Report on Procter & Gamble (P&G)

Submitted by-
SamriddhyaChakraborty
MBA 1 (Marketing)
MBA17H38

Semester II Final Project, Pune Institute of Business Management
1
Contents
SECTOR INFORMATION....................................................................................................................2
FMCG Sector..................................................................................................................................2
Market Size....................................................................................................................................2
Contribution to GDP ......................................................................................................................3
Future of FMCG Sector...................................................................................................................4
Growth Drivers..............................................................................................................................4
Hair Care Sector ............................................................................................................................5
Porter’s Five Forces Model................................................................................................................6
Company Snapshot............................................................................................................................7
P&G India......................................................................................................................................8
Leadership of P&G India................................................................................................................9
Leadership of P&G.......................................................................................................................10
History ........................................................................................................................................10
Swot Analysis of P&G......................................................................................................................11
ProductPortfolio.............................................................................................................................14
Oral care......................................................................................................................................15
Beauty & Personal Care ...............................................................................................................15
Detergents & Fabric Care.............................................................................................................18
Household Care ...........................................................................................................................19
Hair Care .....................................................................................................................................21
Child & Women Hygiene..............................................................................................................22
Competitor Analysis........................................................................................................................23
Recent News ...................................................................................................................................23
Marketing Strategy..........................................................................................................................24
Swot Analysis of Pantene Pro-V Total Damage Care Shampoo .....................................................24
Marketing Mix .............................................................................................................................25
STP of Pantene Pro-V Total Damage Care ....................................................................................29
PLC..............................................................................................................................................30
Distribution Network ..................................................................................................................31
Digital Marketing Strategy...........................................................................................................32
Conclusion ......................................................................................................................................33
References ......................................................................................................................................33

2
SECTOR INFORMATION
FMCG Sector
 The 4th largest sector in the Indian economy is the Fast-moving consumer
goods(FMCG) Sector.
 Household and Personal Care accounts for 50 per cent of FMCG sales in India.
 The main reason behind the growth of the FMCG sector is growing awareness, easier
access and changing lifestyles.
 The market size of the urban segment which is the largest contributor to the overall
revenue generated by the FMCG sector in India is around US$ 29.4 billion in 2016-17
and it accounts for a revenue share of around 60 per cent.
 However, in the last few years, the FMCG market has grown at a faster pace in rural
India compared with urban India.
 Semi-urban and rural segments are growing at a rapid pace and FMCG products account
for 50 per cent of total rural spending.
Market Size
 Modern trade expected to grow at 20 per cent - 25 per cent per annum, which may lead to
a growth in the revenues of FMCG companies.
 In 2016-17, revenue for FMCG sector have reached US$ 49 billion and is expected to
grow at 9-9.5 per cent in FY18.
 It is also expected that the total consumption expenditure would reach nearly US$ 3,600
billion by 2020 from US$ 1,469 billion in 2015.
 Currently, it is expected that favourable demographics and rise in income level will boost
FMCG market.
 FMCG market in India is expected to grow at a CAGR of 20.6 per cent and is expected to
reach US$ 103.7 billion by 2020 from US$ 49 billion in 2016.
 Also, it is said that a rise in rural consumption will lead to a growth of the FMCG market.
 The rural FMCG market in India is expected to grow at a CAGR of 14.6 per cent, and
reach US$ 220 billion by 2025 from US$ 29.4 billion in 2016.

3
Contribution to GDP
 The FMCG sector roughly contributes 2.4% to India’s GDP.
29.4
100
220
0
50
100
150
200
250
2016 2020E 2025E
Rural FMCG Marketin India (US$ billion)
2016 2020E 2025E
2.4
97.6
Contribution to GDP (in Percentage)
FMCG Others
49
103.7
0
20
40
60
80
100
120
2016 2020F
FMCG Market in India (US$ billion)
2016 2020F

4
Future of FMCG Sector
 The incomes of Rural people have increased and so has the needs and this has caused an
increase in demand for branded products and Rural consumption also.
 The rural FMCG market in India is expected to grow at a CAGR of 14.6 per cent, and
reach US$ 220 billion by 2025 from US$ 29.4 billion in 2016.
 Also, the decrease in the share of the unorganized sector in the FMCG sector, increase in
the level of brand consciousness and growth of modern retail will lead to a growth of the
organized sector.
 India has a growing youth population especially in the urban area which is causing the
demand to rise for food services because nowadays individuals lead a busy life and have
no time for cooking.
 Online portals and Internet would play a key role in increasing a company’s reach in a
cheap and convenient way.
 According to Mr Mark Mobius, Executive Chairman, Templeton EM, the Goods and
Services Tax (GST) will lead to mergers and rise of world class consumer companies in
India.
Growth Drivers
Increase in income of Rural people- The government is taking a lot of initiatives to develop
rural infrastructure and improve rural income. This would boost rural consumption and spending
and in turn lead to the growth of the FMCG sector.
GST- This is also another factor which is driving the growth of the FMCG sector. Many of the
consumer goods are placed between 0-5% bracket which is lowering the input costs. Also, in the
Growth
Drivers
Increase in
Rural
People's
income
GST
Rising
PopulationInnovation
Population
Demographics

5
toiletries space the Government has given special treatment to products of daily use like
toothpaste and hair oil to boost consumption.
Rising Population- Currently, the population of India is 1.34 billion and is growing annually at
a rate of 1.2%. This overwhelming population would lead to greater demand for FMCG products
in the coming years and this would lead to the growth of the FMCG sector in turn.
Innovation- According to experts, technology and innovation would be a key to the growth of
the FMCG sector. Companies are increasingly focusing on developing more and more innovative
products like Britannia has come up with a product called ‘Pure Magic Deuce’.
Population Demographics- The average age of an Indian is 25 years. So, India consists of a
young population. These population demographics is driving the need for FMCG products
especially ready to cook products as people nowadays lead a busy life and have no time to cook.
Hair Care Sector
Pantene Shampoo is a hair care product. The current revenue earned in this segment is around
US$ 2900 mn and it is projected to be around US$ 3,046 mn in 2018. The segment is projected
to grow at a CAGR of 4.8% during the period 2018-2021 and the revenue forecasted in 2021 is
US$ 3,502 mn.
As per the population figures, currently revenues of US$ 2.13 mn are generated per person and it
is projected to be US$ 2.25 mn in 2018 and reach US$ 2.50 mn by 2021. In the international
market, most revenues are generated in the US (US$ 15,222 mn currently).
The market for shampoos is valued at around INR 60 billion in 2016 and holds 30% share out of
hair oil, hair styling products and hair color. There are various players like ITC, HUL, Dabur,
P&G, Cavin Kare and so on.
2440.2
2647.6
2853.5
3045.8 3220 3373.3 3501.6
0
500
1000
1500
2000
2500
3000
3500
4000
2015 2016 2017 2018 2019 2020 2021
Revenue (US$ million)
Revenue (US$ million)
1.86 2 2.13 2.25 2.35 2.44 2.5
0
0.5
1
1.5
2
2.5
3
2015 2016 2017 2018 2019F2020F2021F
Average Revenue per person
(US$ million)
Average Revenue per person (US$ million)

6
Porter’s Five Forces Model
Rivalry Among Competing Firms
High rivalry exists among firms in the FMCG sector. Due to the fact that the market is saturated,
companies try and gain market share through heavy promotion and price wars.
30%
53%
2%
15%
Hair Care Sector Breakup
Shampoo
Hair Oil
Hair Styling Products
Hair Color
24%
48%
9%
9%
7% 5%
Market Share of Key Players in the Shampoo
Industr y
P&G HUL Cavin Kare L'Oreal Dabur Others
Porter’s Five
Forces
Threat of New
Entrants
Competitive
Rivalry
Threat of
Substitutes
Bargaining Power
of Suppliers
Bargaining Power
of Consumers

7
Threat of New Entrants
High threat of new entrants exist. Firms can easily enter the market without much barriers to
entry or exit and the sector is very attractive due to its cost effectiveness which attracts more and
more firms.
Threat of Substitutes
High threat of substitutes is another characteristic of the FMCG sector. There are many players
in the market dealing in the same type of products. Therefore, consumers have a lot of options to
choose from. It is for this reason that shifting is a common phenomenon in the FMCG sector.
Bargaining Power of Suppliers
Low bargaining power of suppliers is visible in the FMCG sector. There are plenty of raw
material and intermediate goods suppliers. So, there is no monopoly situation on the supplier
side. Companies can change the supplier if it wants.
Bargaining power of Consumers
High bargaining power of consumers exists because of low switching cost of most of the goods.
Consumers can easily switch to other brands if they are not satisfied with a particular brand.
Also, they can try new products which shows that customer loyalty is hard to find in the FMCG
sector. Therefore, consumers play a key role in determining the activities of the firms.
Company Snapshot
Procter & Gamble Co. (P&G) is an American multi-national consumer
goods corporation headquartered in downtown Cincinnati, Ohio, founded in 1837 by British
American William Procter and Irish American James Gamble. It primarily specializes in a wide
range of cleaning agents and personal care and hygienic products. Before the sale of Pringles to
the Kellogg Company, its product portfolio also included foods, snacks and beverages.
The annual revenue of the company in 2016 was around US$ 65.29 billion. It has an employee
strength of 95,000 people globally.

8
P&G has 23 Billion-Dollar Brands with annual sales of $1 billion to more than $10 billion, and
14 with sales of $500 million to $1 billion — many of those with billion-dollar potential. Nearly
all of their 23 billion-dollar brands and the vast majority of their $500 million to $1 billion
brands hold the number one or two position in their category or segment, and they all have
significant growth and value creation potential.
P&G serves nearly 5 billion people around the world with its brands. The Company has one of
the strongest portfolios of trusted, quality, leadership brands, including Always, Ambi Pur, Ariel,
Bounty, Charmin, Crest, Dawn, Downy, Fairy, Febreze, Gain, Gillette, Head & Shoulders,
Lenor, Olay, Oral-B, Pampers, Pantene, SK-II, Tide, Vicks, Wella and Whisper.
P&G has operations in about 80 countries. P&G's well-known, trusted brands touch the lives of
consumers in more than 180 countries. It operates in Asia, Central & Eastern Europe, Middle
East and Africa, North America and Western Europe.
P&G recently grouped its Global Business Units into four industry-based sectors as part of the
Company’s ongoing plan to improve business performance. The businesses in each sector are
focused on common consumer benefits, share common technologies, and face common
competitors.
 Global Beauty
 Global Baby, Feminine and Family Care
 Global Fabric and Home Care
 Global Health and Grooming
P&G India
P&G was established in India in 1964. Currently, it serves around 650 million consumers across
India. It has presence in the Beauty & Grooming segment, the Household Care segment as well
as the Health & Well Being segment, with trusted brands that are household names across India.
These include Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambi Pur, Pampers, Pantene, Oral-B,
Head & Shoulders and Wella.
P&G currently is the market leader in many categories. P&G India is committed to sustainable
growth in India, and has currently invested in the country via its five plants and over nine
contract manufacturing sites, as well as through creation of more than 20,000 jobs. It has four
manufacturing plants in Goa, Baddi (Himachal Pradesh), Mandideep (Madhya Pradesh) and
Bhiwadi (Rajasthan). Currently, it is setting up a 900 cr. plant in Telangana.

9
Leadership of P&G India
Managing Director (P&G India)
Mr. Madhusudan Gopalan
Mandideep (Madhya Pradesh)
Manufacturing Plant
Goa Manufacturing Plant
Bhiwadi (Rajasthan)
Manufacturing Plant
Baddi (Himachal Pradesh)
Manufacturing Plant

10
Leadership of P&G
History
1837
It all began with a simple handshake
between two men: William Procter and
James Gamble. As partners, they put
their soap and candle business on the
map, spawning a period of steady
growth. It was during these formative
years the Procter & Gamble Company
was born.
William Procter,emigrating from
England, established himself as a candle
maker in Cincinnati. James Gamble, an
immigrant from Ireland, apprenticed
himself as a soap maker. They might
never have met had they not married
sisters — Olivia and Elizabeth Norris. It
was their father, Alexander Norris that
noted his two new sons-in-law were
competing for the same raw materials.
He suggested they become business
partners. What began as a family-run
candle and soap business would
eventually grow into the largest and
most profitable consumer goods
company in the world.
Chairman, President &CEO
Mr. A.G. Lafley
Founders- William Procter & James Gamble

11
Swot Analysisof P&G
Strengths
Brand equity – One of the best advantages of P&G is that it owns brands which are very
valuable by themselves. It owns Gillette which is the 138th ranked brand in the world and has a
20-billion-dollar brand valuation. It also owns Tide and Ariel which are in the top 500.
Pampers, Pantene, Vicks, Whisper, Olay are all famous brands by themselves. Naturally, P&G is
an umbrella brand company and the parent brand has a fantastic valuation.
Economies of Scale – With such top players in its product portfolio, Economies of scale is a major
advantage with P&G. It shares resources such as warehouses, accounts, factories, and any other
fixed incomes which are otherwise an unscalable cost expenditure. As the operation rises, the
economies of scale also increases.
Excellent R&D – An advantage of P&G is its excellent R&D due to which it has innovated and
brought many products in the market which have taken the market by storm. This is the reason that
P&G has a good bottomline. All its products are innovative in nature.
Multinational and Multi product line presence – P&G is a multinational company being
originated from United States. It has a fantastic multinational presence and is known to operate in
a whopping 180 countries. Besides operating in so many countries, it also has a fantastic product
line. On latest count, it had 65 brands, each of which will have their own product line. So you can
understand the depth of operations at P&G.
High gross profit margin – Because of their expenditure in R&D as well as Marketing and
distribution, P&G believes in keeping higher profit margins, a strategy which has benefited them
immensely because they have the highest margin in the FMCG industry. This in turn results in the
brand investing even further in brand building and therefore revenue generation.
Partnership Agreement leading to the formation of P&G

12
Fantastic distribution channel – Be it Rural, Urban, Moden or Online, P&G brands have covered
all distribution channels. There is so much demand for the product by themselves, that if they are
not present in the market, then a competitor will soon take over. But the job done by the distribution
team is commendable because managing the inventory and deliveries of so many products across
so many locations is a tough job.
Known for its Marketing strategies – P&G is known for its marketing strategies including its
tactics used on the ground. P&G is one company which uses pull marketing effectively and we
can see the effect in Tide, Ariel or Olay. Furthermore, the Integrated marketing communication of
the brand is excellent and it uses multiple channels to reach its audience.
Weaknesses
Loss due to closure of brands – Prior to 2014, P&G had close to 300 brands but it pruned its
brand portfolio to include only 65 brands which were driving 95% of its overall profits. With this
move, P&G also underwent a loss because a lot of capital as invested in growing the other 235
brands. But it was a necessary move which set the mood for the rapid boost of the P&G brand.
Organization structure causes slow decision making – Because it is an old Organization and as
there are so many SBU’s and portfolio’s to manage, the decision making is said to be slow and
hence it affects the organization as a whole.
Low organic growth – Rate of Increase in customer base is slow as saturation curve is reached
and lower innovation is happening. As a result, P&G is going through a phase of low organic
growth. For P&G to overcome this, it has to pull off some unique marketing and product gimmicks
to get the sales going.
Regular change is needed – In the beauty and personal care products, the market trend is that
every single month, the market demands that the products be changed. A new fragrance be
introduced or a new variant be introduced in the market. This regular change is an inherent
requirement of the market, affecting the profit of the firm.
Opportunities
Rural markets – A major challenge for all FMCG companies is penetrating the rural markets,
which are price sensitive and impervious to advertisements. Availability and pricing are two
major factors affecting the decision making of rural markets and this is an opportunity still for
the likes of HUL and P&G.
Increase organic growth – By launching better products in the market or increasing the marketing
effort, P&G can get its brand going again. Even age old dominants like Gillette have been shaken
by private label brands like Dollar shave club. So increasing organic growth promises a positive
future for the brand.

13
Increased purchasing power – Purchasing power of consumers is going to increase in the near
future with economies booming across many countries. These developing economies will give rise
to better markets and thereby they become ideal target markets for the likes of P&G.
Mergers and Acquisitions – Acquisition of local competition who are good in their products
or distribution channel is a way to eliminate the competition and also to add a new product in the
portfolio.
Overseas growth – As mentioned above, with the increase of purchasing power in under
developed and developing economies, P&G will observe better growth in overseas markets as
compared to its home market – USA.
Threats
Intense competition – P&G has to constantly worry about competition especially from HUL.
HUL is a competition in several product lines and the brands are constantly at loggerheads, a
reason which affects the profitability of both brands.
Increased local / Unbranded competition – With governments supporting local brands and Make
in India campaign, as well as foreign countries supporting their own infrastruture and
manufacturing, me too products are on the rise and therefore offer higher local or unbranded
competition to the likes of P&G.
Private labels – Many retail brands Like D Mart and Reliance fresh have starting with their own
brands and are planning their own private labels also for detergents, personal care products and
others. Soon, something similar can be expected from E-commerce players who will manufacture
and sell at lowest costs because they dont have the expenses of distribution to incur. Naturally,
these private labels affect the overall sale of P&G.

14
ProductPortfolio
Healthcare
Vicks is an American brand of over-the-counter medications owned by the American
company Procter & Gamble. Vicks manufactures NyQuil and its sister medication,
DayQuil. The Vicks brand also produces Formula 44 cough medicines, cough
drops, Vicks VapoRub, and a number of inhaled breathing treatments
Chewable tablets which gives 5 symptoms digestive relief: heartburn,
indigestion, nausea,upset stomach, diarrhea. Original wintergreen
flavored liquid with maximum strength.
Prilosec OTC is clinically proven to block heartburn for 24 hours. And
that means with 1 tablet a day for 14 days, you get relief from frequent
heartburn.
Product
Mix
Healthcare OralCare
Beauty &
Personal
Care
Detergents
& Fabric
Care
Household
Care
Hair Care
Child &
Women
Hygiene

15
Oral care
Oral-B is a brand of oral hygiene products,
including toothbrushes, toothpastes, electric
toothbrushes, mouthwashes and dental floss.
Crest is a toothpaste launched in 1955 with fluoride as an ingredient
taking care of cavities and tooth decay and since its inception it has
been a market leader in dental health innovations.
Scope is a brand of mouthwash made by Procter & Gamble.[1]
It was
introduced in 1966. The active ingredients of Scope Outlast
are cetylpyridinium chloride, domiphen bromide, and denatured alcohol.
Inactive ingredients of Scope Outlast are water, glycerin, polysorbate
80, sodium saccharin, sodium benzoate, benzoic acid, Blue 1,
and Yellow 5. It is not just a scented product designed to mask the odor
of bad breath, but a treatment to kill the bacteria that cause the odor.
Beauty & Personal Care
The Gillette Company,Inc. manufactures and sells shaving
products for men. It offers razors and blades, disposable razors,
and replacement blades; and pre and post shave products, such as
shaving creams,gels, and foams, as well as skin care and
aftershave products. The company also provides deodorants and
antiperspirants, and body washes. It operates as a subsidiary of
P&G.

16
Olay, previously Oil of Ulay, is an American skin care line. It is
one of Procter & Gamble's multibillion-dollar brands. Olay uses
many different ingredients in the production of their skin care
line.The main ingredients used include retinyl propionate
(vitamin A derivative), glycerin, niacinamide (vitamin B3),
broad spectrum sunscreen,and amino peptides. Some of the
products also include more hazardous ingredients, such
as triethanolamine, propylparaben, benzyl, salicylate,
butylphenyl methylpropional (also called Lilial),
hydroxyisohexyl 3-cyclohexene carboxaldehyde,
and polyethylene glycol-4 dilaurate. Products include Olay Total
Effects 7-IN-ONE Day Cream NormalSPF 15, Olay Regenerist
Cream Cleanser,Olay Regenerist Micro-Sculpting Serum, Olay
White Radiance Intensive Brightening Serum, Olay Total Effects
Foaming Cleanser, Olay Regenerist Eye Lifting Serum
SK-II was launched in 1970 in Japan and includes a
base/heritage product, as well as those with whitening and anti-
aging properties, plus color cosmetics. Active ingredients
address various skin concerns and attributes in many of the
brand’s products. Its signature ingredient, Pitera,has been
proven to transform skin to crystal clear in as little as 14 days.
Old Spice is an American brand of male grooming products
encompassing deodorants and
antiperspirants, shampoos, body washes,and soaps.
Originally launched as Early American Old Spice by
William Lightfoot Schultz's soap and toiletries company,
Shulton Inc., in 1937, it was first targeted to women, with the
men's product only being released before Christmas at the
end of that year.[1]
Over time as the men's products found
more success it began to focus exclusively on those.

17
Secret is an antiperspirant/deodorant for women
manufactured by Procter & Gamble. It is sold in the
United States,Canada,and Mexico. Secret was launched
as the first female deodorant in 1956, after more than 10
years of research that began in 1945. Secret is the only
female brand antiperspirant/ deodorant in Procter &
Gamble’s portfolio of products.
Safeguard soaps and shower gel are
effective anti-bacterial cleansing products
that not only remove 90% of skin bacteria
but also offer protection upto 4 hours unlike
ordinary cleaning products due to their
special anti-bacterial formula.
Ivory is a personal care brand with a variety of
White and mildly scented bar soap which became
famous for its claim of purity and for floating in water.
Currently, it also offers shower gels along with soaps.

18
Detergents & Fabric Care
In 1967, Ariel burst onto the scene,offering women the
world over pristine whites with an innovative combination of
an enzyme based compound with encapsulated bleach.
It’s not just any laundry detergent; it’s one that renews clothes
and the stories they tell. It’s strong in stain removal, but gentle
on clothes. For more than 70 years, Tide has set the highest
standards for laundry care.
Downy is a fabric softener. Downy has brought softness,
freshness and other fabric enhancements to countless loads
of laundry. Downy keeps working to enhance the world's
fabrics by bringing out their freshest,fluffiest, smoothest,
scenty-est best.
Gain was introduced in 1969 as a powerful, stain-removing
detergent. In 1981, the brand's focus was re-positioned to
market Gain as a detergent offering a unique, fresh scent.
Procter & Gamble has also expanded the Gain line with a
variety of scents with their detergent line in both powder
and liquid. Gain liquid fabric softener, dryer sheets,dryer
bars and in-wash scent booster were also introduced to the
market. Gain also offers a dishwashing liquid with the
famous scents.

19
Bold was originally introduced in the United States in
1965, and was launched in 1974 as the UK's first low
suds biological detergent.
Household Care
Ace was launched more than 40 years ago as a bleach,
and has since expanded into the world of homecare and
detergent. Ace stands for bleach that is safe to fabrics, its
formulation consists of ingredients that help protect
fabrics from damage and yellowing. Today, Ace offers
severalhypo bleach products including Regular, Scented
and Thick bleach. It also offers Ace Gentle bleach and
Ace detergent handling stain removal on colors and
general laundry needs.
First launched in 1972, the Bounce line of products has
expanded through the years from traditional dryer fabric
softener sheets to also include the Bounce Dryer Bar and
Bounce Lint and Freshness Roller. Bounce has become a
consumer favorite, bringing softness, freshness and static
reduction to fabrics in the dryer and beyond. Bounce is
also available in Free & Sensitive for those who want the
benefits of dryer sheets,but without any dyes and
perfumes.
Febreze is a brand of household odor
eliminators. It is sold in North America,Brazil,
Europe, Asia, Australia, and New Zealand. The
name "Febreze" comes from the words "fabric"
and "breeze. First introduced in test markets in
March 1996, the fabric refresher product is
being sold in the United States since June 1998,
and the line has since branched out to include air
fresheners (Air Effects),plug-in oil
(Noticeables), scented disks (Scentstories), odor-
eliminating candles, and automotive air
fresheners.

20
Ambi Pur contains fragrance of freshness
which acts as an odour-neutralizer for both
homes and cars keeping the air free from bad
odour and lighting up the mood.
Mr. Clean is a brand name and mascot fully
owned by Procter & Gamble, used as an all-
purpose cleaner and melamine foam cleaner. In
the past, ships had to be cleaned using abrasives
or solvents that were able to cut successfully
through embedded grease and grime; however,
past solvents were so dangerous to workers. So,
a man called Mr. Linwood Burton created Mr.
Clean which was effective and less caustic and
later on sold the same to P&G. Today, P&Ghas
transformed the product into a house cleaner.
Joy dishwashing liquid is a major brand of dish-
cleaning detergent product. It was one of the first
products to use lemon fragrance and begun the trend
of citrus-scented cleaning products. Joy is designed
for use in the hand washing of dishes, not
automatic dishwashers, and as such also
contains emollients designed to protect the user's
hands from drying out. Joy is currently available in
severalfragrances and varieties, including an anti-
bacterial formula, and is available in both "non-ultra"
and "ultra" (concentrated) strengths.

21
Hair Care
Pantene is a shampoo designed to achieve
healthy, beautiful hair. Its new and advanced
formula with Amino Pro-Vitamin Complex
brings hair to its fullest potential. The product
line was first introduced in Europe in 1945
by Hoffmann-La Roche of Switzerland, which
branded the name based on panthenol as a
shampoo ingredient. It was purchased
by Procter & Gamble (P&G) in 1985 in order
for P&Gto compete in the "beauty product"
market rather than only functional products.
Head & Shoulders is one of the company’s global billion-
dollar brands. Working at the scalp level to remove
dandruff where it starts,Head & Shoulders is a two-in-one
shampoo that only removes dandruff 100 per cent but also
keeps hair beautiful. It started with Classic Clean variant
and now it includes Menthol Smooth & Silky, Natural
Fresh and Soothing Care variants, offering something for
everyone.
Herbal Essences was introduced in the market in
November 2007. With a unique line-up of shampoo
and conditioner, Herbal Essences large variety of
exhilarating fragrances and natural ingredients
transforms a simple hair wash into an outstanding
and pleasurable experience.

22
Vidal Sassoon is an affordable, quality
hair color, care and styling line. It has
two variants. ColorFinity shampoo and
conditioner system helps protect your
color up to 40 washes. Restoring Repair
shampoo and conditioner strengthens
against damage and repairs rough hair.
Child & Women Hygiene
Pampers is an American name brand of baby
and toddler products marketed by Procter &
Gamble. Since its inception in 1961, it is the
biggest P&Gbrand worldwide and the world’s
leading disposable diaper.
Always has developed through the years to
provide a variety of products, that is sanitary
napkins with patented technologies that satisfy
various customer needs: Always Ultra,
Always Sensitive and pantiliners for daily use
for women taking care of their personal
hygiene.
Whisper was first launched in 1983
in Hong Kong to cater to personal
hygiene of women. In 1993, Whisper
launched first napkin with wings
providing better side leakage
protection to women. In 2004,
Whisper launched new line-up,
“Super Soft Instant Clean”, which
can quickly absorb 6 times gush to
give dryness at any moment with
petal-like softness feeling.

23
Competitor Analysis
Company Revenue (US$ billion) Total Assets (US$
billion)
Biliion Dollar Brands
Procter & Gamble 65.29 127.1 Pampers,Pantene, Crest,
Tide, Bounty
Unilever 537.15 602.85 Dove, Axe, Lipton,
Vaseline, Slim-Fast, Ben
& Jerry’s
Clorox Company 6.0 6.0 Clorox Bleach, Pine-Sol,
Glad, Brita Water
Filters, Burt’s Bees
Kimberly-Clark 18.259 15.151 Huggies, Kleenex, Scott,
Paper Towels
Colgate-Palmolive 15.454 12.676 Colgate Toothpaste,
Palmolive Dishwashing
Liquid, Softsoap,
Speedstick
Recent News
P&G to acquire German Merck's consumer health business for about $4.21 billion
P&G has agreed to acquire Merck KGaA's consumer health unit for 3.4 billion euros ($4.2
billion), giving it vitamin brands such as Seven Seas and greater exposure to Latin American and
Asian markets.
The maker of Pampers diapers and Gillette razors said the deal would help it expand its portfolio
of consumer healthcare products which includes Vicks cold relief. The Merck unit includes
vitamin brands Femibion and Neurobion.
P&G also announced it will split up its consumer care joint venture with Teva, PGT Healthcare,
on July 1, saying strategies were no longer aligned.cPGT accounts for nearly all of P&G's
personal health care sales outside of the United States. Teva said the terms of the agreement to
terminate the JV with P&G would not be disclosed and that the dissolution was amicable. About
3,300 Merck employees could move to P&G upon completion of the transaction, which is
expected by the fourth quarter.

24
As part of the deal, P&G will buy a majority stake in the German company's Indian consumer
health business, Merck, and subsequently make a mandatory tender offer to minority
shareholders.
MarketingStrategy
Swot Analysis of Pantene Pro-V Total Damage Care Shampoo
Strengths Weaknesses Opportunities Threats
 Cleans the scalp
well
 Smells decent
(typical Pantene
smell)
 Removes oil
from the hair
 Does not dry out
the hair (the ends
of the hair
become
moisturized even
without a
conditioner)
 Lathers well
 Inexpensive
 Travel friendly
packaging
 Repairs 10
visible signs of
hair damage
 Protects hair
against future
damage
 Leaves hair
feeling smoother
and softer
 Esteemed Brand
Ambassadors
 It caused terrible
hair fall
 Loaded with
chemicals
 Causes product
build up over
time
 Suitable only for
oily hair
 Product
extensions
focusing on
segmentation of
consumer needs
 Untapped target
markets that have
loyalty traits and
growing
populations
 Innovative
marketing
techniques
through events
and sponsorships
can boost the
sales of Pantene
 Newcomer salon
brands creating
products for retail
stores
 Low switching
cost to other
brands can
affect Pantene's
business
 Flooding of
market with new
products and
competitor
innovation and
technology

25
Marketing Mix
Product- Pantene Pro-V Total Damage Care Shampoo
Features & Benefits- A white serum like liquid, Pantene Pro
Total Damage Care Shampoo penetrates deep into your scalp
and cleanses it deeply. This shampoo along with Pantene Pro
Total Damage Care conditioner nourishes your damaged hair
and help lowering the rate of hair fall which may be due to
split ends and tangles. The results:
 Split ends and tangles are visibly reduced.
 Repairs 10 visible signs of hair damage with Keratin
damage blockers
 Hair feels soft to touch.
 Hair is shinier, dullness is gone.
 Hair becomes strong.
 Hair becomes smooth.
 Ingredients- Water, sodium laureth sulfate, sodium lauryl sulfate, dimethicone, sodium
chloride, glycol distearate, cocamidopropyl betaine, sodium citrate, cocamide MEA,
sodium xylenesulfonate, fragrance, citric acid, sodium benzoate, polyquaternium-76, guar
hydroxypropyltrimonium chloride, tetrasodium EDTA, butylphenyl methylpropional,
linalool, hexyl cinnamal, benzyl benzoate, panthenol, panthenyl ethyl ether, benzyl
salicylate, silk extract, limonene, methylchloroisothaizolinone and methylisothiazolinone
 Expiry- Use before 36 months from packaging date
Price
Pantene Pro-V Total Damage Care shampoo is available in below five variants:
 The price of 7ml sachet is Rs. 3.
 The price of 80 ml bottle is Rs. 50.
 The price of 180 ml bottle is Rs. 115.
 The price of 360 ml is Rs. 220.
 The price of 675 ml is Rs. 395.
7ml Sachet Rs.
3 80 ml Bottle Rs. 50 180 ml Bottle Rs.
115
Pantene Pro-V TotalDamage Care Shampoo

26
 We can say that Pantene follows a price discrimination strategy. Under price
discrimination strategy it follows a product form pricing where it charges different prices
for different versions.
 Also, Pantene products follows discount pricing under competitive pricing as well as
premium pricing. The prices are lower than its prime competitor L’oreal which charges
Rs 60 for 75 ml and higher than Dove, Sunsilk and Clinic Plus. Therefore, it falls in the
mid-price segment.
 It also follows a value based pricing strategy based on the benefits that it provides within
an affordable price.
 Lastly, it follows price bundling strategy where it provides a conditioner alongwith a
bottle of shampoo.
Place
 Pantene shampoo is available in convenience stores,
hypermarket and supermarket.
 Also, it is sold in amazon, bigbasket and other online
stores.
 Distribution network- From the manufacturing plant it’s
products go to the carrying and forwarding agents. From
there they go to the regional stockist to the wholesalers
and to the retailers ultimately reaching the end
consumers.
Pantene being sold in a retail outlet
360 ml Bottle Rs.
220
675 ml bottle Rs. 395

27
Promotion
 TV Advertisements: P&G indulges in heavy advertising. Its TV commercials focus on
advantages of using Pantene products and are targeted at young Indian women. These ads
are telecasted mostly on Entertainment and Movie channels. It has celebrity ambassadors
to promote the product
 Social Media: Pantene India’s Facebook page is growing even after crossing the million
mark. The Facebook page connects its users with hair experts and celebrities.
 YouTube: Apart from uploading television commercials on YouTube, Pantene uses its
Youtube channel to broadcast expert tips, behind the scenes and video interviews of
celebrity stylists.
 Posters and Hoardings: Pantene also post posters at the retailers and supermarkets or bus
stops to create visibility. High emphasis is given on shelf spaces to create visibility and
thus increase impulsive buying.
Anushka Sharma as a Brand Ambassador of
Pantene
Pantene’s Facebook Page

28
Parineeti Chopra as a Brand Ambassador of Pantene
Katrina Kaif as a Brand Ambassador
of Pantene
Pantene hoarding at a Bus Stop A print ad of Pantene

29
STP of Pantene Pro-V Total Damage Care
Segmentation Targeting Positioning
Geographic- T1/T2/T3 cities
Rural areas, places which have
dry weather conditions, and
have adequate female
population
T1/T2/T3 cities and places with
dry weather.
Women who want to look
stylish and have shinier hair and
repair damage at an affordable
price which is lower than other
salon brands.
Pantene takes care of different
types of hair and makes hair
healthier and shinier and repairs
damage within 14 days with
Keratin damage solution.
Demographic-
Age- 15-45 years
Gender- Female mainly (Male
can also use)
Family Life Cycle Stage-
Adolescent, Married, Married
with Kids
Occupation- Working
Professional, Housewives
Economic Class- Middle, upper
middle class
Psychographic- Pantene is a
shampoo which nourishes as
well as repairs damage and is
inexpensive compared to other
saloon brands like L’oreal &
Tresemme.
Behavioral- Purchased once in 4
weeks. Before any party or
celebrations consumers may use
it to make hair look beautiful. It
can be purchased from a
physical retail store or an online
store.

30
PLC
Pantene is one of the billion dollar brands of P&G. So, all Pantene variants of shampoo are
contributing towards the billion-dollar revenue earned by Pantene. Therefore, we can say that
Pantene Pro-V Total Damage Care is in its maturity stage of PLC where it is earning a stable
billion dollar but growth has become stagnant. It should now focus on other customer segments
and modify the product in order to attract new customers.
Introduction
Growth
Maturity
Decline

31
Distribution Network
This is the new distribution system which is being followed by P&G since 2013 when it saw that
having large number of distributors in a single area was unnecessarily increasing their
distribution cost. Therefore, they came up with a project called “Golden Eye”. In this project the
company aims to reduce the number of distributors in one single area and appoint just one
distributor who will act as a super-stockist like in Madhya Pradesh instead of having five
distributors it is aiming to have only one distributor who will have the entire stock instead of
every distributor having small amount of stock. Each distributor having small amounts of stock
acted as a bottleneck in achieving ROI. Therefore, P&G slashed its number of distributors down
to one-tenth of its size. Also, P&G had no intent to replenish each distributor because it was not
economical and hence average inventory lieing with the distributors would be very high.
According to a P&G manager, P&G products were overdistributed. He said that according to
sales analysis 95 percent sales of Ariel or Whisper came from 70 percent of the outlets, so it
would not be incorrect to reduce the distribution cover. If distributor gets proper ROI, then
distribution would not be an issue.
Therefore, this new distribution model would help in cost reduction and concentrating on a
single distributor or stockist would be helpful in achieving efficiency in distribution and
distributor would also get appropriate ROI of 30 to 40 percent without stocking too much. This
would help in achieving projected sales.
Manufacturer
C&F
Agents
Regional
Stockist
(Super-
Stockist)
Wholesaler Retailer
Consumers
P&G Golden Eye Distribution Model

32
Digital Marketing Strategy
Procter and Gamble (P&G) says it will increase investment in its digital capabilities, as it admits
it needs to have “stronger” brand positioning online. P&G said it will do this by focusing on
search and showing up in the right places such as Amazon or brick-and-mortar retailers’
websites.
The online shopping experience demands executional excellence. P&G is committed to winning
in this fast-growing segment.
Recently, it launched the ‘Skin Advisor’ app for Olay, which makes personalised product
recommendations based on a consumer’s skin type. It also promotes its product through Youtube
and also has a Facebook page. In both Youtube and Facebook, there are experts and celebrity
stylists who provide tips and suggestions on hair care and consumers can also buy from its
Facebook page.
P&G promotes through Youtube P&G’s Facebook Page
Olay Skin Advisor App

33
Conclusion
P&G is a well-established company with operations in more than 80 countries and serving
consumers in more than 180 countries. It has a wide range of products to offer to the consumers
which includes health care, oral care, beauty and personal care, household care, detergents and
fabric care, child and women hygiene and hair care products. So, it has a come a long way with
its diverse product portfolio and innovative technologies. Talking about the shampoo industry,
P&G is the second major player after HUL. It has two billion dollar brands in the shampoo
category, that is Pantene and Head & Shoulders. Pantene is a shampoo which is preferred by the
women especially due to its damage repairing ability and salon like product at an affordable
price lower than L’oreal and Tresemme. The other billion dollar brands include Tide, Pampers,
Crest, Bounty.
In order to grow more, the company should focus on digital marketing and run more online
campaigns and keep on innovating for surviving the stiff competition. And, most importantly
focus on its smaller brands and try to bring them in the billion-dollar category.
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