|Industry Analysis|

FMCG (Fast Moving Consumer Goods) is the fourth largest sector contributing to Indian Economy. The
industry is further divided into three segments as follows:
Food & Beverages (19%)
Healthcare (31%)
Household & Personal Care (50%)

P&G was set up in India in 1964. P&G India presently serves more than 650 million consumers across
India. P&G India is focused on feasible growth in India and is right now to put resources into the nation
by means of its five plants and more than nine manufacturing destinations.

Be that as it may, over the most recent couple of years, the FMCG market has developed at a quicker
pace in rural India in comparison urban India. The FMCG sector generally contributes 2.4% to India's
GDP.

|Product Mix of P&G|

*Healthcare
*Oral Care
*Beauty & Personal Care
*Detergent & Fabric Care
*Household Care
*Hair Care
*Child & Women Hygiene

|SWOT of P&G|

STRENGTH:
*Brand Equity
*Top-Notch R&D
*Known for their marketing strategies

WEAKNESS:
*Beauty & health products are mostly for women.
*Slow decision making due to organizational structure
*Losing Market share in India
OPPORTUNITIES:
*Penetrating rural market
*Increased purchasing power & exponential growth in middle class families
*Beauty products for men

THREATS:
*Intense Competition
*Covid-19 will slowdown consumer spending
*Substitute brands offers cheaper price

|SWOT of Pampers (Baby Care) |

STRENGTH:
*Highest market share
*Aggressive Advertising
*Brand goodwill attracts customers attention

WEAKNESS:
*Expensive products
*Focusing on current customers only
*Not concentrating in rural market.

OPPORTUNITIES:
*Growing need for hygiene
*Increase in market potential
*Interacting mothers for promoting product & connecting customers

THREATS:
*Competitors like Huggies, Himalaya etc.
*Covid-19 will drive some customers to buy affordable priced diapers
* Easy substitutes available in market

|SWOT of Tide (Fabric Care) |

STRENGTH:
*Low price with good quality
*Aggressive Advertising & Brand loyalty
WEAKNESS:
*Substitute available on same or even cheaper prices
*Product is on mature stage, new innovation is required in market

OPPORTUNITIES:
*People seeking for best quality in cheaper prices
*Increase in market potential of rural market.

THREATS:
*Price wars with other present competitors
*Less product awareness in rural areas.

|Porter’s Five Forces Model of P&G|

Threat of new entrants-

*P&G possess a significant measure of market share far and wide
*To compete P&G A competitor must have the large totals of capital for overwhelming marketing and
Research and development.
*P&G has gained consumer confidence & brand loyalty

Bargaining power of buyers-

*P&G has intense competition! Consumers diverts easily to products of same quality & cheaper prices.
*Covid-19 will affect the entire market & supply chain.

Bargaining power of suppliers-

*The supplies of P&G incorporate raw materials technology products and packing of the products. There
are countless suppliers in the market for every one of these supplies.
*The supplier switching cost is low for P&G. Additionally, P&G purchases in large amounts making it
perfect for any supplier.
*In this manner they are in no position to bargain with or attempt to impact the prices of P&G products.
The danger Is low for P&G.

Threats of substitutes-
*There are many products available in the market which can act as a substitute for P&G products.
Substitute products provide the same quality or even better in the same price or even cheaper. The
threat of substitutes for P&G is high. As there are number of other competitors available in market with
aggressive strategies to compete.

Competitive Rivalry-
*P&G has several strong competitors in different segments of FMCG markets. Some of the examples are
Johnson & Johnson, HUL, Himalaya Etc. Switching cost in this industry is quite low. So the chances of
customers to divert from one product to another is high.
|Business Model of P&G|

P&G has assembled significant scale by acquiring popular brands, for example, Gillette, Tide, Ariel,
Pampers and so forth.

*P&G spends the most on advertising to persuade consumers that its products merit their cash. It's
advertising expenses that are around 11% of its yearly deals make P&G the world's largest spender on
advertising.

*P&G puts about $2 billion every year in look into and development, significantly more than its
competitors. This high Research and development spend helps P&G dispatch improved and inventive
products at regular interims to keep up, just as expand its piece of the pie.

*It is planning to use better manufacturing dependability and adherence to quality norms and Increasing
limitation of the supply chain to improve the expense of goods sold.

|Revenue Model of P&G|

P&G operates its business through these segments- Hair, and Personal Care, Grooming, Health Care,
Fabric Care, and Home Care and Baby, Feminine and Family Care. P&G customer segments incorporate
mass merchandisers, grocery stores, membership club stores, medicine stores, department stores,
salons, distributors, and high-recurrence stores.

As per FY15, their global revenue generation was

*29.2% of the total, from the Fabric Care & Home Care segment.
*26.5% of the total, from the Baby, Feminine & Family Care segment.
*23.8% of the total, from the Beauty, Hair & Personal Care Segment.
*10.1% of the total, from the Healthcare Segment.
*9.8% of the total, from the Grooming Segment.

|Development and migrating brick and mortar customers|

Online shopping continues to rule FMCG sales and compared to offline sales by means of kirana stores,
malls, and other stores, people purchased more fast-moving consumer goods on Amazon and other e-
retailers.

In India, one in every two items purchased by means of online shopping stages, for example, Amazon
and Flipkart belongs to fast-moving consumer goods, for example, cosmetics, food and beverages,
skincare and other categories. FMCG items remain the most sold items on e-commerce stages by
volume. The highest volume of orders is for FMCG at 56%, data, information, and measurement firm
Nielsen had earlier said in a report. In terms of value, FMCG sales contribute about 11% of e-commerce
sales.

E-commerce has seen a transformative journey and is currently developing from 0.5% commitment in
2016 to a 2% commitment in 2019. This is in a fraction of the time that brick and mortar retail took to
evolve.