A PROJECT REPORT ON Submitted in Partial Fulfilment of the Requirement for Master of Business Administration (2009-2011) Submitted to: Submitted by: Mr.Amitabh Bhattacharya (HOD of Management Block) Aditya Kumar Jain MBA III Sem. Roll No.: 9952
Nov 07, 2014
A PROJECT REPORT
ON
Submitted in Partial Fulfilment of the Requirement for Master of Business Administration
(2009-2011)
Submitted to: Submitted by:
Mr.Amitabh Bhattacharya(HOD of Management Block)
Aditya Kumar JainMBA III Sem.
Roll No.: 9952
BENGAL COLLEGE OF ENGINEERING AND TECHNOLOGY
Sahid Sukumar Sarani, Bidhannagar, Durgapur-713212, W.B. (India)
PREFACE
A project is a scientific and systematic study of real issues on a problem
with the application of management concept and skills. The study can deal
with small or big issues in any division of an organization. It can be case
study where a problem has been dealt with, through the process of
management. The essential equipment of a project is that, it should contain
scientific collection of data, analysis and interpretation of data leading to
valid conclusion. There are number of forces that make marketing an
endlessly changing activity. The constantly active sociological,
psychological and political environment may represent the uncontrollable
marketing factors. To understanding these factors in better way marketing
research is of atmost importance.
This project report has been completed in partial fulfillment of my
Management Program, Master of Business Administration in the
PROCTER & GAMBLE. The topic of my project was “MARKETING
RESEARCH IN PROCTER & GAMBLE.
With such large population and the untapped market of populations FMCG
sector has a very bright scope in India.
CONTENTS
PREFACE
ACKNOWLEDGEMENT
DECLARATION
EXECUTIVE SUMMARY
PROJECT OBJECTIVE
I. INDUSTRY PROFILE
1) Introduction to FMCG INDUSTRY
2) Categories of FMCG
3) SWOT Analysis of FMCG Industry
II. COMPANY’S PROFILE
1) Introduction
2) Purpose, value & principles
3) Market share of P&G
4) Reports highlight
5) CSR of P&G
6) P&G Brands
7) Competitors of P&G
III. MAIN STUDIES
1) Introduction to the Topic
2) Product & Sales Procedure of P&G
3) The problem being faced
4) What does company expect to do by solving the
problem
IV. RESEARCH METHODOLOGY
Research Process
V. DATA ANALYSIS AND FINDINGS
1) Data interpretation
2) Finding
3) SWOT Analysis of Industry
VI. HYPOTHESIS & RECOMMENDATIONS
APPENDICES
1) Questionnaire Section
2) Bibliography
ACKNOWLEDGEMENT
It is a great pleasure to have this opportunity for the preparation of this
thesis. I have learned a lot and really enjoyed while working on this thesis. I
would like to sincerely thank all those who helped me with their valuable
support during the enter process of the learning. This has given me a good
insight to know how companies work with their retailer and customer and
also advertisement of their product.
Firstly, I would like to thank my supervisor Mr. Somraj Banerjee &
Mr. Mainak Sarkar for helping me through this time and giving me a lot
of help and good comments from Bengal college of Engineering and
Technology.
Secondly, I wish to acknowledge my special thanks to Mr. Bishwajeet who
helped me lot to make this work possible. I would also like to thank Mr
Mithlesh kr. Jha (Bussiness head Jharkhand) and his team members who
helped me lot to collect the data for preparing this project.
Last but not least, I would especially like to thank my family and friend for
their sincere interest in my work and their moral support. Finally, above all I
thank God for his guidance.
ADITYA KUMAR JAIN
DECLARATION
I, “ADITYA KUMAR JAIN” a student of MBA from BENGAL
COLLEGE OF ENGINEERING & TECHNOLOGY, DURGAPUR
(Approved by AICTE and Affiliated to WBUT, Kolkata) do hereby declare
that the project report entitled “MARKETING RESEARCH IN PROCTER &
GAMBLE” has been submitted by me as a requirement for the award of
degree of MASTER OF BUSINESS ADMINISTRATION training period
was from 17th June to 14th August, 2010.
The summer training project on this marketing title was done under the
guidance of Mr. Mithlesh kr. Jha, Reliance communication is the original
work done by Aditya Kumar jain, a student of Bengal college of Engineering
and Technology. This is the property of Institute & use of this report without
prior permission of the Institute will be considered illegal & actionable.
Date:-
Place: DURGAPUR
ADITYA KUMAR JAIN
EXECUTIVE SUMMARY
In each and every management training scheme, there is a provision for real
time job experience within the academic time period. Some where it is called
as summer training, Corporate Interaction or Corporate Training. The
purpose of this training is to introduce the student as a professional in the
corporate arena. Student take theoretical knowledge in their classrooms but
in this training period they utilize and see the implementation of this
knowledge. It is well said phrase that “nothing is much practical than a good
theory” but on the same hand we cannot deny that “practical is better than
theory”. We can say both the phrases are not opposing each other but they
are complementary to each other. Experiencing both in a good and
dedication manner really pays a lot in one’s professional career.
In the field of marketing the scenario is no exception. Field exposure is very
much necessary for a student of marketing too. In this stream of business the
application of theory is very frequent. From consumer behaviour to
consumer satisfaction all the theory can be experienced in a day spend in the
field of marketing. Marketing is now diversified that it can be done by cell
phone or internet. But experience the real marketing tact is possible in the
marketing of FMCG industry.
I therefore tried to complete my summer training from any FMCG company.
With my honest efforts and some great luck I got a chance to complete my
summer training from PROCTER & GAMBLE, RANCHI.
This report on Procter & Gamble is done to find out certain objectives
regarding the strategic approach adopted by Procter & Gamble to stand
strongly in the competitive FMCG market.
The outcomes of these models are properly analyzed to find out the various
aspects like companies position and competitors position in the market. This
report on Procter & Gamble not just give description about the company but
it’s also talk about the various marketing strategy adopted by the company.
SWOT analysis of Procter & Gamble finds out the weak points of the
company and to find out the way to overcome this problem.
PROJECT OBJECTIVES
The Indian FMCG market scenario has transformed into a multiplayer, multi
product market with varied market size and segment. The various objectives
behind carrying out this project are as follow:-
Object of study are:
To study the preference of customer among different FMCG
company.
Brand awareness of various FMCG companies.
Quality of service provided by company and satisfaction level.
What marketing strategy does PROCTER & GAMBLE is
implementing to defend and increase its marketing share.
To find who are the competitors of the PROCTER & GAMBLE
and the market share of the competitors and what strategies it is
implementing to beat its competitors.
To find out how the company react to the new technology
change in this sector.
INDUSTRY PROFILE
FAST MOVING CONSUMERDS GOODS INDUSTRY
Fast Moving Consumer Goods (FMCG), are the products that are sold
frequently purchased at relatively low cost. Though the absolute profit made
on FMCG products is relatively small, they generally sell in large quantities,
so the cumulative profit on such products can be large. Examples of FMCG
generally include a wide range of frequently purchased consumer products
such as toiletries, soap, cosmetics, oral care products, shaving products and
detergents, as well as other non-durables such as glassware, light bulbs,
batteries, paper products and plastic goods. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products and drinks,
although these are often placed separately.
FMCG products are generally replaced or fully used up over a short period,
usually a few days or weeks, or months, but within one year.
CATEGORIES OF FMCG INDUSTRY
Segments Products Major playersHousehold care
Soaps and detergents, household cleaners, mosquito resellers
P&G, HUL, Nirma, ITC, Dabur, etc
Personal care
Oral care ,skin care, hair care, soaps, toiletries and cosmetics, deodorants, female hygiene products ,paper products
P&G, HUL, ITC, Femcare, Lakme, Marico, Himalaya, Emami, Dabur, Colgate-Palmolive
Food &Beverages
FOOD: staples/cereals, Snacks, bakery products, ice cream,
ITC,parle-agro,nestle,Britannia,Cadbury India, PepsiCo, Dabur
chocolates, braded sugar, branded flour
BEVERAGES: health beverages, soft drinks, tea, coffee. Packaged water, liquor, juice.
Coca-cola, PepsiCo, Dabur, Glaxosmithkline,Khaitan
United breweries
Salient features of the FMCG industry
The FMCG industry is the key component of Indian economy, which
is fourth in therewith pays a great part of Indian GDP and is a direct
and indirect employer. It’s responsible for 5%of total factory
employment in India and creates employment for 3 million people.
FMCG produces the items of every day needs of the people. Low
priced products account for the major part of the sales and low and a
lower middle income group produces the sector’s 60%
sales.moreover, Indian rural market creates 56% of total domestic
FMCG demand.
It has significant links with the agriculture sector and 71% of the sales
come from the agro-based products. it is 2nd to IT sector in creating
market capital. it also has accountable contribution in the total
corporate tax, central excise revenue and state tax revenues.
the main challenges for the new players are huge investment, strong
distribution channels, for building and growing the brand
The sector is characterized by low margins and high volumes., Indian
consumer is very price sensitive. The cost increment is partially
passed on to the consumers in the personal care sector due to effective
branding
COMPETITION IN THE MARKET
In past, domestic companies were not considered as competitive like
the multinational corporations (MNCs).but at present times, the
scenario has changed to a great extent and it is changing furthermore,
with domestic companies like Nirma,dabur,Marico,himalaya standing
up to their MNC counterparts.
Also, competition among the MNCs has increased resulting in
shrinkage of margins.
SWOT analysis of the FMCG industry
Strengths:
i. Well-established distribution network extending to rural and urban areas.
ii. Powerful brands in the FMCG sector.
iii. Low price operations
Weaknesses:
i. Low export levels.
ii. Small scale sector reservations limit ability to invest in technology and achieve
iii. Economies of scale.
iv. Several similar products
Opportunities:
i. Huge untapped domestic market.
ii. Export potential.
iii. Increasing disposable income levels will result in faster revenue growth.
Threats:
i. High Imports level
ii. Taxation and regulatory structure.
iii. Slowdown in rural demand.
iv. Competition from unbranded players in dogmatic market
iv. Segmented approach to general trade and modern trade
v. Penetration in rural markets
vi. Improving customer services:
v. Removal of import restriction resulting in replacement of domestic products and brands
vi. Bargaining power of consumer rising material, advertisement and distribution prices
vii. Mushrooming of local brands
COMPANY’S PROFILE
INTRODUCTION TO PROCTER & GAMBLE
Procter & Gamble is world’s largest multinational consumer goods
company, and 8th largest market capitalization organization in the world.
Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500, American
multinational corporation headquartered in Cincinnati, Ohio, that
manufactures a wide range of consumer goods. As of 2008, P&G is the 8th
largest corporation in the world by market capitalization and 14th largest US
Company by profit. It is 10th in Fortune's Most Admired Companies list (as
of 2007).
P&G is credited with many business innovations including brand
management and the soap opera.
HISTORY
William Procter, a candle maker, and James Gamble, a soap maker,
immigrants from England and Ireland, respectively, who had settled earlier
in Cincinnati, formed the company initially, who met as they both married
sisters, Olivia and Elizabeth Norris.
As the result of persuation by their father in law, Alexander Norris, Procter
&Gamble was born on October 31, 1837, as they became business partners.
By1859, when 80 employees worked for P&G, sales reached 1million dollar.
The company supplied soaps and candles to the Union Army during the
American Civil War .the military contracts won introduced soldiers from all
over the country to P&G’s products, along with increased profits.
In 1980s, it began marketing a new product, an inexpensive soap that floats
in water. It was named ‘Ivory’.
In 1987, William Procter’s grandson William Arnett Procter began a profit
sharing programme for its employees; he assumed that by giving the workers
stake in the company, they would be less likely to go on strike.
The company started building factories in other site of USA as the demand
was outgrowing the capacities of Cincinnati. The products were also being
diversified. It also sponsored a number of radio programme termed as “soap
operas”.
With its 1930 acquisition of Newcastle upon Thomas Hedley Co, it became
an international corporation. Numerous new products were introduced over
time, like Tide, Prell, Crest, Bounce, Pampers, and Chux.
P&G acquired a lot of companies including Folgers coffee, Norwich Eaton
pharmaceuticals, Richardson- Vicks, Noxell, Max Factor, Iams Company.
P&G acquired Gillette in January 2005, forming the largest consumer goods
company and placing Unilever in the 2nd place.
P&G has expanded significantly, but its headquarters still remains in
“Cincinnati”.
TAGLINE OF COMPANY
PURPOSE, VALUES AND PRINCIPLES
PURPOSE
They provide branded products and services of superior quality and
value that intend to improve the lives of the world's consumers, now
and for generations to come. As a result, consumers will reward them
with leadership sales, profit and value creation, allowing people,
shareholders and the communities in which live and work to prosper.
VALUES
P&G is its people & the values by which they live.
They recruit the finest people in the world. They build the
organization from within, promoting and rewarding people without
any difference unrelated to performance. They work on the conviction
that the people of P&G are the most rewarding asset.
Integrity :
Being right in deeds, honest and straight to each other operating
within the spirit of law, upholding the values and principles in every
decision and action, staying data-based and intellectually honest in
advocating proposals and recognizing risks.
Leadership: Having clear vision of where they are going, focusing
the resources to achieve leadership objectives and strategies.
Developing: Developing the capability to deliver the strategies and
eliminate organizational barriers.
Ownership: Accepting personal accountability to meet the business
needs. Improve the system and helping others improve their
effectiveness. Everyone acts owner, treating the company’s assess as
own and behaving with company’s long term success in mind.
Passion for winning: Determination to be the best, having healthy
dissatisfaction with the status quo, compelling desire to improve and
win in the workplace.
Trust: Respecting &treating others as they want to be treated, having
confidence in each other’s capabilities and intentions. Foundation of
trust.
PRINCIPLES
~Showing respect for others
~Being strategically focused in the work
~Valuing personal mastery
~Seeking to be the best
~Making the interests of the company and workers inseparable
~Innovation is the cornerstone of success
~Making mutual interdependency a way of life
~Staying extremely focused
MARKET SHARE OF P&G P&G enjoys a market share of 10 per cent in the Rs 560-crore AP detergents
market. AP alone accounts for 11 per cent of the national market for
detergents, estimated at around Rs 5,000 crore.
The company had significantly improved its market share in the last couple
of years from around 6 per cent to 10 per cent.
Globalization and technological revolution have transformed the dynamics
of business and with it, the definition of customer and market knowledge.
Listening to the customer, analyzing competition and defining strategies
make good Customer relationship management which has given way to a
new paradigm in the market and also focus on the competitor with customer
intelligence in a core competency level.
The Rs13, 000 crore Indian detergent markets is the largest segment in the
consumer goods sector and both players are struggling to protect their
market share and boost profit.
Report Highlights
P&G markets more than 300 brands including 22 billion-dollar brands in
more than 180 countries spanning Americas, Europe, the Middle East and
Africa (EMEA) region, and Asia. The company is engaged in producing
beauty, health, fabric, home, baby, family and personal care products. The
company's product portfolio also includes pet health products, and snacks
and beverages such as coffee. In many of the markets and industry segments,
in which P&G markets its products, it competes against other branded
products as well as retailers' private-label brands.
CORPORATE SOCIAL RESPONSIBILITY
At P&G, social responsibility stems from corporate PVP purpose, values,
principle
Social projects are in keeping with P&G’s credo of “business with a
purpose”.
It has always demonstrated its commitment to the community not just
through the quality of its products and services, but also through socially
responsible initiatives for the community. It believes in building the
community in which it lives and operates by supporting its ongoing
developments.
Project shiksha: educating underprivileged children
Project shiksha: secure your Childs future (2003)
Rebuilding lives in earthquake hit Bhuj (2001/2002)
Project poshan: fighting malnutrition in India (2000)
Project open minds: educating India’s working youth (1999)
Project peace: environment education programmed (1996)
PROCTER &GAMBLE BRANDS:
24 of P&G's brands have more than a $ billion in net annual sales, and
another 18 have sales between $500 million and $1 billion.
Billion dollar brands:
1. Always is a brand of feminine hygiene products, including maxi pads,
panty liners, and feminine wipes.
2. Ariel is a brand of laundry detergent/liquid available in numerous
forms and scents.
3. Atonal is a brand of the osteoporosis drug risedronate co-marketed by
Sanofi-Aventis.
4. Bounty is a brand of paper towel sold in the United States, Canada,
and the United Kingdom (rebranded to "Plenty" in the UK after being
sold to SCA Svenska Cellulose Aktiebolaget).
5. Braun is a small-appliances manufacturer specializing in electric
razors, coffeemakers, toasters, and blenders.
6. Crest is a brand of toothpaste.
7. Dawn is a brand of dishwashing detergent.
8. Downy/Leonor is a brand of fabric softener.
9. Duracell is a brand of batteries and flashlights.
10.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.
11.Gain is a brand of laundry detergent and fabric softeners.
12.Gillette is a safety razor manufacturer.
13.Head & Shoulders is a brand of shampoo body wash, and deodorant.
14.Old Spice is a brand of aftershave and shaving cream.
15.Ivory is soap.
16.Nice 'n Easy is a hair coloring product.
17.Olay is a brand of women's skin care products.
18.Oral-B is a brand of toothbrush.
19.Pampers is a brand of disposable diaper.
20.Pantene is a brand of hair care products (conditioners/styling aids).
21.Prilosec OTC is a brand of heartburn medicine co-marketed by
AstraZeneca.
22.Pringles is a brand of potato chips.
23.A puff is a brand of facial tissue.
24.Secret is a brand of antiperspirant and deodorant.
25.TAG is a deodorant and body spray.
26.Tide is a brand of laundry detergent.
27.Vicks is a brand name of over-the-counter medicines (Formula 44,
Sinex, and NyQuil/DayQuil)
28.Wella is a brand name of hair care products (shampoo, conditioner,
styling, and hair color).
29.Whisper is a brand of panty liners sold primarily in Asian markets.
Competitors of Procter & Gamble:-
Introduction of Topic
Loreal
Colgate-Palmolive
Kimberly-clark
Clorox company
Unilever NV
Procter and gamble
The topic which was assigned to me was the “MARKETING RESEARCH IN
PROCTER & GAMBLE”.
Marketing research is the systematic gathering, recording, and analysis of
data about issues relating to marketing products and services. The goal of
marketing research is to identify and assess how changing elements of the
marketing mix impacts customer behavior. The term is commonly
interchanged with market research, however the expert practitioners may
wish to draw a distinction, in that market research is concerned specifically
with markets, while marketing research is concerned specifically about
marketing processes.
Marketing research is often partitioned into two sets of categorical pairs,
either by target market:
Consumer marketing research, and
Business-to-business (B2B) marketing research
Or, alternatively, by methodological approach:
Qualitative marketing research, and
Quantitative marketing research
Role of marketing research
The role of marketing research in managerial decision making is explained
further using the framework of the "DECIDE" model:
D-- Define the marketing problem
E-- Enumerate the controllable and uncontrollable decision factors
C-- Collect relevant information
I-- Identify the best alternative
D-- Develop and implement a marketing plan
E--Evaluate the decision and the decision process
Marketing research characteristics:-
Identification Objective Systematic
Types of marketing research:-
Marketing research techniques come in many forms, including:
1. Advertising Research
2. Brand equity research
3. Brand association research
4. Brand attribute research
5. Brand name testing
6. Commercial eye tracking research
7. Concept testing
8. Coolhunting
9. Buyer decision processes research
10.Copy testing
11.Customer satisfaction research
12.Demand estimation
13.Distribution channel audits
14.Internet strategic intelligence
15.Marketing effectiveness and analytics
16.Mystery Consumer or Mystery shopping
17.Positioning research
18.Price elasticity testing
19.Sales forecasting
20.Segmentation research
21.Online panel
22.Store audit Test marketing
23.Viral Marketing Research
24.Social Networking Potential
All of these forms of marketing research can be classified as either problem-
identification research or as problem-solving research.
Marketing research methods
Methodologically, marketing research uses the following types of research
designs
Based on questioning:
Qualitative marketing research – It is used for exploratory
purposes, small number of respondents and not for the whole
population. Examples- focus groups, in-depth interviews, and
projective techniques
Quantitative marketing research –It is used to draw conclusions,
tests a specific hypothesis, uses random sampling techniques so as to
infer from the sample to the population. Examples- surveys and
questionnaires.
Based on observations:
Ethnographic studies : By nature qualitative, the researcher observes
social phenomena in their natural setting - observations can occur
cross-sectionally (observations made at one time) or longitudinally
(observations occur over several time-periods)
Examples- product-use analysis and computer cookie traces.
Experimental techniques : By nature quantitative, the researcher
creates a quasi-artificial environment to try to control spurious factors,
and then manipulates at least one of the variables. Examples-purchase
laboratories and test markets.
Product & Sales Procedure of Procter & Gamble:-
Distribution channel of P&G
P&G
C&F Agent
Distributor
Retailer
Customer (Consumer)
The problem being faced
Lack of communication between retailers and distributor.
Lack of improper distribution channel.
Not regular visit of salesman.
Lack of sales promotion and advertisement.
Retailer doesn’t get claim at proper time.
What does company expect to do by carrying out the market research?
To check the customer satisfaction.
To check the retailer satisfaction.
To increase in Sales volume.
Sales Promotion.
Establish a proper Distribution Channel between retailer and distributor.
RESEARCH METHODOLOGY
RESEARCH PROCESS:-
1. Problem definition and recognition
A research generally begins with a question. That question is the synonym
for problem definition. It is the base of a research. Based on that problem a
researcher formulates the objectives and scope of the study. Clearly stated
objectives keep a research project focused. The research question can also be
stated as hypothesis. It is simply the researcher’s belief about a problem,
which he develops during the review of literature.
2. Creating research design
The researcher chooses the research design based on how he would like to
come to a conclusion and whether that research type would satisfy his thirst
meet the objectives and goals for the study undertaken. For this research
exploratory research design has been chosen.
3. Sampling
It involves defining the target population. Types of sampling are random,
stratified, systematic, convenience, judgment, and quota and snowball
sampling, convenience sampling would serve the purpose of this research.
4. Data collection
A research project uses a data collection technique appropriate to the
particular research methodology. Quantitative study employs deductive
logic, where the researcher starts with a hypothesis, and then collects data to
confirm or refute the hypothesis. Qualitative studies use inductive logic,
where the researcher first designs a study and then develops a hypothesis or
theory to explain the results of the analysis. For this research qualitative
study would be adopted.
5. Data analysis
These days’ computer software has made the analysis of quantitative data a
very easy task. It is no longer incumbent on the researcher to know the
formulas needed to calculate the desired statistics. Data analysis then leads
to findings and conclusion of the research.
6. Reporting the result
The purpose of reporting is to communicate information, and therefore, the
report should be prepared specifically for the readers of the report.
7. Validity and reliability
It refers to the accuracy or truthfulness of a measurement. Reliability is synonymous with repeatability. A measurement that yields consistent results over time is said to be reliable.
Data interpretation and Findings
The data interpretation which I have made after visiting the various outlets and customers are as follow: ---
1. Sales – Tabulating in percentage the sales of different FMCG Company
Company Sales Percentage %Hindustan uniliver ltd 45
Procter & Gamble 40
Loreal 5
Colgate -Palmolive 10
2. Product Rating Tabulation
Product Rating Percentage%
Poor 5
Good 65
Very Good 20
Excellent 10
3. Buying decision Factor Percentage tabulation
Factors Percentage%Price 40Referral 20Quality 30Availability 10
4. Tabulation of consumer income level in percentage.
Income level Percentage%Lower income group 10Middle income group 30Middle income group+ 35Higher income group 25
5. Methods of Promotion
Promotion Medium Percentage%
Newspaper 20
Flyer/coupon 5
Passing by 5
Television 70
6. Frequency of product purchase tabulation
Frequency of purchase Percentage%
Daily 5
Once a week 80
Twice a week 10
Never 5
7. Percentage tabulation of customer loyalty
Customer loyalty Percentage%Less than one year 5
One to under three years 20
Three to under five years 25
Five to under ten years 40
Ten years or more 10
FINDINGS OF THE PROJECT
I have done my project from Ranchi. I visited the retailers and also
interacted with customers.
I have found there are some common problems of retailers, which are as
follow:--
Every retailer wants that there must be transparency in the
distribution channel.
Some customer wants that price of some product must be
reduce.
There is a cut throat competition between HUL and Procter &
Gamble.
It is also found that in some area Salesman don’t visit regularly.
The margin on the product is very low.
Some shopkeepers require signage and banner.
All the retailers appraised that there must be regular supply of
the company’s products.
SWOT ANALYSIS
STRENGTHS
1. Business and community partnerships
2. Leadership focus and accountability
3. Talent support and development
4. Organizing facts
5. Employee networks
6. Inclusive culture
WEAKNESSES
1.There is no Customer care service in P&G
2.Distribution problem
3. P&G is one of the largest corporate producers of air pollution. Emitting green house gases and toxic chemicals.
OPPURTUNITIES:
1. P&G, being a highly diversified organization, can out think, out innovate and out perform a homogeneous organization.
2. P&G may understand the needs of the diverse consumers and can work effectively to fulfill its values, principles and purpose.
3. It can delight the consumer with sustainable innovations that will improve the environmental profile of the products. And thereby increasing the sales.
THREATS
1. The products may directly compete with one another
2. Due to high cultural diversity, problems may arise as a course of miscommunication.
3. There is an enormous chance of completion in the market at the higher positions.
.
HYPOTHESIS
Better product orientation with defined characteristics may confirm
increased sales of products.
Reaching out to the rural customers through various marketing
strategies can boost the net income
Taking over the local brands may help out in tackling competition
Targeting the middle class and lower middle class customers can be
helpful in increasing the demand
Training the employees to learn the local languages can improve
customer relations
Innovative and economic product launching will attract customers
Opening exclusive outlets may increase customer satisfaction by easy
and comfortable reach.
Some products like Gillette and 7o clock are made by the company to
target the higher segment of the market.
In India HUL is another big competitor in FMCG market.
As we know this market is known as FMCG market so there are many
competitor in this time in the market so P&G Company were focused
in this time and target the middle class segment for increasing the
sales as well as market shares.
LIMITATIONS OF THE PROJECT
1. All of the retailers were not so co-operative. As they were very busy
with direct selling process, so they hardly get any free time for such
discussion.
2. In my project I supposed to visit every retailer in Ranchi market but
due to some unavoidable circumstances like weekly holiday,
occasional holiday, I could not visit all the retail outlets.
3. Lack of technical information and experience also became hurdles for
me. Some particular sectors of Ranchi were so crowdie and
disarranged that it became quite impossible for us to visit those retail
stores present there.
4. Off course, money also played a vital factor in the whole project
duration.
5. Most of the retailers were illiterate so tackling them was difficult task.
RECOMMENDATION
After completing the project, there are few recommendations, which should
be implemented if possible. It will also help in increasing the market share
of Procter and gamble. The marketing strategies should be changed
according to time and proper policies should be implemented for the proper
growth of the company. Apart from these other things like general
awareness programmes should be promoted. According to the 4 p’s of
marketing strategies are:
1. Product strategies
2. Price strategies
3. Place strategies
4. Promotional strategies
Product strategies
1. P&G should provide modified products so that increase sale of
their products & all the segments of people purchase those
products.
2. Most of the retailers are complaining about the problem
regarding the amount of stock given to their providing the stock at
right time.
Price strategy:
1. P&G provides less schemes to the retailer but other company
provides a large no. of schemes
2. Profit margins of P&G to the retailer are less than the other
companies. So, it should provide equivalent profit margins as other
company provide.
Place strategy:
1. In Ranchi, P&G is second FMCG Company after HUL, there is
large competition in this region. Hence the company has to grasp a
lot of market share.
2. There are retailers &customers in RANCHI where people are not
aware of P&G products. so the company should take special focus
on their area to increase the market share of P&G should provide
special campaign in these areas to know about their products.
3. Many kinds of persons come to purchase the products of P&G
from the nearby area. Those people are mostly from the villages so
the price should be low so that the people can easily buy the
products.
Promotional strategy:
1. The company should promote their products through the different
media like print media, mass media, electronic media and
internet.
2. There should be more schemes for retailers after completing their
sales target at a given period.
3. In Ranchi, the company can improve its market share by regular
performance of promotional activities; they should adopt it by
canopy, attraction hoardings, and banner.
4. P&G should sponsor for the socio cultural activities organized in
Ranchi.
5. P&G should change their packing of their products at regular
interval of year; they should not stick to only
MY LEARINGS
While doing my summer training in one of the recognized organized retail
my basic learning was how FMCG organizations do work and how that
make decision for their future expansion plans. As I was part of a well
growing expansion plan that is franchisee and business development. So in
this two month I had a very tough learning as well as challenging but that
challenge thought a lot and my experience is as follows.
Learning about FMCG Industry: - As in that two month I had been a
part of FMCG Company and I came to know about FMCG Industry.
There is a cut throat competition in the present scenario among the
FMCG Companies. It is very difficult to retain the customers in the
present scenario. The companies are really doing their level best in
satisfying the changing need and demand of customers.
Supply chain management:-supply chain management is like blood
circulation in body. Without that blood circulation retail can not
survive and how that supply chain makes retail effective. Because
demand is equal to supply is the first rule of any market so that the
first and the basic rule is to be completed by supply chain because a
market cannot wait for the products to come in to market so an
effective supply chain can make retailing effective.
Public relation:- As my job was to meet the existing retailers and to
have a interaction with them so that is job of public relation and in
these two months I learnt that how to have a formal interaction with
the client and how to have an interaction to make one convince. I
learnt that to make somebody convince one has to come in to level of
communication to someone convince.
Dissatisfaction of retailers:- As my task was to meet with the retailers
so during my project I meet with several retailers and find a
dissatisfaction level among them. Most of the retailers were not happy
with their type of work and they were agree with that they need more
margin rate on the products and time to time they also demand for the
schemes on the products. The retailers wanted to have a regular meet
with the top level management of P&G once at a regular interval of
six months to solve out their problems
QUESTIONNAIRE
1. Name of outlet:
2. Address:
3. Contact person with phone number:
4. Type of outlet:
(A) Grocery (B) General store
(C) Eatery (D) other
5. Which has the maximum sale at Present from your outlet?
(A) Hindustan uniliver ltd (B) Procter & Gamble (C) Loreal (D) Colgate -Palmolive
6. How do you rate the product of our company?
(A)Poor (B) Good
(C) Very good (D) Excellent
7. What are the factors in the order of importance to you when making a buying decision?
(A) Price (B) Referral
(C)Quality (D) Availibility
8. Are there any other offer you would like to see?
(A) Yes (B) No
9. Do you believe that our competitor’s prices are too high?
(A) Yes (B) No
10. .Do you believe that prices of our product is high? (A) Yes (B) No
11. Which shampoo has the maximum demand?
(A) Head & shoulders (B) Sunsilk
(C) Pantene (D) clinic allclear
12. Which type of customers prefers head & shoulder & Pantene?
(A) Lower income group (B)Middle income group
(C) Middle income group+ (D)Higher income group
13. Which is the most selling blade?
(A)Wilkinson (B) topaz
(C)Zorick (D) 7o’clock
14. Which is the most selling detergent? (A) Tide (B) Ariel
(C) Surf excel (D) Rin
15. Which is the most selling toothbrush?
(A) Oral B (B) Colgate
(C) Pepsodent (D) Babul16. How did you learn about our product?
(A) Newspaper (B) Flyer/coupon (C) Passing by (D) Television
17. How frequently do you purchase our product? (A) Daily (B) Once a week (C) Twice a week (D) Never
18. How would you rate your level of satisfaction with Procter & gamble?
(1 represents "Extremely dissatisfied" and 4 represent "Extremely satisfied)
(A) 1 (B) 2
(C) 3 (D) 4
19 How likely are you to recommend Procter & Gamble to a friend or relative?
Would you say the chances are …? (A) Excellent (B) Good (C) Fair (D) Poor
20. Are you likely to repurchase products and services from Procter & gamble?
(A) Yes (B)No
21. In total, how long have you been a customer of Procter & Gamble?
(A) Less than one year (B) One to under three years
(C) Three to under five years (D) Five to under ten years (E) Ten years or more
BIBLIOGRAPHY
Marketing Management ( Hesselbein, Goldsmith,& Somerville, 2002, p.82)
MAGAZINES India today Business today News papers (Economics Times, Business standards,
Business week)
WEB SITES
www.pg.com www.google.com www.slideshare.com
Other
Material Given by Company Employees