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3’C REPORT :
MARKETING MANAGEMENT
SHIVAM JAIN
11/11/2014
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CONTENTS
1. Proctor & Gamble : Introduction of company Finance status Market share Customers Products Area of operation Product Mix
2. Johnson & Johnson : Introduction of company Finance status Market share Customers Products Area of operation Product Mix
3. Amway : Introduction to company Finance status Market share Products Customers Area of operation Product Mix
4. Strategies : Pricing strategies Promotion strategies Distribution strategies
5. Conclusion :
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“PROCTER & GAMBLE“
Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United States, founded by William Procter and James Gamble, both from the United Kingdom. Its products include pet foods, cleaning agents, and personal care products.
Procter & Gamble Co. provides branded consumer packaged goods to its consumers around the world. Its products are sold primarily through mass merchandisers, grocery stores, membership club stores, drug stores, high frequency stores, and neighborhood stores which serve many consumers in developing markets. The company also intends to expand its presence in other channels, including department stores, perfumeries, pharmacies, salons and e-commerce. It operates through the following segments: Beauty, Grooming, Health Care, Fabric Care & Home Care and Baby Care & Family Care.
P&G operates under three entities in India - two listed entities “Procter & Gamble Hygiene and Health Care Limited” and ‘Gillette India Limited’, as well as one 100% subsidiary of the parent company in the U.S. called ‘Procter & Gamble Home Products’.
FINANCIAL STATUS REPORT:
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Total Revenue 20,792,000 19,018,000 20,559,000 22,655,000
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Cost of Revenue 10,552,000 9,919,000 10,601,000 11,366,000
Gross Profit 10,240,000 9,099,000 9,958,000 11,289,000
Operating Expenses
Research Development - - - -
Selling General and Administrative 6,327,000 5,972,000 6,500,000 6,706,000
Non Recurring 973,000 - - -
Others - - - -
Total Operating Expenses - - - -
Operating Income or Loss 2,940,000 3,127,000 3,458,000 4,583,000
Income from Continuing Operations
Total Other Income/Expenses Net 52,000 165,000 49,000 66,000
Earnings Before Interest And Taxes 2,992,000 3,292,000 3,507,000 4,649,000
Interest Expense 169,000 178,000 179,000 187,000
Income Before Tax 2,823,000 3,114,000 3,328,000 4,462,000
Income Tax Expense 820,000 572,000 692,000 972,000
Minority Interest (30,000) (41,000) (27,000) (44,000)
Net Income From Continuing Ops 2,003,000 2,643,000 2,609,000 3,416,000
Non-recurring Events
Discontinued Operations 17,000 78,000 - (18,000)
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - -
Net Income 1,990,000 2,579,000 2,609,000 3,428,000
Preferred Stock And Other Adjustments - - - -
Net Income Applicable To Common Shares 1,990,000 2,579,000 2,609,000 3,428,000
MARKET SHARE:
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PRODUCTS:Fabric & Home Care, Baby & Family Car, Beauty Care, Health Care, Deodorants, Beverages, Grooming And Other.
AREA OF OPERATION: Worldwide (over 180 countries)
CUSTOMERS: From Infants To Old Age People
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(PRODUCT MIX FOR PROCTER & GAMBLE)BEAUTY CARE
FOOD & BEVERAGES
HEALTH CARE
LAUNDRYCLEANING
PAPER
COSMETICS: Cover Girl Oil Of Olay
Fat free pringles
Sunny delight
Tender leaf tea
ORAL CARE: Crest Fixodent Gleem
DISH CARE Cascade Ivory Dish Joy
BABY DIAPERS: Luvs Pampers
DEODRANT: Old Spice Secret Sure
Pepto-Bismol
Hawain Punch
RESPIRATORY CARE: Vitamin c
drops Vaporabs Vicks 44
LAUNDARY: Bold Bounce Cheer
TISSUES & TOWELS: Bounty Puffs Royalle Charmin
SKINCARE: Safeguard Zest Camay Ivory
Sunny Delight
Millstone Olean
Nyquil HARDSURFACE CLEANERS: Comet Mr. Clean
HAIRCARE: Pantene Head &
Shoulders Vidal Sasoon
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“JOHNSON & JOHNSON“Caring for the world, one person at a time... inspires
And unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Employees of the Johnson & Johnson Family of Companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.
Our Family of Companies comprises:
The world’s sixth-largest consumer health company
The world’s largest and most diverse medical devices and diagnostics company
The world’s sixth-largest biologics company
And the world’s sixth-largest pharmaceuticals company
Selling makeup and vitamins to friends and family is a way of life at Amway International. One of the world's largest direct-sales businesses, Amway boasts more than 3 million independent consultants who sell its catalog of more than 450 personal care, household, nutrition, and cleaning products. It also sells the products and services of other companies in 80-plus markets worldwide. Revival-like techniques are used to motivate distributors (mostly part-timers) to sell products and find new recruits to build the multi-level marketing platform. Operations outside of the US generate about 80% of sales, mainly in Asia. Founder Richard DeVos and the Van Andel family own Amway and its parent company.
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FINANCIAL STATUS REPORT:
Period Ending 29-Jun-2014 30-Mar-2014 31-Dec-2013 29-Sep-2013
Total Revenue 19,495,000 18,115,000 18,355,000 17,575,000
Cost of Revenue 6,039,000 5,455,000 5,955,000 5,344,000
Gross Profit 13,456,000 12,660,000 12,400,000 12,231,000
Operating Expenses
Research Development 2,005,000 1,831,000 2,411,000 2,042,000
Selling General and Administrative 5,481,000 5,183,000 5,917,000 5,314,000
Non Recurring 4,000 18,000 338,000 178,000
Others - - - -
Total Operating Expenses - - - -
Operating Income or Loss 5,966,000 5,628,000 3,734,000 4,697,000
Income from Continuing Operations
Total Other Income/Expenses Net (212,000) (68,000) (850,000) (925,000)
Earnings Before Interest And Taxes 5,754,000 5,560,000 2,884,000 3,772,000
Interest Expense 128,000 136,000 134,000 105,000
Income Before Tax 5,626,000 5,424,000 2,750,000 3,667,000
Income Tax Expense 1,300,000 697,000 (769,000) 685,000
Minority Interest - - - -
Net Income From Continuing Ops 4,326,000 4,727,000 3,519,000 2,982,000
Non-recurring Events
Discontinued Operations - - - -
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - -
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Net Income 4,326,000 4,727,000 3,519,000 2,982,000
Preferred Stock And Other Adjustments - - - -
Net Income Applicable To Common Shares 4,326,000 4,727,000 3,519,000 2,982,000
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MARKET SHARE:
PRODUCTS: Baby Care, Women’s Health, Beauty, OTC, Oral & Wound Care, ASP, Cardiovascular Care.
AREA OF OPERATION: Worldwide
CUSTOMERS: From infant to old age peoples. Babies Are The Main Consumer. Pharmaceutical
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(PRODUCT MIX FOR JOHNSON & JOHNSON)
SKIN CARE ORAL CARE BABY & CHILD CARE
NUTRITIONAL SKIN & HAIR CARE
Cleansing wipes
Refreshing gel wash
Cleansing lotion
Skin oil Shower
gels Moisturise
hand creams
Body washes
LISTERINE: Antiseptic
mouthwash Anticavity
mouthrinse Ultra clean
floss Oral care strips Oral care mist Anticavity
fluoride rinse
Johnsons baby intense cream
Destin relief cream
Baby oil Baby
powder Baby
lotion
SPLENDA: Splenda
sweetener Splenda
sugar blend Splenda
flavored coffee
BENECOL: Benecol
spreads Benecol
smart chews
ROGAINE: Unscented
foam Strength
solution Topical
solutionCLEAN & CLEAR: Smoothing
facial scrub Absorbing
sheets
REMBRANDT: Rembrandt
whitening kit Whitening
mouthwash Stain strips
Lactic: Lacataid
eggnog Lactaid
ice-cream
Acne cleanser Mark
treatment Cleasing
facewash Action
moisturizer Intense stain
toothpaste Intense fresh
mint toothpaste
Lactaid supplements
Lactaid cottage cheese
NEUTROGENA: Gentle daily
cleanser Post shave
lotion
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AMWAY: Over 52 years ago, two men had a dream for a better life for their families. They built a company on principles, people and products that have touched millions of lives around the world.
Amway (short for American Way) is an American company using multi-level marketing techniques to sell a variety of products, primarily in the health, beauty, and home care markets. Amway was founded in 1959 by
Jay Van Andel and Richard DeVos. Based in Ada, Michigan, the company and family of companies under Alticor reported sales of USD$11.3 billion for the year ending on December 31, 2012—the
seventh consecutive year of growth for the company. Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance and
cosmetics. Amway conducts business through a number of affiliated companies in more than a hundred countries and territories around the
world. Amway was ranked No.114 among the largest global retailers by Deloitte in 2006, and No.25 among the largest private companies in the
U.S. by Forbes in 2012.
Amway combines direct selling with a multi-level marketing strategy. "Independent Business Owners" (IBOs) may market products directly to
potential customers and may also sponsor and mentor other people to become IBOs.
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FINANCIAL STATUS REPORT :
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MARKET SHARE:
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PRODUCTS:
Vitamins & Supplements, Skin care, Make-up, Hair care, Body care, And Oral care.
AREA OF OPERATION: Worldwide
CUSTOMERS: Richer Segment Of Class Womens Are The Main Consumer
BEAUTYCARE
FOOD & BEVERAGES
HOMECARE
NUTRITION & WELLNESS
BATH & BODY
MAKEUP: Cheeks sun
kissed luminous
Cheeks pink passion
Concealer deep dark
Concealer tan
BARS & SNACKS: Chocolate
nut roll Peanut
butter Mixed
berry smoothie
AIR & WATER: E-Spring
water purifier
Laundry Cleaning: SA8+
concentrated Detergent
BONE HEALTH: Cal mag D Vitamin
D3BRAIN HEALTH: Ocean health
HAIR CARE: Satinique
shampoos Satinique
cleansers
Concealer fair
Maskara mink
Maskara noir
BEVERAGES: Fruit punch Sugar free
orange
CANDLES & AIR FRESHNERS: Be gone
absorber Be gone air
freshner
ENERGY: Nutrilite
siberian energy
HEART HEALTH: Protein
powder Cholestrol
Health
BODY CARE: Body series
bar soap Body series
hand body lotion
MULTINUT-RIENTS:
Nutrilite mineral
Nutrilite vitamin
ORAL CARE: Glister
toothpaste Nature’s
gate natural toothpaste
(PRODUCT MIX FOR AMWAY)
PRICING STRATEGIES
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Pricing strategies of Proctor & Gamble: Competitive Pricing Product line pricing Cost plus pricing Optional feature pricing Attractive pricing Distribution pricing
Pricing strategies of Johnson & Johnson: The prices were setted up for their products to help in fulfilling their
commitment. Ensuring a fair return to their stakeholders. They work to keep their growth by hitting the sales in the world
through various kinds of promotions. By providing high quality of products to nurses, doctors, parents, and
patients with as minimum price drop as they can. Competitive rates were offered on various products depending upon
the needs and requirement of the consumer.
Pricing strategis of Amway: “USP” Unique Selling Proposition pricing Cutting down the production and delivery costs with the print-based
materials. Members of were provided a slots of discounts ranging from 25-30%
on all Amway products. Selling those getting 25-30% of retail bonus or incentive.
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PROMOTION STRATEGIES
Promotion strategy of Proctor & Gamble: All forms of advertisements. Amway relies on promotions through famous personalities like; Tim
Foley, Sandra Bullock, Ron Dayne Ronaldinho etc. Company has recently announced ad campaigns. By providing demos of their products in social streets. P&G is sponsoring more than 100 athletes. Various promotional offers. They have also launched “thank you, mom campaign”.
Promotion strategy of Johnson & Johnson:
Launched “Dubbed Cake Smash” campaign through Instagram. As to provide and share Interactive and Social expirience of infants first birthday.
Broader social & video campaigns through youtube. Educational Brochures. Johnson & Johnson has expanded around 2.810 billion on advertising
in 2006 to 2010(approx.). J&J promotes their baby care products by simply advertising their
products through images, commercials, and displaying images or videos of infants; targeting parents.
By reaching their global market through promotions and campaigns such as: “earthWords- Moving towards a healthy future” Promoting greener products development, Worksite health programme”
Various promotional offers.
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Promotional strategies of Amway: By offering special prices on monthly basis on several products. Amway give free samples to their corporate families and friends to
expose the market by converting them into IBO’S. Amway offers memberships for their patrons. Newsletter and Bulletins on monthly and yearly basis. Samples, coupons, money back, free gifts, demonstrations, two for
the price of one incentive techniques. Magazines, newspapers, and poster sites and many more. Amway Coaches Poll powered by USA TODAY Sports.
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DISTRIBUTION STRATEGIES
Distribution strategies of Proctor & Gamble: P&G broadens the market by slashing it’s no. of distributors down
to one tenth of it’s size. P&G keep growing on ROI(Return On Investment) which resulted
in each distributor trying to extend it’s reach to push up volumes. Within a limited number of distributers , P&G will also not need to
invest in C&F agents. P&G is giving 6% margins to distributors P&G is spending around 30-35% of its sales in advertisements &
promotions which is highest among others. MANUFACTURER
PLANT-C/F-DISTRIBUTOR-OUTLETS/SHOPS-END CONSUMER/USER.
Distribution strategies of Johnson & Johnson: J&J is positioning it’s new distribution channel to market for each
product like:1. Supermarket 2. Hypermarket3. Discount store 4. Corner shops5. Internet
J&J is positioning its distribution channel as a great alternative to door to door sales cookies, wrapping paper or candy.
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Over 100 distributors have signed the agreement none of the publicly traded medical distributors.
Johnson and Johnson products can be found at the following retail outlets: Target, Walgreens, Wal Mart, Vons and Eversave, to name but a few.
DISTRIBUTION CHANNEL: 1200 Dealers 15,000 Sub-dealers 49 Branches Numerous Franchisees 54 Modern Retail Outlets 39 Depots
Distribution strategies of AMWAY: AMWAY is supporting and providing direct selling in the digital age.
AMWAY is riding a GEN Y wave. Amway (short for the “American way”) is now one of the world’s
largest direct-selling businesses, with a global network of more than 3 million distributors in more than 100 countries.
URBAN Penetrations. Strategic locations of warehouses. Increase in wholesale chain in small towns so that they can achieve
their potential in combinations of people status.
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CONCLUSIONS
“As we are living in a high profile modern way of living, somehow this fact is unknown to most of us as middle or lower class people.”
As according to my report I must conclude that this also creates a big gap in products which we are using or others are forcing to use as big companies for all class of people.
As in this in have mentioned the top 3 major companies present in this scenario as Proctor &Gamble, Johnson & Johnson and Amway. All the companies has lot more comparasions to make between each other but according to me each is different from other on a minor change that may be quality or price or durability or class for which product is made so we can have a glance as : Amway is basically for high society personalities and that’s the main area they earn revenues from, while on other hand Johnson & Johnson is related mainly with baby care products in comparasions to other two companies in portfolio.
And at last proctor & gamble relates itself with every society of personalities whether it is for high class, middle class or the lower class. They all have to milestone positions after creating many vast strategies to stand in the market and attracting consumer to their products. Which help them to showcase themselves as a global business.
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