STRATEGIC MANAGEMENT

Strategic Report on Procter & Gamble

Presented By :
Date:-17 February 2012 Ritu Lakhotia- Pgdma1146 Ronak H.Patel- Pgdma1147 Sandeep Kumar-pgdma1148 Sandeev Kumar Rp- Pgdma1149 Sandeev Kumar Sk- Pgdma1150

Contents

OVERVIEW

SWOT ANALYSIS
PRODUCT DIFFERENTATION DISTRIBUTION STRATEGY PROMOTION STARTEGY PRICING STRATEGY BIBLIOGRAPHY

Overview

Procter & Gamble (P&G) is a Fortune 500 American multinational corporation headquartered in downtown ,Cincinnati, Ohio. And manufactures a wide range of consumer goods. In 2011, P&G recorded $82.6 billion dollars[4 lakh crores] in sales. Fortune magazine ranked P&G at fifth place of the "World's Most Admired Companies" list, which was up from sixth place in 2010. P&G is credited with many business innovations including brand management and "Connect & Develop" innovation. According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company.

Product Line:-A group of closely-related product items.

Range of the products Shampoo Panteen PRO-V Tide Head & Shoulders Rejoice Blade Feminine Care Stayfree Vicks inch Detergent powder

Gillette blade

Vicks vaporub

Whisper

Ariel

The Procter & Gamble

company Hygiene and Health Care Ltd. P&G

P&G Home Products Ltd. Gillette India.

SWOT Analysis:
Strengths, Weaknesses, Opportunities, Threats
Location of Factor Favorable Types of Factors Unfavorable

Internal

Strengths: Diversified brand portfolio Research and Development Global Operation Strong Distribution Network

Weakness: Online media & Leadership Dependency Missing Opportunity Weakness in beauty care division
Threats: Competition No new product innovation Government regulation

External

Opportunity: Diversification Capitalizing on online media Growth in Indian FMCG market Environment concern

Product Differentation
WHAT MAKES P&G DIFFERENT FROM OTHERS?
BRAND

LOYALITY DISTRIBUTION CHANNEL INNOVATION PRICING STRATEGY QUALITY OF THE PRODUCT

PROCTER & GAMBLE

ITC

P&G VS ITC

DIFFERENT BRANDS OF P&G AND ITC

P&G SHAMPOO PANTENE , HEAD & SHOULDERS etc HEAD & SHOULDERS as example Easily available Wide range of

pricing

ITC SHAMPOO FIAMA DI WILL, SUPERIA etc. FIAMA DI WILL as example Not easily available Has less pricing range.

DISTRIBUTION STRATEGY
Distribution : Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption Philip Kotler

Distribution :
The distribution is of three types, which are being followed : Intensive distribution Extensive distribution Specialty distribution

Basic Channels of Distribution

Manufacturers/products

Agents

Wholesalers/distributors
Retailers Retailers

Consumers and organizational end users

Distribution criteria:

Ordering Speed:- It is the time taken after the manufacturing of product and the time till it reaches the consumer. Delivery Flexibility:- How easy to distribute the product. Personal Selection And Customization:Which distribution channel to select

Typical Distribution of P&G Products

Manufacturers (PGHH Ltd.India)
Marketing Agents - State wise

Retailers/Wholesalers/Distributors
Chemists Shops, Provision Stores , Retail Outlets, Big Markets etc

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Intensive distribution:
PGHH Ltd, is following this strategy in india. As the company manufactures the FMCG convenience/ necessity goods. As these serve the necessity goods hence there is lesser/no brand loyalty from the customers side, so the distribution network of the company needs to be very strong and proactive.

Promotion strategy
P&G insists on a pull strategy Heavy advertising and media pioneer Advertising creativity P&G A click mortar company Coupon

Pricing strategies
Understand how companies find a set of prices that maximizes the profits from the total product mix. Learn how companies adjust their prices to take into account different types of customers and situations. Know the key issues related to initiating and responding to price changes.

Different pricing strategies adopted by p&g

Optional-features strategy Product-line pricing Cost-plus pricing Competitive pricing Distribution pricing

CONCLUSION

As we know this market is known as FMCG market so there are many competitor in this time in the market so P&G company were focused in this time and target the middle class segment for increasing the sales as well as market shares . Some products like Gillette is made by the company to target the higher segment of the market. In India HUL is biggest competitor in FMCG market.

BIBLIOGRAPHY

http://www.wikiswot.com/SWOT/3_Consumer_Packaged_Goods_(C PGs)/Procter_and_Gamble.html

http://wiki.answers.com/Q/Swot_analysis_of_procter_gamble
http://www.corporatewatch.org/?lid=247 http://www.cisco.com/warp/public/779/ibs/solutions/supply/pgcasestu dy1.pdf http://www.emory.edu/BUSINESS/dra/PGsmartersupplychain.pdf http://www.business-standard.com/india/news/with-pringles-buykelloggs-haslarger-canvas-in-india/464942/ http://www.pg-india.com/