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Transcript of 128 Nagendra Pathak 250
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.
13
Chapter – 2
Marketing Strategies of P&G
& HUL
14
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
15
R&D and advertisement, so this results in raising the price of it's
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.
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Everyday Low Pricing (EDLP)
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
17
promotions are being used by packaged goods marketers. The company
has taken steps in recent years to simplify its promotional programme by
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.
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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.
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
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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.
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:
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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
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:
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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
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
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differentiation, such as automobiles, commercial buildings, and
furniture.
The company's operations are into the following field:
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
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Ariel, in India to cater to the main concerns of the Indian households,
namely, outstanding whiteness and stain-removal.
• Ariel Front-O-Mat
• 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.
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• Pantene Pro V
• Head & Shoulders
• 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
25
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
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
26
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
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
27
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
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
28
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
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
29
detergent gets pushed to the background by a group of women talking
about the excellent performance of the Hindustan Lever brand.
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.
30
2.4 Promotional Strategies
In the year 2001, P&G was the 2nd largest advertiser after General
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:
31
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
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:
32
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%
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
33
commercial used either the life or testimonial format.
It is a widely used advertising format, particularly for packaged goods
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
34
persuasively describes a product and gives customer a toll free number
for ordering .television viewer often encounter 30 minute advertising
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.
35
Under this system, the responsibility and functions associated with
advertising and promotions are transferred to the brand manager, who
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.
In industrial markets, the technology can be used to micro-
42
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,
operation specialists, market and financial analyst, and others-
43
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
duplicated services.
45
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
Expensive Moderate Cheap Very cheap
Tide 0 22 108 72 8
Surf 36 82 67 15 0
Pantene 81 108 11 0 0
Clinic 0 54 47 83 16
0
20
40
60
80
100
120
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
0
20
40
60
80
100
120
140
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
0
20
40
60
80
100
120
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
0
20
40
60
80
100
120
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
0
10
20
30
40
50
60
70
80
90
100
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
0
10
20
30
40
50
60
70
80
90
100
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
e
Unattractive Neutral Attractive Very attractive
Tide 0 4 34 92 70
Surf 0 0 22 82 96
Pantene 0 14 28 76 82
Clinic 0 7 21 80 92
0
20
40
60
80
100
120
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
Disagree Neither agree nor disagree
Agree Definitely agree
Tide 65 116 16 3 0
Surf 0 0 23 92 85
Pantene 90 86 14 10 0
Clinic 0 0 10 102 88
0
20
40
60
80
100
120
140
Tide Surf Pantene Clinic
Strongly disagree Disagree
Neither agree nor disagree AgreeDefinitely agree
59
9. How is cleaning action of the
following brand?
Least effective
Ineffective Neutral Effective Very 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
0
20
40
60
80
100
120
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
No Neutral Yes Definitely 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
0
20
40
60
80
100
120
Tide Surf Pantene Clinic
Definitely No No Neutral Yes Definitely Yes
61
11. Do the brands reminds
you of its parent company?
Definitely No
No Neutral Yes Definitely 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
0
10
20
30
40
50
60
70
80
90
100
Tide Surf Pantene Clinic
Definitely No No Neutral Yes Definitely Yes
62
Chapter – 5
Finding
63
Finding
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 Agree78
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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