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Chapter – 1

Introduction

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1.1 Meaning of Marketing Strategies

The term “marketing” has changed and evolved over a period

of time ,today marketing is based around providing continual

benefits to the customers, these benefits will be provided and a

transactional exchange will be take place.

The chartered institute of marketing define marketing as “the

management process responsible for identifying, anticipating and

satisfying customer’s requirement profitability”.

Marketing objective ,goals and targets have to be monitored and

met competitor strategies analysed ,anticipated and exceeded.

Philip Kotler defines marketing as “satisfying and wants

through an exchange process”

Within this exchange transaction customers will only exchange

what they value (money) if they feel their needs are being fully satisfied,

clearly the greater benefits provided the higher transactional value an

organization can charge.

P. Tailor of www.learnmarketing.net suggests that, “marketing is

not about providing products or services it is essentially about providing

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changing benefits to the changing needs and demand of the customers”.

Meaning of Strategy:

Strategy is central to understanding the process of strategic

management. The term strategy is derived from a Greek word strategos,

which means generalship- the actual direction of military force, as

distinct from the policy governing its deployment.

Therefore, the word strategy means the art of the military general. In

business parlance there is no definite meaning assigned to strategy. It is

often used loosely to mean a number of things. Briefly speaking strategy

refers to decision bearings on the future of an enterprise defining its

direction and scope in the long run.

Strategy may thus be defined as the pattern of an organization’s

responses to its environment over time.

Many business firms may be said to have a strategy even before there is

an explicit formulation of it. Later, management of every organization is

required to engage in active formulation of a strategy or strategic

planning. Strategy than becomes a process of decision relating to the

future of the organization. It involves consideration of basic objectives,

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major policies and the means to be employed to achieve and the means

to be employed to achieve the objectives.

Strategic Marketing:

Marketing has been defined as the management function responsible for

identifying, anticipating and satisfying customer requirements

profitably. Marketing is, therefore, both a philosophy and a set of

techniques which addresses such matters as research, product design and

development, pricing, packaging, sales and sales promotion, advertising,

public relations, distribution and after-sales service. These activities

define the broad scope of marketing and their balanced integration

within a marketing plan is known as the marketing mix. A modification

of a definition of marketing by Doyle1 suggests that marketing is the

management process that seeks to maximize returns to shareholders by

creating a competitive advantage in providing, communicating and

delivering value to customers thereby developing a long-term

relationship with them. This definition clearly defines the objectives of

marketing and how its performance should be evaluated. The specific

contribution of marketing in the organization lies in the formulation of

strategies to choose the right customer, build relationships of trust with

them and create a competitive advantage. A marketing strategy consists

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of an internally integrated but externally focused set of choices about

how the organization addresses its customers in the context of a

competitive environment. A strategy has five elements: it deals with

where the organization plans to be active; how it will get there; how it

will succeed in the marketplace; what the speed and sequence of moves

will be; and how the organization will obtain profits2. The organization

must identify the problem that its customers use its products and

services to solve. It is also necessary to identify the benefits customers

seek from using a product or service available in the market. A market

consists of all the potential customers who share a particular need or

want who might be willing and able to engage in exchange to satisfy

that need or want.

1.2 Profile of the Procter & Gamble Company

The Procter & Gamble Company (P&G) has a wide product range

covering Beauty Care, Food/Beverage, Health Care, Laundry/cleaning

& Paper brands. Established in 1837, P&G began as a small, family

operated soap and candle company in Cincinnati, Ohio. USA . From that

modest beginning, P&G has grown into a large company with on-the-

ground operations in over 70 countries and employs more than 110,000

people worldwide. Procter & Gamble markets approximately 300 brands

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to nearly five billion consumers in over 140 countries. These brands

include Tide, Ariel, Crest, Pantene Pro-V, Always, Whisper, Pringles,

Pampers, Oil of Olay, lams and Vicks. Its well known beauty care

brands include Oil of Olay, Safeguard, Zest, Clearasil, Noxzema, Secret,

Old Spice, Pantene, Vidal Sassoon, Head & Shoulders, Cover Girl and

Max Factor. P&G is a recognized leader in the development,

manufacturing and marketing of a broad range of superior quality

products.

Indian Operations:

P&G's business in India is undertaken through two companies - the

listed company Procter & Gamble Hygiene & Healthcare (PGHH) and a

100% subsidiary Procter & Gamble Home Products (PGHP). The main

businesses undertaken by PGHH are sale of feminine hygiene products

(Whisper) and anti-cold healthcare products (Vicks), and manufacture of

detergents and shampoos which are marketed through the 100%

subsidiary PGHP. The company also markets toilet soap Camay, Skin

care brand Clearasil and men's toiletry brand Old Spice. The detergent

brand Ariel, shampoo brands Pantene and Head & Shoulders and baby

care brand Pampers are marketed by PGHP.

As per the global restructure plan of the parent, the Indian operations

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will be the key sourcing base for the entire Asian requirement of P&G's

Vicks range of products. The company has therefore set up a Vicks

manufacturing unit at Goa. Similarly shampoo manufacture is to be

based in some other Asian countries and therefore detergent

manufacturing by PGHH has been discontinued wef HI FY2000. For the

listed subsidiary, Vicks and Whisper have been identified as the core

focus areas which will drive growth.

History:

William Procter, a candlemaker, and James Gamble, a soapmaker,

formed the company known as Procter & Gamble in 1837. The two

men, immigrants from England and Ireland respectively, had settled

earlier in Cincinnati and had married sisters. The two men decided to

pool their resources to form their own company, formalizing the

relationship on October 31. 1837. The company prospered during the

nineteenth century. In 1859, sales reached one million dollars. By this

point, approximately eighty employees worked for Procter & Gamble.

During the Civil War, the company won contracts to supply the Union

army with soap and candles. In addition to the increased profits

experienced during the war, the military contracts introduced soldiers

from all over the country to Procter & Gamble's products. Once the war

was over and the men returned home, they continued to purchase the
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company's products.

In the 1880s, Procter & Gamble began to market a new product, an

inexpensive, yet high quality, soap. The company called the soap Ivory.

In the decades that followed, Procter & Gamble continued to grow and

evolve. The company became known for its progressive work

environment in the late nineteenth century. William Cooper Procter,

William Procter's grandson, established a profit-sharing program for the

company's workforce in 1887. He hoped that by giving the workers a

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

Over time, the company began to focus most of its attention on soap,

producing more 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 in 1920.

In the early twentieth century, Procter & Gamble continued to grow.

The company began to build factories in other locations in the United

States, because the demand for products had outgrown the capacity of

the Cincinnati facilities. The company's leaders began to diversify its

products as well and, in 1911, began producing Crisco, a shortening

made of vegetable oils rather than animal fats. In the early 1900s,

Procter & Gamble also became known for its research laboratories,
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where scientists worked to create new products. Company leadership

also pioneered in the area of market research, investigating consumer

needs and product appeal. As radio became more popular in the 1920s

and 1930s, the company sponsored a number of radio programs. As a

result, these shows often became commonly known as "soap operas."

Throughout the twentieth century, Procter & Gamble continued to

prosper. The company moved into other countries, both in terms of

manufacturing and product sales, becoming an international corporation.

In addition, numerous new products and brand names were introduced

over time, and Procter & Gamble began branching out into new areas.

The company introduced Tide laundry detergent in 1946 and "Prell"

shampoo in 1950. In 1955, Procter & Gamble began selling the first

toothpaste to contain fluoride, known as "Crest". Branching out once

again in 1957, the company purchased Charmin Paper Mills and began

manufacturing toilet paper and other paper products. Once again

focusing on laundry, Procter & Gamble began making "Downy" fabric

softener in 1960 and "Bounce" fabric softener sheets. One of the most

revolutionary products to come 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 & Johnson had developed a

product called "Chux". Babies always wore cloth diapers, which were

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leaky and labor intensive to wash. Pampers simplified the diapering

process.

Over the second half of the twentieth century, Procter & Gamble

acquired a number of other companies that diversified its product line

and increased profits significantly. These acquisitions included Folgers

Coffee. Norwich Eaton Pharmaceuticals, Richardson-Vicks, Noxell,

Shulton's Old Spice, Max Factor, and the lams Company, among others.

In 1996, Procter & Gamble made headlines when the Food and Drug

Administration approved a new product developed by the company,

Olestra. Olestra, also known by its brand name Olean, is a substitute for

fat in cooking potato chips and other snacks. Procter & Gamble has

expanded dramatically throughout its history, but its headquarters still

remains in Cincinnati. {Source, Ohio History Central.} P&G's

dominance in many categories of consumer products makes its brand

management decisions worthy of study. For example, P&G's corporate

strategists must account for the likelihood of one of their products

cannibalizing the sales of another.

1.3 Profile of the Hindustan Liver Limited (HUL)

Hindustan Lever Ltd (HUL) is India's largest Fast Moving Consumer

Goods (FMCG) company. HUL's brands like Lifebuoy, Lux, Surf Excel,

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Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-

up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's are

household names across the country and span a host of categories, such

as soaps, detergents, personal products, tea, coffee, branded staples, ice

cream and culinary products. These products are manufactured over 40

factories across India and the associated operations involve over 2,000

suppliers and associates. Hindustan Lever Limited's distribution network

comprises about 4,000 redistribution stockists, covering 6.3 million

retail outlets reaching the entire urban population, and about 250 million

rural consumers. HUL is also one of India's largest exporters. It has been

recognised as a Golden Super Star Trading House by the Government of

India. Presently, HUL has over 16,000 employees including over 1,200

managers. Its mission is to "add vitality to life." The Anglo-Dutch

company Unilever owns a majority stake in Hindustan Lever Limited.

In the late 19th and early 20th century Unilever used to export its

products to India. This process began in 1888 with the export of

Sunlight soap, which was followed by Lifebuoy in 1895 and other

famous brands like Pears, Lux and Vim soon after. In 1931, Unilever set

up its first Indian subsidiary, Hindustan Vanaspati Manufacturing

Company, followed by Lever Brothers India Limited (1933) and United

Traders Limited (1935). The three companies were merged in

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November 1956 and the new entity that came into existence after merger

was called as Hindustan Lever Limited. HUL offered 10% of its equity

to the Indian public, and it was the first among the foreign subsidiaries

to do so. Currently, Unilever holds 51.55% equity in the company while

the rest of the shareholding is distributed among about 380,000

individual shareholders and financial institutions.

Brooke Bond entered Indian market in 1900 and in 1903 it launched

Red Label tea in the country. In 1912, Brooke Bond & Co. India

Limited was formed. Unilever acquired Brooke Bond through an

international acquisition. Similarly, Lipton's link with India date back to

1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India)

Limited was incorporated. Pond's (India) had been in Indian market

since 1947. It joined the Unilever ranks through an international

acquisition of Chesebrough Pond's USA in 1986.

The liberalization of Indian economy in 1991 and subsequent removal

of the regulatory framework allowed HUL to explore every single

product and opportunity segment, without any constraints on production

capacity. The 1990s witnessed a string of crucial mergers, acquisitions

and alliances. In 1992, the erstwhile Brooke Bond acquired Kothari

General Foods, with significant interests in Instant Coffee. In 1993, it

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acquired the Kissan business from the UB Group and the Dollops Ice-

cream business from Cadbury India. In one of the most talked about

events of India's corporate history, the erstwhile Tata Oil Mills

Company (TOMCO) merged with HUL, effective from April 1, 1993. In

July 1993, Brooke Bond India and Lipton India merged to form Brooke

Bond Lipton India Limited (BBLIL). Brooke Bond Lipton India Limited

launched Wall's range of Frozen Desserts in 1994 and by the end of the

year, HUL entered into a strategic alliance with the Kwality Icecream

Group families. BBLIL merged with HUL, with effect from January 1,

1996. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited

(NLL). The NLL factory manufactures HUL's products like Soaps,

Detergents and Personal Products both for the domestic market and

exports to India. In January 2000, as part of its divestment strategy, the

government decided to award 74 per cent equity in Modern Foods to

HUL. In 2002, HUL acquired the government's remaining stake in

Modern Foods. In February 2007, the company has been renamed to

"Hindustan Unilever Limited" to strike the optimum balance between

maintaining the heritage of the Company and the future benefits and

synergies of global alignment with the corporate name of "Unilever.

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Chapter – 2

Marketing
Strategies of P&G
& HUL

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2.1 Pricing Strategies

Major factors affecting the company's pricing policy:

(i) Corporate and marketing objective:

Whether the product is marketed with the initial objectives of capturing

maximum market share or earning maximum profits prices are

accordingly decided. Here the example of Tide and Aerial can be

quoted. Aerial was targeted at the upper segment. It was't for the

masses. With the launch of Tide, the company's aim was to target the

lower middle class.

(ii) Image sought by the firm through pricing:

the company wants to communicate to the consumer that the product it

is marketing is for the premium segment, it will adopt a policy of high

price. P&G's products in India are synonymous with quality, so people

don't perceive their products to be cheap.

(iii) Cost of manufacturing and marketing:

Sometimes the cost that the company incurs in manufacturing and

marketing a products, also gets reflected in the price. P&G relies a lot on

R&D and advertisement, so this results in raising the price of it's

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products.

(iv) Competitors pricing policy:

In FMCG sector, where there is such a stiff competition, companies

can't ignore their competitors.

P&G most of the time decides it's pricing structure based on what

Hindustan Lever Limited is doing.

Value Pricing:

It says that the price should represent a high value offer to consumers.

P&G created a stir by reducing its price of Tide detergent. To offer

value price, it underwent a major overhaul. It redesigned the way it

develops, manufacture, distributes, prices, market and sell products to

deliver better value at every point in the supply chain. Value pricing is

not a matter of simply setting lower prices on ones products compared

to its competitors. It is the matter of reengineering the company's

operation to become a low cost producer without sacrificing quality, and

lowering prices significantly to attract a large number of value

conscious customer.

Everyday Low Pricing (EDLP)

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P&G uses EDLP, where it lowers the list price of over 60% of it's

product line by 10 to 25% while cutting promotional allowances to the

trade. The price cuts leave the overall cost of the product to retailer

about the same as it would have been with the various trade allowance

discounts.

P&G argues that EDLP eliminates the problems such as deal buying,

leads to regular low prices at the retail level, and helps build brand

loyalty among consumers.

Yet the EDLP strategy has caused great controversy in the trade, which

depends heavily on promotion to attract consumer. Some retailers took

P&G products off the shelf, others cut their ads and display of the

company's brand. Retailers prefer to operate on a high/low strategy of

frequent price specials and argue that EDLP puts them at a

disadvantage.

Despite the criticism. P&G says EDLP is paying off and volume has

grown faster in it's brands that have switched to the pricing strategy.

P&G extended it's use of EDLP to international markets, including the

U.K. and Italy. P&G continues to make changes in the way sales

promotions are being used by packaged goods marketers. The company

has taken steps in recent years to simplify its promotional programme by

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cutting back on many type of promotions including bonus packs,

premiums, coupons, and cent off packs. P&G has long been a bellwether

for the packaged goods industry and its changes with regard to the use

of consumers and trade promotions are likely to crate a ripple effect

among other marketers.

Target Costing:

Pricing that starts with an ideal selling price, then targets costs that will

ensure that the price is met. Target costing reverses the usual process of

first designing a new product, determining its cost and then deciding on

the price.

P&G used target costing to price and develop its highly successful Crest

Spin brush electric toothbrush.

P&G usually prices its good at a premium. But with Crest Spinbrush,

P&G reversed its usual thinking, it started with an attractive low market

price, and then found a way to make a profit at that price.

Tared costing pricing has made Crest spin brush, one of P&G most

successful new products ever. It has now become U.S.A 's best selling

toothbrush.

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Competition based pricing:

Setting prices based on the prices that competitors charge for similar

products. .P&G usually pay less attention to its own cost or to demand.

The firm might charge the same as, more than, or less than its major

rival-the HUL.

2.3 Product Decision:

It markets the leading brands in 19 of the 39 categories in which it

competes .Its market leadership rest on several principle.

Customer Knowledge:

P&G studies its customer -both final consumers and the trade-through

continuous marketing research and intelligence gathering, it prints its

toll free 800 number on every product.

Long term outlook:

It takes the time to analyze each opportunity carefully and prepare the

best, then commits itself fore the long run to make this product a

success, it struggled with Pringles potato chips for almost a decade

before achieving market success.

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Product innovation:

It is an active product innovator, devoting $ 1.2 billion to R&D, an

impressively high amount for a packaged goods company, it holds more

than 2500 active patents protecting 250 proprietary technologies. Part of

it's innovation process is developing brands that offer new customer

benefits, P&G spent 10 years research in and developing the first

effective anti-cavity toothpaste, Crest

Quality strategy:

P&G designed products of above average quality and continuously

improves them. When P&G announces "new and improved" it means it.

Lint extension strategy:

It produces its brands in several size and forms. This strategy gains more

shelf space and prevent competitors from moving in to satisfy unmet

market needs.

Brand extension strategy:

P&G often uses its strong brands names to launch new products. The

ivory brand has been extended from a soap to a liquid soap, a

dishwashing detergent, and a shampoo. Launching a new product under

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a strong existing brand names give the mew brand instant recognition

and credibility with much less advertising outlay.

Multi brand strategy:

It markets several brand in the same product category. It produces eight

brands of hand soap and six shampoo brands. Each brand meets a

different consumer want and competes against specific competitors

brands, each brand manager competes for company recourses. More

recently, P&G has begun to reduce its vast array of products, sizes,

flavors, and variety to bring down costs.

Manufacturing efficiency and cost cutting:

P&G reputation as aggregate marketing company's matched by its

excellence as a manufacturing company, it spends large sums

developing and improving production operations to keeps it's cost

among the lowest in the industry.

Product Management:

P&G has product management organization. Here the product manager

develops and implement strategy and marketing programme for a

specific product or brand brand .It first appeared in P&G in 1929. A new

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company soap, Camay was not doing well, and a young P&G executive

was assigned to give his exclusive attention to developing and

promotion this product .he was successful and the company soon added

other product managers.

Now P&G is shifting towards customer management-moving away from

just managing just products or brand profitability and towards managing

customer profitability and customer equity.

Brand Management System:

P&G originated the Brand management system in which one executive

is responsible for each brand. The system has been copied by many

competitors. Recently it modified it brand management system into

category management system. This helps to sharpen strategic focus on

key consumer needs and competition in the category.

P& G makes several brands of laundry detergent, each with a separate

brand identity, at the other extreme are products capable of high

differentiation, such as automobiles, commercial buildings, and

furniture.

The company's operations are into the following field:

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 Health, baby, and family care

 Household care

 Beauty care

 Chemicals

 Global operations

Brands

Thirteen of P&G's brands have more than a billion dollars in sales:

Pampers*, Tide (known in Brazil as Ace). Ariel. Always*, Pantene.

Charmin. Bounty*, lams. Crest Folgers. Pringles. Head & Shoulders.

Febreze* and Downy. Other well known P&G brands include Ivory

Soap. Oil of Olav. Max Factor. Bold. Paz. Flash. Hugo Boss. Zest.

Fairy. Wella and Lacoste.

Indian Brands of Procter & Gamble:

Fabric Care

Procter & Gamble has two of its world-leading detergents - Tide and

Ariel, in India to cater to the main concerns of the Indian households,

namely, outstanding whiteness and stain-removal.

• Ariel Front-O-Mat

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• Ariel_2 Fragrances

• Tide Detergent

• Tide Bar

Hair Care

P&G's Beauty Business is over US$ 10 Billion in Global Sales, making

it one of the world's largest beauty companies. The P&G beauty

business sells more than 50 different beauty brands including Pantene®,

Olay®, SK-11®, Max Factor®, Cover Girl®, Joy®, Hugo Boss®,

Herbal

Essence and Clairol Nice ‘n' Easy®. In India, P&G's beauty care

business comprises of the world's largest selling shampoo, Head &

Shoulders, the world's No. 1 Anti-dandruff and Rejoice-Asia's No. 1

Shampoo.

Procter & Gamble is committed to making every day in the lives of its

consumers better through the superior quality of its products and

services.

• Pantene Pro V

• Head & Shoulders

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• Rejoice

Baby Care

• Pampers

Why Tide, when Ariel's there?

In a market category that is growing at a snail's pace, is there place for

another brand new brand?

Why launch another brand in a segment when you already have one,

especially when you have worked very hard over the years at making

the existing brand a success?

These are the questions that most practitioners of marketing have been

asking recently! The new brand in question is Tide, which Procter &

Gamble (P&G) recently launched in India. And, it has been launched in

the premium segment of the detergent powder category, where the

company already has Ariel (P&G defines premium in the detergents

category as being any product over Rs 70 per kg). Stranger still, Tide

and Ariel are seemingly seen by the company as interchangeable and are

normally not launched in the same market anywhere in the world. So in

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the US, Tide rules the roost but there is no Ariel. In Europe, Ariel is

what the company offers; Tide has not been launched in any country out

there. In Japan, there's only Ariel.

Moreover, by P&G's own estimates, the overall Indian urban detergents

market has been growing at a dismal pace of just over one per cent per

annum. But, points out Mr. Shailesh Jejurikar, marketing director at

P&G India, the premium detergents market has been growing at three-

to-four per cent in value terms. "And compacts have been growing at

around 13 per cent (in value terms); Ariel, in fact, has registered a 14

per cent growth over the last quarter." He adds that over the last quarter,

the maximum growth in the detergents category has been from Surf

Excel (a product from competitor Hindustan Lever's) and Ariel, both

compacts.

A Portfolio of Brands

Mr. Jejurikar responds, "In some categories, it helps to have a portfolio

of brands. While it may be true that in the US, P&G has only Tide, there

are different variants to it. And there are other loads from the P&G

stable — Cheer, Bold, Gain. In Europe, there is an additional brand in

Daz. besides Ariel. But in Saudi Arabia and Egypt, both brands exist

side by side. In Saudi, Tide and Ariel have a 60:40 share of the two

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brands' total turnover. In Egypt, it's the reverse."

ft all depends, he says, on one question: is there a consumer need? In

India, the premium segment is growing. There is a specific consumer

need for great quality of cleaning – a dimensionalisation of whiteness.

Tide has been launched to address that-the quality of whiteness in

cleaning.

bi that, P&G is drawing a distinction between Tide and Ariel. In all

markets where both brands have been launched, says Mr. Jejurikar,

Ariel stands for the best in cleaning. It will keep redefining the standards

of cleaning plus something more. Could be germs-free. Or as we had

advertised sometime back, no pilling. Ariel will always give the best in

performance; it will talk about the best in global technologies, helping

the consumer redefine standards in cleaning. For the non-Ariel

consumer in India, yellowing of whites will be addressed by Tide. So

Tide and Ariel are not exactly interchangeable.

In the pricing of the two brands too, P&G has drawn a distinction. While

Ariel comes for Rs 145 per kg. Tide's price is Rs 120. For a half kg,

Ariel comes for Rs 80 and Tide, Rs 68. For 200 gm, Tide is priced at Rs

30 against Ariel's Rs 36. And unlike the US. there are no plans, in the

immediate future, for variants in Tide. "We have launched the regular

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Tide here," says Jejurikar. "As of now, there are no plans for launching

variants. If specific consumer needs come up in the ruture, we may

consider variants."

More Market Share

Then there is the issue of a market share for P&G. In India, says Mr.

Jejurikar, P&G still has three-fourth way to go in powder detergent

market dominance. In Saudi, it commands 70 per cent of the market. In

some other markets, it enjoys around 40-to-45 per cent share. "In India,"

he admits, "we have a fair way to go." And a portfolio of brands, feels

P&G, may be the answer. For example, what used to be Ariel Super

Soaker in the regular powder detergents segment, has now become

Gain, priced at Rs 49 per kg. "Even in the US, Gain is offered more as a

value proposition."

Consumers in India haven't exactly been showing predictable patterns in

product usage and brand loyalty. Their upgrades and yes, even

downgrades, have been unpredictable in the recent years. Given this,

isn't there a possibility that Ariel users may shift to Tide? "Yes. there is

that possibility," admits Mr. Jejurikar. "But our challenge is, can we

bring more people into the P&G detergents fold? Ariel has to find new

ways of bringing in consumers. As the year unfolds, we have strong

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plans for both Tide and Ariel. You may even wonder at the high levels

of activity on Ariel. Over the next 12 months, we have planned strong

action on Ariel to ensure that its consumers will not want to switch to

another brand."

And what about competition. Won't it respond as strongly?

"Competition may come up with special direct offers," Mr. Jejurikar

guesses, declining to comment further. Incidentally, if you have been

watching detergent ads on television, there seems to be some

competitive action on.

Tide's advertising has shown the offer of this unnamed product for

maximum whiteness effect. The consumer tries the product and lo and

behold, she gets the promised whiteness. After which the product's

brand name is revealed as Tide.

Cut to Hindustan Lever's Rin Supreme ad where this unnamed detergent

powder that is offered for trial does not provide that super whiteness.

And then along come this woman talking about the super whiteness that

Rin Supreme offers, while the man who had offered the unnamed

detergent gets pushed to the background by a group of women talking

about the excellent performance of the Hindustan Lever brand.

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Individual Marketing

P&G does practices individual marketing .i.e tailoring products and

marketing programmes to the needs and preference of individual

customers

Customization

Reflect.com is personalized site of P&G where consumers can order

cosmetic products according to their skin and hair types. Here people

formulate their own beauty products..

e- marketing

P&G has created intranet to help employees communicate with each

other and to access information found in the company's computer. e.g.

some 14000 employees regularly log on to P&G intranet. mNet, to

receive training and to research marketing news from around the world.

source: Koller Phillip,2004 edition.

2.4 Promotional Strategies

In the year 2001, P&G was the 2nd largest advertiser after General

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Motors Corporation.

Promotion:

Ad spending in 2001: $2540,6 millions.

Kev Characteristics of Promotional strategies:

Pull strategy:

P&G insists on a pull strategy.

If the strategy is successful, consumers will ask their retailers for the

products, the retailer will ask the wholesaler, and the wholesaler will ask

the producers. It involves the manufacturer using advertising and sales

promotion to induce consumers to ask intermediaries for the product,

thus inducing the intermediaries to order it. Pull strategy is especially

appropriate when there is high brand loyalty and high involvement, in

the category, people perceive differences between the brands, and

people choose the brand before they go tot the store

Heavy advertising and media pioneer:

It spends more than 3 billions dollars on advertising a year. A pioneer in

using the power of television to create strong consumers awareness and

31
preferences, it is now taking a leading role in building its brand on the

web., in 1998, it hosted a high powered industry summit meeting that

brought together some 400 top executive from internet and consumer

marketing companies.

Aggressive sales force:

P&G sales force is named one of the top 25 sales force by sales and

marketing management magazine .its sales force teams has got close ties

with its retailers, notably Walmart.

Effective sales promotions:

Its sales promotion department counsels its brand manager on the most

effective promotions to achieve particular objectives. The department

develops an expert sense of these deals effectiveness under varying

circumstances. At the same time, P&G tries to minimize the use of sales

promotion and move toward everyday low price.

Agency Compensation System:

Incentive based compensation:

P&G which has traditionally been a heavy user of television advertising,

is one of the largest major advertiser to move from the standard 15%

32
commission system, in 2000 P&G implemented major change in it's

compensation structure from one based entirely on media commissions

to one based entirely on sales based incentives.

The company is demanding more accountability from their agencies and

tying agency compensation to performance through some type of

incentive based system. one of the reasons for the change in

compensation system is to encourage agency to focus less on expensive

commissionable media such as TV and magazine and make use of other

IMC tools such as direct mail, event marketing, internet, PR, etc.

Advertising creativity:

P&G focuses a lot on creativity in its advertising messages. Creativity is

the ability to generate fresh, unique, and appropriate ideas that can be

used as solutions to communication problems.

Masius Benton &Bowles agency developed to guide its creative efforts

and help achieve superior creativity consistently for P&G.

Slice of life Advertisement:

For many year4s, P&G was known for its reliance on slice of life

advertising executions. In 1980, two-thirds of the company's

commercial used either the life or testimonial format.

It is a widely used advertising format, particularly for packaged goods

33
products, which is generally based on problem/solution approach, this

type of ad portrays a problem or conflict that consumers might face in

their daily lives.

Slice of life executions are often critis4ed for being unrealistic and

irritating to watch because they are often used to remind consumer of

problem of a personal nature, such as dandruff, bad breath, body odour

and laundry problem.

However, P&G has begun to use humour, animation, and other less

traditional execution styles and now relies less on slice-of-life.

Coupon:

P&G has broadened their use of account specific direct mail couponing,

in which coupons are cobranded with individual retailers but can be

used by consumers at any retail store. They began using account specific

couping with tide detergent and has broadened the programme to

include mailings for a number of brands.

Direct response television marketing:

Here P&G airs television spots, often 60 or 120 seconds long, that

persuasively describes a product and gives customer a toll free number

for ordering .television viewer often encounter 30 minute advertising

34
programmes , or informercials, for a single products the company used

informercials Swiffer Wetlet and Dryel.

P&G-A click and mortar company:

P&G has added e-marketing to their operations. The company's site

enable the customers to order products online Selling on web, helps

built deeper, more personalized relationships with customers large and

small, the best benefit is that it helps the company to reach customers all

over the globe. The site is very user friendly. P&G has its own intranet

through which it remains connected with its employees and customers.

The Decentralized System:

Procter & Gamble with multiple divisions and many different products,

it is very difficult to mange all advertising, promotional, and other

function through a centralized system. So it follows a decentralized

system with separate manufacturing, R&D, sales and marketing

department for various division, product lines or businesses. P&G assign

each product or brand to a brand manager, who is responsible for total

management of the brand, including planning, budgeting, sales and

profit performance.

Under this system, the responsibility and functions associated with

advertising and promotions are transferred to the brand manager, who

35
works closely with the outside advertising agency and other marketing

communications specialist as they develop the promotional programme.

At times each brand has it's own ad agency and may compete against

other brands of the company. Here the example of tide and aerial can be

quoted, as both are competitor of each other to some extent.

P&G has an additional layer of management above the brands managers

to coordinate the efforts of all brand manager handling a related group

of products. Here they include category managers as well as brand and

advertising managers.

An advantage of the decentralized system is that each brand receives

concentrated managerial attention, resulting IB raster response to both

problems and opportunities .The brand manager system is also more

flexible and makes easier to adjust various aspects of advertising and

promotional programme, such as creative platforms and media and sales

promotion schedules.

36
37
Category Management System at Proctor & Gamble

2.5 Place Strategies:

Customer Relationship Management

A central goal of every business is to serve its customers. For as long as

38
there have been merchants, success or failure has hinged on this simple

rule. Customer Relationship Management (CRM) is a way of using

technology to do just that.

There are many pieces of software available that offer customer

relationship management features, but in reality. CRM goes beyond

software implementation. It's a business strategy that often involves

using multiple pieces of software, as well as implementing policies that

promote (1) the collection of customer information, and (2) the use of

that information by individuals throughout the company in order to

maximize customer service and increase sales.

The customer relationship management system is an enterprise system,

which means that it spans multiple departments. Virtually all

departments within a corporation have at least some indirect access to

customers, or customer information; the goal of CRM is to collect that

information in a central repository, analyze it, and make it available to

all departments. For example, a company's call center may have a

"screen pop." a small application that is connected to the phone system.

This application, which is a type of CRM, automatically senses who is

calling, and by the time the agent answers the phone, produces a screen

on the computer that lists important information about the caller, such as

39
what they have purchased in the past, what they are likely to buy in the

future, and what products the company may have available that would

go well with what the customer has already bought. This "screen pop" is

made up of several bits of information from different databases; it may

draw on information from the accounting department to show the agent

what their current balance may be; it may draw on information from the

sales department to show what has been purchased recently, and it may

draw on information from the credit department to show the agent what

terms can be offered.

CRM AND JP&G:

Improving customer service at P&G:

CRMs are claimed to improve customer service. Proponents say they

can improve customer service by facilitating communication in several

ways:

 Provide product information, product use information, and

technical assistance on web sites mat are accessible 24/7.

 Help to identify potential problems quickly, before they occur.

 Provide a user-friendly mechanism for registering customer

complaints (complaints that are not registered with the company

40
cannot be resolved, and are a major source of customer

dissatisfaction).

 Provide a fast mechanism for handling problems and complaints

(complaints that are resolved quickly can increase customer

satisfaction).

 Provide a fast mechanism for correcting service deficiencies

(correct the problem before other customers experience the same

dissatisfaction).

 Identify how each individual customer defines quality, and then

design a service strategy for each customer based on these

individual requirements and expectations.

 Use internet cookies to track customer interests and personalize

product offerings accordingly.

 Use the internet to engage in collaborative customization or real-

time customization.

 Provide a fast mechanism for managing and scheduling followup

sales calls to assess post-purchase cognitive dissonance,

repurchase probabilities, repurchase times, and repurchase

frequencies.

 Provide a fast mechanism for managing and scheduling

maintenance, repair, and on-going support (improve efficiency

41
and effectiveness).

 Provide a mechanism to track all points of contact between a

customer and the company, and do it in an integrated way so that

all sources and types of contact are included, and all users of the

system see the same view of the customer (reduces confusion).

 The CRM can be integrated into other cross-functional systems

and thereby provide accounting and production information to

customers when they want it.

Improving customer relationships

CRMs are also claimed to be able to improve customer relationships.

Proponents say this can be done by:

 CRM technology can track customer interests, needs, and

buying habits as they progress through their life cycles, and tailor

the marketing effort accordingly. This way customers get exactly

what they want as they change.

 The technology can track customer product use as the

product progresses through its life cycle, and tailor the service

strategy accordingly. This way customers get what they need as

the product ages.

42
 In industrial markets, the technology can be used to micro-

segment the buying centre and help coordinate the conflicting and

changing purchase criteria of its members

 When any of the technology driven improvements in

customer service (mentioned above) contribute to long-term

customer satisfaction, they can ensure repeat purchases, improve

customer relationships, increase customer loyalty, decrease

customer turnover, decrease marketing costs (associated with

customer acquisition and customer "training"), increase sales

revenue, and thereby increase profit margins.

Partner Relationship Management:

When it comes to creating customer value and building strong customer

relationship, P&G know that they can't go all alone without the help of

their partner .They must work closely with a variety' of marketing

partner, so they must also be good at partner relationship management.

P&G work closely with partners in others company's departments and

outside the company to jointly bring greater value to customers.

P&G assigns customer development teams to each of it's major retailers

accounts. These teams consisting of sales and marketing people,

43
operation specialists, market and financial analyst, and others-

coordinate the efforts of many P&G departments towards helping the

retailer be more successful.

Marketing Information System:

People. equipment, and procedure to gather, sort, analyze, evaluate, and

distribute needed, timely, and accurate information to marketing

decision makers.

At P&G MIS primarily serves the company's marketing and other

manufacturing needs. It also provides information to external partners,

such as suppliers, resellers, or marketing services agencies .e.g. Walmart

gives P&G access to information on customer buying patterns and

inventor, levels.

A good MIS balances the information users would like to have against

what they really need and what is feasible to offer some managers will

ask for whatever information they can get without thinking carefully

about what they really need.

44
Marketing managers and other information users

Vertical Marketing System:

A VMS comprises the producer, wholesaler and retailer acting as a

unified system. One channel member, the channel captain owns the

other or franchises them or has so much power that they all cooperate.

The channel captain can be the producer, the wholesaler, or the retailer.

VMS arose as a result of strong channel members attempt to control

channel behavior and eliminate the conflicts that result when

independent channel members pursue their own objectives. They

achieve economies through SITE, bargaining power, and elimination of

45
duplicated services.

Administered VMS:

Procter & gamble follow Administered VMS.

A system that coordinates successive stages of production and

distribution, not through common ownership or contractual ties, but

through the size and power of one of the parties. Here manufactured of a

dominant brand are able to secure strong trade cooperation and support

from reseller. P&G is able to command high level of cooperation from

their resellers in connection with displays, shelf space, promotions, and

price policies.

46
Chapter – 3
Research
Methodology
&
Objective

47
Research Methodology

3.1 Objective of the Study:

1. The main objective was to understand the brief strategies adopted

by Procter & Gamble.

2. To study the product, price, place and promotional strategies

undertaken by P&G.

3. To compare its product with that of its arch rival Hindustan lever

limited, and find out who fares well on different parameters.

3.2 Methods of data collection:

The study is based on both primary as well as secondary data.

For the first part of my dissertation i.e. to study the marketing strategies

of P&G, the data was completely secondary, the information was

collected from P&G's website, books and newspapers. For comparing

products of P&G and HUL the information was primary. 200

respondents were asked to give their responses.

Data analysis:

The whole information about the company's strategies is collected and

shaped according to the need of the study. After going through all the

information collected the conclusion are made.

48
The analysis for comparing the products of the two company is done on

the basis of the questionnaire, which is given to 200 people. It is 5-point

scale and calculations are done accordingly. The findings are computed

and based on the information thus generated, results are given.

3.3 Limitations:

In spite of precautions taken, there are always some shortcomings. Some

of them were unavoidable. They are:

1. Due to paucity of time and limits, all aspects of strategies adopted

by Procter & Gamble cannot be undertaken. There was a scope of

more detailed study.

2. There was no interaction with any professional of the company

and so some mount of practical approach is missing.

3. The comparisons of products was based totally on the answers

given by the respondents.

4. The sample size was 200, which again hinders actual results

5. Due to paucity of time and limits, all aspects of strategies adopted

by Procter & Gamble cannot be undertaken. There was a scope of

more detailed study.

6. There was no interaction with any professional of the company

and so some amount of practical approach is missing.

49
7. The comparisons of products was based totally on the answers

given by the respondents.

8. The sample size was 200, which again hinders actual results

50
Chapter – 4
Data Analysis
&
Interpretation

51
1. How do you find the price of the following brands?

Very Expensive Moderate Cheap Very cheap


expensive
Tide 0 22 108 72 8
Surf 36 82 67 15 0
Pantene 81 108 11 0 0
Clinic 0 54 47 83 16

120

100

80

60

40

20

0
Tide Surf Pantene Clinic

Very expensive Expensive Moderate


Cheap Very cheap

52
2. How is the quality of these brands?

Worst Bad Neutral Good Excellent


Tide 0 6 55 90 51
Surf 0 4 9 61 128
Pantene 6 35 46 74 39
Clinic 23 38 37 66 36

140
120
100
80
60
40
20
0
Tide Surf Pantene Clinic

Worst Bad Neutral Good Excellent

53
3. How is the packaging the following brands?

Very bad Bad Normal Good Very good


Tide 0 2 37 104 57
Surf 0 6 28 92 74
Pantene 0 0 58 91 51
Clinic 0 2 60 94 44

120

100

80

60

40

20

0
Tide Surf Pantene Clinic

Very bad Bad Normal Good Very good

54
4. How is smell/perfume of the following brand?

Very bad Bad Normal Good Very good


Tide 0 0 30 84 86
Surf 0 0 28 92 80
Pantene 0 0 21 106 73
Clinic 0 0 10 81 109

120

100

80

60

40

20

0
Tide Surf Pantene Clinic

Very bad Bad Normal Good Very good

55
5. How do you find the foaming capacity of the following brands?

Very bad Bad Normal Good Very good


Tide 0 10 56 61 31
Surf 0 67 56 76 61
Pantene 0 18 58 56 28
Clinic 0 24 88 64 24

100
90
80
70
60
50
40
30
20
10
0
Tide Surf Pantene Clinic

Very bad Bad Normal Good Very good

56
6. Do you find the ads of the following brands informative?

Very bad Bad Normal Good Very good


Tide 6 20 67 82 23
Surf 0 8 74 80 38
Pantene 0 16 78 80 26
Clinic 0 90 63 92 35

100
90
80
70
60
50
40
30
20
10
0
Tide Surf Pantene Clinic

Very bad Bad Normal Good Very good

57
7. Do you find the ads of the following brands attractive?

Very Unattractiv Neutral Attractive Very


unattractiv e attractive
e
Tide 0 4 34 92 70
Surf 0 0 22 82 96
Pantene 0 14 28 76 82
Clinic 0 7 21 80 92

120

100

80

60

40

20

0
Tide Surf Pantene Clinic

Very unattractive Unattractive Neutral


Attractive Very attractive

58
8. Do you agree that the brand offers a very product line?

Strongly Disagree Neither Agree Definitely


disagree agree nor agree
disagree
Tide 65 116 16 3 0
Surf 0 0 23 92 85
Pantene 90 86 14 10 0
Clinic 0 0 10 102 88

140

120

100

80

60

40

20

0
Tide Surf Pantene Clinic

Strongly disagree Disagree


Neither agree nor disagree Agree
Definitely agree

59
9. How is cleaning action of the following brand?

Least Ineffective Neutral Effective Very


effective effective
Tide 0 6 34 96 64
Surf 0 0 12 86 102
Pantene 0 27 46 84 43
Clinic 0 35 46 86 35

120

100

80

60

40

20

0
Tide Surf Pantene Clinic

Least effective Ineffective Neutral


Effective Very effective

60
10. Do the brands given you the best deal for your money?

Definitely No Neutral Yes Definitely


No Yes
Tide 0 4 17 81 98
Surf 0 0 44 86 70
Pantene 0 23 41 70 66
Clinic 0 17 20 81 82

120

100

80

60

40

20

0
Tide Surf Pantene Clinic

Definitely No No Neutral Yes Definitely Yes

61
11. Do the brands reminds you of its parent company?

Definitely No Neutral Yes Definitely


No Yes
Tide 88 92 6 14 4
Surf 68 77 6 45 4
Pantene 91 74 20 15 0
Clinic 70 56 31 43 0

100
90
80
70
60
50
40
30
20
10
0
Tide Surf Pantene Clinic

Definitely No No Neutral Yes Definitely Yes

62
Chapter – 5

Finding

Finding

63
Sample size=200

As the scale was based on Likert scale, the analysis is done

accordingly. Each statement has 5 options. The options which had

the greatest frequency represented that statement

1. Price:

Tide was found cheaper as compared to Surf. The first question which

was asked from the respondents was about the price of the following

brands.

In case of Tide, the maximum response which came was moderate. 108

people felt that Tide is moderately priced. Surf was found to be

expensive as compared to Tide. The highest response in case of surf was

from 82 people who found the brand to be expensive.

In case of shampoos, Pantene was found to be expensive as 108 people

voiced their opinion. Clinic was found to be cheap as 84 was the

maximum number of people who felt so.

64
2.Quality:

The quality of Surf was better as compared to Tide.

Quality wise, Tide was found to be good, he category for good has the

highest frequency as 90 people opted for it. Here HUL has an upper

hand when it comes to quality as 128 people felt that Surf was of

excellent quality.

In case of shampoos, Pantene scored better than Clinic. 74 people found

Pantene to be of good quality., while 66 people agreed that Clinic is of

good quality.

3. Packaging:

The packaging of almost all the brands were seen more or less as the

same in front of the respondents. Good got the highest frequency in all

the brands.

The packaging of Tide was found to be of good quality. 104 people

found it good, as compared to surf, which got the score of good from 92

respondents.

The scores of Pantene and Clinic was close enough as 90 people found it

good as compared to clinic which 94 people found good.

65
4. Smell:

Most of the brands has an appealing perfume. Respondents liked the

smell of the given brands. The highest frequency in this segment for

Tide detergent was very good. The response came from 86 people. In

case of Surf, respondents found the smell to be good enough, as 92 was

maximum response in this category, here 80 people had ranked the

smell to very good. In case of Pantenel06 respondents found the smell to

be good, as compared to Clinic where 110 respondents found the smell

to be very good.

5. Foaming capacity:

The foaming capacity of all the brands were more or less same.

The foaming capacity in case of tide was found to be normal as this was

the highest frequency.

96 people found it to be normal. In case of surf 76 respondents found the

foaming capacity to be good.

For both Pantene and Clinic, normal was the highest frequency with 98

and 88 people voting for it respectively.

6. Information in ads:

Respondents did not find the ads much informative in case of shampoo.

For both Surf and Tide the ad was informative.


66
82 people found the commercial of tide to be informative as compared

to 80 people in case of Surf. The ad of Pantene was also found to be

informative. 80 respondents gave their view in this regard. In case of

clinic there was a small gap between informative and less

informative.92 found the ad to be informative while 90 people also

found it less informative.

7. Attractiveness in ads:

Respondents founded the ad of Surf much attractive as compared to

Tide. 92 respondents found the advertisement of Tide to be attractive,

while 96 people found the ad of Surf to be very attractive. In case of

Pantene 82 people found the ad to be very attractive, while 92

respondents found the ad of Clinic to be very attractive.

8. Product line:

As Tide has no product variation, so Surf surpassed it.

The major difference between Tide and Surf springs over here.105

people disagree that Tide offers a vast product line. In case of surf, 87

agreed that it offers a vide product line. 91 people definitely agree that

Pantene offers a vast product line, as compared to 102 people who agree

in case of Clinic.

9. Cleaning action:

67
The quality of Surf was much better as compared to Tide.

The cleaning action of Tide was found to be effective as this was the

highest frequency. 96 respondents gave their view in this regard. Surf

was found to be very effective by 103 people. Pantene was found

effective by 84 respondents as compared to Clinic where 87 found it

effective. Pantene was found to be very effective by 44 people as

compared to Clinic where only 33 respondents voted for it.

10.Best deal for money:

Tide definitely gave the best deal to it's customers. This is because f the

fact that Tide is comparatively cheaper than Surf and is also of good

quality. 98 respondents gave their view as definitely yes as compared to

Surf where only 97 people gave their answer &syes. The definitely yes

option in case of Surf was given by 70 respondents..69 respondents

voted for yes in case of Pantene. The answer was definitely yes in case

of Clinic, which had a score of 81 people.

11.Reminds you of the parent brand:

Most of the people don’t know what is the parent company of Tide.

87 people gave their answer as definitely no when it comes to know the

parent company of Tide.

In case of Surf it was no. For no category the number of response was 77

68
people. Pantene also got the answer as definitely no by 91 people, as

compared to Clinic where the answer was 70 who gave no as the answer.

69
Chapter – 6
Conclusion

70
Conclusion

Based on the analysis done, it can be concluded that the price of Tide

was seen to be priced moderately by 52% respondent. Surf was seen as

an expensive brand by 40% of the respondent. In case of shampoo

category, it was found that Pantene is viewed as an expensive brand by

54% people, while Clinic was seen as cheap brand by 42% of the

respondents. Thus most people see Pantene as an expensive brand while

Clinic is considered to be low priced.

When it comes to the quality of the brand, it was concluded that 45 %

respondents found Tide to be of good quality, while Surf was seen as an

excellent brand by 64% of the respondents. The quality of Pantene was

viewed as good by 37% respondents, while Clinic was considered as

good quality shampoo by 33% respondents.]

The packaging of Tide was found good by 51 % respondents, while

Surfs packaging was also found good by 45% .the packaging of both

Pantene as well as Clinic was found out to be good, as 45% and 47% of

respondents agreeing to it.

When it comes to the smell/perfume of all these brands, it was found

that Tide had a very good smell, as 43% people found it so. The smell of

Surf detergent was found good by 45% of people. Pantene was also

71
found to had a good smell by 53% respondents while Clinic was

perceived to have a very good smell by 55% people.

The foaming capacity of tide was found to be of normal quality by 49%

respondents, while Surf had a good foaming capacity, as 38%

respondents found it so. both Pantene as well as Clinic also had good

foaming capacity.49% and 44% respondents agreeing to it.

When it comes to how informative the ads of Tide and Surf are, it was

found that both the brands ads were informative, as 42% and 40% of the

respondents giving their view for it.81 % of the respondents founded the

ads of Pantene to be informative, while 46% founded the ad of Clinic to

be informative.

46% of the respondents founded the ad of Tide to be attractive, while

the ad of Surf was found to be very attractive by 48% of the

respondents. The ads of Pantene as well Clinic was also found to very

attractive by 46% and 41 % of respondents respectively.

Tide fared very badly when it comes to offer vast product lme.58%

respondents disagree, that it offers a vast product line. 46% respondents

agree that Surf offers a vast product line. 45%respondents definitely

agree that Pantene has vast product lines, while 51 % agree with Clinic.

The cleaning action of Tide was found to be effective by

48%respondents, while Surf was found to very effective by 51% people.

72
The cleaning action of both Pantene as well Clinic was found to be

effective by 42% and 43% respondents respectively.

Tide definitely gave a best deal for money to 49% respondents, while

43% respondents gave yes as their answer for Surf detergent. The

respondents said definitely yes to both Pantene and Clinic as 33% and

46% of the respondents agreed to it.

When it comes that the respondents remember the parent company of

these brands, then the performance was found to be very poor. None of

the brands got a positive response. 46% of respondents said no for Tide,

while 44% said no to Surf. The respondents said definitely no to both

Pantene as well as Clinic.46% said it for Pantene. while 35% said so for

Clinic.

P&G of lately, keeping in view the challenge of the global market,

maximizing team performance, focusing on core competencies, meeting

the demand of demanding customer, felt the need of improving both

supplier and customer relationship.

The main goal of the company is to satisfy it's customers. It is one of the

leading companies in maintaining customer relationship management

(CRM). The tools adopted by P&G are world class-Switching from

brand management to category management system has led to better

management of brands. P&G has become synonymous with every day

73
low pricing (EDLP).this has increased it's market share as well as

profits.

Distribution is also one of it's greatest strength. It follows the

administered vertical marketing system. It has got very well relationship

with some of it's bulk buyers like Walmart. Advertisement, mainly T.V.

ads has been the company's main promotional strategy. R&D of the

company continues to support the company's business by developing

innovative products and process to cater to consumers needs and

preferences.

Thus the challenge before P&G is to face it's arch rival HUL. It can do

so by launching brands which have more mass appeal.

In spite of the few shortcomings, P&G is a household name and most of

the consumers have a high regard for the company's product. The

products are synonymous with quality and effectiveness.

74
Appendix

75
Bibliography

1. Kotler Philip, Marketing Management, Pearson education,

2004.

2. Belch & Belch, Advertising and Promotion, Tata McGraw

Hill, 2003.

3. www.pg.com

4. www.blonnet.com

5. www.marketingprofs.com

6. Economics Times

76
QUESTIONNAIRE
Dear Respondent
I am conducting a survey about comprising Proctor & Gamble’s product with that of
Hindustan Lever Limited (HUL) for my dissertation work of PGDMM programme under the
supervision of Dr. Jamal Farooqui. The information supported by you will be used for
academic purpose and will be kept confidential.
With thanks
Ghulam Mustafa Alvi
Department of Business Administration, AMU, Aligarh

P & G Products: Tide and Pantene HUL Product: Surf and Clinic

1. How do you find the price of the following brands?


Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= Very expensive, 2=Expensive, 3 = Moderate, 4 = Cheap, 5 = Very cheap

2. How is the quality of these brands?


Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= Worst, 2=Bad, 3 = Moderate, 4 = Good, 5 = Excellent

3. How is the packaging the following brands?


Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= very bad, 2=Bad, 3 = Normal, 4 = Good, 5 = Very good

77
4. How is smell/perfume of the following brand?
Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= very bad, 2=Bad, 3 = Normal, 4 = Good, 5 = Very good

5. How do you find the foaming capacity of the following brands?


Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= very bad, 2=Bad, 3 = Normal, 4 = Good, 5 = Very good

6. Do you find the ads of the following brands informative?


Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= least informative, 2=Less informative, 3 = Neutral, 4 = Informative, 5 = Very informative

7. Do you find the ads of the following brands attractive?


Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= Very unattractive, 2= Unattractive, 3 = Neutral, 4 = attractive, 5 = Very attractive

8. Do you agree that the brand offers a very product line?


Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= Strongly disagree, 2= Disagree, 3 = Nand, 4 = Agree, 5 = Definitely Agree
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9. How is cleaning action of the following brand?
Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= Very ineffective, 2= Ineffective, 3 = Neutral, 4 = Effective, 5 = Very effective

10. Do the brands given you the best deal for your money?
Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= Definitely No, 2= No, 3 = Neutral, 4 = Yes, 5 = Definitely Yes

11. Do the brands reminds you of its parent company?


Tide : 1 2 3 4 5
Surf : 1 2 3 4 5
Pantene : 1 2 3 4 5
Clinic : 1 2 3 4 5
1= Definitely Yes, 2= Yes, 3 = Neutral, 4 = No, 5 = Definitely No

Demographic Information:

1. Age:……………………………………………………………………………………..
2. Profession: ………………………………………………………………………………
3. Salary: …………………………………………………………………………………..

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THANK
YOU

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Topic: Comparative study of Proctor & Gamble’s product with that of
Hindustan Lever Limited (HUL)

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