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3 WHY THE TARGET MARKET NEEDS THIS PRODUCT: The target market needs this product due to the following reasons: They want to feel better: Alleviate symptoms from 4 primary conditions Cure to cause Low price sensitivity: Generics are 30% to 50% cheaper and have less than 10% share No true differentiation : suggests customers should be price sensitive There is perceived differentiation: This reduces customers price sensitivity Convenience: Purchase from nearest store. It gives information about which product to use. 2. COMPANY BACKGROUND: 2.1 BRIEF COMPANY HISTORY: Proctor and Gamble Corporation is a Fortune 500 American multinational Corporation headquarted in Downtown Cincinnati, Ohio that manufactures a wide range of consumer goods. It is fifth in Fortunes most admired Companies 2011 list. William Proctor, a candle maker and James Gamble, a soap maker immigrants from England & Ireland respectively, who had settled earlier in Cincinnati formed the company initially on October 30, 1837.
forming the largest consumer goods company and placing HUL into second place. P&G again made headlines when the Food and Drug Administration approved a new product developed by the company. The company’s leaders began to diversify its products as well and 1911 began producing Crisco. On August 24th. a shortening made of vegetable oils rather than animal fats.1 billion. both in terms of manufacturing and product sales. The P&G Company is incoroporated. and P&G began branching out into new areas. P&G acquired a number of other companies that diversified its product line and significantly increased profits. this placed their management in the unusual position of testifying in court that they had entered in to transactions that they were not capable of understanding. In January 2005 P&G announced an acquisition of Gillete. Olestra. Company’s famous moon and stars symbol is created. a partnership in Cincinatti. soon renamed Ivory. the first oil vegetable shortening Brand management system introduced. the company made headlines for big losses resulting from leveraged positions in interest rate derivatives. Numerous new products and brand names were introduced over time. So the company is called the soap ivory. The company moved into other countries. It is a lower – calorie substitute for fat in cooking potato chips and other snacks that during its development stages is known to have caused anal leakage and gastrointestinal difficulties in humans. In 1994. becoming an international corporation with its 1930 acquisition of Thomas Hedley Co. 2009 the Irish – based pharmaceutical company Warner Chilcott announced they had bought P&G’s prescription-drug business for $3. an inexpensive soap that floats in water. and subsequently sued bankers Trust for fraud. KEY DATES: 1837 William Proctor & James Gamble form P&G. In 1996. 1851 1878 1890 1911 1931 Crisco. In 1880’s P&G began to market a new product. .In 1858 – 1859 the sales reached $1 million. P&G’s dominance in many categories of consumer products makes its Brand Management decisions worthy of study. P&G introduces white soap. Ohio to manufacture and sell candles and soaps.
Jif peanut butter and Crisco shortening brands are divested. Pantene pro vitamin shampoo is introduced. and Oil of Olay brands. owner of the Vicks. Major restructuring is launched. is acquired. – Eaton pharmaceuticals is P&G purchased Richardson-Vicks company. Company acquires a controlling interest in German hair care firm Wella AG.1946 1955 1957 1961 1963 1982 1985 P&G introduces Tide detergent. Company acquires Tam brands incorporation.000 job cuts and 30 plant closures. Noxell Corporation. Acquisition of Gillete Branched in to record business of Tag 1988 1991 1992 1993 1997 1998 1999 2001 2002 2003 2005 2008 . Premium pet food maker lams company is purchased. Charmin paper Company is acquired. maker of the Tam packs line of Tam pons. Crest toothpaste makes it debut. Nyquil. Company acquires the Folgers coffee brand. maker of Noxema products and cover girl cosmetics. Max Factor and Betrix cosmetic and fragrance lines are bought form Revlon incorporation. Norwich acquired. involving 13. Organization 2005 restructuring is launched. P&G acquires Clairol hair care business from Bristol Myers squibb Company. Test marketing of pampers disposable diapers begins.
Safeguard / Escudo : Establishing good hygiene habits early is essential to protecting children from disease.1 billion to Irish based pharmaceutical Company. Learn and Thrive has improved life more than 300 million children. 2009 P&G sold their prescription-drug business for $3. SITUATION ANALYSIS : 3.records. children now have better access to education in poverty stricken rural areas of China. P&G and feeding America : Everyday. 13 million children in the United states risk going hungry. ALWAYS AND TAMPAX : Protecting futures works with other organizations to help vulnerable girls stay in school. P&G and Shiksha : India has the World’s largest number of Uneducated children – but P&G’s Shiksha (Hindu for “education”) is dedicated to fighting that Trend. Mexico and beyond as effective agents for change.2 MISSION STATEMENT 3. But P&G is helping to change that. So Safeguard/Escudo engages school children in China. 2.1 ENVIRONMENTAL ANALYSIS 3.1 Social Environment: P&G’s Live. Some of other social responsibilities they involve are : PAMPERS AND UNICEF : Pampers and Unicef are working together to vaccinate women and children around the world from Maternal and neonatal tetanus. P&G and Hope schools : Thanks to P&G Hope schools.1. .
S. Legal. Working with the businesses. P&G participates in the political process to help shape public policy and legislation that has a direct impact on the Company.S state capitals and in key country capitals around the world. voluntary financial contributions to support candidates at the federal. P&G’s public policy and legislative priorities are reviewed regularly with senior business leaders and annually with the Governance and Public Responsibility Committee of the Board of Directors. P&G Political Action Committee (P&G PAC) The P&G PAC is a voluntary. in U. U. Human resources. nonpartisan political action committee. Registered as the P&G Good Government Committee with the U. This engagement ensures that the interests of their employees. D. who .S Corporate Political Activity : P&G engages in the political process by providing financial support to selected state ballot initiatives and issue advocacy campaigns that have a direct impact on the business. P&G GGR focuses on legislative and public policy issues that impact the company’s bottomline and long-term business interests. Lobbying Activity: P&G’s Global Government Relations team(P&G GGR) represents the Company’s point of view in Washington. They are committed to being transparent about their political involvement globally.ECONOMIC ENVIRONMENT P&G economic development is as follows : Share holder value Employment Taxes. state and local level.C. fees and and Contributions POLITICAL ENVIRONMENT: P&G guided by their Purpose. the PAC allows P&G employees to poolpersonal. P&G’s involvement in these campaigns is overseen by a multifunctional team comprised of representatives from Global Government Relations.Federal Election Commission and appropriate state offices. Values and Principles. Corporate Communications and other functions related to the specific issue under consideration. consumers and their shareholders are fairly represented at all levels of Government around the world.
TECHNOLOGICAL ENVIRONMENT: SWOT ANALYSIS: STRENGTHS: Leading market position Diversified and Innovative product portfolio Strong finances in past years OPPURTUNITIES: Developing markets Demographic trends across the world WEAKNESSES: Quality control problem Reduced revenues in their Northeast Asian market.support issues important to the business and the quality of life in the communities in which we live an work. THREATS: Competitors Rising cost of energy prices New Regulations .
e) most profit is earned by the market as a whole. Globally Vicks brand is worth around 3000 crores. without the prescription of a Registered Medical Practioner) brand in India. Vicks recently ventured in to 550 core cough syrup market with its Formula 44 in October 2003.GENERAL PRODUCT MARKET CHARACTERISTICS: Vicks is a product that is more than 50 years old. Launched in 1979 this is the first advertised OTC (allowed to be sold over the counter. Vicks has reached the maturity stage (i. This brand which is now relaunched talks about its ability to provide relief about cold related symptoms. The brand’s usp (unique selling proposition) is 8 hrs relief from cold and targeted at kids. In 1989 RHL became P&G hygiene & health care. Later in 1964. At this stage Research and Development is likely to be restricted to product modification and improvement and perhaps to improve production efficiency and quality. cough syrup and drops. medicated skin treatments. In 1985 RHL became the affiliate of P&G. Richardson Hindustan Ltd was formed to manufacture the product. TYPE OF PRODUCT: . It was manufactured by Vicks Products ltd. It has established its trust with the customers. Vicks had used careful branding and packaging for promoting the products. Vicks brand was launched in India in 1951. Vicks Vaporub is the market leader in this segment with the share of 50%. Vicks is a brand that is enjoying tremendous equity in the market. It is the leading brand in Fast Moving Health goods (FMHG). FMHG market calls for umbrella branding since it is difficult and expensive to create trust for individual brands in that category. Vicks inhaler was launched in 1951 created and owns the inhaler category is one of the first products launched in India from Vicks. Vicks action 500 has been in the market for more than 25 years. That is the reason behind Vicks extending its equity across the various categories. skin treatments. digestives and health supplements. FMHG Industry in India is worth around 4500 crores. Over these years the brand has carved a position for itself for around 40% market share in the category. This market is dominated by products like Rubs & Balms. Vicks in India is known for its Vaporub & Coughdrops. PRODUCT LIFE CYCLE: The stage through which individual products develop over time is commonly known as “product life cycle”.
INCOME: People of low income to people of high income can all afford Vicks. and sinus symptoms. chest congestion). chest cold. 1. 4. flu. SELECTION OF TARGET MARKET: Vicks was initially targeted at children but later the company found that it is used mostly by adults. chest cold. Vaporub advertises itself as having 6 key benefits. Because people of all age group are likely to be affected by the said problems.Vicks is a health care product. Head ache relief. Vicks vaporub is positioned along Mother’s love platform. cold. flu. Cough relief 3. cold. Black and white are all can use Vicks. The basis for the segmentation is These segments have enough profit potential The segmented consumer needs are homogenous (Relief from cough. Sinus patients are also the target market for Vicks. .Clearing blocked nose 2. chest congestion. BEHAVIORAL SEGMENTATION: Vicks are often used by people on special occasions when they are suffering from cough. GENDER: Vicks is used by both Male and Female. Vaporub pioneered the concept of “Touch theraphy” linking it to the rubbing of vapour on the child’s chest. RACE: Asian. APPROACHES TO SEGMENTATION: Approach and Reasoning for it: The segmentation is based on demographic and behavioural characteristics. POSSIBLE MARKET SEGMENTS: DEMOGRAPHIC SEGMENTATION: AGE: Vicks is used by almost all ages of people. Body ache relief. Hispanic.
efficiency and consumer value. The smart positioning and campaigns has ensured the brand retaining the top position in the market.Easing breathing difficulty. STRATEGIC FOCUS AND PLAN CORE COMPETENCIES: Consumer understanding: Uncovers the unarticulated needs of consumers. The ad shows a father taking care of the child using Vaporub when mother is away. Relaxing muscle stiffness 6.5. A key differentiation that Vicks is seeking is to create a remedy that is useful for more than just flu season. SUSTAINABLE COMPETITIVE ADVANTAGE: Its competitive advantage over the other products in the market is that it provides liquid based colds care products. Vicks Vaporub has established itself as market leader in vaporub segment and gives tough competition to certain products in other . benefit driven brands Go – to – market capabilities: Reaches retailers and consumers at the right place and time Scale: Drives. The recent ad campaign also involves father in to the picture. They produce non greasy products which has a competitive advantage over its major competitor Iodex. Innovation: Translates consumer desires in to new products Brand – building: Shapes purpose – inspired. GENERAL MARKETING STRATEGIES: A profitable venture of Proctor & Gamble.
Australia and the rest of Asia. The advantage of being an non prescribed drug. The collection of order from the local dealers is a task left upon the MRs (Medical Representatives) who collect orders and report to the distributors. They store the goods in great bulks and lead to artificial scarcity of products. P&G has found an effective reply to this situation by the designing of their super distributor system. It is aware of the presence of other competitors and thus it has not remained static in terms of its promotional strategy and has also simultaneously been incumbent upon increasing its market share by indulging into intensive promotions strategies such as free vicks Inhaler along with Vicks Vaporub. organized and regulated by one company namely. Their entire marketing strategy is based upon its principle and thus they have only one marketing channel for all its products.segments also. Vicks does not count solely upon its share as market leader. discounts. This being the general and overall view of the strategy of vicks. The strategy followed by Vicks for the marketing of the product may be understood as follows : Vicks Vaporub or for that matter no product of Vicks does not have a separate market channel for itself. To speak of them. Each and other offers. Thus it has constantly tried to lure the consumers to stay with it while penetrating the market deeper. Now these hoarders are none else but what we call as black marketers and they are not specific to vicks but in general hoard all products in the commodity segment especially the FMCGs. Proctor & Gamble Hygiene Products Ltd. who also employ them for this purpose. it is important to appreciate its inherent advantage as a Procter & Gamble product. It is also noted that the market of vicks vaporub is not concentrated to India alone. The distinct niche it has created in the market is because of the fact that the company realizes its position as market leader and thus the formulation of policies accordingly. we have to take an insight into the specific areas of the marketing strategy of the vicks. These cause great problems in the assessment of real demand of the consumers and the real consumption of the products. All products marketed by one single marketing channel. This is to say that the same set of dealers for its products who market them all and thus the cost of marketing each product is saved in terms of distribution cost. MARKET RESEARCH PLAN: . 20% extra on each pack of 50g. Another factor in this distribution channel is the presence of hoarders. the cost of giving samples to the doctors is saved considerably. The fact is that P&G believes in exploiting its resources and putting them to their maximum usage. They being aware of the local peculiarities. Vicks Vaporub exports to markets such as Japan. thus raising the prices. effectively deal with the hoarding effect and do not allow the company to suffer on these counts.
Are you aware of brand Vicks? Yes No 2. 1. How long you can recall Vicks brand? Since 1952 Since 1970 Since 1980 Since 1990 Since 2000 3. Which slogan of Vicks you can recall first? Khich – khich door karo Haan bhai haan Touch therapy Happy birthday mummy Vicks khich khich door kartha hai 4.QUESTIONAIRE: We are students from SSN School of Management and Computer Applications. You are requested to participate in the survey that would help us in performing our research as per our curriculum. Which product of Vicks first come to you mind? Vicks Action 500+ Vicks Vaporub Vicks Coughdrop Vicks formula 44 Cough drop syrup Vicks inhaler 5. Thank you very much for the time and support. How does the logo of Vicks appear to you? Poor .
If Vicks is not available to you nearby shops. Is Vicks most trusted brand? Yes No 10.Average Good Better Best 6.Best. what will you do? Choose another brand . When do you use Vicks? Blocked Nose Cough Body ache Head ache Breathing difficulty 8. How will you rank Vicks on the scale of 5? (5.Worst) 5 4 3 2 1 9. Why do you prefer Vicks Less greasy Smells better Fast relief Long lasting relief All of the above 7. 1.
The ad campaign also involves “Father” in to the picture. Vicks Cough drop produced the catchy character “Kitch Kitch”. Vaporub was initially targeted at children but later the company found out that it is used mostly by adults. The smart positioning and campaigns has ensured the brand retaining the top position in the market. . Vicks Vaporub is positioned along Mother’s Love platform. With unique shape and the long lasting positioning “Vicks ki goli lo Kitch Kitch door karo”. Vaporub pioneered the concept of “Touch therapy” linking it to the rubbing of Vaporub on the child’s chest.Go to another shop RESPONSES: MARKETING PROGRAM POSITIONING: It is a tool to differentiate different brands by the consumer in their own way. The ad shows a father taking care of the child using Vaporub when the mother is away.
In 1985. RHL became P&G hygiene and health care. • • • FEATURES AND BENEFITS: . PRODUCT STRATEGY: BRAND NAME” A Brand name is a living memory in buyers mind Like Vicks. inhaler and caplet are examples of using product form as a differentiating factor. Richardson Hindustan Ltd. The campaigns of Vicks-Honey also strengthens the time tested positioning of the brand. Vicks got its name on the name of its manufacturer. In 1989. RHL became the affiliate of P&G. The unique shapes of cough drops. Vicks got its name through following series of events: • First it was manufactured by Vicks Products Ltd. took over it. Name is a tool for communication. In 1964.
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