LOVELY PROFESSIONAL UNIVERSITY

ACADEMIC TASK NO. 2

Mittal School of Business (MSOB)

Name of the faculty member: Dr. Shamily Jaggi

Course Code: MKT201 Course Title: Essentials of Marketing
Academic Task No: 2 Academic Task Title: 4 Ps of Marketing
Date of Allotment: 05/09/2020 Date of Submission: 05/10/2020
Student Roll No: B41 Student Reg. No: 11900876
Term: Third term Section: Q1903
Max. Marks: 30 Marks. Obtained:
Evaluation Parameters:

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I declare that this Assignment is my individual work. I have not copied it from any other students’ 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
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P&G or Procter and Gamble, is a fortune 500 fast moving consumer goods multinational corporation
headquartered in Ohio, USA. With its acquisition of Gillet in 2005, P&G became the largest consumer product
company in the world. It is ranked in most admired companies of the world. It has a huge portfolio with 300
Brands under it. Procter and Gamble has a worldwide presence with its products sold in 160 countries and
operation in 80 countries. The company employs around 135000 people.

P&G is known worldwide for its quality and innovation. It offers the products under five major segments-
beauty, grooming, family and baby care, fabric and home care and health care segments. Some of the famous
brands of P&G are Head and Shoulder, Olay, Pampers, Gillet, Oral-B, Always, Bounty, Old Spice and Ariel.

The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation
headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a
wide range of personal health/consumer health, and personal care and hygiene products; these products are
organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby,
Feminine, & Family Care. Before the sale of Pringles to Kellogg's, its product portfolio also included foods,
snacks, and beverages. P&G is- incorporated in Ohio.

In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was streamlining the
company, dropping and selling off around 100 brands from its product portfolio in order to focus on the
remaining 65 brands, which produced 95% of the company's profits. A.G. Lafley —the company's chairman,
and CEO until October 31, 2015—said the future P&G would be "a much simpler, much less complex company
of leading brands that's easier to manage and operate"
 HISTORY:
William Procter, a candle maker, and James Gamble, a soap maker, Immigrants from England and Ireland
respectively who had settled, earlier in Cincinnati, who met as they both married sisters, Olivia and Elizabeth
Norris, formed the company initially.

Alexander Norris, their father-in law called a meeting in which he convinced his new sons-in-law to become
business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born.

In 1859, sales reached one million dollars. By this point, approximately eighty employees worked for Procter &
Gamble.

During the American Civil War, the company won contracts to supply the Union Army with soap and candles.
In addition to the increased profits experienced during the war, the military contracts introduced soldiers from
all over the country to Procter & Gamble's products.

The company moved into other countries, both in terms of manufacturing and product sales, becoming an
international corporation with its 1930 acquisition of the Newcastle upon Tyne based Thomas Hedley Co.

One of the most revolutionary products to come out on the market was the company's "Pampers", first test-
marketed in 1961.Prior to this point disposable diapers were not popular. Although Johnson & Johnson had
developed a product called "Chux". Babies always wore cloth diapers, which were leaky and labour intensive
to wash. Pampers simplified the diapering process

Procter & Gamble acquired a number of other companies that diversified its product line and increased profits
significantly. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals, Richardson-Vicks,
Noxell, Shelton’s Old Spice, Max Factor, and the same Company, among others. In 1994, the company made
headlines for big losses resulting from leveraged positions in interest rate derivatives, and subsequently sued

In 1996, Procter & Gamble again made headlines when the Food and Drug Administration approved a new
product developed by the company, Olestra. Also known by its brand name Olean, Olestra is a substitute for
fat in cooking potato chips and other snacks that during its development stages is known to have caused anal
leakage and gastro-intestinal difficulties in humans.

In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods company and
placing Unilever into second place. This added brands such as Gillette razors, Duracell, Braun, and Oral-B to
their stable.

P&G has agreed to sell its Spin Brush battery-operated electric toothbrush business to Church & Dwight. It also
divested Gillette's oral-care toothpaste line, Rembrandt.

P&G's dominance in many categories of consumer products makes its brand management decisions worthy of
study.
 Market Segmentation
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of
consumers who have common needs, and then designing and implementing strategies to target their needs
and desires using media channels and other touch-points that best allow to reach them.

Market segments allow companies to create product differentiation strategies to target them. Each brand
must be positioned for its target segment and a single Procter and Gamble brand cannot have one positioning
for all of P&G’s segments.

As of July 1, 2011, the company structure is categorized into two "Global Business Units" with each one further
divided into "Business Segments" according to the company's 2011 Annual Report. Dimitri Panayiotopoulos is
Vice Chairman of Global Business Units

• Baby Care: Pampers

• Fabric Care: Ariel, Tide

• Feminine Care: Whisper

• Grooming: Gillette

• Hair Care: Head & Shoulders, Herbal Essences, Pantene

• Home Care: Ambi Pur

• Oral Care: Oral-B

• Personal Health Care: Vicks

• Skin and Personal Care: Olay, Old Spice

Companies that make multiple products in multiple product categories are delivering quite different sets of
benefits to quite different target segments. As a result, they cannot create and support a single brand that can
hold multiple positions in the minds of different targets.

P&G’s main competitors such as Unilever, Colgate-Palmolive and Johnson & Johnson follow a similar multi-
brand strategy.
 Marketing Mix
The Procter & Gamble Company’s marketing mix (4Ps) is typical in the consumer goods industry. A firm’s
marketing mix or 4Ps (product, place, promotion and price) refer to the strategies and tactics used to achieve
goals in the marketing plan. In this case, Procter & Gamble has a marketing mix that utilizes various channels
to maximize market penetration. Market penetration is one of the company’s main growth strategies.
The global market presents challenges linked to the diversity of products and consumers. For example, P&G
must offer a wide variety of products that satisfy the preferences of numerous consumer types and market
segments.
Procter & Gamble’s marketing mix addresses such concerns to ensure high business performance.
Nonetheless, the consumer goods market is highly dynamic. This condition requires Procter & Gamble to
adapt its marketing mix to match the opportunities and challenges in the global market.

A multi-pronged marketing mix approach for the global distribution of consumer goods enables Procter &
Gamble to optimize its performance. However, the company’s approach remains typical in the industry. This
condition makes P&G vulnerable to the aggressive competitive strategies of other firms, such as Unilever.
Changes in strategies, especially in distributing products through online platforms, can make Procter &
Gamble’s marketing mix more effective.

Product Strategy of Procter and Gamble (P&G):

The product strategy and mix in Procter and Gamble (P&G) marketing strategy can be explained as follows:
P&G or Procter and Gamble is one of the leading FMCG companies in the world. P&G is a global leader offering
product offering in categories in beauty, grooming, personal care, healthcare etc. The wide range of product
portfolio in the marketing mix of P&G is as below:
Beauty: Skin and beauty care products of P&G are offered under this segment. The brands under this segment
are Olay, old spice, safeguard. P&G offers products such as shampoo and hair conditioner under the brand
names Pantene and Head & shoulders. P&G also targets niche segments by offering products like Olay Age
Defying.
Grooming: Product and Gamble offers shave care and appliances such as razors, pre and post shave in its
grooming segment. The products are sold under the brand name Gillette which holds a leading market
position in men grooming segment.
Health care: P&G offers oral care products under the brand Oral-B and personal health care products such as
Vicks. The products offered under oral-B are mainly toothbrushes and toothpastes
Fabric care and Home care: P&G offers fabric care products under the brands Ariel and Tide. The products
range from detergents, additives to fabric enhancers. Procter and Gamble also offers home care products such
as air fresheners under the brand ambi pur
Baby, feminine and family care: P&G offers baby care products such as diapers and baby wipes under the
brand pampers. It also offers feminine products under the Always which is known in India as whispers.
Price/Pricing Procter and Gamble (P&G):
P&G follows different pricing policy for different brands under it. The price of Procter and Gamble products
mostly depends on the quality of the product and its brand value. P&G uses three different pricing policy to
gain market share and generate revenue i.e. competitive pricing, penetrating pricing and premium pricing.

Price points, price ranges and price bases are determined in this element of the marketing mix. Procter &
Gamble applies prices that maximize revenues and profits. The company adjusts its prices according to the
conditions of the consumer goods market. The following pricing strategies are relevant to Procter & Gamble’s
business:

• Market-oriented pricing strategy

• Product bundle pricing strategy
• Premium pricing strategy

In the market-oriented pricing strategy, competitors’ prices and related pricing trends are used in determining
the prices of many of Procter & Gamble’s consumer goods. For example, this pricing strategy is applied for the
company’s Tide detergent products. On the other hand, the product-bundle pricing strategy implements
prices for groups or sets of products. For instance, Procter & Gamble uses this pricing strategy in sales to
businesses via P&G Professional.

This strategy is also occasionally applied for special offers that promote certain products via retail stores. The
premium pricing strategy sets prices that are relatively higher than the market average. Procter & Gamble
uses this strategy for some of its products, such as those under the Olay brand. Such strategy contributes to
maintaining perceived premium value for the company’s premium brands.

Based on this element of the marketing mix, Procter & Gamble has a multi-pronged approach to setting the
prices for its consumer goods.

The Brands whose sale is affected a lot by its competitors, a competitive pricing policy is followed as a part of
its marketing mix. If the competitor decreases its price then there are high chances that it would have an
effect on sale of the product and thus the product has to competitively priced.

When P&G enters the market or wants to create a new consumer’s base, it tries to capture market by
following penetrative pricing policy. P&G prices its products of similar quality that of competitors at a slightly
lower price to gain market share.

The brands also provide high quality products that are targeted at a segment that can afford these products.
P&G charges premium for these types of products. P&G doesn’t offer many discount and coupons on its
products instead spends extra on advertising.
Place & Distribution of Procter and Gamble (P&G):
Following is the distribution strategy of Procter and Gamble (P&G):

P&G has an efficient distribution system and thus is able to reach a larger consumer base. P&G products
reaches a wide audience through provision stores chemist shops, retail Outlets and super markets. DHL is the
courier service provider of P&G products that ensures logistical efficiency. The products are not only used by
consumers but are also consumed in large amounts by businesses such as hotels etc. There are authorized
dealers that caters to the needs of these business and provides them P&G products in large quantity.

The venues for transacting with target customers or consumers are determined in this element of the
marketing mix. The Procter & Gamble Company’s vision statement and mission statement require providing
products to consumers around the world, thereby guiding the company’s endeavours for this element of the
marketing mix. There are many entities involved in the distribution of the company’s consumer goods.
However, the following are the main places that Procter & Gamble uses:

• Retailers
• Authorized distributors
• P&G Shop

Distribution network of FMCG:-

Manufacturer Plant

C/F

Distributors

Retailers/ Shops

End Consumer

• P&G keeping broaden the market by slashing its no. of distributors down to one-tenth of its size.
• 85% of its sales come from the top 30 towns & its current volume did not justify a large distributor
network.
• P&G will now have one distributer who will operate like super stockist. Which help to replenish its
distributors more frequently and reduce their average stock level.
• P&G keep growing on ROI (Return on Investment) which resulted in each distributer trying to extend its
reach to push up volumes.
• With a limited number of distributers, P&G will also not need to invest in C&F agents.
• P & G follows wholesale format of distribution for Vicks. P&G is giving 6% margin to the distributor
Promotion & Advertising Procter and Gamble (P&G):
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).

• Advertising
• Direct marketing
• Sales promotion
• Personal selling
• Public relations
 SWAT Analysis
Strength:

• Leading Market Position

• Strong brand Image
• Strong customer Loyalty
• Diversified and innovative product Portfolio
• Strong Finances in past years

Weaknesses:
• Quality control Problem
• Decreased Revenues in their Northeast Asian Market
• Customer Concentration

Opportunities:
• Developing Markets
• Selling directly to customers
• Better product Experience
• Demographic trend across the word
Threats:
• Competitors i.e. substitute brands that have a cheaper price
• Rising cost of energy prices
• Economic Slowdown
• Vicks Banned in US market
• Increases cost of raw materials

Recommendations
• As we know this market is known as FMCG Market so there are many competitors in this time in the
market so P&G company were focused in this time and targets the middle-class segment for increasing
the sales as well as market shares
• Some products like Gillette is made by the company to target the higher segment of the market.
• In India HUL is the biggest competitor in FMCG market
• They can apply more offer to promote sale
 Bibliography
• economictimes.indiatimes.com
• en.wikipedia.org
• google.com
• in.pg.com/brands

Thank You