Shine, Pantene Hair Fall Control & Pantene

Smooth & Silky. Enriched with the goodness of pro-vitamins and

three essential aminos, Pantene restores your hair with its lost beauty

while making your hair ten times stronger.

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Tide

Tide is the World’s Oldest & Most Trusted Detergent brand and

is the Market Leader in 23 Countries around the world.

Launched in India in mid-2000, Tide provides ‘Outstanding

Whiteness’ on white clothes & excellent cleaning on coloured

clothes as well. Tide’s Fabric Whitening Agents clean clothes

without bleaching or removing colour from a garment. The Tide

range in India includes Tide (Detergent) and Tide (Bar with

Whiteons). Tide Naturals was launched in India in December

2009. Packed with the benefits of lemon and chandan, it provides

great cleaning while keeping the hands soft.

Vicks

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Vicks has long been invested in the science and research of

respiratory health and through that dedication has developed a wide

range of therapeutic products that offer effective relief for all the

major signs and symptoms of the common cold, flu and sinus pain

and pressure. The Vicks product range in India includes Vicks Cough

drops, Vicks Vaporub, Vicks Inhaler, Vicks Vapocool, and Vicks

Action 500 Extra.

Wella Kolestint with it deep, long lasting colour has mesmerized

Indian women. No doubt, 96% Indian women say that it is the best

hair colour they have ever used. Wella Kolestint packs are available

in 12 vibrant shades in beauty stores across India. Each pack comes

with a complete hair colour kit to give deep, long lasting colour

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BCG MATRIX.

Stars -high growth markets with a relatively high market share

(Heavy investments) Cash Cows -high share of a low growth market

(High profit). Question Marks (Problem Child) -low share of a high

growth market (Large cash to sustain their marketplace). Dogs -low

share of a low growth market (Cash traps).

The BCG Growth-Share Matrix is based on two dimensional

variables: relative market share and market growth. They often are

pointers to healthiness of a business (Kotler 2003, McDonald 2003).

In other words, products with greater market share or within a fast

growing market are expected to yield relatively greater profit margins.

The reverse is also true. Let‟s look at the following components of

the model :

Relative Market Share

According to the proponents of the BCG (Herndemson 1972), It

captures the relative market share of a business unit or product. But

that is not all! It allows the analysed business unit be pitted against

its competitors. As earlier emphasized above, this is due to the

sometime correlation between relative market share and the

product’s cash generation. This phenomenon is often likened to the

experience curve paradigm that when an organisation enjoys lower

costs, improved efficiency from conducting business operations

overtime. The basic tenet of this postulation is that the more an

organisation performs a task often; it tends to develop new ways in

performing those tasks better which results in lower operating cost

(Cipher 2006). What that suggests is that the experience curve effect

requires that market share is increased to be able to drive down

costs in the long run and at the same time a company with a

dominant market share will inevitably have a cost advantage over

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competitor companies because they have the greater share of the

market. Hence, market share is correlated with experience.

Market Growth

Market growth axis, correlates with the product life cycle paradigm,

and predicates the cash requirement a product needs relative to the

growth of that market. A fast growing market is generally considered

attractive, and pulls a lot of organisation’s resources in an effort to

increase gains. A case in point is the technological market widely

consider by experts as a fast growing market, and tends to attract a

lot of competition. Therefore, a product life cycle and its associated

market play a key role in decision-making.

Cash Cows

These products are said to have high profitability, and require low

investment for the fact that they are market leaders in a low-growth

market. This viewpoint is captured by the founders themselves thus:

The cash cows fund their own growth. They pay the corporate

dividend. They pay the corporate overhead. They pay the corporate

interest charges. They supply the funds for R&D. They supply the

investment resource for other products. They justify the debt

capacity for the whole company.

According to experts, surplus cash from cash cow products should be

channelled into Stars and Questions in order to create the future

Cash Cows.

Example: Head & Shoulder, Ariel.

Stars

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Stars are leaders in high growth markets. They tend to generate large

amounts of cash but also use a lot of cash because of growth market

conditions.

Example: Gilette, Pampers.

Question Marks

Question Marks have not achieved a dominant market position, and

hence do not generate much cash. They tend to use a lot of cash

because of growth market conditions.

Example: ORAL-B

Dogs

Dogs often have little future and are big cash drainers on the

company as they generate very little cash by virtue of their low

market share in a highly low growth market.

Example: Camay.

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Amounts in millions, except per share amounts

2012 2011 2010 2009

Net Sales in $ 83,680 82,559 78,938 76,694

Operating Income 13,292 15,818 16,021 15,374

Net Earnings 10,756 11,797 12,736 13,436

Net Earnings Margin from

Continuing Operations 11.1% 14.3% 13.9% 13.9%

Diluted Net Earnings per

Common Share from Continuing

Operations (1)

$3.12 $3.93 $3.53 $3.39

Diluted Net Earnings per

Common Share 3.66 3.93 4.11 4.26

Dividends Per Common Share 2.14 1.97 1.80 1.64

SWOT Analysis- Strengths :

Leading Market Position

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Diversified and innovative product Portfolio

Strong Finances in past years

Strong brand image.

Strong customer loyalty.

Diversified Business Structure.

SWOT analysis- Weaknesses :

Quality control Problem

Decreased Revenues in their Northeast Asian Market

. SWOT analysis- Opportunities :

Developing Markets

Demographic trends across the world

Going Green Ecofriendly.

Selling directly to customer.

Better product experience.

SWOT analysis- Threats :

Competitors

Rising cost of raw material and energy prices

Economic slowdown in the US and Eurozone

New Regulations

Vicks banned in US market.

Slowdown in consumer spending.

Substitute products have cheaper prices.

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CORPORATE SOCIAL RESPONSIBILITY OF P&G

Pampers and UNICEF: Working Together for Healthy Babies.

Providing vaccination for women and pampers for babies

Since 2006, a total of 100 million women and their babies have been

protected against maternal and neonatal tetanus.

Always and Tampax: Protecting the Futures of Girls

DREAMING TOGETHER FIR THE FUTURE

P&G supports handicapped children in Korea through a program

known as Dreaming Together for the Future. The program,

funded in part by P&G product purchases, is centered on enabling

children in their self-development. Since 2005, the program has

touched the lives of over2,000 handicapped children in Korea

P&G-sponsored orphanages benefit from a program called One

Friend is Worth a Million Dollars. As a platform for educational,

cultural, and sport activities,100% of P&G employees in the region

participate to help prevent children from dropping out of school for a

life on the streets. The program reaches 145 children each year.

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The SOS Childrens Villages program provides safe housing for

homeless children in Greece, Portugal, and Spain. P&G funding

supports education and extracurricular activities, providing children a

chance to grow academically, develop their talents, and build their

future. P&G employees regularly visit the villages to serve as mentors

to the children.

PROJECT SHIKSHA SECURE YOUR CHILD SFUTURE (2003)

P&G tied up - (CRY) and Sony Entertainment Television to launch

Shiksha , a program to help educate underprivileged children

across India. 96,000 children received free education till date. 1Cr Rs.

every year donation for education.

REBUILDING LIVES IN EARTHQUAKE HIT BHUJ(2001/2002)

P&G in partnership with Swayam Shiksha Prayog (SSP)opened four

Community Resource Centers for the earthquake victims in the

Chakasari, Paggiv and, Hanjiya and Jodhparvands (hamlets) of Rapar

Taluka, Kutch District, Gujarat. The P&G -SSP project positively

impacts 25 villages, 3750 families and 22,500 people and helped

mobilize womens groups and communities in Gujarat for their long-

term sustainable development.

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PROJECT DRISHTI THE FIRST EVER SIGHT RESTORATION PROGRAM

IN INDIA (1999).

P&G tied up with the National Association for the Blind (NAB) to

launch Project Drishti and restore eyesight to 250 blind girls through

corneal transplant operations. Till date 138 sight restoration

operations have been successfully conducted across the country.

PROJECT PEACE - ENVIRONMENTAL EDUCATION PROGRAMME

(1996)

P&G launched PEACE a unique Environmental Education Program

for children in schools across Bombay and Thane representing a

cross- section of economic backgrounds. Children were exposed to a

fascinating account of the Indian environmental scenario. The

Multiplicity of Eco- Systems in India, Air around Us, Water, Solid

Waste and Adopting Conservation in our Lifestyles were the topics

dealt with using interesting media like music, games, project-work,

slides, video films, group discussions, etc.

Project Poshan

India has 40% of the worlds malnourished children. POSHAN

targeted three key projects : an Adolescent Girls Initiative to educate

girls in Mumbai slums on health problems and improve their lives

Womens Parenting Network in Chennai to provide information on

care during pregnancy and Day care projects in Jaipur, which focused

on increased food intake and micro-nutrients. Once again, P&G

raised Rs. 50 lakhs by contributing Re. 1/-from sales of large size

packs of Ariel, Whisper, Head &Shoulders and Pantene sold in the

months of May, June and July 2000.

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RECOGNITIONS

Asia Employee Value Proposition recognizing P&G’s Asia Diversity,

Work -life effectiveness and Talent Development programs that built

a comprehensive employee ownership package,

Asia Environmental Sustainability recognizing how P&G Asia

incorporates Environmental Sustainability practices not just in

product innovations but in day to day office operations,

manufacturing processes and logistical operations across the region.

P&G Manila Service Center (MSC) was awarded the 2011 Excellence

in People and Communications - Honourable Mention by the Asia

Shared Services Outsourcing Network (SSON).

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SAMPLE SIZE:

The substantial portions of the target customers that are sampled to achieve

reliable result are 15.

The cost and time limitation compeled me to select 15 respondents as sample

size

SAMPLING METHOD: In this marketing research project .I am using

Random sampling method

SAMPLE SIZE

15 Customers

SAMPLE TYPE

Area sampling

SAMPLE AREA

Vikhroli (E)

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Collection of data

DATA COLLECTION

The study was conducted by the means of personal

interview with respondents and the information given by them

were directly recorded on questionnaire.

There are two types of data, this are-

Primary Data

Secondary data

PRIMARY DATA:-

Primary data can be collected through questionnaire.

SECONDARY DATA:-

Secondary data means data that are already available i.e.

they refer the data which have already been collected and analyzed

by someone else.

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DATA ANALYSIS AND INTERPRETATION

METHODS OF DATA COLEECTION –

The methods of data collection used are both primary data collection and

secondary data collection.

SOURCES OF DATA COLLECTION -

Sources of data collection are primary source and secondary source .

Primary source of data used in questionnaire which is supplemented by

secondary source like pie chart sample used.

DATA COLLECTION INSTRUMENT

The major data collection instrument used is questionnaire given to the

respondent for survey purpose.

Field work

The field was conducted on 12th and 13th of january, 2013 in vikhroli from 9

am to 6 pm

The period of study was 7 days from 7th of January to 15th of january 2013.

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TABULATION OF DATA

TOTAL NO OF RESPONDENT

RESPONDENT PREFERRING HUL

RESPONDENT PREFERRING P&G

15 9 6

STATISTICAL ANALYSIS OF DATA

60% HUL

40% P&G

60%

40%

preferrer

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