P&G Products

Presented By:Bhavin Agrawal (02)Nikita Balar (04)Malvi Bhatt (08)Ishani Dave (14)Nitin Madhavi (28)Kushal Mehta (31)

• American multinational consumer goods company • Home Care brands - detergents – Premium Priced Product : Ariel• Market Share: 6%• Maintains Technological Superiority Impression• Quality Conscious consumers

– Mid Priced Product: Tide• Market Share: 13.5%• Outstanding whiteness• Price Conscious consumers

http://www.indiafoodbrief.com/index.php/from-the-editors-desk/130690-the-big-suds

Detergent Forms

Segmentation

•Demographic: Gender: FemaleAge: 25-35 years, 36-45 years, 46-55 yearsUpper class, Upper Middle class•Occupations: self-employed, skilled workers•Psychographic:Culture-oriented, Sports-oriented•Behavioral:Benefits: Quality, Service, SpeedUser Status: Regular User, Potential User, Non-user

Demographic:Gender: FemaleAge: 18-28 years, 29-39 years, 39-49 years, 50-55 yearsMiddle class•Occupations: Self-employed, skilled workers, Unskilled workers•Psychographic:Culture-oriented, Outdoor-orientedBehavioral:Benefits: Speed, WhitenessUser Status: First-time user, Regular user, Non user

Target Market

•General Consumers having frequent stain problem on cloths•Quality Conscious consumers•Washing Machine Users•FemaleAge: 25 to 50 years

•General Consumers who are concerned with the whiteness of the cloths only•Price Conscious consumers•FemaleAge: 18 to 54 years

Positioning

• Removes tough stains• Superior technology• Importance to quality

• Outstanding whiteness• Low Price

SWOTAnalysis

SWOT Strength

- World leader in detergent segmentQuality detergent – can remove the toughest stains- 1st to introduce fragrances in the market

Weakness- Higher price- Strong competitors

Opportunity Threat- Big untapped rural market - Can use its brand imprint in the minds of people to increase its customer base

- Various lower priced products available in the market- Counterfeit products in rural areas

SWOT Strength

- Benefit or attribute over other products in the same category- Leading market position- Lower price and good quality

Weakness- Substitute products available- Strong competitors

Opportunity Threat- High potential of rural market has a lot of opportunities - Changing lifestyle of people want cheap product with good quality

- Price wars with competitors- Counterfeit products in rural areas

Competitors

Packaging

Change In Packaging Of Tide

500gm -48rs1kg - 96rs2kg - 192rs4kg - 382rs6kg - 568rs

150 gm - 10rs750 gm - 39rs1kg - 64rs

500gm - 43rs1kg - 85rs2kg - 192rs4kg - 382rs6kg - 568rs

Change In Packaging Of Ariel

500gm – 94rs1kg – 185rs2kg – 369rs

1kg -105rs2kg - 205rs

500gm -94rs1kg - 195rs2kg - 388rs

1kg - 160rs2 kg - 369rs

Pricing

P&G uses following pricing strategies• Competitive pricing• Product line pricing• Optional feature pricing

Competitive Pricing

• Setting a price in comparison with competitors.

• A firm has three options and these are to price lower, price the same or price higher

Product Line Pricing

• Pricing different products within the same product range at different price points.

Optional Feature Pricing

• Offer Optional features and services along with main product

Appeal

Emotional Appeal

This commercial advertisement of Tide does the Emotional Appeal. In this we see that tide shows that the Tide it gives better whiteness with less efforts to be done.

The line “Behtarin Khushboo, aur Hatho Ki Narmai” and “Mrs. Ke Mulayam Hatho ko Dekho” shows that husabnd cares for her wife and wife gives whitness to her husband’s cloth.

Social Appeal

This commercial of Ariel does the Social Appeal regarding the Respect of the women that they are not made to do only household work.

Present era they are working hand-in-hand with the man. So, man must also help to do her work.

Repositioning

Repositioning

• Superior technology and created fragrance oriented detergent powder

• Lot of attention to cleanliness, freshness• After observing that tide was not capturing the lower

segment of the market it repositioned itself by slashing down the price of the detergent.

• Also introduced detergent sachets • Introduced detergent bars to gain more acceptances in

India specifically in the rural markets

Distribution

Distribution Strategy

• The most important aspect of the fast moving consumer good is its distribution channel strength. This is because the market for FMCG products is competitive and so, there are a lot of substitutes present.

• Tide was actually passed on to the already present distributors, resulting in a time saving proposition for the product to reach its customers.

• P&G CEO Mr. A.G. Lafley agrees about the excellent distribution network that Hindustan Unilever Ltd. has and states that the main reason has been its presence in India for about 100years.

• He also says that in order to do give HUL a run for their money, P&G will have to do something innovative as far as the supply chain is concerned. Actual Situations As per P&G’s policy, it measures customer satisfaction in two levels. Firstly, the consumer is not satisfied if the consumer goes to a shop to buy Tide and finds out that it is not available. So what happens the potential consumer ends up buying a rival product.

• P&G plans to bring new techniques and ideas for improving its supply chain. It plans to- • Building collaborative supply chains at several levels • Ensuring that the manufacturing sites serving both global and local customers are highly responsive to changes in demand, based on real time data for the stores

Push & Pull Strategy

P&G

• As the company manufactures the FMCG convenience/ necessity goods

• So the distribution network of the company needs to be very strong and proactive.

• Promotional Strategy– P&G insists on a pull strategy– Heavy promotional advertising

Pull strategy

• Price off deals: Reduction in the prices of its Tide and Ariel brands by 20-50 %

• Packet price: 1 kg– Ariel : Rs 135 to Rs 99– Tide : Rs 85 to Rs 46

• Strategy– Promote sachet experience– Get the masses to experience their products

• Manufacturer• Price off deals

• Consumer• Attracted towards product• Specially price conscious

consumers• Expansion of Ariel market

• Reseller• Stocks and Supplies accordingly

Problem

• People were unable to differentiate between Ariel and Tide detergent.

• Specially Ariel detergent users as they were more quality conscious and loyal as it is high tech product.

Push Strategy• Heavy advertising– Advertising agency: Saatchi & Saatchi

•Manufacturer•Promotional Advertisement

•Reseller•Stocking product•Reseller promotion

•Consumer•Product Use

Communication Through

Advertisement

Target people in specific roles

Encouraging problem recognition through communication

Thank You !!