75
A PROJECT REPORT ON Submitted in Partial Fulfilment of the Requirement for Master of Business Administration (2009-2011) Submitted to: Submitted by: Mr.Amitabh Bhattacharya (HOD of Management Block) Aditya Kumar Jain MBA III Sem. Roll No.: 9952

Research on P&G

Embed Size (px)

DESCRIPTION

MBA final Project report on P&G

Citation preview

Page 1: Research on P&G

A PROJECT REPORT

ON

Submitted in Partial Fulfilment of the Requirement for Master of Business Administration

(2009-2011)

Submitted to: Submitted by:

Mr.Amitabh Bhattacharya(HOD of Management Block)

Aditya Kumar JainMBA III Sem.

Roll No.: 9952

BENGAL COLLEGE OF ENGINEERING AND TECHNOLOGY

Sahid Sukumar Sarani, Bidhannagar, Durgapur-713212, W.B. (India)

Page 2: Research on P&G

PREFACE

A project is a scientific and systematic study of real issues on a problem

with the application of management concept and skills. The study can deal

with small or big issues in any division of an organization. It can be case

study where a problem has been dealt with, through the process of

management. The essential equipment of a project is that, it should contain

scientific collection of data, analysis and interpretation of data leading to

valid conclusion. There are number of forces that make marketing an

endlessly changing activity. The constantly active sociological,

psychological and political environment may represent the uncontrollable

marketing factors. To understanding these factors in better way marketing

research is of atmost importance.

This project report has been completed in partial fulfillment of my

Management Program, Master of Business Administration in the

PROCTER & GAMBLE. The topic of my project was “MARKETING

RESEARCH IN PROCTER & GAMBLE.

With such large population and the untapped market of populations FMCG

sector has a very bright scope in India.

Page 3: Research on P&G

CONTENTS

PREFACE

ACKNOWLEDGEMENT

DECLARATION

EXECUTIVE SUMMARY

PROJECT OBJECTIVE

I. INDUSTRY PROFILE

1) Introduction to FMCG INDUSTRY

2) Categories of FMCG

3) SWOT Analysis of FMCG Industry

II. COMPANY’S PROFILE

1) Introduction

2) Purpose, value & principles

3) Market share of P&G

4) Reports highlight

5) CSR of P&G

6) P&G Brands

7) Competitors of P&G

Page 4: Research on P&G

III. MAIN STUDIES

1) Introduction to the Topic

2) Product & Sales Procedure of P&G

3) The problem being faced

4) What does company expect to do by solving the

problem

IV. RESEARCH METHODOLOGY

Research Process

V. DATA ANALYSIS AND FINDINGS

1) Data interpretation

2) Finding

3) SWOT Analysis of Industry

VI. HYPOTHESIS & RECOMMENDATIONS

APPENDICES

1) Questionnaire Section

2) Bibliography

Page 5: Research on P&G

ACKNOWLEDGEMENT

It is a great pleasure to have this opportunity for the preparation of this

thesis. I have learned a lot and really enjoyed while working on this thesis. I

would like to sincerely thank all those who helped me with their valuable

support during the enter process of the learning. This has given me a good

insight to know how companies work with their retailer and customer and

also advertisement of their product.

Firstly, I would like to thank my supervisor Mr. Somraj Banerjee &

Mr. Mainak Sarkar for helping me through this time and giving me a lot

of help and good comments from Bengal college of Engineering and

Technology.

Secondly, I wish to acknowledge my special thanks to Mr. Bishwajeet who

helped me lot to make this work possible. I would also like to thank Mr

Mithlesh kr. Jha (Bussiness head Jharkhand) and his team members who

helped me lot to collect the data for preparing this project.

Last but not least, I would especially like to thank my family and friend for

their sincere interest in my work and their moral support. Finally, above all I

thank God for his guidance.

ADITYA KUMAR JAIN

Page 6: Research on P&G

DECLARATION

I, “ADITYA KUMAR JAIN” a student of MBA from BENGAL

COLLEGE OF ENGINEERING & TECHNOLOGY, DURGAPUR

(Approved by AICTE and Affiliated to WBUT, Kolkata) do hereby declare

that the project report entitled “MARKETING RESEARCH IN PROCTER &

GAMBLE” has been submitted by me as a requirement for the award of

degree of MASTER OF BUSINESS ADMINISTRATION training period

was from 17th June to 14th August, 2010.

The summer training project on this marketing title was done under the

guidance of Mr. Mithlesh kr. Jha, Reliance communication is the original

work done by Aditya Kumar jain, a student of Bengal college of Engineering

and Technology. This is the property of Institute & use of this report without

prior permission of the Institute will be considered illegal & actionable.

Date:-

Place: DURGAPUR

ADITYA KUMAR JAIN

Page 7: Research on P&G

EXECUTIVE SUMMARY

In each and every management training scheme, there is a provision for real

time job experience within the academic time period. Some where it is called

as summer training, Corporate Interaction or Corporate Training. The

purpose of this training is to introduce the student as a professional in the

corporate arena. Student take theoretical knowledge in their classrooms but

in this training period they utilize and see the implementation of this

knowledge. It is well said phrase that “nothing is much practical than a good

theory” but on the same hand we cannot deny that “practical is better than

theory”. We can say both the phrases are not opposing each other but they

are complementary to each other. Experiencing both in a good and

dedication manner really pays a lot in one’s professional career.

In the field of marketing the scenario is no exception. Field exposure is very

much necessary for a student of marketing too. In this stream of business the

application of theory is very frequent. From consumer behaviour to

consumer satisfaction all the theory can be experienced in a day spend in the

field of marketing. Marketing is now diversified that it can be done by cell

Page 8: Research on P&G

phone or internet. But experience the real marketing tact is possible in the

marketing of FMCG industry.

I therefore tried to complete my summer training from any FMCG company.

With my honest efforts and some great luck I got a chance to complete my

summer training from PROCTER & GAMBLE, RANCHI.

This report on Procter & Gamble is done to find out certain objectives

regarding the strategic approach adopted by Procter & Gamble to stand

strongly in the competitive FMCG market.

The outcomes of these models are properly analyzed to find out the various

aspects like companies position and competitors position in the market. This

report on Procter & Gamble not just give description about the company but

it’s also talk about the various marketing strategy adopted by the company.

SWOT analysis of Procter & Gamble finds out the weak points of the

company and to find out the way to overcome this problem.

Page 9: Research on P&G

PROJECT OBJECTIVES

The Indian FMCG market scenario has transformed into a multiplayer, multi

product market with varied market size and segment. The various objectives

behind carrying out this project are as follow:-

Object of study are:

To study the preference of customer among different FMCG

company.

Brand awareness of various FMCG companies.

Quality of service provided by company and satisfaction level.

What marketing strategy does PROCTER & GAMBLE is

implementing to defend and increase its marketing share.

To find who are the competitors of the PROCTER & GAMBLE

and the market share of the competitors and what strategies it is

implementing to beat its competitors.

Page 10: Research on P&G

To find out how the company react to the new technology

change in this sector.

INDUSTRY PROFILE

FAST MOVING CONSUMERDS GOODS INDUSTRY

Fast Moving Consumer Goods (FMCG), are the products that are sold

frequently purchased at relatively low cost. Though the absolute profit made

on FMCG products is relatively small, they generally sell in large quantities,

so the cumulative profit on such products can be large. Examples of FMCG

generally include a wide range of frequently purchased consumer products

such as toiletries, soap, cosmetics, oral care products, shaving products and

detergents, as well as other non-durables such as glassware, light bulbs,

batteries, paper products and plastic goods. FMCG may also include

Page 11: Research on P&G

pharmaceuticals, consumer electronics, packaged food products and drinks,

although these are often placed separately.

FMCG products are generally replaced or fully used up over a short period,

usually a few days or weeks, or months, but within one year.

CATEGORIES OF FMCG INDUSTRY

Segments Products Major playersHousehold care

Soaps and detergents, household cleaners, mosquito resellers

P&G, HUL, Nirma, ITC, Dabur, etc

Personal care

Oral care ,skin care, hair care, soaps, toiletries and cosmetics, deodorants, female hygiene products ,paper products

P&G, HUL, ITC, Femcare, Lakme, Marico, Himalaya, Emami, Dabur, Colgate-Palmolive

Food &Beverages

FOOD: staples/cereals, Snacks, bakery products, ice cream,

ITC,parle-agro,nestle,Britannia,Cadbury India, PepsiCo, Dabur

Page 12: Research on P&G

chocolates, braded sugar, branded flour

BEVERAGES: health beverages, soft drinks, tea, coffee. Packaged water, liquor, juice.

Coca-cola, PepsiCo, Dabur, Glaxosmithkline,Khaitan

United breweries

Salient features of the FMCG industry

The FMCG industry is the key component of Indian economy, which

is fourth in therewith pays a great part of Indian GDP and is a direct

and indirect employer. It’s responsible for 5%of total factory

employment in India and creates employment for 3 million people.

FMCG produces the items of every day needs of the people. Low

priced products account for the major part of the sales and low and a

lower middle income group produces the sector’s 60%

sales.moreover, Indian rural market creates 56% of total domestic

FMCG demand.

It has significant links with the agriculture sector and 71% of the sales

come from the agro-based products. it is 2nd to IT sector in creating

market capital. it also has accountable contribution in the total

corporate tax, central excise revenue and state tax revenues.

Page 13: Research on P&G

the main challenges for the new players are huge investment, strong

distribution channels, for building and growing the brand

The sector is characterized by low margins and high volumes., Indian

consumer is very price sensitive. The cost increment is partially

passed on to the consumers in the personal care sector due to effective

branding

COMPETITION IN THE MARKET

In past, domestic companies were not considered as competitive like

the multinational corporations (MNCs).but at present times, the

scenario has changed to a great extent and it is changing furthermore,

with domestic companies like Nirma,dabur,Marico,himalaya standing

up to their MNC counterparts.

Also, competition among the MNCs has increased resulting in

shrinkage of margins.

Page 14: Research on P&G

SWOT analysis of the FMCG industry

Strengths:

i. Well-established distribution network extending to rural and urban areas.

ii. Powerful brands in the FMCG sector.

iii. Low price operations

Weaknesses:

i. Low export levels.

ii. Small scale sector reservations limit ability to invest in technology and achieve

iii. Economies of scale.

iv. Several similar products

Opportunities:

i. Huge untapped domestic market.

ii. Export potential.

iii. Increasing disposable income levels will result in faster revenue growth.

Threats:

i. High Imports level

ii. Taxation and regulatory structure.

iii. Slowdown in rural demand.

iv. Competition from unbranded players in dogmatic market

Page 15: Research on P&G

iv. Segmented approach to general trade and modern trade

v. Penetration in rural markets

vi. Improving customer services:

v. Removal of import restriction resulting in replacement of domestic products and brands

vi. Bargaining power of consumer rising material, advertisement and distribution prices

vii. Mushrooming of local brands

COMPANY’S PROFILE

INTRODUCTION TO PROCTER & GAMBLE

Procter & Gamble is world’s largest multinational consumer goods

company, and 8th largest market capitalization organization in the world.

Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500, American

multinational corporation headquartered in Cincinnati, Ohio, that

manufactures a wide range of consumer goods. As of 2008, P&G is the 8th

largest corporation in the world by market capitalization and 14th largest US

Company by profit. It is 10th in Fortune's Most Admired Companies list (as

of 2007).

P&G is credited with many business innovations including brand

management and the soap opera.

Page 16: Research on P&G

HISTORY

William Procter, a candle maker, and James Gamble, a soap maker,

immigrants from England and Ireland, respectively, who had settled earlier

in Cincinnati, formed the company initially, who met as they both married

sisters, Olivia and Elizabeth Norris.

As the result of persuation by their father in law, Alexander Norris, Procter

&Gamble was born on October 31, 1837, as they became business partners.

By1859, when 80 employees worked for P&G, sales reached 1million dollar.

The company supplied soaps and candles to the Union Army during the

American Civil War .the military contracts won introduced soldiers from all

over the country to P&G’s products, along with increased profits.

In 1980s, it began marketing a new product, an inexpensive soap that floats

in water. It was named ‘Ivory’.

In 1987, William Procter’s grandson William Arnett Procter began a profit

sharing programme for its employees; he assumed that by giving the workers

stake in the company, they would be less likely to go on strike.

The company started building factories in other site of USA as the demand

was outgrowing the capacities of Cincinnati. The products were also being

diversified. It also sponsored a number of radio programme termed as “soap

operas”.

With its 1930 acquisition of Newcastle upon Thomas Hedley Co, it became

an international corporation. Numerous new products were introduced over

time, like Tide, Prell, Crest, Bounce, Pampers, and Chux.

Page 17: Research on P&G

P&G acquired a lot of companies including Folgers coffee, Norwich Eaton

pharmaceuticals, Richardson- Vicks, Noxell, Max Factor, Iams Company.

P&G acquired Gillette in January 2005, forming the largest consumer goods

company and placing Unilever in the 2nd place.

P&G has expanded significantly, but its headquarters still remains in

“Cincinnati”.

TAGLINE OF COMPANY

PURPOSE, VALUES AND PRINCIPLES

PURPOSE

They provide branded products and services of superior quality and

value that intend to improve the lives of the world's consumers, now

and for generations to come. As a result, consumers will reward them

with leadership sales, profit and value creation, allowing people,

shareholders and the communities in which live and work to prosper.

VALUES

P&G is its people & the values by which they live.

They recruit the finest people in the world. They build the

organization from within, promoting and rewarding people without

Page 18: Research on P&G

any difference unrelated to performance. They work on the conviction

that the people of P&G are the most rewarding asset.

Integrity :

Being right in deeds, honest and straight to each other operating

within the spirit of law, upholding the values and principles in every

decision and action, staying data-based and intellectually honest in

advocating proposals and recognizing risks.

Leadership: Having clear vision of where they are going, focusing

the resources to achieve leadership objectives and strategies.

Developing: Developing the capability to deliver the strategies and

eliminate organizational barriers.

Ownership: Accepting personal accountability to meet the business

needs. Improve the system and helping others improve their

effectiveness. Everyone acts owner, treating the company’s assess as

own and behaving with company’s long term success in mind.

Passion for winning: Determination to be the best, having healthy

dissatisfaction with the status quo, compelling desire to improve and

win in the workplace.

Page 19: Research on P&G

Trust: Respecting &treating others as they want to be treated, having

confidence in each other’s capabilities and intentions. Foundation of

trust.

PRINCIPLES

~Showing respect for others

~Being strategically focused in the work

~Valuing personal mastery

~Seeking to be the best

~Making the interests of the company and workers inseparable

~Innovation is the cornerstone of success

~Making mutual interdependency a way of life

~Staying extremely focused

MARKET SHARE OF P&G P&G enjoys a market share of 10 per cent in the Rs 560-crore AP detergents

market. AP alone accounts for 11 per cent of the national market for

detergents, estimated at around Rs 5,000 crore.

The company had significantly improved its market share in the last couple

of years from around 6 per cent to 10 per cent.

Globalization and technological revolution have transformed the dynamics

of business and with it, the definition of customer and market knowledge.

Listening to the customer, analyzing competition and defining strategies

make good Customer relationship management which has given way to a

new paradigm in the market and also focus on the competitor with customer

intelligence in a core competency level.

Page 20: Research on P&G

The Rs13, 000 crore Indian detergent markets is the largest segment in the

consumer goods sector and both players are struggling to protect their

market share and boost profit.

Report Highlights

P&G markets more than 300 brands including 22 billion-dollar brands in

more than 180 countries spanning Americas, Europe, the Middle East and

Africa (EMEA) region, and Asia. 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

and beverages such as coffee. In many of the markets and industry segments,

in which P&G markets its products, it competes against other branded

products as well as retailers' private-label brands.

CORPORATE SOCIAL RESPONSIBILITY

At P&G, social responsibility stems from corporate PVP purpose, values,

principle

Social projects are in keeping with P&G’s credo of “business with a

purpose”.

It has always demonstrated its commitment to the community not just

through the quality of its products and services, but also through socially

responsible initiatives for the community. It believes in building the

Page 21: Research on P&G

community in which it lives and operates by supporting its ongoing

developments.

Project shiksha: educating underprivileged children

Project shiksha: secure your Childs future (2003)

Rebuilding lives in earthquake hit Bhuj (2001/2002)

Project poshan: fighting malnutrition in India (2000)

Project open minds: educating India’s working youth (1999)

Project peace: environment education programmed (1996)

PROCTER &GAMBLE BRANDS:

24 of P&G's brands have more than a $ billion in net annual sales, and

another 18 have sales between $500 million and $1 billion.

Billion dollar brands:

Page 22: Research on P&G

1. Always is a brand of feminine hygiene products, including maxi pads,

panty liners, and feminine wipes.

2. Ariel is a brand of laundry detergent/liquid available in numerous

forms and scents.

3. Atonal is a brand of the osteoporosis drug risedronate co-marketed by

Sanofi-Aventis.

4. Bounty is a brand of paper towel sold in the United States, Canada,

and the United Kingdom (rebranded to "Plenty" in the UK after being

sold to SCA Svenska Cellulose Aktiebolaget).

5. Braun is a small-appliances manufacturer specializing in electric

razors, coffeemakers, toasters, and blenders.

6. Crest is a brand of toothpaste.

7. Dawn is a brand of dishwashing detergent.

8. Downy/Leonor is a brand of fabric softener.

9. Duracell is a brand of batteries and flashlights.

10.Fusion is a brand of men's wet shave razors and is the quickest P&G

brand to have reached $1 billion in annual sales.

11.Gain is a brand of laundry detergent and fabric softeners.

12.Gillette is a safety razor manufacturer.

13.Head & Shoulders is a brand of shampoo body wash, and deodorant.

14.Old Spice is a brand of aftershave and shaving cream.

15.Ivory is soap.

16.Nice 'n Easy is a hair coloring product.

17.Olay is a brand of women's skin care products.

18.Oral-B is a brand of toothbrush.

Page 23: Research on P&G

19.Pampers is a brand of disposable diaper.

20.Pantene is a brand of hair care products (conditioners/styling aids).

21.Prilosec OTC is a brand of heartburn medicine co-marketed by

AstraZeneca.

22.Pringles is a brand of potato chips.

23.A puff is a brand of facial tissue.

24.Secret is a brand of antiperspirant and deodorant.

25.TAG is a deodorant and body spray.

26.Tide is a brand of laundry detergent.

27.Vicks is a brand name of over-the-counter medicines (Formula 44,

Sinex, and NyQuil/DayQuil)

28.Wella is a brand name of hair care products (shampoo, conditioner,

styling, and hair color).

29.Whisper is a brand of panty liners sold primarily in Asian markets.

Page 24: Research on P&G

Competitors of Procter & Gamble:-

Page 25: Research on P&G

Introduction of Topic

Loreal

Colgate-Palmolive

Kimberly-clark

Clorox company

Unilever NV

Procter and gamble

Page 26: Research on P&G

The topic which was assigned to me was the “MARKETING RESEARCH IN

PROCTER & GAMBLE”.

Marketing research is the systematic gathering, recording, and analysis of

data about issues relating to marketing products and services. The goal of

marketing research is to identify and assess how changing elements of the

marketing mix impacts customer behavior. The term is commonly

interchanged with market research, however the expert practitioners may

wish to draw a distinction, in that market research is concerned specifically

with markets, while marketing research is concerned specifically about

marketing processes.

Marketing research is often partitioned into two sets of categorical pairs,

either by target market:

Consumer marketing research, and

Business-to-business (B2B) marketing research

Or, alternatively, by methodological approach:

Qualitative marketing research, and

Quantitative marketing research

Role of marketing research

Page 27: Research on P&G

The role of marketing research in managerial decision making is explained

further using the framework of the "DECIDE" model:

D-- Define the marketing problem

E-- Enumerate the controllable and uncontrollable decision factors

C-- Collect relevant information

I-- Identify the best alternative

D-- Develop and implement a marketing plan

E--Evaluate the decision and the decision process

Marketing research characteristics:-

Identification Objective Systematic

Types of marketing research:-

Marketing research techniques come in many forms, including:

1. Advertising Research

2. Brand equity research

3. Brand association research

4. Brand attribute research

5. Brand name testing

6. Commercial eye tracking research

7. Concept testing

8. Coolhunting

9. Buyer decision processes research

Page 28: Research on P&G

10.Copy testing

11.Customer satisfaction research

12.Demand estimation

13.Distribution channel audits

14.Internet strategic intelligence

15.Marketing effectiveness and analytics

16.Mystery Consumer or Mystery shopping

17.Positioning research

18.Price elasticity testing

19.Sales forecasting

20.Segmentation research

21.Online panel

22.Store audit Test marketing

23.Viral Marketing Research

24.Social Networking Potential

All of these forms of marketing research can be classified as either problem-

identification research or as problem-solving research.

Marketing research methods

Methodologically, marketing research uses the following types of research

designs

Page 29: Research on P&G

Based on questioning:

Qualitative marketing research – It is used for exploratory

purposes, small number of respondents and not for the whole

population. Examples- focus groups, in-depth interviews, and

projective techniques

Quantitative marketing research –It is used to draw conclusions,

tests a specific hypothesis, uses random sampling techniques so as to

infer from the sample to the population. Examples- surveys and

questionnaires.

Based on observations:

Ethnographic studies : By nature qualitative, the researcher observes

social phenomena in their natural setting - observations can occur

cross-sectionally (observations made at one time) or longitudinally

(observations occur over several time-periods)

Examples- product-use analysis and computer cookie traces.

Experimental techniques : By nature quantitative, the researcher

creates a quasi-artificial environment to try to control spurious factors,

and then manipulates at least one of the variables. Examples-purchase

laboratories and test markets.

Product & Sales Procedure of Procter & Gamble:-

Page 31: Research on P&G

P&G

C&F Agent

Distributor

Retailer

Customer (Consumer)

The problem being faced

Lack of communication between retailers and distributor.

Lack of improper distribution channel.

Not regular visit of salesman.

Lack of sales promotion and advertisement.

Retailer doesn’t get claim at proper time.

Page 32: Research on P&G

What does company expect to do by carrying out the market research?

To check the customer satisfaction.

To check the retailer satisfaction.

To increase in Sales volume.

Sales Promotion.

Establish a proper Distribution Channel between retailer and distributor.

RESEARCH METHODOLOGY

Page 33: Research on P&G

RESEARCH PROCESS:-

1. Problem definition and recognition

A research generally begins with a question. That question is the synonym

for problem definition. It is the base of a research. Based on that problem a

researcher formulates the objectives and scope of the study. Clearly stated

objectives keep a research project focused. The research question can also be

stated as hypothesis. It is simply the researcher’s belief about a problem,

which he develops during the review of literature.

2. Creating research design

The researcher chooses the research design based on how he would like to

come to a conclusion and whether that research type would satisfy his thirst

meet the objectives and goals for the study undertaken. For this research

exploratory research design has been chosen.

3. Sampling

It involves defining the target population. Types of sampling are random,

stratified, systematic, convenience, judgment, and quota and snowball

sampling, convenience sampling would serve the purpose of this research.

4. Data collection

A research project uses a data collection technique appropriate to the

particular research methodology. Quantitative study employs deductive

Page 34: Research on P&G

logic, where the researcher starts with a hypothesis, and then collects data to

confirm or refute the hypothesis. Qualitative studies use inductive logic,

where the researcher first designs a study and then develops a hypothesis or

theory to explain the results of the analysis. For this research qualitative

study would be adopted.

5. Data analysis

These days’ computer software has made the analysis of quantitative data a

very easy task. It is no longer incumbent on the researcher to know the

formulas needed to calculate the desired statistics. Data analysis then leads

to findings and conclusion of the research.

6. Reporting the result 

The purpose of reporting is to communicate information, and therefore, the

report should be prepared specifically for the readers of the report.

7. Validity and reliability

It refers to the accuracy or truthfulness of a measurement. Reliability is synonymous with repeatability. A measurement that yields consistent results over time is said to be reliable.

Data interpretation and Findings

Page 35: Research on P&G

The data interpretation which I have made after visiting the various outlets and customers are as follow: ---

1. Sales – Tabulating in percentage the sales of different FMCG Company

Company Sales Percentage %Hindustan uniliver ltd 45

Procter & Gamble 40

Loreal 5

Colgate -Palmolive 10

2. Product Rating Tabulation

Page 36: Research on P&G

Product Rating Percentage%

Poor 5

Good 65

Very Good 20

Excellent 10

3. Buying decision Factor Percentage tabulation

Page 37: Research on P&G

Factors Percentage%Price 40Referral 20Quality 30Availability 10

4. Tabulation of consumer income level in percentage.

Page 38: Research on P&G

Income level Percentage%Lower income group 10Middle income group 30Middle income group+ 35Higher income group 25

5. Methods of Promotion

Promotion Medium Percentage%

Page 39: Research on P&G

Newspaper 20

Flyer/coupon 5

Passing by 5

Television 70

6. Frequency of product purchase tabulation

Page 40: Research on P&G

Frequency of purchase Percentage%

Daily 5

Once a week 80

Twice a week 10

Never 5

7. Percentage tabulation of customer loyalty

Customer loyalty Percentage%Less than one year 5

Page 41: Research on P&G

One to under three years 20

Three to under five years 25

Five to under ten years 40

Ten years or more 10

FINDINGS OF THE PROJECT

I have done my project from Ranchi. I visited the retailers and also

interacted with customers.

Page 42: Research on P&G

I have found there are some common problems of retailers, which are as

follow:--

Every retailer wants that there must be transparency in the

distribution channel.

Some customer wants that price of some product must be

reduce.

There is a cut throat competition between HUL and Procter &

Gamble.

It is also found that in some area Salesman don’t visit regularly.

The margin on the product is very low.

Some shopkeepers require signage and banner.

All the retailers appraised that there must be regular supply of

the company’s products.

SWOT ANALYSIS

Page 43: Research on P&G

STRENGTHS

1. Business and community partnerships

2. Leadership focus and accountability

3. Talent support and development

4. Organizing facts

5. Employee networks

6. Inclusive culture

WEAKNESSES

1.There is no Customer care service in P&G

2.Distribution problem

3. P&G is one of the largest corporate producers of air pollution. Emitting green house gases and toxic chemicals.

OPPURTUNITIES:

1. P&G, being a highly diversified organization, can out think, out innovate and out perform a homogeneous organization.

2. P&G may understand the needs of the diverse consumers and can work effectively to fulfill its values, principles and purpose.

3. It can delight the consumer with sustainable innovations that will improve the environmental profile of the products. And thereby increasing the sales.

THREATS

1. The products may directly compete with one another

2. Due to high cultural diversity, problems may arise as a course of miscommunication.

3. There is an enormous chance of completion in the market at the higher positions.

.

HYPOTHESIS

Page 44: Research on P&G

Better product orientation with defined characteristics may confirm

increased sales of products.

Reaching out to the rural customers through various marketing

strategies can boost the net income

Taking over the local brands may help out in tackling competition

Targeting the middle class and lower middle class customers can be

helpful in increasing the demand

Training the employees to learn the local languages can improve

customer relations

Innovative and economic product launching will attract customers

Opening exclusive outlets may increase customer satisfaction by easy

and comfortable reach.

Some products like Gillette and 7o clock are made by the company to

target the higher segment of the market.

In India HUL is another big competitor in FMCG market.

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.

LIMITATIONS OF THE PROJECT

Page 45: Research on P&G

1. All of the retailers were not so co-operative. As they were very busy

with direct selling process, so they hardly get any free time for such

discussion.

2. In my project I supposed to visit every retailer in Ranchi market but

due to some unavoidable circumstances like weekly holiday,

occasional holiday, I could not visit all the retail outlets.

3. Lack of technical information and experience also became hurdles for

me. Some particular sectors of Ranchi were so crowdie and

disarranged that it became quite impossible for us to visit those retail

stores present there.

4. Off course, money also played a vital factor in the whole project

duration.

5. Most of the retailers were illiterate so tackling them was difficult task.

RECOMMENDATION

Page 46: Research on P&G

After completing the project, there are few recommendations, which should

be implemented if possible. It will also help in increasing the market share

of Procter and gamble. The marketing strategies should be changed

according to time and proper policies should be implemented for the proper

growth of the company. Apart from these other things like general

awareness programmes should be promoted. According to the 4 p’s of

marketing strategies are:

1. Product strategies

2. Price strategies

3. Place strategies

4. Promotional strategies

Product strategies

1. P&G should provide modified products so that increase sale of

their products & all the segments of people purchase those

products.

2. Most of the retailers are complaining about the problem

regarding the amount of stock given to their providing the stock at

right time.

Price strategy:

Page 47: Research on P&G

1. P&G provides less schemes to the retailer but other company

provides a large no. of schemes

2. Profit margins of P&G to the retailer are less than the other

companies. So, it should provide equivalent profit margins as other

company provide.

Place strategy:

1. In Ranchi, P&G is second FMCG Company after HUL, there is

large competition in this region. Hence the company has to grasp a

lot of market share.

2. There are retailers &customers in RANCHI where people are not

aware of P&G products. so the company should take special focus

on their area to increase the market share of P&G should provide

special campaign in these areas to know about their products.

3. Many kinds of persons come to purchase the products of P&G

from the nearby area. Those people are mostly from the villages so

the price should be low so that the people can easily buy the

products.

Promotional strategy:

1. The company should promote their products through the different

media like print media, mass media, electronic media and

internet.

2. There should be more schemes for retailers after completing their

sales target at a given period.

Page 48: Research on P&G

3. In Ranchi, the company can improve its market share by regular

performance of promotional activities; they should adopt it by

canopy, attraction hoardings, and banner.

4. P&G should sponsor for the socio cultural activities organized in

Ranchi.

5. P&G should change their packing of their products at regular

interval of year; they should not stick to only

Page 49: Research on P&G

MY LEARINGS

While doing my summer training in one of the recognized organized retail

my basic learning was how FMCG organizations do work and how that

make decision for their future expansion plans. As I was part of a well

growing expansion plan that is franchisee and business development. So in

this two month I had a very tough learning as well as challenging but that

challenge thought a lot and my experience is as follows.

Learning about FMCG Industry: - As in that two month I had been a

part of FMCG Company and I came to know about FMCG Industry.

There is a cut throat competition in the present scenario among the

FMCG Companies. It is very difficult to retain the customers in the

present scenario. The companies are really doing their level best in

satisfying the changing need and demand of customers.

Supply chain management:-supply chain management is like blood

circulation in body. Without that blood circulation retail can not

survive and how that supply chain makes retail effective. Because

demand is equal to supply is the first rule of any market so that the

first and the basic rule is to be completed by supply chain because a

market cannot wait for the products to come in to market so an

effective supply chain can make retailing effective.

Page 50: Research on P&G

Public relation:- As my job was to meet the existing retailers and to

have a interaction with them so that is job of public relation and in

these two months I learnt that how to have a formal interaction with

the client and how to have an interaction to make one convince. I

learnt that to make somebody convince one has to come in to level of

communication to someone convince.

Dissatisfaction of retailers:- As my task was to meet with the retailers

so during my project I meet with several retailers and find a

dissatisfaction level among them. Most of the retailers were not happy

with their type of work and they were agree with that they need more

margin rate on the products and time to time they also demand for the

schemes on the products. The retailers wanted to have a regular meet

with the top level management of P&G once at a regular interval of

six months to solve out their problems

Page 51: Research on P&G

QUESTIONNAIRE

1. Name of outlet:

2. Address:

3. Contact person with phone number:

4. Type of outlet:

(A) Grocery (B) General store

(C) Eatery (D) other

5. Which has the maximum sale at Present from your outlet?

(A) Hindustan uniliver ltd (B) Procter & Gamble (C) Loreal (D) Colgate -Palmolive

6. How do you rate the product of our company?

(A)Poor (B) Good

(C) Very good (D) Excellent

7. What are the factors in the order of importance to you when making a buying decision?

(A) Price (B) Referral

(C)Quality (D) Availibility

8. Are there any other offer you would like to see?

(A) Yes (B) No

9. Do you believe that our competitor’s prices are too high?

Page 52: Research on P&G

(A) Yes (B) No

10. .Do you believe that prices of our product is high? (A) Yes (B) No

11. Which shampoo has the maximum demand?

(A) Head & shoulders (B) Sunsilk

(C) Pantene (D) clinic allclear

12. Which type of customers prefers head & shoulder & Pantene?

(A) Lower income group (B)Middle income group

(C) Middle income group+ (D)Higher income group

13. Which is the most selling blade?

(A)Wilkinson (B) topaz

(C)Zorick (D) 7o’clock

14. Which is the most selling detergent? (A) Tide (B) Ariel

(C) Surf excel (D) Rin

15. Which is the most selling toothbrush?

(A) Oral B (B) Colgate

(C) Pepsodent (D) Babul16. How did you learn about our product?

(A) Newspaper (B) Flyer/coupon (C) Passing by (D) Television

17. How frequently do you purchase our product? (A) Daily (B) Once a week (C) Twice a week (D) Never

18. How would you rate your level of satisfaction with Procter & gamble?

Page 53: Research on P&G

(1 represents "Extremely dissatisfied" and 4 represent "Extremely satisfied)

(A) 1 (B) 2

(C) 3 (D) 4

19 How likely are you to recommend Procter & Gamble to a friend or relative?

Would you say the chances are …? (A) Excellent (B) Good (C) Fair (D) Poor

20. Are you likely to repurchase products and services from Procter & gamble?

(A) Yes (B)No

21. In total, how long have you been a customer of Procter & Gamble?

(A) Less than one year (B) One to under three years

(C) Three to under five years (D) Five to under ten years (E) Ten years or more

Page 54: Research on P&G

BIBLIOGRAPHY

Marketing Management ( Hesselbein, Goldsmith,& Somerville, 2002, p.82)

MAGAZINES India today Business today News papers (Economics Times, Business standards,

Business week)

WEB SITES

www.pg.com www.google.com www.slideshare.com

Other

Material Given by Company Employees