Course Code:- MKT251 Course Title:- Essentials of Consumer Behaviour

Course Instructor:- Rajesh Poonia

Academic Task No:- 01 Academic Task Title:- Individual Assignment

Date of Allotment:- 17.08.2020 Date of submission:- 30.08.2020

Student’s Roll no:- A62 Student’s Reg. no:- 11815905

Evaluation Parameters: (Parameters on which student is to be evaluated- To be mentioned by students as

specified at the time of assigning the task by the instructor)

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)
 1.We will learn about analytical and conceptual things

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student‟s work or from
any other source except where due acknowledgement is made explicitly in the text, nor has any part been written
for me by any other person.

Student’s Signature:
Md Shahmun Islam

Evaluator’scomments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator‟s Signature and Date:-

Marks Obtained:

Max. Marks:

1
Assignment on P&G
 Introduction

Proctor and Gamble Company (P&G) is a high-end consumer goods company in the United
States. Proctor and Gamble (P&G) has its headquarters in Cincinnati, Ohio, United States of
America. Proctor and Gamble (P&G) was founded by an Englishman named William Procter
and an Irish American by the name of James Gamble. It was founded in 1837 in the month of
October 31st. The Proctor and Gamble Company (P&G) is well known and specialized in its
wide range of products especially “in the personal or consumer health category, personal care
and hygiene products”. All different types of health / consumer health, and personal care and
hygiene products are organized and divided into different categories. Those categories may
include "Beauty products, cosmetic products, health care products, textile and home care
products, child care products and women's and family care products." In addition, The Procter &
Gamble Company (P&G) before selling Pringles chips to the Kellogg company, a product
portfolio of the following, an international manufacturing company also includes food, snacks
and beverages.

Products of P&G

P&G or Procter and Gamble is one of the world's leading FMCG companies. P&G is a global
leader in providing products in various fields of beauty, grooming, personal care, health care etc.
The overall range of product portfolio in the P&G marketing mix is below:

3
Beauty: Skin care products and P&G beauty products are offered under this category. The
products under this category are Olay, old spices, protection. P&G offers products such as
shampoo and hair conditioner under the brand names Pantene and Head and shoulders. P&G also
targets niche segments by offering products such as Olay Age Defying.
Self-grooming: The brand and Gamble offer shaving care and equipment such as razors, front
and back shaving in the grooming phase. The products are sold under the brand name Gillette
which holds the leading market position in the men’s cosmetics segment.

Healthcare: P&G offers oral care products under the Oral-B brand and personal health care
products like Vicks. Products offered under the mouth-B are mainly toothpaste and toothpaste

Fabric Care and Home Care: P&G offers textile care products under the brand Ariel and Tide.
Products range from laundry, additives to fabric reinforcement. Procter and Gamble also offer
home care products such as air fresheners under the brand ambi pur

Baby, Women & Family Care: P&G offers baby care products such as nappies and baby wipes
under brand pampers. It also offers women's products under Always known in India as gossip.

Market Segmentation and it’s basis of P&G

The market has a lot of buyers and consumers vary in their demands, resources, locations,
shopping methods and shopping habits. Through market segregation P&G divides its large,
complex markets into smaller and more accessible segments with products and services tailored
to their unique needs. This section focuses on three P&G classification strategies.

 Consumer Market Division

 Business Market Classification
 Global Market Classification
 Consumer Market Division

There is no single way to divide the consumer market. P&G advertisers should try to
differentiate themselves to find a better way to look at market structure. The major variations
used by P&G in classifying consumer markets can be illustrated below.

4
1. Population: P&G divides its market into groups according to categories such as: -
a. Age: P&G manufactures its products on an age-old basis such as 'Crest' a kind of toothpaste
for children with a different taste like Kids Crest Cavity Protection Sparkle Fun. Another adult
attachment is Crest Nature's pro-health.
b. Gender: The male 'Boss' scent of the male. Woman 'Naomi Campbell'. Naomi Campbell is a
real star. She is known the world over for her strong personality, sensual beauty and extravagant
lifestyle.
c. Family size: In a large and expanded family they produce "96-tissiues Puffs Plus". In a small
family they produce "60-tissiues Puffs Plus".
d. Revenue: Use for rich clients "Gillette Fusion" with 5 characters. With limited customer
spending “Mach3”.
e. Function: For business executives using low scents on the other hand, the model uses high
scented perfumes.

2. Geographical Segmentation: Becoming an international company that operates almost

worldwide with a wide range of products. P&G divides its market into units of various regions
such as nations, provinces, regions, countries, climate and population etc.
a. Global Region: Although the North American company P&G operates in almost every region
of the world to a lesser extent or less. For example, it has a production plant for its product
"Head and Shoulders" in Latin America, Asia, Australia and Europe. But there are some regions
where they market their products even though they do not have a production plant.
b. Climate: Depending on the weather the P&G segments in its market. For example parts of
P&G its coffee market based on the temperature of various regions of the world. It focuses
mainly on its coffee markets such as "Millstone", "Home Coffee" in cold countries and
Scandinavia.
c. Population density: In terms of demographics P&G looks at its market segments. It has a
small marketing opportunity in the African region with fewer people than in the Asian part,
larger markets for consumer products. It does not even have a production plant for certain
products in Africa.
3. Psychographic Segmentation: Through psychographic separation P&G divides its consumers
and consumers into different groups according to social class, lifestyle, life cycle and personality
traits. But people in the same group of people may have very different mental makeup.

5
 a) Social class: Social class refers to the classification of people living in a society such as:
upper class, lower class and middle class. Here we see that, P&G has divided its products into
social categories.
For example, P&G introduced the popular name 'Olay' for skin care. Olay is all about beauty,
inside and out. It's about staying in concert regularly with a woman's needs, her needs, her
desires. But more than anything, it is about celebrating the unique beauty within all women,
because loving the skin in it is the most beautiful feeling. With eight product lines offering a
wide range of products, Olay covers the skin of all women and treats it like any other.
b) Lifestyle: People observe different lifestyles. Some lead a lavish lifestyle, some live an
extraordinary life, and some lead a normal life. These different lifestyles play an important role
in the market segmentation of P&G. P&G produces a variety of shaving tools such as' Gillette
Twin Blade ',' Gillette MP3 Power ', and' Gillette Fusion for a variety of lifestyles. It also
produces a market "Febreze" airfreshner that is widely used in a cool air chamber for people
living luxurious lives.

4. Behavioral Segmentation: Through ethical classification P&G classifies consumers into

groups based on their knowledge, attitudes, use, or responses to the product. The company's
traders believe that ethical dynamics are crucial to market segregation.

a) Time separation: P&G usually produces those products that are used in our daily lives. It
sometimes puts its focus on other selected products. In a variety of ways it often offers donations
such as "buy one and get one" or "buy it and get 20% more".
b) Benefit division: Benefit division means dividing the market into groups according to the
different bands in which consumers want the product. P&G has already found that people want
to get more benefits.

Targeted Segment Details

P&G's complete marketing strategy includes market direction, a tool to evaluate the components
a company has developed and select one or more categories. In selecting targeted markets P&G
uses the following strategies: -
Undifferentiated Marketing: Using this strategy P&G somehow ignores segmentation and
identifies the entire market with a single offer. This mass marketing strategy focuses on the
general needs of consumers rather than the alternative. For example, P&G manufactures and
sells 'Camay' means that soothing bar soaps are developed in French perfumes that leave your
skin feeling fresh, soft and supple. It does not show any part of a man or a woman, young or old.
The market has 'Head and Shoulders' an anti dandruff shampoo for users who want to get

6
dandruff free, to relieve from scalp dry and itch whether male or female users, with silky or curly
hair.
In using seamless marketing P&G faces obstacles. The difficulty arises from the design of a
product or product that will satisfy all consumers. For this reason it uses many other marketing
strategies i.e. segmented, niche marketing as well.

ii. Differentiated Marketing: Using a differentiated marketing strategy, P&G tries to identify
specific market segments and design each offer. P&G introduced several products in one product
category namely Hand Soap (Ivory, Safeguard, Zest, Olay, Old Spice), Shampoo (Pantene, Head
and Shoulders), Laundry detergent (Tide, Cheer, Bold, Dreft), Tissue and towels ( Charmin,
Bounty, Puffs) instead of focusing its resources on one leading genre. This is because different
people want different combinations of benefits from the products they buy. For example, people
use detergents to wash their clothes. But they want other things from their cleaning product such
as economy, bleaching power, a new fragrance fabric, strength or gentleness, just a few suds or a
few. For some people the ability to clean and apply coral is very important to others a very soft
cloth; while others want a new scented bath.
So there are categories of laundry buyers. P&G has developed a variety of laundry detergents to
identify each component to meet the specific needs of each individual. For example, 'Tide' is the
leading cleaner 'Cheer' color artist, 'Bold' is a fabric softener and sprayer, 'Ivory' offers the
benefits of small cleansing for pure hygiene.
Such products offered by P&G and marketing differences in segments lead to high sales volume.
But segregated marketing also increases the cost of doing business. The company finds it more
expensive to develop and produce different sub-units of the product sector than to produce larger
product units. Trying to reach different parts of the market with different advertising increases
the cost of promotion. For example, in the various dishwasher products such as Ivory, Dawn,
Joy, Cascade P&G should advertise separately.

iii. Concentrated and Micromarketing: The largest P&G in the global market with a wide
range of products and large market share almost ignores focused or small-scale marketing. You
don’t have a single product where you are deeply focused or trying to meet specific individual
needs. But it does have some products like Ivory Aloe with Ivory Lavender that create old
hygiene for older people (over 60) only. In fact the product is not to meet the need of each
individual but to meet the need of each component.

7
 Positioning Strategies Adopted

Another important strategy for P&G market segregation to have a different market position is to
place the market in the market .The product position in the area where the product resides
compared to competitors in the minds of consumers.
P&G markets remain and want to develop a different market position for their products if the
products are seen to be exactly the same as other markets that consumers rarely buy. The
company's markets organize positions that distinguish their products from other competitive
products. Living in a desirable and divisive environment in the P&G laundry market has
developed several products instead of one product each brand with unique features to meet
different combinations of different people’s benefits.
“Tide” has been designated as a powerful family medicine; "Ivory Snow" is set as a great cleaner
for baby and children's towels. Therefore in the laundry market P&G is not committed to any
type of product but rather seeks a position in the minds of consumers with different cleaning
products each with different features and thus fulfill the different needs and requirements of
different parts of customers.
By differentiating the market and having several cleaning products and a unique product with
different formulas, P&G has an attractive offer from the consumer to all key preference groups.
As a result it actually cleans up the U-market, S of 4 billion cleaning products. Tide itself
controls about 38 percent of the market share. All P&G cleaning products combined take up 60%
of the market share of U, S than its nearest rival “Unilever”
In prioritizing its products P&G prioritizes existing competitive advantages for position building.
Finding Advantage to compete with the company's pressure on product prices is as reasonable as
possible to offer more benefits of getting a higher price. P&G's product is therefore well-
balanced in terms of value and quality which gives the company a stronger competitive
advantage than its competitors.
In addition to charging reasonable price P&G's efforts to put its product on the market by
delivering the promised quality and high number of customers. In this emphasis P&G is on
continuous product development, maintaining consistency in product quality and above all
separating its products from others in the market.
P&G divides into product lines, services, channels, people and image. In the product lines we
have developed many different types of products in terms of brands such as price, quality and
durability, users etc. P&G has 3 pieces of cheap metal, and 'Gillette Twin Blade' low price etc. It
has 'Or-B' 'adult' toothbrush, 'Oral-B Kids' for children, 'Protect' antibacterial soap from users
regardless of gender, 'Oral' beauty soap for women of all ages, 'Satin Care' skin cleanser only
women etc. Such segregated product lines especially with specific features help consumers to
choose their products easily to meet the appropriate requirements in terms of price, quality,
gender etc.

8
As a result, people living in poverty or in rural areas or buyers of different countries where P&G
has few production facilities enjoy equally its products as other rights. And it is only possible
because of the wide range of activities of retailers and distributors.
In the event of segregation by hiring a skilled and trained P&G worker it will divide the global
environment into three regions-

 America.
 Europe, the Middle East and Africa.
 Asia Pacific / Australia.

In building human capacity and use in the workplace P&G runs a comprehensive training
program, motivational approach and a better management system. Finally, P&G emphasizes the
importance of image separation. P&G does it by promising the quality of certain products and
making the products right. For example "Cheer" color artist "Bold" is a Fuzz Removal "Era"
likes these simple statements about products give the core of its market standing and differentiate
the product from its competitors. P&G strives to create image recognition.

P&G in Maslow’s hierarchy of need

Maslow (1943, 1954) argued that people are motivated to meet certain needs and that some
needs are more important than others.

9
Our most basic need is physical survival, and this will be the first thing that motivates our
character. Once that level has been reached the next level at the top is what motivates us, and so
on.

Physiological needs - these are biological requirements for survival, e.g. air, food, drink,
shelter, clothing, warmth, sex, sleep.When these requirements are not met, the human body
cannot function properly. Maslow takes care of the most important physical needs as all other
needs become secondary until those needs are met.

Safety needs- When a person's physical needs are met, safety and security requirements are
taken into account. People want to feel the order, the prediction and the control in their lives.
These needs can be met by family and community (e.g. police, schools, business care and
treatment).

For example, emotional security, financial security (e.g. employment, social welfare), law and
order, freedom from fear, social stability, property, health and well-being (e.g. safety from injury
and injury).

Love and belongingness needs - once the physical and safety needs have been met, the third
level of human social needs also includes the feeling of membership. The need for interpersonal
relationships fosters morality

Examples include friendship, intimacy, trust, and acceptance, acceptance and giving love and
affection. Integration, being part of a group (family, friends, work).

Esteem needs are the fourth level in the Maslow management category - Maslow is divided into
two categories: (i) self-esteem (dignity, success, art, independence) and (ii) desire for recognition
or respect for others (eg status, fame).

Maslow pointed out that the need for respect or prestige is very important in children and
adolescence and precedes true self-esteem or dignity.

Self-actualization needs are at the highest level for Maslow management, and they lead to the
realization of personal competence, self-efficacy, the pursuit of personal growth and high
experience. Maslow (1943) describes this level as a desire to achieve all that a person can do, to
become what he or she can become most.
So, this company P&G falls under physiology and safety needs both.Like one of their product
TIDE or GILLET these are our basic products.If we want to wash our cloths we need tide same
as gillet,its usable for shaving that’s why p&g products falls under physiological needs.
Its also falls under safety needs.For example one of their product named OLAY.its a lotion.Its
usable for nourish our skin also for glowing skin,its protecting our skin that’s why its falls under
safety needs.

10