Case study on P

&G
Prasad Kumar Nayak
7207378840

Introduction to P & G
P & G India is the subsidiary of worlds
largest
consumer
goods
company
Procter & Gamble .
It is ranked 86 in the 2012 fortune 500
list with a revenue of $ 82.5 billion.
P&G India is one of the largest and
amongst the fastest growing consumer
goods companies in India.
It was established in 1964,
P&G India now serves over 650 million
consumers across India.

P & G India Products

The various brands are Vicks,
Ariel, Tide, Whisper, Olay,
Gillette,
Ambipur, Pampers, Pantene,
Oral-B, Head & Shoulders, Wella
and Duracell.

Introduction to P
&G

Its presence pans across the Beauty &

Grooming segment, the Household Care
segment as well as the Health & Well Being
segment.
P&G operates under three entities in India two listed entities
1. Procter & Gamble Hygiene and Health Care
Limited and
2. Gillette India Limited,
as well as one 100% subsidiary of the parent
company in the U.S. called
3. Procter & Gamble Home Products.

Introduction to P & G
Now it has a direct reach of 1.3 million outlets
across India.
At present, India is one of the smallest markets
for P&G with just $1-billion sales across three
subsidiaries -Procter & Gamble Health &
Hygiene,Gillette Indiaand Procter & Gamble
Home Products
P & G currently invested in the country via its
five
plants
and
over
nine
contract
manufacturing sites
It creates 26,000 jobs directly and indirectly.
Procter & Gamble, will build its largest
manufacturing plant in the Indian sub-continent
in Hyderabad by investing 345 crore.

Project 2-3-4
To strengthen its presence in India,
and increase sales 20 times from its
current $ 1b level, P&G India has
formulated a 'Project 2-3-4'.
P&G's 'Project 2-3-4,' is aimed at
2:doubling the number of Indians who
use its products,
3:trebling per capita spending by
Indians on its products and
4:quadrupling net sales of its India
operations by 2015.

Why Project 2-3-4

P & G is an organisation which traditionally
deriving its bread and butter from premium
brands, and from developed market.
2009 Sales by Geographical Region

Developing market; 22%

North East Asia; 4%

North America; 44%

Western Europe; 30%

Sources-Economic times

 Globally and within India, the company is

investing heavily in innovation, R&D and
distribution. The strategy is to make several
of its billion dollar brands more localised,
accessible and affordable for consumers.
The company is trying to strengthen its
portfolio by bringing many more brands into
the country.
The parent company also plans to launch
toothpaste brands Crest and Oral B in
emerging markets, including India by 2015.
P & G is trying to cater the gaps in its Indian
portfolio include toothpaste (a 3,000 crore
market) and soaps ( 7,000 crore).

Thank You, Mom

Campaign
P&G's corporate
campaign kicked off in

April

with its first ``Thank You, Mom'' TV spot.

It
also
has
a
dedicated
``Thank,
You
Mom''Facebookpage and app that allows
people to send ``Thank you'' messages to their
mothers.
P&G is sponsoring more than 150 global
athletes.
P&G is sponsoring a few athletes like boxer
Mary Kom and runner Kavita Raut, giving their
mothers a chance to see them perform and
hopefully win at London this year.
P&G expects the campaign to drive $500 million
in sales.

1. Analyze the sales and Distribution System of P&G?

P&G keeping broaden the market by slashing its no. of

distributors down to one-tenth of its size .
85% of its sales come from the top 30 towns & its
current volume did not justify a large distributor network.
So P&G will now have one distributer who will operate
like superstockist., which help to replenish its
distributors more frequently and reduce their average
stock level.
P&G keep growing on ROI(Return On Investment) which
resulted in each distributer trying to extend its reach to
push up volumes.

 With a limited number of distributers, P&G will

also not need to invest in C&F agents.
P & G follows wholesale format of distribution
for Vicks.
P&G is giving 6% margin to the distributor
P & G is spending 30-35 % of its sales in
Advertisement and Promotion which is
highest in the industry, HUL expends only
15% of sales on Advertisement and
Promotion.

Distribution network of FMCG:

MANUFACTER PLANT

C/F

DISTRIBUTOR

OUTLETS/ SHOPS

END CONSUMER/ USER

Distributor network of
automobile

FACTORY
DEALER

CONSUMER

THANK YOU