ABOUT PROCTER AND GAMBLE

Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment. Procter and Gamble is the world s largest maker and distributor of household items and consumer goods. The target markets of P&G include homeowners, stay-at-home parents, women, business to business, etc.

SOME OF THE PRODUCTS OF PROCTER AND GAMBLE y Beauty & Grooming

Anna Sui Braun DDF Aussie Camay Dolce & Gabbana Escada Fragrances Fusion Ghost Gucci Fragrances Head &

Dunhill Fragrances Fekkai

Gillette HUGO BOSS Fragrances

Shoulders Herbal Essences Lacoste Fragrances Naomi Campbell Nice 'n Easy Olay Pantene Prestobarba/ Blue Rejoice Safeguard Secret Vidal Sassoon Ivory

MACH3 Natural Instincts Nioxin Old Spice Pert Puma

SK-II Sebastian Professional Venus Wella

y Health and Well-Being

Align Crest Eukanuba Iams Lines Oral-B Always Discreet Fixodent Kukident Metamucil PUR

Pepto Bismol Pringles Tampax

Prilosec OTC Scope Vicks

y Household Care
Ace Bold Bounty Charmin Comet Dawn Dreft Laundry Era Gain Luvs Pampers Swiffer Ariel Bounce Cascade Cheer Dash Downy Duracell Febreze Joy Mr. Clean Puffs Tide

MARKETING STRATEGY ANALYSIS 1. VICKS

Vicks is a brand that is more than 50 years old. Vicks is a leading brand in the Fast Moving Health goods ( FMHG). FMHG industry in India is worth around 4500 crores. This market is dominated by products like Rubs & Balms, medicated skin treatments,cough syrup and drops, digestives and health supplements. Vicks Brand was launched in India in 1951 . It was manufactured by Vicks Products Ltd. Later in 1964, Richardson Hindustan Ltd was formed to manufacture the product .In 1985 RHL became the affiliate of P&G. In 1989 RHL became P&G hygiene and health care. Vicks in India is known for its VapoRub and cough drops. Globally Vicks brand is worth around 3000 crores. Vicks vaporub is the market leader in this segment with a share of 50%. Vaporub was initially targeted at children but later the company found out that it is used mostly by adults. Vicks Vaporub is positioned along Mother's Love platform . Vaporub pioneered the concept of "Touch therapy" linking it to the rubbing of vaporub on the child's chest. Vaporub advertises itself as having 6 key benefits 1. Clearing blocked nose 2, Cough relief 3. Body ache relief 4. Head ache relief. 5. Relaxing muscle stiffness 6. Easing breathing difficulty.

Vaporub also ranks best among the consumers in the following parameters : Non greasy, Smells better, Long lasting relief. Greasyness was important because Iodex (a different category product) failed because of greasyness. The recent ad campaign also involves "father" in to the picture. The ad shows a father taking care of the child using Vaporub when the mother is away. The smart positioning and campaigns has ensured the brand retaining the top position in the market.

Vicks Cough drop is another blockbuster from the Vicks stable. Vicks commands a generic recall in this category. Using brand imagery and the catchy charachter " Kitch Kitch", Vicks commands a major share in this market. With unique shape and the long lasting positioning "Vicks ki goli lo Kitch Kitch door karo" , Vicks is a super brand in this category .Vicks coughdrops were careful in not messing up "Kitch Kitch" .This has ensured that the brand enjoys excellent recall .The recent campaigns of Vicks-Honey also strengthens the time tested positioning of the brand.

Vicks Action 500 has been in the market for more than 25 years. Launched in 1979 this is the first advertised OTC brand in India. Over these years the brand has carved a position for itself with around 40% market share in the category. This brand which is now relaunched talks about its ability to provide relief from cold related symptoms. This product is in Caplet shape ( capsule shaped tablet) which makes it different from its competitors and reinforces its ability to cure two symptoms of cold : blocked nose and headache .

Vicks Inhaler was launched in 1951 created and own the inhaler category is one of the first products launched in India from Vicks.

Vicks recently ventured in to the 550 crore cough syrup market with its Formula 44 in October 2003. The brand's usp is 8 hours relief from cough. The product is targeted at kids .The insight is that the power of most of the Cough syrups wanes after 5 hours and long lasting relief is the platform that Vicks is banking on for this product. Vicks is a brand that is enjoying tremendous equity in the market. It has established its trust with thee customers. The FMHG market calls for Umbrella branding since it is difficult and expensive to create trust for individual brands in that category .That is the reason behind Vicks extending its equity across the various categories. Vicks has used careful branding and packaging for promoting the products. The unique shapes of cough drops, inhaler and caplet are examples of using product form as a differentiating factor.

2. Olay : Love the Skin You are In

In July 2007 P&G launched its premium skin care brand Olay in India. Olay is a $2 Bn global brand has met with phenomenal success in all the markets it entered. Olay was born in the lab of a chemist Mr Graham Wulff in the early 1950's. At that time the brand was named Oil of Olay. Later when P&G acquired it, the brand was renamed Olay. Olay was available in India as an imported product. Now P&G directly markets this brand with all the relevant marketing mixes in place.

Olay is tapping the premium slice of the Rs 2100 crore Indian skin care market. Olay has launched its first product in the anti-ageing segment with its Total Effects subbrand. Anti-ageing segment is still a niche with a market size of Rs 60 crore. The segment is but growing very fast. Olay has launched its Total Effects anti ageing solution after much consumer research. It had conducted research on over 6000 ladies of age between 30-69 years from three continents and identified 7 signs of ageing. 1.Fine lines and Wrinkles. 2.Sagging skin. 3.Uneven skin tones. 4.Age spots. 5.Appearance of pores. 6.Dull skin. 7.Dryness.

Total Effects is differentiating itself through the presence of the ingredient VitaNiacin. VitaNiacin is a patented formulation that contains Niacinamide Vitamin B3 ,Vitamin E and Provitamin B5 Pathenol + sunscreen protection. Olay true to the concept of Global Brand and Local strategy has launched itself with a series of promotional campaigns. The brand has the bollywood diva Sushmita Sen as the brand ambassador. Currently Olay is running two campaigns in the visual media. One campaign is th Olay brand building campaign featuring Sushmita Sen and another is for the Total Effects moisturizing lotion.

For the Total Effects range, the company uses a testimonial type of campaign featuring a Model/TV Anchor. The focus is more on the functional benefits of the product rather than harping on any emotional benefits. The brand is positioned as a brand that celebrates beauty within and outside. The brand worldwide uses the tagline Love the skin you are in ". The brand believes that Looking Good and Feeling Good are inseparable. Loving the skin we are in is the most beautiful feeling of all.

Olay Total Effects is priced at Rs 599 for a 50 gm bottle. By Indian standards, this accounts for a premium category. Olay Total Effects is targeting ladies between the age 30 - 60. Besides this anti-ageing product, Olay has introduced cleansers, facepack and moisturizing lotions. The brand is expected to introduce its blockbuster range of products in India in a phased manner. The premium skincare segment was in a vacuum ever since HUL decided to cater to the masstige segment by repositioning Lakme and Ponds. Now with P&G and ITC seriously looking at premium segment, the market is going to witness a marketing war in days to come.

3. Oral-B : Dentist's Choice

Oral-B is a special brand. The brand is the global leader in the toothbrush market. Oral-B is a special brand since it bought so many innovations in a low involvement product like Toothbrush. Infact, Oral-B is a brand that made Toothbrush a high involvement product category. Oral-B was created in 1950 by a Dentist Dr Robert Hutson. The first product was Oral-B 60 which had 60 tufs. In 1984 Oral-B was acquired by Gillette and in 2006 it came into P&G's fold with its acquisition of Gillette worldwide.

Oral-B came to India in 1996.Although globally Oral-B is a market leader, it could not replicate its global leadership position in India. In India, it is the second largest player behind Colgate. India is considered to be the second largest market for toothbrushes and the market is estimated to be around Rs 600-700 crore. Oral-B is known worldwide for its innovation. Oral-B is a favorite example in marketing classes for Planned Replacement. The case in point is the innovative brand Oral-B Indicator. Oral-B Indicator was introduced in 1991. It had fading bristles which indicated to the customer that its time for him to change the brush. The innovation won Edison award for product innovation. Through the Indicator Bristles, Oral-B overcame a serious issue of delay in repeated purchases due to overuse. Typically consumers do not have an idea of when to replace a toothbrush. Often they stretch the planned life of the product thus posing a problem for the marketers. Oral-B Indicator changed all that. Dentists recommend that the toothbrush should be replaced every three months. Oral-B indicator is designed to remind the customer that time schedule for replacement. Now Indicator Bristles have become a standard feature in all Oral-B toothbrushes.

Although Indicator was referred in most of the marketing textbooks, the innovations of Oral-B is mind blowing. Some noteworthy innovations are listed here : 1984 : Oral-B revolutionized Kid's toothbrush market with its Star Wars range which had the characters in the toothbrush 1984 : The first Power Toothbrush launched under the Braun brand. 1987 : Oral-B Ultraplus was launched which had round head 1991 : Oral-B Indicator with fading bristles. For the entire range of innovations , visit the brand website at : Oralb.com 2007 saw another mindblowing futuristic innovation from this brand- Oral-B Triumph with Smart Guide Technology. The toothpaste now comes with a wireless digital monitor which will guide the consumer to use the toothbrush in the ideal manner. The wireless digital monitor have a timer which guide the customer to brush for 2 minutes and also indicates the various motions and even indicates the replacement of the toothbrush head. These innovations have made this product category a highly segmented and a high involvement category. Earlier, the choice available for a consumer was whether the bristles are soft medium or hard. Now the choice is numerous. The introduction of power brushes ( battery powered) created a new premium segment of toothbrushes. The shape and the size of the bristles and toothbrushes also have changed. From the typical rectangular head to round shaped head. From straight bristles to Zigzag . Many things are happening to the good old toothbrushes. The interesting fact is that these innovations have created a change in the mindset of consumers. Earlier consumers believed that Toothpaste is the central product in the oral care/hygiene. Toothbrush's role is limited in the oral care. The innovations from these players have prompted the customers to think that toothbrush is also an important product that needs some serious thinking before purchase. Oral-B is positioned as Dentist's Choice of Toothbrush. The brand uses the tagline " The brand more dentists use themselves worldwide". In India too, the brand

uses the same tagline. The brand is currently on a hyperactive mode in India with lot of promotions in the visual media. Oral-B also is getting on the volume game by launching a variant ShinyClean with a amazing pricetage of Rs 13.ShinyClean comes with different features : Zigzag bristles for better cleaning End Rounded Bristles. Translucent Contour handle for better grip Hygiene Cap Indicator. At a price tag of Rs 13, ShinyClean is expected to rejuvenate the toothbrush market for Oral-B. Earlier Oral-B was positioned as a premium brand. Oral-B is a marketer's icon. A brand which has brought so much value into a dull product category.

4. GILLETTE MACH 3
At Gillette, gaining consumers' share of mind is an art form. Getting them to try a new product and offering a "reason to believe" has never been better orchestrated than with Mach 3. The first and most important step is creating a clear value proposition for the consumer. For the Mach 3, the value proposition had to be compelling, succinct and easily understood by a vast consumer base around the world. Like everything else in the development process, it was a painstaking endeavor. Indeed, the value statement took two full years, countless meetings and innumerable focus groups to write. The value had to be there for a wide cross section of shavers, from the serious system user to the disposables user. Having tested the product with thousands of men, Gillette knew what mattered. Shaving evokes certain key reactions in men: It is time-consuming, irritating and often unpleasant. Not surprisingly, men around the world crave the same thing: a close, clean, comfortable shave without nicks and cuts. Most men, Mr. Flynn said, take between 100 and 500 strokes when they shave, often going over the same area again and again. So a bridge was needed to get from the idea of a close

shave to a less irritating shave. Add to that mix the disposables user, who values the quickness of a shave, and the value proposition emerged: The Mach 3 offers "the closest shave ever in fewer strokes -with less irritation." The Mach 3 group, code-named the 225 Task Force, worked for five full years in concert with R&D to produce and orchestrate the introduction of the new product. They concentrated as much on creating a great new brand as developing a great new product. The five years were characterized by ceaseless product improvement, constant consumer testing around the world and, eventually, creation of a marketing strategy to not only press the new value proposition but also substantiate the claims.

THINGS KEPT IN MIND BEFORE GOING GLOBAL

y

Because the product would probably take off immediately, manufacturing had to insure that it had enough capacity to avoid shortages at the outset. To facilitate a smooth global introduction, all packaging, point of sale and other promotional and support material had to be the same, simply translated into 30 languages for other geographies. In the same vein, all marketing and advertising was based on a single campaign that was released in every market, again with minor local adjustments and translations. Pricing needed a built-in elasticity, but by carefully testing the concept with consumers, Gillette fixed a profitable price point based on the expected number of blades per user per year.

To orchestrate the product unveiling successfully, Gillette followed strict guidelines about all advertising, marketing and promotion. Everything from packaging to point-of-sale displays to retail sales guidelines was created with a single audience in mind rather than individual geographies. Thus, all packaging, point-of-sale displays and support material are the same around the world. The color scheme, an aqua green, and all typefaces and design elements are also the same. Mach 3 packages from Spain, Germany, Britain and Italy are identical except for the language on the package. The company purposely keeps the number of words on the front of the package to a minimum to avoid the need for design alterations to the packaging. Gillette also knows its markets intimately. For countries like Italy and Spain, where many stores are small, Gillette created a special display for the Mach 3. More than 100,000 of these displays were sold in the first six months after the premiere. Even the television and radio advertising is the same. A single Mach 3 television commercial is being used in all countries. Though some local production had to be done in certain markets, the commercial is essentially the same everywhere -male models have to have faces that are "acceptable" in all regions. By creating a single look and feel to the entire global campaign, the Mach 3 achieved a branded look almost instantaneously. A believer in big-budget advertising, Gillette seeks to surround the consumer with its message, embracing every medium, from television to billboards to the Internet. It stepped up its

public relations efforts for Mach 3 and received 10 times as many mentions in the media, called share of voice, for the product rollout as it had for Sensor. Gillette tracks the media as closely as it tracks its customers.