Marketing Strategy of PROCTER AND GAMBLE (P&G)
Marketing Strategy of PROCTER AND GAMBLE (P&G)
Marketing Strategy of PROCTER AND GAMBLE (P&G)
On
New Delhi-110037
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CERTIFICATE
This is to certify that the project title MARKETING STRATEGY OF PROCTER &
student of B.COM(H), 2nd Semester, and has been duly completed the project u
This work has been done in the partial fulfillment of the requirement for the award of
the degree of B. Com (H), from Fairfield Institute of Management and Technology,
New Delhi, and has not been submitted anywhere in any other university for the
Mr. Kawaljeet
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ACKNOWLEDGEMENT
me to complete my project. First of all, let me praise god for all blessings, which
and Technology, which inculcated in me utmost respect for human values and
First and foremost, I would like to express me regards to Mr. Kawaljeet for her
gratitude towards all the lectures of our college for providing the invaluable
project.
I extend my sincere gratitude to all my teachers and guide who made unforgettable
contribution. Due to their sincere efforts I was able to excel in the work entrusted
upon me.
Signature of Student
VISHWAS MEHTA
01851488819
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EXECUTIVE SUMMARY
The marketing plan plays an integral role in realizing the company’s strategic goals.
This marketing plan focused on internal and external operational environment for
Cincinnati, Ohio, in the United States. The company enjoys market leadership in
consumer goods industry. However, P&G has witnessed its market dominance
steadily decrease over time as competitors stake their claim to the lucrative industry.
This marketing plan established the current operational environment of the company,
its internal strengths, opportunities for growth and threats. The goals of the
marketing plan are to grow the company’s market share by increasing sales and
revenues from the current 7% to 35% by exploiting the emerging markets. Another
Nigeria, and Saudi Arabia. Once implemented, the plan would lead to strengthening
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TABLE OF CONTENTS
CHAPTER I: Introduction 8
Objectives Of Study 28
Review Of literature
Research Methodology 29
Bibliography 64
Annexures 65
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CHAPTER I
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INTRODUCTION
The evaluation of the business model of the company and the organizational
structure would also be done in order support the analysis and estimate the
largest packaged product companies in the world. This fact has always motivated the
company for their purpose inspired growth. The company's mission is to improve the
lives of the customers round the world. The company wants to design the products
for maximum customer delight and conserving the natural resource (P&G, 2012). It
wants to win the customers, and help its leading brands to grow and expand into
different countries. It wanted to focus mainly on the core business and build is strong
global market leaders. The company also has the objective maintaining growth and
health, and personal care and hygiene products; these products are organized into
several segments including Beauty; Grooming; Health Care; Fabric & Home Care;
and Baby, Feminine, & Family Care. Before the sale of Pringles to Kellogg's, its
product portfolio also included foods, snacks, and beverages. P&G is incorporated in
Ohio. In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G
announced it was streamlining the company, dropping and selling off around 100
brands from its product portfolio in order to focus on the remaining 65 brands, which
CEO until October 31, 2015—said the future P&G would be "a much simpler, much
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less complex company of leading brands that's easier to manage and operate".
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INDUSTRY PROFILE
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
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
FMCG products are generally replaced or fully used up over a short period, usually a
care detergents,
household cleaners,
mosquito resellers
Personal care Oral care ,skin care, P&G, HUL, ITC, Femcare, Lakme,
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toiletries and Colgate-Palmolive
cosmetics,
deodorants, female
hygiene products
,paper products
Snacks, bakery
chocolates, braded
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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
• 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
• It has significant links with the agriculture sector and 71% of the sales come
also has accountable contribution in the total corporate tax, central excise
• the main challenges for the new players are huge investment, strong
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SWOT analysis of the FMCG industry
Strengths: Weaknesses:
sector.
iii. Economies of scale.
Opportunities: Threats:
market.
ii. Taxation and regulatory
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v. Penetration in rural markets resulting in replacement of
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COMPETITION IN THE MARKET
Also, competition among the MNCs has increased resulting in shrinkage of margins.
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ORIGINS
Candlemaker William Procter, born in England, and soapmaker James Gamble, born
in Ireland, both emigrated from the United Kingdom. They settled in Cincinnati,
Ohio initially and met when they married sisters Olivia and Elizabeth Norris.
and in 1837 PROCTER & GAMBLE was created. In 1858–1859, sales reached
$1 million. By that point, about 80 employees worked for PROCTER & GAMBLE.
During the American Civil War, the company won contracts to supply the Union
Army with soap and candles. In addition to the increased profits experienced during
the war, the military contracts introduced soldiers from all over the country to
PROCTER & GAMBLE's products. In the 1880s, PROCTER & GAMBLE began to
market a new product, an inexpensive soap that floated in water. The company
called the soap Ivory. William Arnett Procter, William Procter's grandson, began
a profit-sharing program for the company's workforce in 1887. By giving the workers
a stake in the company, he correctly assumed that they would be less likely to go on
strike.The company began to build factories in other locations in the United States
because the demand for products had outgrown the capacity of the Cincinnati
facilities. The company's leaders began to diversify its products, as well, and in 1911,
began producing Crisco, a shortening made of vegetable oils rather than animal fats.
As radio became more popular in the 1920s and 1930s, the company sponsored a
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INTERNATIONAL EXPANSION
The company moved into other countries, both in terms of manufacturing and
product sales, becoming an international corporation with its 1930 acquisition of the
Thomas Hedley Co., based in Newcastle upon Tyne, England. After this acquisition,
upon Tyne, until quite recently, when they moved to The Heights, Brooklands.
Numerous new products and brand names were introduced over time, and
PROCTER & GAMBLE began branching out into new areas. The company
introduced Tide laundry detergent in 1946 and Prell shampoo in 1947. In 1955,
PROCTER & GAMBLE began selling the first toothpaste to contain fluoride, known
as Crest. Branching out once again in 1957, the company purchased Charmin paper
mills and began manufacturing toilet paper and other tissue paper products. Once
again focusing on laundry, PROCTER & GAMBLE began making Downy fabric
softener in 1960 and Bounce fabric softener sheets in 1972. One of the most
revolutionary products to come out on the market was the company's disposable
Pampers diaper, first test-marketed in 1961, the same year PROCTER & GAMBLE
came out with Head & Shoulders. Prior to this point, disposable diapers were not
popular, although Johnson & Johnson had developed a product called Chux. Babies
always wore cloth diapers, which were leaky and labor-intensive to wash. Pampers
requiring landfilling. Amid the recent concerns parents have voiced on the
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FURTHER DEVELOPMENTS
PROCTER & GAMBLE acquired a number of other companies that diversified its
product line and significantly increased profits. These acquisitions included Folgers
Vicks, Noxell (Noxzema), Shulton's Old Spice, Max Factor, the Iams Company, and
Pantene, among others. In 1994, the company made headlines for big losses
resulting from levered positions in interest rate derivatives, and subsequently sued
Bankers Trust for fraud; this placed their management in the unusual position of
testifying in court that they had entered into transactions that they were not capable
of understanding. In 1996, P&G again made headlines when the Food and Drug
known by its brand name 'Olean', Olestra is a lower-calorie substitute for fat in
cooking potato chips and other snacks. In January 2005, P&G announced the
acquisition of Gillette, forming the largest consumer goods company and placing
Unilever into second place. This added brands such as Gillette razors, Duracell,
Braun, and Oral-B to their stable. The acquisition was approved by the European
Union and the Federal Trade Commission, with conditions to a spinoff of certain
toothbrush business to Church & Dwight, and Gillette's Rembrandt toothpaste line to
Johnson & Johnson. The deodorant brands Right Guard, Soft and Dri, and Dry Idea
were sold to Dial Corporation. The companies officially merged on October 1, 2005.
Liquid Paper and Gillette's stationery division, Paper Mate, were sold to Newell
Rubbermaid. In 2008, P&G branched into the record business with its sponsorship of
Tag Records, as an endorsement for TAG Body Spray. P&G's dominance in many
one of their products cannibalizing the sales of another. On August 25, 2009, the
P&G's prescription-drug business for $3.1 billion. P&G exited the food business in
2012 when it sold its Pringles snack food business to Kellogg's for $2.75 billion after
the $2.35 billion deal with former suitor Diamond Foods fell short. The company had
previously sold Jif peanut butter, Crisco shortening and oils, and Folgers coffee in
separate transactions to Smucker's. In April 2014, the company sold its Iams pet
food business in all markets excluding Europe to Mars, Inc. for $2.9 billion. It sold the
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FINANCES
For the fiscal year 2018, PROCTER & GAMBLE reported earnings of US$9.750
billion, with an annual revenue of US$66.832 billion, an increase of 2.7% over the
previous fiscal cycle. PROCTER & GAMBLE's Shares traded at over $86 per share
in 2017, and its market capitalization was valued at over US$221.5 billion in October
2018. PROCTER & GAMBLE ranked No. 42 on the 2018 Fortune 500 list of the
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CATEGORIES OF PRODUCTS
• Baby Care
• Fabric Care
• Family Care
• Feminine Care
• Grooming
• Hair Care
• Home Care
• Oral Care
• Personal Health Care
• Skin & Personal Care
• Asia Pacific
• Europe
• Greater China
• India, the Middle East, and Africa (IMEA)
• Latin America
• North America
• David S. Taylor
• Frank Blake
• Angela Braly
• Amy L. Chang
• Scott Cook
• Joseph Jimenez
• Terry J. Lundgren
• W. James McNerney, Jr.
• Nelson Peltz
• Christine McCarthy
• Meg Whitman
• Patricia A. Woertz
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BRANDS
As of 2015, 21 of P&G's brands have more than a billion dollars in net annual sales.
available on several continents. P&G's products are available in North America, Latin
America, Europe, the Middle East, Africa, Asia, Australia, and New Zealand. In 2018,
P&G's fabric and home care division accounted for 32% of the company's total net
sales, the highest of all its divisions. The division includes Downy, Gain, Tide,
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LIST OF PROCTLE AND GAMBLE BRANDS (BY PRODUCT TYPES)
DISHWASHING
MENSTRUAL HYGIENE
HAIRCARE
HEALTHCARE PRODUCTS
• Align probiotics
• Crest toothpaste
• Femibion (acquired from Merck Group)
• Fixodent denture adhesive
• Iliac/Nasivin (acquired from Merck Group)
• Metamucil laxative/fiber supplement (acquired G. D. Searle & Company in 1985)
• Neurobion (acquired from Merck Group)
• New Chapter dietary supplements
• Oral-B toothbrushes and other oral hygiene products
• Pepto-Bismol over-the-counter drug for minor digestive system upset (acquired
as part of Norwich Eaton Pharmaceuticals in 1982)
• Prilosec OTC (licensed from AstraZeneca)
• Sangobion (acquired from Merck Group)
• Scope mouthwash
• Seven Seas (acquired from Merck Group)
• Swisse
• Vicks cough and cold products
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HOUSEHOLD
LAUNDRY DETERGENTS
SKIN CARE
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DIVERSATED BRANDS
• Actonel (pharmaceutical division was spun off into Warner Chilcott in 2009)
• Aleve, naproxen sodium (NSAID) drug, acquired by Bayer in 1997
• Asacol
• Attends line of incontinence and sanitary products. Sold to PaperPak in 1999.
• Biz originally an enzyme-based laundry pre-soak, later a detergent booster, then
an all-fabric bleach, sold to Redox Brands in 2000
• Camay lightly scented bath soap
• Chloraseptic throat medicine and lozenges sold to Prestige Brands.
• Cinch all-purpose glass and surface cleaner, was sold to Shansby Group, a San
Francisco investment firm, later acquired by Prestige Brands.
• Clairol, formerly a personal products division of PROCTER & GAMBLE that
makes hair coloring, hair spray, shampoo, hair conditioner, and styling products.
It was sold to Coty, Inc. on October 1, 2016
o Balsam coloring brand (part of Clairol)
o Herbal Essences hair care products (part of Clairol)
o Natural Instincts hair coloring (part of Clairol)
o Perfect Lights hair coloring (part of Clairol)
• Coast bar-soap brand sold to Dial Corporation in 2000. Dial now owned
by Henkel, Coast brand now owned by High Ridge Brands.
• Comet long-time P&G brand of cleanser owned now by Prestige Brands
• Crisco (vegetable oil and shortening) sold to The J.M. Smucker Company
• Crush/Hires/Sun Drop carbonated soft drinks (sold to Cadbury Schweppes in late
1980s)
• Dantrium sold to JHP Pharmaceuticals and SpePharm
• Duncan Hines packaged cake mixes, sold to Aurora Foods (now Pinnacle Foods)
in 1998
• Duracell batteries sold to Berkshire Hathaway in 2016.
• Fisher Nuts sold to John B. Sanfilippo and Son, Inc. in 1995
• Fit fruit and vegetable cleaning wash licensed to HealthPro Brands in January
2004
• Folgers coffee was acquired by The J.M. Smucker Company based in Orrville,
Ohio in June 2008.
• Gleem toothpaste
• Hawaiian Punch now owned by Dr Pepper/7up
• Iams cat and dog foods sold to Mars Corporation in 2014.
• Infusium 23 (shampoos/conditioners) sold to Helen of Troy Limited's Idelle
Labs unit in March 2009
• Jif (peanut butter) divested by PROCTER & GAMBLE in a spin-off to their
stockholders, followed by an immediate merger with The J.M. Smucker
Company in 2002
• Joy operations in the United States was sold to Prestige Value Brands in
September 2019.
• Lava sold to WD-40 in 1999
• Lilt Home Permanents, including "Push Button" Lilt, The First "Foam-In" Home
Permanent In A Can. Sold To Schwartzkopf/DEP in 1987, later discontinued
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• Mayon cooking oil
• Millstone coffee was acquired by The J.M. Smucker Company as part of its
Folger's coffee acquisition in Orrville, Ohio in June 2008.
• Noxzema skin cream and beauty products line sold to Alberto-Culver in 2008
• Oxydol sold to Redox Brands in 2000; Oxydol was P&G's first popular laundry
soap, then later became a laundry detergent after Tide was introduced in 1946.
• Perla bar soap sold to SCPG Asia-Pacific
• Pert Plus was sold to Innovative Brands, LLC in July 2006.
• PG Tips tea; now owned by Unilever.
• Prell shampoo sold to Prestige Brands International in 1999
• Primex shortening (sold to ACH in 2001)
• Pringles potato chips sold to Kellogg Company in June 2012[16]
• Pur (brand) brand of water filtration products. The brand as acquired from
Recovery Engineering, Inc. in 1999 for approximately US$213 million. P&G sold
Pur to Helen of Troy in January 2012 for an undisclosed amount.
• Royale (Canada) brand of toilet paper. The original product was merged into the
Charmin brand; Irving Tissue then acquired the trademark and re-introduced the
brand on its own products.
• Salvo brand of detergent tablets which was sold from around 1958 up to circa
February 8, 1974
• Spic and Span now owned by The Spic and Span Company, a division
of Prestige Brands
• Sunny Delight orange drink spun off in 2004.
• Sunshine margarine
• Sure anti-perspirant/deodorant line was sold in October 2006 to brand-
development firm Innovative Brands
• ThermaCare brand heat wraps sold to medical company Wyeth in 2008
• Thrill a peach-scented brand of dishwashing liquid, discontinued after 1973.
• Top Job all-purpose cleaner merged into the Mr. Clean brand in 1990
• Victor shortening
• Wash & Go haircare sold to Conter S.r.l. effective June 30, 2015
• Wella, Clairol, Covergirl Makeup sold to Coty Inc (2016)
• Whirl butter flavored oil (sold to ACH in 2001)
• Wondra brand of hand lotion sold from 1976 to 1989.
• Zest deodorant body bar and body washes sold to High Ridge Brands Co. on
January 4, 2011
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DISCONTINUES BRANDS
Brands owned by PROCTER & GAMBLE in the past, but since phased out:
• Banner, Summit, and White Cloud toilet tissues were merged with the company's
best known bathroom tissue, Charmin. White Cloud was sold exclusively
in Walmart stores in the U.S. before Kruger Products took over the brand and,
with Walmart focusing on other brands, sold it in other stores
• Big Top, brand of peanut butter before Jif made its debut.
• Blossom, facial soap
• Bonus, brand of laundry detergent that had children's books or towels in every
box; sold from 1940s to 1977.
• Citrus Hill, orange juice drink sold from 1983 to 1992
• Drene (a.k.a. Special Drene, Royal Drene), liquid shampoo. First shampoo made
from synthetic detergent.
• Duz, powdered laundry soap and later, a powdered laundry detergent which had
glassware and plates in each box; sold from 1940s to 1980.
• Encaprin, coated aspirin
• Fling, disposable dishcloth brand.
• Fluffo, golden yellow shortening sold mid-1950s to early 1960s.
• Fresco bath soap
• Gleem, toothpaste last made in 2014. PROCTER & GAMBLE plans to sell the
Gleem formulation under the brand name Crest Fresh and White.
• High Point instant decaffeinated coffee, which had Lauren Bacall in its
commercials; produced from 1974 to 1986.
• Monchel, beauty soap
• Nutri Delight, an instant orange juice drink, sold in the Philippines from 1999 to
2000.
• OK, economy bar and packaged laundry soap.
• Rely, super-absorbent tampons in production from 1976 to 1980. It was pulled off
the market during the TSS crisis of the early 1980s.
• Salvo, first concentrated tablet laundry detergent, which was discontinued c.
February 8, 1974; later a dish detergent (sold in the U.S. 2004-2005; it is still sold
in Latin America)
• Shasta, cream shampoo sold late 1940s-mid-1950s.
• Solo, liquid laundry detergent with fabric softener that was later merged into the
Bold brand, and sold from 1979 to 1990.
• Star Soap and Star Naphtha Soap Chips
• Stardust, dry chlorine bleach (extensively test-marketed during the 1960s)
• Sunshine Margarine
• Teel, liquid dentifrice sold late 1930s to late 1940s.
• Tempo, brand of dry wipes, produced from 2000 to 2010.
• Tender Leaf, tea brand sold from 1940s to 1975.
• Thrill, dishwashing liquid last made in 1973
• Torengos, stackable, triangular-shaped, corn-based snack chip sold 2001-2003
• Wondra lotion for dry skin. There were many formulas. (The first major brand to
use "silicones") Sold from 1976 to 1989.
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OBJECTIVES
3) 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.
4) To find out how the company react to the new technology change in this
sector.
9) This study aims at focusing on the strategic and financial analysis of P&G.
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RESEARCH METHODOLOGY
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
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to calculate the desired statistics. Data analysis then leads to findings and
conclusion of the research.
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LIMITATIONS OF THE STUDY
observed:
● Some customers were in hurry so they were not given proper opinion.
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CHAPTER II
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COMPANY PROFILE
Neither William Procter nor James Gamble ever intended to settle in Cincinnati.
Although the city was a busy center of commerce and industry in the early
nineteenth century, William, emigrating from England, and James, arriving from
Ireland, were headed farther west. Despite their intentions, however, both men
ended their travels when they arrived at the Queen City of the West – William, to
care for his ailing wife Martha, who soon died, and James, to seek medical attention
for himself. William Procter quickly established himself as a candle maker. James
Gamble apprenticed himself to a soap maker. The two might never have met had
they not married sisters, Olivia and Elizabeth Norris, whose father convinced his new
1837 — 1890
1837 was a difficult time to start a business. Although Cincinnati was a bustling
marketplace, the U.S. was gripped by financial panic. Hundreds of banks were
closing across the country. There was widespread concern that the United States
was bankrupt. Yet, William and James launched their new enterprise, more
concerned about how to compete with the 14 other soap and candle makers in their
city than with the financial panic shaking their country. Their calm in the midst of that
approach that became the hallmark of PROCTER & GAMBLE. In the 1850s, for
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example, despite rumours of an impending civil war in the U.S., they built a new
plant to sustain their growing business. Later, they pioneered one of the nation‘s first
profit-sharing programs and were amo.ng the first in American industry to invest in a
GAMBLE had grown into a multi-million dollar corporation. Nevertheless, P&G still
1837
On April 12, 1837, William Procter and James Gamble start making and selling their
soap and candles. On August 22, they formalize their business relationship by
31, 1837.
1850
The Moon and Stars begins to appear in the 1850s as the unofficial trademark of
PROCTER & GAMBLE. Wharf hands used the symbol to distinguish boxes of Star
Candles. By the 1860s, the Moon and Stars appears on all Company products and
popularity with the invention of the electric light bulb. The Company discontinues
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1859-1862
Twenty-two years after the partnership is formed, P&G sales reach $1 million. The
Company now employs 80 people. During the Civil War, PROCTER & GAMBLE is
awarded several contracts to supply soap and candles to the Union armies. These
orders keep the factory busy day and night, building the Company‘s reputation as
1879
James Norris Gamble, son of the founder and a trained chemist, develops an
inexpensive white soap equal to high-quality, imported castiles. Inspiration for the
soap‘s name – Ivory – came to Harley Procter, the founder‘s son, as he read the
words out of ivory palaces in the Bible one Sunday in church. The name seems a
perfect match for the white soap‘s purity, mildness and long-lasting qualities.
1882
nationally for the first time. Ivory‘s purity and floating capability are first advertised
1890 — 1945
By 1890, P&G was selling more than 30 different types of soap, including Ivory.
Fueled by full-color print ads in national magazines, consumer demand for P&G
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soaps continued to grow. To meet this increasing demand, the Company expanded
its operations outside Cincinnati, with a plant in Kansas City, Kansas, followed by a
plant in Ontario, Canada. As each new plant opened, P&G would embark on plans
for another. The research labs were as busy as the plants. Innovative new products
rolled out one after another – Ivory Flakes, a soap in flake form for washing clothes
and dishes; Chipso, the first soap designed for washing machines; Dreft, the first
synthetic house-hold detergent; and Crisco, the first all-vegetable shortening that
changed the way consumers cooked. Each of these new products came from P&G‘s
research. And they were marketed through equally innovative techniques, including
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1890-1896
After running the Company as a partnership for 53 years, the partners incorporate to raise additional
capital for expansion. William Alexander Procter, son of the founder, is named the first president. P&G
sets up an analytical lab at Ivorydale to study and improve the soap-making process. It is one of the
earliest product research labs in America. King Camp Gillette invents the first safety razor. P&G‘s first
color print advertisement – an ad for Ivory – appears in Cosmopolitan magazine picturing this ―Ivory
Lady.
1901-1917
American Safety Razor Company formed in Boston, Massachusetts, later becoming the Gillette Co.
William Cooper Procter becomes the head of the Company following the death of his father, William
Alexander Procter. P&G introduces Crisco, the first all-vegetable shortening. Crisco provides a healthier
alternative to cooking with animal fats and is more economical than butter. The Company builds its first
manufacturing facility outside the United States, in Canada. Employing 75 people, the plant produces
Ivory soap and Crisco. U.S. Government requests Gillette supply razors and blades for the entire U.S.
1923-1930
Crisco sponsors cooking shows on network radio, placing P&G among the medium‘s advertising
innovators. A market research department is created to study consumer preferences and buying habits –
one of the first such organizations in industry. In response to the growing popularity of perfumed beauty
soaps, P&G introduces Camay. William Cooper Procter turns the reins of the Company over to Richard
R. Deupree.
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1931
P&G‘s brand management system begins to take shape in the late 1920s. In 1931, Neil McElroy, the
brands managed by dedicated groups of people. The system provides more specialized marketing
strategies for each brand and PROCTER & GAMBLE‘s brand management system is born.
1933-1939
Dreft, the first synthetic detergent developed for household use, is introduced. The discovery of
detergent technology lays the groundwork for a revolution in cleaning technology. `William Cooper
Procter dies and a monument is erected at Ivorydale in his honor. He is the last member of the founding
families to run the Company. The Company expands its international presenc with the acquisition of the
Philippine Manufacturing Company – the Company‘s first operations in the Far East. P&G celebrates its
100th anniversary. Sales reach $230 million. Just five months after the introduction of television in the
U.S., P&G airs its first TV commercial (for Ivory Soap) during the first televised major league baseball
game.
1943-1946
The Company creates its first division – the Drug Products Division – to sell its growing line of toilet
goods. Tide, ―the washing miracle,‖ is introduced. Tide incorporates a new formula that cleans better
than anything currently on the market. Its superior performance at a reasonable price makes Tide the
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1947 — 1952
P&G‘s detergent technology leads to the development of a wide range of products such as granulated
and liquid detergents, shampoos, toothpastes and household cleaning products that provide growth
opportunities in the 1950s and beyond. Neil H. McElroy assumes leadership of P&G. P&G establishes
1950-1955
The first subsidiary on the South American continent is established in Venezuela. A new research
facility, Miami Valley Laboratories, opens in Cincinnati. MVL is the Company‘s first facility dedicated
solely to upstream research. The Company begins operations in continental Europe by leasing a small
plant in Marseilles, France, from the Fournier-Ferrier Company, a detergent manufacturer. Crest, the first
toothpaste with fluoride clinically proven to fight cavities, is introduced. P&G announces plans to form
individual operating divisions to better manage its growing lines of products. This divisionalization also
1956
The new General Office building opens, signifying P&G‘s continuing commitment to downtown
Cincinnati. P&G announces plans to form individual operating divisions to better manage its growing
lines of products. This divisionalization also creates separate line and staff organizations. The new
General Office building opens, signifying P&G‘s continuing commitment to downtown Cincinnati.
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1957
P&G enters the consumer paper products business with the acquisition of Charmin Paper Mills, a
regional manufacturer of toilet tissue, towels and napkins. Howard J. Morgens takes over Company
leadership when Neil McElroy leaves to serve as the U.S. Secretary of Defense.
1960
Crest sales skyrocket when The American Dental Association recognizes the toothpaste as ―an effective
decay-preventive dentifrice. P&G GmbH opens its first office in Frankfurt, Germany, with 15 employees.
Three years later, Germany‘s first plant in Worms begins production of Fairy cleaning powder and Dash
laundry detergent.
1961
Although Pampers‘ first test market in Peoria, Illinois, is unsuccessful, it leads to an improved Pampers
product at a lower cost that eventually replaces cloth diapers as the preferred way to diaper babies.
1963-1968
P&G enters the coffee business with the acquisition of Folger‘s Coffee. The first paper plant built by P&G
opens in Mehoopany, Pennsylvania. Pringle‘s, with its unique stackable shape and resealable can, is
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1972-1973
Bounce combines softening agents with a nonwoven sheet to soften clothes in the dryer. It quickly
becomes the second largest selling fabric softener after Downy. The Company begins manufacturing
and selling P&G products in Japan through the acquisition of The Nippon Sunhome Company. The new
1974-1981
Ed Harness is elected to head. Didronel is introduced. A treatment for Paget‘s disease, it is one of the
Company‘s first pharmaceutical products the Company. Sales reach $10 billion. John G. Smale
1982-1984
P&G increases its prescription and over-the-counter health care business with the acquisition of Norwich
Always/Whisper, which becomes the leading world brand in its category by 1985. Gillette acquires Oral
B, founded in 1950. Liquid Tide is introduced. This represents the results of global research with
surfactants developed in Japan, fragrance in Europe and packaging from the United States.
1985
The Company significantly expands its over-the-counter and personal health care business worldwide
with the acquisition of Richardson- Vicks, owners of Vicks respiratory care and Oil of Olay product lines.
42
P&G opens the General Offices Tower building, the expansion of PROCTER & GAMBLE‘s world
1986
Ultra Pampers and Luvs Super Baby Pants are introduced – with effective, new technology that makes
diapers thinner. P&G creates the industry‘s first multi-functional customer teams. The Company
develops a new technology that enables consumers to wash and condition their hair using only one
product. Pert Plus/Rejoice shampoo quickly becomes one of the leading worldwide shampoo brands.
1987
P&G celebrates its 150th anniversary. The Company increases its presence in the european personal
care category, with the acquisition of the Blendax line of products, including Blend-a-med and Blendax
toothpastes. P&G announces several major organization changes with the creation of category
management and a product supply system which integrates purchasing, manufacturing, engineering and
distribution.
1988-1989
The Company announces a joint venture to manufacture products in China. This is the Company‘s first
operation in the largest consumer market in the world. Refill packs are introduced in Germany for liquid
products like Lenor fabric softener. Germany‘s retail grocers name Lenor‘s refill pouch the invention of
the year. The Company enters the cosmetics and fragrances category with the acquisition of Noxell and
43
1990
Edwin L. Artzt is named to lead the Company. The Company expands its presence in the male personal
care market with the acquisition of Shulton‘s Old Spice product line. Most of the laundry detergent
brands are reformulated to incorporate P&G‘s compact technology. Introduced in Japan with the Cheer
and Ariel brands, the technology is expanded to 36 brands in 20 different countries during the year.
1991
The acquisitions of Max Factor and Betrix increase the Company‘s worldwide presence in the cosmetics
and fragrances category. P&G opens its first operation in Eastern Europe with the acquisition of Rakona
in Czechoslovakia. New businesses in other Eastern European countries – Hungary, Poland and Russia
1992
P&G receives the World Environment Center Gold Medal for International Corporate Environmental
Achievement. Pantene Pro-V is introduced. Originally a small part of the 1985 Richardson-Vicks
1993
Company sales exceed $30 billion. For the first time in Company history, more than 50% of sales come
from outside the U.S. The Japan Headquarters and Technical Center opens on Rokko Island in Kobe
City, Japan. The complex consolidates headquarters and product development operations.
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1994-1995
P&G enters the European tissue and towel market with the acquisition of the German- based company,
VP Schickedanz. John E. Pepper becomes P&G‘s ninth Chairman and Chief Executive, and Durk I.
1996
The U.S. Food and Drug Administration grants approval of Olestra for use in salty snacks and crackers.
Olestra, marketed under the brand name Olean, is a calorie-free fat replacer that provides the full taste
of fat without the added fat calories. The Company continues to expand its global reach with acquisitions
of the U.S. baby wipes brand Baby Fresh – complementing the Company‘s global diaper business and
1996-1998
Gillette acquires Duracell, originally founded in the early 1920s. The Company expands its feminine
protection expertise into a new global market with the acquisition of Tambrands. Tampax Tampon is the
market leader worldwide. P&G announces Organization 2005, a new global organizational design to
drive innovative ideas to world markets faster. Mach 3 razor is introduced. P&G provides a foundation for
future growth by investing in new breakthrough products. Febreze, Dryel and Swiffer are introduced and
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1999-2002
Durk Jager becomes Chairman of the Board and Chief Executive. A.G. Lafley becomes President and
Chief Executive. Reflect.com, P&G‘s initial Internet brand, is launched. It is the first to offer truly
customized beauty care products online.Crest WhiteStrips launches in the U.S. P&G acquires the Clairol
business from Bristol-Myers Squibb Co. Clairol is a world leader in hair color and hair care products.
A.G. Lafley is elected Chairman of the Board. Bruce Byrnes and R. Kerry Clark are elected Vice-
2003-2004
FDA approves switching Prilosec, a treatment for frequent heartburn, from a prescription to an over-
thecounter (OTC) product. P&G‗s Children's Safe Drinking Water Program wins the World Business
Award from the United Nations Development Program & International Chamber of Commerce in support
of the UN’s Millenium Development goals. Actonel becomes a billion dollar brand, and P&G's first
2005
P&G and Gillette merge into one company and add five more billion dollar brands to our product
portfolio, including Gillette and Braun’s shaving and grooming products, the Oral-B dental care line and
Duracell batteries.
46
Marketing Strategy
Handling 10 product categories with more than 60 brands, PROCTER & GAMBLE
Like any other FMCG company, PROCTER & GAMBLE uses a mix of demographic,
Product based and value-based positioning is used by P & G to create the right set
47
Competitive advantage in the Marketing strategy of P & G
Strong product line: PROCTER & GAMBLE have a strong presence with a large
grooming products, fabric care & home care, Beauty products and baby & family
care products.
Market Presence: P & G as of now sells its products in more than 180 countries
through it fully owned business units or joint ventures. With such as large presence,
company’s distribution network has been successful in making its products available
Being present in 5 lines of businesses with large SKU’s (stock keeping unit) is
It’s grooming products, fabric & home care and beauty products star in the BCG
matrix while the other two i.e. health care and baby & family business segments are
Handling end to end distribution channel through its own resources or through the
third party has helped the company to make its products available in the market. P &
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align its inventory management system with those of channel partners. It makes its
sites etc.
has been successful in creating high awareness among the customers worldwide.
Engaging with customers on the first moment of truth i.e. when customers look for a
product and the second moment of truth i.e. when the customer uses the product
has helped the company in co-creating the products as per the market.
P & G is facing competition across the globe from the companies with similar
offerings and various private label players affect its businesses. The main factors on
which companies in this industry compete are quality, distribution network reach,
Companies working in FMCG industry are facing tough competition from local,
national and international players. This industry in itself faces several risks like
government regulations, natural calamities, supply & demand side risk and risk
associated with the stakeholders of the business which can affect the way company
is functioning.
49
• Customer analysis in the Marketing strategy of P & G
Customers of P & G is Pop & Moms store, drug store, departmental stores,
collaboratively with their customers to enhance and enrich their customer experience
50
CHAPTER III
51
Data analysis and interpretation
The data interpretation which I have made after visiting the various
outlets and customers are as follow
Sales
52
2. Product Rating Tabulation
Rating of Product
70
60
50
40
Rating of Product
30
20
10
0
Poor Good Very good Excellent
53
3. Buying decision Factor Percentage tabulation
Factors Percentage%
Price 40
Referral 20
Quality 30
Availability 10
40
20
54
4. Tabulation of consumer income level in percentage.
40
35
30
25
20
15 Consumer income level
10
5
0
Lower income Middle income Middle income Higher income
group group group+ group
55
5. Methods of Promotion
Promotion medium
70
60
50
40
30 Promotion medium
20
10
0
Newspaper Flyer/Coupon Passing by Television
56
6. Frequency of product purchase tabulation
Frequency of Purchase
80
70
60
50
40
Frequency of Purchase
30
20
10
0
Daily Once a week Twice a week Never
57
7. Percentage tabulation of customer loyalty
Customer loyalty
40
30
20
Customer loyality
10
0
Less than One to Three to Five to Ten Ten years
one year three year five year Year and more
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CHAPTER IV
59
CONCLUSIONS
• There is a cut throat competition between HUL and Procter & Gamble.
• All the retailers appraised that there must be regular supply of the
company’s products.
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RECOMMENDATIONS
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.
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
2. Most of the retailers are complaining about the problem regarding the amount of
Price strategy:
1. P&G provides less schemes to the retailer but other company provides a large no.
of schemes.
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2. Profit margins of P&G to the retailer are less than the other companies. So, it
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
Promotional strategy:
1. The company should promote their products through the different media like
2. There should be more schemes for retailers after completing their sales target at a
given period.
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3. In Ranchi, the company can improve its market share by regular performance of
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
63
BIBLIOGRAPHY
www.titanwold.com
www.tata.com/titan
www.google.com
www.indianfoline.com
www.economictimes.com
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ANNEXURE
QUESTIONNAIRE
1. Name of outlet:
2. Address:
4. Type of outlet:
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7. What are the factors in the order of importance to you when making a
buying decision?
12. Which type of customers prefers head & shoulder & Pantene?
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(C) Middle income group+ (D)Higher income group
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17. How frequently do you purchase our product?
18. How would you rate your level of satisfaction with Procter & gamble?
(A) 1 (B) 2
(C) 3 (D) 4
19. How likely are you to recommend Procter & Gamble to a friend or relative?
20. Are you likely to repurchase products and services from Procter &
gamble?
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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
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