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PROCTER AND GAMBLE

Case Study

Mentor: Prof. Ashok Banerjee


Submitted by: Ankur Aggarwal
Aman Kumar
Amit Kumar
Niraj Mahapatra
Vishwanath Jha

ABSTRACT
US-based FMCG major, Proctor and Gamble (P&G) is
believed to have pioneered the marketing research
concept way back in 1924.

The case gives a brief account of the evolution and


growth of P&G's marketing research efforts. The various
marketing research tools used by the company are
discussed in detail and several real life instances are
narrated.

The case also highlights the recent marketing research


initiatives of P&G, including the thrust on online market
research. The benefits to the company from its offline and
online market research initiatives are also discussed.

ACKNOWLEDGMENT
Life is full of surprises. We never know whats in store for
you in the next moment. The starting days of PGPM
course at MDI- Murshidabad campus were one of the
surprises which helped us grow as a person intellectually
as well as professionally. The exposure given to us has
indefinitely honed our managerial skills which I shall
apply in future.
We consider it my privilege to express a few words of
gratitude and respect to all those who guided and inspired
us in the successful completion of the project.
First and foremost, we thank God Almighty and our
parents for their grace for the successful and timely
completion of the project.
We sincerely thank our mentor Prof. Ashok Banarjee
for providing us with knowledge inputs and valuable
guidance for this project work.
We also wish to take this opportunity to express our
gratitude to thank all the faculty members and my friends
for their help and support for the completion of this
project.

INTRODUCTION
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 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 August 1, 2014, P&G announced it was
streamlining the company, dropping around 100 brands and
concentrating on the remaining 80 brands, which produced 95
percent of the company's profits. A.G. Lafley, the company's
chairman, president and CEO until October 31, 2015, said the
future P&G would be "a much simpler, much less complex
company of leading brands that's easier to manage and operate".
David Taylor became P&G CEO and President effective
November 1, 2015. P&G remains a highly selective employer as
less than 1% of all applicants are hired annually.
P& G is one of the most skillful Marketers of consumer
packaged goods. The companys scope and accomplishments are
staggering. It employs 138,000 people in more than 180
countries; is a global leader in the majority of the 22 different
products categories in which it competes; has $23 billion global
brands; spends more than $5 million in a single day on R&D;

and has total worldwide sales of more than $76 billion a year. Its
sustained market leadership rests on a number of different
capabilities and philosophies:

Customer Knowledge
Long Term outlook
Product Innovation
Quality Strategy
Brand Extension Strategy
Multi brand Strategy
Communication Pioneer
Aggressive Sales Force
Manufacturing Efficiency & Cost Cutting
Brand Management System
Its easy to see that P&Gs success is based on doing one
thing well, but on successfully orchestrating the myriad
factors that contribute to market leadership.

Why P&G needs to improve in Indian context?

Studies shows that Indian market profit contributes to only


3% of its overall worldwide profits.
Its losing market share in India
Many local competitors came into market whose products
are vanishing P&Gs market, eg: Ghari detergent by
RSPL
No match with HUL and ITC product and market portfolio
as both of these understand the needs and demand of the
Indian very well.
They are trying to enter new and untouched market. For
eg: Shampoo where HUL and ITC cover most of the
market
Using pull strategy only
Weak advertisement strategy
Rural market penetration is not up to the mark due to weak
communication and segmentation.
Focus on short term goals rather focus should be on long
term goals.
Weak marketing strategy in India.

What P&G should do for communication


problem?

Hyper Brand Gillette?

Operations
As of July 1, 2014, the company structure has been categorized into four Sectors and five Selling &
Market Organizations (SMOs).

Sectors
Beauty Care
Baby, Feminine, and Family Care
Fabric and Home Care
Health and Grooming
SMOs
Asia
Europe
India, the Middle East, and Africa (IMEA)
Latin America
North America