p&g

STUDY REPORT ON PROCTER AND GAMBLE

NAME – NITESH SUMAN

ROLL – 10

SUB – MARKETING MANAGEMENT

DATE – 25/10/10

SUBMITTED TO –

PROF. J. P. SINGH

SUBMITTED BY – NITESH SUMAN

ACKNOWLEDGEMENT

I take this as an opportunity to thank with bottom of my heart. Working on my

project on Procter And Gamble was a constant learning of marketing book,

magazines, etc.

I am very thankful to Prof. J P Singh sir for giving me their valuable advice and

guidance towards fulfillment of the project

For any project to be a success, it is very important to get the right guidance and

support which I got from my Faculty. I express my gratitude to my faculty guide

for inspiring me throughout the project.

Finally I would like to convey my heartiest thanks to all my well wishers for their

blessing and co-operation throughout my study. They boosted me up every day to

work with a new and high spirit.

CONTENT:

SN TOPIC NAME

1. About P&G

2. Mission and vision statement ,Objective ,and values

3. Major brand

4. Situational analysis or SWOT analysis

5. Segmentation , positioning , targeting in P&G

6. Story of change

7. Operational

8. Sustainability report

9. Some of major strategy of P&G in recent year

10.Media spends

11.Major competitor

TOPIC 1 :ABOUT p and g

HEADQUATER OF P AND G

The Procter & Gamble Company

Type Public (NYSE: PG)

Dow Jones Industrial Average Component

Industry Consumer goods

Founded 1837

Headquarters Cincinnati, Ohio, U.S.

Area served Worldwide

Key people Bob McDonald

(President) & (CEO)

Products See List of Procter & Gamble brands

Revenue ▲ US$79.03 billion (2009)]

Operating income ▲ $16.13 billion (2009)]

Net income ▼ $12.74 billion (2010)

Total assets ▲ $134.83 billion (2009[1]

Total equity ▲ $63.099 billion (2009)[

Employees 127,000 (2010)

Website pg.com

I. Company OverviewProcter & Gamble is an American global corporation based onmanufacturing a wide range of consumer goods.As of 2008, P&G is the 6th largest Company by Market Cap., 14thlargest by profit, and 10th in Fortune's Most Admired Companies list.•HistoryWilliam Procter, a candle maker, and James Gamble, a soap maker ,formed the company known as Procter & Gamble in 1837.Throughout the twentieth century, the company moved into other countries, both in terms of manufacturing and product sales ,becoming an international corporation.Known for people centric company, First profit sharing Plans (25%share is in the hand of employee

II.HISTORY IN INDIA;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. 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. 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.

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 mentholised peppermint oil and VICKS range of products such as Vicks VapoRub, Vicks Cough Drops and Vicks Inhaler. In May 1967, RHL introduced Clearsil, 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%. 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.

P&G Home Products Limited was incorporated as 100% subsidiary of The Procter & Gamble Company, USA in 1993 and it launched launches Ariel Super Soaker. In the same year Procter & Gamble India divested the Detergents business to Procter & Gamble Home Products. In 1995, Procter & Gamble Home Products entered the Haircare Category with the launch of Pantene Pro-V shampoo. In 1997 Procter & Gamble Home Products launches Head & Shoulders shampoo. In 2000, Procter & Gamble Home Products introduced Tide Detergent Powder - the largest selling detergent in the world. In 2003, Procter & Gamble Home Products Limited launched Pampers - world's number one selling diaper brand.

Today, Proctor & Gamble is the second largest FMCG company in India after Hindustan Lever Limited

TOPIC 2: MISSION STATEMENT,VISION STATEMENT,VALUES,OBJECTIVE

1.a) . Mission Statement “We will provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come. 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

.”

1.b) Objective:

- Build existing core businesses into stronger global leaders- Grow leading brands, big countries, winning customers- Develop faster-growing, higher-margin with global leadership potential- Regain growth momentum and leadership in Western Europe- Drive growth in key developing market

.1.c) The Vision“Be, and be recognized as, the best consumer products and services company in the world.”1.d)Value sIntegrityPassion for WinningLeadership , Trust, Ownership

TOPIC 3:MAJOR BRAND: List of Procter & Gamble brands

23 of P&G's brands have more than a billion dollars in net annual sales,and another 18 have sales between $500 million and $1 billion.

Billion dollar brands

Ace is a brand of laundry detergent/liquid available in numerous forms and scents.

Ariel is a brand of laundry detergent/liquid available in numerous forms and scents.

Bounty is a brand of paper towel sold in the United States and Canada.

Braun is a small-appliances manufacturer specializing in electric shavers, epilators, hair care appliances and blenders.

CoverGirl is a brand of women's cosmetics. Crest is a brand of toothpaste and teeth whitening

products. Dawn is a brand of dishwashing detergent.[12]

Downy/Lenor is a brand of fabric softener. Duracell is a brand of batteries and flashlights. Fusion is a brand of men's wet shave razors and is

the quickest P&G brand to have reached $1 billion in annual sales.

Gain is a brand of laundry detergent, fabric softeners and liquid dish soap.

Gillette is a brand of safety razor and male grooming products.

Head & Shoulders is a brand of shampoo and conditioners.

Olay is a brand of women's skin care products. Old Spice is a brand of male grooming products. Oral-B is a brand of toothbrush, and oral care

products. Pampers is a brand of disposable diaper and other

baby care products.

Pantene is a brand of hair care products (conditioners/styling aids).

Pringles is a brand of potato chips. Tide is a brand of laundry detergent. Wella is a brand name of hair care products

(shampoo, conditioner, styling, and hair color). Always/Whisper is a brand of pantyliners sold

primarily in Asian markets.

TOPIC 4:SITUATIONAL ANALYSIS OR SWOT ANALYSISSWOT Analysis:

Strengths:Diversification: Product diversification with about 300 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 24th consecutive 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 daytime 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.

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, 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 competitor’s 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 25 categories 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 world’s 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 healthcare 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 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 from a 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.

REFERENCE TAKEN FROM BUSINESS STANDARD

TOPIC 5:SEGMENTATION ,TARGETING , POSITIONING OF P & GProcter & 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 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 19 in Europe, the Middle East, 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 detergents—such 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 segments—of 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 subsegments, 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."

? 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 dye." ? 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 pretreating." 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 pretreating 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 oversudsing. ? 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 whopping 38 percent market share. All P&G brands combined take a 57 percent share of the market—three times that of nearest rival Unilever and much more than any single brand could obtain by itselfRFRENCE FROM US LEADING MAGZINES

TOPIC 6:STORY OF CHANGE AND CHANGE IN OTHER MAJORSAccording to ceo of p & g ,in an interview given to leading business magazine, P&G's President and CEO, Durk JagerIn past year we are not able to grow in the fast pace we have to change our strategy and way thinking so that we are able to compete with aggression and passion

1.According to him some of Challenges that they give importanceNo innovation since 1985strong, traditional and conservative culture

Losing market dominance2. In due course he try to tell some ObjectiveFasten the decision making to innovate

Eliminate burecracy

Reduce costs

3. Implementation,- Radical revamping of P&G's organizational cultureReduction in hierarchiesRetrenchment of employeesUse of IT to fasten the decision makingTarget to double in global revenues till 2005Informal work environment to promote innovation

4.Change in Strategy

Preparing people for change

Communication of entire plan

Motivation, Use it as fascinator

Training of the employee

Understanding the demand between urgent and essential

5)StructureDecentralized decision makingGiven more authority and power6)StaffNew management (Representing different countries)Recruitment

Good relationship with top B - schoolsComprehensive selection processFocus on innovation and leadership

7)Shared values

They effectively transferred their ideas and services

Customers the kingP&G as a leader8)SystemFast decision makingReward for efforts and learningREFRENCE TAKEN FROM LEADING NY MAGZINE

TOPIC 7: OPERATIONAL AREA

OPERATIONAL area that company decided in 2009As of July 1, 2007, the company's operations are categorized into three "Global Business Units" with each Global Business Unit divided into "Business Segments" according to the company's March 2009 earnings release.

Beauty & Grooming

Beauty segment

Grooming segment

Household Care

Baby Care and Family Care segment

Fabric Care and Home Care segment

Health and Well-Being

Health Care segment

Snacks and Pet Care segment

TOPIC : 8)SUSTANIBILITY REPORT

PROCTER & GAMBLE RELEASES 11TH ANNUAL SUSTAINABILITY REPORT“Designed to Matter” Highlights 50 Percent Reductions in CO2 Emissions, WaterConsumption and Waste Disposal Since 2002CINCINNATI, Oct. 20, 2009 – The Procter & Gamble Company (NYSE:PG) today released its

2009 Sustainability Report titled “Designed to Matter.” The report outlines P&G’s progress in improving the environmental profile of products and operations and delivery of several new,sustainable product innovations. The report is available for viewing at.“A fundamental reason why P&G has been in business for 172 years is the clarity and constancy of our company’s Purpose – to touch and improve consumers’ lives with brandedproducts and services,” said P&G Chief Executive and Executive Sponsor of Sustainability Bob McDonald. “To fulfill this Purpose, we must grow responsibly and sustainably and ensure thatcompany employees design strategies and programs that make a meaningful difference – bothin the environmental footprint of our products and our operations.”Highlights of the P&G 2009 Sustainability Report include:• Including 2009 FY results, P&G operations have reduced (per unit of production) water consumption by 52 percent, energy usage by 48 percent, CO2 emissions by 52 percentand waste disposal by 53 percent since 2002. One example cited in the report wasP&G’s Household Care plant in Brockville, Canada, where teams reduced total site energy use by 20 percent.• Since 2007, P&G has achieved $13.1 billion in cumulative sales of products with a significantly reduced environmental impact. This includes sales of innovative new products like Ariel Excel Gel, a highly concentrated, low temperature laundry detergentintroduced in Western Europe. Consumers using Ariel Excel Gel use 20 to 50 percent less energy, while manufacturing requires 40 to 50 percent less water and 30 to 40 percent less energy.*• The Children’s Safe Drinking Water program has delivered 930 million liters of clean drinking water since 2007, preventing an estimated 39 million days of disease and saving thousands of lives.• P&G continued to expand its Corporate Cause program, Live, Learn and Thrive, aimed at helping children in need around the world. Since

2007, the program has reached 135 million children. Programs were led by P&G employees, with many advanced by leading P&G brands, to help raise public awareness, engagement and philanthropic donations.Some brands have formed key partnerships to address social issues, such as Pampers’ work with UNICEF to eradicate maternal and neonatal tetanus and the Always and Tampax “Protecting Futures” program which helps keep girls in school in the developing world.“Around the world, P&G employees have made sustainability a core part of their everyday work, developing innovative solutions and delivering meaningful results across the business – from manufacturing, packaging and shipping to product formulation,” said P&G Vice President of Global Sustainability Len Sauers.The company aims to further improve its operational footprint by extending its focus on manufacturing operations to an end-to-end approach that includes manufacturing, finished product logistics and supplier engagement, which will impact all parts of the supply chain.- more -In 2009, P&G received numerous recognitions for its sustainability work. &G has been a member of the FTSE4Good and Dow Jones Sustainability Index (DJSI) since their inception. Inaddition, P&G was added to the Global 100 list of the world's most sustainable corporations in 2009. P&G also was recognized in Corporate Responsibility Officer Magazine’s 10th Annual100 Best Corporate Citizens List®, which ranks companies according to their environmental, climate change, human rights, philanthropic, employee relations, financial and governancepractices. P&G was ranked 14th out of the 100 companies included on the list. For more information on P&G’s commitment to sustainability, P&G’s sustainability report was prepared using the Global Reporting Initiative’s (GRI) G3 guidelines. The GRI report is the most widely used sustainability reporting framework that includes the principles and indicators global organizations use to measure and report economic,environmental and social performance.

REFRENCE FROM LEADIN NY MAGZINE US

TOPIC 9:SOME OF MAJOR STRATEGY IN RECENT YEARDon't Shout, ListenBY: FARA WARNERJuly 31, 2001At Procter Gamble, branding is almost everything. And in the age of the Web, almost everything is up for grabs. Here's how P G has turned the Internet into a device for listening to customers -- and for experimenting with its brands.

Like the Wizard of Oz hiding behind his curtain, Procter & Gamble has for most of its history hidden behind its powerful array of consumer brands. About itself -- about the people and the practices that go into developing those brands -- it has retained a rather secretive air. Pay no attention to the corporation in Cincinnati, the company seemed to say. Instead, just watch as billions of consumers keep coming back to products like Crest, Folgers, and Tide.But there's a new spirit of openness at P&G -- and it's most evident on the Internet. Just take a look at PG.com. A year ago, it was a stodgy, nondescript site where no one other than investors and job seekers had any reason to go. Today, when you log on to it, you see a consumer-friendly portal that proudly announces P&G's responsibility for "more than 300 brands you know and trust." On the site, you can call up a wealth of information about the history, structure, and operations of the $40 billion company; link to "tips and resources" on family, household, and personal care; and, most intriguingly, take part in P&G's efforts to create, test, and market its brands.For P&G, brands are the chief medium through which it communicates with customers. Traditionally, that communication has gone more or

less in a single direction, with P&G spending billions of dollars a year to tell consumers through bold, persistent advertising that Pantene or Pringles (for example) would reliably deliver what their hair needed or what their stomach craved. While the company has made the use of focus groups and test markets into an art form, it has kept such interaction with customers tightly under wraps. The basic model: Research secretly, and carry a strong brand.That model is due for revision, says Greg Icenhower, 38, an associate director of corporate communications at P&G and the man who took the lead in revamping PG.com. "We've been voted the best marketer of the 20th century," he says, referring to a ranking published by Advertising Age magazine. "But that's because we were the biggest shouters. In the 21st century, we want to be the best listeners."The relaunch of PG.com took place last September. Icenhower had put together a skunk-works team that included him and seven other P&G people, some of whom had no relevant Internet experience. While rebuilding the site, the team undertook none of the intense testing that P&G would normally insist on devoting to such a high-profile project. On the contrary, Icenhower convinced his bosses that the focus of his team's work should be on experimentation. "I told them that we wouldn't get everything right but that by making mistakes, we would start learning lessons immediately."The PG.com team successfully pushed to include two features on the site that would have been almost unthinkable in the old, close-to-the-vest world of P&G. In Try & Buy, which has become the site's most visited section, consumers can purchase new products before they show up in the supermarket or drugstore. (In May, a Pampers gift pack was on sale through PG.com.) Previously, only customers who were on a special mailing list or in a test market had been able to enjoy such perks. And in Help Us Create, P&G conducts virtual test markets where consumers can tell the company which kinds of new products it should make, or how it might improve existing products. (Visitors who came to the site in May could offer feedback on the Olay beauty-care product

line.) For a company whose tight control over product development and testing is legendary, all of this marks a big change.But P&G has good reason to be in an experimental mode. The company stumbled badly in 2000, missing analysts' profit expectations and causing its famously reliable stock to plummet from $103 in January 2000 to $64 in June of this year. Under A.G. Lafley, who became CEO a year ago, the company is regrouping after what its leaders now admit was an overambitious change effort. This year, in a bid to focus on profitability, P&G announced that it will lay off more than 17,000 people over the next three years. It has even moved to reshuffle its product lineup, in part by putting such revered brands as Crisco and Jif up for sale.More to the point, P&G has stepped up its experimentation because it has discovered an ideal laboratory for doing so: the Internet. Unlike many old-economy outfits, P&G is no conglomerate-come-lately when it comes to negotiating the Net. As early as 1995, it had 10 Web sites up and running, and it was also an early player in the banner-advertising game. Recently, some of P&G's biggest brands have all but given up on banner ads. But the company still operates more than 70 Web sites. And rather than give up on the Net as a whole, P&G has turned it into an arena for trying out new approaches to branding -- new ways to make the shift from shouting to listening.

The company said it has started shipment of the product with the increased grammage and the new pack sizes of its variants 'Chandan' and 'Lemon' will be available in the market from tomorrow.

Meanwhile, it is understood that the company is also increasing the pack size of its mother brand 'Tide' and it will be available from March 12.

Tide brand is available in the market in two variants Lemon and Chandan with pack sizes of 100 gm, 200 gm, 500 gm, 1 kg and 2 kg and

20 gm single use sachet. It is available at the price points of Rs 10, Rs 20, Rs 26 and Rs 56 at present.

However, it did not specify whether the increase is across all the pack sizes.

"In the last three years, the brand has grown by 250 per cent, with over 35 per cent year-on-year growth on average where the category growth has only been 20 per cent," the company said.

The company was recently in news for the legal tussle with one of the country's largest FMCG players Hindustan Uniliver for a TV commercial claims that its detergent brand Rin is better product than Tide.

P&G targets higher share in shampoo mart

Our Regional Bureau / Hyderabad January, 24 2004

Cosmetics major Procter and Gamble (P&G) on Friday said it was targeting a larger share of the Rs 900 crore shampoo market claiming that this was the fastest growing FMCG category in the country. P&G, which is currently positioned at number two with a 20 per cent market share, launched ‘Rejoice’, a new shampoo in three variants in a bid to capture a larger market share, which is so far cornered by FMCG giant Hindustan Lever. Rahul Malhotra, the country marketing manager of P&G India, claimed at the launch of the new product here today that Rejoice was the highest selling shampoo brand in Asia and the third largest shampoo brand in the world. “Of the Rs 900 crore shampoo market, the Andhra Pradesh market constitutes around Rs 50-70 crore. We are eyeing a significant share in the Andhra Pradesh market,” he said. He, however, refused to divulge

the sales target in Andhra Pradesh. The new brand is available at an affordable Rs 2 for 7.5 ml sachet, Rs 39 for a 100 ml bottle and Rs 75 for a 200 ml bottle. At present, P&G imports the product from Thailand. Till now, P&G had two shampoo brands in the market, Pantene and Head and Shoulders, with the last having been launched way back in 1997.Business standard

Sins of research outlined

Our Corporate Bureau / Mumbai November 20, 2003

Market research is a tool to decision making but it is not the decision-maker said Shantanu Khosla, managing director, Procter and Gamble while discussing the merits of market research and its role in guiding brand management. So, if a wrong decision has been taken based on market research then one must not blame the market research per se but the brand management team which has been unable to utilise the market research well, explained Khosla. Khosla was speaking at the CII FMCG conclave in Mumbai. Khosla also listed out what he thought were deadly sins one usually commits when using a market research for decision making. Using the market research tools without taking into consideration the market and the product, not keeping the whole picture in mind and concentrating on only the tunnel vision and looking for data to prove your point are unforgivable sins according to Khosla.

He illustrated his point with examples from the P&G basket like Tide which was a small, unsuccessful brand in Vietnam P&G undertook a brand restructuring exercise and tried to sell the “soft on hands tough on stains” proposition. Unfortunately this did nothing for the brand and on digging deeper the brand research team realised that Vietnamese people did not think the brand could have changed since its early days. Based on market research they decided to use the ‘made in USA’ tag on the product which did wonders for Tide. Another example would be that of Vicks Vit-C, a vitamin C candy introduced by Vicks. Initial market testing saw that the product was well received but when formally launched it failed to make a splash. Khosla concluded by saying that the effectiveness of market research depends on how you use it. Ram Madhvani, director, Equinox Films, who was skeptical of the usefulness of market research as a decision making tool, listed a few pointers that he thought would help make effective use of market research ,including training brand managers to analyse research data.REFRENCE FROM BUSINESS STANDARD

TOPIC:10)MEDIA SPENDAccording to a report in AdAge's Daily News (August 6, 2008) Procter & Gamble will not cut its media budget despite rising commodity costs. P&G maintained ad spending as a percent of sales for its fiscal year ended June 30, and plans to do so again in the current fiscal year.

P&G spent 10.4% of sales on advertising, as it had the year before, said Clayton Daley, the company's chief financial officer, on the company's quarterly earnings conference call. The company is expected to post $8.7 billion in global ad spending for the concluded fiscal year, up 9% from $7.9 billion.

Daley states that P&G will have to further cut costs in addition to raising prices to offset an expected $3 billion increase in commodity costs in fiscal 2009, double the $1.5 billion increase last year. Even if cost increases were offset with price hikes, P&G's gross and operating margins would still decrease. In addition, the company has noted signs of consumer trade down, opting for products at lower-price points. In response, the company has shifted its media spend.

REFRENCE FROM BUSINESS TODAY

TOPIC 11:MAJOR COMPETITORS

HUL

GODREJ

DABUR

TOPIC 12: CONCLUSIONP&G IS ONE OF THE MAJOR FMCG provider company in the world, it is the said that after HUL its position is next. They are able to achieve their mission by providing product to the world. and in due course it become as one of the well known brand .It is provider of more then 300 goods ,and which 23 of them is more then $1 billion in net sale, 18 have sales between $500 MILLION and$1 billion.

It’s major strength is it’s product mix, more than 300, and it’s strength is distribution and presence in 160 countries.

Major weakness is that many of its products doesn’t gives more profit. Emerging market like India and china as opportunity.

The major threat is its competitor both at international and national level.

It’s strength beauty product facing problem because of change in law about chemical used into various cosmetic product in different countries.

BUT DESPITE OF VARIOUS HURDLE IT EMERGE AS A MAJOR BRAND