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8/20/2019 Procter & Gamble | P&G CEO Challenge 2019-2020: Online Case Study (INDIA)
P&G CEO Challenge 2020 KEY DATES & FAQ
STRATEGIC CASE STUDY INDIA
P&G CEO Challenge 2019-2020: Online

Case Study (INDIA)
00h 07m 25s National 9 3

current stage entries hours left
Show Instructions
Case Study: Introduction
Michael was walking past the long shopping racks and carefully
examining the rich assortment of pasta products evenly spaced on
the shelves of his favorite supermarket. He wanted to buy something
new and unusual so that he and his wife could cook a festive dinner to
celebrate their anniversary. He felt a bit lost and puzzled, as00h 07m 25s
he was
https://www.pg-ceochallenge.com/contests/2020-pg-ceo-india 1/21
impressed and amused by the wide range of pasta products that he

saw. He was passing by and glancing over spaghetti, fitini, tortiglioni,
farfalle, linguine, gnocchi, coude and many other products he have
never noticed before.
Michael decided to be strategic, he took out his smartphone and

googled: “Unusual delicious pasta meals”. The first result that came
up was a forum where people shared their favorite recipes and voted
for the quality of different products. In the matter of two minutes he
made his decision, grabbed the recommended linguine pasta and
decided to cook tetrazzini dish.
Michael quickly walked through the store and added all other
products he needed to the basket and headed to the tills section. On
his way to the cash desks Michael saw a big queue waiting to get
service. Even though it was the end of the working day and the rush
hours for the supermarket, Michael very rarely saw any queues in this
store. When he came closer he saw that busy workers were trying to
fix some broken self-service machines that would not accept cash.
Because of that some customers had to queue at the traditional-
serviced cash desk. Michael opened up his wallet, took out his card
and went straight to one of the self-serviced machines to pay for his
groceries.
On the way home Michael was thinking about how quickly digital
technologies became an inseparable part of our everyday life and
how much business efficiency is now tightened with their exploitation.
Even though Michael himself worked in Procter & Gamble – one of the
biggest Consumer Packaged Goods (CPG) Company and was
working very closely with retailers and supermarkets, today he
learned what it feels like to be on a customer’s side.
As an experienced Brand Manager of the Head & Shoulders brand

Michael knew almost everything there is about the haircare market,
different brands and products, marketing, product positioning and
pricing strategy. But when it came to choosing something new at
some point he felt lost and disoriented. He felt that today’s 00h 07m 25s
experience would be of great value to him, as just couple of days ago

he was given big new project – to develop an integrated digital
strategy for Head & Shoulders. He started reflecting on today’s
experience.
Digital technologies can offer enormous benefits to the business as

they provide means to cut down the operational expenses and
increase the overall efficiency. Michael himself felt privileged to skip
the queue and pay for his products without any need to wait and talk
to anyone. Plus, he preferred not to have coins and cash on him so he
would always pay by card. Thinking about that, it is obvious that
digital technologies not only change the existing business models and
associated value chains; most importantly they change all of us - the
end-consumers.
Consumers are constantly bombarded with information, they make

decisions faster, want to have a wider choice and interact with each
other at unprecedented speed. Only in a matter of minutes Michael
made a choice regarding his product basket.
Digital experience is also changing the traditional purchasing

pathway: “discover, search, locate, and buy”. The new pathway is a
non-linear and fragmented web of online and in-store interactions and
most importantly it differs between customers. Some people use
smartphones, some people order from desktops and some search to
get the information prior to the purchases. That is the reason why
strong brand positioning both online and offline as well as timely
employment of digital technologies become key to perform well in
competitive markets.
On the other hand, if something goes wrong, as in the case with self-
service machines at the shop today - Michael thought, your business
might suffer enormous losses by directly losing profit or losing
customers loyalty. Today risks are higher than ever, but one cannot
ignore digital technologies, as in today’s world it is key to maintain
the market share. We live in so-called “winner-take-it-all Digital
World”, - Michael concluded. 00h 07m 25s
He paused for a moment surprised he said it out loud. He looked

around and realized that he was so deeply into his thoughts that he
didn’t notice he was already approaching his house.
Inspired by his walk Michael thought about how he should plan his
work. He needs to get familiar with key digital trends so that he can
evaluate the growth opportunities, risks and threats. He also
understood that the key for developing a good strategy would be to
integrate customers’ experiences and needs. Michael already
collected some interesting analytical materials and had some ideas
and thoughts on top of his mind. He decided he would look through
the materials while he waits for his wife, as he wanted to share
thoughts and discuss the topic with her.
Question 1 (CMK): What as Michael thought would be of key

importance when formulating the overall integrated digital strategy?
Choose one from the following:
(Required)
To evaluate current haircare market trends
To conduct analysis of the Head & Shoulders competitors
To integrate customers’ experiences and needs
To outline digital market trends
Procter & Gamble Family

Global Procter & Gamble
PROCTER & GAMBLE CORPORATE FINANCIAL HIGHLIGHTS

Amounts in billions, except per share amount
2017 2016 2015 2014 00h

201307m
201225s
https://www.pg-ceochallenge.com/contests/2020-pg-ceo-india FY 4/21
FY
Net Sales 65,10 65,3 70,2 74,2 73,9 73,1
Operating income 13,96 13,4 11 13,9 13,1 12,5
Net earnings attributable to Procter &

15,33 10,5 7 11,6 11,3 10,8
Gamble
Net earnings margin from continuing

15,70 15,4 11,7 14,3 14 12,1
operations, %
Dividends per common share, $ 2,70 2,66 2.59 2,45 2,29 2,14
The businesses in each sector are focused on common consumer benefits, share common
technologies, and face common competitors.
Question 2 (Finance): What is P&G average operating income for the

period 2012-2016? Choose one from the following:
(Required)
12,98
12,78
12,95
13,07
Question 3 (Sales): What is a share of haircare segment in P&G net

sales? Choose one form the following: 00h 07m 25s
(Required)
Less than 18%
18%
Less than 28%
10%
Question 4 (Finance): Which statements are true regarding 2016

financial performance compared to 2015? Select all answers that
apply:
(Required)
P&G operating income increased
P&G net sales decreased
P&G operated at lower margins
P&G showed weaker performance
GBUs (Categories) Major Brands
Hair Care (Conditioner, Shampoo, Styling Aids, Head & Shoulders,

Beauty
Treatments) Pantene, Rejoice
Skin and Personal Care (Antiperspirant and Olay, Old Spice,

Deodorant, Personal Cleansing, Skin Care) Safeguard, SK-II
Braun, Fusion,
Grooming (Shave Care - Female Blades & Razors,
Gillette, Mach3,
Grooming Male Blades & Razors, Pre- and Post-Shave Products,
Prestobarba,
Other Shave Care; Appliances)
Venus
Health Oral Care (Toothbrushes, Toothpaste, Other Oral

Crest, Oral-B
Care Care)
Personal Health Care (Gastrointestinal, Rapid

Diagnostics, Respiratory,
Prilosec, Vicks
Vitamins/Minerals/Supplements, Other Personal
Health Care)
00h 07m 25s
Fabric & Fabric Care (Fabric Enhancers, Laundry Additives, Ariel, Downy, Gain,
Home Laundry Detergents) Tide
Care
Cascade, Dawn,
Home Care (Air Care, Dish Care, P&G Professional,
Febreze, Mr. Clean,
Surface Care)
Swiffer
Baby,
Feminine
Baby Care (Baby Wipes, Diapers and Pants) Luvs, Pampers
& Family
Care
Feminine Care (Adult Incontinence, Feminine Care) Always, Tampax
Family Care (Paper Towels, Tissues, Toilet Paper) Bounty, Charmin
1- The Grooming product category is comprised of the Shave Care and

Appliances GBUs.
Question 5 (Marketing): Which of the P&G segments has more

brands than others? Choose one from the following:
(Required)
Beauty
Fabric& Home care
Grooming
00h 07m 25s
Health care
Question 6 (Sales): Which geographical region is the most important

for P&G in terms of net sales share? Choose one from the following:
(Required)
Latin America
Europe
North America
Asia Pacific
Head & Shoulders Brand inside P&G

Procter & Gamble created Head & Shoulders in 1961. It all started when
Procter & Gamble researchers discovered the dandruff treating abilities of
pyrithione zinc (ZPT), which allowed them to create an effective
treatment. Back then there was no other product on the market that
would truly treat the dandruff rather than simply mask associated
symptoms. At the same time approximately 50% of the population
experience scalp issues, that is why Head & Shoulders quickly became a
billion dollar company.
Today researchers continue their work to perfect the formula, but the
main active ingredient stays the same and is present in all of the Head &
Shoulders products. Overall now the company is considered the #1 brand
in the anti-dandruff hair care.
Head & Shoulders Haircare Products
There are 4 basic product types within the Head & Shoulders brand.
Company manufactures shampoos, conditioners, 2-in-1 shampoos and
conditioners as well as newly launched clinical solution range for severe
dandruff sufferers.
00h 07m 25s

Shampoos. Head & Shoulders shampoo was the first product on the
haircare market that contained ZPT. Pyrithione zinc was repeatedly
shown to effectively combat the main cause of the dandruff – the
excessive spread of the fungus Malassezia. Different shampoos are
specially formulated to deal with dandruff and the varying spectrum of
the associated symptoms, such as dry scalp or irritation.
2-in-1s. 2-in-1 products were specially created for people that are short
on time or want to avoid a lengthy hair care routine. Range of 2-in-1
products provide all of the dandruff fighting power consumers expect,
while combining the benefits of both shampoo and conditioner.
Conditioners. Similarly to other products on the market Head &

Shoulders’ conditioners moisturize both hair and the scalp, but they are
also specially formulated to prevent the spread and reversal of the
dandruff symptoms. For best results and healthy hair it is advisable to
combine Head & Shoulders conditioner with Head & Shoulders shampoo
from the same product line.
Clinical solutions. Clinical solutions were formulated to specifically

combat severe dandruff. Products provide up to 7 days’ protection and
are clinically proven to help treat even the most persistent dandruff
flakes, Head & Shoulders Clinical Solutions not only fights the most
persistent itch caused by dandruff, but also leaves the hair feeling soft,
clean and smelling fresh. 
Sample List of Head & Shoulder Products
Shampoo 2-IN-1 Conditioner Clinical Solutions
Men Ultra Hair Men Ultra Smooth & Silky Clinical Solutions Dandruff
Booster Total Care Conditioner Shampoo
Men Ultra Max Classic Clean Repair & Care Clinically Proven Solutions Scalp
Oil Control 2-in-1 Conditioner Relief Shampoo
Nourishing Care Smooth & Thick & Strong

Shampoo Silky 2-in-1 Conditioner
Classic Clean Itchy Scalp Classic Clean 00h 07m 25s

Shampoo 2-in-1 Conditioner
Itchy Scalp Citrus Fresh Apple Fresh

Shampoo 2-in-1 Conditioner
Sensitive Scalp For Men 2-in-

Shampoo 1
Smooth & Silky Apple fresh

Shampoo 2-in-1
Citrus Fresh Sensitive

Shampoo Scalp 2-in-1
Cool Menthol
Shampoo
Repair & Care

Shampoo
Apple Fresh
Shampoo
Thick & Strong

Shampoo
Head & Shoulders product portfolio is country-specific, but all products

are tightly aligned with existing consumer segments, derived from the
analysis of the haircare market trends and deep research of the
population needs and preferences.
How haircare products get to consumers?
Traditionally CPG companies do not sell their products directly to

consumers. Their products are distributed via hypermarkets and
supermarkets, specialty retailers, department stores, online retailers,
drugstores and pharmacies, as well as warehouse clubs and salons.
However, some companies are already creating virtual online stores or are
selling directly to consumers through marketplaces. The most significant
customer for Procter & Gamble is WalMart, Inc. and its affiliates that
contribute 15% of total revenue. No other customer represents00hmore 07mthan25s
10% of net sales. Overall, top ten customers account for approximately
35% of total sales.
Consumers are the end-users of the product; Customers/ Channel

partners sell the products through their retail outlets to consumers.
Head & shoulders distribution model 
Question 7 (CMK): What is true about Head & Shoulders product

range? Select all answers that apply:
(Required)
Head & Shoulders sell products only for men
2-in-1 products were developed to shorten traditional haircare
routine
00h 07m 25s
Consumers want to buy shampoo and conditioner products from

same collections
Head & Shoulders brand markets unisex products
Question 8 (Logistics): What is true about Head & Shoulders

distribution model? Select all answers that apply:
(Required)
Head & Shoulders do not sell products directly to consumers
Head & Shoulders does not pay for logistics of the manufactured
products
Head & Shoulders products are distributed through online and
offline retailers and directly to consumers
Inventories are important to control the relationships with channel
partners
Question 9 (Logistics): What is true about P&G customers (channel

partners)? Select all answers that apply:
(Required)
15% of revenue is generated by Walmart Inc. and its affiliates
22% share of net sales is owned by Amazon
Together top-10 customers generate 35% of total sales
P&G never shares costs for product promotion
Global Haircare Market

General information
The Global haircare market is expected to grow from $72,5 billion in 2016
to $83,1 billion by 2025, at a CAGR of 1,58%. For all major players of the
CPG industry haircare is an important strategic segment as it contributes
00h 07m 25s

more than 15% of the total global beauty and personal care market
revenue.
Asia-Pacific haircare market is expected to have the largest share by

2025 due to increasing middle-class population and rising disposable
incomes, with major markets within the region being Japan, China and
India. At the same time some countries in Latin America are anticipated
to grow at a faster rate with CAGR of 2,86% until 2025, and Brazil already
accounts for the largest share of the haircare market. Meanwhile
European haircare market generated approximately $17 billion revenue in
2016, due to the rising number of fashion-sensible consumers in the
region. Major markets in Europe include; Germany, France, United
Kingdom, Italy, Spain, Poland, and Russia. Lastly, North American region
accounts for 19,54% of the global haircare market.
Generally, there are multiple ways to segment the haircare market, but
traditionally people distinguish health/cosmetic, herbal and anti-dandruff
markets.
Major players of the global anti-dandruff market
The increasing level of air pollution globally is associated with increased

prevalence of many hair-related problems, including dandruff, itchy scalp
and hair fall. Today majority of the anti-dandruff products also offer
multiple other benefits like scalp care, better hair texture, and reduction
of the hair fall. That is why market segmentation becomes more blurred.
It is becoming more difficult to distinguish direct and indirect
competitors. Nevertheless, Head & Shoulders and Clear are still among
the leading anti-dandruff shampoo brands globally.
Question 10 (Finance): What was the share of European segment in

global haircare market revenue in 2016? Choose one from the
following:
(Required)
19,54%
00h 07m 25s
20,4%
23%
25%
Question 11 (Marketing): Which brand is the most prominent Head &

Shoulders competitor? Choose one from the following:
(Required)
Pantene
Sunsilk
Nizoral
Clear
Male Haircare. Overall, men hair care market is rapidly expanding and is
forecasted to grow by 11% by 2020, reaching £94 million. Moreover, 2015
was the first year when consumers expressed more interest in men’s hair
than women’s hair on Google (by around 6%). Today nearly 22% of males
want products just for men.
Natural. Organic and plant-based ingredients are dominating hair care

product development in 2017. Around 34% of women are interested in
products with natural or organic ingredients, moreover, 33% have
switched to natural/organic brands during the last year. Popular
ingredients include: aloe vera, shea butter and plant oils such as argan,
olive, almond and carrot seed oil.
00h 07m 25s

Salt- free formulations growing outside of Brazil. Salt is used by

formulators as a viscosity modifier to thicken shampoos and conditioners.
Brazilian consumers link the presence of salt in shampoos to hair
damage. In 2013, 97% of salt free hair products were launched in Brazil,
but by 2017 that ratio decreased to 82%. Argentina, Mexico and Colombia
launching a combined 12% of global salt-free Formulas. Salt-free haircare
products will continue to remain relevant as long as consumers associate
ocean salt water with unruly hair and hair damage. Salt-free shampoos
and conditioners will continue to grow outside Brazil meanwhile
strengthening their association with moisturizing/hydrating and hair
repair claims.
Seasonality. Consumers are becoming increasingly aware and concerned

about how the environment affects the condition of their hair, and are
00h 07m 25s
therefore looking for products that benefit their hair all year round. There
has been an increased interest in shampoos and conditioners that
moisturise hair in the winter and offer UV protection in the summer.
Caring for the scalp. Caring for the scalp, as well as the hair, has been a
key growth trend, with a focus on ingredients that provide moisturisation,
hydration and nourishment for the scalp. In fact, 51% of consumers in
Europe show interest in scalp protecting products, according to recent
Mintel studies. This has seen growth in all markets from Europe, to Asia
Pacific, North America and Latin America.
Fast. Overall, today consumers are interested in products that will help to
shorten traditional hair care routine, for example, 52% of US consumers
started using dry shampoo, while 58% of men are using to 2-in-1 or co-
wash products.
Multibenefit products. Consistent with trends in the skincare and color

cosmetics categories, multi-benefit products are also gaining traction in
the haircare category. In particular, cleansing conditioners generate the
highest levels of enthusiasm, with more than half (58%) of haircare users
reporting interest. Frequent shampooing has received some backlash,
due to the potentially stripping effects of surfactants, helping to spark
interest in shampoo alternatives such as cleansing conditioners.
Single-use products. Mintel reports that 40% of haircare consumers hold

interest in single-use haircare products meant for on the go-use. Offering
products in single sample sizes also allow a low risk option for the
consumer to try something before deciding if they want to purchase a full
sized product.
Question 12 (CMK): Which of the following statements describe

current haircare market trends? Select all answers that apply:
(Required)
Majority of men want hair care products just for men 00h 07m 25s
More than half of haircare users are reporting interest in multi-

benefit products
Increased interest in scalp caring products is seen globally
52% of men switched to co-wash products to substitute
traditional hair care routine
Question 13 (Marketing): What is true about trends in hair care

marketing? Select all answers that apply:
(Required)
Consumers experience increased interest in paraben-free haircare
products
Silicone-free trend is declining
Majority of the consumers now buy exclusively natural and
organic products
All-natural products are better marketed than organic products
Consumers in the digital age
(source)
Consumer behavior is less predictable than ever, consumers are no longer

online or offline. Multiple channels are integrated along the purchasing
way, while digital sales channels might be the end-point of the chain or
serve as primary source of information about packaging options, ease of
use, convenience or main ingredients.
(source)
00h 07m 25s

Power once held by retailers to shape the marketplace is being

undermined by digitally empowered consumers who want ‘anytime
shopping anywhere.’ This change potentially augurs well for CPG
companies, giving added independence from intermediaries and the
potential to exercise more direct control over the market. The digital
space constitutes a realm where manufacturers can implement strategy
and tactics with a freedom that is unavailable through traditional retail
channels.
Question 14 (Logistics): How do supply chains change in the New

Digital World? Select all answers that apply:
(Required)
Consumers expect fast delivery, it becomes an important KPI for
the business
CPG companies are building up their supply chains to deliver
products directly to consumers
Majority of the consumers do not visit store during their purchase
30% of people choose store pick-ups as a primary delivery option
Question 15 (Sales): Choose one correct statement
(Required)
9% of consumers finish their purchase on a Tablet
71% of consumers go on to use PC/laptop at the 2 step of their
purchasing pathway
Majority of the e-consumers start their purchase via smartphone
Majority of e-consumers end their purchase via a Tablet
Additional Information
Team Information 00h 07m 25s

Please select your country

below:
(Required)
Select an Option
Please select your team's

campus from the list below:
(Required)
Select an Option
Team Leader
Team leader first and last

name:
(Required)
Team leader email:
(Required)
Team leader phone number:
(Required)
Team Member #2
Team member #2 first and last

name:
(Required) 00h 07m 25s

Team member #2 email:
(Required)
Team Member #3
Team member #3 first and last

name:
(Required)
Team member #3 email:
(Required)
Is there anything else you would like to add to your submission?
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00h 07m 25s

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8/20/2019 Procter & Gamble | P&G CEO Challenge 2019-2020: Online Case Study (INDIA)

P&G CEO Challenge 2020 KEY DATES & FAQ

STRATEGIC CASE STUDY INDIA

P&G CEO Challenge 2019-2020: Online

00h 07m 25s National 9 3

Case Study: Introduction

impressed and amused by the wide range of pasta products that he

Michael decided to be strategic, he took out his smartphone and

As an experienced Brand Manager of the Head & Shoulders brand

experience would be of great value to him, as just couple of days ago

Digital technologies can oﬀer enormous beneﬁts to the business as

Consumers are constantly bombarded with information, they make

Digital experience is also changing the traditional purchasing

He paused for a moment surprised he said it out loud. He looked

Question 1 (CMK): What as Michael thought would be of key

Procter & Gamble Family

PROCTER & GAMBLE CORPORATE FINANCIAL HIGHLIGHTS

2017 2016 2015 2014 00h

Net Sales 65,10 65,3 70,2 74,2 73,9 73,1

Operating income 13,96 13,4 11 13,9 13,1 12,5

Net earnings attributable to Procter &

Net earnings margin from continuing

Question 2 (Finance): What is P&G average operating income for the

Question 3 (Sales): What is a share of haircare segment in P&G net

Question 4 (Finance): Which statements are true regarding 2016

GBUs (Categories) Major Brands

Hair Care (Conditioner, Shampoo, Styling Aids, Head & Shoulders,

Skin and Personal Care (Antiperspirant and Olay, Old Spice,

Health Oral Care (Toothbrushes, Toothpaste, Other Oral

Personal Health Care (Gastrointestinal, Rapid

Feminine Care (Adult Incontinence, Feminine Care) Always, Tampax

Family Care (Paper Towels, Tissues, Toilet Paper) Bounty, Charmin

1- The Grooming product category is comprised of the Shave Care and

Question 5 (Marketing): Which of the P&G segments has more

Question 6 (Sales): Which geographical region is the most important

Head & Shoulders Brand inside P&G

Head & Shoulders Haircare Products

00h 07m 25s

Conditioners. Similarly to other products on the market Head &

Clinical solutions. Clinical solutions were formulated to speciﬁcally

Sample List of Head & Shoulder Products

Shampoo 2-IN-1 Conditioner Clinical Solutions

Nourishing Care Smooth & Thick & Strong

Classic Clean Itchy Scalp Classic Clean 00h 07m 25s

Shampoo 2-in-1 Conditioner

Itchy Scalp Citrus Fresh Apple Fresh

Sensitive Scalp For Men 2-in-

Smooth & Silky Apple fresh

Citrus Fresh Sensitive

Repair & Care

Thick & Strong

Head & Shoulders product portfolio is country-speciﬁc, but all products

How haircare products get to consumers?

Traditionally CPG companies do not sell their products directly to

Consumers are the end-users of the product; Customers/ Channel

Head & shoulders distribution model

Question 7 (CMK): What is true about Head & Shoulders product

Consumers want to buy shampoo and conditioner products from

Question 8 (Logistics): What is true about Head & Shoulders

Question 9 (Logistics): What is true about P&G customers (channel

Head & shoulders distribution model 