ACKNOWLEDGEMENT We would like to thank our Professor K.

C Prakash for giving us the opportunity t o enhance our knowledge on the subject. We are also grateful for his support and encouragement all throughout.We also thank our peer members who have enriched our knowledge with i mmense discussions on the topic. Sl.No. Topic Pg. No. 1. Company Profile 2 2. Detailed description of the company 8 3. Industry Profile 20 4. 4 P s Analysis 38 5. Competetive Anaysis 47 6 Competitive Advantage 52 1| Page

7. Promotion Strategies 54 8. Pricing Strategies 57 9. Market Analysis 60 10. Market Strategies 61 11. Recommendations 63 2| Page

COMPANY PROFILE Three billion times a day, P&G brands touch the lives . This is the company which is rooted in the principles pectfor the individual and doing what's right for the g thecompany on various parameters let s first have a of people around the world of personal integrity, res long-term. Before analyzin view of the company profile.

Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500, American multinationalcor poration based in Cincinnati, Ohio, that manufactures a wide range of consumergo ods. It is a brand behemoth. The world's number one maker of household products courts market share and billion-dollar brands. As of 2008, P&G is the 6 thlargest corporation in the world by market capitalization and 14th largest USc ompany by profit. It is 10th in Fortune's Most Admired Companies list (as of 200 7). P&G is credited with many business innovations including brand management, theso ap opera, and "Connect & Develop" innovation. According to the Nielsen Company, in 2007 P&G spent more on U.S. advertisingthan any other company; the $2.62 billion it spent is almost twice as much asGeneral Motors, the next company on the Nielsen list. P&G was named 2008Advertiser of t he Year by Cannes International Advertising Festival. est company inthe world in Fast Moving Consumer Goods (FMCG) industry. 3| Page

It manufactures nearly 300 brands (such as: Ariel, Blend-a-Med, Bonux, Head&Shoulders, Pampers, Always, Fairy, Gillette, Wella) to nearly five billionc ustomers, competing in 160 marketplaces. More than 130 000 employees in morethan 80 countries worldwide work everyday to provide products of superior qualityand value to the world's consumers. As the company s global involvement, commitment and operations have grown, it has continually analyzed and adaptedthe way it does business. It is a company whose actions reflect its ethics and whose people live their val ues, As a build from within organization, it sees over 90% of our people start at anent ry level and then progress and prosper throughout the organization. This meansit invests heavily in talent, through training and development opportunities. HISTORY William Procter, a candlemaker, and James Gamble, a soapmaker, formed distinctco mpanies. The two men, immigrants from England and Ireland respectively whohad se ttled earlier in Cincinnati, might never have met, had they not marriedsisters, Olivia and Elizabeth Norris.[6] 4| Page

Since both their industries used similar resources, the Panic of 1837 caused int ense competition between the two and as a result it led to discord with the family. Alexander Norris, their father-in law decided to call a meeting where he convinc edhis new sons-in-law to become business partners. On October 31, 1837, as a res ult of the suggestion, a new enterprise was born: Procter & Gamble. The company prospered during the nineteenth century. In 1859, sales reached onem illion dollars. By this point, approximately eighty employees worked for Procter & Gamble. During the American Civil War, the company won contracts to supply the Union Army with soap and candles. In addition to the increased profits experienc edduring the war, the military contracts introduced soldiers from all over the c ountryto Procter & Gamble's products. Once the war was over and the men returned home, they continued to purchase the company's products. In the 1880s, Procter & Gamble began to market a new product, an inexpensivesoap that floats in water. The company called the soap Ivory. In the decades that followed, Procter & Gamble continued to grow and change. The company becameknown for its progressive work environment in the late nineteenth century. WilliamArn ett Procter, William Procter's grandson, established a profit-sharing program fo r the company's workforce in 1887. He hoped that by giving the workers a stake in thecompany, they would be less inclined to go on strike. Over time, the company began to focus most of its attention on soap, producingmo re than thirty different types by the 1890s. As electricity became more and more common, there was less need for the candles that Procter & Gamble had made since its inception. Ultimately, the company chose to stop manufacturing candles in1920. In the early twentieth century, Procter & Gamble continued to grow. The companyb egan to build factories in other locations in the United States, because the dem andfor products had outgrown the capacity of the Cincinnati facilities. The comp any'sleaders began to diversify its products as well and, in 1911, began produci ng Crisco, a shortening made of vegetable oils rather than animal fats. In the early 1900s, Procter & Gamble also became known for its research laboratories, where scientis ts worked to create new products. Company leadership also pioneered in the area ofm arket research, investigating consumer needs and product appeal. As radiobecame more popular in the 1920s and 1930s, the company sponsored a number ofradio prog rams. As a result, these shows often became commonly known as "soapoperas". 5| Page

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Throughout the twentieth century, Procter & Gamble continued to prosper. Thecomp any moved into other countries, both in terms of manufacturing and productsales, becoming an international corporation with its 1930 acquisition of theNewcastle upon Tyne-based Thomas Hedley Co. Procter & Gamble maintained astrong link to t he North East of England after this acquisition. In addition, numerousnew produc ts and brand names were introduced over time, and Procter & Gamblebegan branchin g out into new areas. The company introduced "Tide" laundrydetergent in 1946 and "Prell" shampoo in 1950. In 1955, Procter & Gamble beganselling the first tooth paste to contain fluoride, known as "Crest". Branching out onceagain in 1957, th e company purchased Charmin Paper Mills and beganmanufacturing toilet paper and other paper products. Once again focusing onlaundry, Procter & Gamble began maki ng "Downy" fabric softener in 1960 and"Bounce" fabric softener sheets in 1972. O ne of the most revolutionary products tocome out on the market was the company's "Pampers", first test-marketed in 1961. Prior to this point disposable diapers were not popular, although Johnson & John sonhad developed a product called "Chux". Babies always wore cloth diapers, whic hwere leaky and labor intensive to wash. Pampers simplified the diapering proces s. Over the second half of the twentieth century, Procter & Gamble acquired a numbe rof other companies that diversified its product line and increased profitssigni ficantly. These acquisitions included Folgers Coffee, Norwich EatonPharmaceutica ls, Richardson-Vicks, Noxell, Shulton's Old Spice, Max Factor, and theIams Compa ny, among others. In 1994, the company made headlines for big lossesresulting fr om leveraged positions in interest rate derivatives, and subsequentlysued Banker s Trust for fraud; this placed their management in the unusual positionof testif ying in court that they had entered into transactions they were not capableof un derstanding. In 1996, Procter & Gamble again made headlines when the Foodand Dru g Administration approved a new product developed by the company, Olestra. Also known by its brand name Olean, Olestra is a substitute for fat in cooking potato chips and other snacks that during its development stages is know nto have caused anal leakage and gastro-intestinal difficulties in humans. Procter & Gamble has expanded dramatically throughout its history, but itsheadqu arters still remains in Cincinnati. {Source, Ohio History Central.} In January 2005 P&G announced an acquisition of Gillette, forming the largestcon sumer goods company and placing the Anglo-Dutch Unilever into second place. This added brands such as Gillette razors, Duracell, Braun, and Oral-B to their stable. The acquisition was approved by the European Union and the Federal Trade Commission, with conditions to a spinoff of certain overlapping brands. P&G hasa greed to sell its SpinBrush battery-operated electric toothbrush business to Chu rch& Dwight. It also divested Gillette's oral-care toothpaste line, Rembrandt. T hedeodorant brands Right Guard, Soft & Dri, and Dry Idea were sold to DialCorpor ation.[7] The companies officially merged October 1, 2005. 7| Page

P&G's dominance in many categories of consumer products makes its brandmanagemen t decisions worthy of study. [8] For example, P&G's corporate strategistsmust ac count for the likelihood of one of their products cannibalizing the sales ofanot her.[9] PURPOSE AND MISSION: The company has its mission statement as follows-: We will provide branded products and services of superior quality mprove the lives of the world's consumers, now and for generations result, consumers will reward us with leadership sales, profit and n, allowing our people, our shareholders and the communities in which rk to prosper. Values: 8| Page and value thati to come. As a value creatio we live andwo

P&G is its people and the values by which we live. P&G attracts and recruits the finest people in the world. It has built the organ izationfrom within, promoting and rewarding people without regard to any differe nceunrelated to performance. It acts on the conviction that the men and women of Procter & Gamble always will be their most important assets. Integrity Proctor & Gamble .always tries to do the right thing. .is honest and straightforward with customers and employees .upholds the values and principles of P&G in every action and decision. .is data-based and intellectually honest in advocating proposals, includingrecog nizing risks. Passion for Winning Proctor & Gamble .Is determined to be the best at doing what matters most. .has a healthy dissatisfaction with the status quo. .Has a compelling desire to improve and to win in the marketplace. Leadership .The employees are all leaders in our area of responsibility, with a deepcommitm ent to delivering leadership results. .The company has a clear vision of where it is going. 9| Page

.The focus is on achieving leadership objectives and strategies. .Capabilties are developed to deliver the strategies and eliminate organizationa lbarriers. Trust .There is mutual respect among the colleagues, customers and consumers, .Employees have confidence in each other's capabilities andintentions. .The company believes that people work best when there is afoundation of trust. Ownership .The organization accepts personal accountability to meet the business needs, improve the systems and help others improve their effectiveness. 10 | Page

DETAILED DESCRIPTION OF COMPANY P&G s business is focused on providing branded consumer goods products. Theirgoal is to provide products of superior quality and value to improve the lives of the world s consumers. They believe thiswill result in leadership sales, profits and v aluecreation, allowing employees, shareholders and the communities in which they operate to prosper. Their products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores and drugstore s. They continue to expand their presence in other channels includingdepartment stores, salons and high frequency stores, the neighborhood storeswhich serve many c onsumers in developing markets. They have on-the-groundoperations in approximate ly 80 countries. They market environment is highly competitive, with global, regional and localco mpetitors. In many of the markets and industry segments in which they sell their products, they compete against other branded products as well as retailers privat elabel brands. Additionally, many of the product segments in which they compete are differentiated by price (refer redto as premium, mid-tier and value-tier products). Generally speaking, they compete with premium and mid-tier products and are well positioned in the industry segments and markets in which they operate oftenholdi ng a leadership or significant market share position. Organizational Structure Our organizational structure is comprised of three Global Business Units (GBUs) anda Global Operations group. The Global Operations group consists of the Market Development Organization (MDO) and Global Business Services (GBS). Global Bussines Units Our three GBUs are Beauty, Health and Well-Being, and Household Care. Theprimary responsibility of the GBUs is to develop the overall strategy for our brands. They identify common consumer needs, develop new product innovations andupgrades , and build our brands through effective commercial innovations, marketing and sales. Under U.S. GAAP, the business units comprising the GBUs are aggregated into sixr eportable segments: Beauty; Grooming; Health Care; Snacks, Coffee and Pet Care; Fabric Care and Home Care; and BabyCare and Family Care. The following providesa dditional detail on our GBUs and reportable segments and the key product andbran d composition within each. 11 | Page

Management s Discussion and Analysis Effective July 1, 2007, the company's operations are categorized into 3 "GlobalB usiness Units" with each Global Business Unit divided into "Business Segments," according to the company's June 2007 earnings release. Beauty Care Beauty segment Grooming segment Household Care Baby Care and Family Care segment Fabric Care and Home Care segment Health & Well-Being Health Care Snacks, Coffee and Pet Care 12 | Page

Beauty: We are a global market leader in beauty and compete in markets which comprise approximately $230 billion in global retailsales. Most of the beauty markets in which we compete are highlyfragmented with a large number of global and local competitors.They are the global market leader in hair care with over 20% of theglobal market share. In skin care, we compete primarily with theOlay brand, which is the top facial skin care retail brand in the world.They are also one of the global market leaders in prestige fragrances,primarily behind the Gucci, Hugo Bo ss and Dolce & Gabbanafragrance brands. 13 | Page

Grooming: This segment consists of blades and razors, face and shave preparation products (such as shaving cream), electric hair removal devices and small household appliances. They hold leadership market share in the manual blades and razors market on a global basis and in almost all of the geographies in which they compete. 14 | Page

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behind Mach3, Fusion, Venus and the Gillette franchise. Their electric hair remo val devices and small home appliances are sold under the Braun brand in a number ofm arkets around the world, where we compete against both global and regionalcompet itors. Our primary focus in this area is in electric hair removal devices, sucha s electric razors and epilators, where we hold over 30% and over 50% of the male and female markets, respectively. Health and Well-Being Health Care: They compete in oral care, feminine care, and pharmaceuticals andpe rsonal health. In oral care, there are several global competitors in the market, and theyhave the number two market share position at approximately 20% of theglo bal market. They are the global market leader in the feminine care category with about one-third of the global market share. In pharmaceuticals and personal heal th, we have approximately one-third of the global bisphosphonates market for thetrea tment of osteoporosis under the Actonel brand. They are the market leader innonp rescription heartburn medications and in respiratory treatments behindPrilosec O TC and Vicks, respectively.Snacks, Coffee and Pet Care: In snacks, wecompete aga inst both global and local competitors and have a global market shareof approxim ately 10% in the potato chips market behind our Pringles brand. Theircoffee busi ness competes almost solely in North America,where we hold aleadership position with approximately one-third of the U.S. market, primarilybehind our Folgers bra nd. They have announced plans to separate our coffeebusiness and merge it with T he J. M. Smucker Company in a transaction that isexpected to close in the second quarter of fiscal 2009. In pet care, they compete inseveral markets around the globe in the premium pet care segment,behind theIams and Eukanuba brands. The va st majority of their pet care business is in NorthAmerica, where they have about a 10% shareof the market. Household Care Fabric Care and Home Care: This segment is comprised of a variety of fabric care products, including laundry cleaning products and fabric conditioners; home care products, including dish care, surface cleaners and air fresheners; and batterie s. Infabric care, they generally have the number one or number two share positio n inthe markets in which we compete and are the global market leader, withapprox imately one-third of the global market share. Their global home care marketshare is about 20% across the categories in which they compete. In batteries, wecompe te primarily behind the Duracell brand and have over 40% of the globalalkaline b attery market share.Baby Care and Family Care: In baby care, theycompete primari ly in diapers, training pants and baby wipes, with over one-third ofthe global m arket share. They are the number one or number two baby carecompetitor in most o f the key markets in which they compete,primarily behindPampers, the Company s lar gest brand, with annual net sales of approximately $8billion. 16 | Page

Global Operations Market Development Organization MDO is responsible for developing go-to-market plans at the local level. The MDO includes dedicated retail customer, trade channel and country-specific teams. It isorganized along seven geographic regions: North America, Western Europe, Northeast Asia, Central & Eastern Europe/MiddleEa st/Africa, Latin America, ASEAN/Australia/India and Greater China. GBS provides technology, processes and standard data tools to enablethe GBUs and the MDO to better understand the business and better serve consumers and customers. The GBS organization is responsible for providing world-class solutio nsat a low cost and with minimal capital investment. Strategic Focus P&G is focused on strategies that it believes are right for the long-term health of theCompany and will increase returns for shareholders. The Company s annual financial targets are: Organic sales growth of 4% to 6%. This is comprised of: 3% to 5% pre-Gillette organic sales growth target, plus 1% of growth acceleration behind revenue synergies associated with the Gillette acquisition. Diluted net earnings per share (EPS) growth of 10% or better,excluding the netim pact of Gillette dilution. Free cash flow productivity of 90% or greater (defined as the ratio of operating cash flow less capital expenditures to net earnings). Capital spending at or below 4% of net sales annually. In order to achieve these targets, we focus on our core strengths of consumerund erstanding, branding, innovation, go-to-market capability and global scale and scope against the following growth areas: Grow our leading brands in our biggest markets and with our winning customers. 17 | Page

Shift our portfolio mix to faster-growing businesses with higher gross margins t hatare less asset-intensive. Grow disproportionately in developing markets and with value conscious consumers. To sustain consistent and reliable sales and earnings growth in line with ourfin ancial targets, we have identified four key enablers: Building a diversified and balanced portfolio of businesses, brands andgeographi es to deliver consistent, reliable top-and bottom-line growth. Theirportfolio of businesses provides a unique combination of stability, scale and growth. They compete primarily in 22 global product categories and are a market leader i nover two-thirds of these categories. In addition, their portfolio includes 24 brands that generate over $1 billion in annual sales and 20 brands that gener atebetween $500 million and $1 billion in annual sales. Combined, these 44 brand s account for 85% or more of their sales and profits. These brands are platforms f orfuture innovations that will drive sales growth, expand categories for retailc ustomers and differentiate brands in the minds of consumers. Their geographicpor tfolio includes a healthy balance of developed and developing marketbusinesses. Approximately 40% of sales are generated from the United States, ourhome market, and developing markets account for approximately 30% of sales. Investing in innovation and core P&G capabilities and strengths to enable us tor each more of the world s consumers with quality, affordable products. This include sexpanding our presence in markets and reaching more consumers where we areunder represented,including value-conscious consumers. Leveraging the Company s organizational structure to drive clear focus, accountability and improved go-to-market capability. The GBU organizations leverage their consumer understanding to develop theoverall strategy for our brands. They identify common consumer needs, developnew product s and build our brandsthrough effective marketing innovations andproduct upgrade s. The GBU is focused on winning the second moment of truth when the consumer uses the product and evaluates how well the product meets hiso r her expectations. The MDO develops go-to-market plans at the local level, leveraging theirunderstand ing of the local consumers and customers. 18 | Page

The MDO is focused on winning the first moment of truth when a consumer stands in front of the shelf and chooses a product from amongman y competitive offerings. Global Business Services operates as the back office for the GBUs and theMDO, provi ding cost-effective world-class technology, processes and standard datatools to better understand the business and better serve consumers and customers. GBS personnel, or highly efficient and effective third-party partners, provide t heseservices. Focusing on cost improvement and cash productivity. Each organization isevaluate d on its ability to support the Company s financial goals and increase totalshareh older return. This includes an evaluation of net sales growth, earningsgrowth, p rofit margin expansion and cash productivity. Our organizations areevaluated on their ability to generate cash, for example, by increasing productivity,Improvin g capacity utilization, meeting capital spending targets and reducingworking cap ital required to run the business. 19 | Page

RESULTS OF OPERATIONS Net Sales Net sales increased 9% in 2008 to $83.5 billion behind 4% unit volume growth, af avorable 5% foreign exchange impact and a positive 1% pricing impact. Favorablef oreign exchange resulted primarily from the strengthening of European and otherc urrencies relative to the U.S. dollar. Price increases were taken across a numbe r of our businesses primarily to offset higher commodity costs. Mix had a negative 1% impact on net sales primarily due to disproportionate growth in developing regio ns, where selling prices are below the Company average. Each reportable segmentposte d year-on-year volume growth, with mid-single-digit growth in Fabric Care andHom e Care, Baby Care and Family Care, Grooming and Health Care and low-singledigit growth in Beauty and Snacks, Coffee and Pet Care. Each geographic regionposted y ear-on-year volume growth except Western Europe, which was down lowsingle digits due to the impact of divestitures.Excluding the impact of acquisit ionsand divestitures, every geographic region delivered year-on-year volume grow th. Volume grew primarily behind initiative activity on key brands and continueddoub le-digit growth in developing regions. Organic sales increased 5% behindorganic volume growth of 5%, which excludes the impact of acquisitions anddivestitures. Each reportable segment posted year-on-yearorganic sales andorganic volume growt h. Net sales increased 12% in 2007 to $76.5 billion. Sales were up behind 9% unitvo lume growth, including the impact of an extra three months of Gillette results i n2007. Organic volume increased 5%. Developing regions continued to lead thegrow th with double-digit increases for the year. All reportable segments increasedor ganic volume for the year except the Snacks, Coffee and Pet Care segment. Higher pricing, primarily in coffee and Health Care, contributed 1% to sales gro wth. Product mix had no net impact on sales as a more premium product mix driven byth e additional three months of Gillette results in 2007 was offset by the negative mix impact of disproportionate growth in developing markets, where the averageun it sales price is lower than the Company average. Favorable foreign exchangecont ributed 2% to net sales growth. Organic sales increased 5% versus 2006 witheach reportable segment posting year-on-year growth. Management and staff 20 | Page

Current members of the board of directors of Procter & Gamble are: Alan Lafley, Clayton Daley Jr., Charles Lee, Ralph Snyderman M.D., Margaret Whitman, W. J. McNerney Jr., Lynn Martin, Johnathan Rodgers, Ernesto Zedillo, Scott Cook, Rajat Gupta, Patricia Woertz, and Kenneth Chenault. In 2007, the P&G's Canadian division was named one of Canada's Top 100 Employers , as published in Maclean's magazine, the only consumer products company to receiv e this honor. 21 | Page

Procter & Gamble brands 24 of P&G's brands have more than a billion dollars in net annual sales and anot her 18 have sales between $500 million and $1 billion. Billion dollar brands Always is a brand of feminine hygiene products, including maxi pads, pantiliners (sometimes called Alldays), and feminine wipes. Ariel is a brand of washing powder/liquid, available in numerous forms and scents. Actonel is brand of Osteoporosis drug Risedronate co marketed by SanofiAventis. Bounty is a brand of paper towel sold in the United States, Canada and the United Kingdom Braun is a small-appliances manufacturer specializing in electric razors, coffeemakers, toasters, and blenders. Crest is a brand of toothpaste. Dawn is a brand of dishwashing detergent. Downy/Lenor is a brand of fabric softener. Duracell is a brand of batteries and flashlights. Fusion is a brand of mens wet shave razors, and is the quickest P&G brand tohave reached $1 billion in annual sales Gain is a brand of laundry detergent and fabric softeners. Gillette is a safety razor manufacturer. Head & Shoulders is a brand of shampoo. High Endurance is a deodorant by Old Spice Ivory is a soap Nice 'n Easy is a hair color product. Olay is a brand of women's skin care products. Oral-B is a brand of toothbrush. 22 | Page

 Pampers is a brand of disposable diapers Pantene is a brand of haircare. Prilosec OTC is a brand of heartburn medicine co-marketed by AstraZeneca. Pringles is a famous brand of potato chips. Puffs is a type of facial tissue. Secret is a deodorant Tide is a brand of laundry detergent. Vicks is a brand of over-the-counter medicines Wella is a brand of hair care (shampoo, conditioner, styling, hair color). Whisper is a brand of pantyliners Manufacturing Procter & Gamble manufactures its products across the globe. Manufacturingoperat ions are based in the following geographies US Canada Latin America Europe China (31 wholly-owned factories) and other parts of Asia Africa P&G LOGO The company received unwanted media publicity in the 1980s when an urban legend spread that their previous corporate logo was a Satanic symbol. The accusation is based on a particular passage in the Bible, specifically Revelation 12:1, which states: "And there app eared a great wonder in heaven; a woman clothed with the sun, and the moon under her feet, and upon her head a crown of twelve stars." Since P&G's logo consists of a man's face on a mo on surrounded by thirteen stars, some have claimed that the logo is a mockery of the heavenly symbol alluded 23 | Page

to in the aforementioned verse, and hence the logo is Satanic. Where the beard m eets the surrounding circle, a mirror image of the number 666 can be seen when viewed fro m inside the logo, and this has been interpreted as the reflected number of the beast, again linked to Satanism. Also, there are two horns like a lamb that are said to represent the false proph et. These interpretations have been denied by company officials, and no evidence linking t he company to the Church of Satan or any other occult organization has ever been presented. Th e company has sued and attempted to sue a number of companies like Amway and individuals who h ave spread rumors of this type, in some instances because they sell competitive products an d have spread such rumors for the purpose of tarnishing P&G's image to increase sales of their own brands. As stated in one of the resulting lawsuits, the logo originated in 1851 as the s ymbol for their Star brand of candles. It was later altered to show the man in the moon overlooking 1 3 stars, which were meant to commemorate the original 13 colonies.[17] An example of one such rumor was the fabricated account that the president of P& G had appeared on a Saturday edition of The Phil Donahue Show. He declared that he was a Satanist and that the company's logo was Satanic. This rumor circulated despite the facts that the company's president has never made such a statement in public, had never appeare d on Phil Donahue's show, and that Donahue's show never ran on Saturdays. Later variations of this rumor replaced the Donahue show with Geraldo Rivera's show.[18] However, the continuous media coverage prompted P&G to adopt an entirely new log o consisting of just the letters P&G. In television commercials in China, the form er P&G logo still appears at the end of each commercial, and up until 2004, it appeared at the end of each commercial in Japan. Original Logo 24 | Page

New Logo 25 | Page

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INDUSTRY PROFILE What are Fast Moving Consumer Goods (FMCG)? Products which have a quick turnover, and relatively low cost are known as FastM oving Consumer Goods (FMCG). FMCG products are those that get replaced withina y ear. Examples of FMCG generally include a wide range of frequently purchasedcons umer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware , bulbs, batteries, paper products, and plastic goods. FMCG may also includepharma ceuticals, consumer electronics, packaged food products, soft drinks, tissuepape r, and chocolate bars. A subset of FMCGs are Fast Moving Consumer Electronics which include innovativee lectronic products such as mobile phones, MP3 players, digital cameras, GPSSyste ms and Laptops. These are replaced more frequently than other electronicproducts . White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industrie sin India. According to the AC Nielsen India study, the industry grew 5.3% in va luebetween 2004 and 2005. Indian FMCG Sector The Indian FMCG sector is the fourth largest in the economy and has a market siz eof US$13.1 billion. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are thecharacteristic s of this sector. FMCG in India has a strong and competitive MNCpresence across the entire value chain. It has been predicted that the FMCG marketwill reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promisingmark et for FMCG, and give brand makers the opportunity to convert them tobranded pro ducts. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetrat ionlevel, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. 27 | Page

The big firms are growing bigger and small-time companies are catching up as wel l. According to the study conducted by AC Nielsen, 62 of the top 100 brands areowne d by MNCs, and the balance by Indian companies. Fifteen companies ownthese 62 br ands, and 27 of these are owned by Hindustan Lever. Pepsi is at numberthree foll owed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cig arettecompanies have always shied away from revealing. Personal care, cigarettes , andsoft drinks are the three biggest categories in FMCG. Between them, they ac countfor 35 of the top 100 brands. Exhibit I THE TOP 10 COMPANIES IN FMCG SECTOR S. NO. Companies 1. Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company) 3. Nestl India 4. GCMMF (AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury India 8. Britannia Industries 9. Procter & Gamble Hygieneand Health Care 10. Marico Industries 28 | Page

Source: Naukrihub.com The companies mentioned in Exhibit I, are the leaders in their respective sector s. The personal care category has the largest number of brands, i.e., 21, inclusive ofLux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal carecateg ory. ITC alone accounts for 60% volume market share and 70% by value of allfilte r cigarettes in India. The foods category in FMCG is gaining popularity with a swing of launches by HLL , ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,63 7crore. Nestle and Amul slug it out in the powders segment. The food category ha salso seen innovations like softies in ice creams, chapattis by HLL, ready to ea t riceby HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems tohave faster development than the stagnating personal care category. Amul, Indi a'slargest foods company, has a good presence in the food category with its icecreams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 1 00FMCG brands, dominates the biscuits category and has launched a series ofprodu cts at various prices. In the household care category (like mosquito repellents), Godrej and Reckitt ar etwo players. Goodknight from Godrej, is worth above Rs 217 crore, followed byRe ckitt's Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsi lkmake it to the top 100, although P&G's Head and Shoulders and Pantene are also trying hard to be positioned on top. Clinic is nearly double the size of Sunsilk . Dabur is among the top five FMCG companies in India and is a herbal specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur hasbrands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. AsianPa ints is enjoying a formidable presence in the Indian sub-continent, SoutheastAsi a, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Pai ntsis India's largest paint company, with a turnover of Rs.22.6 billion (around USD 513million). Forbes Global magazine, USA, ranked Asian Paints among the 200 BestSmall Companies in the World Cadbury India is the market leader in the chocolate confectionery market with a7 0% market share and is ranked number two in the total food drinks market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.1 5.6billion (USD 380 Million) Marico is a leading Indian group in consumer produc ts andservices in the Global Beauty and Wellness space. Outlook 29 | Page

There is a huge growth potential for all the FMCG companies as the per capitacon sumption of almost all products in the country is amis amongst the lowest in the world. Again the demand or prospect could be increased further if these companie scan change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for brandedq uality clothes. It's the quality, promotion and innovation of products, which ca ndrive many sectors. The personal care sector of P&G is considered for this project.The Pantene shamp oois taken as a representative of this sector and it will be further analyzed on thevarios parameters. First of all let us have a look at the various competitors of P&G in this sector andthat too in the shampoo product line The Brand that is selected for this analytical report isPantene.We will analyze thevarious competitors of P&G in the personal care segment.Some of them areHindu stan Unilever Ltd, Colgate Palmolive,ITC,Marico Industries,Dabur, For everycompa ny we have discussed only one product from the Hair Care segment in detail. UNILEVER 30 | Page

Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that o wns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever employs nearly 180,000 people[1] and had a worl dwide revenue of almost 40 billion in 2005. Unilever is a dual-listed company consisting of Unilever NV in Rotterdam, Nether lands and Unilever PLC in London, England. This arrangement is similar to that of Reed Elsevier, and that of Royal Dutch Shell prior to their unified structure. Both U nilevercompanies have the same directors and effectively operate as a single bus iness. The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Patrick Cescau is Group Chief Executive, who will retire at the end of 200 8. MrPaul Polman will succeed Patrick Cescau as Group Chief Executive. The compa ny iswidely listed on the world's stock exchanges 31 | Page

History Unilever was created in 1930 by the merger of British soapmaker Lever Brothers and Dutch margarine producer Margarine Unie, a logical merger as palm oil was am ajor raw material for both margarines and soaps and could be imported moreeffici ently in larger quantities. In the 1930s the business of Unilever grew and new ventures were launched inLati n America. In 1972 Unilever purchased A&W Restaurants' Canadian division butsold its shares through a management buyout to former A&W Food Services ofCanada CEO Jeffrey Mooney in July 1995.[4] By 1980 soap and edible fats contributedjust 40 % of profits, compared with an original 90%. In 1984 the company boughtthe brand Brooke Bond (maker of PG Tips tea). In 1987 Unilever strengthened its position in the world skin care market byacqui ring Chesebrough-Ponds, the maker of Rag, Pond's, Aqua-Net, Cutex NailPolish, Pep sodent toothpaste, and Vaseline. In 1989 Unilever bought Calvin KleinCosmetics, Faberg, and Elizabeth Arden, but the latter was later sold (in 2000) toFFI Fragra nces. [5] In 1996 Unilever purchased Helene Curtis Industries, giving the company "apowerf ul new presence in the United States shampoo and deodorant market". [6] The purchase brought Unilever the Suave and Finesse hair-care product brands and Degree deodorant brand. [7] In 2000 the company absorbed the American business Best Foods, strengthening its presence in North America and extending its portfolio of foods brands. In a sing leday in April 2000, it bought, ironically, both Ben & Jerry's, known for its ca lorie-richice creams, and Slim Fast. The company is fully multinational with operating companies and factories on eve rycontinent (except Antarctica) and research laboratories at Colworth and PortSu nlight in England; Vlaardingen in the Netherlands; Trumbull, Connecticut, andEng lewood Cliffs, New Jersey in the United States; Bangalore in India Pakistan; and Shanghai in China.Its Indian arm is known as Hindustan Unilever Ltd. Hindustan Unilever Ltd. Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan LeverLimited , is India's largest consumer products company and was formed in 1933 asLever B rothers India Limited. It is currently headquartered in Mumbai, India and its 41,000 employees are headed by Harish Manwani, the non-executive chairman of the board. HUL is the market leader in Indian products such as tea, soaps, detergent s, as its products have become daily household name in India. The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited. 32 | Page

The company was renamed in late June 2007 "Hindustan Unilever Limited". Introduction . The company focuses on efficient delivery to consumers with an improved supply chain, brand building initiatives and innovation, which has helped the company t osustain its leadership position in the overall FMCG category in India. It offers foods, beverages, home care, and personal care products. Its operation sare divided into seven reportable divisions: soaps and detergents, personalprod ucts, beverages, foods, ice creams, exports, and other operations. The company derives 44.3% of its revenues from soaps and detergents, 26.6% fromp ersonal care products, 10.5% from beverages, and the rest from foods, ice creams , exports, and other products. Brands in the Personal Care category The personal care product family or category is further sub-divided into sevenca tegories: Personal Wash: Lux Liril Hamam 33 | Page

Lifebuoy

Breeze Dove Rexona Pears Laundry: Surf Excel Rin Wheel Sunlight Hair Care: Sunsilk Naturals Clinic 34 | Page

Deoderants: Axe Rexona Skin Care: Fair & Lovely Ponds Aviance Vaseline Oral Care: Pepsodent Close Up Cosmetics: Lakme Sunsilk Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country. Positioned as the 'Hair Expert', Sunsilk has identified different hair needs and offersthe consumer a shampoo that gives her the desired results. The benefits are more compelling and relevant since the variants are harmonised in terms of the product mix -fragrance, colour and ingredients are all well linked tocue the overall synergy. The range comes in premium packaging and design. Thea ccent is on "It knows you, and hence knows exactly what your hair needs". brand of hair care products for women produced by the Unilever group. It was launched in 1954 in the United Kingdom. By 1959, it was available in eighteendif ferent countries worldwide. Currently, Sunsilk products are available in over 50 countries throughout Asia, The Middle East, North Africa and Latin America, wher e is known as Sedal. In Brazil, this brand is known as Seda. 35 | Page

Old Campaign In the early years, Sunsilk focused much of its marketing attention on gainingin ternational presence. To do this, they targeted different market segments orcoun tries with specialized products designed to address hair "issues" of eachculture . For example in the UK, the core benefit in the 1960s was shiny hair. High interest internationally led to a dramatic decline in support in the United States and UK. Because of this, many years went by with little or no advertising which caused the brand to be viewed as targeted at older women. Although thiswas not Sunsilk's intention the outcome was inevitable. During the 1980s a push viewed by many Unilever insiders as "last-ditch" was mad eto revitalize the brand in Australia followed by other countries [1]. The adver tising featured Beverly Hills stylist Dusty Fleming and although this was successful in Australia the impact on the brand in the UK was catastrophic. By 1991 the former No1 shampoo product was delisted in the UK. Because of the brand loyalty among older users, combined with almost a generatio nof non-use, Sunsilk found it very difficult to gain market share and attract a youngeraudience. A new campaign was launched to recruit younger users. To do this, products alson eeded rejuvenating. Sunsilk decided that in addition to segmenting marketscountr y by country, they should also segment by hair type within each market. Thenew p roducts focused on hair color, texture, feeling, dryness, etc. The updatedSunsil k campaign, "Get Hairapy", followed the same strategy, marking a bold movetoward s users in their 20s and upwards said to be in their "quarter-life crisis". Thet arget audience was also defined as single, fashion-conscious, working women whoe conomized when looking good: women "on-the-go". The new product lines, which feature product threesomes include: Anti-Flat, Anti Poof, Hydra TLC, Straighten-Up, De-Frizz, No Major Issues, ThermaShine, BeyondBr unette Color Boost (Auburn tones and non-highlighted brunette colorers) andBlond e Bombshell (all over blondes and highlighters). Sunsilk also updated its website to reflect its realigned image. The new site, www.gethairapy.com, became the main focus of the campaign. Commercials andprint ads encouraged direct response via the website which included a "get hairapy" blog. 36 | Page

The blog is written by "The Hairapy Guys", a trio of young men with "Queer Eye f or the Straight Guy" appeal. The aim of the Hairapy Guys is to act as lifestyle spe cialistswith thoughts and tips on hair care, dating and other typical twenty-som ethingissues. The blog tagline is "help you laugh away your hair and life proble ms". Themyspace account attracts as many as 18,000 subscribers. The Hairapy Guys havealso been incorporated into various television shows such as the Best Week E ver where they engage in celebrity gossip, Flavor of Love with 30-second promos onthe hairstyles of the would-be girlfriends, and fashion shows on the E! channel. 37 | Page

Life Can't Wait Sunsilk s latest campaign, Life Can t Wait, aims to inspire women all over the globe to live their lives to the fullest. To launch Sunsilk s campaign the brand unveile dtheir Life Can't Wait advertisement during the Super Bowl XLII on February 3 20 08. The founding idea behind the campaign is that hair can dramatically alter a girl s mood and actions. The philosophy behind it is that by taking appearance into the irown hands, girls are equally taking positive steps towards being more in contr ol oftheir life: Hair On= Life On The Life Can't Wait campaign features three of the world's most iconic women; Madonna, Shakira and Marilyn Monroe, who all symbolise the power of expression a ndmaking life happen. Spanning four continents and fifteen countries, the campai gnshowcases these universal icons and reveals significant and life-defining mome ntsin their lives: moments which inspired them to discover themselves, their ide ntitiesand their always-evolving styles. Sunsilk is targeting young women across the world, giving them the opportunity t oshare with each other their own life stories fitting the Life Can t Wait theme howthey have thrown caution to the wind and taken a chance which resulted in a lifechanging experience! The US were first to launch Life Can't Wait, and have hosted an event where girl swith great hair shared their life can't wait stories. Girls from the USA voted for theirwinner, a DJ from California named Tatiana. Background to the campaign Created by DeGrippes Gobe in Paris, the Life Can't Wait campaign was born fromth e global insight that hair, more than any other physical attribute, plays a cruc ialrole in a girl's power to transform and express herself. Research conducted i n sixcountries with 3,000 women revealed the universal truth that twenty-somethi ngwomen find having "good" hair can be a trigger for seizing opportunities. The Sunsilk Global Survey was carried out by Sunsilk in Thailand, India, Brazil, USA, Russia and Mexico between August and September 2007. One finding from theresearc h was that eight out of ten girls (84%) worldwide had missed out onsomething good such as a pay rise or a blind date because they didn t have theconfidence to act instantly and take risks. 38 | Page of

ITC LIMITED ITC is one of India's foremost private sector companies with a market capitalisa tionof nearly US $ 19 billion* and a turnover of over US $ 5.1 Billion. ITC is r ated amongthe World's Best Big Companies, Asia's 'Fab 50' and the World's Most R eputableCompanies by Forbes magazine, among India's Most Respected Companies byB usinessWorld and among India's Most Valuable Companies by Business Today. ITCran ks among India's `10 Most Valuable (Company) Brands', in a study conducted byBra nd Finance and published by the Economic Times. ITC also ranks among Asia's50 be st performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & SpecialtyPap ers, Packaging, Agri-Business, Packaged Foods & Confectionery, InformationTechno logy, Branded Apparel, Personal Care, Stationery, Safety Matches and otherFMCG p roducts. While ITC is an outstanding market leader in its traditionalbusinesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it israpidly gai ning market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. 39 | Page

As one of India's most valuable and respected corporations, ITC is widely percei vedto be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source o finspiration "a commitment beyond the market". In his own words: "ITC believes t hatits aspiration to create enduring value for the nation provides the motive fo rce tosustain growing shareholder value. ITC practices this philosophy by not on ly drivingeach of its businesses towards international competitiveness but by al soconsciously contributing to enhancing the competitiveness of the larger value chainof which it is a part." ITC's diversified status originates from its corporate strategy aimed at creatin gmultiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective su pplychain management and acknowledged service skills in hoteliering. Over time, thestrategic forays into new businesses are expected to garner a significant sha re ofthese emerging high-growth markets in India. 40 | Page

ITC's Agri-Business is one of India's largest exporters of agricultural products . ITC isone of the country's biggest foreign exchange earners (US $ 3.2 billion in the lastdecade). The Company's 'e-Choupal' initiative is enabling Indian agri culturesignificantly enhance its competitiveness by empowering Indian farmers th roughthe power of the Internet. This transformational strategy, which has alread y becomethe subject matter of a case study at Harvard Business School, is expect ed toprogressively create for ITC a huge rural distribution infrastructure, sign ificantlyenhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited , isaggressively pursuing emerging opportunities in providing end-to-end IT solu tions, including e-enabled services and business process outsourcing. ITC's production facilities and hotels have won numerous national and internatio nalawards for quality, productivity, safety and environment management systems. ITCwas the first company in India to voluntarily seek a corporate governance rat ing. ITC employs over 25,000 people at more than 60 locations across India. TheCompan y continuously endeavors to enhance its wealth generating capabilities in agloba lising environment to consistently reward more than 3,75,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This overarching vision of the company is expressively captured in its corporate position ingstatement: "Enduring Value. For the nation. For the Shareholder." Brands in Personal Care: TC launched an exclusive line of prestige fine fragrances under the Essenza Di W ills brand in mid 2005. The Essenza Di Wills range of perfumes reinforces ITC s traditi on of bringing world-class products to Indian consumers to enrich the quality of th eir lives. Essenza Di Wills embodies a fine balance between the classic and the contemporar y. The brand personifies exclusivity, innate style, sophistication and magnetism. The Essenza Di Wills line has been developed with the assistance of French perfumery experts to give it the mystique and premium luxury quality that go wit h the best of international brands. 41 | Page

Inizio, the signature range under Essenza Di Wills captures the very essence of attraction between a manand a woman with its two di stinct lines -Inizio Femme (for women) and Inizio Homme (for men). The women's fine fragrance revolves around 'Floral Fruity Musky'notes while the men's fine f ragrance is centered on 'Oriental Woody Fruity' notes. The bath and body care products share the same olfactory signature of the finefragrances, to offer a ha rmonized grooming experience. he latest addition to the Essenza Di Wills portfolio is the Aqua range for men ( AquaHomme) that offers a distinctive and fresh aquatic fragrance. The Aqua range includes an After-Shave Lotion, a Deodorant, a Hair & Body Shampoo and a Bathing Bar. Essenza Di Wills has significantly enhanced its brand salience in the lifestyle spaceby being the associate sponsors of the Wills Lifestyle India Fashion Week, thecountry's most premier fashion event that brings together the leading designe rs ofthe country. The Essenza Di Wills fashion line, specially designed for the brand by one of In dia sleading designers, Varun Bahl, received high appreciation at the Spring-Summe rshow in September 2007. Essenza Di Wills is available at Wills Lifestyle stores , select John Players stores and select premium outlets. In September 2007, ITC launched Fiama Di Wills, a premium range of personal care products comprising shampoos, conditioner, shower gels and soap. This premium range is a unique blend of nature and science that promises gentle effective care. It is an outcome of 4 years of extensive researc iama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc., USA, offers a range of five variants. Each of these is designed to deliver a specific hairbenefit to the consumer : Everyday Mild (with extracts of Thyme & Juniper) is a gentle caring shampoo suitable fordaily use. Aqua Balance (with extracts of MagnoliaBlossoms & Watercress) is a gentlemoistur izing shampoo ideal for dry, dull hair. 42 | Page

Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing shampooid eal for thin, limp hair. Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth, silky and strong and is ideal for weak, damaged hair. Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny andma nageable, easy to style and is ideal for dull to normal hair. Each of these shampoos can be complemented with Fiama Di WillsPolishing Drops co nditioner. This gentle conditioner enriched withAvocado Oil and Burdock extract promises to make hair shiny, softand smooth. It also gives the additional benefi ts of UV protection asit contains Sunflower Seed extract, which is a natural UV absorber. The Fiama Di Wills product line also consists of a 3-variant range of transparen tshower gels which are unique as they come with suspended beads: Mild Dew (enriched with soft beads, peach andavocado extracts) is for soft, mois turized skin. Clear Springs (enriched with jojoba beads, sea weedand lemongrass extracts) is f or clear healthy skin. Exotic Dream (enriched with glitter beads, bearberryleaves and black currant ext racts) is for stimulatingfreshness. 43 | Page

The Fiama Di Wills range of soaps has been launchedunder the sub -brand SkinSens e. The first variant to be introduced in this range is Soft Green. This is a gentlecaring soap, which helps enhance retention of skinproteins making skin look beautiful and youthful. Between February and June 2008, ITC expanded its personal care portfolio with th elaunch of Vivel Di Wills and Vivel brands. Vivel Di Wills, a range of soaps, an d Vivel, a range of soaps and shampoos, cater to the specific needs of a wide range of consumers. Backed by consumer insights, these ranges offer the unique value proposition ofp roviding the multiple benefits of Nourishment, Protection and Hydration in every single product. Thus providing, the ever-discerning consumer, complete care. The Vivel Di Wills range is available in two variants. Its unique carton pack ha s beendeveloped by ITC's design team to provide a novel consumer experience. Vivel Di Wills Sheer Radiance is enriched with Olive Oil, to provide skin lustre to make it radiant. Vivel Di Wills Sheer Crme is enriched with Shea Butter, to moisturize skin to make it soft and supple. The Vivel range of soaps is available in four variants: Vivel Young Glow is enriched with Vitamin E and FruitInfusions which help in pro viding youthful glow to the skin. Vivel Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel beautifully soft. Vivel Sandal Sparkle is enriched with Sandalwood Oil andActive Clay which helps in providing clear skin. Vivel Ayurveda Essence is enriched with multiple AyurvedicIngredients which help protect skin from germs and harshenvironment, keeping it healthy and beautiful. 44 | Page

The Vivel range of shampoos is available in three variants:Vivel Shine & Glow is suitable for dull to normal hair and is enriched with Green Tea Extract and Conditioners. It adds shine to hair. Vivel Soft & Fresh is suitable for dry to normal hairand contains Extra Conditio ners and Soya Protein. Itmakes hair soft and fragrant. Vivel Volume & Bounce is suitable for oily to normalhair and contains Jojoba Oil and Conditioners. It addsvolume and bounce to hair. In the popular segment, ITC has launched a range of soaps and shampoos under the brand name Superia. Superia Soaps enriched with natural ingredients give radiant glowing skin. Super iaSoaps are available in four variants : 1 Fragrant Flower: with the fragrance of Rose & Lavender. Oil 2 Soft Sandal: with the fragrance of Sandal & Almond Oil . 3 Natural Glow: with Neem & Coconut Oils . 4 Healthy Glow: with Orange Oil . 45 | Page

Superia shampoos with triple conditioners and natural ingredientsbring a natural shine to hair. Superia shampoos are available in twovariants: Shiny Black with Triple Conditioners and the natural goodness ofHibiscus & Brahm i extracts. Vibrant Green with Triple Conditioners and the natural goodness ofAmla & Arnica extracts. Another addition to the Superia shampoo portfolio, Superia MaxiProtect Active He alth shampoo contains Dandruff Fighter along withVitamins & Soya Protein. It fig hts multiple types of dandruff causinggerms and leaves hair & scalp feeling clea n & healthy. DABUR

Dabur India Limited is India's leading FMCG company with interests in health care, personal care and foods. Dabur has a history of more t han 100 years and the company has carved a niche for it self in the field of Ayurved ic medicines. The products of Dabur are marketed in more than 50 countries worldwide. The company has 2 major strategic business units (SBU) -Consumer Care Division (CCD) & Consumer Health Division (CHD), and 3 Subsidiary Group companies -Dabur Foods, Dabur Nepal and Dabur International. Dabur International has 3 step down subsidiaries -Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt. 46 | Page

The origin of Dabur can be traced back to 1884 when Dr. S.K. Burman started a health care products manufacturing facility in a small Calcutta pharmacy. In 189 6, as a result of growing popularity of Dabur products, Dr. Burman set up a manufacturing plant for mass production of formulations. In early 1900s, Dabur entered the specialized area of nature based Ayurvedic medicines. In 1919, Dabur established research laboratories to develop scientific processes and quality ch ecks. In 1936, Dabur became a full-fledged company with the name Dabur India (Dr. S.K. Burman) Pvt Ltd. Dabur shifted its operations to Delhi in 1972. Dabur became a Public Limited Company in 1986 and Dabur India Limited came into existence after reverse merger with Vidogum Limited. In 1992, Dabur entered into a joint venture with Agrolimen of Spain to manufacture and market confectionary items in India. In 1994, Dabur raised its first IPO. In 1998, day to day running of the company was handed over to professionals. In 2000, Dabur achieved a turnover of Rs 1000 crores. In 2005, Dabur acquired Balsara. Dabur crossed $ 2 billion market cap in 2006. Some of the well-known brands of Dabur are: Amla Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care, Pudin Hara, Babool Toothpaste, Hingoli, Dabur Honey, Lemoneez, Meswak, Odonil, Real, RealActiv and Vatika. 47 | Page

VATIKA SHAMPOO The natural shampoo that conditions from deep within, while gently cleansing nourishing your hair. Created by the Vatika Expert with a perfect balance of ural ingredients like henna, green almonds and Shikakai. Unlike chemical shampoos tare harsh, Vatika is mild on your hair, leaving it soft, silky and radiant, h thegentle and caring touch of nature. More then Vatika basic care,vatika dandruff shampoo is popular. For persistent dandruff problem, Vatika Anti-Dandruff Shampoo is the naturalchoi ce. This herbal treatment is completely safe and cures dandruff from within. Enhancing your hair s natural beauty, without damaging or making it Vatika Anti -Dandruff Shampoo uses the natural goodness of lemon and henna. Cleaning and curing difficult dandruff, while conditioning the hair to give it b ody andstrength. 48 | Page and nat tha wit

CAVIN KARE

Success is a journey not a destination. CavinKare began with a young mindchoosin g the road less taken. In 1983 with a single product, CavinKare started outas a small partnership firm. The Company that began its journey as Chik India Ltdwas renamed as CavinKare Pvt. Ltd (CKPL) in 1998. With innovative Entrepreneur C.K. Ranganathan at the helm, CavinKare emerged into a successful businessenterp rise. Smart marketing and clear product positioning not only ensured CavinKare's growt hbut also helped the company broaden its product portfolio extensively. Thecompa ny now markets ten major brands. Over the years, CavinKare has achieved acompeti tive edge with sound understanding of mass marketing dynamics. Thecompany offers quality Personal care (hair care, skin care, home care) and Foodproducts borne out of a keen understanding of consumer needs and keeping upcompany's the values of innovation and customer satisfaction. Today, CavinKare, having established a firm foothold in the national market, isi ncreasing its popularity in the international arena. A dedicated Research & Development centre, equipped with latest equipment and technologies, constantlys upports the various divisions in their endeavour. The Company, which primarilyre lied on contract manufacturing for many years has now set up its own world class plant at Haridwar to cater to the demand of both domestic and internationalmarke t. CavinKare has touched a turnover of over 5000 million INR in 2007-2008. The Company has employee strength of 976, an all India network of 1300 Stockistscate ring to about 25 lakh outlets nationally. CavinKare's astute professionalism, innovative products and consistent quality are results of its significant corpor atepractice. CHIK SHAMPOO 49 | Page

Just a mention of Chik Shampoo today gives rise to varied perceptions. To the ru raland semi urban population of India, it is the preferred daily shampoo. To the marketand its players, the second largest selling shampoo in the country. To th ecompetition, a case study in competitive strategy In a highly competitive FMCG category that seemed impenetrable to mostmarketers. Chik Shampoo identified a humongous opportunity in rural and semiurban India an d created waves with its entry into these markets. Combininginnovative sachet pa cking, strategic pricing (At Re.1 and 50p) and a strong andmotivated distributio n network, Chik Shampoo transformed the very nature of shampoo packaging and usage. THE CHIK PROMISE With a tropical climate round the year, it is indeed a difficult task to maintai n hairsoftness and shine. Added to this, tangled hair has come to be the most co mmoncomplaint to girls and women. The Research and Development team at CavinKare recognized softness and manageability to be the key issues in the maintenance an dnourishment of hair. This paved the way for a unique formula Active Double Conditioners that cut across age, sex and loyalists of other shampoos to adopt Chik Shampoo. Further, 50 | Page

extensive communication targeted at the rural and semi urban masses showcased the possibility of soft and manageable hair. The iconic Chik Girl in every Chik Shampoo commercial treated her hair with the shampoo and demonstrated with atmost ease and confidence her ability to untangle her hair with just a single m otion of running her fingers through her hair. Her testimonial signature Yun Kiya Ho G ayal has come to be a popular phrase amongst both girls and women today. THE CHIK USER Chik Shampoo has always targeted both, girls and women in rural and semi urban India. The brand has gained their confidence and become a household name by catering to their continuously evolving requirements and preferences. Chik Shampoo has always targeted both, girls and women in rural and semi urban India. The brand has gained their confidence and become a household name by catering to their continuously evolving requirements and preferences. 51 | Page

4 P S ANALYSIS OF PANTENE PRO-V PRODUCT: Clearly, Shampoo is more than just shampoo when P&G sells it. P&G s great successi n the rough-and-tumble shampoo world comes from developing an innovativeproduct concept. An effective product concept is the first step in marketing-mixplanning . Philip Kotler defines product as Anything that can beoffered to a market for attention, acquisition, use or consumption that might satisfy a -want or need. I t includes physical objects, services, persons,places, organizationsand ideas. Product planners need to think about the product on three levels. The most basic level is the core product, which addresses the question: What is the buyer reall y buying? Theodore Levitt has pointed out that buyers 'do not buy quarter-inch drills; the y buyquarter-inch holes'. Thus when designing products, marketers must first def ine the core of benefits that the product will provide to consumers. The product planner must next build an actual product around the core product. Actual products may have as many as five characteristics: a quality level, featu res, styling, a brand name and packaging. product is more than a simple set of tangible features. Consumers tend to seepro ducts as complex bundles of benefits that satisfy their needs. 52 | Page

Source: Philip Kotler European Edition We will now discuss our product Pantene under the following heads: Form: It is available in the both premium bottle pack as well as satchets. FEATURES: The Pantene has whole range of shampoos with different features. These are Volume Care, Smoothing Care, Color Care, Curl Care and Basic Care, anti dandruff, anti-hair fall etc. SIZE OF PACKAGE Available in 100 ml,200 ml and 400 ml sizes BRAND: 53 | Page

Pantene Pro-V continues to create a line of products that transforms dull, dry, limphair into healthy, shiny hair. Their slogan: Hair so healthy, it shines! Each of thepro-vitamin essentials has been formulated to meet a special hair care nee d, inparticular panthenol. Pantene has recently been awarded Asia s favorite Shampoo in the ReadersDigest Super Brands Survey. Pantene is currently facing issues with intense competition, but their unique Pr oVitamin ingredient makes hair strong and healthy. P&G is now one of the world slarg est beauty companies (P&G Annual report). P&G states that Pantene is theworld s lar gest hair care brand and that it grew in double digits over the last twoyears. P&G claims that this success is due in part to their unsurpassed haircond itioning technology. The global retail hair care market is a $34 billion industry. P&G has annual sal es ofmore than $4.5 billion with leading brands like Pantene. Pantene s position i n themarket is by attribute, claiming Hair so Healthy it Shines and their latest i s a haircare challenge saying, Healthier Hair in just 10 Days. Guaranteed. Pantene usesprice to slightly separate itself from its in-store competitors. The price for Panteneproducts is slightly higher, identifying it as a better product. Pant ene is alsopositioned around the product user. It has recently done commercials withactresses like Katrina Kaif,Sushmita Sen,Lara Dutta. Lastly Pantene is positi onedby the competitor. It is perceived as a product that maintains great hair an daccording to the sales figures it is perceived as a better product by consumers . 54 | Page

PRICE: As mentioned above the 200 ml bottle was available for Rs 98 and 100 ml for Rs 51.But very recently Pantene had reduced the prices and now the same 200 mlbottl es are available for Rs 89 and 100 ML FOR Rs 41. P&G has basically adopted Geographical pricing strategy for Pantene.They have se tdifferent prices for Pantene in different countries.This is a very good strateg icmethod as it captures the local conditions as well as purchasing power of the localpopulation. When Pantene launched Lively Clean,it adopted Promotional Pricing for it andlaun ched it at an introductory price of R78 for 200 ml bottle It has also introduced Bundle Pricing where it has clubbed two or more products andsold them at a reduced price.But this strategy has not been very successful a s iteroded the premium image of the Shampoo and gave the impression of desperati onof the company. 55 | Page

Around 2 years back in 2006 P&G reduced the rates of Pantene by 16%. By thisway what P&G did was cutting its bottle's premium over sachets. At the same timeP&G is reducing the price gaps between its own brands. While Pantene and Head & Shoulders were sold at nearly similar price points, bringing down Pantene prices placed it between Rejoice (Rs 39 for 100 ml) and Head & Shoulders (Rs 64 for 100 ml) and thereby segment P&G's shampoo brands at different price points. Thisstra tegy is known as Product Line Pricing. Very recently Pantene has changed its pricing approach and experimented withValu e Pricing Strategy. In this Procter & Gamble made dramatic and long-termchanges in its pricing and promotion strategy during which it boostedadvertising while s imultaneously curbing its distribution channel deals(in-store displays, trade de als), and significantly reducing its couponpromotions. It is interesting to note that P&G's value pricing strategy regardingPantene is quite a misnomer. During this period many stores were switching toEDLP (every day low pricing) policies, which meant that consumers would save ontheir overall purchase without having to deal shop. In contrast, P&G strategyessentially was a disguised price increase; coupons were cut by 50%, whichcontributed to an increase in the customer's pric e paid by 20%. It is possible thatP&G lowered their wholesale price, but the ret ailer only enjoyed higher margins anddid not pass the savings on to the customer . Another possibility is that retailerslowered retail prices consistently, follo wing P&G's decrease in wholesale price, butonce promotional trade deals are fact ored in those everyday lower wholesale pricesdid not result in a lower total pri ce paid. For example, if P&G's old price was Rs20, but gave deals of Rs15, at which price 90% of purchases were made, the wholesale price equaled Rs15.7 (.90*15 + .10*20). If P&G set a "Value Price" point of Rs18 , but 100% of purchases we were made at that price, the retailer enjoyed no costsa vings-only a cost increase. If P&G had truly offered price cuts their results ma yhave been much different. PROMOTION: 56 | Page

The promotional strategy of Pantene is highly useful and effective. Using magazi neprint advertisements and commercials allows for the opportunity to segment the iradvertisements by specific magazines, specific TV shows, and specific time slo ts. These strategies provide Pantene with the opportunity to wisely advertise to the irtarget audience. Pantene s use of advertising with different ethnicities, hair types, and ages hasp roven to be a critical factor because they are now developing specific hair care linefor different types of ethnicities; they were voted Asia s number one shampoo , andthey are a highly marketable product in Europe. Without promotion this brand would be relatively unknown and its popularitywould not be near what has been established with promotion. Many times when aconsumer sees a product in the store that they have not heard of they will browseover it and choose a product they know. Consumer and market knowledge areprevalent beca use Pantene and P&G are built around what consumers want. . Public Relations is a large aspect of the P&G/Pantene promotional mix. Proctor & Gamble does things like raising funds for children who suffer from malnutrition inIndia and Pantene recently put on the Condition for a Cause campaign, donatingmo ney to heart disease research. Sales Promotion is also alarge factor for Pantene , they use marketing and business techniques to try and improve consumer s lives. They are always finding new and better ways to reach their consumers andbetween their PR campaigns and advertising they are constantly appealing toconsumers and causing them to trust Pantene. Personal selling is not an aspect of Pantene s promotional selling and it would no tbe wise to incorporate it. Personal selling often comes off as a sleazy salesma n scheap and last minute effort. Pantene s print and TV advertisements are enough fo rPantene to bring in new customers and frequently remind its loyal customers tha t itis still in the stores and going strong. Personal Selling would also be a pr icey movethat would hinder rather than aid Pantene s efforts. Lastly, advertising is anenormous part of Pantene s promotional mix. Without the current advertisingst rategies and past ones as well, Pantene wouldn t be the widely known and thehighly used brand that it is today. 57 | Page

The distributor needs to be aware of the brands state in the market, theyshould have information on the product in order to decide if they want to beassociated with that product and if so, they will need to know enough aboutthe product to a id customers in finding a shampoo that is best for the them. The idea would be to establish a relationship with as many retailers as possible to make the brand the recommended one. Consumers need to knowas much as possible about the product. They do not want to feel as if thecompany is hiding something from them and they want to be able to trust theproducts they are usin g. Information like the ingredients, different productsthe brand carries, effort s made by the brand to help others and humanity areall factors that could affect a sale. Distribution as much information as possible is a good idea for the company. The purpose in using aspects of the promotional mix is to build brand equity, brand awareness, and frequently put our advertisements and name into thepublic t o be seen. The frequency in which the ads are seen is as important asthe message we are providing. 58 | Page

Pantene also gives out free samples to anyone. When visiting their websitethere will be a small box of information about samples to the right, when theonline vi sitor clicks on that they will find that if they provide Pantene withinformation about themselves they will be sent free samples. Pantene hasrecently run out of free samples and leads the consumer to an apology pagewhich in turn directs the consumer to the page for their most recentsweepstakes. Endorsers: global celebs like Hollywood stars Kirsty Alley, Rachel Hunter, Liv Ty ler, Angie Everhart and Kelly Lebrock, among others have endorsed Panteen In India, Sushmita Sen, Katrina Kaif, Bipasha Basu, Shilpa Shetty, Sonali Bendre and Simon eSingh are among the brand ambassadors.Lara Dutta is the most recent celebritywh o has got associated with the brand.A noticeable thing about panteneadvertisemen ts is that always Asian women are shown who have thick,long,darkhair. 59 | Page

60 | Page

In response to the change in appearance and types of product Pantene has saidtha t this change was for the better and it is easier than ever to choose which product is best for the individual consumer. Simply pick the Pantene versi onthat names how you want your hair to look: Volume Care, Smoothing Care, ColorC are, Curl Care and Basic Care. 61 | Page

Each collection includes a shampoo, conditioner, treatment and styling productst hat helps the consumer achieve their unique look. Not only did they change their products to match the consumer s desired style, they claim to have improved theirt echnologies. Pantene also claims that its products have ingredients that set it apart from th ecompetition. They state that each line of products in their collections has the rightcombination to give customers the benefit that is spelled out in the name o f theproduct. Validity: We conduct extensive scientific research and laboratory testing, as wel las in-home and clinical testing, to make sure our advertising claims are factua l. Because of the competitive nature of our business, though, we're unable to provi dedetails to individuals about the specific research we perform. Hair care companies are building on the desire for women to maintain a young, natural, and fresh look. Marketers are also beginning to key onto teenage girlsm ore. Girls ages 15-19 increased sales 6.9% from 1995-2001. Pantene s promotional tactics are ideal and we feel they are approaching thetarget audience well. PLACE: Placement (or distribution): refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This fourth P has also sometimesb een called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment( young adults, families, business people), etc. also referring to how the environ mentin which the product is sold in can affect sales. 62 | Page

Pantene has an undoubtedly amazing design & distribution channel and this can be supported by the fact Pantene is one of the most easily available brands in the industry. In 1998-1999. Pantene launched global corporate restructuring program calledOrga nization 2005, and made several changes in structure, work processes and culture to generategre ater stretch, innovation and speed to help its products reach the market faster. Pantene retails through Spencers,Reliance Fresh,More,RPG group and wide varietyo f Kirana stores spread all over the country. 63 | Page

COMPETITIVE ANALYSIS OF PANTENE Competitors are an essential part of any product s scheme of operations.Thestrateg ies adopted by competitors decide the operation plans for the product.So,itbecom es important to analyze the competitors on the basis of all the criterias. Butsc ope of this project limits us to the competitive analysis based on the 4 P s frame work.The main competitors for Pantene are Sunsilk from HUL,Fiamma Di wills fromI TC,Halo from Colgate Palmolive and Vatika from Dabur India Ltd. Competitive analysis based on: PRODUCT: In October, 1998 Pantene extended its product line and announced that PantenePro -V would be renamed Pantene Ultra-V due to a revamped formula and package. In response to the change in appearance and types of product Pantene has saidtha t this change was for the better and it is easier than ever to choose whichprodu ct is best for the individual consumer. Pantene has named it products in a way that they represent how you want yourhair to look: Volume Care, Smoothing Care, Color Care, Curl Care and Basic Care. Each collection includes a shampoo, conditioner, treatment and styling productst hat helps the consumer achieve their unique look. Not only did they change their products to match the consumer s desired style, they claim to have improved theirt echnologies. Pantene also claims that its products have ingredients that set it apart from th ecompetition. They state that each line of products in their collections has the rightcombination to give customers the benefit that is spelled out in the name o f theproduct. 64 | Page

Pantene claims to conduct extensive scientific research and laboratory testing, aswell as in-home and clinical testing, to make sure their advertising claims ar efactual. Pantene claims to have competitive advantage on the basis of its generics and it sinnovations. It has Pro Vitamin B-5 with conditioning capabilities and P&G has based its promotion on this basic ingredient only. Comparison of various shampoos on the basis of product attributes Product Volume attributes Boost Pantene yes Sunsilk yes Fiamma Di yes Wills Dabur Vatika yes Chik no Shampoo Conditioni ng yes yes yes yes yes Smoothi ng care yes no yes yes yes Curl care yes no no no

no Anti Color Basic Hair care Care Fall Recentl yes yes y launch ed yes no yes no no yes no no yes yes no yes We can see that Pantene surely has an edge on the other players in the market in the features of product.It has got many variants as compared to the players in t he market.It has come up with a big line up of shampoos ranging from Basic Care for normal hair to curl care for hair with heavy curls.Then there is a shampoo for p eople 65 | Page

with color hair.Apart from this they also provide anti hair fall and anti dandru ff shampoo. But if we see the shampoo line up of other competitors we can see that no other competitor is present in all the categories at one go. Out of all the competitors only Sunsilk by Unilever gives it a close fight. Price: Before analyzing the prices first lets have a look at the prices of players in t he market: Product/size Pantene Sunsilk Fiamma di wills Dabur Vatika Chik 100 ml Rs 47 N.A Rs.50 Rs. 46 Rs 46 125 ml N.A Rs.50 N.A N.A N.A 200 ml Rs.89 N.A Rs 112 Rs.100 Rs 86 250 ml 400 ml N.A Rs.155 Rs98 Rs150 N.A Rs158 N.A Rs.142 Rs 144 66 | Page

As we can see that the ,main competitor of Pantene in terms of prices areSunsilk ,Fiamma Di Wils,Chik ,Dabur Vatika etc. The competitors who sell for a cheaper price include Vatika for 100 ml,Chik for all100 ml,200 ml and 400 ml,Sunsilk for 400 ml. We can see that though P&G has adopted value pricing strategy for Pantene,itspri ces are still a notch higher then that of its competitors. Its main competition is from Sunsilk which belongs to same premium segment andwe can observe that Sunsilk is placed at better prices as compared to Pantene. We can see that 100 ml of Pantene is available in Rs 47 whereas at almost same price we get 25 ml more of sunsilk(125 ml for Rs. 50) In the 400 ml category,Pantene is the second most expensive shampoo after FiammD i Wills wich is launched only 6-7 months back. 67 | Page

Promotion: The latest campaign from the stable of Pantene is Shine Pantene. With this campaign they have positioned themselves on the stand that their product isthe b est for providing shine to hair.To strengthen this Shine Campaign they have modeled their bottles as Pearly White. Sunsilk on the other other hand have modeled their bottles in the form of a Lady s figure.They have targeted the Psychology of women and the structure of their bottles givesthe sam e impression that this shampoo is made for the women and suitstheir needs the be st. Pantene s use of advertising with different ethnicities, hair types, and ageshas p roven to be a critical factor because they are now developing specifichair care line for different types of ethnicities; they were voted Asia s numberone shampoo, and they are a highly marketable product inEurope.Compared to this all the othe r shampoos(fiamma di willis,Chik,Vatika)are home grown brands and they don t have the advantage ofthe global operations of P&G. Pantene has also associated itself with many charitable events as well as Beauty Contests and many movies functions. Among all the competitors only Sunsilk has the resources to promote itself through personal relations.Rest of the brands are just local players in this respect. Personal selling is not an aspect of Pantene s promotional selling and it wouldnot be wise to incorporate it. Personal selling often comes off as a sleazysalesman s cheap and last minute effort. Pantene s print and TVadvertisements are enough for Pantene to bring in new customers andfrequently remind its loyal customers that it is still in the stores and goingstrong. Some of its competitors like Cavin K are have used this strategy alsoat the primary level. Many A grade celebs have associated themselves with Pantene whereas with Chik there are no popular celeb associated.A B grade movie actress Riya sen is the brand ambassador of Vatika and a newcomer like Deepika Padukone is now the amabassador for Fiama si willis.Pantene is really a power house if we talk in terms of the celebrity power. 68 | Page

Place: Placement (or distribution): refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This fourth P has also sometimesb een called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment( young adults, families, business people), etc. also referring to how the environ mentin which the product is sold in can affect sales. Pantene has an undoubtedly amazing design & distribution channel and this can be supported by the fact Pantene is one of the most easily available brands in the industry. In 1998-1999. Pantene launched global corporate restructuring program calledOrga nization 2005, and made several changes in structure, work processes and culture to generategre ater stretch, innovation and speed to help its products reach the market faster. Pantene retails through Spencers,Reliance Fresh,More,RPG group and wide varietyo f Kirana stores spread all over the country. Among the competitors only P&G has a distribution network comparable to that of Pantene as its is also a global biggie.Other companies are still trying to catch up with these companies. 69 | Page

COMPETITIVE ADVANTAGE Under the marketing concept, companies gain competitive advantage by designingof fers that satisfy target-consumer needs better than competitors offers. Theymigh t deliver more customer value by offering consumers lower prices thancompetitors for similar products and services, or by providing more benefits thatjustify hi gher prices. Marketing strategies must consider the strategies ofcompetitors as well as the needs of target consumers. Some of the main points thatconstitute th e competitive advantage of P&G in general and Pantene in specific are: P&G is one of the largest FMCG companies in the world. Its main competition is w ithUnilever which has almost equal presence in the world. Procter and Gambles sa lesas of November 21st, 2003 reached $44,776 million. Below are some of the company s key statistics for the year 2007 . Source:P&G annual report,2007 Pantene is known worldwide. It was the best selling hair care line in 1995. Pant eneis known to create healthy, shiny hair. 70 | Page

It has Panthenol or Pro-Vitamin B5 which has the qualities to make hair shiny an d strong. It has a very strong distribution network.Wal Mart. K-mart,Spencers,RelianceFres h,More etc are among its retailers.Apart from these it hasn t neglected thesmall s tores or Mom and Pop stores. They are equally important component of its supply chain and distribution network. It is cheaper than other elite brands(Estee Lauder,L oreal,Revlon,Salons) but alwa yscounted among the good brands in the market. P&G has one of the largest advertising expenditures in the whole world.Following isthe Proctor& Gamble s advertising expenditures: In 1998 P&G s advertising expense reached $3,801 and dropped a little to $3,639 in 1999. From 1999 to 2002 theadve rtising expenditures level off from 3,600 to 3,780. In 2003 advertisingexpenditu res rose from 3,773 to 4,373. Out of this, expenditure on Pantene was$1342. P&G is known for its innovation.It has a large diverse portfolio of products.It has gotseveral awards for innovation and that comes alive into its Pantene produ ct rangeas well. Pantene s customer base is also its very significant competitive advantage.Ittarg ets women and girls and they constitute its loyal customer base. Pantene has a good Brand Equity and there are always new kinds of hair types tha tit markets to. P&G intends to build brand equity by developing distinctive prod uctsthat stand for something and that have a definite position in the market. Th ey wantto communicate the products benefits as compared to the competitor, with a brandthat is so amazing, appealing, and reliable that the consumer begins to t rust thebrand. As per the report by Wachovia Corporation on Economics,Pantene is the mostfavore d brand worldwide.This gives a boost to its image and strengthens it further. Pantene Pro-V care collections are formulated to meet the styling needs of people from all ethnicities.All the customers can gain personalized guidance from theex perts at the website. 71 | Page

Pantene appeals to a wide variety of nationalities, and not all nations feel the sameabout hygiene as the American culture. Many women may find choosing the rig htshampoo a limited-decision making process and other an extended decision-makin gprocess. All women are different and with extensive reach Pantene strives for i t isdifficult to pinpoint one concept. 72 | Page

PROMOTIONAL STRATEGY The promotional strategy of Pantene is highly useful and effective. Using magazi neprint advertisements and commercials allows for the opportunity to segment the iradvertisements by specific magazines, specific TV shows, and specific time slo ts. These strategies provide Pantene with the opportunity to wisely advertise to the irtarget audience. Pantene s use of advertising with different ethnicities, hair types, and ages hasp roven to be a critical factor because they are now developing specific hair care linefor different types of ethnicities; they were voted Asia s number one shampoo , andthey are a highly marketable product in Europe. Without promotion our brand would be relatively unknown and its popularitywould not be near what has been established with promotion. Many times when aconsumer sees a product in the store that they have not heard of they will browseover it and choose a product they know. Consumer and market knowledge areprevalent becau se Pantene and P&G are built around what consumers want. Public Relations is a large aspect of the P&G/Pantene promotional mix. Proctor & Gamble does things like raising funds for children who suffer from malnutrition inIndia and Pantene recently put on the Condition for a Cause campaign, donatingmo ney to heart disease research. Sales Promotion is also a 73 | Page

large factor for Pantene, they use marketing and business techniques to try andi mprove consumer s lives. They are always finding new and better ways to reachtheir consumers and between their PR campaigns and advertising they areconstantly app ealing to consumers and causing them to trust Pantene. Personalselling is not an aspect of Pantene s promotional selling and it would not be wise toincorporate it . Personal selling often comes off as a sleazy salesman s cheap andlast minute eff ort. Pantene s print and TV advertisements are enough for Pantene tobring in new c ustomers and frequently remind its loyal customers that it is still inthe stores and going strong. Personal Selling would also be a pricey move thatwould hinder rather than aid Pantene s efforts. Lastly, advertising is an enormouspart of Pant ene s promotional mix. Without the current advertising strategies andpast ones as well, Pantene wouldn t be the widely known and the highly used brandthat it is tod ay. The distributor needs to be aware of the brands state in the market, they should have information on the product in order to decide if they want to be associated with that product and if so, they will need to know enough about the product to aidcustomers in finding a shampoo that is best for the them. The idea would be t oestablish a relationship with as many retailers as possible to make the brand t herecommended one. Consumers need to know as much as possible about theproduct. They do not want to feel as if the company is hiding something from themand they want to be able to trust the products they are using. Information like theingre dients, different products the brand carries, efforts made by the brand to help others and humanity are all factors that could affect a sale. Distributi on asmuch information as possible is a good idea for the company. The purpose in using aspects of the promotional mix is to build brand equity, brand awareness, and frequently put our advertisements and name into the publict o be seen. The frequency in which the ads are seen is as important as the messag ewe are providing. Pantene also gives out free samples to anyone. When visiting their website there will be a small box of information about samples to the right, when the online v isitorclicks on that they will find that if they provide Pantene with informatio n aboutthemselves they will be sent free samples. Pantene has recently run out o f freesamples and leads the consumer to an apology page which in turn directs th econsumer to the page for their most recent sweepstakes. 74 | Page

Endorsers: global celebs like Hollywood stars Kirsty Alley, Rachel Hunter, Liv Ty ler, Angie Everhart and Kelly Lebrock, among others have endorsed Panteen In India, Sushmita Sen, Katrina Kaif, Bipasha Basu, Shilpa Shetty, Sonali Bendre and Simon eSingh are among the brand ambassadors.Lara Dutta is the most recent celebritywh o has got associated with the brand.A noticeable thing abouth panteneadvertiseme nts is that always Asian women are shown who have thick,long,darkhair. In response to the change in appearance and types of product Pantene has saidtha t this change was for the better and it is easier than ever to choose which product is best for the individual consumer. Simply pick the Pantene versi onthat names how you want your hair to look: Volume Care, Smoothing Care, ColorC are, Curl Care and Basic Care. Each collection includes a shampoo, conditioner, treatment and styling productst hat helps the consumer achieve their unique look. Not only did they change their products to match the consumer s desired style, they claim to have improved theirt echnologies. Pantene also claims that its products have ingredients that set it apart from th ecompetition. They state that each line of products in their collections has the rightcombination to give customers the benefit that is spelled out in the name o f theproduct. Validity: We conduct extensive scientific research and laboratory testing, as wel las in-home and clinical testing, to make sure our advertising claims are factua l. Because of the competitive nature of our business, though, we're unable to provi dedetails to individuals about the specific research we perform. 75 | Page

Hair care companies are building on the desire for women to maintain a young, natural, and fresh look. Marketers are also beginning to key onto teenage girlsm ore. Girls ages 15-19 increased sales 6.9% from 1995-2001. Pantene s promotional tactics are ideal and we feel they are approaching thetarget audience well. 76 | Page

PRICING STRATEGY Procter & Gamble is a giant in household products, and the company which defined many marketing strategies we now take for granted. It was the first company toad vertise nationally direct to consumers (in 1880) and it literally created thecon cept of "soap opera" by sponsoring radio and television dramas targetingwomen. O ther inventions included the first Fluoride-based toothpaste (Crest), the revolutionary synthetic detergent Tide, and the first disposable nappy, Pampers. P&G found life in the first years of 21st century more difficult than it may have ex pected, with earnings below expectations and a series of management shake-ups as aresult of under-performance. The group got back on track during 2002 with thepurchase of Clairol and Wella and a renewed focus on core products. Followingdynamic perf ormance in 2003 and 2004, P&G demonstrated the strength of itsrecovery with the announcement in 2005 that it had agreed a deal to acquirelegendary personal care products rival Gillette. Advertising Age estimated globalmeasured advertising e xpenditure of $8.5bn in 2006, making P&G th Procter & Gamble made dramatic and long-term changes in its pricing and promotion strategy for Pantene during which it boosted advertising while simultaneously curbing its distribution channel deals (in-store displays, trade deals), and significantly reducing its coupon promotions. It adopted value pricing strategy wich further influenced its future marketing decisions. THE SCENARIO In the early 1990's Procter & Gamble made dramatic and long-term changes in itsp ricing and promotion strategy. Procter & Gamble (P&G), a leading consumerpackage d goods producer, instituted a "value pricing strategy" during which itboosted a dvertising while simultaneously curbing its distribution channel deals (instore displays, trade deals), and significantly reducing its coupon promotions. THE DETAILS 77 | Page

What inspired P&G to initiate this value pricing strategy? First was logisticale fficiency. P&G was concerned with the cost of administering promotions, and thee ffect of up-and-down swings in demand on the production system. Second, P&Gwas c oncerned with the impact of promotions on brand loyalty, fearing that on onehand they attracted "cherry-picking" bargain hunters who could care less about thebr and, and on the other hand they weakened the loyalty of their core customers. It is also thought that one of the prime architects of the strategy, senior executi veDirk Jager, personally disliked coupons with a passion. These factors inspired P&G tobreak with standard marketing practices. As a result, over the course six years(1990 through 1996) P&G reduced its coupon expenditures by over 50%, reduc edits distribution channel deal expenditures by 20%, and increased its advertisi ngexpenditures by 20%. This was truly a contrarian strategy as during the samepe riod general market trends showed an increase in promotion (deals and coupons) by 15% and a decrease in advertising by 20%. What were the goals of value pricing? First, it sought to improve efficiency. Th eadministrative and production costs for promotions, deals, and coupons werebeco ming increasingly expensive and cumbersome for P&G, distributors, andretailers. Second, since the theory was that coupons and deals only invited brandswitching and destroyed brand loyalty, cutting back on deals should leave P&G witha strong er brand franchise. And to top it off, coupon fraud was also growing at thistime with supposed nefarious links to organized crime and terrorist funding. Cutting back on coupons would obviously sever this link. From 1990 -1996, the net price paid by consumers of P&G products increased20.4% (due to the decrease of coupons use by 54.3%, and reduction in price cuts). Meanwhile P&G increased advertising by 20.7%, and decreased channel deals by15.7 %. What was the competitive reaction? During the same time period, the overallcompe tition's (including companies such as Colgate, Unilever, and Gillette) net price paid increased 10%, advertising increased 6.3%, deals increased 13.1%, andcoupon s decreased 171%. Of the three competitors, only Gillette lowered prices and it increased coupons use by 127.6% --far moreth an Colgate. Overall, the competition did not completely cooperate with P&G, butn either did it take full advantage in a mad grab for market share. 78 | Page

What was the total impact on P&G? P&G's Value Pricing Strategy showed no changei n share of requirements or category usage, but it did end up with a reducedpenet ration rate, which declined 16%. This was because the cut in promotionsresulted in fewer consumers buying P&G brands, and neither the cut in promotionsnor the i ncrease in advertising had any appreciable effect on SOR. Overall, P&G's market share decreased 16%. Although P&G lost market share, it is possible that itsprofits remained stable or even increased. It lost 16% of share, but made up for thisthrough increased prices 20%, a lower cost of good sold, and efficiencie s inproduction. However, the increase in advertising expenditures may have wiped outmost of the cost savings. Despite gain or loss in profitability, P&G lost th eir strategicand esteemed position as the market leader in the consumer packaged goodsindustry. Traditionally, P&G had a sharp focus on market share leadership as theultimate metric of succesand yet for the first time since the 1950s, Colga te overtook P&G's Crest as the market leader. What happened to P&G's theory that price promotions reduce loyalty? Was thismyth or fact? Analyzing P&G's value pricing strategy shows that promotion cutsdecrea sed penetration but did not dramatically increase loyalty. So, P&G's initialbeli efs were myths indeed. Additionally, increasing advertising had little effect on market share. Why? When you are the market share leader the effect of advertisin gis diminished. Market share leaders already have high awareness levels, and unl essyour advertising provides new compelling reasons to buy (usually rooted ininn ovative product differentiation) What was the effect of the competitive response? The competitors reacted to P&G' sstrategy in a way that cushioned P&G's loss -the competition could have destroy edP&G, but P&G's losses were mostly self-inflicted. Of the competitors, Gillette wasthe only one to take a contrarian strategy and was fairly successful. What d o you doabout sharp competitors like Gillette? As we saw recently, P&G decided t o buy this one. In sum, sustained cuts in promotion result in lost share in the long run. Sustai nedmass advertising expenditure increases for mature, high share brands do not p ayoff in the long run. Mass advertising is better suited for immature, low share brands. Finally, competitors may not "eat your lunch" if a company chooses a strategy th atmakes them vulnerable. The competition likely faces the same challenges as you rcompany and may follow suit with policy changes. 79 | Page

Market modeling is a powerful tool. Response modeling entails using mathematical models to translate the rich market environment into mathematical equations in a neffort to quantify the impact of marketing initiatives. Modeling competitive ma rketresponse to major policy changes is important to understanding the long-term results of those policy changes. The next major challenge for marketers ispredic ting, in advance, how the market will react to future policy changes. When amajo r policy change is implemented, it fundamentally changes the market; therules of the game are changed. Therefore, it is inherently inaccurate to predict theresu lts of major policy changes based on historical data because appropriate datadoe s not exist. It is interesting to note that P&G's value pricing strategy is quite a misnomer. During this period many stores were switching to EDLP (every day low pricing) policies, which meant that consumers would save on their overall purchase withou thaving to deal shop. In contrast, P&G strategy essentially was a disguised pric eincrease; coupons were cut by 50%, which contributed to an increase in thecusto mer's price paid by 20%. It is possible that P&G lowered their wholesale price, but the retailer only enjoyed higher margins and did not pass the savings on to thecustomer. Another possibility is that retailers lowered retail prices consist ently, following P&G's decrease in wholesale price, but once promotional trade deals ar efactored in those everyday lower wholesale prices did not result in a lower tot alprice paid. For example, if P&G's old price was $20, but gave deals of $15, at whichprice 90% of purchases were made, the wholesale price equaled $15.7 (.90*$ 15 + .10*$20). If P&G set a "Value Price" point of $18, but 100% of purchases we weremade at that price, the retailer enjoyed no cost savings-only a cost increas e. If P&Ghad truly offered price cuts, their results may have been much differen t. THE BIG PICTURE The insights into P&G's grand experiment demonstrate to us the importance ofprom otional pricing, and the diminished power of mass advertising for high shareplay ers. Analysis of P&G's value pricing strategy allows us to see how major longterm policy changes, not short-term marketing mix changes, affect market sharean d competitors' reaction. Studying P&G's value pricing strategy offers the unique opportunity for marketers to analyze major policy changes, obtain clearerunderst anding of how marketing mix changes affect brands, learn about long-termimpacts of marketing changes, and inform future policy decisions. And it is alsoimportan t to note that success can be measured more than one way. In essence, the P&G grand experiment may have been successful when measured by profits, and at the time those profits were being used to invest in new innovations. However, for a company that traditionally measured success by volume (marketshar e) its value pricing strategy truly had a large enough adverse impact on shareth at it was eventually abandoned. Some broad strategies were also adopted forPante ne.They are: 80 | Page

P&G has basically adopted Geographical pricing strategy for Pantene.They have se tdifferent prices for Pantene in different countries.This is a very good strateg icmethod as it captures the local conditions as well as purchasing power of the localpopulation. When Pantene launched Lively Clean,it adopted Promotional Pricing for it andlaun ched it at an introductory price of R78 for 200 ml bottle It has also introduced Bundle Pricing where it has clubbed two or more products andsold them at a reduced price.But this strategy has not been very successful a s iteroded the premium image of the Shampoo and gave the impression of desperati onof the company. MARKET ANALYSIS AND STRATEGIES ADOPTED BY P&G FOR PANTENE Market Analysis: Market size: As far as market share is concerned P&G was 15.4% higher than itsne arest competitor. In 1999 P&G recorded a market share value of 30.1%. From allth e graphs we found, P&G continues to grow to 43,337 million in net sales, 5,186mi llion in net earnings and 3.69 in net earnings per share all in 2007. Pantene is inthe mature stage of the product life cycle. With all the new products and pro ductdevelopments, it is likely that itcould elevate back to the competitive stag e. 81 | Page

MARKETING STRATEGIES When visiting www.pantene.com the viewer will find a list of countries worldwide ; each web visitor is expected to select their country in order to be taken to aPa ntene web page corresponding with their country and language).. Pantene hasrecen tly added two new hair care lines to target to a more diverse group of women. In July 2003 Pantene launched its Pantene Long Black line specifically for Indianw omen whose culture values hair as a beautiful feature on a woman. The formula darkens each strand uniformly from root to tip through intense moisturizing as w ellas reducing damage. Pantene has recently been awarded Asia s favorite Shampoo in the Readers Digest Super Brands Survey. Also on the shelf next to the pearlyw hite Pantene has sponsored many Beauty Contests and Bollywood events. And T.Vprograms like NACH BALIYE 4 . 82 | Page

It is also associated with many corporate social initiaitives like Indian HeartA ssociation for condition for a Cause. It has come up with many offers for women where in they can meet a celebrity and get pampered like one. Pantene markets to women and girls. They market to all ages, races, social class es, and economic standings. On Pantene s website there is a list of frequently asked question. The customersca n become the member of the Pantene family and can have their log in ids usingwhi ch they can access the website and also make use of all the facilities available There is also a feature of expert s advice on the website where users can seeksolu tions for all of their hair problems. Their retailers are stores like, Wal-Mart, K-Mart,and Target worldwide and Relia nceFresh.Spencers,More etc in India Pantene can be found in all sorts of discoun tstores, drugstores, and supermarkets Apart from this they have adopted Value Pricing strategy at different times to a djustwith the local conditions and purchasing power parity of the country.In thi sProcter & Gamble made dramatic and long-term changes in its pricing and promotion strategy during which it boosted advertising while simultaneously curbing its distribution channel deals (in-store displays, trade deals), and significantly r educing its coupon promotions. It is interesting to note that P&G's value pricing strategy regarding Pantene is quitea misnomer. During this period many stores were switching to EDLP (every d ay lowpricing) policies, which meant that consumers would save on their overall purchasewithout having to deal shop. In contrast, P&G strategy essentially was a disguisedprice increase; coupons were cut by 50%, which contributed to an incre ase in thecustomer's price paid by 20%. It is possible that P&G lowered their wh olesale price, but the retailer only enjoyed higher margins and did not pass the savings on to thecustomer. Another possibility is that retailers lowered retail prices consist ently, following P&G's decrease in wholesale price, but once promotional trade deals ar efactored in those everyday lower wholesale prices did not result in a lower tot alprice paid. For example, if P&G's old price was Rs20, but gave deals of Rs15, atwhich price 90% of purchases were made, the wholesale price equaled Rs15.7(.90 *15 + .10*20). If P&G set a "Value Price" point of Rs18, but 100% of purchaseswe were made at that price, the retailer enjoyed no cost savings-only a costincrea se. If P&G had truly offered price cuts,its sales would have been more. 83 | Page

RECOMMENDATIONS P&G has a dubious pricing strategy.In india sometimes they adopt the premium pricing and at other times they change it to value pricing.This creates confusion in the mind of customer. Our recommendation is that Pantene should stick to one strategy and develop on it. Fluctuating prices have chances to affect the mind of customers negatively.This should be avoided. P&G should keep up the efforts of bringing in more and more innovative products.This is because ultimately nothing works for a company more than its products. Some rumors about the presence of wax in Pantene shampoo affected the market.Such rumors should be severly dealt with as they affect the brand loyalty as well as market share. There were some reports which said that Pantene tests its product on animals which ultimately proves fatal to them.This created a big problem for Pantene by the environmentalists.This project recommends Pantene to go more herbal and environment friendly as it affects the company s image in the long run. Pantene is still not much known in the semi urban India.Stress should be laid on the promotion of Pantene in the interior of country as well. 84 | Page

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