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ACKNOWLEDGEMENT

We would like to thank our Professor K.C Prakash for giving us the opportunity to enhance ourknowledge on the subject. We are also grateful for his support and encouragementallthroughout.We also thank our peer members who have enriched our knowledge with immensediscussions on the topic.

Sl.No. Topic Pg. No.

1. Company Profile 22. Detailed description of the company 83. Industry Profile 204. 4 Ps Analysis 385. Competetive Anaysis 476 Competitive Advantage 521| Page

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7. Promotion Strategies 54

8. Pricing Strategies 57

9. Market Analysis 60

10. Market Strategies 61

11. Recommendations 63

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COMPANY PROFILE

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

Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500, American multinationalcorporation based in Cincinnati, Ohio, that manufactures a wide range of consumergoods. It is a brand behemoth. The world's number one maker of householdproducts courts market share and billion-dollar brands. As of 2008, P&G is the 6thlargest corporation in the world by market capitalization and 14th largest UScompany by profit. It is 10th in Fortune's Most Admired Companies list (as of 2007).P&G is credited with many business innovations including brand management, thesoap opera, and "Connect & Develop" innovation.

According to the Nielsen Company, in 2007 P&G spent more on U.S. advertisingthanany other company; the $2.62 billion it spent is almost twice as much asGeneralMotors, the next company on the Nielsen list. P&G was named 2008Advertiser of the Year by Cannes International Advertising Festival. est company inthe world in

Fast Moving Consumer Goods (FMCG) industry.

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It manufactures nearly 300 brands (such as: Ariel, Blend-a-Med, Bonux,Head&Shoulders, Pampers, Always, Fairy, Gillette, Wella) to nearly five billioncustomers, competing in 160 marketplaces. More than 130 000 employees in morethan80 countries worldwide work everyday to provide products of superior qualityandvalue to the world's consumers. As the companys global involvement,commitment and operations have grown, it has continually analyzed and adaptedtheway it does business.

It is a company whose actions reflect its ethics and whose people live their values,As a build from withinorganization, it sees over 90% of our people start at anentry level and then progress and prosper throughout the organization. This meansitinvests heavily in talent, through training and development opportunities.

HISTORY

William Procter, a candlemaker, and James Gamble, a soapmaker, formed distinctcompanies. The two men, immigrants from England and Ireland respectively whohad settled earlier in Cincinnati, might never have met, had they not marriedsisters,Olivia and Elizabeth Norris.[6]

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Since both their industries used similar resources, the Panic of 1837 caused intensecompetition between the two and as a result it led to discord with the family.Alexander Norris, their father-in law decided to call a meeting where he convincedhis new sons-in-law to become business partners. On October 31, 1837, as a result ofthe suggestion, a new enterprise was born: Procter & Gamble.

The company prospered during the nineteenth century. In 1859, sales reached onemillion dollars. By this point, approximately eighty employees worked for Procter&Gamble. During the American Civil War, the company won contracts to supply theUnion Army with soap and candles. In addition to the increased profits experiencedduring the war, the military contracts introduced soldiers from all over the countryto Procter & Gamble's products. Once the war was over and the men returnedhome, they continued to purchase the company's products.

In the 1880s, Procter & Gamble began to market a new product, an inexpensivesoapthat floats in water. The company called the soap Ivory. In the decades thatfollowed, Procter & Gamble continued to grow and change. The company becameknownfor its progressive work environment in the late nineteenth century. WilliamArnett 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 inthecompany, they would be less inclined to go on strike.

Over time, the company began to focus most of its attention on soap, producingmore than thirty different types by the 1890s. As electricity became more and morecommon, there was less need for the candles that Procter & Gamble had madesince its inception. Ultimately, the company chose to stop manufacturing candlesin1920.

In the early twentieth century, Procter & Gamble continued to grow. The companybegan to build factories in other locations in the United States, because the demandfor products had outgrown the capacity of the Cincinnati facilities. The company'sleaders began to diversify its products as well and, in 1911, began produci

ng Crisco,a shortening made of vegetable oils rather than animal fats. In the early 1900s,Procter & Gamble also became known for its research laboratories, where scientistsworked to create new products. Company leadership also pioneered in the area ofmarket research, investigating consumer needs and product appeal. As radiobecamemore popular in the 1920s and 1930s, the company sponsored a number ofradio programs. As a result, these shows often became commonly known as "soapoperas".

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Throughout the twentieth century, Procter & Gamble continued to prosper. Thecompany moved into other countries, both in terms of manufacturing and productsales,becoming an international corporation with its 1930 acquisition of theNewcastleupon Tyne-based Thomas Hedley Co. Procter & Gamble maintained astrong link to the North East of England after this acquisition. In addition, numerousnew products and brand names were introduced over time, and Procter & Gamblebegan branching out into new areas. The company introduced "Tide" laundrydetergent in 1946 and"Prell" shampoo in 1950. In 1955, Procter & Gamble beganselling the first toothpaste to contain fluoride, known as "Crest". Branching out onceagain in 1957, the company purchased Charmin Paper Mills and beganmanufacturing toilet paper andother paper products. Once again focusing onlaundry, Procter & Gamble began making "Downy" fabric softener in 1960 and"Bounce" fabric softener sheets in 1972. One of the most revolutionary products tocome out on the market was the company's"Pampers", first test-marketed in 1961.Prior to this point disposable diapers were not popular, although Johnson & Johnsonhad developed a product called "Chux". Babies always wore cloth diapers, whichwere leaky and labor intensive to wash. Pampers simplified the diapering process.

Over the second half of the twentieth century, Procter & Gamble acquired a numberof other companies that diversified its product line and increased profitssignificantly. These acquisitions included Folgers Coffee, Norwich EatonPharmaceuticals, Richardson-Vicks, Noxell, Shulton's Old Spice, Max Factor, and theIams Compa

ny, among others. In 1994, the company made headlines for big lossesresulting from leveraged positions in interest rate derivatives, and subsequentlysued Bankers Trust for fraud; this placed their management in the unusual positionof testifying in court that they had entered into transactions they were not capableof understanding. In 1996, Procter & Gamble again made headlines when the Foodand Drug Administration approved a new product developed by the company,Olestra. Also known by its brand name Olean, Olestra is a substitute for fat incooking potato chips and other snacks that during its development stages is knownto have caused anal leakage and gastro-intestinal difficulties in humans.

Procter & Gamble has expanded dramatically throughout its history, but itsheadquarters still remains in Cincinnati. {Source, Ohio History Central.}

In January 2005 P&G announced an acquisition of Gillette, forming the largestconsumer goods company and placing the Anglo-Dutch Unilever into second place.This added brands such as Gillette razors, Duracell, Braun, and Oral-B to theirstable. The acquisition was approved by the European Union and the Federal TradeCommission, with conditions to a spinoff of certain overlapping brands. P&G hasagreed to sell its SpinBrush battery-operated electric toothbrush business to Church& Dwight. It also divested Gillette's oral-care toothpaste line, Rembrandt. Thedeodorant brands Right Guard, Soft & Dri, and Dry Idea were sold to DialCorporation.[7] The companies officially merged October 1, 2005.

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P&G's dominance in many categories of consumer products makes its brandmanagement decisions worthy of study. [8] For example, P&G's corporate strategistsmust account for the likelihood of one of their products cannibalizing the sales ofanother.[9]

PURPOSE AND MISSION:

The company has its mission statement as follows-:

We will provide branded products and services of superior quality and value thatimprove the lives of the world's consumers, now and for generations to come. As aresult, consumers will reward us with leadership sales, profit and value creation,allowing our people, our shareholders and the communities in which we live andwork to prosper.

Values:

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P&G is its people and the values by which we live.

P&G attracts and recruits the finest people in the world. It has built the organizationfrom within, promoting and rewarding people without regard to any differenceunrelated to performance. It acts on the conviction that the men and women ofProcter & Gamble always will be their most important assets.

Integrity

Proctor & Gamble.always tries to do the right thing..is honest and straightforward with customers and employees.upholds the values and principles of P&G in every action and decision..is data-based and intellectually honest in advocating proposals, includingrecognizing risks.

Passion for Winning

Proctor & Gamble

.Is determined to be the best at doing what matters most.

.has a healthy dissatisfaction with the status quo.

.Has a compelling desire to improve and to win in the

marketplace.

Leadership

.The employees are all leaders in our area of responsibility, with a deepcommitment to delivering leadership results..The company has a clear vision of where it is going.

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.The focus is on achieving leadership objectives and strategies.

.Capabilties are developed to deliver the strategies and eliminate organizationalbarriers.

Trust

.There is mutual respect among the colleagues, customers andconsumers,

.Employees have confidence in each other's capabilities andintentions.

.The company believes that people work best when there is afoundation of trust.

Ownership

.The organization accepts personal accountability to meet the business needs,improve the systems and help others improve their effectiveness.

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DETAILED DESCRIPTION OF COMPANY

P&Gs business is focused on providing branded consumer goods products. Theirgoalis to provide products of superior quality and value to improve the lives of theworlds consumers. They believe thiswill result in leadership sales, profits and valuecreation, allowing employees, shareholders and the communities in which theyoperate to prosper. Their products are sold in more than 180 countries primarilythrough mass merchandisers, grocery stores, membership club stores and drugstores. They continue to expand their presence in other channels includingdepartmentstores, salons and high frequency stores,the neighborhood storeswhich serve many consumers in developing markets. They have on-the-groundoperations in approximately 80

countries.

They market environment is highly competitive, with global, regional and localcompetitors. In many of the markets and industry segments in which they sell theirproducts, they compete against other branded products as well as retailersprivate-label brands. Additionally, many

of the product segments in which they compete are differentiated by price (referredto as premium, mid-tier and value-tier products).

Generally speaking, they compete with premium and mid-tier products and are wellpositioned in the industry segments and markets in which they operate oftenholding a leadership or significant market share position.

Organizational Structure

Our organizational structure is comprised of three Global Business Units (GBUs)anda Global Operations group. The Global Operations group consists of the MarketDevelopment Organization (MDO) and Global Business Services (GBS).

Global Bussines Units

Our three GBUs are Beauty, Health and Well-Being, and Household Care. Theprimaryresponsibility of the GBUs is to develop the overall strategy for our brands.They identify common consumer needs, develop new product innovations andupgrades, and build our brands through effective commercial innovations,marketing and sales.

Under U.S. GAAP, the business units comprising the GBUs are aggregated into sixreportable segments: Beauty; Grooming; Health Care; Snacks, Coffee and Pet Care;Fabric Care and Home Care; and BabyCare and Family Care. The following providesadditional detail on our GBUs and reportable segments and the key product andbrand composition within each.

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Managements Discussion and Analysis

Effective July 1, 2007, the company's operations are categorized into 3 "GlobalBusiness Units" with each Global Business Unit divided into "Business Segments,"according to the company's June 2007 earnings release.

Beauty CareBeauty segmentGrooming segmentHousehold CareBaby Care and Family Care segmentFabric Care and Home Care segmentHealth & Well-BeingHealth CareSnacks, Coffee and Pet Care

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Beauty:

We are a global market leader in beauty and compete in markets which compriseapproximately $230 billion in global retailsales. Most of the beauty markets inwhichwe compete are highlyfragmented with a large number of global and localcompetitors.They are the global market leader in hair care with over 20% oftheglobal market share. In skin care, we compete primarily with theOlay brand,which is the top facial skin care retail brand in the world.They are also one oftheglobal market leaders in prestige fragrances,primarily behind the Gucci, Hugo Bossand Dolce & Gabbanafragrance brands.

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Grooming:

This segment consists of blades and razors, face and shave preparation products(such as shaving cream), electric hair removal devices and small householdappliances. They hold leadership market share in the manual blades and razorsmarket on a global basis and in almost all of the geographies in which theycompete.

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behind Mach3, Fusion, Venus and the Gillette franchise. Their electric hair removaldevices and small home appliances are sold under the Braun brand in a number ofmarkets around the world, where we compete against both global and regionalcompetitors. Our primary focus in this area is in electric hair removal devices, suchas electric razors and epilators, where we hold over 30% and over 50% of the maleand female markets, respectively.

Health and Well-Being

Health Care: They compete in oral care, feminine care, and pharmaceuticals andpersonal health. In oral care, there are several global competitors in the market,and theyhave the number two market share position at approximately 20% of theglobal market. They are the global market leader in the feminine care category withabout one-third of the global market share. In pharmaceuticals and personal health,we have approximately one-third of the global bisphosphonates market for thetreatment of osteoporosis under the Actonel brand. They are the market leader innonprescription heartburn medications and in respiratory treatments behindPrilosec OTC and Vicks, respectively.Snacks, Coffee and Pet Care: In snacks, wecompete against both global and local competitors and have a global market shareof approximately 10% in the potato chips market behind our Pringles brand. Theircoffee business competes almost solely in North America,where we hold aleadership position

with approximately one-third of the U.S. market, primarilybehind our Folgers brand. They have announced plans to separate our coffeebusiness and merge it with The J. M. Smucker Company in a transaction that isexpected to close in the secondquarter of fiscal 2009. In pet care, they compete inseveral markets around theglobe in the premium pet care segment,behind theIams and Eukanuba brands. The vast majority of their pet care business is in NorthAmerica, where they have abouta 10% shareof the market.

Household Care

Fabric Care and Home Care: This segment is comprised of a variety of fabric careproducts, including laundry cleaning products and fabric conditioners; home careproducts, including dish care, surface cleaners and air fresheners; and batterie

s. Infabric care, they generally have the number one or number two share position inthe markets in which we compete and are the global market leader, withapproximately one-third of the global market share. Their global home care marketshareis about 20% across the categories in which they compete. In batteries, wecompete primarily behind the Duracell brand and have over 40% of the globalalkaline battery market share.Baby Care and Family Care: In baby care, theycompete primarily in diapers, training pants and baby wipes, with over one-third ofthe global market share. They are the number one or number two baby carecompetitor in most of the key markets in which they compete,primarily behindPampers, the Companys largest brand, with annual net sales of approximately $8billion.

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Global OperationsMarket Development Organization

MDO is responsible for developing go-to-market plans at the local level. The MDOincludes dedicated retail customer, trade channel and country-specific teams. Itisorganized along seven geographic regions:

North America, Western Europe, Northeast Asia, Central & Eastern Europe/MiddleEast/Africa, Latin America, ASEAN/Australia/India and Greater China.

GBS provides technology, processes and standard data tools to enablethe GBUs andthe MDO to better understand the business and better serve consumers andcustomers. The GBS organization is responsible for providing world-class solutionsat a low cost and with minimal capital investment.

Strategic Focus

P&G is focused on strategies that it believes are right for the long-term healthof theCompany and will increase returns for shareholders.

The Companys annual financial targets are:

Organic sales growth of 4% to 6%. This is comprised of:

3% to 5% pre-Gillette organic sales growth target, plus1% of growth acceleration behind revenue synergies associated with the Gilletteacquisition.

Diluted net earnings per share (EPS) growth of 10% or better,excluding the netimpact of Gillette dilution.Free cash flow productivity of 90% or greater (defined as the ratio of operatingcash flow less capital expenditures to net earnings).Capital spending at or below 4% of net sales annually.In order to achieve these targets, we focus on our core strengths of consumerunderstanding, branding, innovation, go-to-market capability

and global scale and scope against the following growth areas:

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Shift our portfolio mix to faster-growing businesses with higher gross margins thatare less asset-intensive.Grow disproportionately in developing markets and with value consciousconsumers.To sustain consistent and reliable sales and earnings growth in line with ourfinancial targets, we have identified four key enablers:

Building a diversified and balanced portfolio of businesses, brands andgeographies to deliver consistent, reliable top-and bottom-line growth. Theirportfolio ofbusinesses provides a unique combination of stability, scale and growth.They compete primarily in 22 global product categories and are a market leader inover two-thirds of these categories. In addition, their portfolio includes24 brands that generate over $1 billion in annual sales and 20 brands that generatebetween $500 million and $1 billion in annual sales. Combined, these 44 brandsaccount for 85% or more of their sales and profits. These brands are platforms forfuture innovations that will drive sales growth, expand categories for retailcustomers and differentiate brands in the minds of consumers. Their geographicportfolio includes a healthy balance of developed and developing marketbusinesses.Approximately 40% of sales are generated from the United States, ourhome market,and developing markets account for approximately 30% of sales.

Investing in innovation and core P&G capabilities and strengths to enable us tor

each more of the worlds consumers with quality, affordable products. This includesexpanding our presence in markets and reaching more consumers where we areunderrepresented,including value-conscious consumers.Leveraging the Companys organizational structure to drive clear focus,accountability and improved go-to-market capability.The GBU organizations leverage their consumer understanding to develop theoverallstrategy for our brands. They identify common consumer needs, developnew products and build our brandsthrough effective marketing innovations andproduct upgrades.

The GBU is focused on winning the second moment of truth

when the consumer uses the product and evaluates how well the product meets hiso

r her expectations.

The MDO develops go-to-market plans at the local level, leveraging theirunderstanding of the local consumers and customers.

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The MDO is focused on winning the first moment of truth

when a consumer stands in front of the shelf and chooses a product from amongmany competitive offerings.

Global Business Services operates as the back officefor the GBUs and theMDO, provding cost-effective world-class technology, processes and standard datatools tobetter understand the business and better serve consumers and customers.GBS personnel, or highly efficient and effective third-party partners, provide theseservices.

Focusing on cost improvement and cash productivity. Each organization isevaluated on its ability to support the Companys financial goals and increase totalshareholder return. This includes an evaluation of net sales growth, earningsgrowth, profit margin expansion and cash productivity. Our organizations areevaluated ontheir ability to generate cash, for example, by increasing productivity,Improving capacity utilization, meeting capital spending targets and reducingworking capital required to run the business.19 | Page

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RESULTS OF OPERATIONS

Net Sales

Net sales increased 9% in 2008 to $83.5 billion behind 4% unit volume growth, afavorable 5% foreign exchange impact and a positive 1% pricing impact. Favorableforeign exchange resulted primarily from the strengthening of European and othercurrencies relative to the U.S. dollar. Price increases were taken across a number ofour businesses primarily to offset higher commodity costs. Mix had a negative 1%impact on net sales primarily due to disproportionate growth in developing regions,where selling prices are below the Company average. Each reportable segmentposted year-on-year volume growth, with mid-single-digit growth in Fabric Care andHome Care, Baby Care and Family Care, Grooming and Health Care and low-singledigitgrowth in Beauty and Snacks, Coffee and Pet Care. Each geographic regionposted year-on-year volume growth except Western Europe, which was down low-single digits due to the impact of divestitures.Excluding the impact of acquisitionsand divestitures, every geographic region delivered year-on-year volume growth.Volume grew primarily behind initiative activity on key brands and continueddouble-digit growth in developing regions. Organic sales increased 5% behindorganicvolume growth of 5%, which excludes the impact of acquisitions anddivestitures.

Each reportable segment posted year-on-yearorganic sales andorganic volume growth.

Net sales increased 12% in 2007 to $76.5 billion. Sales were up behind 9% unitvolume growth, including the impact of an extra three months of Gillette results in2007. Organic volume increased 5%. Developing regions continued to lead thegrowth with double-digit increases for the year. All reportable segments increasedorganic volume for the year except the Snacks, Coffee and Pet Care segment.Higher pricing, primarily in coffee and Health Care, contributed 1% to sales growth.

Product mix had no net impact on sales as a more premium product mix driven bythe additional three months of Gillette results in 2007 was offset by the negative

mix impact of disproportionate growth in developing markets, where the averageunit sales price is lower than the Company average. Favorable foreign exchangecontributed 2% to net sales growth. Organic sales increased 5% versus 2006 witheachreportable segment posting year-on-year growth.

Management and staff

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Current members of the board of directors of Procter & Gamble are: Alan Lafley,Clayton Daley Jr., Charles Lee, Ralph Snyderman M.D., Margaret Whitman, W. J.McNerney Jr., Lynn Martin, Johnathan Rodgers, Ernesto Zedillo, Scott Cook, RajatGupta,Patricia Woertz, and Kenneth Chenault.

In 2007, the P&G's Canadian division was named one of Canada's Top 100 Employers,as published in Maclean's magazine, the only consumer products company to receivethis honor.

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Pampers is a brand of disposable diapers Pantene is a brand of haircare. Prilosec OTC is a brand of heartburn medicine co-marketed by AstraZeneca. Pringles is a famous brand of potato chips. Puffs is a type of facial tissue. Secret is a deodorant Tide is a brand of laundry detergent. Vicks is a brand of over-the-counter medicines Wella is a brand of hair care (shampoo, conditioner, styling, hair color). Whisper is a brand of pantylinersManufacturing

Procter & Gamble manufactures its products across the globe. Manufacturingoperations are based in the following geographiesUSCanadaLatin AmericaEuropeChina (31 wholly-owned factories) and other parts of AsiaAfrica

P&G LOGO

The company received unwanted media publicity in the 1980s when an urban legendspread thattheir previous corporate logo was a Satanic symbol. The accusation is based on aparticularpassage in the Bible, specifically Revelation 12:1, which states: "And there appeared a greatwonder in heaven; a woman clothed with the sun, and the moon under her feet, andupon herhead a crown of twelve stars." Since P&G's logo consists of a man's face on a moon surroundedby thirteen stars, some have claimed that the logo is a mockery of the heavenlysymbol alluded

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to in the aforementioned verse, and hence the logo is Satanic. Where the beard meets thesurrounding circle, a mirror image of the number 666 can be seen when viewed from inside thelogo, and this has been interpreted as the reflected number of the beast, againlinked to Satanism.Also, there are two horns like a lamb that are said to represent the false prophet. Theseinterpretations have been denied by company officials, and no evidence linking the company tothe Church of Satan or any other occult organization has ever been presented. The company hassued and attempted to sue a number of companies like Amway and individuals who have spreadrumors of this type, in some instances because they sell competitive products and have spreadsuch rumors for the purpose of tarnishing P&G's image to increase sales of theirown brands.

As stated in one of the resulting lawsuits, the logo originated in 1851 as the symbol for their Starbrand of candles. It was later altered to show the man in the moon overlooking 13 stars, which

were meant to commemorate the original 13 colonies.[17]

An example of one such rumor was the fabricated account that the president of P&G hadappeared on a Saturday edition of The Phil Donahue Show. He declared that he wasa Satanistand that the company's logo was Satanic. This rumor circulated despite the factsthat thecompany's president has never made such a statement in public, had never appeared on PhilDonahue's show, and that Donahue's show never ran on Saturdays. Later variationsof this rumorreplaced the Donahue show with Geraldo Rivera's show.[18]

However, the continuous media coverage prompted P&G to adopt an entirely new logoconsisting of just the letters P&G. In television commercials in China, the former P&G logo stillappears at the end of each commercial, and up until 2004, it appeared at the endof eachcommercial in Japan.

Original Logo

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New Logo

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INDUSTRY PROFILE

What are Fast Moving Consumer Goods (FMCG)?

Products which have a quick turnover, and relatively low cost are known as FastMoving Consumer Goods (FMCG). FMCG products are those that get replaced withina year. Examples of FMCG generally include a wide range of frequently purchasedconsumer products such as toiletries, soap, cosmetics, tooth cleaning products,shaving products and detergents, as well as other non-durables such as glassware,bulbs, batteries, paper products, and plastic goods. FMCG may also includepharmaceuticals, consumer electronics, packaged food products, soft drinks, tissuepaper, and chocolate bars.

A subset of FMCGs are Fast Moving Consumer Electronics which include innovativeelectronic products such as mobile phones, MP3 players, digital cameras, GPSSystems and Laptops. These are replaced more frequently than other electronicproducts.

White goods in FMCG refer to household electronic items such as Refrigerators,T.Vs, Music Systems, etc.

In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industrie

sin India. According to the AC Nielsen India study, the industry grew 5.3% in valuebetween 2004 and 2005.

Indian FMCG Sector

The Indian FMCG sector is the fourth largest in the economy and has a market sizeof US$13.1 billion. Well-established distribution networks, as well as intensecompetition between the organised and unorganised segments are thecharacteristics of this sector. FMCG in India has a strong and competitive MNCpresence acrossthe entire value chain. It has been predicted that the FMCG marketwill reach toUS$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middleclass and the rural segments of the Indian population are the most promisingmarket for FMCG, and give brand makers the opportunity to convert them tobranded pro

ducts. Most of the product categories like jams, toothpaste, skin care,shampoos, etc, in India, have low per capita consumption as well as low penetrationlevel, but the potential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapidurbanization, increased literacy levels, and rising per capita income.

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The big firms are growing bigger and small-time companies are catching up as well.According to the study conducted by AC Nielsen, 62 of the top 100 brands areowned by MNCs, and the balance by Indian companies. Fifteen companies ownthese 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at numberthree followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6),Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarettecompanies have always shied away from revealing. Personal care, cigarettes, andsoft drinks are the three biggest categories in FMCG. Between them, they accountfor 35 of the top 100 brands.

Exhibit ITHE TOP 10 COMPANIES IN FMCG SECTOR

S. NO. Companies1. Hindustan Unilever Ltd.2. ITC (Indian Tobacco Company)3. Nestl India4. GCMMF (AMUL)5. Dabur India6. Asian Paints (India)7. Cadbury India8. Britannia Industries

9. Procter & Gamble Hygieneand Health Care10. Marico Industries

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Source: Naukrihub.com

The companies mentioned in Exhibit I, are the leaders in their respective sectors.The personal care category has the largest number of brands, i.e., 21, inclusiveofLux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands inthe21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettesaccount for 17% of the top 100 FMCG sales, and just below the personal carecategory. ITC alone accounts for 60% volume market share and 70% by value of allfilter cigarettes in India.

The foods category in FMCG is gaining popularity with a swing of launches by HLL,ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637crore. Nestle and Amul slug it out in the powders segment. The food category hasalso seen innovations like softies in ice creams, chapattis by HLL, ready to eat riceby HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seemstohave faster development than the stagnating personal care category. Amul, India'slargest foods company, has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100FMCG brands, dominates the biscuits category and has launched a series ofprodu

cts at various prices.

In the household care category (like mosquito repellents), Godrej and Reckitt aretwo players. Goodknight from Godrej, is worth above Rs 217 crore, followed byReckitt's Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilkmake it to the top 100, although P&G's Head and Shoulders and Pantene are alsotrying hard to be positioned on top. Clinic is nearly double the size of Sunsilk.

Dabur is among the top five FMCG companies in India and is a herbal specialist.With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Daburhasbrands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. AsianPaints is enjoying a formidable presence in the Indian sub-continent, SoutheastAsi

a, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paintsis India's largest paint company, with a turnover of Rs.22.6 billion (aroundUSD 513million). Forbes Global magazine, USA, ranked Asian Paints among the 200BestSmall Companies in the World

Cadbury India is the market leader in the chocolate confectionery market with a70% market share and is ranked number two in the total food drinks market. Itspopular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6billion (USD 380 Million) Marico is a leading Indian group in consumer products andservices in the Global Beauty and Wellness space.

Outlook

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There is a huge growth potential for all the FMCG companies as the per capitaconsumption of almost all products in the country is amis amongst the lowest in theworld. Again the demand or prospect could be increased further if these companiescan change the consumer's mindset and offer new generation products. Earlier,Indian consumers were using non-branded apparel, but today, clothes of differentbrands are available and the same consumers are willing to pay more for brandedquality clothes. It's the quality, promotion and innovation of products, which candrive many sectors.

The personal care sector of P&G is considered for this project.The Pantene shampoois taken as a representative of this sector and it will be further analyzed onthevarios parameters.

First of all let us have a look at the various competitors of P&G in this sectorandthat too in the shampoo product line

The Brand that is selected for this analytical report isPantene.We will analyzethevarious competitors of P&G in the personal care segment.Some of them areHindustan Unilever Ltd, Colgate Palmolive,ITC,Marico Industries,Dabur, For everycompany we have discussed only one product from the Hair Care segment in detail.

UNILEVER

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Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that ownsmany of the world's consumer product brands in foods, beverages, cleaning agentsandpersonal care products. Unilever employs nearly 180,000 people[1] and had a worldwiderevenue of almost 40 billion in 2005.

Unilever is a dual-listed company consisting of Unilever NV in Rotterdam, Netherlandsand Unilever PLC in London, England. This arrangement is similar to that of ReedElsevier, and that of Royal Dutch Shell prior to their unified structure. Both Unilevercompanies have the same directors and effectively operate as a single business.The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschowwhile Patrick Cescau is Group Chief Executive, who will retire at the end of 2008. MrPaul Polman will succeed Patrick Cescau as Group Chief Executive. The company iswidely listed on the world's stock exchanges

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History

Unilever was created in 1930 by the merger of British soapmaker Lever Brothersand Dutch margarine producer Margarine Unie, a logical merger as palm oil was amajor raw material for both margarines and soaps and could be imported moreefficiently in larger quantities.

In the 1930s the business of Unilever grew and new ventures were launched inLatin America. In 1972 Unilever purchased A&W Restaurants' Canadian division butsoldits shares through a management buyout to former A&W Food Services ofCanada CEOJeffrey Mooney in July 1995.[4] By 1980 soap and edible fats contributedjust 40% of profits, compared with an original 90%. In 1984 the company boughtthe brandBrooke Bond (maker of PG Tips tea).

In 1987 Unilever strengthened its position in the world skin care market byacquiring Chesebrough-Ponds, the maker of Rag, Pond's, Aqua-Net, Cutex NailPolish, Pepsodent toothpaste, and Vaseline. In 1989 Unilever bought Calvin KleinCosmetics,Faberg, and Elizabeth Arden, but the latter was later sold (in 2000) toFFI Fragrances. [5]

In 1996 Unilever purchased Helene Curtis Industries, giving the company "apowerful new presence in the United States shampoo and deodorant market". [6]The purchase brought Unilever the Suave and Finesse hair-care product brands and

Degree deodorant brand. [7]

In 2000 the company absorbed the American business Best Foods, strengthening itspresence in North America and extending its portfolio of foods brands. In a singleday in April 2000, it bought, ironically, both Ben & Jerry's, known for its calorie-richice creams, and Slim Fast.

The company is fully multinational with operating companies and factories on everycontinent (except Antarctica) and research laboratories at Colworth and PortSunlight in England; Vlaardingen in the Netherlands; Trumbull, Connecticut, andEnglewood Cliffs, New Jersey in the United States; Bangalore in India Pakistan; andShanghai in China.Its Indian arm is known as Hindustan Unilever Ltd.

Hindustan Unilever Ltd.

Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan LeverLimited, is India's largest consumer products company and was formed in 1933 asLever Brothers India Limited. It is currently headquartered in Mumbai, India and its41,000 employees are headed by Harish Manwani, the non-executive chairman of theboard. HUL is the market leader in Indian products such as tea, soaps, detergents, asits products have become daily household name in India. The Anglo-Dutch companyUnilever owns a majority stake in Hindustan Unilever Limited.

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The company was renamed in late June 2007 "Hindustan Unilever Limited".

Introduction

. The company focuses on efficient delivery to consumers with an improved supplychain, brand building initiatives and innovation, which has helped the company tosustain its leadership position in the overall FMCG category in India.

It offers foods, beverages, home care, and personal care products. Its operationsare divided into seven reportable divisions: soaps and detergents, personalproducts, beverages, foods, ice creams, exports, and other operations.

The company derives 44.3% of its revenues from soaps and detergents, 26.6% frompersonal care products, 10.5% from beverages, and the rest from foods, ice creams,exports, and other products.

Brands in the Personal Care category

The personal care product family or category is further sub-divided into sevencategories:Personal Wash:Lux

LirilHamam

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Lifebuoy

BreezeDoveRexonaPears

Laundry:Surf ExcelRinWheelSunlightHair Care:Sunsilk NaturalsClinic34 | Page

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Deoderants:AxeRexonaSkin Care:Fair & LovelyPondsAvianceVaselineOral Care:PepsodentClose UpCosmetics:Lakme

SunsilkLaunched in 1964, Sunsilk is the largest beauty shampoo brand in the country.

Positioned as the 'Hair Expert', Sunsilk has identified different hair needs andoffersthe consumer a shampoo that gives her the desired results.The benefits are more compelling and relevant since the variants are harmonisedin

terms of the product mix -fragrance, colour and ingredients are all well linked

tocue the overall synergy. The range comes in premium packaging and design. Theaccent is on "It knows you, and hence knows exactly what your hair needs".

brand of hair care products for women produced by the Unilever group. It waslaunched in 1954 in the United Kingdom. By 1959, it was available in eighteendifferent countries worldwide. Currently, Sunsilk products are available in over 50countries throughout Asia, The Middle East, North Africa and Latin America, where isknown as Sedal. In Brazil, this brand is known as Seda.

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Old Campaign

In the early years, Sunsilk focused much of its marketing attention on gaininginternational presence. To do this, they targeted different market segments orcountries with specialized products designed to address hair "issues" of eachculture. For example in the UK, the core benefit in the 1960s was shiny hair.

High interest internationally led to a dramatic decline in support in the UnitedStates and UK. Because of this, many years went by with little or no advertisingwhich caused the brand to be viewed as targeted at older women. Although thiswasnot Sunsilk's intention the outcome was inevitable.

During the 1980s a push viewed by many Unilever insiders as "last-ditch" was madeto revitalize the brand in Australia followed by other countries [1]. The advertisingfeatured Beverly Hills stylist Dusty Fleming and although this was successful inAustralia the impact on the brand in the UK was catastrophic. By 1991 the formerNo1 shampoo product was delisted in the UK.

Because of the brand loyalty among older users, combined with almost a generationof non-use, Sunsilk found it very difficult to gain market share and attract ayoungeraudience.

A new campaign was launched to recruit younger users. To do this, products alsoneeded rejuvenating. Sunsilk decided that in addition to segmenting marketscountry by country, they should also segment by hair type within each market. Thenew products focused on hair color, texture, feeling, dryness, etc. The updatedSunsilk campaign, "Get Hairapy", followed the same strategy, marking a bold movetowards users in their 20s and upwards said to be in their "quarter-life crisis". Thetarget audience was also defined as single, fashion-conscious, working women whoeconomized when looking good: women "on-the-go".

The new product lines, which feature product threesomes include: Anti-Flat, Anti-Poof, Hydra TLC, Straighten-Up, De-Frizz, No Major Issues, ThermaShine, BeyondBrunette Color Boost (Auburn tones and non-highlighted brunette colorers) andBlond

e Bombshell (all over blondes and highlighters).

Sunsilk also updated its website to reflect its realigned image. The new site,www.gethairapy.com, became the main focus of the campaign. Commercials andprintads encouraged direct response via the website which included a "get hairapy"blog.

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The blog is written by "The Hairapy Guys", a trio of young men with "Queer Eye forthe Straight Guy" appeal. The aim of the Hairapy Guys is to act as lifestyle specialistswith thoughts and tips on hair care, dating and other typical twenty-somethingissues. The blog tagline is "help you laugh away your hair and life problems". Themyspace account attracts as many as 18,000 subscribers. The Hairapy Guyshavealso been incorporated into various television shows such as the Best Week Everwhere they engage in celebrity gossip, Flavor of Lovewith 30-second promos onthehairstyles of the would-be girlfriends, and fashion shows on the E! channel.

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ITC LIMITED

ITC is one of India's foremost private sector companies with a market capitalisationof nearly US $ 19 billion* and a turnover of over US $ 5.1 Billion. ITC is rated amongthe World's Best Big Companies, Asia's 'Fab 50' and the World's Most ReputableCompanies by Forbes magazine, among India's Most Respected Companies byBusinessWorld and among India's Most Valuable Companies by Business Today. ITCranks among India's `10 Most Valuable (Company) Brands', in a study conducted byBrand Finance and published by the Economic Times. ITC also ranks among Asia's50 best performing companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & SpecialtyPapers, Packaging, Agri-Business, Packaged Foods & Confectionery, InformationTechnology, Branded Apparel, Personal Care, Stationery, Safety Matches and otherFMCG products. While ITC is an outstanding market leader in its traditionalbusinessesof Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it israpidly gaining market share even in its nascent businesses of Packaged Foods &Confectionery, Branded Apparel, Personal Care and Stationery.

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As one of India's most valuable and respected corporations, ITC is widely perceivedto be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source ofinspiration "a commitment beyond the market". In his own words: "ITC believes thatits aspiration to create enduring value for the nation provides the motive force tosustain growing shareholder value. ITC practices this philosophy by not only drivingeach of its businesses towards international competitiveness but by alsoconsciously contributing to enhancing the competitiveness of the larger valuechainof which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creatingmultiple drivers of growth anchored on its time-tested core competencies:unmatched distribution reach, superior brand-building capabilities, effective supplychain management and acknowledged service skills in hoteliering. Over time,thestrategic forays into new businesses are expected to garner a significant share ofthese emerging high-growth markets in India.

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ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC isone of the country's biggest foreign exchange earners (US $ 3.2 billionin the lastdecade). The Company's 'e-Choupal' initiative is enabling Indian agriculturesignificantly enhance its competitiveness by empowering Indian farmers throughthe power of the Internet. This transformational strategy, which has already becomethe subject matter of a case study at Harvard Business School, is expected toprogressively create for ITC a huge rural distribution infrastructure, significantlyenhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, isaggressively pursuing emerging opportunities in providing end-to-end IT solutions,including e-enabled services and business process outsourcing.

ITC's production facilities and hotels have won numerous national and internationalawards for quality, productivity, safety and environment management systems.ITCwas the first company in India to voluntarily seek a corporate governance rating.

ITC employs over 25,000 people at more than 60 locations across India. TheCompany continuously endeavors to enhance its wealth generating capabilities in aglobalising environment to consistently reward more than 3,75,000 shareholders,fulfill the aspirations of its stakeholders and meet societal expectations. This

over-arching vision of the company is expressively captured in its corporate positioningstatement: "Enduring Value. For the nation. For the Shareholder."

Brands in Personal Care:

TC launched an exclusive line of prestige fine fragrances under the Essenza Di Willsbrand in mid 2005. The Essenza Di Wills range of perfumes reinforces ITCs traditionof bringing world-class products to Indian consumers to enrich the quality of theirlives.

Essenza Di Wills embodies a fine balance between the classic and the contemporary.The brand personifies exclusivity, innate style, sophistication and magnetism.The Essenza Di Wills line has been developed with the assistance of Frenchperfumery experts to give it the mystique and premium luxury quality that go withthe best of international brands.

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Inizio, the signature range under Essenza Di Willscaptures the very essence of attraction between a manand a woman with its two distinct lines -Inizio Femme(for women) and Inizio Homme (for men). The women'sfine fragrance revolves around 'Floral Fruity Musky'notes while the men's fine fragrance is centered on'Oriental Woody Fruity' notes. The bath and body careproducts share the same olfactory signature of the finefragrances, to offer a harmonized grooming experience.

he latest addition to the Essenza Di Wills portfolio is the Aqua range for men (AquaHomme) that offers a distinctive and fresh aquatic fragrance. The Aqua rangeincludes an After-Shave Lotion, a Deodorant, a Hair & Body Shampoo and a BathingBar.

Essenza Di Wills has significantly enhanced its brand salience in the lifestylespaceby being the associate sponsors of the Wills Lifestyle India Fashion Week,thecountry's most premier fashion event that brings together the leading designers ofthe country.The Essenza Di Wills fashion line, specially designed for the brand by one of Indiasleading designers, Varun Bahl, received high appreciation at the Spring-Summershow in September 2007. Essenza Di Wills is available at Wills Lifestyle stores,

select John Players stores and select premium outlets.

In September 2007, ITC launched Fiama Di Wills, a premiumrange of personal care products comprising shampoos,conditioner, shower gels and soap. This premium range is aunique blend of nature and science that promises gentle effectivecare. It is an outcome of 4 years of extensive researc

iama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc., USA,offers a range of five variants. Each of these is designed to deliver a specifichairbenefit to the consumer :

Everyday Mild (with extracts of Thyme &Juniper) is a gentle caring shampoo suitable fordaily use.

Aqua Balance (with extracts of MagnoliaBlossoms & Watercress) is a gentlemoisturizing shampoo ideal for dry, dull hair.

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Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing shampooideal for thin, limp hair.

Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth,silky and strong and is ideal for weak, damaged hair.

Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny andmanageable, easy to style and is ideal for dull to normal hair.

Each of these shampoos can be complemented with Fiama Di WillsPolishing Drops conditioner. This gentle conditioner enriched withAvocado Oil and Burdock extractpromises to make hair shiny, softand smooth. It also gives the additional benefits of UV protection asit contains Sunflower Seed extract, which is a natural UVabsorber.

The Fiama Di Wills product line also consists of a 3-variant range of transparentshower gels which are unique as they come with suspended beads:

Mild Dew (enriched with soft beads, peach andavocado extracts) is for soft, moisturized skin.Clear Springs (enriched with jojoba beads, sea weedand lemongrass extracts) is f

or clear healthy skin.

Exotic Dream (enriched with glitter beads, bearberryleaves and black currant extracts) is for stimulatingfreshness.

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The Fiama Di Wills range of soaps has been launchedunder the sub -brand SkinSense. The first variant to beintroduced in this range is Soft Green. This is a gentlecaring soap, which helpsenhance retention of skinproteins making skin look beautiful and youthful.

Between February and June 2008, ITC expanded its personal care portfolio with thelaunch of Vivel Di Wills and Vivel brands. Vivel Di Wills, a range of soaps, and Vivel,a range of soaps and shampoos, cater to the specific needs of a wide range ofconsumers.

Backed by consumer insights, these ranges offer the unique value proposition ofproviding the multiple benefits of Nourishment, Protection and Hydration in everysingle product. Thus providing, the ever-discerning consumer, complete care.

The Vivel Di Wills range is available in two variants. Its unique carton pack has beendeveloped by ITC's design team to provide a novel consumer experience.

Vivel Di Wills Sheer Radiance is enriched with Olive Oil, toprovide skin lustre to make it radiant.Vivel Di Wills Sheer Crme is enriched with Shea Butter,to moisturize skin to make it soft and supple.

The Vivel range of soaps is available in four variants:

Vivel Young Glow is enriched with Vitamin E and FruitInfusions which help in providing youthful glow to the skin.Vivel Satin Soft is enriched with Vitamin E and Aloe Verawhich help the skin feel beautifully soft.

Vivel Sandal Sparkle is enriched with Sandalwood Oil andActive Clay which helpsin providing clear skin.Vivel Ayurveda Essence is enriched with multiple AyurvedicIngredients which helpprotect skin from germs and harshenvironment, keeping it healthy and beautiful.

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The Vivel range of shampoos is available in three variants:-

Vivel Shine & Glow is suitable for dull to normal hairand is enriched with Green Tea Extract andConditioners. It adds shine to hair.

Vivel Soft & Fresh is suitable for dry to normal hairand contains Extra Conditioners and Soya Protein. Itmakes hair soft and fragrant.

Vivel Volume & Bounce is suitable for oily to normalhair and contains Jojoba Oiland Conditioners. It addsvolume and bounce to hair.

In the popular segment, ITC has launched a range of soaps and shampoos under thebrand name Superia.

Superia Soaps enriched with natural ingredients give radiant glowing skin. SuperiaSoaps are available in four variants :

1 Fragrant Flower: with the fragrance of Rose & Lavender. Oil

2 Soft Sandal: with the fragrance of Sandal & Almond Oil.

3 Natural Glow: with Neem & Coconut Oils.

4 Healthy Glow: with Orange Oil.

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Superia shampoos with triple conditioners and natural ingredientsbring a naturalshine to hair. Superia shampoos are available in twovariants:

Shiny Black with Triple Conditioners and the natural goodness ofHibiscus & Brahmi extracts.

Vibrant Green with Triple Conditioners and the natural goodness ofAmla & Arnicaextracts.

Another addition to the Superia shampoo portfolio, Superia MaxiProtect Active Health shampoo contains Dandruff Fighter along withVitamins & Soya Protein. It fights multiple types of dandruff causinggerms and leaves hair & scalp feeling clean & healthy.

DABUR

Dabur India Limited is India's leading FMCG company withinterests in health care, personal care and foods. Dabur has a history of more than100 years and the company has carved a niche for it self in the field of Ayurved

icmedicines. The products of Dabur are marketed in more than 50 countriesworldwide. The company has 2 major strategic business units (SBU) -ConsumerCare Division (CCD) & Consumer Health Division (CHD), and 3 Subsidiary Groupcompanies -Dabur Foods, Dabur Nepal and Dabur International. Dabur Internationalhas 3 step down subsidiaries -Asian Consumer Care in Bangladesh, AfricanConsumer Care in Nigeria and Dabur Egypt.

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The origin of Dabur can be traced back to 1884 when Dr. S.K. Burman started ahealth care products manufacturing facility in a small Calcutta pharmacy. In 1896,as a result of growing popularity of Dabur products, Dr. Burman set up amanufacturing plant for mass production of formulations. In early 1900s, Daburentered the specialized area of nature based Ayurvedic medicines. In 1919, Daburestablished research laboratories to develop scientific processes and quality checks.In 1936, Dabur became a full-fledged company with the name Dabur India (Dr. S.K.Burman) Pvt Ltd. Dabur shifted its operations to Delhi in 1972. Dabur became aPublic Limited Company in 1986 and Dabur India Limited came into existence afterreverse merger with Vidogum Limited. In 1992, Dabur entered into a joint venturewith Agrolimen of Spain to manufacture and market confectionary items in India.In1994, Dabur raised its first IPO. In 1998, day to day running of the company washanded over to professionals. In 2000, Dabur achieved a turnover of Rs 1000crores. In 2005, Dabur acquired Balsara. Dabur crossed $ 2 billion market cap in

2006.

Some of the well-known brands of Dabur are: Amla Chyawanprash, Hajmola, LalDantmanjan, Nature Care, Pudin Hara, Babool Toothpaste, Hingoli, Dabur Honey,Lemoneez, Meswak, Odonil, Real, RealActiv and Vatika.

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VATIKA SHAMPOO

The natural shampoo that conditions from deep within, while gently cleansing andnourishing your hair. Created by the Vatika Expert with a perfect balance of naturalingredients like henna, green almonds and Shikakai. Unlike chemical shampoos thatare harsh, Vatika is mild on your hair, leaving it soft, silky and radiant, with thegentle and caring touch of nature.

More then Vatika basic care,vatika dandruff shampoo is popular.

For persistent dandruff problem, Vatika Anti-Dandruff Shampoo is the naturalchoice. This herbal treatment is completely safe and cures dandruff from within.

Enhancing your hairs natural beauty, without damaging or making it

Vatika Anti -Dandruff Shampoo uses the natural goodness of lemon and henna.Cleaning and curing difficult dandruff, while conditioning the hair to give it body andstrength.

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CAVIN KARE

Success is a journey not a destination. CavinKare began with a young mindchoosing the road less taken. In 1983 with a single product, CavinKare started outas asmall partnership firm. The Company that began its journey as Chik India Ltdwasrenamed as CavinKare Pvt. Ltd (CKPL) in 1998. With innovative Entrepreneur

C.K. Ranganathan at the helm, CavinKare emerged into a successful businessenterprise.Smart marketing and clear product positioning not only ensured CavinKare's growthbut also helped the company broaden its product portfolio extensively. Thecompany now markets ten major brands. Over the years, CavinKare has achieved acompetitive edge with sound understanding of mass marketing dynamics. Thecompany offersquality Personal care (hair care, skin care, home care) and Foodproducts borneout of a keen understanding of consumer needs and keeping upcompany's the valuesof innovation and customer satisfaction.

Today, CavinKare, having established a firm foothold in the national market, isincreasing its popularity in the international arena. A dedicated Research &Development centre, equipped with latest equipment and technologies, constantlysupports the various divisions in their endeavour. The Company, which primarilyre

lied on contract manufacturing for many years has now set up its own world classplant at Haridwar to cater to the demand of both domestic and internationalmarket.

CavinKare has touched a turnover of over 5000 million INR in 2007-2008. TheCompany has employee strength of 976, an all India network of 1300 Stockistscatering to about 25 lakh outlets nationally. CavinKare's astute professionalism,innovative products and consistent quality are results of its significant corporatepractice.

CHIK SHAMPOO

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Just a mention of Chik Shampoo today gives rise to varied perceptions. To the ruraland semi urban population of India, it is the preferred daily shampoo. To themarketand its players, the second largest selling shampoo in the country. To thecompetition, a case study in competitive strategy

In a highly competitive FMCG category that seemed impenetrable to mostmarketers.Chik Shampoo identified a humongous opportunity in rural and semiurban India and created waves with its entry into these markets. Combininginnovative sachet packing, strategic pricing (At Re.1 and 50p) and a strong andmotivated distribution network, Chik Shampoo transformed the very nature ofshampoo packaging and usage.

THE CHIK PROMISE

With a tropical climate round the year, it is indeed a difficult task to maintain hairsoftness and shine. Added to this, tangled hair has come to be the most commoncomplaint to girls and women. The Research and Development team at CavinKarerecognized softness and manageability to be the key issues in the maintenance andnourishment of hair.

This paved the way for a unique formula Active Double Conditioners that cutacross age, sex and loyalists of other shampoos to adopt Chik Shampoo. Further,

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extensive communication targeted at the rural and semi urban masses showcasedthe possibility of soft and manageable hair. The iconic Chik Girl in every ChikShampoo commercial treated her hair with the shampoo and demonstrated withatmost ease and confidence her ability to untangle her hair with just a single motionof running her fingers through her hair. Her testimonial signature Yun Kiya Ho Gayalhas come to be a popular phrase amongst both girls and women today.

THE CHIK USER

Chik Shampoo has always targeted both, girls and women in rural and semi urbanIndia. The brand has gained their confidence and become a household name bycatering to their continuously evolving requirements and preferences.

Chik Shampoo has always targeted both, girls and women in rural andsemi urban India. The brand has gained their confidence and become ahousehold name by catering to their continuously evolving requirementsand preferences.

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4 PS ANALYSIS OF PANTENE PRO-V

PRODUCT:

Clearly, Shampoo is more than just shampoo when P&G sells it. P&Gs great successin the rough-and-tumble shampoo world comes from developing an innovativeproductconcept. An effective product concept is the first step in marketing-mixplanning.

Philip Kotler defines product as Anything that can beoffered to a market forattention, acquisition, use or consumption that might satisfy a -want or need. Itincludes physical objects, services, persons,places, organizationsand ideas.

Product planners need to think about the product on three levels. The most basiclevel is the core product, which addresses the question: What is the buyer reallybuying?

Theodore Levitt has pointed out that buyers 'do not buy quarter-inch drills; they buyquarter-inch holes'. Thus when designing products, marketers must first define thecore of benefits that the product will provide to consumers.

The product planner must next build an actual product around the core product.Actual products may have as many as five characteristics: a quality level, features,styling, a brand name and packaging.

product is more than a simple set of tangible features. Consumers tend to seeproducts as complex bundles of benefits that satisfy their needs.

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Source: Philip Kotler European EditionWe will now discuss our product Pantene under the following heads:

Form:

It is available in the both premium bottle pack as well as satchets.

FEATURES:

The Pantene has whole range of shampoos with different features. These areVolume Care, Smoothing Care, Color Care, Curl Care and Basic Care, anti dandruff, anti-hair fall etc.

SIZE OF PACKAGE

Available in 100 ml,200 ml and 400 ml sizes

BRAND:

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Pantene Pro-V continues to create a line of products that transforms dull, dry,limphair into healthy, shiny hair. Their slogan: Hair so healthy, it shines!Eachof thepro-vitamin essentials has been formulated to meet a special hair care need, inparticular panthenol.

Pantene has recently been awarded Asias favorite Shampooin the ReadersDigest SuperBrands Survey.

Pantene is currently facing issues with intense competition, but their unique Pro-Vitamin ingredient makes hair strong and healthy. P&G is now one of the worldslargest beauty companies(P&G Annual report). P&G states that Pantene is theworlds largest hair care brand and that it grew in double digits over the last two-years. P&G claims that this success is due in part to their unsurpassed hairconditioning technology.

The global retail hair care market is a $34 billion industry. P&G has annual sales ofmore than $4.5 billion with leading brands like Pantene. Pantenes position in themarket is by attribute, claiming Hair so Healthy it Shinesand their latest is a haircare challenge saying, Healthier Hair in just 10 Days. Guaranteed.Panteneusesprice to slightly separate itself from its in-store competitors. The pricefor Panteneproducts is slightly higher, identifying it as a better product. Pantene is alsopositioned around the product user. It has recently done commercials

withactresses like Katrina Kaif,Sushmita Sen,Lara Dutta.Lastly Pantene is positionedby the competitor. It is perceived as a product that maintains great hair andaccording to the sales figures it is perceived as a better product by consumers.

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PRICE:

As mentioned above the 200 ml bottle was available for Rs 98 and 100 ml for Rs51.But very recently Pantene had reduced the prices and now the same 200 mlbottles are available for Rs 89 and 100 ML FOR Rs 41.

P&G has basically adopted Geographical pricing strategy for Pantene.They have setdifferent prices for Pantene in different countries.This is a very good strategicmethod as it captures the local conditions as well as purchasing power of thelocalpopulation.

When Pantene launched Lively Clean,it adopted Promotional Pricing for it andlaunched it at an introductory price of R78 for 200 ml bottle

It has also introduced Bundle Pricing where it has clubbed two or more productsandsold them at a reduced price.But this strategy has not been very successful as iteroded the premium image of the Shampoo and gave the impression of desperationof the company.

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Around 2 years back in 2006 P&G reduced the rates of Pantene by 16%. By thiswaywhat P&G did was cutting its bottle's premium over sachets. At the same timeP&Gis reducing the price gaps between its own brands. While Pantene and Head &Shoulders were sold at nearly similar price points, bringing down Pantene pricesplaced it between Rejoice (Rs 39 for 100 ml) and Head & Shoulders (Rs 64 for 100ml) and thereby segment P&G's shampoo brands at different price points. Thisstrategy is known as Product Line Pricing.

Very recently Pantene has changed its pricing approach and experimented withValue Pricing Strategy. In this Procter & Gamble made dramatic and long-termchangesin its pricing and promotion strategy during which it boostedadvertising while simultaneously curbing its distribution channel deals(in-store displays, trade deals), and significantly reducing its couponpromotions. It is interesting to notethat P&G's value pricing strategy regardingPantene is quite a misnomer. Duringthis period many stores were switching toEDLP (every day low pricing) policies,which meant that consumers would save ontheir overall purchase without having todeal shop. In contrast, P&G strategyessentially was a disguised price increase;coupons were cut by 50%, whichcontributed to an increase in the customer's price paid by 20%. It is possible thatP&G lowered their wholesale price, but the retailer only enjoyed higher margins anddid not pass the savings on to the customer. Another possibility is that retailerslowered retail prices consistently, following P&G's decrease in wholesale price, butonce promotional trade deals are factored in those everyday lower wholesale pricesdid not result in a lower total pri

ce paid. For example, if P&G's old price was Rs20,but gave deals of Rs15, at which price 90% of purchases were made, the wholesaleprice equaled Rs15.7 (.90*15 + .10*20). If P&G set a "Value Price" point of Rs18,but 100% of purchases we were made at that price, the retailer enjoyed no costsavings-only a cost increase. If P&G had truly offered price cuts their results mayhave been much different.

PROMOTION:

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The promotional strategy of Pantene is highly useful and effective. Using magazineprint advertisements and commercials allows for the opportunity to segment theiradvertisements by specific magazines, specific TV shows, and specific time slots.These strategies provide Pantene with the opportunity to wisely advertise to theirtarget audience.

Pantenes use of advertising with different ethnicities, hair types, and ages hasproven to be a critical factor because they are now developing specific hair carelinefor different types of ethnicities; they were voted Asias number one shampoo, andthey are a highly marketable product in Europe.Without promotion this brand would be relatively unknown and its popularitywouldnot be near what has been established with promotion. Many times when aconsumersees a product in the store that they have not heard of they will browseover itand choose a product they know. Consumer and market knowledge areprevalent because Pantene and P&G are built around what consumers want..Public Relations is a large aspect of the P&G/Pantene promotional mix. Proctor &Gamble does things like raising funds for children who suffer from malnutritioninIndia and Pantene recently put on the Condition for a Causecampaign, donatingmoney to heart disease research. Sales Promotion is also alarge factor for Pantene,they use marketing and business techniques to try and improve consumers lives.

They are always finding new and better ways to reach their consumers andbetweentheir PR campaigns and advertising they are constantly appealing toconsumers andcausing them to trust Pantene.Personal selling is not an aspect of Pantenes promotional selling and it would notbe wise to incorporate it. Personal selling often comes off as a sleazy salesmanscheap and last minute effort. Pantenes print and TV advertisements are enough forPantene to bring in new customers and frequently remind its loyal customers that itis still in the stores and going strong. Personal Selling would also be a pricey movethat would hinder rather than aid Pantenes efforts. Lastly, advertisingis anenormous part of Pantenes promotional mix. Without the current advertisingstrategies and past ones as well, Pantene wouldnt be the widely known and thehighlyused brand that it is today.

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

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

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In response to the change in appearance and types of product Pantene has saidthat this change was for the better and it is easier than ever to choosewhich product is best for the individual consumer. Simply pick the Pantene versionthat names how you want your hair to look: Volume Care, Smoothing Care, ColorCare, Curl Care and Basic Care.61 | Page

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Each collection includes a shampoo, conditioner, treatment and styling productsthat helps the consumer achieve their unique look. Not only did they change theirproducts to match the consumers desired style, they claim to have improved theirtechnologies.

Pantene also claims that its products have ingredients that set it apart from thecompetition. They state that each line of products in their collections has therightcombination to give customers the benefit that is spelled out in the name of theproduct.Validity: We conduct extensive scientific research and laboratory testing, as wellas in-home and clinical testing, to make sure our advertising claims are factual.Because of the competitive nature of our business, though, we're unable to providedetails to individuals about the specific research we perform.Hair care companies are building on the desire for women to maintain a young,natural, and fresh look. Marketers are also beginning to key onto teenage girlsmore. Girls ages 15-19 increased sales 6.9% from 1995-2001.Pantenes promotional tactics are ideal and we feel they are approaching thetargetaudience well.PLACE:

Placement (or distribution): refers to how the product gets to the customer; forexample, point-of-sale placement or retailing. This fourth P has also sometimesb

een called Place, referring to the channel by which a product or service is sold

(e.g. online vs. retail), which geographic region or industry, to which segment(young adults, families, business people), etc. also referring to how the environmentin which the product is sold in can affect sales.62 | Page

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Pantene has an undoubtedly amazing design & distribution channel and this can besupported

by the fact Pantene is one of the most easily available brands in the industry.

In 1998-1999. Pantene launched global corporate restructuring program calledOrganization 2005,

and made several changes in structure, work processes and culture to generategreater stretch, innovation and speed to help its products reach the market faster.

Pantene retails through Spencers,Reliance Fresh,More,RPG group and wide varietyof Kirana stores spread all over the country.

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COMPETITIVE ANALYSIS OF PANTENE

Competitors are an essential part of any products scheme of operations.Thestrategies adopted by competitors decide the operation plans for the product.So,itbecomes important to analyze the competitors on the basis of all the criterias. Butscope of this project limits us to the competitive analysis based on the 4 Ps framework.The main competitors for Pantene are Sunsilk from HUL,Fiamma Di wills fromITC,Halo from Colgate Palmolive and Vatika from Dabur India Ltd.

Competitive analysis based on:

PRODUCT:

In October, 1998 Pantene extended its product line and announced that PantenePro-V would be renamed Pantene Ultra-V due to a revamped formula and package.

In response to the change in appearance and types of product Pantene has saidthat this change was for the better and it is easier than ever to choose whichproduct is best for the individual consumer.

Pantene has named it products in a way that they represent how you want yourhairto look: Volume Care, Smoothing Care, Color Care, Curl Care and Basic Care.Each collection includes a shampoo, conditioner, treatment and styling productst

hat helps the consumer achieve their unique look. Not only did they change theirproducts to match the consumers desired style, they claim to have improved theirtechnologies.

Pantene also claims that its products have ingredients that set it apart from thecompetition. They state that each line of products in their collections has therightcombination to give customers the benefit that is spelled out in the name of theproduct.

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Pantene claims to conduct extensive scientific research and laboratory testing,aswell as in-home and clinical testing, to make sure their advertising claims arefactual.

Pantene claims to have competitive advantage on the basis of its generics and itsinnovations. It has Pro Vitamin B-5 with conditioning capabilities and P&G hasbased its promotion on this basic ingredient only.

Comparison of various shampoos on the basis of product attributes

Product Volumeattributes

Boost

Pantene yes

Sunsilk yes

Fiamma Di yesWills

Dabur Vatika yes

Chik noShampoo

Conditioning

yes

yesyes

yesyes

Smoothingcareyes

noyes

yes

yes

Curlcare

yes

nonono

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no

Anti Color BasicHair care CareFallRecentl yes yesylaunchedyes no yesno no yesno no yesyes no yes

We can see that Pantene surely has an edge on the other players in the market inthe features of product.It has got many variants as compared to the players in themarket.It has come up with a big line up of shampoos ranging from Basic Care fornormal hair to curl care for hair with heavy curls.Then there is a shampoo for people

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with color hair.Apart from this they also provide anti hair fall and anti dandruffshampoo.

But if we see the shampoo line up of other competitors we can see that no othercompetitor is present in all the categories at one go.

Out of all the competitors only Sunsilk by Unilever gives it a close fight.

Price:

Before analyzing the prices first lets have a look at the prices of players in the

market:

Product/sizePanteneSunsilkFiamma di wills

Dabur VatikaChik

100 mlRs 47

N.ARs.50Rs. 46Rs 46

125 ml

N.ARs.50

N.AN.AN.A200 mlRs.89

N.ARs 112Rs.100Rs 86

250 ml400 ml

N.A Rs.155Rs98 Rs150N.ARs158N.ARs.142Rs 14466 | Page

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As we can see that the ,main competitor of Pantene in terms of prices areSunsilk,Fiamma Di Wils,Chik ,Dabur Vatika etc.

The competitors who sell for a cheaper price include Vatika for 100 ml,Chik forall100 ml,200 ml and 400 ml,Sunsilk for 400 ml.

We can see that though P&G has adopted value pricing strategy for Pantene,itsprices are still a notch higher then that of its competitors.

Its main competition is from Sunsilk which belongs to same premium segment andwecan observe that Sunsilk is placed at better prices as compared to Pantene.

We can see that 100 ml of Pantene is available in Rs 47 whereas at almost sameprice we get 25 ml more of sunsilk(125 ml for Rs. 50)

In the 400 ml category,Pantene is the second most expensive shampoo after FiammDi Wills wich is launched only 6-7 months back.

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Promotion:

The latest campaign from the stable of Pantene is Shine Pantene. With thiscampaign they have positioned themselves on the stand that their product isthe best for providing shine to hair.To strengthen this Shine Campaign theyhave modeled their bottles as Pearly White. Sunsilk on the other other handhave modeled their bottles in the form of a Ladys figure.They havetargeted the Psychology of women and the structure of their bottles givesthe same impression that this shampoo is made for the women and suitstheir needs the best.Pantenes use of advertising with different ethnicities, hair types, and ageshas proven to be a critical factor because they are now developing specifichair careline for different types of ethnicities; they were voted Asias numberone shampoo,and they are a highly marketable product inEurope.Compared to this all the other shampoos(fiamma di willis,Chik,Vatika)are home grown brands and they dont havethe advantage ofthe global operations of P&G.Pantene has also associated itself with many charitable events as well asBeauty Contests and many movies functions. Among all the competitors onlySunsilk has the resources to promote itself through personal relations.Rest ofthe brands are just local players in this respect.

Personal selling is not an aspect of Pantenes promotional selling and it wouldnotbe wise to incorporate it. Personal selling often comes off as a sleazysalesmanscheap and last minute effort. Pantenes print and TVadvertisements are enough forPantene to bring in new customers andfrequently remind its loyal customers thatit is still in the stores and goingstrong. Some of its competitors like Cavin Kare have used this strategy alsoat the primary level.Many A grade celebs have associated themselves with Pantene whereas withChik there are no popular celeb associated.A B grade movie actress Riya senis the brand ambassador of Vatika and a newcomer like Deepika Padukone isnow the amabassador for Fiama si willis.Pantene is really a power house if wetalk in terms of the celebrity power.

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Place:

Placement (or distribution): refers to how the product gets to the customer; forexample, point-of-sale placement or retailing. This fourth P has also sometimesbeen called Place, referring to the channel by which a product or service is sold

(e.g. online vs. retail), which geographic region or industry, to which segment(young adults, families, business people), etc. also referring to how the environmentin which the product is sold in can affect sales.Pantene has an undoubtedly amazing design & distribution channel and this can besupported

by the fact Pantene is one of the most easily available brands in the industry.

In 1998-1999. Pantene launched global corporate restructuring program calledOrganization 2005,

and made several changes in structure, work processes and culture to generategreater stretch, innovation and speed to help its products reach the market faster.

Pantene retails through Spencers,Reliance Fresh,More,RPG group and wide varietyof Kirana stores spread all over the country.

Among the competitors only P&G has a distribution network comparable to that ofPantene as its is also a global biggie.Other companies are still trying to catchupwith these companies.

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COMPETITIVE ADVANTAGE

Under the marketing concept, companies gain competitive advantage by designingoffers that satisfy target-consumer needs better than competitors offers. Theymight deliver more customer value by offering consumers lower prices thancompetitorsfor similar products and services, or by providing more benefits thatjustify higher prices. Marketing strategies must consider the strategies ofcompetitors aswell as the needs of target consumers. Some of the main points thatconstitute the competitive advantage of P&G in general and Pantene in specific are:

P&G is one of the largest FMCG companies in the world. Its main competition is withUnilever which has almost equal presence in the world. Procter and Gambles salesas of November 21st, 2003 reached $44,776 million. Below