Team Members

Karishma Amarnani (34)

Mohak Joshi (43)

Zil Shah (81)

Omkar Naik (87)

Sandeep Patil (90)

Agenda

• Industry Snapshot

• History

• Introduction

• Vision & Mission

• SWOT

• Marketing Strategies

• Product Failure & Recommendations

• Key Takeaways

Industry Snapshot

The Indian FMCG sector is the fourth largest in the economy

Low per capita consumption as well as low penetration level, but potential for

growth is huge

Strong and competitive MNC presence across the entire value chain

According to the study conducted by AC Nielsen, 62 of the top 100 brands are

owned by MNCs, and the balance by Indian companies

FMCG sector comprises of Personal Care, Food & Beverages & Household Care

Key players include P&G, HUL, ITC, Marico, Godrej, Dabur, Nestle, Cadbury

Industry Snapshot

HistoryAn American multinational, founded in 1837 by

William Proctor and James Gamble

They began by supplying the Union Army with

soap and candles

Products include pet foods, cleaning agents, health

care and personal care products

Chairman, President & CEO: AG Lafley

In 2014, P&G recorded $83.1 billion in sales

Nearly 300 brands in more than 160 countries

Worldwide workforce of 135,000

140 plants and 25 R&D centers globally. Spend

nearly $ 2 billion a year on R&D

Products

Vision: Be, and be recognized as, the best consumer products and services company in the world

Mission: “We will provide branded products and services of superior quality and value that improve the lives of the worlds consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.”

Vision & Mission

Strong focus on Research and development

Leading market position

Expansion in developing

markets

Mergers and acquisitions to strengthen

the brand

Regulatory Environment

market

Increasing instances of product recalls

Global Economic Conditions

Diversified product portfolio

Strong brand portfolio

Dependent on Wal-Mart Stores for

majority of its revenue

Counterfeit goods

Large size and market

valuation

Weak presence on online

platforms

Intense competition

SWOT

Competitive landscape (Market Share)

46%24%

10%

6%

Revenues: Shampoo (India)

35%

16%17%

8%

24%

Revenues: Detergents (India)

Others

60%

18%

6%

Revenues: Shaving - Men (Global)

Competitive landscape

Marketing Strategy

Improve through products

Improve through

production

Focus on Advertising &

Branding

Market research & Consumer

insight

Go-to-market strategies

Delight the customer with sustainable innovations

Offers products for different segments. Often adopts market “Skimming” approach

Improve operations & production methodologies

Benefits through economies of scale

Leading Brands

Using successful movie stars in Advertising

High investments in market research

Industry-leading go-to-market capabilities

Product Failure & turnaroundP&G launched an innovative water purification powder under the

brand name “Pur” in 2000 that can decontaminate water by stirring it in and straining the water through a cloth

The PUR product is a small packet (or “sachet”) of a pre-measured compound designed to be mixed with 10 liters of water

P&G launched a high profile commercial campaign for PUR in June 2004. The campaign primarily targeted the urban population in SindhProvince and included the participation of the Pakistan Medical Association (PMA)

Six months after the launch of this commercial campaign, repeat purchases hovered at approximately 5%

Initial launch of PUR was considered a failure because sales were insufficient to provide a positive return on investment in the time frame required for a typical commercial consumer good

Low repurchase rate to the need for sustained communication to change public perception about the health risks of drinking contaminated water

P&G subsequently changed focus and used the product as a Not-for-Profit Model, which was a huge success

Product Failure: Change in Strategy

Re-look at market positioning in line with the target segments

Pur was high priced compared to the income levels in Philipines, Morocco, Guatemala

and Pakistan

Look at segments which relatively high literacy rates e.g. India, China

Partner with Schools and medical institutions to promote the product

Pre-launch marketing strategy to involve free sample distributions to households

Sustained campaigning to spread awareness on the importance of clean drinking water

Key takeaways

No. 1 FMCG organization globally, with a high focus on R&D and innovation. High product differentiation

Huge potential in high growth markets such as India; high competition and low margins is posing serious threats

Competitors in India Include HUL, Dabur, Colgate, Marico, ITC, etc.

Opportunity to expand through online platforms & innovative marketing strategies

Pur failed its original vision, but was repositioned as a philanthropic venture

Thank you