Acknowledgement

I have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals. I would
like to extend my Fellows thanks to all of them.

I am highly indebted to Mr Adil hashmi for his guidance and constant

supervision as well as for providing necessary information regarding the
project & also for his support in completing the project.
I would like to express my gratitude towards my parents for their kind
co-operation and encouragement which helped me in completion of this
project.
 Table of contents
 Introduction and History of Procter & Gamble
 Market Segmentation
 Marketing Mix
 Product Strategy
 Pricing Strategy
 Place Strategy
 Promotion Strategy
 Price
 Positioning:
 Channels of distribution
 Distribution network of FMCG
 Promotional Strategy
 SWOT Analysis

 PASTEL Analysis
 Competitors of P&G in India
 Promotion of Integrated Marketing Communications
Founders
 William pocter
 James gamble
 Introduction and History
 There were two people one was from England his name was William
Procter who was a candle maker and the other one was from Ireland his
name was James Gamble who was a soap maker. Their wives were sisters
Olivia and Elizabeth Norris, who found the company initially in Cincinnati.

 On 31 Oct 1837, when their father in law convinced the two men to join
this business then company was named as Procter and Gamble.

 In 1859, the sales of the company reached $1million till that only eighty
people were working for the company.

 During the Civil War in America, the company got a contract to supply
soaps and candles to the military and the military introduced this company
to the people who used those products.

 In 1880’s the company started to market a new product that was an

inexpensive soap that float on water, the company called the soap as Ivory.

 William Arnett Procter, William Procter's grandson, began a profit-sharing

program for the company's workforce in 1887. He offered them a stake in a
company assuming that by doing this the workers will not go on protests or
strikes against the company.

 When the demand of products was grown so high then the company
started to build its factories in USA.

 Seeing the reputation of the company they diversified their business by

introducing Crisco, a shortening made of vegetable oils rather than animal
fats.
 In 1920’s and 1930’s when radio was becoming more famous the company
sponsored two or more radio programs which were later known as “Soap
Operas”.

 The company started their business in other countries also by planting

factories there and making product sales as well.

 Procter & Gamble maintained a strong link with North East of England.

 More and more products were coming to the market as the company was
extending their business.

 The company introduced Tide detergent in 1946, Prell Shampoo in 1950

and the first toothpaste containing fluoride named as Crest in 1955.

 In 1957, the company acquired Charmin Paper Mills and started to produce
toilet papers and other paper products.

 The company introduced fabric smoothers ; Downy in 1960 and Bounce

in1972.

 One of the revolutionary products of the company, there was Pampers

which was first test-marketed in 1961 and made a good business.

 To maximize profits, this company acquired more companies which include

Folgers Coffee, Norwich Eaton Pharmaceuticals, Richardson-Vicks, Noxell,
Shulton'sOld Spice, Max Factor, and the Iams Company, among others.

 In 1996, Procter & Gamble again made headlines when the Food and Drug
Administration approved a new product developed by the company,
Olestra.Also known by its brand name Olean, Olestra is a substitute for fat
in cooking potato chips and other snacks that during its development stages
is known to have caused anal leakage and gastro-intestinal difficulties in
 humans.

 In 2005, the company made first position pushing Unilever to Second

number by acquiring another company named Gillette which had brands
already like Duracell, Oral-B and etc.

 The acquisition was approved by European Union and Federal Trade

Commission on some conditions.

Logo History And Slogon

Their current logo which they have changed in 2015

Vision
Be and be recognized as the best consumer products and services
company in the world
Our Promise Be, and be recognized as, the best consumer products and
services company in the world. Two billion times a day, P&G brands
touch the lives of people around the world. P&G people work to make
sure those brands live up to their promise to make everyday life just a
little bit better.

Misson statement
We will provide branded products and services of superior quality and value that
improve the lives of the world's consumer, now and for generations to come , as a
result consumer will reward us with a leadership sales, profit and value creation,
allowing our people, our shareholders and the communities in which we live and
work prosper.

Market Segmentation:
Market segmentation is a process of breakdown of large markets into smaller
subsets of costumers or consumers having same or common need. This is usually
done to design customer driven market strategies which will give them higher
favor and to fulfill the requirement of customer and to achieve the loyalty in return.

By segmenting, companies design different differentiation strategies to target

different segments.

As of July 1, 2011, the company structure is categorized into two "Global Business
Units” where each one is further divided into “Business Segments”

Procter and Gamble Segments as under:

Beauty Segment
Beauty segment products which are mostly used in Pakistan are

 Pantine
 Head and shoulders
 Olay Beauty cream
 Dove Beauty soap

Grooming Segment
 Gillette
 Tend skin etc
Health Care Segment
 Chif (Cleaner)
 Dettol
  Vaseline

Baby Care & Family Home Care segment

  Baby care oil
 Tears free shampoo
 Lotion

The companies which produce more products in more categories are giving more
benefits to their customers and their target segment. So they cannot produce a
single product which can fulfill all the segments at once. P&G’s main competitors
such as Unilever, Colgate-Palmolive and Johnson & Johnson follow a similar multi-
brand strategy.

Target Market
 A target market is that segment of market that contains a common group of
customers to which a company can cater or chooses to give them the benefits
that they need. A well defined target market is the first element of market
strategy.

Target Market of P&G is:

 The company targets middle upper class level of people.
 Especially women and children are targeted
 The company uses 10% of its cost to retain the customers.

Marketing Mix:
This is a business tool used by the marketing professionals to set up a new product
in its market. To address the different nature of services it has four basic
components which are Price, Place, Promotion and Product. Recently, the concept
of four C’s is given but according to our syllabus we will discuss about four P’s

The Four P’s Of P&G are:

Product:

 Product classification
 Product differentiation- form, features, performance, reliability.
 Better technology
 Attractive Packaging of the product
 Interesting taglines
 As a Brand
 Quality at its best

Price

 Feature pricing; that is optional

 Product line pricing
  Cost plus pricing
 Competitive pricing
 Distributive pricing

Place

 Store placement
 Rural penetration
 Strong and penetrated market channels
 Strategic location for warehouses
 Increased wholesale dealers to increase sale

Promotion

 Media
 Newspapers
 Radio
 Billboards
 Consumer promotion
 Internet
 P & G is spending 30-35 % of its sales in Advertisement and Promotion
which is highest in the industry

 Promotional Strategy

“Thank You, Mom” Campaign

 P&G's corporate campaign kicked off in April with its first ``Thank You,
Mom'' TV spot.
 It also has a dedicated ``Thank, You Mom'' Face book page and app that
allows people to send ``Thank you'' messages to their mothers.
 P&G is sponsoring more than 150 global athletes.
 P&G is sponsoring a few athletes like boxer Mary Kom and runner Kavita
Raut, giving their mothers a chance to see them perform and hopefully win
at London this year.
 P&G expects the campaign to drive $500 million in sales.
 Differentiation
The product differentiation of P&G help it to form a high market segment which
makes its products to be able to satisfy the different needs of the consumers.

Each product has its own target market so the market will not reduplicate.

Can be based on:

 Products
 Services
  Channels
 People
 Image

How P&G differentiates?

 Multi Brand Strategies
 Strong research and development strength
 Brand Manager System
 Brand Stretching
 Knowledge Marketing
 Consumer oriented.

SWOT Analysis:
Strengths:
i. Product Innovation
ii. Offers multiple products
iii. Has strong brand name
iv. Has Built strong customer loyalty
v. Diversified Business structure.

Weaknesses:
i. Views product performance only
ii. Excessive promotions to keep higher sales.
iii. Customer concentration.

Opportunities:
i. Eco friendly products
ii. Emerging new markets to supply
iii. Selling directly to consumers
iv. Better product experience.

Threats:
i. Substitute cheaper products
ii. Expanding competitors
iii. Increasing cost of raw material
iv. US banned products; Vicks

PASTEL Analysis
Political/Legal statement
With the U.S economy currently expiriencing a recession other countries may not
be far behind. Japan, Britain, Spain, Singapore which together represent about 12
percent of the world’s economy are equally vulnerable as fallout from the U.S
worsens their economic weaknesses. Even emerging markets including China are
likely to suffer from exports to the U.S diminish.
The developing slump has put pressure in the Japan, U.S and the euro region to
follow the lead of federal reserve chairman Ben S. Benmake who in the 1 st quarter
of 2009 accelerated interest rate cuts in the U.S with an emergency move to lower
the bench mark by 3 quarters of percentage point
The effect of the U.S recession which according to the IMF represents about 21
percent of the total economy is spreading via multiple channels. There is less
spending by american consumer and companies are reducing demand for imported
goods. The meltdown of the U.S.subprime mortgage market has pushed up credit
cost worldwide and forced European and Asian banks to write down billions of
dollars in holdings. Tumbling U.S.stocks prices are also dragging down market
elsewhere.

ECONOMICS SEGMENT :-
The United States, the country with world’s largest economy, is currently in an
economic ressession. Since the recession began in December,2007. The real
Gross Demostic Product (GDP), the total value of goods and produce in a year and
a basic reason of an economy’s performance, dropped in at an annual rate of more
than 6% in the fourth quarter of 2008 . Federal Reserve Chairman Ben Bemanke
said condition in the labour market and declines in the value of housing along with
tight consumer credit conditions will continue to hold consumers back spending
more until the experience a losening of conditions that impact them directly .
Demanke said economy activity abroad is also an important consideration in how
soon the U.S. economy rebounce. He states “ the steep drop in U.S. exports that
began last fall has been a significant drag on domestic production and any
improvement on that front would be helpful”.

Socio –cultural segment

Women from the major target groups for house hold, personal products and
consumer goods companies. Several P&G consumer products, such as skin care
and beauty care , are adressed directly to women. Other products such as food and
beverages, home cleaning and detergents are adressed to women as the primary
decision makers or influencers.In addition to the media choice companies have
decided on the types of programme they sponsor. So as to attract the target of their
audience.
Technological segment
Organizations are rapidly trying to incorporate the Internet into their supply chain
practices. Global competitive pressure
And heightened share holder expectations have accelerated the rate of Internet
adoption. Electronic markets are websites where buyers and sellers converge to
advertise, bid for products in auction, post catalogue information procure inventory
and manage inventory procurement of industry specific products such as paper,
metal, chemicals, agriculture and industries. These market act as hubs where
buyers can procure direct goods and suppliers can market their products.
Micro and Macro Environment