Professional Documents
Culture Documents
Introduction
1
1.1 Meaning of Marketing Strategies
what they value (money) if they feel their needs are being fully satisfied,
2
changing benefits to the changing needs and demand of the customers”.
Meaning of Strategy:
Therefore, the word strategy means the art of the military general. In
Many business firms may be said to have a strategy even before there is
3
major policies and the means to be employed to achieve and the means
Strategic Marketing:
4
of an internally integrated but externally focused set of choices about
where the organization plans to be active; how it will get there; how it
will succeed in the marketplace; what the speed and sequence of moves
will be; and how the organization will obtain profits2. The organization
must identify the problem that its customers use its products and
The Procter & Gamble Company (P&G) has a wide product range
operated soap and candle company in Cincinnati, Ohio. USA . From that
modest beginning, P&G has grown into a large company with on-the-
5
to nearly five billion consumers in over 140 countries. These brands
Pampers, Oil of Olay, lams and Vicks. Its well known beauty care
Old Spice, Pantene, Vidal Sassoon, Head & Shoulders, Cover Girl and
products.
Indian Operations:
listed company Procter & Gamble Hygiene & Healthcare (PGHH) and a
100% subsidiary Procter & Gamble Home Products (PGHP). The main
subsidiary PGHP. The company also markets toilet soap Camay, Skin
care brand Clearasil and men's toiletry brand Old Spice. The detergent
brand Ariel, shampoo brands Pantene and Head & Shoulders and baby
As per the global restructure plan of the parent, the Indian operations
6
will be the key sourcing base for the entire Asian requirement of P&G's
listed subsidiary, Vicks and Whisper have been identified as the core
History:
formed the company known as Procter & Gamble in 1837. The two
earlier in Cincinnati and had married sisters. The two men decided to
During the Civil War, the company won contracts to supply the Union
from all over the country to Procter & Gamble's products. Once the war
was over and the men returned home, they continued to purchase the
7
company's products.
inexpensive, yet high quality, soap. The company called the soap Ivory.
In the decades that followed, Procter & Gamble continued to grow and
Over time, the company began to focus most of its attention on soap,
became more and more common, there was less need for the candles
that Procter & Gamble had made since its inception. Ultimately, the
States, because the demand for products had outgrown the capacity of
made of vegetable oils rather than animal fats. In the early 1900s,
Procter & Gamble also became known for its research laboratories,
8
where scientists worked to create new products. Company leadership
needs and product appeal. As radio became more popular in the 1920s
over time, and Procter & Gamble began branching out into new areas.
shampoo in 1950. In 1955, Procter & Gamble began selling the first
again in 1957, the company purchased Charmin Paper Mills and began
softener in 1960 and "Bounce" fabric softener sheets. One of the most
diapers were not popular, although Johnson & Johnson had developed a
product called "Chux". Babies always wore cloth diapers, which were
9
leaky and labor intensive to wash. Pampers simplified the diapering
process.
Over the second half of the twentieth century, Procter & Gamble
Shulton's Old Spice, Max Factor, and the lams Company, among others.
In 1996, Procter & Gamble made headlines when the Food and Drug
Olestra. Olestra, also known by its brand name Olean, is a substitute for
fat in cooking potato chips and other snacks. Procter & Gamble has
Goods (FMCG) company. HUL's brands like Lifebuoy, Lux, Surf Excel,
10
Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-
household names across the country and span a host of categories, such
factories across India and the associated operations involve over 2,000
retail outlets reaching the entire urban population, and about 250 million
rural consumers. HUL is also one of India's largest exporters. It has been
India. Presently, HUL has over 16,000 employees including over 1,200
In the late 19th and early 20th century Unilever used to export its
famous brands like Pears, Lux and Vim soon after. In 1931, Unilever set
11
November 1956 and the new entity that came into existence after merger
was called as Hindustan Lever Limited. HUL offered 10% of its equity
to the Indian public, and it was the first among the foreign subsidiaries
Red Label tea in the country. In 1912, Brooke Bond & Co. India
1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India)
12
acquired the Kissan business from the UB Group and the Dollops Ice-
cream business from Cadbury India. In one of the most talked about
July 1993, Brooke Bond India and Lipton India merged to form Brooke
Bond Lipton India Limited (BBLIL). Brooke Bond Lipton India Limited
launched Wall's range of Frozen Desserts in 1994 and by the end of the
year, HUL entered into a strategic alliance with the Kwality Icecream
Group families. BBLIL merged with HUL, with effect from January 1,
1996. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited
Detergents and Personal Products both for the domestic market and
maintaining the heritage of the Company and the future benefits and
13
Chapter – 2
Marketing
Strategies of P&G
& HUL
14
2.1 Pricing Strategies
quoted. Aerial was targeted at the upper segment. It was't for the
masses. With the launch of Tide, the company's aim was to target the
marketing a products, also gets reflected in the price. P&G relies a lot on
15
products.
P&G most of the time decides it's pricing structure based on what
Value Pricing:
It says that the price should represent a high value offer to consumers.
deliver better value at every point in the supply chain. Value pricing is
conscious customer.
16
P&G uses EDLP, where it lowers the list price of over 60% of it's
trade. The price cuts leave the overall cost of the product to retailer
about the same as it would have been with the various trade allowance
discounts.
P&G argues that EDLP eliminates the problems such as deal buying,
leads to regular low prices at the retail level, and helps build brand
Yet the EDLP strategy has caused great controversy in the trade, which
P&G products off the shelf, others cut their ads and display of the
disadvantage.
Despite the criticism. P&G says EDLP is paying off and volume has
grown faster in it's brands that have switched to the pricing strategy.
U.K. and Italy. P&G continues to make changes in the way sales
17
cutting back on many type of promotions including bonus packs,
premiums, coupons, and cent off packs. P&G has long been a bellwether
for the packaged goods industry and its changes with regard to the use
Target Costing:
Pricing that starts with an ideal selling price, then targets costs that will
ensure that the price is met. Target costing reverses the usual process of
first designing a new product, determining its cost and then deciding on
the price.
P&G used target costing to price and develop its highly successful Crest
P&G usually prices its good at a premium. But with Crest Spinbrush,
P&G reversed its usual thinking, it started with an attractive low market
Tared costing pricing has made Crest spin brush, one of P&G most
successful new products ever. It has now become U.S.A 's best selling
toothbrush.
18
Competition based pricing:
Setting prices based on the prices that competitors charge for similar
products. .P&G usually pay less attention to its own cost or to demand.
The firm might charge the same as, more than, or less than its major
rival-the HUL.
Customer Knowledge:
P&G studies its customer -both final consumers and the trade-through
It takes the time to analyze each opportunity carefully and prepare the
best, then commits itself fore the long run to make this product a
19
Product innovation:
Quality strategy:
improves them. When P&G announces "new and improved" it means it.
It produces its brands in several size and forms. This strategy gains more
market needs.
P&G often uses its strong brands names to launch new products. The
20
a strong existing brand names give the mew brand instant recognition
brands of hand soap and six shampoo brands. Each brand meets a
recently, P&G has begun to reduce its vast array of products, sizes,
Product Management:
specific product or brand brand .It first appeared in P&G in 1929. A new
21
company soap, Camay was not doing well, and a young P&G executive
promotion this product .he was successful and the company soon added
is responsible for each brand. The system has been copied by many
furniture.
22
Health, baby, and family care
Household care
Beauty care
Chemicals
Global operations
Brands
Febreze* and Downy. Other well known P&G brands include Ivory
Soap. Oil of Olav. Max Factor. Bold. Paz. Flash. Hugo Boss. Zest.
Fabric Care
Procter & Gamble has two of its world-leading detergents - Tide and
• Ariel Front-O-Mat
23
• Ariel_2 Fragrances
• Tide Detergent
• Tide Bar
Hair Care
Herbal
Essence and Clairol Nice ‘n' Easy®. In India, P&G's beauty care
Shampoo.
Procter & Gamble is committed to making every day in the lives of its
services.
• Pantene Pro V
24
• Rejoice
Baby Care
• Pampers
Why launch another brand in a segment when you already have one,
especially when you have worked very hard over the years at making
These are the questions that most practitioners of marketing have been
asking recently! The new brand in question is Tide, which Procter &
category as being any product over Rs 70 per kg). Stranger still, Tide
and Ariel are seemingly seen by the company as interchangeable and are
25
the US, Tide rules the roost but there is no Ariel. In Europe, Ariel is
what the company offers; Tide has not been launched in any country out
market has been growing at a dismal pace of just over one per cent per
P&G India, the premium detergents market has been growing at three-
to-four per cent in value terms. "And compacts have been growing at
around 13 per cent (in value terms); Ariel, in fact, has registered a 14
per cent growth over the last quarter." He adds that over the last quarter,
the maximum growth in the detergents category has been from Surf
compacts.
A Portfolio of Brands
of brands. While it may be true that in the US, P&G has only Tide, there
are different variants to it. And there are other loads from the P&G
Daz. besides Ariel. But in Saudi Arabia and Egypt, both brands exist
side by side. In Saudi, Tide and Ariel have a 60:40 share of the two
26
brands' total turnover. In Egypt, it's the reverse."
cleaning.
markets where both brands have been launched, says Mr. Jejurikar,
Ariel stands for the best in cleaning. It will keep redefining the standards
advertised sometime back, no pilling. Ariel will always give the best in
In the pricing of the two brands too, P&G has drawn a distinction. While
Ariel comes for Rs 145 per kg. Tide's price is Rs 120. For a half kg,
Ariel comes for Rs 80 and Tide, Rs 68. For 200 gm, Tide is priced at Rs
30 against Ariel's Rs 36. And unlike the US. there are no plans, in the
immediate future, for variants in Tide. "We have launched the regular
27
Tide here," says Jejurikar. "As of now, there are no plans for launching
consider variants."
Then there is the issue of a market share for P&G. In India, says Mr.
some other markets, it enjoys around 40-to-45 per cent share. "In India,"
he admits, "we have a fair way to go." And a portfolio of brands, feels
P&G, may be the answer. For example, what used to be Ariel Super
Gain, priced at Rs 49 per kg. "Even in the US, Gain is offered more as a
value proposition."
product usage and brand loyalty. Their upgrades and yes, even
isn't there a possibility that Ariel users may shift to Tide? "Yes. there is
that possibility," admits Mr. Jejurikar. "But our challenge is, can we
bring more people into the P&G detergents fold? Ariel has to find new
28
plans for both Tide and Ariel. You may even wonder at the high levels
action on Ariel to ensure that its consumers will not want to switch to
another brand."
Tide's advertising has shown the offer of this unnamed product for
maximum whiteness effect. The consumer tries the product and lo and
behold, she gets the promised whiteness. After which the product's
powder that is offered for trial does not provide that super whiteness.
And then along come this woman talking about the super whiteness that
Rin Supreme offers, while the man who had offered the unnamed
29
Individual Marketing
customers
Customization
cosmetic products according to their skin and hair types. Here people
e- marketing
receive training and to research marketing news from around the world.
In the year 2001, P&G was the 2nd largest advertiser after General
30
Motors Corporation.
Promotion:
Pull strategy:
If the strategy is successful, consumers will ask their retailers for the
products, the retailer will ask the wholesaler, and the wholesaler will ask
31
preferences, it is now taking a leading role in building its brand on the
brought together some 400 top executive from internet and consumer
marketing companies.
P&G sales force is named one of the top 25 sales force by sales and
marketing management magazine .its sales force teams has got close ties
Its sales promotion department counsels its brand manager on the most
circumstances. At the same time, P&G tries to minimize the use of sales
is one of the largest major advertiser to move from the standard 15%
32
commission system, in 2000 P&G implemented major change in it's
IMC tools such as direct mail, event marketing, internet, PR, etc.
Advertising creativity:
the ability to generate fresh, unique, and appropriate ideas that can be
For many year4s, P&G was known for its reliance on slice of life
33
products, which is generally based on problem/solution approach, this
Slice of life executions are often critis4ed for being unrealistic and
However, P&G has begun to use humour, animation, and other less
Coupon:
P&G has broadened their use of account specific direct mail couponing,
used by consumers at any retail store. They began using account specific
Here P&G airs television spots, often 60 or 120 seconds long, that
34
programmes , or informercials, for a single products the company used
small, the best benefit is that it helps the company to reach customers all
over the globe. The site is very user friendly. P&G has its own intranet
Procter & Gamble with multiple divisions and many different products,
profit performance.
35
works closely with the outside advertising agency and other marketing
At times each brand has it's own ad agency and may compete against
other brands of the company. Here the example of tide and aerial can be
advertising managers.
promotion schedules.
36
37
Category Management System at Proctor & Gamble
38
there have been merchants, success or failure has hinged on this simple
promote (1) the collection of customer information, and (2) the use of
calling, and by the time the agent answers the phone, produces a screen
on the computer that lists important information about the caller, such as
39
what they have purchased in the past, what they are likely to buy in the
future, and what products the company may have available that would
go well with what the customer has already bought. This "screen pop" is
what their current balance may be; it may draw on information from the
sales department to show what has been purchased recently, and it may
draw on information from the credit department to show the agent what
ways:
40
cannot be resolved, and are a major source of customer
dissatisfaction).
satisfaction).
dissatisfaction).
time customization.
frequencies.
41
and effectiveness).
all sources and types of contact are included, and all users of the
buying habits as they progress through their life cycles, and tailor
product progresses through its life cycle, and tailor the service
42
In industrial markets, the technology can be used to micro-
segment the buying centre and help coordinate the conflicting and
relationship, P&G know that they can't go all alone without the help of
43
operation specialists, market and financial analyst, and others-
decision makers.
inventor, levels.
A good MIS balances the information users would like to have against
what they really need and what is feasible to offer some managers will
ask for whatever information they can get without thinking carefully
44
Marketing managers and other information users
unified system. One channel member, the channel captain owns the
other or franchises them or has so much power that they all cooperate.
The channel captain can be the producer, the wholesaler, or the retailer.
45
duplicated services.
Administered VMS:
through the size and power of one of the parties. Here manufactured of a
dominant brand are able to secure strong trade cooperation and support
price policies.
46
Chapter – 3
Research
Methodology
&
Objective
47
Research Methodology
undertaken by P&G.
3. To compare its product with that of its arch rival Hindustan lever
For the first part of my dissertation i.e. to study the marketing strategies
Data analysis:
shaped according to the need of the study. After going through all the
48
The analysis for comparing the products of the two company is done on
scale and calculations are done accordingly. The findings are computed
3.3 Limitations:
4. The sample size was 200, which again hinders actual results
49
7. The comparisons of products was based totally on the answers
8. The sample size was 200, which again hinders actual results
50
Chapter – 4
Data Analysis
&
Interpretation
51
1. How do you find the price of the following brands?
120
100
80
60
40
20
0
Tide Surf Pantene Clinic
52
2. How is the quality of these brands?
140
120
100
80
60
40
20
0
Tide Surf Pantene Clinic
53
3. How is the packaging the following brands?
120
100
80
60
40
20
0
Tide Surf Pantene Clinic
54
4. How is smell/perfume of the following brand?
120
100
80
60
40
20
0
Tide Surf Pantene Clinic
55
5. How do you find the foaming capacity of the following brands?
100
90
80
70
60
50
40
30
20
10
0
Tide Surf Pantene Clinic
56
6. Do you find the ads of the following brands informative?
100
90
80
70
60
50
40
30
20
10
0
Tide Surf Pantene Clinic
57
7. Do you find the ads of the following brands attractive?
120
100
80
60
40
20
0
Tide Surf Pantene Clinic
58
8. Do you agree that the brand offers a very product line?
140
120
100
80
60
40
20
0
Tide Surf Pantene Clinic
59
9. How is cleaning action of the following brand?
120
100
80
60
40
20
0
Tide Surf Pantene Clinic
60
10. Do the brands given you the best deal for your money?
120
100
80
60
40
20
0
Tide Surf Pantene Clinic
61
11. Do the brands reminds you of its parent company?
100
90
80
70
60
50
40
30
20
10
0
Tide Surf Pantene Clinic
62
Chapter – 5
Finding
Finding
63
Sample size=200
1. Price:
Tide was found cheaper as compared to Surf. The first question which
was asked from the respondents was about the price of the following
brands.
In case of Tide, the maximum response which came was moderate. 108
64
2.Quality:
Quality wise, Tide was found to be good, he category for good has the
highest frequency as 90 people opted for it. Here HUL has an upper
hand when it comes to quality as 128 people felt that Surf was of
excellent quality.
good quality.
3. Packaging:
The packaging of almost all the brands were seen more or less as the
same in front of the respondents. Good got the highest frequency in all
the brands.
found it good, as compared to surf, which got the score of good from 92
respondents.
The scores of Pantene and Clinic was close enough as 90 people found it
65
4. Smell:
smell of the given brands. The highest frequency in this segment for
Tide detergent was very good. The response came from 86 people. In
to be very good.
5. Foaming capacity:
The foaming capacity of all the brands were more or less same.
The foaming capacity in case of tide was found to be normal as this was
For both Pantene and Clinic, normal was the highest frequency with 98
6. Information in ads:
Respondents did not find the ads much informative in case of shampoo.
7. Attractiveness in ads:
8. Product line:
The major difference between Tide and Surf springs over here.105
people disagree that Tide offers a vast product line. In case of surf, 87
agreed that it offers a vide product line. 91 people definitely agree that
Pantene offers a vast product line, as compared to 102 people who agree
in case of Clinic.
9. Cleaning action:
67
The quality of Surf was much better as compared to Tide.
The cleaning action of Tide was found to be effective as this was the
Tide definitely gave the best deal to it's customers. This is because f the
fact that Tide is comparatively cheaper than Surf and is also of good
Surf where only 97 people gave their answer &syes. The definitely yes
voted for yes in case of Pantene. The answer was definitely yes in case
Most of the people don’t know what is the parent company of Tide.
In case of Surf it was no. For no category the number of response was 77
68
people. Pantene also got the answer as definitely no by 91 people, as
compared to Clinic where the answer was 70 who gave no as the answer.
69
Chapter – 6
Conclusion
70
Conclusion
Based on the analysis done, it can be concluded that the price of Tide
54% people, while Clinic was seen as cheap brand by 42% of the
Surfs packaging was also found good by 45% .the packaging of both
Pantene as well as Clinic was found out to be good, as 45% and 47% of
that Tide had a very good smell, as 43% people found it so. The smell of
Surf detergent was found good by 45% of people. Pantene was also
71
found to had a good smell by 53% respondents while Clinic was
respondents found it so. both Pantene as well as Clinic also had good
When it comes to how informative the ads of Tide and Surf are, it was
found that both the brands ads were informative, as 42% and 40% of the
respondents giving their view for it.81 % of the respondents founded the
be informative.
respondents. The ads of Pantene as well Clinic was also found to very
Tide fared very badly when it comes to offer vast product lme.58%
agree that Pantene has vast product lines, while 51 % agree with Clinic.
72
The cleaning action of both Pantene as well Clinic was found to be
Tide definitely gave a best deal for money to 49% respondents, while
43% respondents gave yes as their answer for Surf detergent. The
respondents said definitely yes to both Pantene and Clinic as 33% and
these brands, then the performance was found to be very poor. None of
the brands got a positive response. 46% of respondents said no for Tide,
Pantene as well as Clinic.46% said it for Pantene. while 35% said so for
Clinic.
The main goal of the company is to satisfy it's customers. It is one of the
73
low pricing (EDLP).this has increased it's market share as well as
profits.
with some of it's bulk buyers like Walmart. Advertisement, mainly T.V.
ads has been the company's main promotional strategy. R&D of the
preferences.
Thus the challenge before P&G is to face it's arch rival HUL. It can do
the consumers have a high regard for the company's product. The
74
Appendix
75
Bibliography
2004.
Hill, 2003.
3. www.pg.com
4. www.blonnet.com
5. www.marketingprofs.com
6. Economics Times
76
QUESTIONNAIRE
Dear Respondent
I am conducting a survey about comprising Proctor & Gamble’s product with that of
Hindustan Lever Limited (HUL) for my dissertation work of PGDMM programme under the
supervision of Dr. Jamal Farooqui. The information supported by you will be used for
academic purpose and will be kept confidential.
With thanks
Ghulam Mustafa Alvi
Department of Business Administration, AMU, Aligarh
P & G Products: Tide and Pantene HUL Product: Surf and Clinic
77
4. How is smell/perfume of the following brand?
Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= very bad, 2=Bad, 3 = Normal, 4 = Good, 5 = Very good
10. Do the brands given you the best deal for your money?
Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= Definitely No, 2= No, 3 = Neutral, 4 = Yes, 5 = Definitely Yes
Demographic Information:
1. Age:……………………………………………………………………………………..
2. Profession: ………………………………………………………………………………
3. Salary: …………………………………………………………………………………..
79
THANK
YOU
80
Topic: Comparative study of Proctor & Gamble’s product with that of
Hindustan Lever Limited (HUL)
81