Acknowledgment

We have a great pleasure to present the project report on Distribution channel of Proctor & Gamble Head & Shoulder and its Competitors The study of different distribution channel is enchanting as well as interesting for us to undertake. We completed this project under the guidance of Prof. (Dr.) Dindayal Swain. We would like to express our heartful gratitude and immense thanks to Prof. (Dr.) Dindayal Swain for proper guidance and for providing us opportunity to this project. We would like to thanks all Retailers who help us to complete this project. Last but not least we would like to thanks all distributers for their co-operation.

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Contents
 Research Methodology  Objective  Chapter1 1.1 Introduction 1.2 Product Portfolio 1.3 Head & Shoulder variants 1.4 SKUS & Pricing  Chapter 2 2.1 Distribution Channel 2.2 Promotion 2.3 Margin  Chapter 3 3.1 Competitor Scanning 3.2 Clinic All Clear Variants 3.3 SKUS & Pricing 3.4 Distribution Channel & Margin 3.5 Dabur Vatika Antidandruff Variants 3.6 SKUS & Pricing 3.7 Distribution Channel & Margin  Chapter 4 4.1 Data Analysis 4.2 Issues 4.3 Recommendation  Webiliography

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Research Methodology
For our Project we have taken we have taken different methodology for our research objective. Following are the methods we carried out and are highlighted in this project.  Primary data: Collected primary data from Random Sampling  Process of Data Survey:y To collect our primary data we have face to face interaction with Distributors y Face to face interaction with retailers of areas: Ravi Talkies Radhika Tower Vivekananda Marg Tankapani Road  Secondary Data: y Internet

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Objective Of Project

 To know about SKUS and prices from retailers  To know about the sales promotion  Study the whole distribution channel & logistics  About competitors and their Channels  Margin of Retailer & distributer of P&G and its competitors

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CHAPTER -1

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1.1 INRODUCTION
COMPANY PROFILE

Procter & Gamble Co. (P&G) is an American company founded in 1837 based in Cincinnati, Ohio that manufactures a wide range of consumer goods. As per 2008 it is 8 Th largest in world by market capitalization and 14 th largest company of US by profit. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. Its relation started with India in 1951 P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies that has in its portfolio P&G's Billion dollar brands such as Vicks & Whisper. With a turnover of Rs. 500+ crores, the Company has carved a reputation for delivering high quality, value-added products to meet the needs of consumers. P&G Hygiene and Health Care Limited takes pride in being voted India's Best Employer 2003 in a survey of 200 companies conducted by International HR Consultancy Hewitt Associates in association with Business Today magazine. Earlier, the Company was voted India's 2nd Best Employer in previous editions of the survey in 2001 and 2002. Notably, there are over 200 Indian employees with P&G Subsidiaries abroad.

List of directors Mr. R .A. Shah (Chairman) Mr. S. Khosla (Managing Director) Ms. D. Henretta (Alternate: Mr. Pramod Agarwal) Mr. B. S. Mehta Mr. D. Acharya

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ORGANISATION STRUCTURE

Market Development Organization

Beauty &Grooming

Health & Well-Being

Household Care

Global Business Services

Corporate Functions

CORE STRENGTH

Consumer Understanding

Scale

Innovation

Go to market capabilities

Brand Building

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1.2 PRODUCT PORTFOLIO

Health Care 1) Vicks Vapor rub 2) Vicks Inhaler 3) Vicks Cough drop 4) Vicks Action 500 Famine Care 1) Whisper Maxi Regular 2) Whisper Maxi XL Wings 3) Whisper Ultra with Wings 4) Whisper Ultra XL Wings 5) Whisper Choice Fabric Care 1) Ariel Front-O-Mat 2) Ariel Fragrances 3) Tide Detergent 4) Tide Bar Hair Care 1) Pantene Pro V 2) Head & Shoulders 3) Rejoice

Baby Care
1) Pamper

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1.3 Head & Shoulders

The shampoo market in India was estimated at Rs. 21.41 billion per annum as of February 2008, growing annually at a rate of 14.5 percent.
Anti-dandruff market in India Company P&G HUL Dabur Brand Head & Shoulders Clinic All Clear Vatika Anti dandruff Market share in % 58.20% 35.90% 5.10%

Head & Shoulders is the worlds No. 1 Anti-dandruff shampoo and now has become a part of Indian homes as well. This best-ever anti-dandruff shampoo has an improved formula, which offers the fine combination of anti-dandruff efficacy and hair conditioning. What makes the new Head & Shoulders its best so far is its break-through formula which covers the scalp more effectively to remove even the tiniest flake of dandruff, while the new conditioning property keeps hair looking beautiful. Head & Shoulders now comes in a new pack-design and logo in six variants: Head & Shoulders Smooth & Silky Head & Shoulders Refreshing Menthol Head & Shoulders Clean and Balanced Head & Shoulders Silky Black Head & Shoulders Naturally Clean Head & Shoulders Nourishing Aloe Vera

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1.4 PRICING
Head & Shoulders is available in three different pack sizes (SKUS) 90ML, 200ML, 400ML, 3ML, and 8.4ML

SKUS 90ml Rs.60 Rs.139 Rs.224 Rs.3 Rs.1.50

PRICE

200ml 400ml 8.4 ml 5ml

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CHAPTER -2

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2.1 CHANNEL STUDY

With help of distribution channel we can know whole overview of distribution in the market. Channel study helps us to know about the flow of product in market. In Bhubaneswar Company has its own distribution network and supplies the order on basis of sales man report or order is given by suppliers on phone. The company has its own depot in Cuttack.

RETAILER

COMPANY DEPOT

RETAILER

But in this distribution channel there is a problem that is they collect demand draft first from retailers and after that they provide the product and also there is money limit and quantity limit. Goods should be more than 5 boxes and amount should be Rs. 35000 at lest. So many retailers and not interested in taking product directly from company. Only few big retailers do this. Some retailer has directly picked up their goods from company depot and they are usually made payment through the DD...
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Even some retailers have been collecting their products through their association or say distributer and bulk breaking between them. This type of distribution system has adopted by some retailers in suburb of Bhubaneswar where a significant demand would likely to be there. But companys salesperson is not visiting these places. The distributer collect the products from company depot and their sales person go and collect the demand weekly and then according to the retailer requirement provide product to them. Company depot acts as C& F agent: Pahal, Cuttack Bhubaneswar road Manufacturing Point: Gurgaon, Mandidip

Fast Moving Products: Laundry Care: TIDE Hair Care: Head & Shoulder Famine Care: Whisper

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Channel

MANUFACTURER

COMPANY (C/F)

DEPOT

MAIN SITE/ SHIPMENT POINT

DISTRIBUTER

RETAILER

RETAILER

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Distributor:
OM ASSOCIATES H.O:- Plot no.276, Satyanagar Bhubaneswar-7 Contact no. Office Ph.no. 0674-325522 Mr. Malay Mohanti Ph no.9238694343 Mr. Rout Rai (Sales Executive) Ph.no.9238694343 Mr.Tushar (logistic) Ph.no.9338079455 Mode of transport TRUCK Territories: 20 No. of SKUS Of P&G available: Approx 300+

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2.2 Promotion

1. From Manufacturer to Retailer

Various club membership and incentive according to them y Platinum Club: Sales target of Rs.50,000& above y Gold Club: Sales target of Rs. 30,000-50,000 y Silver Club: Sales target of Rs. 30,000 and Below

2. From Distributer to Retailer In 1 Carton (40 pieces) 3 pieces are free given to retailer by Distributer

2.3 MARGIN:

C&F to Distributor: 2-5% Distributor to Retailer: 10-12% Reorder time: For retailer is 1 week and for some it is 14 days and in every 1 week the sales person of distributor takes the order and supply according to the requirement of retailer and sometime retailer also give order on phone.

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CHAPTER-3

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Competitor Scanning
From the interaction with various Retailers in Bhubaneswar we found that major competitors of P& G Head & Shoulder are 1. Clinic all Clear from HUL 2. Vatika Anti dandruff shampoo from Dabur

3.1 Clinic All Clear:

The Clinic All Clear brand was launched in 1980 in India. It was known as Clinic Special then and its name was later changed to Clinic All Clear in 1996.The brand is also present as Clear in 14 other countries worldwide. To align itself to the international quality standards this year Clinic All Clear has been relaunched this year as Clear. Clear is available in 5 variants: 1. Clear Active Care 2. Clear Ice Cool 3. Clear Hair fall Defense 4. Clear Soft Gloss 5. Clear Radiant

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3.2 Pricing

No. of SKUS: 100 ml, 200ml, 400ml, 8ml

SKUS 100ml 200ml 400 ml 8ml

PRICE Rs.64 Rs.134 Rs.220 Rs.3

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3.3 Distribution Channel Of Clinic All Clear

MANUFACTUR

COMPANY DEPOT

DISTRIBUTER (SATH CHIDANANDA Trader)

RETAILER

RETAILER

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C&F: Company depot Mongely Square, Cuttack Distributer: SATH CHIDANANDA TRADER B-21, Saheed Nagar HR (executive) Mr.Grish Prasad Rath Ph.no-2544359 Mode of Transport Truck Total SKUS: Approx 700 Territories: BMC Margin: C&F to Distributer : 2-3% Distributor to retail-: 8-10%

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3.4 Vatika Antidandruff Shampoo from DABUR Vatika Dandruff Control Shampoo removes dandruff without being violent on hair. Discover non-violence, the new beauty mantra captured in Vatika Dandruff Control Shampoo range. Enriched with the goodness of nature, Vatika gently removes 100% dandruff and prevents recurrence, without causing any damage to hair. So what you get is dandruff-free, beautiful hair. That's the power of nonviolence. Vatika is present in 3 variants: 1. Naturally Clean 2. Lively Black 3. Hair fall defense

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3.5 Pricing No. of SKUS 100ml, 200ml, 5 ml

SKUS 100ml 200ml 5ml

PRICE Rs.65 Rs.125 Rs.1

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3.6 Distribution Channel

MANUFACTURE

HINDUSTAN AGENCY

DISTRIBUER (Bhagwati distributer)

RETAILER

RETAILER

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C/F: Hindustan Agency Mancheswar Distributer: Bhagwati Distributer Khintamani Square No. of Territories: 6 y Unit6 y ID market y Rasulgarh y Janpath y Market Building y Saheed Nagar Margin C/F to distributer: 5% Distributer to retailer: 15%

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CHAPTER- 4

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4.1Data Analysis Comparison in terms of sales

Product
Head & Shoulder Clinic All Clear Vatika Anti dandruff

Retailer 19 3 0

Comparison in terms of sale

3 0

Head & Shoulder Clinic All Clear Vatika Anti dandruff

19

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Variants of Head & Shoulder with retailer

No. of variants 3 4 5 6

No. of retailer 2 2 6 11

No. of variants of Head & Shoulder

7 11 6 6 5 2 4 2 No. of variants 3 2 1 0 1 2 3 4

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Retailer Perception about P&G distribution

Satisfied Dissatisfied

19 3

Retailer Perception about P&G distribution

3

Satisfied Dissatisfied

18

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Variant sells more

Variety Retailer Refreshing Menthol 14 Silky Black 5 smooth & silky 2

variety sells more

2 5

Refreshing Menthol Silky Black smooth & silky

14

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4.2 Issues
.  As per retailer sachet sells more and the reorder time is less they order average 60-70 sachet per order in 6 days  All varieties of Head & Shoulder are not sold in market like Aloe Vera so it is not kept by many retailers and if kept the rotation of stock is slow. Out of 21 retailer only 12 kept Aloe Vera but they complain that the stock rotation is too low  Lack of sales promotion from C& F to distributors and from distributors to retailer and also from retailer to consumers.

4.3 Recommendation
 Company should provide more profit to retailers in sachets than bottles as it sells more in market. They should provide 1 strip free on order of 7 strip or 84 sachet  Company should adopt push strategies for those varieties which sells less in market Like : y Customer Push 1. Rs.10 off on 95ml, 200ml on those varieties which is not in demand 2. Launch combo pack in which they combine fast movable varieties with slow movable varieties like: 3. MENTHOL (90 ml) + ALOE VERA (90ml) = Rs. 150 4. They should stop 400ml Aloe Vera as it hardly in demand.

y Trade Push 1. Margin of retailer on slow moving varieties like Aloe Vera should be increase to 12% so that they push slow moving varieties. 2. Distributor should give initiative to those retailers who clear slow moving varieties in less time.

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Webiliography
 www.pg.com  www.hul.co.in  www.dabur.com

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