P&G India : Gap in the product
portfolio?
Group 10 :
MBA20010 - Aravind.S
MBA20014 - Ashok B
MBA20248 - Arun Koshy Shaji
MBA20249 - Jayant M
MBA20250 - Mayuri Bhagwan Bhambire
MBA20305 - Vivek Jiji Varghese
MBA20330 - Nikhil Juneja
MBA20359 - Harsh Kadam
MBA20361 - Priyabrata Tarai
MBA20384 - Akshay Vishnu Kishore
 INRODUCTION
01 Case highlights

02 Project 2-3-4
Strategic targets of P&G operations

TABLE OF 03 Brand Launches and Distribution

CONTENTS Network

04 Pricing
Techniques and Strategies involved in product
Pricing

05 Positioning
Brand communication and appeal

Advertising
06 Brand exposure
 INTRODUCTION
The Procter & Gamble Company
(P&G) What does P&G sell?
An American multinational consumer goods Branded Consumer packed goods
corporation founded by William Procter and James
Gamble in 1837
Well known products and Brands
• Baby Care – Pampers
Global Operations • Fabric Care – Ariel, Tide
HQ - Cincinnati, Ohio
• Feminine Care – Whisper
• Grooming – Gillette
• Hair Care – head & shoulders, Pantene
• Home Care – Ambi Pur
• Oral Care – Oral-B
• Personal Health Care – Vicks
Started Indian • Skin Care – Olay, Old Spice
operations in 1985
 Case Synopsis
The case talks about the strategies adopted by P&G to
penetrate the market share of India.

It dwells on the competitive nature of the market in the 90s and

2000s timeline

Draws a comparison among the leading players in the market

such as HUL, Nirma and Ghari

Highlights the positioning of different brands in the market

Problem Statement
P&G’s penetration into the Indian market despite the existing
competitors. How P&G differed from the others and how can it
grow ?
 What is Project 2-3-4?
A strategy devised by P&G to increase their market share in India.

2 - Double the no.of Indians who used their products

3 - Triple the per capita spending by Indians
4 - Quadruple the net sales of its India operations

Why was it needed?

• To crack open the Indian Market by 2015
• Dominate the market in diverse categories
• Establish P&G as the leader in various segments
 Key Challenges

Failure of alliance with Godrej

Did not wish to launch new brands
which had a good distribution
network

Strong competition from Penetrate rural hinterlands

regional players and HUL

High price of Tide during its Not having a market share in the
initial days in the market high revenue segment
 HUL Distribution Network

1969 1997 2000

Launch of Rin bar STREAMLINE SHAKTI
Rin was launched in For rural markets that were inaccessible but To reach them HLL launched project
India with the iconic had high potential HUL launched a “Shakti” in 2000. HLL partnered with
lightning mnemonic. distribution model “Streamline” for them in poor illiterate women and offered them
1997. opportunities for micro enterprise

● Distribution process through modes like

bikes, rickshaw and bullock cart ● Partnered with SHGs
● Appoints Rural distributors(RD) ● Offering opportunities to micro-
● RD appoints Star Seller (wholesaler) enterpises
● Star Seller sells to distributor
Increasing Competition :
BRAND LAUNCHES & RE-LAUNCHES (20 th century)

1959 1969 1988 1991

HUL launches Nirma launched HUL launches P&G launches
Surf Wheel Ariel

Late 1990s 1999 1994 1992

HUL Re-launches P&G launches Ariel HUL launches HUL launches
Surf Ultra as Surf Power Compact & Rin Surf Ultra
Excel New Ariel Front O
Mat
Increasing Competition :
BRAND LAUNCHES & RE-LAUNCHES (2000s)

2000 2003 Early 2000s 2004

P&G launches HUL launches HUL launches P&G re-launches
Tide Surf Excel Wheel Active Tide
Quickwash

2009 2008 2005

P&G launches HUL re-launches HUL launches Surf
Tide Naturals Rin Matic Excel Matic
 SWOT ANALYSIS
STRENGTH
● Brand Image
● Strong focus on Research
& Development
● Distribution network
OPPORTUNITIES
● Penetration into rural &
emerging Indian markets
● Product Innovation
● Marketing Innovation
WEAKNESS
● Stagnant Growth
● Limited urban segment
product portfolio
THREATS
● Intense Competition
● Gap in the Product
Portfolio
 Pricing Technique
QUALITY
Low High

Economy pricing Penetration pricing

Low

● Low overheads, thin ● Low price to gain market

margins share
● Ex. Nirma ● Rin provided as cheap
PRICE

alternative to Surf

Skimming strategy Premium pricing

● Maximise profits before
High

arrival of competitors ● High price

● Surf excel matic for washing ● Competitive advantage
machine consumers exists (Ariel, Surf)
Pricing Strategy
Product Line Pricing -
● Having a different price for each product.
● Targeted different types of users from washing machines to those that prefer
more economical detergent.

Product mix depth within the detergent segments

-
HUL -
Total product line depth of 15 with 5 each for Surf,
Rin and Wheel
P&G - 2 -
P&G’s Product Lines consistency
Consistent - consumer goods that go through the
Total product line depth of 12 with 7 from Ariel and
same distribution channels.
5 in Tide.
Nirma -
Nirma has product line depth of 3
Positioning statements of detergent brands
A positioning statement is a concise description of your target market and expectation of
perception from that market.

Internal tool serving as a pivot for every product and marketing decision.

Here, we infer their positioning statements through what the taglines tries to convey.

Rin – “Duguni Safedi, Duguni Chamak.”

Launched in 1994 focusing on the mid- Surf- “Daag ache hain” umbrellas all the
segment. Direct competitor to Tide. variants. Targeting the premium category,
positioned themselves on ease of use, hard
Wheel Focuses on the sub-popular segment stain remover & cleanliness.
using fragrance as an important factor of
delight for Indian homemakers, leaning more
towards a clean and elegant wash.
 Positioning of P&G

● P&G holding a market share of 7.6%, with Ariel and Tide’s product
mix targeting across the pyramid

● Tide’s positioning targeting the mid-segment, focused on whiteness

and It’s taglines - “Chaunk gaye” & “Kya saboot hai” stands
testament to this.

● Tide Naturals focuses on fragrance, ease of usage, and targets the

BOP, with a large bar at cheap price

● Ariel - “Chamakh Rakhe Naye jaise”, focuses on cleanliness,

performance and quantity. Flagship brand of P&G targeting premium
segment. Direct competitor to HUL’s Surf.
Advertising spends of the
Brands

Nirma & Ghari

Ghari achieved market share of 13.7% while Nirma achieved HUL
market share of 13.1 %in year 2009 despite having Wheel brand achieved 20+ market share by
advertising spend of 1.8% & 5.4% respectively spending on advertising to focus on economy
Nirma and Ghari, being local players, were able to drive segment of market
their sales in economy segment by building their brand HUL increased its Ad spending on Rin
equity as low cost brands powder and Rin bar as it was competing with
TideAd spending on Rin advanced White was
stopped
P&G
Ad spending on Tide Plus was increased by P&G, its mid price segment.
P&G reduced its ad spending on its premium segment products like Ariel Spring clean as
it started to concentrate on the mid level segment
THANK YOU

CREDITS
Slidesgo
Freepik
https://www.hul.co.in/
https://in.pg.com/
https://www.nirma.co.in/
http://www.gharidetergent.com/