KHYATI SCHOOL OF BUSINESS ADMINISTRATION

(B.B.A.)
AHMEDABAD
AFFILIATED TO GUJARAT UNIVERSITY
A PROJECT REPORT ON

Vestige Marketing Pvt. Ltd

SUBMITTED TO
KHYATI SCHOOL OF BUSINESS ADMINISTRATION
(B.B.A.)

SUBMITTED BY
KARIYA MITEN HARISHBHAI
ROLL NO.: 19
GU. ENROL.NO.-202110101576(GU. SEAT NO.- _______)
BATCH OF YEAR – 2021-22
S.Y. B.B.A. – SEMESTER – IV

In partial fulfillment of the requirement of the award of the degreeof

Bachelor of Business Administration (BBA)

UNDER THE GUIDANCE OF

PROF. ASHOK CHANDRAVADIA

(April-2023)
DECLARATION OF STUDENT
 I undersigned, hereby declare that project work titled “Adetailed report on the company -
Vestige Marketing Pvt. Ltd. (P&G) is submitted in partial fulfillment for the award for the
degreeof Bachelor of Business Administration (BBA) of Gujarat University is a bonafide record of
work done by me under the guidance of Prof. Ashok Chnadravadia, atKhyati School of Business
Administration (BBA), Ahmedabad. The report has not previously formed the basis for the award
of any degree,diploma or similar title of any other College or University.

Kariya Miten Harishbhai

Course: BBA – Semester 4

College Roll No: 19
GU. Enrl. No.: 202110101576
GU. SEAT NO.-
Batch Year : 2021-22
 CERTIFICATE OF THE GUIDE

This is to certify that the project titled “Adetailed report on the company - Vestige Marketing
Pvt. Ltd. (P&G)” submitted in partial fulfilment for the award of Degree of Bachelor of Business
Administration (BBA) of Gujarat University is a bonafide record work done by MitenKariyaunder
my guidance at Khyati School of Business Administration (BBA), Ahmedabad. To the best of
my knowledge, this report is original and has not been submitted earlier for the award of any
degree, diploma or similar title of any other College or University.

PROF. ASHOK CHANDRAVADIA

Place: Ahmedabad Khyati School of Business Administration(BBA)

Date: ……………….. Palodiya, Ahmedabad
(Affiliated to Gujarat University)
ACKNOWLEDGMENT
I would like to thank my project guide Prof. Ashok Chandravadia at Khyati School of Business
Administration (B.B.A.), Ahmedabad for providing me all the encouragement and valuable inputs
to do the project work by organizing special sessions.

I would like to thank “Vestige Marketing Pvt. Ltd. (P&G)” for providing me and opportunity to
visit the premises and sharing necessary details to complete my project report. I am obliged to
Vestige Marketing Pvt.Ltd. for helping me understand various processes and policies at the
company which has enriched my report with valuable content.

Finally, I would like to express my gratitude to my parents, my seniors, my classmates and teachers
for their moral support and encouragement to help me complete this project work.

Kariya Miten
TABLE OF CONTENTS:

SNO. TOPIC NAME PAGE NO.

Section - 1
1 Company Profile 01
2 Finance 03
3 Social responsibility and future plan 04
Section – 2 Focus on Marketing
4 Products 06
5 Marketing Staff & Structure 09
6 STP 10
7 Branding Efforts 15
8 Stage of PLC 17
9 Product line and mix 20
10 Competitors and their strategies 25
11 Pricing policy 27
12 Marketing channels & distribution network 28
13 Promoting product 30
14 Developing new product 32
15 Marketing research activity 35
 SECTION - 1
COMPANY PROFILE

• NAME : PROCTER AND GAMBLE

• REGISTERED: Cincinnati, Ohio, united states

• HISTORY:

Candlemaker William Procter, born in England, and soap maker James gamble, born in
Ireland, both emigrated to us from the united Kingdome. They settled in Cincinnati, Ohio,
initially and met when they married sister Olivia and Elizabeth Norris, alexander Norris,
their father-in-law, persuaded them to become business partners, and in 1837 proctor and
gamble was created.

In 1858-1859, sales reached $1 million. By that point, above 80 employees worked for
Procter & gamble. During the American civil war, the company won contract to supply
the union army with soap and candles. In addition to the increased profits experienced
during the war, the military contract introduce soldier from all over the country to Procter
& gamble's product.

The company began to build factories in other location in the United States because the
demand for products had outgrown the capacity of the Cincinnati facilities. The
company's leaders began to diversify its product as well, and in 1911 began producing
Crisco, a shortening made of vegetable oils rather than animal fats.

 VISION : To be the best consumer product and services company

inthe word

 MISSION: To provide branded products and services of superior

quality andvalues that improve the lives of the
world's consumers, now and for generation to come.

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 PRODUCTS: Cleaning Agents, Skin Care, Personal Care

 ORGANISATION:
The multidivisional structure of P&G consists of
operating division, each representing a separate
business or profit center in which the top corporate
officers' delegates responsibilities for day-to-day
operations and business-unit strategy to division
managers.

• LOCATION : United States

• AWARDS :
 Best company compensation

 Best workplace culture awards of 2021

 Best company for diversity 2021

 Best company for women 2021

2
FINANCE
TURNOVER:
 Procter & Gamble annual revenue for 2022 was $80.2B, a5.35% increase from
2021.
 Procter & Gamble annual revenue for 2021 was $76.118B, a 7.28% increase from
2020.
 Procter & Gamble annual revenue for 2020 was $70.95B, a 4.83% increase
from 2019.

BALANCE SHEET:
Balance sheet as on 30th June, 2022.

3
SOCIAL RESPONSIBILITY AND FUTURE PLANS

There’s a world of good in here.

We want to make every day better for people in the communities we operate in.
We focus where we can uniquely bring value and where our brands and people can make
the biggest difference.

In India, we improve access to holistic education for underprivileged children

through our flagship CSR program ‘P&G Shiksha’. We also focus on providing
comfort to families in times of a disaster through donation of health and hygiene
products, monetary contributions and donation of P&G Purifier of Water.

• GENDER EQUALITY
Woman soccer player

Gender equality Icon

We See Equal

Many of our products are made uniquely for women and men. We have deep insights
into their lives, their challenges, and their aspirations. So when it comes to the gender
bias they face, it’s up to us to help change the narrative.

In 2017, we launched this gender equality campaign to show the world as we see it—
equal. It’s been viewed millions of times in more than 180 countries.

4
In 2005, P&G launched its signature CSR program ‘P&G Shiksha’ with an aim to
provide children from underprivileged backgrounds access to holistic education.

We focus our efforts in three main areas - improving education infrastructure, empowering
marginalized girls through education and improving learning outcomes.

Over the years, in partnership with NGO’s we have built and supported more than 2100
schools across India that will impact more than 1.7 million children.

PRODUCTS

BRANDS
Our brands icon
Iconic brands you can trust in your home

5
P&G products have made a name for themselves by combining “what’s needed” with
“what’s possible”—making laundry rooms, living rooms, bedrooms, kitchens, nurseries,
and bathrooms a little more enjoyable for over 181 years.
SECTION – 2

Baby Care
Pampers: Nappies, pants and baby wipes

Fabric Care

Ariel Tide
Laundry products Laundry products

Feminine Care

Whisper
Feminine care pads

6
Grooming
Gillette
Razor, blades and men's grooming

Hair & Care

World leaders in
Dandruff and scalp care

Home Care
Ambipur
Oduor eliminators

7
Oral Care
Oral-B
Toothbrushes, toothpaste, oral care

Personal Health Care

Vicks
Cough, cold and flu relief

Skin and Personal Care

Skin care Pre and Post Shave Lotion

8
 Body Wash & Deodrants

Marketing staff and structure

The simple structure is a structure in which the owner-manager makes all major
decisions and monitors all activities while the staff serves as an extension of the
manager’s supervisory authority.

Functional Structure
The functional structure is a structure consisting of a chief executive officer and a
limited corporate staff, with functional line managers in dominant organizational
areas, such as production, accounting, marketing, R&D, engineering, and human
resources.

Multidivisional structure
The multidivisional (M-form) structure consists of operating divisions, each
representing a separate business or profit center in which the top corporate officer
delegates responsibilities for day-to-day operations and business-unit strategy to
division managers.

9
MARKET SEGMENTATION, TARGETING AND POSITIONING

Like any other FMCG company, Procter & Gamble uses a mix of demographic, geographic and
psychographic segmentation variables.

Differentiation targeting strategy is used by P & G to make the specified product available to
the particular customer.

Product based and value-based positioning is used by P & G to create the right set
of imagery stimulus in the mind of the consumer.

Tagline- “Touching lives, improving life”

Market consists of numerous buyers and buyers differ in their wants, resources,
locations, buying attitudes and buying practices. Through the market segmentation
P&G divides its large, heterogeneous markets into smaller segments that can be reached
10
more efficiently and effective with products and services that match their unique needs.
This section focuses on P&G’s three important segmentation strategies.

• Consumer Market Segmentation

• Business Market Segmentation
• International Market Segmentation
• Consumer Market Segmentation:
There is no single way to segment a consumer market. P&G marketers have to try
different segmentation variables to find the best way to view the market structure. Major
variables used by P&G in segmenting its consumer markets can be illustrated as below.

1. Demographic Segmentation: P&G divides its market into groups based on

variables such as: -

I. Age: P&G produces its products on the basis of age such as ‘Crest’ a kind of
toothpaste for kids with different flavors such as Kids Crest Cavity Protection
Sparkle Fun. Another paste for adult is Crest Nature’s expression pro-health.

II. Sex: For male ‘Boss’ fragrance for male. For female ‘Naomi Campbell’. Naomi
Campbell is a true star. She is famous worldwide for her strong personality,
sensual beauty and glamorous lifestyle. NAOMI CAMPBELL perfumes capture
her multi-dimensional character to create expressive, feminine fragrances. Like
Naomi Campbell, her fragrance and packaging design will surprise the customers.
The prestigious detail will attract the customers.

III. Family size: For large and extended family they produce ”96-tissiues Puffs
Plus”. For small family they produce ”60-tissiues Puffs Plus”.

IV. Income: For affluent customer use” Gillette Fusion” with 5 blades. And for low
income leveled customer use” Mach3”.

V. Occupation: For a corporate executive use a low fragranced perfume on the

other hand, a model use high fragranced perfume.

11
 2. Geographic segmentation: Being a multinational company operating almost
worldwide with a wide variety of products. P&G divides its market into different
geographical units such as nations, states, regions, countries, climate & density of
population etc.

I. World region: Although a North American company P&G operates almost in

all regions of the world more or less. For example, it has manufacturing plant
for its product “Head and Shoulders” in Latin America, Asia, Australia and
Europe. But there are certain regions where it markets its products through
having no manufacturing plant.

II. Climate: Based on climate condition P&G segments its market. For example,
P&G segments its market of coffee based on temperature of different regions
of the world. It has hugely concentrated its coffee markets such as “Millstone”,
“Home coffee” in the cold and Scandinavian countries.

III. Density of population: Based on density of population P&G is considering its market
segments. It has fewer marketing opportunity in African region with very small population
rather than in the Asian part, a huge markets of consumer products. Even it has no
manufacturing plant of certain products in Africa.

3. Psychographic Segmentation: By psychographic segmentation P&G divides its

consumers and buyers into different individual groups based on social class, life style,
life cycle and personality characteristics. But people in a same demographic group can
have very different psychographic makeup.

I. social class: Social class means the classification of the people who live in the
society such as: upper class, lower class and middle class. Here we see that,
P&G segmented its products according to social class.
II. For example, P&G has introduced the famous brand ‘Olay’ for skin care.
Olay is about beauty, inside and out. It’s about keeping in constant concert
with a woman’s wants, her needs, her aspirations. But more than anything,
it’s about celebrating the unique beauty within every woman, because loving
the skin we’re in is the most beautiful feeling of all. With 8 product lines
offering a multitude of products, Olay embraces every woman’s skin and
cares for it like no other. Like this it has also introduced ‘Braun’, Cover
Girl, Camay etc. In the perspective of our country, we can say that, these
12
 kinds of products are not for the lower-class people. Moreover, it has some
brands of fragrance which are only for those people who are affluent.

III. Lifestyle: People maintain different lifestyles. Some leads luxurious life, some
lead casual life, again some lead ordinary life. These distinct lifestyles play an
important role in the market segmentation of P&G.
IV. P&G produces different shaving blade such as ‘Gillette Twin Blade’, ‘Gillette
MP3 Power’, and ‘Gillette Fusion for different life styles. It also manufactures and
markets “Febreze” an refresher highly usable in air-conditioned room for people
who lead a luxurious life.

V. Personality: P&G has used personality variables to segment market. For

example, P&G introduced a sort of decaffeinated coffee named ‘Millstone’ for
the late nighters to retain the energy during the whole night. And another flavor
named ‘Folgers’ for normal users.

4. Behavioral segmentation: By behavioral segmentation P&G divides the buyers

into groups based on their knowledge, attitudes, uses, or responses to a product. The
company marketers believe that behavior variables are very crucial in segmenting
markets.

a) Occasion segmentation: P&G generally produces those products which are used in
our daily life. Sometimes in some occasions it puts its concentration in some
selected products. In different types of occasions, it often provides offers like “buy
one and get one” or “buy it and get 20% extra”.

b) Benefit segmentation: Benefit segmentation means dividing the market into groups
according to the different bents that consumers seek from the product. P&G has
already found that people want to get several benefits from a product class and here
P&G has identified several different laundry detergent segments.

Each segment seeks a unique combination of benefits, from cleaning and bleaching to
economy, fabric softening, fresh smell, strength or mildness or only a few. Here
several brands of detergents and laundry are positioned for different segments as
follows: -Tide, Cheer, Downy, Bounce.
13
c) Other behavioral segmentations

Usage rate: P&G segmented their market into light user, medium user, and heavy user.
User status: P&G has already segmented their products into groups of ex-users,
potential users, first users and regular users.

14
BRANDING EFFORTS

INNOVATION IS THE LIFEBLOOD OF OUR COMPANY

At P&G, innovation isn’t just about making our products the best; it’s about
improving lives. Thinking innovatively across every area of the business has the
power to improve our world, lend a helping hand or spark a movement. It can also
lead to industry-changing ideas and technology such as collaborative robots, motion
sensors, Blockchain, 3D printing, augmented reality, voice recognition, and new
polymer developments.

We believe best ideas emerge from the creative connections that happen between our
talented employees. We encourage our multi-functional teams to work together to
come up with new ideas to address challenges we face. And we enable this through
creative frameworks and inspiring office spaces designed by specialized architects—
because a creative and dynamic work environment is key to bringing dynamic ideas
to life.

BUILD TECHNOLOGY THAT DISRUPTS THE INDUSTRY

Our innovations build brands, shape markets and improve products. Our multi-skilled
Gillette team combined consumer insight, technical expertise and precision
engineering to design, develop and launch a technologically-advanced razor that
swivels with the contours of the face to deliver a closer and smoother shave—and a
better consumer experience.

INNOVATE FROM END-TO-END

P&G teams work on exciting, technical projects from the beginning of their careers. This
could involve small developments or improvements. Or it could mean researching,
designing, building, testing, marketing, and launching a brand-new product. We work
creatively and technically from start to finish.

INNOVATE #LIKEAGIRL
Develop breakthrough marketing campaigns as a P&G brand builder. The
#LIKEAGIRL empowered girls worldwide and changed the way the term was used
from a negative to a positive.

15
SPARK SOLUTIONS THAT IMPACT THE WORLD
Our teams innovate everywhere, and each breakthrough we make improves people’s
lives. We’re committed to making the world a better place, and at P&G, you’ll be
empowered to do that from Day 1. Whether you work in a research lab, one of our
smart, connected manufacturing facilities, or somewhere else along the supply chain,
you’ll see your impact in the real world, right away.

16
PRODUCT LIFE CYCLE (PLC)

P&G’s Product Life Cycle (PLC):

• Weaknesses
An overview of the firm’s PLC will point to the fact that the company is currently in
its maturity stage. With a powerful introduction occurring in 1947 and the following
gradual growth occurring primarily in the 2000s, the firm has already established
most of its brands in the global market. Although the decline stage is yet to be
expected, a closer look at the current PLC of P&G will show that it has several
problems.

On the one hand, the focus on the R&D aspect of the company’s function can be viewed as a
positive phenomenon. However, the lack of enthusiasm for the design and introduction of new
brands is a problem. On the one hand, the entrepreneurship no longer needs active promotion as it
has already established a strong presence in the target environment. On the other hand, the lack of
focus on the design of new products may cause the entrepreneurship to be surpassed by other
companies that have enough potential to become dominant in the target environment (P&G names
top suppliers, 2008).

17
 • Product Design
The brand product that is bound to bring the company the popularity that it used to
enjoy should be created based on the idea of environmentalism and sustainability.
Given the significance of environmentalist ideas nowadays, target customers are
bound to pay close attention to the new product and the features that it includes.
Therefore, P&G should market its environmental awareness and the benefits that
natural elements-based products can offer to buyers.

• Strategies
To make the position of the entrepreneurship in the target market stronger, the
company leaders should consider putting a stronger emphasis on the R&D process.
Thus, new products that will take the customers by storm again can be designed.
Another idea that should be viewed as essential in the global economy, the emphasis
on the advertising and a strong promotion campaign may be viewed as an option.
Finally, it could be suggested that the firm should apply the concept of sustainability
and lean management to minimize waste and save a sufficient amount of money on
expanding into the global economy.

• Total Quality Management (TQM)

To improve P&G’s performance, one should consider the application of a TQM
framework. Particularly, the customer focus will have to be considered as the
primary aspect that P&G should pay attention to. Although the current customer
communication issues cannot be viewed as detrimental to the firm’s success, a better
understanding of the new clients’ needs should be promoted as the tool for increasing
the profit margins of the entrepreneurship.

• Customer Focus
A more detailed analysis of the target customers will have to be carried out. For
instance, an elaborate customer segmentation should be viewed as an option. Apart
from focusing on gender and age, it will be necessary to target people of different
cultures. Moreover, people of different incomes will have to be considered. To be
more exact, the line of luxurious products should be introduced to the market along
with its cheaper substitutes and the “golden mean” for people of an average income.

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 • Planning
The planning process, in its turn, will have to include a more efficient time
management approach. Also, customer-focused values will have to be adopted to plan
the company’s further course of action.

• Process Management
The production process, as well as the rest of the actions carried out in the environment of
the company, will have to be supervised carefully, with regular reports concerning the
efficacy of the participants. As a result, a rapid increase in quality can be expected.

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PRODUCT LINE AND MIX

Product Mix: -

A product mix is the set of all the products offered for sale by a company. The
structure of product mix has width, depth, length and consistency. or

Product mix can be defined as: -

“Product mix is defined as, the set of all product lines and items that a particular
seller offers for sale to buyers.”

The product mix is also known as product assortment. Or factors influencing

change in product mix

• Width: -
The width of the product mix refers to how many product lines the company carries.
For Example: -
Proctor & Gamble markets a fairly wide product mix consisting of many product lines
including food, household, cleaning, mechanical, cosmetics and personal care products

• Depth: -
The depth of the product mix refers to how many varieties are offered of each
product in the line.

For example: -
P&G Crest tooth paste comes in three sizes and two formulations (past, gel)

• Length: -
The length of the product mix refers to the total number of items in its
product mix. For example:

20
P&G typically carries many brands within each line It sells eight laundry
detergents, six hand soaps, six shampoos, & four dish washing detergents.

• Consistency: -
The consistency of the product mix refers to how closely relate the various
product lines are in end-use, production requirements, distribution channels
or in some other way. For example: -

P&G product lines are consistent insofar as they are consumer products that go
through the same distribution channels. The lines are less consistent insofar
they provide different functions for buyers.

These four dimensions of the product mix provide the handles for defining the
company’s product strategy. The company can adopt product lines, thus widening its
product mix.

Major Product-Mix Strategy: -

Manufacturers we several major strategies in managing their product mix.

1) Expansion of product mix: -

A firm may decide to expand its present mix by increase the number of lines or the
depth within the lines. Now lines may be related or unrelated to the present
products. The company may also increase the number of items in its product mix.

2) Contraction of product mix: -

Another product strategy is to thin out the product mix, either by eliminating entire
line or by simplifying the assortment with in a line. The shift from fat and long lines
to thin and short lines, is designed to eliminate low-profit products and to get more
profit from fewer products. There are many examples of product mix contraction,
sometimes involving will known firms. For example, Unilever, and English, Dutch
21
firm decided to produce more than 1000 brands from its total set of about 1600. The
company wants to concentrate its marketing resources on the 400 or so remaining
brands including Lipton teas, Lever soap that generate 90% of annual revenues.

3) Alteration of existing product: -

In spite of developing a complete new product, management should take a
fresh look at the company’s existing products. Often, improving and
established product can be more profitable and less risky than developing a
completely new one.

For material goods, especially, redesigning is often the key to products, renaissance
packaging has been a very popular area for product alteration, particularly in
consumer products.

4) Positioning the product: -

Positioning of product in the market is a major determinant of company profits. A
product position is the image that the product projects in relation to competitive
product and to other products marketed by the same company.

Marketing executives can choose from a variety of positioning strategies. These

strategies can be grouped into following six categories:

1). Positioning in relation to a competitor: - Position is directly against the competition.

2). positioning by product attribute: - The company associates its product with some product
features.
3). positioning by price and quality: - To position on high price, high quality or low-price, low-
quality basis.
4). Positioning in relation to product use.
5). Positioning in relation to a target market: - (Market Segmentation)
6). Positioning in relation to product class: - (Associating the Product) a class of product
22
5) Trading up & trading down: - As product strategies, trading up and trading down involves,
essentially, an expansion of the product line and a change in product positioning.

Trading up means adding a higher priced prestige product to a line in the hope of
increasing the sales of existing lower priced products. When a company going
on a policy of trading up, at least two ways are open with respect to promotional
emphasis.

(1) The seller may continue to depends upon the older, lower-priced product for the
bulk of the sales volume and promote it heavily or

(2) The seller may gradually, promote the new product and expect it to share a major
sale

Volume.
A company is said to be trading down when it adds a lower priced item to its line of
prestigeproducts. The company wants to sale its products rapidly.

Product Line
A product line includes a group closely related products that are
considered a unitbecause of marketing, technical or end-use
consideration.Definition: -

A broad group of products intended for essentially similar uses and possessing
reasonablysimilar physical characteristics, constitutes a product line. Or

“A product line is defined as” A product line is a group of products that are closely related,
eitherbecause

(1) They function in a similar manner.

(2). Sold to the same customer groups
(3). Marketed through the same type of outlets,
(4). Fall within a given price ranges.

23
Clothing is an example of product line. But in a different context, say in a small
specialtyshop, men’s furnishings (shirts, ties and under wears) and men’s ready-to-
wear (suits, jackets,topcoats and stocks) would each constitute a line.

There are product line managers for refrigerators, stoves and washing machines.
Product line decisions, management and responsibilities: -
Product line decisions are concerned with the combination of the individual products
offeredwithin a given line. The product line manager supervises several product
managers who areresponsible for the individual products and the line. Decisions about
a product line are usuallyincorporated into a marketing plan at the divisional level.
Such a plan specifies changes in theproduct lines and allocation to the products in
each line. Generally, product line managers havethe following responsibilities;

1. Considering expansion of a given product line

2. Considering candidates for deletion from the product line
3. Evaluating the effects of the product addition and deletions on the profitability on theother items
in the line.

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COMPETITORS

Who Are P&G's Main Competitors?

As a whole, Procter & Gamble is undoubtedly one of the biggest consumer goods names around.
But there are a number of different companies that aim to chip away at its segments
individually. Notably, along with the big names noted below, Procter & Gamble also
competes with countless smaller companies in the international segments in which it reports
revenue.

Fabric and Home Care

This is the company's top-selling business segment, representing 33% of its net sales
in 2019 with names like Tide, Bounce, Downy,
and Febreeze.6 Procter & Gamble's major competitors in this segment include brand
names like Palmolive, Ajax, and Fleecy from Colgate-Palmolive, Surf and Persil
from Unilever, and Oxi Clean and the Arm & Hammer product line from Church and
Dwight Co.

Family Care
In the baby, feminine, and family care segment, major competitors include Colgate-
Palmolive— with brand names like Tender Care Unilever's Zwitsal, and Church and
Dwight Co.'s Viviscal and Rephrase. This segment accounted for 27% of Procter &
Gamble's 2019 net sales with brands like Luvs, Bounty, and Charmin.6

Beauty
P&G's beauty segment represented 19% of the company's net sales for the 2019 fiscal
year.6 Avon is a major competitor to Procter & Gamble and is known as one of the
world's largest direct-selling beauty, household, and personal care companies. The
company uses salespeople often referred to as Avon Ladies—brochures, and mailouts
to advertise and sell its products.
25
Other names in the beauty industry that rival P&G include Colgate-Palmolive, Estee
Lauder, Revlon, and Unilever.

Healthcare
This segment accounted for 12% of net sales in 2019.6 You'll probably recognize
popular names like Vicks, PeptoBismol, and Prilosec. But there are plenty of other
companies that give P&G a run for its money. Major competitors like Colgate-
Palmolive, Church and Dwight Co., Ecolab, Stepan Company, and United-Guardian.

Grooming
Gillette is the dominant market player in the grooming segment. This segment
accounted for 9% of Procter & Gamble's net sales in 2019.6 But Bic is one of its
major competitors with a large international presence. This segment has also seen a
rise in startups notably, in the shaving space with names like Dollar Shave Club (now
owned by Unilever). P&G purchased subscriptionbased grooming company Billion
of the first for women in January 2020 for an undisclosed amount.

26
PRICING POLICY

Canadian supermarket chains are reacting cautiously to rumblings Procter & Gamble is
preparing to introduce an ‘everyday-low-price’ policy on some of its brands.
Such a move would represent a sharp break with the traditional feature, or ‘high-low,’
pricing strategies Canadian manufacturers and retailers have worked together on to
develop over the course of several decades.

Canadian p&g officials declined to comment on the company’s pricing strategy.

But it is well-known that in the u.s., where high-low pricing is also standard industry
practice, p&g, last year, began initiating Everday low pricing on a variety of brands,
including such core brands as Luvs and Pampers.

p&g contends stable pricing is good for brand image, and industry watchers here
predict it will be only a matter of time before p&g’s Canadian division adopts the
same approach.

Most Canadian supermarkets, including Food City, Loblaws, a&p and Miracle Food
Mart, are known as high-low retailers.

Typically, they rely on short-lived price promotions on selected products in order to

attract customer traffic.
In Canada, The Price Club and Loeb are the primary chains operating on an everyday low-
price strategy.
In the u.s., everyday low-price chains, such as Wal-Mart Stores, are more common.

High-low retailer promotions are largely funded by the manufacturers, which agree to
periodically sell goods to the retailer at less than the normal cost, so the retailer can,
in turn, sell the goods to consumers at an advertised discount.
Tim Carter, director of public affairs for The Oshawa Group, which owns Food City,
Food Chopper and part of the Iga chain, points out that manufacturers gain from
high-low pricing because, in return for the periodic price cuts, retailers put together
packaged promotions that shine a spotlight on particular brands.

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MARKETING CHENNELS AND DISTRIBUTION NETWORK

Why does the P&G Company use the distribution channels?

There is a saying, “No one is an island,” P&G effectively uses the channels of
distribution to run its operations, and it established powerful distribution network,
which includes manufacturing firms, distributors, retailers, consumers, and so on.
These channel members are able to make a marketplace more cost-effective and
efficient (Iacobucci 2013, p. 127). Hence, the products of P&G are distributed
intensively and widely. They are sold in many kinds of stores, such as supermarkets,
convenience stores and discount stores, etc. It is an extensive distribution system.
Moreover, as fast-moving consumer goods are regard as low-cost items so that they
are typically purchased impulsively and frequently. Hence, the products need to be
widely available to customers in order to stimulate sales. Also, P&G Company
focused on offering consumer packaged goods (CPGs), which are relatively
inexpensive and replaced frequently (The Procter & Gamble Company SWOT
Analysis, 2015). Accordingly, to make big bucks, the company require extensive
distribution to obtain big sales volume. In addition, given that the products are
relatively small and easily transported, thus they are easy to box up a great number of
units to many different channel intermediaries. Furthermore, as the products are
simple and no sales force, the company employed direct advertising to the customers.
As a result, P&G Company effectively make access easier for customer by the
Intensive distribution, and its channel design is consistent with all the other
marketing strategy, just as the products generally goes with heavy promotion and
relatively low price.

How does the P&G Company manage conflict in channel relationships and how to design a
smart distribution system?

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Given the globally interconnected world, the network of channel are amorphous as
well as complex. The existence of conflict in channel relationships is objective. In
order to avoid the impact of double marginalization to maximize profitability. P&G
Company use its absolute control power to design more effective distribution
channels. It streamlines the number of distributors so that making the distributors is
more stable and competitive. Moreover, P&G Company is investing in a more agile
and faster distribution network to optimize inventory and reduce out-of-stocks.
Furthermore, P&G Company understands consumer behavior by marketing research,
it reasonably allocates resources across channel options, and it is also investing in its
sales force to establish more profitable distribution system (Annual Report of P&G,
2015). Additionally, P&G Company has built an official online trading platform to
offer a direct touch point for customers, it is handy for consumers, and it is not only
helpful for allowing the products to reach distant parts of the world, but also
beneficial to provide customers with the option of worldwide vendors.

PROMOTION PRODUCTS

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Procter and Gamble (P&G) Promotion & Advertising Strategy:

The promotional and advertising strategy in the Procter and Gamble (P&G) marketing
strategy is as follows:

P&G promotes its brands and products through various means such as Advertising,
Direct Marketing, Public relations and personal selling. Procter and Gamble uses
TVC, print and online media to promote the brand through advertisements. P&G also
uses celebrity endorsements for the advertisements. It has capitalized on internet
marketing by launching its own website and where a consumer can find information
about the product and purchase the product. The company uses direct marketing to
sell its products to its corporate consumers. Personal selling is applied when a new
brand or a new product of an existing brand enters the market. P&G gives
sponsorships for various TV shows and events under its public relations activities.
This completes the marketing mix of P&G (Procter and Gamble).

P&G last year introduced a new media model that shifted more of its marketing work
in-house, giving it greater control and flexibility in media planning, digital buying and
investments in programmatic. P&G held a round of internal bids for some parts of its
media business rather than running a traditional formal review. Included in the process
were incumbent shops Hearts & Science and Carat, along with P&G's in-house team,
which bid on seven categories across P&G's North American business, including fabric
care, oral care, feminine care, personal health care, home care, skincare and baby care.

The CFO's comments also suggested that, across the CPG category, promotional sales
are down as brands focus more on building their brands through marketing that
engages consumers and underscores the value of the brands.

P&G is among the packaged goods companies that are testing consumer willingness
to pay more money for big-name brands as the economy expands and wages rise at
the fastest pace in the past 10 years. Kimberly-Clark, the maker of Huggies diapers
and Cottonelle toilet paper, and Unilever, which sells Dove soap and Hellmann’s
mayonnaise, also reported sales gains that were driven by higher prices, The Wall
Street Journal reported. By passing more costs onto the consumers, brands are
showing greater confidence after years of being reluctant to raise prices during a
weak economic recovery. Brands also faced pressure from lower-priced store brands
and online competitors.

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Looking ahead, P&G forecasts a more difficult operating environment in the next
fiscal year that begins in July. Rising transportation and materials costs will test the
company’s ability to raise prices much more to preserve profit margins. Private-label
and smaller brands are holding their prices steady, which will make them more
formidable competitors, Kimberly-Clark CEO Michael Hsu said this week in a
conference call. Walmart, the world's biggest retailer, and Amazon, the largest e-
commerce company, in the past year have ramped up their private-label offerings to
boost sales margins while undercutting the prices of big-name brands, Pymnts.com
reported

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DEVELOPING NEW PRODUCT

New at CES 2020 is Oral-B iO, a power toothbrush series that P&G said is “unlike
any other.” Oral-B iO is one of this year’s CES Innovation Award honorees.
The Oral-B iO features a linear magnetic drive system that delivers power to the tips
of the bristles, allowing the brush to glide tooth by tooth for a smooth and quiet
cleaning experience. Among its design features: a bimodal Smart Pressure Sensor, an
innovation that P&G said is the first of its kind to provide positive brushing
feedback, identifying and guiding users to brush in the optimal pressure range with a
variable-speed smart drive that adjusts frequency; an interactive display that allows
you to change brushing modes (there’s seven); and an app with artificial intelligence
brushing recognition technology that guides customers through a twominute brushing
session with 3-D tracking.
Oral-B iO is “a new era in brushing and is a monumental leap in innovative oral care
technology,” said Steve Bishop, P&G Health Care CEO. “There is nothing like Oral-
B iO,” he added. The company doubled down on that claim, calling it the most
revolutionary technology in its history. It’s the culmination of more than six years of

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product research and development, with over 250 patents from around the world and
input from more than 1,800 consumers.

At the Charmin “Golab,” as it’s called, CES attendees will find fun, futuristic
innovation – and, of course, plenty of potty puns.
One highlight is the Charmin Roll Bot, a first-of-its-kind robot that, when controlled
with a smartphone using Bluetooth, can deliver a fresh roll of toilet paper so you never
run out. Its futuristic design uses self-balancing technology to give it a more bear-
Morpheus look, said P&G.
Then there’s Smell Sense, an electronic sensor monitoring system for your bathroom
calibrated to detect the carbon dioxide or hydrogen sulfide “found in a ‘toot’ or
‘two.’” Smell Sense notifies you via a display (with a NO or GO) on the status of the
stench, so you know when it’s safe to enter.
Also look for “AR V.I.Pee,” a premium porta-potty experience enhanced with an
Oculus Rift S virtual reality headset, that will transport a concert or event “go-er” to
the front row, so you’ll “never miss a beat while on the seat.” The V.I.Pee
“Installation” will have a single performance at the Charmin Golab.

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And finally, a product born from P&G Ventures, the company’s internal early-
stage startup studio: Opet, which P&G said is one of its “biggest advancements
in skincare in 200 years.”

The handheld device took 10 years to develop with 13 patents. It uses certified LED
lights, an integrated digital camera, precise color algorithm and a micro printer with 120
thermal ink-jet nozzles to scan, detect and correct hyper-pigmentation while dispensing a
custom blend of serum one billionth of a liter at a time.

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MARKETING RESEARCH ACTIVITIES

Procter & Gamble, the consumer goods giant, is evolving its approach to marketing
research in a bid to more fully understand changing behavior.

As tools like smart sensors become more sophisticated, brands can reduce their
reliance on selfreported data. Operating at higher speed is fundamental for
researchers, as enterprises are working at a faster rate, and demand insights with a
more rapid turnaround time. A do-ityourself ethos is prompting researchers to take
more control of insights-gathering efforts, rather than depending on vendors to
conduct initiatives for them.
At Procter & Gamble, the future of marketing research could well begin with the
washing machine.

The owner of brands like Tide and Cheer detergent, as well as Gain and Bounce dryer
sheets, has long been an expert in studying consumer behavior in the laundry room. But
as new technologies for generating insights emerge, the ways of understanding how
people wash and dry their clothes are changing.

“We used to do a lot of habits and practices studies – big surveys, very often, [and]
diary-style type of things,” Michael Lancor, Procter & Gamble’s director/consumer
fundamentals and insights, explained at The Market Research Event (TMRE) 2018, an
event convened by KNect365.

But as digitally-connected appliances, smart sensors, and other innovative tools grow
in popularity and sophistication, self-reported information can be complemented (and,
as appropriate, replaced by) indisputable behavioral statistics.

“Why do a laundry diary study when you can put a device on somebody’s washer and
dryer that tells you exactly when they’re doing laundry, how many loads, what type of
loads, etc?” asked Lancor. “I can guarantee you that [this new] data is wildly better than
anything that they were telling us in any survey that we were doing before.

35
Marketing
“If you look at … [how] we’ve changed our market budgets, and what type of advertising
we’re doing, we’ve moved an incredible number of media dollars out of traditional media
very, very quickly,” said Lancor.
One indicator of this process, he suggested, is the move towards “pull marketing,” where
brands interrupt experiences less and, instead, create relevant, engaging content and
experiences that actively attract consumers. A case in point is Procter’s SK-II, the
premium skincare line, “where they’re doing that almost exclusively” – such as by
actively challenging gender stereotypes.

Business Models
“At P&G, we’re seeing that, across our businesses, if you look at our time … from
idea to [reaching the] market, it’s dropping dramatically probably, already, half the
time of what it used to be, and I think on the way to being much, much faster than
that, as well,” Lancor said.
“In addition to that, we’ve also started giving ourselves permission to explore different
types of business models that we weren’t necessarily doing before.”
For instance, P&G is “looking at service models in some of our laundry business”.
Earlier this year, in fact, it bought Press box, a Chicago-based startup disrupting the
dry-cleaning space. Customers using this service put dirty clothes in a locker, have
them cleaned, then pick them up, tracking the entire progress with an app. This service
has since been combined with a similar offering from Tide in the Windy City

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SOCIAL RESPONSIBILITY OF MARKETING

At P&G, we serve nearly five billion people around the world with our brands. We
have operations in nearly 70 countries and have one of the strongest portfolios of
trusted, quality and leadership brands. As we serve the world's consumers, we
believe in, and have publicly committed to, doing what's right and being a good
corporate citizen. Our Purpose, Values and Principles
Our Purpose, Values and Principles (PVPs) are the foundation of who we are. Our
Purpose is to improve consumers' lives in small but meaningful ways, and it inspires
our people to make a positive contribution every day. Our Values of Integrity,
Leadership, Ownership, Passion for Winning and Trust shape how we work with each
other and with our partners. And our principles articulate our deliberate approach to
conducting work every day. We know that P&G employees believe in the personal
and business value of this PVP foundation — our PVPs are consistently cited in our
annual employee survey as the number one aspect of our culture that employees
would not change. Our philosophy is that a reputation of trust and integrity is built
over time, is earned every day and provides lasting value for our stakeholders.

Good governance
Our PVPs further inform our approach to corporate governance. We believe that
strong governance practices contribute to better results for shareholders. We maintain
governance principles, policies and practices that support Board and management
accountability and serve the best interests of our Company, our shareholders and our
many stakeholders.

Respecting Human Rights

Respect for Human Rights is fundamental to the way we manage our business. Our
Human Rights Policy Statement communicates our support for the UN Guiding
Principles on Business and Human Rights, which respects and honors the principles
of internationally recognized human rights consisting of those rights expressed in the
International Bill of Human Rights (i.e., Universal Declaration of Human Rights and
the International Covenants on Economic, Social and Cultural Rights, and Civil and
Political Rights) and the principles concerning fundamental rights as set out in the
International Labor Organization (ILO) Declaration on Fundamental Principles and
Rights at Work.

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REFERENCES

https://in.pg.com/

https://www.pgcareers.com/

https://en.m.wikipedia.org

https://www.investopedia.com

https://m.economictimes.com

https://www.bseindia.com

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