STRATEGIC MANAGEMENTStrategic Report on Procter & Gamble

Presented By :Ritu Lakhotia- Pgdma1146Ronak H.Patel- Pgdma1147Sandeep Kumar-pgdma1148Sandeev Kumar Rp- Pgdma1149Sandeev Kumar Sk- Pgdma1150

Date:-17 February 2012

Contents

OVERVIEW

SWOT ANALYSIS

PRODUCT DIFFERENTATION

DISTRIBUTION STRATEGY

PROMOTION STARTEGY

PRICING STRATEGY

BIBLIOGRAPHY

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.

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

The Procter & Gamble company• P&G Hygiene and Health Care Ltd. • P&G Home Products Ltd.• Gillette India.

Location of Factor

Types of Factors

Favorable Unfavorable

Internal Strengths:Diversified brand portfolioResearch and DevelopmentGlobal OperationStrong Distribution Network

Weakness:Online media & LeadershipDependencyMissing OpportunityWeakness in beauty care division

External Opportunity:DiversificationCapitalizing on online mediaGrowth in Indian FMCG marketEnvironment concern

Threats:CompetitionNo new product innovationGovernment regulation

SWOT Analysis:Strengths, Weaknesses, Opportunities, Threats

Product Differentation

BRAND LOYALITY DISTRIBUTION CHANNELINNOVATIONPRICING STRATEGYQUALITY OF THE PRODUCT

WHAT MAKES “P&G” DIFFERENT FROM OTHERS?

P&G VS ITC

PROCTER & GAMBLE ITC

DIFFERENT BRANDS OF “P&G AND ITC”

P&G – SHAMPOO PANTENE , HEAD

& SHOULDERS etc HEAD &

SHOULDERS as example

Easily available Wide range of

pricing

ITC – SHAMPOO FIAMA DI WILL,

SUPERIA etc. FIAMA DI WILL as

example Not easily

available Has less pricing

range.

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

Distribution :The distribution is of three types,

which are being followed :Intensive distributionExtensive distributionSpecialty distribution

Basic Channels of Distribution

Manufacturers/products

Agents

Wholesalers/distributors

RetailersRetailers

Consumers and organizational end users

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

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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

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.

Promotion strategyP&G insists on a pull strategyHeavy advertising and media

pioneerAdvertising creativityP&G – A click mortar companyCoupon

Pricing strategiesUnderstand 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.

Different pricing strategies adopted by p&gOptional-features strategyProduct-line pricingCost-plus pricingCompetitive pricingDistribution pricing

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.

CONCLUSION

BIBLIOGRAPHY

http://www.wikiswot.com/SWOT/3_Consumer_Packaged_Goods_(CPGs)/Procter_and_Gamble.html

http://wiki.answers.com/Q/Swot_analysis_of_procter_gamble http://www.corporatewatch.org/?lid=247 http://www.cisco.com/warp/public/779/ibs/solutions/supply/p

gcasestudy1.pdf http://www.emory.edu/BUSINESS/dra/PGsmartersupplychain.

pdf http://www.business-standard.com/india/news/with-pringles-

buy-kelloggs-haslarger-canvas-in-india/464942/ http://www.pg-india.com/

Thank You