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UNIVERSITY OF PETROLIUM AND ENERGY STUDIES 3’C REPORT : MARKETING MANAGEMENT SHIVAM JAIN 1 1/11/2014 .

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Page 1: Main

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

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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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