INTRODUCTION

Fast Moving Consumer Goods(FMCG) FMCG are products that have a quick shelf
turnover, at relatively low cost and don't require a lot of thought, time and financial investment
to purchase. The margin of profit on every individual FMCG product is less. However the huge
number of goods sold is what makes the difference. Hence profit in FMCG goods always
translates to number of goods sold. Fast Moving Consumer Goods is a classification that refers
to a wide range of frequently purchased consumer products including: toiletries, soaps,
cosmetics, teeth cleaning products, shaving products, detergents, other non-durables such as
glassware, bulbs, batteries, paper products and plastic goods, such as buckets. ‘Fast Moving’ is
in opposition to consumer durables such as kitchen appliances that are generally replaced less
than once a year. The category may include pharmaceuticals, consumer electronics and packaged
food products and drinks, although these are often categorized separately. The term Consumer
Packaged Goods (CPG) is used inter changeably with Fast Moving Consumer Goods
(FMCG). Three of the largest and best known examples of Fast Moving Consumer Goods
companies are Nestlé, Unilever and Procter & Gamble. Examples of FMCGs are soft drinks,
tissue paper, and chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and
Believe. The FMCG sector represents consumer goods required for daily or frequent use. The
main segments of this sector are personal care (oral care, haircare, soaps, cosmetics, toiletries),
household care (fabric wash and household cleaners),branded and packaged food, beverages
(health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery products) and
tobacco. The Indian FMCG sector is an important contributor to the country's GDP. It is the
fourth largest sector in the economy and is responsible for 5% of the total factory employment in
India. The industry also creates employment for 3 m people in downstream activities, much of
which is disbursed in small towns and rural India. This industry has witnessed strong growth in
the past decade. This has been due to liberalization, urbanization, increase in the disposable
incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the reduction in
excise duties, de-reservation from the small-scale sector and the concerted efforts of personal
care companies to attract the burgeoning affluent segment in the middle-class through product
and packaging innovations. Unlike the perception that the FMCG sector is a producer of luxury
items targeted at the elite, in reality, the sector meets the every day needs of the masses. The
lower-middle income group accounts for over 60% of the sector's sales.Rural markets account
for 56% of the total domestic FMCG demand. Many of the global FMCG majors have been
present in the country for many decades. But in the last ten years, many of the smaller rung
Indian FMCG companies have gained in scale. As a result, the unorganized and regional players
have witnessed erosion in market share.

History of FMCG in India

In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force in
the FMCG sector well supported by relatively less competition and high entry barriers (import
duty was high). These companies were, therefore, able to charge a premium for their products. In
this context, the margins were also on the higher side. With the gradual opening up of the
economy over the last decade, FMCG companies have been forced to fight for a market share. In

1
the process, margins have been compromised, more so in the last six years (FMCG
sector witnessed decline in demand).

Products and Categories:-

Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps); - Cosmetics and
toiletries, deodorants, perfumes, feminine hygiene, paper product; Household care fabric wash
including laundry soaps and synthetic detergents, household cleaners, such as dish/utensil
cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal
polish and furniture polish - Food and health beverages, branded flour, branded sugarcane,
bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea,
coffee, juices, bottled water etc, snack food, chocolates, etc.

Top Players in FMCG sector:

 Hindustan Lever Limited (HLL)

 ITC (Indian Tobacco company)
 Nestle India
 GCMMF (Amul)
 Dabur India
 Asian Paints (India)
 Cadbury India
 Britannia Industries
 Proctor and Gamble Hygiene & Healthcare
 Marico Industries

Secondary Players in FMCG sector:

 Colgate-Palmolive (India) Ltd.

 Godrej Consumers Product Ltd.
 Nirma Ltd.
 Tata Tea Ltd.
 Parle Agro.

FMCG giants such as ITC, Dabur, Godrej Consumer Products, Britannia, Marico have been
making sincere efforts to promote their products in rural areas and for generating awareness
among them, they have increased their marketing efforts in rural India and smaller towns with
the motive to establish a local distribution networks and increase product visibility in the deep
interior parts of rural markets. Godrej has organized 'Rural meals' in order to access potential
rural consumers. Major domestic retailers like AV Birla, ITC, Godrej, Reliance and many others
have already set up farm linkages. Hariyali Kisan Bazaars (DCM) and Aadhars (Pantaloon-
Godrej JV), Choupal Sagars (ITC), Kisan Sansars (Tata), Reliance Fresh, Project Shakti
(Hindustan Unilever) and Naya Yug Bazaar have established rural retail hubs.

2
FMCG Sector in India:

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in
excess of US$ 13.1 billion. Multinationals have made a strong presence and is characterized by a
intense competition between the organized and unorganized segments, well connected
distribution network, large number of channel members and low operational cost. In India,
companies enjoys the advantage of having cheaper labour supply, availability of key raw
materials and presence across the entire value chain gives India a competitive advantage. The
FMCG market is having a bright future in India as per studies and is expected to jump from US$
11.6 billion in 2003 to US$ 33.4 billion in 2015. Per capital consumption/expenditure as well as
penetration level in most product categories like hair wash, packaged foods, jams, skin care,
toothpaste etc in India is low 127 indicating the immense opportunity which is left untapped.
Indian population is mushrooming and it is providing opportunities to multinationals as well as
the domestic players to grow. In India, the middle class and the rural segments, presents an
opportunity to producers of branded products to convert consumers to branded products and this
make-shift from unbranded to branded indicates huge potential to grow in the same industry.
Growth is also likely to come from consumer 'upgrading' in the matured product categories.

 Indian FMCG sector is contributing Rs. 2 trillion in the total economy with rural India
contributing to a third of revenues.

 As per a study conducted by Booz & Company, FMCG sector is expected to grow in the
range of 12% to 17% upto 2020 and could touch a market size between Rs. 4,000 to
Rs.6,200 billion by 2020.

 Consumer preferences in rural markets have shown a paradigm shift over the last few
years. Their consumption basket looks very similar to that of urban counterparts.
Premium products are replacing basic versions and brands are making their presence felt.
Nielsen estimates that the FMCG market in rural India will mark US$ 100 billion by
2025, from the current level of US$ 12 billion. Moreover, the Government's efforts to
improve the efficiency of welfare programs with cash transfers will further boost rural
consumption; it plans to deposit US$ 570 billion in the accounts of 100 million poor
families by 2014.

 The rural FMCG market in India has grown 15% in 2011 (Nielsen Report, 2012). The
Indian rural consumer market grew 25% in 2008 and reached US$ 425 billion in 2010-11
128 with 720-790 million customers (Quarterly Report, CII Technopak, 2011).
According to FICCI Technopak Report 2009, FMCG industry is projected to grow by
12% and reach a size of US $ 43 billion by 2013 and US $ 74 billion by 2018.

During the year under review, the FMCG industry continued on a steady growth trajectory.
Riding on continued demand for branded food products, personal care, household care, baby care
and OTC products, the Indian FMCG sector crossed the Rs. 2-trillion mark in fiscal 2012-13, as
per AC Nielsen. Future growth in the FMCG sector is expected to be driven by:

3
 Low per capita consumption: Per capita consumption levels in FMCG categories such as
skin care, shampoos and toothpastes are much lower in India as compared to other
markets and are expected to drive growth in future.

 Favourable demographics: 65% of India’s population is below the age of 35 years,

making India one of the youngest nations and an important aspect of consumption
growth.

 Low penetration levels of consumer products in most categories.

 Shift to branded products from unbranded products: Current level of unorganized market
in some of the FMCG categories bodes well for future volume growth of branded
products.

 Growth potential in rural markets.

4
 INTRODUCTION OF COMPANIES

Procter and Gamble is a global company that provides consumer products in the areas of
pharmaceuticals, cleaning supplies, personal care, and pet supplies (pg.com). This description
however becomes increasingly simplistic the more one looks into the size of P&G as well as the
scope of their operations. Is made up of over 300 brand names including Bounty, Gillette, Old
Spice, Ivory, Pringles, Tide and Pampers and currently owns 22 brands that have more than $1
Billion in annual net sales (2008 Annual report, A. G. Laffley). P&G is a model for related
product diversity; almost all of P&G’s products benefit from the same distribution to the same or
same type of retail outlets and consumers. Procter and Gamble are also generally credited with
having invented brand management.

P&G was founded in 1837 (making P&G 172 years old) by two men who met by chance.
William Procter, emigrating from England, established himself as a candle maker in Cincinnati,
which was a busy center of commerce and industry in the early nineteenth century. And James
Gamble, arriving from Ireland, apprenticed himself to a soap maker. The two might never have
met had they not married sisters Olivia and Elizabeth Norris, whose father convinced his new
sons-in-law to become business partners.

Procter and Gamble is also currently developing and launching a direct to consumer sales online
products store. Procter and Gamble says it is launching the store as a “learning lab” and not as a
way to “bypass the big-box retailers like Wal-Mart and Target that peddle its household and
personal care brands to Internet shoppers (Forbes).” The online shopping site will be owned and
operated by PFSWeb and exclusively feature P&G products to consumers in the U.S.

5
Business Growth and Divestitures Folgers Sale
On June 4, 2008, P&G sold its Folgers coffee unit to J.M. Smucker Co for $2.95 billion. As part
of the deal, P&G shareholders will receive a 53.5 percent stake in Smuckers and the company
will assume $350 million of Folger's debt.

Gillette Acquisition
Procter & Gamble acquired Gillette in 2005 for over $50 billion in its largest acquisition to date.
In 2004, the last full year before the acquisition, Gillette generated over $10 billion in sales,
about $6 billion of which came from razors and Duracell and Braun products and the
remainder sourced from the Oral-B brand, which was moved into the Health & Well-Being
segment. A key piece of the acquisition beyond Gillette's product lines was its distribution
network and supply chain. Gillette's distribution network and supply chain in emerging markets
had been extremely successful for Gillette and, once acquired, has worked to complement P&G's
own distribution network.

Sale of Pharmaceutical Unit

In 2009 P&G sold its pharmaceutical unit to Warner Chilcott Plc for $3.1 billion in cash. The
company expects to book a 43 cent per share earnings boost in Q2 of fiscal 2010 as a result
of the sale. The deal allows P&G to focus on its personal care, beauty, and household product
divisions. In 2006, the company started winding down its discover-phase
pharmaceutical products in favor of licensing late-stage compounds, and announced in 2008 it
would exit the drug industry entirely.

Online Sales
In January 2010, the company announced it would pursue its own online retail store to sell its
consumer products to US end-users, putting it in direct competition with major retailers in
reaching consumers. P&G CEO Bob McDonald said the company could increase its online sales
"substantially" over the next few years. In fiscal 2009, P&G's existing online sales accounted
for $500 million, or 0.6% of total revenue. The company plans a full scale launch in spring
2010after a pilot test with 5000 consumers.

Different product price points provide some insulation against recession

Household staples are somewhat protected from the US recession and global economic
downturn. However, in a recession consumers often turn to cheaper private label or store brands
instead of "brand name" products from P&G. To combat private label encroachment, P&G offers
at least two product forms in many product categories. For example, the company has seen
increases sales in Luvs from Pampers diapers and an increase in Gain detergent sales from Tide.
In addition, P&G offers "Basic" versions of its Charmin toilet paper and Bounty paper towels.
The company's broad offerings, combined with the necessity of household items, provide
adegree of insulation against recession.

6
Retail Consolidation
The rise of a handful of powerful low-priced retailers has negatively impacted
consumer products companies. A handful of big retailers have captured a large share of the
market. For example, from 1999 to 2004, the top 10 food retailers in the US increased their share
of food retail sales from 53.4% to 58.9%. These large retailers have shifted the balance of power
within the supply chain. For example, the company's largest customer, Wal-Mart, accounted for
15% of net sales in 2006, 2007, and 2008.Wal-Mart has exerted its power over other suppliers to
their detriment in the past, such as forcing record companies to produce clean-label CDs and
pulling adult magazines. A decision by Wal-Mart not to sell a particular P&G consumer product
would prevent P&G from reaching its entire target market. In addition, many retailers have
pushed their own higher margin private label brands in competition with P&G.

Rise of Private Labels

In the past decade, P&G has faced stiff competition from private label brands or "store brands"
of large retailers such as Wal-Mart, Target, and supermarket chains. Private label products often
sell at lower price points and earn higher margins because the retailers can control the cost
of their production. For example, Wal-Mart offers 5,500 products through its "Great Value"
brand, which has increasingly sold as consumers feel the recession squeeze on their disposable
income. From 2003 to 2008, sales of Target's private label products rose an average of 15%
annually. Large retailers are close to the consumers, have the point of sale data on consumer
behavior and are in better position to understand consumer behavior. These strengths contribute
to better private label product development, which directly compete with P&G products.
Retailers also promote their own brands as they earn higher margins on them. P&G has
addressed this issue by continuously investing in Research & Development and introducing new
products as well as offering different versions of its own products at different price points.

Developing Markets
P&G has a well-established market presence in developed countries such as the United States
and Western Europe and is looking to its presence in emerging markets. In fiscal 2009, 32%
of total net sales came from developing nations, a figure that has increased steadily from 2002
when sales in developing nations accounted for only about 20% of total revenue (approximately
$8 billion).CEO Bob McDonald said in 2010 that he wants P&G to grow sales in China and
India to reach 1 billion more customers by 2014. In September 2010, PG announced it would
bring its Well a hair color products to India, leading an aggressive push for product expansion.
Some expect the company to bring its Crest or Oral-B toothpaste to the Indian market next. In
China and Russia, P&G's market share has been consistently increasing in the past five years as
Procter & Gamble has put an increased emphasis on establishing its products in those markets. In
2008, the company's distribution network reached 800 million people in China and 80% of
the population in Russia. P&G has created products designed specifically to target developing
nations. For example, in many countries consumers wash clothing by hand with limited amounts
of water. In response, P&G has launched Downy Single Rinse in Mexico, China, Philippines,
and 9 other countries.

7
While the average Mexican spends about $20 a year on P&G products, Chinese per-capita
spending is only about $3 and India per-capita spending $1. Increasing sales in China and India
to the levels in Mexico would add $40 billion in sales to the company's overall revenue.

Research & Development focuses both inside and outside the company
In 2009, P&G spent approximately $2.04 billion on Research & Development, nearly $1 billion
more than its closest competitor, Unilever. The two most important factors in P&G's
innovation process are its practice of consumer demand research and its "Connect and Develop"
R&D structure. First, when entering new markets, P&G sets up in-home visits with consumers in
order to fully understand the needs and desires consumers have for household and personal
products. This way, P&G gets directly to its customers and is able to cater to their needs. P&G
also incorporates consumers' input into the R&D process through its "Connect and Develop"
initiative. Through "Connect and Develop" P&G has an online interface set up where people can
submit product ideas and provide input on topics that P&G places on the web-portal. P&G
staff then sort through the ideas and work with the most promising ones. This process is not
responsible for all of the R&D that P&G does, but approximately 42% of new products in the
last several years were influenced by or originated from "Connect and Develop."Early returns on
new products released in 2009 are encouraging. Tide Stain Release, a stain-removing detergent
released in July 2009, has garnered 10% market share in the US as of November 2009. The
Bounce Dryer Bar, an automatic laundry freshener released in August2009, has captured 7% of
the North American fabric sheet market as of November 2009.

Commodity Prices
A diversified consumer products manufacturer, P&G depends heavily on a wide basket of global
commodities for manufacturing its goods. Higher commodity costs subtracted 0.5% from gross
margin growth. Nearly half of the company's cost of goods is directly related to commodity
goods. The company has increased prices due to higher costs of oil and other raw materials. P&G
instituted broad price adjustments in Q1 2010 to close widening price gaps in several businesses,
including North American laundry, tissue, and towel, and several Eastern European markets.
Analysts believe pricing adjustments are largely behind P&G as of Q2 2010, with an impact on
about 10% of P&G's products. Jefferies analyst report, 10 Nov 2009As the market leader, the
company does benefit from pricing power and can moderate commodity inflation better than its
competitors.

P&G Home Products Limited was incorporated as 100% subsidiary of The Procter & Gamble
Company, USA in 1993 and it launched launches Ariel Super Soaker. In the same year Procter
&Gamble India divested the Detergents business to Procter & Gamble Home Products. In
1995,Procter & Gamble Home Products entered the Hair care Category with the launch of
Pantene Pro-V shampoo.

Procter & Gamble Home Products launches Head & Shoulders shampoo. In 2000, Procter
&Gamble Home Products introduced Tide Detergent Powder - the largest selling detergent in the
world. Procter & Gamble Home Products Limited launched Pampers - world's number one

8
selling diaper brand. Today, Proctor & Gamble is the second largest FMCG Company in India
after Hindustan Lever Limited.

PROCTOR PLAZA IN CINCINNATI (USA).

MISSION AND VISION OF P&G

VISION of P&G ³To be a leading consumer goods company and to improve the lives of world
consumers by providing valuable and innovative products´. Ten years ago Procter and gamble
started the journey to improve the lives of Pakistani consumers by providing them with world
famous quality brands. P&G want to be an outstanding organization with a passion for winning
that would felt by everyone everyday; in the office, in the field every where P&G vision is to
lead business growth by proactively identifying opportunities and positively contributing to
volume growth.

We will provide branded products and services of superior quality and value that improve the
lives of the world's consumers. As a result, consumers will reward us with leadership
sales, profit, and value creation, allowing our people, our shareholders, and the communities in
which we live and work to prosper.

9
VALUES AND PRINICPLES OF P&G

P&G is its people and the values by which we live.

We attract and recruit the finest people in the world. We build our organization from
within, promoting and rewarding people without regard to any difference unrelated to
performance. We act on the conviction that the men and women of Procter & Gamble will
always be our most important asset.

10
LEADERSHIP:

 We are all leaders in our area of responsibility, with a deep commitment to

deliver leadership results.

 We have a clear vision of where we are going.

 We focus our resources to achieve leadership objectives and strategies.

 We develop the capability to deliver our strategies and eliminate organizational barriers.

OWNERSHIP:

 We accept personal accountability to meet our business needs, improve our systems, and
help others improve their effectiveness.

 We all act like owners, treating the Company's assets as our own and behavingwith the
Company's long-term success in mind.

INTEGRITY

 We always try to do the right thing.

 We are honest and straightforward with each other.

 We operate within the letter and spirit of the law.

 We uphold the values and principles of P&G in every action and decision.

 We are data-based and intellectually honest in advocating proposals, including

recognizing risks.

PASSION FOR WINNING

 We are determined to be the best at doing what matters most.

 We have a healthy dissatisfaction with the status quo.

 We have a compelling desire to improve and to win in the marketplace.

11
TRUST

 We respect our P&G colleagues, customers, and consumers, and treat them as wewant to
be treated.

 We have confidence in each other's capabilities and intentions.

 We believe that people work best when there is a foundation of trust.

Our principles
We Show Respect for All Individuals

 We believe that all individuals can and want to contribute to their fullest potential.

 We value differences.

 We inspire and enable people to achieve high expectations, standards, andchallenging

goals.

 We are honest with people about their performance.

The Interests of the Company and the Individual Are Inseparable

 We believe that doing what is right for the business with integrity will lead tomutual
success for both the Company and the individual. Our quest for mutualsuccess ties us
together.

 We encourage stock ownership and ownership behavior.

We Are Strategically Focused in Our Work

 We operate against clearly articulated and aligned objectives and strategies.

 We only do work and only ask for work that adds value to the business.

 We simplify, standardize, and streamline our current work whenever possible.

We Value Personal Mastery

 We believe it is the responsibility of all individuals to continually develop themselves

and others.

 We encourage and expect outstanding technical mastery and executional excellence.

12
We Seek to Be the Best

 We strive to be the best in all areas of strategic importance to the Company.

 We benchmark our performance rigorously versus the very best internally and externally.

 We learn from both our successes and our failures.

Innovation Is the Cornerstone of Our Success

 We place great value on big, new consumer innovations.

 We challenge convention and reinvent the way we do business to better win in the market
place.

Mutual Inter dependency Is a Way of Life

 We work together with confidence and trust across business units, functions, categories,
and geographies.

 We take pride in results from reapplying others' ideas.

 We build superior relationships with all the parties who contribute to fulfilling
our Corporate Purpose, including our customers, suppliers, universities, and
governments.

P&G SUBSIDIARIES
P&G India has three arms -- P&G Hygiene and Health Care, P&G HOME PRODUCTS and
GILLETTE INDIA.

P&G Hygiene and Health Care

Procter & Gamble Hygiene and Health Care Limited is an India-based fast moving
consumer goods company. The Company is engaged in the manufacturing and marketing of
health and hygiene products. The Company's portfolio includes VICKS, a healthcare brand and
WHISPER ,a feminine hygiene brand. Its healthcare product portfolio includes Vicks Vap Rub,
Vicks Inhaler, Vicks Formula 44, Vicks Cough Drops and Vicks Action 500+. Vicks Vapo Rub
Is available in five pack sizes of 50 grams jar, 25 grams jar, 10 grams, five grams and two grams
dibbi. Under feminine care, its brands includeWhisper Maxi Regular ,Whisper Maxi XLWings
,Whisper Ultra withWings ,Whisper Ultra XLWings andWhisper Choice. The Procter and
Gamble Company is its ultimate holding company and Procter and Gamble Asia Holding BV is
its holding company.

13
P&G HOME PRODUCTS:
Procter & Gamble Home Products Limited manufactures and distributes fabric care, hair care,
and baby care products. The company was incorporated in 1989 and is based in Mumbai, India.
P&G Home Products is a subsidiary of Procter & Gamble Co. P&G Home Products Limited is
one of India's fastest growing Fast Moving Consumer Goods Companies that has in its portfolio
P&G's global brands such as Ariel and Tide in the Fabric Care segment, and in the Hair Care
segment: Head & Shoulders - world's largest selling anti-dandruff shampoo; Pantene - world's
No. 1 beauty shampoo; and Rejoice - Asia's No. 1shampoo.P&G Home Products Limited is a
100% subsidiary of The Procter & Gamble Company, USA, that in India, has carved a reputation
for delivering superior quality, value-added products to meet the needs of consumer.

GILLETTE INDIA:

Gillette India Limited (GIL) is one of India's well-known FMCG Companies that has in
its portfolio GILLETTE MACH 3 TURBO, ORAL-B and DURACELL - world's leading brands
and has carved a reputation for delivering high quality, value-added products to meet the needs
of consumers.

Incorporated in the year 1985 as Indian Shaving Products Limited, now Gillette India Limited,
its products speak for themselves. The company is always been known for the strength of
its brands, and always continues to penetrate deeper into the hearts of Indian Consumers.

In the year 1990-91, the company launched two products, first was 7 0'Clock EJTEK PII Shaving
System and second was shaving cream with three variants. This was the First time that a shaving
cream was introduced in Indian markets with special features.

Company successfully relaunched Gillette Foam in 4 Variants .Duracell also launched its Ultra
M 3 AA batteries, which was well received by consumers. Oral Care launched Power Oral
Care brushes, which were well received in the market. Towards the End of 2003, Company
launched Gillette Vector Plus.

The Company launched Storm Force, a revolutionary after shave splash and New Ultra Comfort
Shaving Gel .In the fourth Quarter, Company launched two new Gillette Series Tube Shave Gel
variants, namely for Sensitive skin and Moisturizing, to suit different skin types. Company
launched ?New Improved Gillette Vector Plus featuring all new contemporary look. The Gillette
Company, USA was acquired worldwide through merger in October, 2005 by Procter& Gamble
Company, USA creating the largest Consumer products Company in the
World.

In the year 2006-2007, Company launched Gillette Presto Plus for more discerning consumers.
Oral B brand launched Oral B Vision and Kid in Premium Market Segment.

In the year 2007-2008, Company launched The Gillette Winners program that had sports legends
Roger Federer , Thierry Henry and Tiger Woods and Rahul Dravid. An innovative program

14
"Free Dental Check up" was organized to enable consumers to benefit from expertise of
professional dentists at no cost. Oral-B brand launched a new variant "Shiny Clean" targeted at
the value segment.

PRODUCTS OF P&G

Fabric Care:
Procter & Gamble has two of its world-leading detergents ± Tide and Ariel, in India to cater to
the main concerns of the Indian households, namely, outstanding whiteness and stain-removal.
Ariel Front-O-Mat

Ariel 2 Fragrances

Tide Detergent

Tide Bar

Hair Care:
P&G’s Beauty Business is over US$ 10 Billion in Global Sales, making it one of the world’s
largest beauty companies. The P&G beauty business sells more than 50 different beauty brands
including Pantene®, Olay®, SK-II®, Max Factor®, Cover Girl®, Joy®, Hugo Boss®, Herbal
Essences® and Clairol Nice ‘n’ Easy®. In India, P&G’s beauty care business comprises
of Pantene, the world’s largest selling shampoo, Head & Shoulders, the world’s No. 1 Anti-
dandruff shampoo and Rejoice ± Asia’s No. 1 Shampoo. Procter & Gamble is committed
to making every day in the lives of its consumers better through the superior quality of its
products and services.

15
 Pantene Pro V

 Head & Shoulders

 Rejoice

Baby Care:
Segment includes diapers, baby wipes, paper towels and toilet papers.

Pampers

Luvs with ultra leakguards

Pampers baby wipes baby

Pampers baby wipes sensitive

16
Beauty care product:

P& G beauty business is over US 10 billion dollars in global sales make it one of the world
largest beauty companies. The p and g beauty business sell more than 50 different product
including:-

Pantene

 Olay

 Max factor

 Joy

 Herbal Essence

 Easy

In India, p and g business comprises of Pantene the world largest selling shampoo, Head n
Shoulders the world No. 1 anti – dandruff shampoo, Rejoice Asia's No. 1 shampoo. P and g
committed to making everyday in the lives of its customer better through the superior quality of
its product and services.

Shiksha

17
P&G's focus on purpose-inspired growth drives us to not only serve our consumers with superior
product propositions, but also truly touch and improve the lives of more consumers, more
completely by contributing towards the community we operate in Live, Learn and Thrive is
P&G's global corporate cause, focusing on helping children in need around the world. The
programs enable children to get off a healthy start, receive access to education and build skills
for life. They believe in building the community in which we live and operate by supporting its
ongoing development. Educating Underprivileged Children (2007) ProjectSHIKSHA: Secure
You Child's Future (2003). With a mission to make difference to make current alarming situation
of children's literacy, P & G joined hand in India's premier child right organization child relief
and You (CRY) and Sony Entertainment and Television to launches 'Shiksha' a program to
educate uprivileged children in India. Under shiksha P& G and Sony appealed to consumers and
viewers to support the cause and make it easy for them to do so – all an individual has to do is
purchase of larger pack of either Tide, Ariel, Pantene, Head n Shoulder, Rejoice, Vicks vapo rub
or Pampers that will one day's education of one children one child per pack purchased.
Irrespective of sale of its brand from shiksha, p and g committed a minimum of 1 crore to
CRY.P& G aimed at education for it its csr initiative. According to Pand G's marketing manager:
shiksha is not an initiative but a passion that we as an organization strongly believe in. It means
they are helping to build the future of India. CRY education has managed to reach the
unprivileged and even the poorest of the poor, children numbering around 87, 000 in India.
Thanks to the CSR initiative of FMCG products of P & G .P &G shiksha closed 08 with the
largest ever contribution of 3.2 crore to CRYand other initiatives is reaching out to over 87,000
in the coming year.

Padhega India. Badhega India.

They seems to define the slogan “ Padega India tabhi to badega India”. With a motto of “Padega
India, Jabhi to Badhega India “.shiksha believe that the secret to a brighter India lies in children

18
attaining their right to fee , quality education. Irrespective of sale every year P& G commits to a
minimum of Rs. 1 crores to its partner CRY , which will be allocated to the project focus on
enabling the child’s right to education. These funds will deployed to the establish Shiksha project
work with the state education department to relook at existing education amenities like water,
electricity and health and enroll more children into formal schools and promote retention in
schools. Project Shiksha is a part of global philanthropy programme Pand G Live, Learn and
Thrive that focuses on the development of children in need across globe with education of
children via shiksha being the priority in India.

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company, touching the lives of two out of three Indians with over 20distinct categories in Home
& Personal Care Products and Foods & Beverages. The company’s Turnover is Rs. 20, 239
crores (for the 15 month period ± January1, 2008 to March 31, 2009).Hindustan unilever
limited is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer
goods with strong local roots in more than 100countries across the globe with annual sales of
¼40.5 billion in 2008. Unilever has about 52% shareholding in HUL. Hindustan Unilever was
recently rated among the top four companies globally in the list of ³Global Top Companies for
Leaders´ by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and
the RBL Group. The company was ranked number one in the Asia-Pacific region and in India.
The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is
to ³add vitality to life". The company meets everyday needs for nutrition, hygiene, and personal
care, with brands that help people feel good, look good and get more out of life. It is a mission
HUL shares with its parent company, Unilever, which holds about 52 % of the equity.

Heritage
HUL’s heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in
India. Local manufacturing began in the 1930s with the establishment of subsidiary companies.
They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan
Unilever Limited on June25, 2007). The company created history when it offered equity to
Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the
company has more than three lakh resident shareholders.

HUL’s brands -- like Lifebuoy, Lux ,Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk, Clinic,
Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls - are
household names across the country and span many categories - soaps, detergents, personal
products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in
over 35 factories, several of them in backward areas of the country. The operations involve
over 2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets
including direct reach to over 1 million.HUL has traditionally been a company, which
incorporates latest technology in all its operations. The Hindustan Lever Research Centre (now
Hindustan Unilever Research Centre) was set up in 1958.

19
Doing well by doing good
HUL believes that an organization’s worth is also in the service it renders to the community.
HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases
and water footprint. It is also involved in education and rehabilitation of special or
underprivileged children, care for the destitute and HIV-positive, and rural development. HUL
has also responded in case of national calamities / adversities and contributes through various
welfare measures, most recent being the relief and rehabilitation of the people affected by the
Tsunami disaster, in India. HUL’s Project Shakti is a rural initiative that targets small villages
populated by less than 5000 individuals. Through Shakti, HUL is creating micro-enterprise
opportunities for rural women, thereby improving their livelihood and the standard of living in
rural communities. Shakti also provides health and hygiene education through the Shakti Vani
programme. The program now covers 15 states in India and has over 45,000 women
entrepreneurs in its fold, reaching out to 100,000villages and directly reaching to over three
million rural consumers.HUL also runs a rural health programme, Lifebuoy Swasthya Chetana.
The programme Endeavour’s to induce adoption of hygienic practices among rural Indians and
aims to bring down the incidence of diarrhoea. It has already touched120 million people in
approximately 50,676 village across India.

History of HUL

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap
bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of
marketing branded Fast Moving Consumer Goods (FMCG).Soon after followed Lifebuoy in
1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the
famous Dalda brand came to the market in 1937.In 1931, Unilever set up its first Indian
subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India
Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL
in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the
foreign subsidiaries to do so. Unilever now holds 52.10% equity in the company. The rest of the
shareholding is distributed among about 360,675individual shareholders and financial
institutions. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the
company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited
was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition.
The erstwhile Lipton's links with India were forged in1898. Unilever acquired Lipton in 1972
and in 1977 Lipton Tea (India) Limited was incorporated.

Purpose, values & principles

Our Corporate Purpose states that to succeed requires "the highest standards of corporate
behaviour towards everyone we work with, the communities we touch, and the environment on
which we have an impact."

20
Mission
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and
personal care with brands that help people feel good, look good and get more out of life.

Our vision

Unilever is a unique company, with a proud history and a bright future. We have ambitious plans
for sustainable growth and an intense sense of social purpose.

A clear direction for us

Our purpose is to make sustainable living commonplace. We work to create a better future every
day, with brands and services that help people feel good, look good, and get more out of life.

In 2009, we launched The Compass – our strategy for sustainable growth. It sets out our clear
and compelling vision to double the size of the business, while reducing our environmental
footprint and increasing our positive social impact and gives life to our determination to build a
sustainable business for the long term. This is captured in the Unilever Sustainable Living Plan.

By combining our multinational expertise with our deep roots in diverse local cultures, we’re
continuing to provide a range of products to suit a wealth of consumers. We’re also
strengthening our strong relationships in the emerging markets we believe will be significant for
our future growth.

And by leveraging our global reach and inspiring people to take small, everyday actions, we
believe we can help make a big difference to the world.

"We cannot close our eyes to the challenges that the world faces. Business must make an explicit
and positive contribution to addressing them. I’m convinced we can create a more equitable and
sustainable world for all of us by doing so,” says Unilever CEO Paul Polman.

“But this means that business has to change. The Unilever Sustainable Plan is a blueprint for
sustainable growth. And in 2014 we are strengthening our Plan with new commitments to drive
further transformational change.”

Our Priorities and Principles

Unilever is committed to supporting sustainability and providing our consumers around the
world with the products they need to look good, feel good and get more out of life.

Five key priorities provide the foundation for our brand’s campaigns. Read some examples of
how different brands are upholding these principles.

21
 A better future for children
 Our oral care brands Signal and Close-Up encourage children to brush their teeth day and night
for optimal dental health. We also partner the FDI World Dental Federation, supporting oral
health programmes around the world
 Brands such as Omo and Persil have helped parents believe the unconventional philosophy that
Dirt is Good. Children learn through play, and mud spatters and grass stains can easily be
removed with effective laundry products
 Unilever also partners the World Food Programme and launched the Together for Child Vitality
initiative to bring our expertise in nutrition to children in some of the world’s poorest countries.

A healthier future
 Our Flora/Becel margarine brands have been scientifically proven to help reduce cholesterol
levels
 Vaseline has launched the Vaseline Skin Care Foundation, providing research into skin
conditions and support for people affected by them
 Lifebuoy soap has long had a presence in developing markets around the world, and its campaign
to promote hand washing with soap was celebrated by 200 million people across 53 countries in
2013.

A more confident future

 Dove’s Campaign for Real Beauty uses real women instead of models in its advertising
campaigns. The brand has also launched the Dove Self Esteem Fund which educates and inspires
millions of young women
 Our Sun silk hair care brand has partnered some of the world’s leading hair specialists to co-
create formulas tailored to treat conditions such as hair-fall, frizz, limp locks and uncontrollable
curls
 Close-Up toothpaste provides an affordable oral care solution for consumers in developing
markets, allowing them to take care of their dental health and closer with confidence.

A better future for the planet

 We’re aiming to grow our business while reducing our environmental footprint and working
across the supply chain for every brand to do so
 Our Laundry brands, including Surf, Omo, Persil and Comfort, have launched the Cleaner Planet
Plan together, encouraging consumers to change their laundry habits to reduce water and energy
consumption
 Our Lipton tea brand backs sustainable forest management projects in Africa

22
 A better future for farming and farmers
 Many of our brands contain ethically and sustainably sourced ingredients that are independently
certified
 Among these are Lipton tea, which is accredited by the Rainforest Alliance, and Ben & Jerry’s
ice cream, which includes Fair trade vanilla and almonds in various flavours
 Around half our raw materials come from agriculture and forestry, so we’re working towards
making our key crops 100% sustainable.

Product of HUL

personal wash:-
Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears and Rexona

Laundry:-
Surf Excel, sun light, Rin ,Wheel & Ala bleech

Dishwasher :-
Vim

Disinfectants:-
Domex, cif

Foods
Kissan (Jam, Ketchup, Squashes), Annapurna(Aata and salt), Knorr Soups, Modern Bread

23
Ice-cream
Kwality Wall's

Bewerages
Tea
Brooke bond, Lipton, taj mahal
Coffee
Brooke bond bru

Beauty Products
Fair & Lovely, Lakme, Ponds, Vaseline and Aviance

Hair-Care
Sunsilk naturals, Clinic , Dove and Lifebouy

Oral care Pepsodent and Close-up

Deo spray
Axe and Rexona

Water Purifier
Pureit

Ayurvedic Personal & health care

Ayush

24
 OBJECTIVE OF STUDY

The intense competition in particular market drives businesses to evaluate their policies and
effectiveness regularly. Each company has its own business characteristic, which certain policy
is suitable fit for a company while others could be unacceptable. Several conditions that prompt
the differentiation treatment among different company are nature of the business, workers
learning and development mentality, top level manager vision, dynamics market condition, and
competitor business strategy, to name a few. From investors or outsiders point of view, financial
performance of a company is noteworthy since they aim at investing their money to the company
by buying a number of shares from stock market. Under such circumstances, the investors would
assess in much details regarding the corporate current performance and possible future states. In
other terms, investors need to examine the business risks of the company in order to save their
investment. The assessment of business risks is also challenging since different business types
imply a significant different treatment of strategic business control and evaluation. For example,
a firm that produces sheets of paper has relatively stable, functional skills are specialized to gain
operating efficiencies. There are relatively no strict challenge from the same competitor, because
the market share are divided equally, as long as they keep the productions quality and maintain
the cheapest cost of production. In contrast, firms in electronic industry like Nokia and Apple
Inc, which produce mobile-phones and other portable electronic products; they face a fiercer
challenge since the business environment changes rapidly, which in turn, forces the firm to find
an effective business strategy that can improve their cost-efficiencies with the same quality
product. The situation also occurs in the fast moving consumer goods where a number of brands
continue appear in order to offer attractive products to consumers.

Regardless of whether the environment is stable or dynamic, an organization needs to exercise

control over its operations so that its objectives are achieved as preliminary business planning
and as part of managing business risks.

To assess the marketing strategy on hair care products of HUL and P&G.
 To know about the customer satisfaction level regarding HUL and P&G products.
 To study Indian consumer buying behavior on hair care products of HUL andP&G.
 To evaluate the factors influencing hair care consumer buying behavior ofHUL and P&G
in Indian market.
 To evaluate the problems faced by customers while using the products.
 To know about the suggestions of customers to increase the sale of products.
 To know about the source of information of products
 To know about the quality of products.

25
 RESEARCH METHDOLOGY
The purpose of methodology is to describe the process involved in research work.
This includes the overall research design, data collection method, the field survey and the
analysis of data.

In this study, the researcher has adopted descriptive research.

a) Sample design
Survey: A sample of 100 customers.

b) Research Design
Detailed and structured questionnaire was designed. The questionnaire
w a s designed to get information from customers about their satisfaction and overall
opinion about Hindustan Unilever Limited Product and P&G. The methodology
developed was Primary and Secondary research.

c) Data Collection.

• Primary data
Primary data are those which are collected as fresh and for the first time and thus
happen to be original in character. It was collected through questionnaire.

• Secondary data
The secondary data are those which have already been collected by someone e l s e
a n d w h i c h h a v e a l r e a d y b e e n t h r o u g h t h e s t a t i s t i c a l p r o c e s s . T h e d a t a were
collected in the form of company profile and produce profile from the web sites.
Some of the books were referred for theoretical concepts.

d) Field of Survey
The field work for the survey was conducted in Ropar. The exercise involved was
filling out the questionnaire by customers.

26
 DATA ANALYSIS

1. Are you aware of HUL and P&G products?

Awareness of HUL and P&G products

120

98
100

80

60
Use of HUL and P&G products

40

20
2
0
Yes No

Data Interpretation: The above table shows that 98% respondents are aware products of
HUL and P&G while there are only 2% respondents who are not aware of these products.

27
 2. If yes, then which one you prefer mostly?

Which one
100
89
90
80
70
60
50
Which one
40
30
20
11
10
0
HUL P&G

Data Interpretation: The above table shows that 89% respondents use products of HUL
while there are only 11% who use products of P&G.

28
 3. What is your main source of information about HUL and P&G products?

Information Source
90

80

70

60

50

40 Information Source

30

20

10

0
Media Broacher Friends

Data Interpretation: The above table shows that 78% respondents came to know about the
products from media, 12% from broacher and only 10% from friends.

29
 4. If media, which one?

Media
80

70

60

50

40
Media
30

20

10

0
T.V. Radio Internet

Data Interpretation: The above table shows that 67% respondents came to know about the
products through T.V., 14% through radio and rest 19% through internet.

30
 5. Since how long are you using the HUL and P&G products?

Time
60

49
50

40

30 27
24 Time

20

10

0
Less than one year 1-2year More than 2year

Data Interpretation: The above table shows that 24% respondents are those who are using
the products from less than one year, 27% from one-two years and 49% from more than
two years.

31
 6. What is your quality satisfaction level for HUL and P&G products?

Quality Satisfaction Level

45 42
40 36
35
30
25
20 18
15
10
4 Satisfaction Level
5
0
Highly satisfied Satisfied Dissatisfied Highly
dissatisfied

Data Interpretation: The above table shows that 36% respondents are highly satisfied with
the products, 42% are satisfied, 18% are dissatisfied and rest 4% are highly dissatisfied

32
 7. Have you faced any problem while using HUL and P&G products?

Problem
100
90 87

80
70
60
50
Problem
40
30
20 13
10
0
Yes No

Data Interpretation: The above table shows that 87% respondent faced the problem while
using the products and 13% did not face the same problem.

33
 8. Are you satisfied with the prices of the products?

Satisfaction with prices

70
64

60

50

40 36
Satisfaction with prices
30

20

10

0
Yes No

Data Interpretation: The above table shows that 64% respondent are satisfied with the
prices of the product and 36% are dissatisfied for the prices.

34
 9. According to you why HUL and P&G products have edge over other
products?

Edge over others

35
32

30
27

25 24

20
17
Edge over others
15

10

0
Price Quality Range Image

Data Interpretation: The above table shows that 32% respondent think that they have edge
over others because of good image,27 % respondent think that they have edge over others
because of good price, 24% respondent think that they have edge over others because of
good quality,17 % respondent think that they have edge over others because of good range.

35
 10. Whether you will purchase HUL and P&G products if their prices are
increased?

Purchase after price increase

70
59
60

50
41
40

Purchase after price increase

30

20

10

0
Yes No

Data Interpretation: The above table shows that most of respondent are prefer P &G
products if price increased and rest 41% respondent are answer no if price is increased.

36
 11. Which is the best way of promoting the sales of HUL and P&G products?

Best way of promotion

40 38

35
31
30

25
20
20
Best way of promotion
15
11
10

0
Shop display Hoardings Electronic media Door to door
selling

Data Interpretation: The above table shows that 38% respondent are interact with
electronic media, 31% respondent are interact with shop display,20% respondent interact
with hoardings and rest 11% respondent are interact with door to door selling.

37
 FINDINGS & RECOMMENDATIONS
Findings:
 Majority of people are using P&G and HUL products.
 Most of the people prefer HUL products.
 Media is a good information source for advertisement to interact with customers.
 Mostly people are satisfied with P&G and HUL products
 It is also found that 59% respondents prefer to purchase P&G and HUL products even if
prices increased.
 69% respondents are satisfied with the products of P&G and HUL.

Recommendations:

 Companies should try to expand its market share and should also try to increase the
awareness through the advertisement.
 Customer feedback can be taken which will help the company for promotion.
 Both companies should increase their distribution channel.
 Both companies should not increases their prices because most of the customer will get
dissatisfied with more prices.

38
 LIMITATION
1. It is very difficult to collect the information from people as they are busy in their work.
2. This study was carried out only among the consumer in Gurgaon city.
3. The sample size was restricted to 100 due to time constraints
4. The sample was taken on the basis of convenience there for the short coming of the
convenience sampling may also be present in this study.
5. This study is based on the prevailing satisfaction of the respondents. But their satisfaction
may change according to time and technology.

39
CONCLUSION
After studying various market dynamics of HUL and P&G products with the help of Customer
survey market standing of HUL products is quite clear. HUL and P&G Products are clearly the
market leader in branded products. According to analysis it can be conducted that HUL and P&G
Products are having good market share and excellent quality as compared to products. Customer
considers quality of HUL and P&G products as most important factor. Moreover the prices of the
HUL and P&G products are very competitive. According to customers, media is the main source
of Information of HUL and P&G products; electronic media is the best way of Information. In
nutshell, it can be concluded that mostly customers prefer HUL and P&G Products and they are
satisfied with them.

40
 BIBILIOGRAPHY

Websites:
http://us.pg.com/
https://www.thebalance.com/market-research-was-born-in-the-field-proctor-and-gamble-
2297142
http://www.bitlanders.com/blogs/procter-and-gamble-introduction/30254
https://www.slideshare.net/SarthakRahate/case-study-procter-and-gamble-pg-marketing-
capabilities
https://sarahstecko.files.wordpress.com/2014/03/literature-review.docx
https://www.scribd.com/doc/60972025/Project-Report-on-p-g
http://journal.sbm.itb.ac.id/index.php/jbm/article/viewFile/1084/734
.https://www.omicsonline.org/open-access/loyalty-quality-and-satisfaction-in-fmcg-retail-
marketdoes-loyalty-in-retailing-exist-2167-0234.1000122.php?aid=29292
http://shodhganga.inflibnet.ac.in/bitstream/10603/74309/6/06_chapter%203.pdf

Books:
Marketing and Management -A strategic Decision making Approach
Marketing Management Bhawna Mehra Prof. P.K. Chopra

41
42