P & G

P&G • Established in 1837 in Ohio, USA • Operations in 70 countries, employees more than 1,10,000 • Marketed 300 brands, nearly 5 billion customers over 140 countries • Brands: Tide,Ariel,Crest,Pantene Pro-V, Always, Whisper, Pringles, Pampers & Vicks

• Till 1985,P&G acquired Richardson Vicks Ltd. • RVI’s subsidiary RHL had strong presence through Vicks • In 1989, introduced Whisper Sanitary • In 1991, introduced Ariel detergent • Between 1992-93, USA stake 40-65%

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P&G P&G Home Products

P&G Hygiene & Health Care

Feminine Hygiene Product (Whisper)

Anticold Healthcare Products (Vicks)

• In Nov 1990, Test marketed Ariel Microsystem • In 1991, Launched Ariel • Incurred heavy advertising expenditure • Ariel’s launch prompted HLL develop “Surf-Ultra” • Reduced product development time and work in different phases simultaneously

• End of 1992, HLL captured 7% whereas P&G had 4% detergent market share • P&G tied with Reliance and HLL tied with Bombay Dyeing • In 1997, targetted premium segment and launched Tide • HLL positioned Rin • In May 2000, HLL launched “Surf Excel Liquid Detergent” • HLL started Direct Marketing(Lever Home)

• Tide captured foothold • Main competitors low priced Ghari and Fena,hence lowered the price • P&G tied up with consumer durable Videocon • In 2003, HLL launched “Surf Excel Automatic” tied with washing machine manufacturers

Pricing Strategy

• Launched sachets • Continuous price cut Detergent Brands

Prices for 500gm packs

Prices for 1kg pack

Rs.13 Rs.20 Rs.38(Rs.50) Rs.40 Rs.50(Rs.70)

Rs.26 Rs.42 Rs.60(Rs.85)

Rs.23(Rs.43) Rs.50(Rs.70)

Rs.46(Rs.89) Rs.99(Rs.135)

HLL Wheel Active Rin Shakti Surf Excel Blue Rin Supreme Surf Excel

Rs.99(Rs.130)

P&G Tide Ariel