Marketing Mix of HUL and P&G

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Marketing Mix of HUL and P&G

Introduction
HUL- Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company with a history of over 80 years in India. With over 35 brands spanning 20 distinct
categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics,
tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the
everyday life of many consumers across India. Its portfolio includes leading household brands
such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove,
Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality
Walls and Pureit.
The Company has over 16,000 employees and has an annual turnover of 27408crores (financial
year 2013 - 2014). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast
moving consumer goods with strong local roots in more than 100 countries across the globe with
annual sales of 49.8 billion in 2013. Unilever has 67.25% shareholding in HUL.
P&G- P&G is one of the largest and amongst the fastest growing consumer goods companies in
India. Established in 1964, P&G India now serves over 650 million consumers across India. Its
presence pans across the Beauty & Grooming segment, the Household Care segment as well as
the Health & Well Being segment, with trusted brands that are household names across India.
These include Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B,
Head & Shoulders, Wella and Duracell. Superior product propositions and technological
innovations have enabled P&G to achieve market leadership in a majority of categories it is
present in.
P&G operates under three entities in India - two listed entities Procter & Gamble Hygiene and
Health Care Limited and Gillette India Limited, as well as one 100% subsidiary of the parent
company in the U.S. called Procter & Gamble Home Products.


Comparative Analysis of the Marketing Mix of HUL and P&G
We shall now compare the marketing mix of HUL and P&G under the oral hygiene segment. In
this segment HUL operated with its very well set up brand 'Pepsodent' and 'Closeup' whereas
P&G operates with the brand 'Oral-B'. For a clear understanding of the marketing mix of these
companies we shall compare the 4P's of 'Closeup' toothbrush and 'Oral-B' toothbrush.
PRODUCT
HUL- The product, the Precision toothbrush, is a product that should add value to a buyer's life.
It should also add utility, and meet the wants and needs of targeted consumers. The product
should be unique and different from all similar products that
are already available on the market. The strategy is to
differentiate the product's design and packaging, which in
return will cause the toothbrush to stand out from the rest of
the competition. The product in which this marketing plan
focuses around is the Precision toothbrush. Close-up
toothbrush referred to the toothbrush as a technical innovation,
researchers used infrared motion analysis to track consumers'
brushing movements and consequent levels of plaque removal.
By studying consumers brushing techniques, and focusing on
areas of the mouth that had developed excessive amounts of
plaque build-up, such as in between the teeth and on the gum line, researchers were able
construct a newly designed toothbrush. The research team tested and experimented with the
toothbrush for eighteen months by the usage of dental professional focus groups and product
usage tests. This led to the introduction stage of the product life cycle, with the launching of
the Precision toothbrush to the oral health care market.
Type of Close-up toothbrush:
Close-Up Style Single Toothbrush-This toothbrush consists of rubber massage bristles
and tongue scraper which helps in effective cleaning of teeth and gums. Its handle is
made up of soft rubber and plastic with an easy grip to handle them during brushing. This
toothbrush cleans every corner of the mouth and cleans the food particles and keeps
mouth with odor free. It helps in improving gum health while brushing the teeth.

P&G- Oral-B refers to Oral-Brush which ensures to prevent cavities, plaque, tartar and gum
problems during brushing your teeth with toothpaste. Oral-B is called as No.1 product in oral
care sector of P&G.
Oral-B has produced hundreds of innovative products over the past fiftyyears. Oral-B
adds imaginative and therapeutic products for use in the professionalpractice and at home.Along
with Oral-B products the buyer gets not only excellent value, but also quality, innovation,
efficiency, and outstanding customer service. Their product offerings have established them as
the market leader since the 1960's!To the industrial dental market Oral-B offers 21 products in
theircurrentcatalog. There is an outstanding product depth in their lines as well as manyinnovativ
e products. The company offers many children's lines of toothbrushes, as well as oral care
products tailored to the individual's needs. Consultative selling of their products is a valuable
practice with Oral-B. Orders of products, sizes, variations, dentist's name and address on the
products, whatever the dentist requests. Oral-B strives to meet the individual
and unique needs of all their customers. Oral-B's product catalog is unique.
Types of Oral-B Tooth Brushes:
Oral B Advantage Sensitive Extra Soft Toothbrush-Oral B
Advantage Sensitive extra soft toothbrush helps in removing
stains on the teeth and protects teeth from whiteness. It helps
in vanishing the germs while brushing and protect you to get
good feeling and freshness in your mouth by complete end to
plague, and other bad gums. Its bristles are protected with
antibacterial formula which helps in keeping your brush
clean, fresh and hygienic. This brush is enriched with precast
tongue cleaner which helps to clean the germs located on your tongue and bring fresh
breath. This brush overall helps to reduce plague, gingivitis, and by doing so, it also helps
to improve gum health and offers better clean up and freshens good breath
Oral-B Cross Action Pro-Health-This toothbrush comes
in two variants which are medium and soft, and all
these two variants are recommended for keeping
healthy and strong teeth. This toothbrush helps to reach
the hardest place in between your teeth and removes all
the leftover food particles which can create bacteria,
bad gums and plaque. This toothbrush is very gentle on
teeth and gums and cleans tongue and prevents bad
breath.
Oral B Crossaction 7 Benefits Toothbrush-This
toothbrush helps in attacking germs and plaque
from different angle which helps in effective
brushing of teeth. This toothbrush helps to removes
the germs on your tongue. Its bristles help in
removing the germs and plaque upto 99.99% and
also reduce the gingivitis which helps in improving
the gum health. It totally removes the germs which
create odor in the mouth and bring complete
solution to teeth health.

Hence P&G has a better product portfolio in terms quality. Closeup does attract customers with
its wide variety and packaging but then again Oral-B has a better brand image and a quality
packaging adding to a better value.

PRICE
HUL-The price of a product says something about the quality. Even though the quality of the
Precision toothbrush will be significantly higher than other leading toothbrushes, the price of the
toothbrush will be determined by the prices of the other toothbrushes already in the market. This
pricing strategy is a result of positioning the toothbrush as a mainstream product rather than a
nice product.
Type of Close-up toothbrush- Close-Up Style Single Toothbrush
Price range- Rs 45-Rs 60. Closeup also has a range of economy tooth brushed with cater to the
lower segments with price starting from the range of Rs.10-20. So, it is easily affordable for the
customers to purchase the product. To add to it, discounts are offered to many products in its
range to make it even more attractive.

P&G- Pricing for the Oral-B Advantage was set by its target markets income levels and
competitors price range. People are willing to pay for a good product and because of great over
all oral care, the Advantage provides, consumers will pay extra for a brush that is worth the
money. The reputation of the product and trusted brand in buyers eyes also help to obtain a sale.
Types of Oral-B Tooth Brushes:
Oral B Advantage Sensitive Extra Soft Toothbrush- Rs 30
Oral-B Cross Action Pro-Health - Rs 110 (2+1 offer pack)
Oral B Crossaction 7 Benefits Toothbrush - Rs 100-Rs 110(pack of 2)

Hence 'Closeup' caters to a wide range of market but in a lower price segment with prices
starting as low as Rs10-20. It offers various discounts and combo packs to make its products
more competitively priced against 'Oral-B' which caters to the premium segment with its range
starting from a minimum of Rs.30-40. Oral-B does not offer much discounts since it is placed in
a segment above the 'Closeup'. But it does offer attractive combo packs from time to time.

PLACE
HUL- The most important part of marketing is how a product will get from the seller to the
buyer. Many products go through a channel of distribution, which involves, manufactures,
wholesalers, retailers, and consumers. The distribution strategy proposed for the Precision
toothbrush is through dentists, plastic surgeons, drug stores, grocery stores, large retail stores,
and department stores.
Aside from convenience stores and large retail stores, many food stores played a key role in the
distribution of oral health care products. Mass merchandisers gained share due to increased in-
store promotional support. Because of the increase in the demand for oral care products, stores
began shelving more oral care products. This was a big advantage for Close-up toothbrush
because there would be more room in the stores for them to market the new Precision toothbrush.
Dentists also played a big role in the distribution of oral care products.
The oral health care market is spread worldwide mainly targeting grocery, drug, convenience,
and large retail stores. The toothbrush market in the past had few types of toothbrushes, while
today's market carries many various types of toothbrushes. This may have been due to lack of
consumer concerns with what type of toothbrush they desired.

P&G- 'Oral-B' also uses both direct and indirect forms of distribution.
Indirect marketing channel: make its products available at all the retail stores with the help of
P&Gs delivery network
Direct marketing channel distribute its products to dentist through its own sales representatives.
Because the Oral-B Advantage is a convenience good it will have widespread low cost
distribution. This allows the product to be sold where other convenience goods and staples are
sold. Then, through indirect channels, the merchandise will be sold to the customers. Oral-B
does not sell their product strictly out right because they do not have the facilities that help entice
customers to the location and most consumers are not going to specifically stop at one store to
purchase the toothbrush they can get at any other outlet.
Oral-B Cross Action Pro-Health and Oral B Crossaction 7 Benefits Toothbrush is found more in
big retail marts and medical shops due to its premium pricing.

Hence the distribution channels and place of sale of both the products is more or less the same.
'Closeup' though has a slightly wider reach in the lower segment due to its competitive pricing
and can be found in small local shops and outlets. Other than that there is not much to
differentiate these two products under this category.

PROMOTION
HUL- The main focus of nice positioning would be placed on consumers who are concerned
about the prevention of gum diseases. There would be many positive benefits to the company if
close-up were to position the Precision toothbrush as a niche product. These benefits would
include One, by targeting the segment of consumers who are worried about gum disease; Close-
up would be able to charge premium prices. Two, Close-up toothbrush would be able to
differentiate the Precision toothbrush from other toothbrushes, because of Precision's
technological superiority ovethe other toothbrushes already on the market. Three, it is safe to say
that SKU's would not decrease if close-up toothbrush were to position the Precisioas a nice
product. And four, if costs were to decrease then it enables Close-upto reduce the losses of
Precision if it were not successful.
Product promotion is communication spread through advertising, publicity, and sales promotion.
We suggest that Colgate-Palmolive advertise their products by using commercial, magazine ads,
the radio, ads that are to be placed in dentist offices, billboards, and the sides of buses.
Advertising is done to promote new products, remind consumers of existing products, and also
promote the image of the company at hand.We also suggested that Close-up offer special
coupons and rebates through their other products, and also food products. Also, Close-up
toothbrush could benefit from the usage of in-store displays.

P&G- The target market for the Oral-B Advantage would be teenagers to adults. Oral-B targets
consumers who are everyday people concerned about their oral hygiene and prefer to use a
manual tooth brush.
Like many other products, the Oral-B Advantage uses mass sales. There are ads in magazines,
on the internet, on television, and coupons in newspapers. These ads show the versatility and
effectiveness of the brush. They emphasize on the sleek design and the ability to pick the color
of your choice. They have people showing the visual effects of how these toothbrushes have
helped their oral health. They have people give accounts of how clean their mouth feels. The
Oral-B slogan trust the brush more dentists use litters ads and encourages consumers to be part
of the Oral-B experience. All of this seems attractive to retailers and helps Oral-B get on their
shelves. Then Oral-B representatives can do some face to face personal selling to further
promote the product.
The launch of Advantage was supported by media advertising, display drives and a strong
distribution network of over 3,20,000 outlets. The ad campaign for Oral-B Advantage was to
break in the media. The company placed advertisements in print which named the outlets where
the offer was available. The number of outlets were over 100. A new Oral-B Advantage was
being given free in exchange for any old toothbrush. For every old toothbrush collected, Oral-B
donated Rs. 3 to Prayaas (Mumbai based NGO). The program was held for two days in six cities
each.

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