P & G Company Background, P & G's Conditions, List of all Brands, P & G SWOT Analysis, Market Analysis, 4Ps Marketing Mix and Suggestions, Main Competitors, STP (Segmentation, Targeting, and Positioning) and Customer Behaviour

1. MARKETING MANAGEMENT
Marketing Programme: Marketing Mix & Consumer
Behavior (STP)
12/31/2014
Souvik Pal

2. 2
Procter and Gamble Marketing Mix &
STP
Step 1
P & G Company Background:
William Procter, a candle maker, and James Gamble, a soap maker, both
born in the United Kingdom of Great Britain and Ireland, emigrated from
England and Ireland respectively. They settled in Cincinnati initially and
met when they married sisters, Olivia and Elizabeth Norris. Alexander
Norris, their father-in-law, called a meeting in which he persuaded his new
sons-in-law to become business partners. On October 31, 1837, as a result of
the suggestion, Procter & Gamble was created.
Procter & Gamble Co., also known as P&G, is an
American multinational consumer goods company headquartered
in downtown Cincinnati, Ohio, United States, founded by William
Procter and James Gamble, both from the United Kingdom. Its products
include pet foods, cleaning agents, and personal care products. Prior to the
sale of Pringles to the Kellogg Company, its product line included foods
and beverages. In 2014, P&G recorded $83.1 billion in sales. On 1 August
2014, P&G announced it was streamlining the company, dropping around
100 brands and concentrating on the remaining 80 brands, which produced

3. 3
95 percent of the company's profits. A.G. Lafley, the company's chairman,
president and CEO said the future P&G would be "a much simpler, much
less complex company of leading brands that's easier to manage and
operate." P&G remains a highly selective employer as less than 1% of all
applicants are hired annually.
P & G’s company conditions are the following:
Type
Traded as
Industry
Founded
Founder(s)
Headquarters
Area served
Revenue
Operating income
Net income
Total assets
Total equity
Number of employees
Key people
Public
NYSE: PG
Dow Jones Industrial
Average component
S & P 500 component
Consumer goods
1837
William Procter and James Gamble
Cincinnati, Ohio, US
Worldwide
US$ 84.17 billion (2013)
US$ 14.48 billion (2013)
US$ 11.31 billion (2013)
US$ 139.26 billion (2013)
US$ 68.06 billion (2013)
121,000 (2013
A.G. Lafley (Chairman, President and
CEO)

4. 4
List of P and G brands:
Brands with net sales of more than US $1 billion annually
 Ariel laundry detergent
 Bounty paper towels, sold in the United States and Canada (sold as
"Plenty" in the United Kingdom)
 Braun, a small-appliances manufacturer specializing in electric razors,
coffeemakers, toasters, and blenders
 Charmin bathroom tissue and moist towelettes
 Crest toothpaste
 Dawn dishwashing detergent
 Downy fabric softener and dryer sheets
 Febreze odor control
 Fusion blade cartridge and razors.
 Gain laundry detergents, liquid fabric softener, dryer sheets and dish
washing liquid
 Gillette razors, shaving soap, shaving cream, body wash, shampoo,
deodorant and anti-perspirant
 Head & Shoulders shampoo
 Lenor fabric softener and dryer sheets
 Olay personal and beauty products
 Oral-B inter-dental products, such as Oral-B Glide
 Pampers & Pampers Kandoo disposable diapers and moist towelettes
 Pantene hair care products
 SK-II beauty products
 Scope mouthwash
 Tide laundry detergents and products
 Vicks cough and cold products
 Wella hair care products
Other current brand details
 Ace stain remover liquid

5. 5
 Always feminine care products
 Art of Shaving men's shaving products
 Aussie haircare (shampoos/conditioners/styling aids)
 Blue Stratos cologne
 Bold laundry detergent
 Bounce fabric-softener sheet for dryers
 Camay, a lightly scented bath soap
 Cascade dishwasher detergent
 Cheer laundry detergent
 Christina Aguilera perfume
 Clairol, a personal products division of Procter & Gamble that makes
hair coloring, hair spray, shampoo, hair conditioner, and styling
products
 CoverGirl cosmetics
 Daz laundry detergent
 Doctor's Dermatologic Formula skincare
 Dolce & Gabbana cologne and perfume
 Dreft laundry detergent
 Dunhill cologne
 Era laundry detergent
 Escada perfume
 Eukanuba dog and cat foods
 Fairy dishwashing liquid, toilet soap, household soap, laundry
detergent and dishwasher detergent
 Fibresure supplements
 Fixodent denture adhesive
 Flash cleaning product
 Frederick fekkai hair care products
 Gleem toothpaste
 Gucci cosmetics
 Herbal Essences haircare products
 High Endurance body washes, deodorants by Old Spice
 Hugo Boss perfume
 Infacare baby wash
 Ivory soap

6. 6
 Joy dishwashing liquid
 Lacoste colognes
 Luvs disposable diapers
 Max Factor cosmetics
 Metamucil bulk fiber supplement
 Mr. Clean household cleaning products
 Natura Pet Products brands, which include Innova, Evo, California
Natural, Karma, Healthwise and Mother Nature
 Nice 'n Easy hair color product
 Nicky Clarke hair products
 Old Spice colognes, deodorants, body washes, body sprays
 Puffs tissues
 Safeguard soaps
 Sebastian Professional hair products
 Secret deodorant, body sprays
 Silvikrin haircare products
 SK-II beauty products
 Swiffer cleaning products
 Tampax feminine care products
 Tip laundry detergent
 Viakal cleaning products
 Wash & Go haircare
 Zirh skin care
Divested brands
 Actonel (pharmaceutical division was spun off into Warner
Chilcott in 2009)
 Aleve, naproxen sodium(NSAID) drug, acquired by Bayer in 1997
 Asacol
 Attends, a 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
 Chloraseptic, throat medicine and lozenges sold to Prestige Brands.

7. 7
 Cinch, an all-purpose glass and surfacecleaner, was sold to Shansby
Group, a San Franciscoinvestment firm, later acquired by Prestige
Brands.
 Clearasil, over-the-counter acne medicine sold to Boots Healthcare.
 Coast, bar-soap brand sold to Dial Corporation in 2000. Dial now
owned by Henkel
 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
 Dryel home dry-cleaning kit sold to The OneCARE Company.
 Duncan Hines packaged cake mixes, sold to Aurora Foods
(now Pinnacle Foods) in 1998
 Duracell batteries and flashlights
 Fit, a 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.
 Frymax shortening (sold to ACH in 2001)
 Hawaiian Punch, now owned by Dr Pepper/7up
 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
 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
 Millstone coffeewas acquired by The J.M. Smucker Company as part
of its Folger's coffee acquisition in Orrville, Ohio in June 2008.
 Monchel, a beauty soap

8. 8
 Noxzema, a 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, and then later became a laundry detergent after Tide
was introduced in 1946.
 Pert Plus, introduced in 1987 as the first "2-in-1" shampoo
incorporating conditioner in one bottle. It was the market leader in
1992 with a 10.1 percent share. Now in a "declining stage", sold to
Innovative Brands, LLC in July 2006. The original Pert was
introduced in 1979, but declined to less than 2% before Pert Plus
turned it into a 2-in-1 product.
 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
 Pur (brand), a 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), a 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, a brand of detergent tablets which was sold from the early
1960s up to circa 1974
 Spic and Span, now owned by The Spic and Span Company, a division
of Prestige Brands
 Star Margarine and Dari Creme, originally from P&G Philippines, was
sold to San Miguel Corporation in 1994.
 Sunny Delight orange drink, spun off in 2004
 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

9. 9
 Vizir, was a detergent, mostly sold in Europe
 Whirl butter flavored oil (sold to ACH in 2001)
 Wondra, a brand of hand lotion discontinued in 1989
 Zest deodorant body bar and body washes, sold to High Ridge Brands
Co. on January 4, 2011
Discontinued brand details
 Agro Laundry Soap
 Banner, Summit, and White Cloud toilet tissues were merged with the
company's best known bathroom tissue, Charmin. White Cloud is now
sold exclusively in Walmartstores in the U.S.
 Big Top, a brand of peanut butter before Jif made its debut.
 Bonus, a brand of laundry detergent that had towels in every box; last
made in 1977.
 Chipso, flaked and granulated soap, last made in the early-mid-1940s.
 Citrus Hill, orange juice drink last made in 1992
 Dash, laundry detergent, last made in 1992 in the US, it's still present
in the European market, and it’s one of Italy's leading brands of
laundry detergents.
 Drene (a.k.a. Special Drene, Royal Drene), liquid shampoo. First
shampoo made from synthetic detergent.
 Duz, a powdered laundry soap and later, a powdered laundry
detergent which had glasswareand plates in each box; last made in
1980.
 Encaprin, coated aspirin
 Fling, a disposable dishcloth brand.
 Fluffo, golden yellow shortening sold mid-1950s to early 1960s.
 Frescobath soap
 Hidden Magic, an aerosol hair spray dubbed "the Titanic of the hair-
spray business", sold in mid-1960s
 High Point instant decaffeinated coffee, which had the late Lauren
Bacall in its commercials; produced to 1986.

10. 10
 Ivory Flakes, P&G's first soap packaged in boxes, sold from 1910 to
1977.
 Monchel beauty soap
 OK, economy bar & packaged laundry soap.
 P&G White Laundry Soap, a white bar soap made during World War I
and World War II that temporarily replaced P&G White Naphtha
Soap when naphtha was used for the war effort.
 P&G White Naphtha Soap, a white naphtha bar soap used for washing
the laundry and dishes.
 Pace & SELF "No-Lotion" home permanents
 Physique hair care line (shampoos, conditioners, styling aids), phased
out c. 2005
 Pin-It, pin curl home permanent, sold mid-1950s.
 Purico
 Puritan oil (the first brand to sell canola oil, later merged into the
Crisco oil brand)
 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, the firstconcentrated tablet laundry detergent, which was
discontinued c. 1974; later a dish detergent (sold in the U.S. 2004-
2005; it is still sold in Latin America)
 Selox, puffed soap sold in 1920s and 1930s.
 Shasta, a cream shampoo sold late 1940s-mid-1950s.
 Solo, a liquid laundry detergent with fabric softener that was later
merged into the Bold brand.
 Star Soap & Star Naphtha Soap Chips
 Stardust dry chlorine bleach (extensively test-marketed during the
1960s)
 Sunshine Margarine
 Teel, a liquid dentifrice sold late 1930s to late 1940s.
 Thrill dishwashing liquid last made in 1973
 Torengos, a stackable, triangular-shaped, corn-based snack chip sold
2001-2003
 Venus Shortening

11. 11
 Wondra lotion for dry skin. There were many formulas. (The first
major brand to use "silicones") Last made in 1989
P & G SWOT Analysis:
P&G is the world's largest consumer goods company that markets more
than 300 brands in over 180 countries. The company is engaged in
producing beauty, health, fabric, home, baby, family and personal care
products. The company's product portfolio also includes pet health products
and snacks. The company's leading market position along with its strong
brand portfolio provides it with a significant competitive advantage.
However, slowdown in global economic condition is making it increasingly
difficult for branded product manufacturers like P&G to maintain their
sales volume and revenue growth.
STRENGTHS
1. Strong focus on research and development
P&G has strong research and development capabilities. P&G’s annual
R&D budget is about $2 billion which supports 8,000 engineers and
scientists at 25 research centers in 12 countries. Additionally, P&G also
involves external innovation partners to boost its internal innovative
capability, an approach it calls ‘Connect and Develop.’ In 2002, only 15%
of its product initiatives included innovation from outside P&G.
Currently, more than half of all P&G innovation includes an external
partner. In just the past year, it’s evaluated more than 5,000 innovation
opportunities from small entrepreneurs, universities, researchinstitutes,

12. 12
and large companies. P&G is ranked amongst one of the top-20 largest
R&D investors among US-based companies, which include Pfizer,
General Electric, Sony, Merck, 3M, DuPont and Hewlett-Packard. The
best proof of its innovation capability is the number of top-selling new
products that come from P&G. The IRI Pacesetters study tracks and
ranks the most successful new consumer products introduced in the US
For the past 13 years, one-third of the most successful Pacesetter
products, on average, have come from P&G and Gillette. Moreover, in
2008, five of the ten best-selling new products came from P&G,
including Tide Simple Pleasures detergent, Febreze Noticeables air
freshener, the new Herbal Essences line of products, Crest Pro-Health
toothpaste, and Olay Definity skin care products. Its research and
development capabilities have enabled P&G to secureabout 27,000
patents globally. Strong focus on researchand development allows P&G
to renew its product line at regular intervals, which boosts customer
loyalty and revenue growth.
2. Leading market position
P&G has leading market positions across most of its businesses. It
competes primarily in 22 global product categories and is a market
leader in over two-thirds of these categories. P&G is the global market
leader in beauty segment with leading market shares of over 20% and
33% in the hair care and feminine care categories respectively, owing to
its brands Always, Head & Shoulders, Olay, Pantene and Wella. The
company also holds a leading position in oral care. In pharmaceuticals
and personal health, P&G has approximately 33% of the global
bisphosphonates market for the treatment of osteoporosis under the
Actonel brand. The company is also a global leader in nonprescription
heartburn medications and in respiratory treatments. Actonel, Crest, and
Oral-B are well known brands in the company's health care segment. The
company is also the market leader in fabric care with global market
share of approximately 33%, with key brands such as Ariel and Tide. In
baby care, the company has a global market share of over 32%,
competing through the strong Pampers brand. The acquisition of

13. 13
Gillette has enabled P&G to hold leading market share in manual blades
and razors segment with a global market share of approximately 70%.
Leading market position provides it with significant competitive
advantage as well as stabilizes the company's financial growth.
3. Diversified product portfolio
P&G has diversified product portfolios. The company participates in
more than 22 global product categories with 300 brands in over 180
markets. The company markets a range of products across six segments:
beauty; grooming; health care; snacks, coffee, and pet care; fabric care
and home care; and baby care, and family care. In the beauty segment,
the company's products include cosmetics, deodorants, feminine care
products, hair care, personal cleansing and skin care products. The
grooming category sells products like blades and razors, electric hair
removal devices, face and shave Products, and home appliances.
Feminine Care, Oral care, pharmaceuticals, and personal health care
products are marketed under the health care segment. The snack, coffee,
and pet care category deals in coffee, pet food, and snack products. The
fabric care and home care category comprises air care, dish care, fabric
care, and surfacecare products. In addition, under baby care family care
category, P&G's offers diapers, baby wipes and bath tissue. The diverse
product portfolio enables the company to protect itself against demand
fluctuations for certain products.
4. Strong brand portfolio
P&G has strong portfolio of brands. P&G’s portfolio includes 24 brands
that generate over 1,000 million in annual sales and 20 brands that
generate between $500 million and $1 billion in annual sales. Combined,
these 44 brands account for 85% or more of its sales and profits. Strong
portfolio of brands enables the company to deliver consistent, reliable
top- and bottom-line growth.

14. 14
WEAKNESSES
1. Increasing instances of product recalls
P&G has been registering increasing instance of product recalls recently.
For instance, in March 2007, P&G Pet Care voluntary recalled in the US

15. 15
and Canada canned and foil pouch wet cat and dog food products
manufactured by Menu Foods Inc. This voluntary recall was a part of a
larger product recall by Menu Foods Inc., a contract manufacturer that
makes a small portion of canned and foil pouch wet cat foods for P&G’s
Iams and Eukanuba brands. Moreover, in September 2006, P&G
suspended sales of the cosmetics in China after they were found by the
authorities to contain the banned substances, chromium and
neodymium. Also, the company recalled its Sweep+Vac by Swiffer
Vacuum Cleaner in 2005, after it received several complaints of
overheating, including one report of a fire with minor property damage.
Recurrentproduct recalls could affect the brand image of the company,
which would lead to low customer loyalty and brand equity.
2. Dependent on Wal-Mart stores for majority of its revenues
P&G is heavily dependent on Wal-Mart Stores, Inc. (Wal-Mart) and its
affiliates for generating major part of its revenue. Sales to Wal-Mart and
its affiliates have represented approximately 15% of its total revenue
since 2006. High dependence upon a Wal-Mart reduces the bargaining
power of the company. Also, Wal-Mart could use its bargaining power to
impose unfavorable terms on the company. Any decrease in revenue
from Wal-Mart could have a negative impact on the company's
businesses. Hence, the loss of this customer will lead to a sharp decline
in P&G's revenues and also a loss of its market share.

16. 16
OPPURTUNITIES
1. Expansion in developing markets
The consumer products business is driven significantly by three basic
demographic factors: population growth, household formation, and
household income growth. These factors are now driving strong growth in
many of the company's developing markets including China and Russia.
The GDPs of these economies are expected to register a decent growth rate
in the future. In China and Russia, P&G is using its portfolio of leading
brands to attract, build and expand a network of distributors. Currently its
distributor network in China reaches about 800 million people. In Russia, it
now has access to 80% of the population. Therefore, with its expanding
distribution network, P&G could harness opportunities in these two
countries to enhance its market share as well as stabilize its top line growth.
2. Future growth plans
P&G is pursuing a clearly drafted growth plan. As per its plans, the
company has reorganized its Asian operations into one headquarters from
three. It is applying this model to other nations as well. Further, it aims to
streamline its worldwide portfolio, by as much as 25% through 2012. And at
the same time, it is building production facilities in 18 developing countries
over the next four years. Currently P&G’s products are used by 3.5 billion
people around the world. This growth plans will increase P&G’s reach to an
additional 1 billion of the world’s 6.5 billion consumers by 2010. Thus
pursuing a clearly drafted growth plans is likely to have a positive impact
on the company’s top line growth.
3. Growth Indian FMCG market
The Indian Fast Moving Consumer Goods (FMCG) industry is likely to
witness strong growth in the future. It is poised to achieve a 16% growth in
sales during 2008-09, compared to 14.5% in 2007-08, according to a survey
by the Federation of Indian Chambers of Commerce and Industry. The
growth would be attributable to the rising income and increasing demand.

17. 17
The survey points that consumer' preferences for FMCGs are shifting
towards higher lifestyle categories like skin care, shampoos, deodorants,
anti-aging solutions, fairness products and men's products in particular. In
India, P&G’s distributor network covers 4.5 million stores, an increase of
two million stores in just five years. Moreover, in India, P&G is present in
merely eight different categories, as opposed to 21 categories in the US.
This provides P&G with an opportunity to enhance its market share as well
as expand its presence in other categories.

18. 18
THREATS
1. Regulatory environment
Several consumer protection groups are voicing concerns over the
presence of harmful chemical ingredients in cosmetic products. A recent
study showed that about one-third of cosmetic products contain
carcinogens. Due to increasing public pressure, the US Food and Drug
Administration (FDA) are expected to impose stringent quality norms on
cosmetic products. New regulations may delay launch of new products
and result in higher product development expenditure. At the European
Union level, the European Commission has published a draft regulation
for the registration, evaluation and authorization of chemicals (REACH),
along with restrictions applicable to the chemical substances, and has set
up a European Chemicals Agency. REACH focuses on the 30,000
chemical substances introduced into the market before 1981 and
manufactured or imported in quantities of more than one ton per year,
on which hazard information has not been sufficiently well examined by
the current system.The European Parliament and the Council of
Ministers expect the regulation to be published in 2007 and to come into
force in the fourth quarter of 2008. These regulations may impose new

19. 19
liabilities or increase operating expenses, either of which could result in
a decline in profitability.
2. Global economic conditions
The global Gross Domestic Product (GDP) is expected to increase
marginally by 0.9% in 2009, according to the World Bank's report 'Global
Economic Prospects 2009'. According to the report, the economic growth
rate in developing countries is expected to decline from 7.9% in 2007 to
4.5% in 2009, while the growth in developed countries is likely to be
negative, in 2009. The current economic climate is forcing shoppers to
watch their expense and look for cheaper options of discounted brands
or own label merchandise. Even suppliers as powerful as P&G are under
pressurefrom retailers like Wal-Mart, who are cutting prices and
introducing their own labels. These retailers, for sustaining their revenue
growths and margins, are promoting their own-labels. The dent in
disposable income of consumers caused by the slowdown in global
economic condition is making it increasingly difficult for branded
product manufacturers like P&G to maintain their sales volume and
revenue growth.
3. Counterfeit goods
Trade of counterfeits and pass-offs products is negatively affecting the
growth of FMCG companies like P&G. Pass-offs are look-alike products
that resemble the original products, mainly through misspelling of the
trademark. For example, Sunslik instead of Sunsilk, Clemic Plus or
Climic Plus or Cosmic Plus instead of Clinic Plus, Collegiate for Colgate,
Vips Rub or Vives Rub as a pass-off for Vicks Vaporub. Whereas
counterfeits are the infringement of trademarks and copyrights,
duplicate/fake products are passed off as products of the company.
According to AC Nielsen, a global marketing researchfirm, 10-30% of
cosmetics, toiletries and packaged food are counterfeits. The top two

20. 20
brands within any category be it cosmetics, detergents, or soaps are
effected the most by counterfeiting and pass-offs. Besides revenue losses,
counterfeits and pass-offs also affect the company’s brand as they are
unsafe. Moreover it could hit the customer confidence as the fake
product does not give the desired results promised by the brand.
SWOT Analysis of P & G at a Glance:

21. 21
STRENGTHS
 The company is valued at
$191.47 billion on the market.
 P & G has 300 brands globally
which are available in over 180
countries.
 It has around 25 brands have
annual sales over a billion
dollars.
 Over 125,000 people are
employed in P & G globally.
 Many of P&G products are
considered non-cyclical.
 Offers multiple products in
each category along with more
than one brand.
 Gross profit margin is 15 times
the industry average.
 Tightly integrated with the
largest retailers in the US and
rest of the world.
 P & G invests annually $2
billion in research and
development.
WEAKNESSES
 P & G are losing their market share
rapidly. In online media leadership
and presence P & G is lagging
behind.
 The beauty and health products by
P & G are mostly for women.
 P & G doesn’t make and offer any
private label products for the retail
consumers.
 Fake products are sold under the
name of P & G brands.
 Its products have stiff competition
from big domestic players and
international brands.
OPPURTUNITIES
 Tap rural markets and increase
penetration in urban areas.
 The exponential growth of the
middle class in emerging
markets such as China and
India.
 An opportunity for P & G is
health and beauty products for
men.
 The online social networks and
internet marketing technique is
also an opportunity for P & G.
THREATS
 There is a cut throat competition in
the fast moving consumer’s good
markets today.
 In the market many substitutes are
available for P & G products at
cheaper prices.
 The private label growth is also a
serious threat to P & G’s market
share.
 Due to recession, the consumer
spending has decreased globally.
 Raw materials are increasing so

22. 22
 Going green/eco friendly. cost to the company is also
increasing.
 The major competitors of P & G
being ITC Limited, Loreal, Marico,
HUL and Dabur.
Step 2
Market Analysis:
 P & G in touch-
1887 P&G institutes a pioneering profit-sharing program that
gives employees an ownership stake in the Company. This
significant innovation helps employees connect their vital
roles with the Company’s success.
1924 P&G becomes the firstcompany to conduct deliberate, data-
based market researchwith consumers. This forward-
thinking approach enables us to improve consumer
understanding, anticipate consumer needs and respond with
products that improve their everyday life.
1941 P&G becomes one of the first companies to formally respond
to consumer correspondenceby establishing the Consumer
Relations department. The addition of toll-free phone
numbers in 1973 and e-mail in the 1980s further enhance
consumers’ ability to contact us and keep the consumer at
the heart of all we do.
1955 Crest is co-developed with Indiana University. This
collaboration delivers a product that is a breakthrough in the
use of fluoride to protect against tooth decay, the second-
most prevalent disease at the time.
2002 P&G develops Naturella feminine pads specifically to meet
the needs of low-income women in Latin America. Based on

23. 23
deep consumer understanding, Naturella responds to
consumers’ desire for freshness with chamomile, a unique
ingredient never before used in feminine care products.
2005 High Frequency Stores common in developing markets
emerge as our largest customer channel. Consisting of
nearly 20 million stores across the world, HFS represents a
particular opportunity in fast-growing, low-income markets.
Through HFS, we connect to consumers with affordable
products and packaging specially designed for their needs.
 P & G in the lead-
1882 Ivory soap represents P&G’s firsteffort at mass-marketing its
products through continuous consumer advertising. This
innovative brand-building effortbegins with a print
advertisement that focuses on Ivory’s purity, forging a
relationship between consumers and the product. This leads a
transformation in the way companies market their products—
an area where P&G continues to lead and innovate today.
1915 The founder’s son, James N. Gamble, helps create the first
coordinated community campaign for charities. That
charitable organization, known today as The United Way, is
the leading community-based fund-raiser in the United States.
1961 P&G answers the age-old need to reduce leaks, mess and
rashes caused by wetness of cloth baby diapers by introducing
Pampers, the first affordable, successful disposable diaper.
Today, more babies around the globe experience the comfort
and dryness of Pampers than any other diaper brand.
1984 P&G is named for the first time among the 100 Best
Companies to Work For by the Great Places to Work Institute.
This is one of many honors the company receives globally
each year for valuing diversity and improving lives in the

24. 24
communities where we operate.
1996 P&G earns the U.S. Government’s National Medal of
Technology. The honor recognizes the Company for creating,
developing and applying advanced technologies to consumer
products that have helped improve the quality of life for
billions of consumers worldwide.
 P & G improving lives every day-
1901 King C Gillette patents the KC Gillette Razor, an alternative to
the straight razor that offers men a safe, convenient and
inexpensive way to shave. This shaving breakthrough features
a permanent handle and disposable double-edge razor blade.
Gillette joined P&G in 2005.
1946 Tide, “the washday miracle,” is introduced. With a new
formula that cleans better than anything then on the market,
Tide makes laundry easier and less time-consuming. Its
popularity with consumers makes Tide the country’s leading
laundry product by 1949.
1952 P&G establishes the Procter & Gamble Fund to coordinate the
distribution of money globally to charitable organizations in
communities where we have a concentration of employees.

25. 25
Today the Fund, through its corporate philanthropy program
Live, Learn and Thrive™, works to improve the lives of more
than 50 million children around the world each year.
1985 P&G acquires Richardson-Vicks, maker of personal health care
products including Pantene, Olay and Vicks respiratory care
product lines. This significantly expands our ability to
improve the everyday lives of more consumers in more
geographies around the world.
2006 To address the global crisis of unsafe drinking water, P&G
creates the Children’s Safe Drinking Water program, which
uses P&G’s unique PUR water purification sachets. This
program reflects the company’s commitment to doing the
right thing for the long term, and is improving life in some of
the poorest countries in the world.
4Ps Marketing Mix (Analysis) and Suggestions on 4Ps:
 PRODUCT

26. 26
P&G manufactures products the following: Beauty and grooming brands,
health and well being brands, household care brands (listed above).
Strategy Tactics Change product
 Change product port folio
 Expand product line to cover a
wider market
 Develop separate products for
different markets
 Acquire new products that
complement existing products
through the acquisition of new
companies
Strategy Tactics Drop, add or modify products
 Drop marginal products
 Launch a modified product
 Develop new products to
supersede old products
Strategy Tactics Change, design, quality or
performance
 Establish a quality image
through the development of
quality products
 Distinguish your product from
your competitor’s products in
the eye of your customers
 Establish a permutation for
innovation
 Create new uses for your
existing products by adding
exclusive features

27. 27
 PRICE
In 1990’s era, P&G incorporated value pricing strategy. The company
adopted this strategy by cutting its coupon, production and logistical cost
by effectively increasing efficiency and it increased its advertising by 20
percent. Within the period of six years this strategy resulted in higher brand
loyalty and stronger brand image. The strategy of P&G was quite opposite
to that of competitors and marketing practices on that time but resulted in
greater success. Now days, P&G has the most effective pricing of its brands
and customer loyalty is as enough that they are willing to pay extra for
company’s brands. P&G gives discount offers on its different products time
to time but not frequently as it experienced in 1990s that coupon and
discount only decrease customer’s brand loyalty (Whereby, 2006).
Strategy Tactics Change price terms or conditions for particular
products
 Product price low and obtain maximum
profit on spare parts
 Use different prices and different price
lists for different markets
 Set price at 10% below market leader
 Reduce price of product to maximize
sales (to allow increased production and
reduce unit production cost)
Strategy Tactics Skimming policy
 Set price of new product at level 30%
about previous products
 Sell on new revolutionary design features
and benefits
 Be prepared to reduce price as volume if
competitors enter into the market

28. 28
Strategy Tactics Penetration policy
 Set low price for new product to
discourage competitors fromentering
market
 Increase turnover to level where product
become profitable at this price level
Strategy Tactics Discount policy
 Offer quantity discount to encourage
large purchases
 Offer discount level for next year

29. 29
 PLACE
P&G products are available almost all over the world. P&G distributes the
products in about 140 countries to approximate five billion consumers.
DHL courier is a service provider to the company through which it ensures
its logistical efficiency. Company has manufacturing and distribution
networks in all major countries where it runs its operations like China,
USA, UK and India.
Strategy Tactics Change channels
 Set own distribution direct to stores
 Change distribution for area
 Increase number of warehouses for
product
Strategy Tactics Improve services
 Set up national servicenetwork

30. 30
 PROMOTION
This era is an era of advertising. Companies have to do huge advertisings to
sell their products to the consumers. P&G has an effective promotions
strategy with an advertising budget of approximately 8.68 billion dollar in
2009 which makes it world’s number one advertiser (Mikkelson, Barbara
and David, 2005). P&G received Advertising Hall of Fame Award in 2010.
The company uses television mass advertising in particular, Internet
marketing and other marketing mediums to promote its brands.
Strategy Tactics Change selling/sale force
organization
 Strengthen sales force
organization
 Reorganize sale forcefor
particular area
 Introduce performancerelated

31. 31
bonus scheme for sale force
 Recruit additional sales
personnel
 Increase sales effortto increase
sale to major customers
 Increase sales efforts for most
profitable products
Strategy Tactics Change advertising/ sale promotion
 Start new advertising
campaign
 Increase company image
advertisement.
 Increase advertising for the
product in specific market
Main Competitors of P & G Company:
The main competitors of the Procter and Gamble Company being-
 Unilever PLC
 Clorox
 Unilever NV
 L’Oreal SA
 Colgate-Palmolive Co.
 Reckitt Benckiser Group PLC

32. 32
 ITC Co.
 Kimberly-Clark Corp.
 Estee Lauder Cos Inc.
 Henkel AG & Co KGaA
 Kao Corp.
 PT Unilever Indonesia Tbk
 Beiersdorf AG
 Unicharm Corp.
Procter & Gamble provides the broadest and biggest portfolio of
products in the household and personal care industry with 24 billion-
dollar brands. P&G generates approximately one and half times the
revenue than its closest competitor, Unilever (UL), and possesses a
higher operating margin (20.30%) than any of its competitors as well.
The company invests about $2 billion a year in R&D, nearly twice that
of Unilever, and equal to the combined total of its other major
competitors — Avon, Clorox Company (CLX), Colgate-Palmolive
Company (CL), Energizer Holdings (ENR), Henkel (HEN-FF), Kimberly-
Clark (KMB), L'Oreal, and Reckitt Benckiser.
Clorox is one of P&G's main competitors; specifically the two companies
compete directly in the household products market, especially in
household cleaning products. Clorox is known for their trademark
Clorox bleach products and other cleaning supplies like Pine-Sol.
Although much of the two companies' product catalogs overlap, there
are significant differences that prevent Clorox from being in complete,
direct competition with P&G. For example, one of the largest sectors of
P&G's business is beauty products, which are not part of Clorox's product
offerings.
Kimberly-Clark competes with P&G in the household products market,
particularly in tissues, paper towels, diapers, and feminine products.

33. 33
Major K-C brands include Huggies diapers, Kotex feminine products,
Scott paper towels and Kleenex tissues. Kimberly Clark sells its products
to both consumers and large businesses.
Colgate-Palmolive produces a product catalog that most overlaps with
P&G's product lineup relative to other competitors. Colgate is best
known for its flagship toothpaste, which had a 44.4% global market
share in 2009, but the company also manufactures toothbrushes, dental
floss, detergents, soap, and pet care products.
L'Oreal competes with P&G in the beauty products market. L'Oreal's two
biggest product categories are skincare and haircare products. Unlike
diversified companies like P&G, L'Oreal is purely a beauty and cosmetics
company with its product catalog centered around skincare, haircare,
make-up, perfume and other beauty products. However, the beauty
industry has much higher margins than certain markets that P&G is
involved in, which leads to high profits for L'Oreal.

34. 34
Step 3
Segmentation, Targeting and Positioning for P & G:
 Ambi Pur
Consumer Market Segmentation – Higher middle class
Target Marketing – Bottled fragranceof freshness with a wide range for
both home and cars
Market Positioning – Radio advertisements, newspaper commercials, and
television ads
 Olay
Consumer Market Segmentation – Upper class of women
Target Marketing – Middle aged socially active Indian women looking for
one product that will help them stay young and beautiful
Market Positioning – It was for real women who want proven results
without incurring the high cost of department store brands and spa
treatments
 Ariel

35. 35
Consumer Market Segmentation – Premium classes as compared to
Wheel, Nirma, and Tide; urban and semi urban areas.
Target Marketing – Ariel has adopted the strategy of market aggregation;
Ariel target market includes middle class, upper middle class and upper
classes of the population; washing machine users and untapped rural
market
Market Positioning – Initial positioning was to switch soap users; premium
brand, superior technology, fragranceoriented detergent, removes tough
stain, contains double action system which gets easily dissolved
 Pantene
Consumer Market Segmentation – Pantene has revitalized their product
line by segmenting their shampoos, conditioners, and styling products;
this allows consumers the opportunity to tailor their selection according to
need while still paying a “drug-store-price”
Target Marketing – Women aged 15 to 35; consumers in their target
market are looking for salon results at a cheaper price; the consumer
saves time and money by purchasing Pantene products instead of going to
a salon
Market Positioning – Affordable alternative to salon brands; Pantene’s
position in the market is by attribute, claiming “Hair is so healthy it
shines”
 Duracell

36. 36
Consumer Market Segmentation – Society is very excited about the new
technology; so consumer usually desire the latest innovative and radical
products
Target Marketing – Dominant users of Duracell are owners of toys, audio
products, cameras, wall clocks, and remote controls
Market Positioning – Duracell enjoys excellent name recognition; no
brand in India have positioned themselves as a “PerformanceLeader”
 Pampers
Consumer Market Segmentation – Upper class society
Target Marketing – Children of age from 4 months to 5 years; regular
buyers of diapers
Market Positioning – Guaranteed dryness and care of baby skin
 Gillette
Consumer Market Segmentation – Gillette has identified two main
segments of the men’s shaving market, systems and disposables
Target Marketing – Consumers who are looking for all round top quality
shaving experiences; targeted to age of 18 plus of male
Market Positioning – It will primarily alter the attributes importance in
the segment by increasing the importance of attributes like brand name,
form formations etcand decreasing the importance of price
 Oral-B

37. 37
Consumer Market Segmentation – Divide on the basis of psychographic
market segment; can choose Oral-B toothbrushes according to their
individual taste with variety of prices; can choose brushes according to
their colour fascination
Target Marketing – Young adults, ages of 18 plus from either just career
or already career routine; they are prime age for interviews and constant
social interactions because of this have and increased desire for fresh
breath
Market Positioning – Positioned as dentist choice of toothbrush; brand
uses tagline “The brand more dentists used themselves worldwide”;
currently in hyperactive mode in India with lot of promotion in visual
media
 Vicks
Consumer Market Segmentation – Vicks VapoRub has endeared itself to
the Indian consumer and finds its place in every Indian home, due to all
its proven performance over the years against cough and cold; all variants
of Vicks have continued to be consumer favorites over the years
Target Marketing – Its mainly targeted to the children of age from 8 to 16
years which gives instant relief fromcold and cough and blocked nose;
Vick lozenges is mainly targeted to adults who are mainly frequently
suffering from throat infections and irritations
Market Positioning – Vicks enjoys excellent and generic recall of brand
with the catchy characters “Kitch Kitch”; with the unique shape and long
lasting positioning “Vicks ki goli lo, kitch kitch door karo” is a super brand
in this category

38. 38
Customer Behaviour:
Procter & Gamble markets approximately 300 brands of consumer products
to nearly 5 billion consumers in over 160 countries. P&G is a >50 Euro

39. 39
billion global company and employs more than 100,000 people. In Europe,
P&G has 5 technical R&D centres with between 300,700 researchers per site,
over 20 plants for consumer products. Consumer understanding and
market adoption is a core capability.
P&G has extensive experience in the understanding of consumer behaviour
and interaction with fast moving consumer goods both based on large base
quantitative assessments of products and qualitative one on one consumer
interactions. The product research department identifies new product
opportunities based on societal and product trends to develop concrete
product opportunities from ideas, through concept and final prototyping.
The department has members across the technical centres around Europe
and in different businesses. They are linked in with rapid prototyping
organizations and multifunctional commercial teams. The consumer
understanding knowledge covers both psychology knowledge and
industrial design aspects.
Consumer understanding knowledge is based on practical understanding
market drivers, societal trends and market analysis. It involves practical
tools of consumer focus group settings and advanced human psychological,
anthropological and behavioural science based approaches. In addition new
monitoring technologies could achieve superior quantification of this
capability.
P&G’s Connect & Develop initiative is a referenceopen innovation
approach to product development that leverages the ideas, talents and
innovation assets of individuals, institutes and companies around the world.
It is well recognized as one of the worlds’s most outward looking efforts
(McKinsey, Nov 2006), using P&G’s extensive external network – academics,
alumni, suppliers, technical communities, consumer communities, creative
agencies, bankers and venture capitalists – both to generate ideas and
complete deals.

40. 40
 Why should P & G be concerned about what consumers do with its
products?
P&G doesn't deny it. It takes its environmental responsibility to build safety
and sustainability into its brands very seriously. And P&G has made great
efforts - and large investments - to make sure its operations are as
environmentally efficient as possible. P&G also works with its business
partners, suppliers, retailers and industry bodies to try to ensure that its
efforts to protect the environment are amplified through the effects of
collaboration.
However, the nature of laundry and cleaning products is such that a
disproportionate amount of their environmental impact takes place at the
point of use. And that is something that the consumer controls, not P&G.
Accordingly, P&G believes that it would be failing in its responsibility to the
environment if it did not, first, create products that allow the same results
with less environmental impact and, second, tell consumers how to reduce
their environmental impact.
 How consumer behaviour has an impact on the environment?
Like other manufacturers, P&G has always made significant efforts to try to
minimize the impact of its products on the environment. P&G provides
products which come in weight-optimized, recyclable packaging, giving
great results at low temperatures and working with lower doses - all things
which can help minimize their impact on the environment.
Unfortunately, though, all this effortis for nothing if, the consumer decides
to wash at high temperatures, ignore dosage instructions and throw the

41. 41
packaging into the bin rather than recycling it. The pieces of advice on this
site may, individually, not appear to make much of a difference. But add
them together, multiply them by thousands or millions of households, and
you have a real possibility of helping to deal with some big challenges
facing the environment.
One of the things that make environmental challenges such as climate
change so difficult to comprehend is that each of us, individually,
contributes so little to this global phenomenon. Can driving the kids to
school really be that bad? Will ecosystems really be endangered if I use too
much water in the wash?
The answer of course, is that each small action can have a major effect
when multiplied millions of times over in households around the world.
But this also means that environmental threats do not necessarily need us
to do something major; they just need all of us to do small things, in the
right direction. Here is a list of big environment concerns and areas where
changes in consumer behaviour can help:
i. You can do your bit to combat climate change by using public
transport more often and cars less; cutting down on the number
of trips you take by air; insulating your house; using energy-
efficient light bulbs; and washing your clothes at 30 degrees.
ii. Freshwater can be preserved by using hosepipes less; taking
more showers and fewer baths; reusing dirty water on the garden;
tracking down and repairing leaks; using water-saving toilet
flushes; and dropping the pre-wash cyclewhen you do your
laundry.
iii. Solid waste can be reduced by reusing items wherever possible;
recycling packaging, bottles, food and other items of rubbish;

42. 42
choosing products that come in containers made from recycled
materials; buying items that have less packaging.
iv. Air quality can be improved by using mass transport systems,
reducing the amount of electricity used in the home and at work,
purchasing items that can be transported more efficiently such as
compact detergents. There are many other measures each one of
us can take but the important thing is that each individual step
does not have to be a big one; it is as important (and easier) to do
a number of small things, often, and for as many people as
possible to do them.
 How P & G is helping consumers make a difference?
P&G is committed to the environment and recognises that it has a big
responsibility to do its best so that its operations and products are
sustainable. After all, every day P&G products are used billions of times a
day.
In order to achieve this commitment, in addition to the work that P&G
carries out to improve the sustainability profile of its products and
operations, P&G is keen to help consumers reduce their environmental
impact.
This involves a 2-pronged approach: first, P&G is creating products that can
be used with as little environmental impact as possible; using less energy,
water, packaging, and chemicals and so on. P&G does this while ensuring

43. 43
that the cleaning performance and convenience from the use of its products
are not compromised.
Secondly, P&G needs to explain to consumers the value of its products and
help them change their behaviour in order to do their share for a better
environment. This compels P&G to create campaigns to encourage simple
changes in the use of its products: adding a couple of extra items to each
laundry wash to cut down the overall number of washes and save water, for
example, or washing at a lower temperature to save energy.
 P & G’s approach on driving sustainable consumer behaviour.
P&G wants consumers to use its products in a sustainable way. To do so,
P&G is keen to help you adopt lower-impact laundry and cleaning practices.
Changing consumer behaviour to more sustainable washing practices is
essential but not always easy.
P & G’s model for achieving it successfully involves:
i. Ensuring there is no compromise in cleaning performanceor
convenience, with…
ii. Quantifiable sustainability benefits as gauged through industry-
standard measures such as life cycle analysis, all…
iii. Correctly communicated in a way that will interest consumers
and…
iv. Supported by independent organizations and stakeholders.
P&G aims to inform and educate consumers at two stages during the life
cycle of its products: when they are bought and when they are used.
At the point of purchase, P&G believes it is important for consumers to buy
the right products for the environment. That means products which can be

44. 44
used with the most energy and water-efficient appliances and are in
themselves the most efficient product format, such as compact detergents
and refills.
When it comes to use, P&G's aim is to get consumers to use products
correctly and in a sustainable way.
This means:
i. Making proper use of appliances, for example by using energy and
water-saving cycles where available.
ii. Making proper use of detergents, for example by using the right
doses, reading instructions, adapting dosage to water hardness and
so on.
iii. Adopting efficient practices such as filling machines before
switching them on, limiting pre-wash cycles to when they are
absolutely necessary and so on.
iv. Disposing of packages correctly after use; recycling bottles and
cardboard.
v. For more general information on what drives us at P&G, why not
take a look at P&G's original.
 What will P & G be doing in future to promote more sustainable
consumer behaviour?
P&G will continue to try to reduce the environmental impact of its
company in as many ways as possible, and this goes for its efforts to
influence consumer behaviour.
On energy use, P&G is selling products such as Ariel Turn to 30 in the UK
and Tide Cold Water in North America, which allow consumers to get a
superior wash at low temperatures, saving money and helping the planet.

45. 45
And it is a significant amount of help: washing clothes at reduced washing
temperatures, such as by switching from 40 to 30 degrees, could save
around three per cent of a household's electricity use in Europe.
Consequently, P&G will continue to work with a range of organizations to
promote cold-water washing. In the UK, for example, P&G has teamed up
with the Energy Savings Trust.
Plus P&G will look at other ways to promote energy conservationin the
wash, for example by using shorter wash cycles.
P&G will also continue to look for ways in which it can help consumers
save water. As with energy consumption, the main potential for water
savings is when P&G products are being used, not when they are being
manufactured, distributed or sold. For example, Ariel detergent can
produce excellent results without a pre-wash. Pre-washes are still commonly
used in a lot of households. For example, between 15 and 20 per cent of
people use a pre-wash in France, Italy, Germany, Spain and several other
countries. In other countries, such as the UK, the figure is between 5 and 10
per cent. Persuading people to switch to Ariel and leave out the pre-wash
could lead to significant water savings.
This is just one of many potential water-saving ideas that could have a
significant impact on water use in Europe. Besides investing in campaigns
related to its products, P&G will remain committed to helping consumers
with tips on how to save water in other areas of their lives.
Finally, P&G will continue to encourage consumers to recycle as much of
its packaging as possible - and make it easier for them to do so.

46. 46