This document provides a strategic report on Procter & Gamble (P&G). It discusses P&G's overview as a Fortune 500 company with $82.6 billion in sales in 2011. It then analyzes P&G's strengths, weaknesses, opportunities, and threats through a SWOT analysis. The report also examines P&G's product differentiation, distribution strategy of intensive distribution through multiple channels, promotion strategy of heavy advertising, and pricing strategies of optional features and competitive pricing.
3. Overview
Procter & Gamble (P&G) is a Fortune 500 American
multinational corporation headquartered in downtown
,Cincinnati, Ohio.
And manufactures a wide range of consumer goods.
In 2011, P&G recorded $82.6 billion dollars[4 lakh crores] in sales.
Fortune magazine ranked P&G at fifth place of the
"World's Most Admired Companies" list, which was up from sixth
place in 2010.
P&G is credited with many business innovations including brand
management and "Connect & Develop" innovation.
According to the Nielsen Company, in 2007 P&G spent more on
U.S. advertising than any other company.
4. Product Line:-A group of closely-related product items.
Range of the products
Shampoo Blade Feminine Vicks inch
Detergent
Care powder
Panteen
PRO-V Gillette blade Stayfree Vicks vaporub
Tide
Head &
Shoulders Whisper Ariel
Rejoice
5. The Procter & Gamble
company Hygiene and Health Care Ltd.
• P&G
• P&G Home Products Ltd.
• Gillette India.
6. SWOT Analysis:
Strengths, Weaknesses, Opportunities, Threats
Location of Types of Factors
Factor
Favorable Unfavorable
Internal Strengths: Weakness:
Diversified brand portfolio Online media & Leadership
Research and Development Dependency
Global Operation Missing Opportunity
Strong Distribution Network Weakness in beauty care
division
External Opportunity: Threats:
Diversification Competition
Capitalizing on online media No new product innovation
Growth in Indian FMCG market Government regulation
Environment concern
7. Product Differentation
WHAT MAKES “P&G” DIFFERENT FROM
OTHERS?
BRAND LOYALITY
DISTRIBUTION CHANNEL
INNOVATION
PRICING STRATEGY
QUALITY OF THE PRODUCT
9. DIFFERENT BRANDS OF “P&G AND ITC”
P&G – SHAMPOO ITC – SHAMPOO
PANTENE , HEAD & FIAMA DI
SHOULDERS etc
WILL, SUPERIA etc.
HEAD &
SHOULDERS as FIAMA DI WILL as
example example
Easily available Not easily available
Wide range of Has less pricing
pricing range.
10. DISTRIBUTION STRATEGY
Distribution :-
“Marketing channels are sets of
interdependent organizations involved
in the process of making a product or
service available for use or
consumption”
Philip Kotler
11. Distribution :
The distribution is of three
types, which are being followed :
Intensive distribution
Extensive distribution
Specialty distribution
12. Basic Channels of Distribution
Manufacturers/products
Agents
Wholesalers/distributors
Retailers Retailers
Consumers and organizational end users
13. Distribution criteria:
Ordering Speed:- It is the time taken after
the manufacturing of product and the time
till it reaches the consumer.
Delivery Flexibility:- How easy to distribute
the product.
Personal Selection And Customization:-
Which distribution channel to select
14. Typical Distribution of P&G
Products
Manufacturers (PGHH Ltd.India)
Marketing Agents - State wise
Retailers/Wholesalers/Distributors
Chemists Shops, Provision Stores ,
Retail Outlets, Big Markets etc
14
15. Intensive distribution:
PGHH Ltd, is following this strategy in india.
As the company manufactures the FMCG
convenience/ necessity goods.
As these serve the necessity goods hence
there is lesser/no brand loyalty from the
customers side, so the distribution network
of the company needs to be very strong
and proactive.
16. Promotion strategy
P&G insists on a pull strategy
Heavy advertising and media pioneer
Advertising creativity
P&G – A click mortar company
Coupon
17. Pricing strategies
Understand how companies find a set
of prices that maximizes the profits
from the total product mix.
Learn how companies adjust their
prices to take into account different
types of customers and situations.
Know the key issues related to
initiating and responding to price
changes.
18. Different pricing strategies
adopted by p&g
Optional-features strategy
Product-line pricing
Cost-plus pricing
Competitive pricing
Distribution pricing
19. CONCLUSION
As we know this market is known as FMCG market so there
are many competitor in this time in the market so P&G
company were focused in this time and target the middle class
segment for increasing the sales as well as market shares .
Some products like Gillette is made by the company to target
the higher segment of the market.
In India HUL is biggest competitor in FMCG market.