Procter and Gamble

Subject

Marketing Management

Procter and Gamble

William Procter, a candle maker, and James Gamble, a soap maker, formed the company known
as Procter & Gamble in 1837. The two men, immigrants from England and Ireland respectively,
who had settled earlier in Cincinnati, might never have met had they not married sisters, Olivia
and Elizabeth Norris, whose father convinced his new sons-in-law to become business partners.
On October 31, 1837, as a result of Alexander Norris' suggestion, a new enterprise was born:
Procter & Gamble. Procter & Gamble Co. is a global corporation based in Cincinnati, Ohio that
manufactures a wide range of consumer goods. The company has annual revenue of $55.4
billion and employs 106,000 employees. Procter and Gamble has two main sectors which are
P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. In the Hygiene and Health care
sector they have two Strategic Business Units they are Feminine Care and Health Care. In the
Home Products sector they have three SBU’s which are Fabric Care, Hair Care and Baby Care.

Ariel
Ariel is the world’s leading detergent and epitomizes ‘stain removal’. Introduced in India in 1991,
Ariel has continuously led other detergents in product innovation. It was the first to bring the
‘compact detergent’ technology in India; the enzyme technology for superior and safe stain-
removing power; the proprietary ‘smart eyes’ technology which helps detect and remove stains
better than any other detergent; and now for the first time superior cleaning in a choice of
fragrances. Over the years, the brand has enjoyed endorsement from celebrities such as actress
& social worker Shabana Azmi, Begum of Pataudi, successful actress and homemaker of the
Pataudi family Sharmila Tagore, TV’s most popular ‘saas-bahu’ duo Smriti Iraani and Apara
Mehta, and lakhs of homemakers in India. Ariel comes under the Fabric Care Unit. Ariel has two
types of detergents the Ariel Front-O-Mat and the Ariel 2 Fragrances.

Ariel Front-o-Mat is introduced in India exclusively for front load washing machines. The unique
tumble wash technology of front-loading machines needs a special chemistry, which Ariel Front-o-
Mat provides. Using Ariel Front-o-Mat completely eliminates the need to bucket soak and a scrub.
Ariel Front-O-Mat is available in 1 kg and 1.5 kg packs.

Ariel 2 Fragrances Superior cleaning in a choice of Two Fragrances – Ariel Spring Clean & Ariel
Fresh Clean another Breakthrough Innovation from Ariel for the Indian Family.

Ever wished that your clothes could smell mesmerizing and fragrant like your perfumes? Procter
& Gamble, the makers of leading international fragrances such as Hugo Boss, Lacoste, Old Spice
and Valentino now make your wish come true, with the launch of Ariel in a choice of two exciting
fragrances – Ariel Spring Clean with a floral fragrance, and Ariel Fresh Clean with a refreshing
fragrance. The two unique fragrances of Ariel now offers Indian consumers an unbeatable
combination of ‘superior cleaning’ and ‘a choice of fragrances’ with the launch of Ariel Spring
Clean and Ariel Fresh Clean.

Research conducted by Ariel on the Indian laundry market indicates that ‘fragrance’ in detergents
is an important factor of delight for the home-maker in her daily laundry chore. Inspired by the
roses that bloom in Indian spring time, Ariel Spring Clean has a flowery fragrance. And inspired
by the subtle refreshing scent of the jasmine flower, Ariel Fresh Clean has a fresh fragrance
catering to the Indian consumers’ special fondness for mogra.

Ariel contains safe ingredients for normal fabrics and skin under recommended usage conditions
for laundry, and meets the Company’s stringent human and environmental safety standards.

Ariel in its choice of two fragrances – Spring Clean and Fresh Clean, is available at all leading
general and chemist stores and the price remains unchanged at Rs. 145 for 1.5kg; Rs. 99 for 1kg;
Rs. 50 for 500gm; Rs. 22 for 200gm and Rs. 2 for a 20gm sachet.
 INTRODUCTION
P&G Co. US operates in India through two subsidiaries: PG Hygiene and Healthcare and PG
Home Products. Procter and Gamble India Limited P&G is a 65% subsidiary of the US$ 35
billion global giant Procter & Gamble, USA.

P&G is a market leader in the anti-cold healthcare (Vicks). Globally Vicks brand is worth
around 3000 crores.PG Hygiene and Healthcare is in charge of the Vicks brand of healthcare
products. Vicks is a brand that is more than 50 years old. Vicks is a leading brand in the Fast
Moving Health goods (FMHG). Vicks Brand was launched in India in 1951 & Vicks Cough
Drops in 1966, to relieve cough and minor throat irritations.

To strengthen its brand image, the company has given Vicks the status of a mega brand and
all Vicks sub-brands--Vaporub, Action 500, Cough Drops and Inhalers--have been given a
common packaging to make them look identical.

KEY COMPETITORS
Vicks main competitors are Zandu, Warner-Lambert (Halls),
Amrutanjan’s cold rub,
Using brand imagery Cold
and theSnap,
catchyParas Pharmaceuticals'
character “Kitch Kitch",
D'Cold and a host of look-alikes as competition.
Vicks commands a major share in the market. With unique
shape and the long lasting positioning "Vicks ki goli lo Kitch
Kitch door karo", Vicks is a super brand in the category. Its
unique shapes of cough drops, inhaler and caplet are

UNIQUENESS OFform
examples of using product VICKS
as a differentiating factor. Also
it is economical, so cough up less money and cough less. The
recent campaigns of Vicks-Honey also strengthen the time
tested positioning of the brand.
 MARKET SHARE
P&G's brand Vicks is the No. 1 brand having approximately 60 per cent share of the cold rub
market. Vicks now commands the No. 1 place on the podium, with Vicks Vaporub
commanding a 30% share, cough drops 56% and Action 500 a 51% market share.

ADVERTISEMENTS
The 1980s saw the launch of memorable heart-tugging advertising, some of which were the
‘Happy Birthday Mummy’ and ‘Touch Therapy’ campaigns for Vicks VapoRub, the ‘Khich
Khich Dooor Karo’ ad for Vicks Cough Drops, the ‘Ha Bhai Ha’ ad for Vicks Action 500 which
enable its users to carry on their daily routines, unhindered by the cough.

INNOVATIONS
Vicks cough drop has introduced new flavours: Cherry, Honey & vitamin C.

Fair One
Shahnaz Husain, the pioneer and leader of herbal beauty care, has achieved unprecedented
international acclaim for her practical application of Ayurveda, the ancient Indian system of herbal
healing. Today, she heads the largest organisation of its kind in the world, with over 400 franchise
clinics worldwide. The Shahnaz Husain formulations consist of highly specialised products for
skin, hair and body care, as well as the treatment of specific problems. The ingredients comprise
herb, flower and fruit extracts, essential oils and other natural substances, known for their
beneficial effects on the skin and hair. She has introduced many herbal and ayurvedic products
one of them being fair one. Shahnaz Husain, the queen of herbal care, and Elder Pharma, the
renowned pharma company, announced the launch of ‘Fair One’. This is the first time that
Shahnaz Husain has entered into an association with a pharma company.

Fair one has a unique mix of ingredients such as saffron, honey, apricot oil, lemon distillates,
cucumber and rose. The formulation protects the skin form the darkening effects of the sun. It
also nourishes the skin keeping it supple and smooth. Fair One has been developed after years
of extensive research and is specially designed to address the need for a naturally fair and
radiant skin. Natural ingredients have been expertly blended to perfection, using the latest
techniques. The cream answers the cosmetic needs of the modem woman, who has less time,
but aspires to look and feel good about herself.

Technically superior and 100 per cent safe, Fair One removes tan, counteracts sun damage and
prevents moisture depletion. It not only de-pigments but also nourishes and restores damaged
skin cells. It ensures long-term benefits by sustaining and maintaining a healthy, flawless skin.

Fair One is available at cosmetic retail counters all over India. Packaged in an easy-to-use tube, it
is priced at Rs 56 for 50 gm and Rs. 29 for 25 gm.

HEAD AND SHOULDERS

In 1997 Procter & Gamble Home Products launches Head & Shoulders shampoo.

Head & Shoulders is the world’s No. 1 Anti-dandruff shampoo and now has become a part of
Indian homes as well. This best-ever anti-dandruff shampoo has an improved formula, which
offers the fine combination of anti-dandruff efficacy and hair conditioning. What makes the new
Head & Shoulders its best so far is its break-through formula which covers the scalp more
effectively to remove even the tiniest flake of dandruff, while the new conditioning property keeps
hair looking beautiful.

Clinically proven, new Head & Shoulders not only washes dandruff flakes but also helps eliminate
P.Ovale; a microscopic fungus associated with the cause of dandruff and stops the flakes before
they even start again.

Head & Shoulders now comes in a new pack-design and logo in six variants:

• Head & Shoulders Smooth & Silky: Makes hair smoother and silkier
• Head & Shoulders Refreshing Menthol: Removes scalp itch and provides cool sensation
• Head & Shoulders Clean and Balanced: Provides the right balance of cleaning and
conditioning
• Head & Shoulders Silky Black: Formula with Black Sesame and Walnut Extract nourishes
your hair and scalp from within to make black hair look silky.
• Head & Shoulders Naturally Clean: For cleaning up oil, dirt and grime on the scalp. H&S
Naturally Clean transforms unhealthy, sticky hair into healthy, dandruff free and naturally
clean hair. Currently sold only in South and East India.
• Head & Shoulders Nourishing Aloe Vera (Launched By Preity Zinta) for Dandruff-Free,
Beautifully Growing Hair

Head & Shoulders is available in three different pack sizes - 200 ml, 100 ml and 7.5 ml sachets.

In January 2003, Procter & Gamble Home Products Limited reduced the prices of Pantene and
Head & Shoulders 7.5ml sachets from Rs. 4/- to Rs. 3/-, with no change in its superior product-
quality or packaging, improving affordability to a large number of Indian consumers.

In August 2004, Procter & Gamble Home Products Limited signed Preity Zinta – Bollywood's #1
Actress, as Brand Ambassador for its Head & Shoulders anti-dandruff shampoo that gives 100%
dandruff-free soft beautiful hair.

Our Expert: The Derm

The Root Cause
The condition of your scalp is affected by things like stress, hormonal imbalances and diet. Just
as your facial complexion is affected by changes within your body, so, too, is your scalp. The
condition of your scalp can be one external measure of your overall health.

Persistent Scalp Care Is Best

Bad news: Dandruff is a chronic condition, which means it can come back if left unchecked.
Good news: A regular daily hair care regimen that includes a shampoo with an effective anti-
dandruff ingredient can get rid of 100% of visible flakes and help keep new ones from forming.

Head & Shoulders® is not just about unbelievable dandruff protection. Here are some ways you
can ensure that your dandruff-free* hair is beautiful hair.
Touchably Soft

Low humidity, long, hot showers and heaters set to high can all dry out your hair. But here are
several things you can do to keep your hair soft and free from dryness:

• Drinking eight or more glasses of water a day is one of the best ways to hydrate your scalp
and skin.
• The moisturizing ingredients in Head & Shoulders shampoos and conditioners work to keep
hair looking and feeling luxuriantly soft.

Smooth & Silky

Try these tips for hair that looks smooth and silky:

• Blow dry your hair with a large paddle brush.

• Use Head & Shoulders Smooth & Silky 2 in 1 Shampoo. It cleans and conditions your hair
from root to tip to calm frizz – smoothing each strand and leaving your hair shiny.
 PANTENE

In 1993, Procter & Gamble Home Products is incorporated as a 100% subsidiary of The Procter &
Gamble Company, USA.

In 1995, Procter & Gamble Home Products enters the Haircare Category with the launch of
Pantene Pro-V.

WHY PANTENE?
PANTENE'S 10 WAYS TO BETTER HAIRCARE

• Know your hair type: Normal hair looks strong and healthy, dry hair tangles easily and is
inelastic, coarse and very prone to damage, oily hair is greasy, limp and tends to be on
the finer side. Mixed condition hair is characterized by dry hair coupled with an oily scalp.
There is a Pantene shampoo for every kind of hair.
• Shampoo your hair: Shampooing your hair cleans your hair, restores vitality and helps to
make it shine. Frequent shampooing is good for your hair. It is a myth, completely untrue
that regular shampooing damages the hair.
• Use a shampoo and conditioner like Pantene: Pantene is a shampoo and conditioner in
one. A conditioner smoothens uneven cuticles, leaving your hair smooth and silky. A
shampoo and conditioner is just what your hair needs. Such a shampoo contains positive
and negative molecules. The negative ones clean your hair while the positive ones stay
behind to protect your hair.
• Dry your hair carefully: Begin with removing as much moisture as possible by patting it
dry with a towel. Never rub vigorously. If you use a blow dryer, keep it at least 10 cm
away from your hair.
• Finally when combing your hair, it's better to use a wide-toothed comb.
Brush for that shine: Brushing de-tangles hair and makes it look great. It massages your
scalp and spreads the natural oils over the hair shafts, accelerating the growth of new
hair. The best way to brush is to start with the hair ends. Detangle them and then brush
through the hair. Always be gentle to avoid extra stress on hair.
• Feed your hair: If your hair is not its usual shiny self, just alter your diet. And eat your way
to healthy hair!!

OTHER INFORMATION
In September 2001, Procter & Gamble Home Products launched New Pantene Pro-V range of
five shampoos in India which gave consumers the look they want Smooth & Silky for straighter
hair, Volume & Fullness for thicker hair, Balanced Clean for shinier hair, Lively Clean for livelier
hair and Anti-Dandruff for dandruff-free hair.

In August 2002, Pantene unveiled the launch of the Shine Morning to Night campaign that helps
consumers get long lasting hair shine with regular use of Pantene. The Shine Morning to Night
campaign had two exciting components to it The MTV Shine Your Soul contest where one could
win diamonds worth Rs.12.5 lacs and the launch of the Pantene Shine Booths across the country
to help achieve the shine that lasts from morning to night.
During the same period, Pantene also hosted Hair Asia Pacific 2002 the biggest Hair Cutting &
Styling event in Kuala Lumpur, Malaysia. Pantene Hair Asia Pacific is a prestigious international
hair cutting & styling contest attracting expert hairdressers and beauty care advisors from more
than 13 Asia Pacific countries.

In January 2003, Procter & Gamble Home Products Limited reduced the prices of Pantene 7.5ml
sachets from Rs. 4/- to Rs. 3/-, with no change in its superior product-quality or packaging,
improving affordability to a large number of Indian consumers.

In July 2003, Procter & Gamble Home Products Limited launched Pantene Long Black, the
ultimate solution for achieving the Long and Black hair look, and Head & Shoulders Silky Black -
the only shampoo in India to offer the dual benefits of 100% dandruff-free as well as silky black
hair.

PANTENES NEW RANGE

New Pantene Range with Amino Pro-V Complex makes Hair Ten Times Stronger against
damage. Deposits back essential Aminos that hair loses due to daily weathering.

The new Pantene range has five variants -- • Pantene Smooth & Silky, Pantene Hair Fall Control,
Pantene Long Black, Pantene Lively Clean and Pantene Anti-dandruff .

The New Pantene has also been priced at Rs. 98 for a 200ml. bottle, Rs. 51 for a 100ml. bottle,
and Rs. 3 for a 7.5ml sachet.

BRAND AMBASSADOR
22 September, 2005: Former Miss Universe and Bollywood siren Lara Dutta is the new face of
Pantene - she has just been named Brand Ambassador for it.

The new Pantene, with the “Goodness of Coconut Oil,” was launched by Lara Dutta . The New
Pantene shampoo comes with Micro-vita technology, providing “smoother, shinier and strong hair”
similar to coconut oil.

"I am delighted to be the face of the World’s No. 1 Shampoo, and launch New Pantene,” Lara
Dutta said.

Lara Dutta joins Pantene’s illustrious celebrity brand ambassadors like as Katrina Kaif, Bipasha
Basu, Shilpa Shetty, Sonali Bendre and Simone Singh, a press release said.

Lara will communicate the benefit of New Pantene with the Goodness of Coconut Oil which gives
strong hair, he said.

MARKET SHARE
According to an ORG-Marg report, HLL’s shampoo sales in terms of value slipped from 71.1 per
cent in September-November 1999 to 65.3 per cent in June-August 2001. Volumes, too, dropped
from 69.2 per cent to 60.6 per cent in the same period.

Pantene is growing at a compounded growth rate of 7 to 8 per cent in AP while the entire range of
P&G products, grew by around 34 per cent last year

COMPETITORS
There are many competitors of Pantene such as 1) sunsilk, 2) chik shampoo, 3) clinic all clear, 4)
clinic plus & many more….

AWARD
Pantene wins packaging award (February '1, 2002, HBL)

Procter and Gamble's New Pantene Pro-V Shampoo has won the Global Packaging Design
Award at the London International Advertising Festival. "The new design visually captures the
superior performance which Pantene offers to its consumers through the sophisticated new
colours for each `end-look', colour rings on the closure, the Pro-V embossing on the lid and an
icon specific to each `end-look' at the base of the bottle," remarks Mr Anthony Rose, Senior
Manager, Public Affairs, Procter & Gamble.

The New Pantene Pro-V has five variants which claim to give five distinct `end-looks' -
Smooth&Silky, Volume and Fullness, Balanced Clean, Lively Clean and Anti-Dandruff. These
variants were reportedly launched after an international research study by Pantene indicated that
consumers were dissatisfied with the shampoo they had because they misdiagnosed the hair
type and subsequently chose the wrong shampoo variant for use.
 • About 95% of the human body is covered by hair.
• There are about 110,000 hairs on a person's head.
• We lose about 50 - 100 hairs daily. This is a natural and normal process.

Information on dandruff :

• Is not a skin disease.

• Results when there are higher than normal levels of fungus in the scalp
• Manifests first by "flakes" (i.e., clumps of cells) that fall off the scalp and are
visible to the naked eye (as opposed to single cells that are shed from the
scalp as a normal physiological process).
• Does not happen only to men.
• Should be treated even when it doesn't happen (or becomes visible).
• Not common in the very young or the elderly.
• Considered as the biggest problem in Asian men and women.

Taking Care :

• Have a balanced diet containing Vitamins (A, B and E), proteins, iron and
minerals.
• Exercise and rest in moderation.
• Select the Right Shampoo : Your shampoo needs not only to clean, but also
protect the entire strand of hair from damage. Hence, always use shampoos
(like H&S) that contain
(a) cleansing ingredients that are mild to the hair
(b) conditioning ingredients which in turn
· protect the hair from daily combing and brushing
· protect coloured / permed hair
· protect rough / dry hair
(c) Scalp-balancing dandruff-control ingredients (prevent and control dandruff).
• Wash Your Hair Frequently. Frequent shampooing can control dandruff by :
(a) removing the constant build-up of pollution, dust, oils, etc.
(b) keeping the scalp clean
(c) replenishing the damaged protective coating on the hair strands.

• Wash, Dry and Then Comb your Hair the Right Way :

strategies - product variations, pricing strategies, markets present, distribution channels, cost
efficiencies are some of the aspects.