Saranya Project Report (3).docx

INTRODUCTION Fast Moving Consumer Goods(FMCG) FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a lot of thought, time and financial investment to purchase. The margin of profit on every individual FMCG product is less. However the huge number of goods sold is what makes the difference. Hence profit in FMCG goods always translates to number of goods sold. Fast Moving Consumer Goods is a classification that refers to a wide range of frequently purchased consumer products including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, other non-durables such as glassware, bulbs, batteries, paper products and plastic goods, such as buckets. ‘Fast Moving’ is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year. The category may include pharmaceuticals, consumer electronics and packaged food products and drinks, although these are often categorized separately. The term Consumer Packaged Goods (CPG) is used inter changeably with Fast Moving Consumer Goods (FMCG). Three of the largest and best known examples of Fast Moving Consumer Goods companies are Nestlé, Unilever and Procter & Gamble. Examples of FMCGs are soft drinks, tissue paper, and chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and Believe. The FMCG sector represents consumer goods required for daily or frequent use. The main segments of this sector are personal care (oral care, haircare, soaps, cosmetics, toiletries), household care (fabric wash and household cleaners),branded and packaged food, beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery products) and tobacco. The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory employment in India. The industry also creates employment for 3 m people in downstream activities, much of which is disbursed in small towns and rural India. This industry has witnessed strong growth in the past decade. This has been due to liberalization, urbanization, increase in the disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of personal care companies to attract the burgeoning affluent segment in the middle-class through product and packaging innovations. Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite, in reality, the sector meets the every day needs of the masses. The lower-middle income group accounts for over 60% of the sector's sales.Rural markets account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have been present in the country for many decades. But in the last ten years, many of the smaller rung Indian FMCG companies have gained in scale. As a result, the unorganized and regional players have witnessed erosion in market share.

History of FMCG in India In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force in the FMCG sector well supported by relatively less competition and high entry barriers (import duty was high). These companies were, therefore, able to charge a premium for their products. In this context, the margins were also on the higher side. With the gradual opening up of the economy over the last decade, FMCG companies have been forced to fight for a market share. In 1

the process, margins have been compromised, more so in the last six years (FMCG sector witnessed decline in demand). Products and Categories:Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps); - Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper product; Household care fabric wash including laundry soaps and synthetic detergents, household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish - Food and health beverages, branded flour, branded sugarcane, bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc, snack food, chocolates, etc.

Top Players in FMCG sector:          

Hindustan Lever Limited (HLL) ITC (Indian Tobacco company) Nestle India GCMMF (Amul) Dabur India Asian Paints (India) Cadbury India Britannia Industries Proctor and Gamble Hygiene & Healthcare Marico Industries

Secondary Players in FMCG sector:     

Colgate-Palmolive (India) Ltd. Godrej Consumers Product Ltd. Nirma Ltd. Tata Tea Ltd. Parle Agro.

FMCG giants such as ITC, Dabur, Godrej Consumer Products, Britannia, Marico have been making sincere efforts to promote their products in rural areas and for generating awareness among them, they have increased their marketing efforts in rural India and smaller towns with the motive to establish a local distribution networks and increase product visibility in the deep interior parts of rural markets. Godrej has organized 'Rural meals' in order to access potential rural consumers. Major domestic retailers like AV Birla, ITC, Godrej, Reliance and many others have already set up farm linkages. Hariyali Kisan Bazaars (DCM) and Aadhars (PantaloonGodrej JV), Choupal Sagars (ITC), Kisan Sansars (Tata), Reliance Fresh, Project Shakti (Hindustan Unilever) and Naya Yug Bazaar have established rural retail hubs.

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FMCG Sector in India: The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. Multinationals have made a strong presence and is characterized by a intense competition between the organized and unorganized segments, well connected distribution network, large number of channel members and low operational cost. In India, companies enjoys the advantage of having cheaper labour supply, availability of key raw materials and presence across the entire value chain gives India a competitive advantage. The FMCG market is having a bright future in India as per studies and is expected to jump from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Per capital consumption/expenditure as well as penetration level in most product categories like hair wash, packaged foods, jams, skin care, toothpaste etc in India is low 127 indicating the immense opportunity which is left untapped. Indian population is mushrooming and it is providing opportunities to multinationals as well as the domestic players to grow. In India, the middle class and the rural segments, presents an opportunity to producers of branded products to convert consumers to branded products and this make-shift from unbranded to branded indicates huge potential to grow in the same industry. Growth is also likely to come from consumer 'upgrading' in the matured product categories. 

Indian FMCG sector is contributing Rs. 2 trillion in the total economy with rural India contributing to a third of revenues.

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As per a study conducted by Booz & Company, FMCG sector is expected to grow in the range of 12% to 17% upto 2020 and could touch a market size between Rs. 4,000 to Rs.6,200 billion by 2020.

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Consumer preferences in rural markets have shown a paradigm shift over the last few years. Their consumption basket looks very similar to that of urban counterparts. Premium products are replacing basic versions and brands are making their presence felt. Nielsen estimates that the FMCG market in rural India will mark US$ 100 billion by 2025, from the current level of US$ 12 billion. Moreover, the Government's efforts to improve the efficiency of welfare programs with cash transfers will further boost rural consumption; it plans to deposit US$ 570 billion in the accounts of 100 million poor families by 2014.

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The rural FMCG market in India has grown 15% in 2011 (Nielsen Report, 2012). The Indian rural consumer market grew 25% in 2008 and reached US$ 425 billion in 2010-11 128 with 720-790 million customers (Quarterly Report, CII Technopak, 2011). According to FICCI Technopak Report 2009, FMCG industry is projected to grow by 12% and reach a size of US $ 43 billion by 2013 and US $ 74 billion by 2018.

During the year under review, the FMCG industry continued on a steady growth trajectory. Riding on continued demand for branded food products, personal care, household care, baby care and OTC products, the Indian FMCG sector crossed the Rs. 2-trillion mark in fiscal 2012-13, as per AC Nielsen. Future growth in the FMCG sector is expected to be driven by:

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Low per capita consumption: Per capita consumption levels in FMCG categories such as skin care, shampoos and toothpastes are much lower in India as compared to other markets and are expected to drive growth in future.

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Favourable demographics: 65% of India’s population is below the age of 35 years, making India one of the youngest nations and an important aspect of consumption growth.

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Low penetration levels of consumer products in most categories.

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Shift to branded products from unbranded products: Current level of unorganized market in some of the FMCG categories bodes well for future volume growth of branded products.

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Growth potential in rural markets.

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INTRODUCTION OF COMPANIES Procter and Gamble is a global company that provides consumer products in the areas of pharmaceuticals, cleaning supplies, personal care, and pet supplies (pg.com). This description however becomes increasingly simplistic the more one looks into the size of P&G as well as the scope of their operations. Is made up of over 300 brand names including Bounty, Gillette, Old Spice, Ivory, Pringles, Tide and Pampers and currently owns 22 brands that have more than $1 Billion in annual net sales (2008 Annual report, A. G. Laffley). P&G is a model for related product diversity; almost all of P&G’s products benefit from the same distribution to the same or same type of retail outlets and consumers. Procter and Gamble are also generally credited with having invented brand management. P&G was founded in 1837 (making P&G 172 years old) by two men who met by chance. William Procter, emigrating from England, established himself as a candle maker in Cincinnati, which was a busy center of commerce and industry in the early nineteenth century. And James Gamble, arriving from Ireland, apprenticed himself to a soap maker. The two might never have met had they not married sisters Olivia and Elizabeth Norris, whose father convinced his new sons-in-law to become business partners. Procter and Gamble is also currently developing and launching a direct to consumer sales online products store. Procter and Gamble says it is launching the store as a “learning lab” and not as a way to “bypass the big-box retailers like Wal-Mart and Target that peddle its household and personal care brands to Internet shoppers (Forbes).” The online shopping site will be owned and operated by PFSWeb and exclusively feature P&G products to consumers in the U.S.

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Business Growth and Divestitures Folgers Sale On June 4, 2008, P&G sold its Folgers coffee unit to J.M. Smucker Co for $2.95 billion. As part of the deal, P&G shareholders will receive a 53.5 percent stake in Smuckers and the company will assume $350 million of Folger's debt.

Gillette Acquisition Procter & Gamble acquired Gillette in 2005 for over $50 billion in its largest acquisition to date. In 2004, the last full year before the acquisition, Gillette generated over $10 billion in sales, about $6 billion of which came from razors and Duracell and Braun products and the remainder sourced from the Oral-B brand, which was moved into the Health & Well-Being segment. A key piece of the acquisition beyond Gillette's product lines was its distribution network and supply chain. Gillette's distribution network and supply chain in emerging markets had been extremely successful for Gillette and, once acquired, has worked to complement P&G's own distribution network.

Sale of Pharmaceutical Unit In 2009 P&G sold its pharmaceutical unit to Warner Chilcott Plc for $3.1 billion in cash. The company expects to book a 43 cent per share earnings boost in Q2 of fiscal 2010 as a result of the sale. The deal allows P&G to focus on its personal care, beauty, and household product divisions. In 2006, the company started winding down its discover-phase pharmaceutical products in favor of licensing late-stage compounds, and announced in 2008 it would exit the drug industry entirely.

Online Sales In January 2010, the company announced it would pursue its own online retail store to sell its consumer products to US end-users, putting it in direct competition with major retailers in reaching consumers. P&G CEO Bob McDonald said the company could increase its online sales "substantially" over the next few years. In fiscal 2009, P&G's existing online sales accounted for $500 million, or 0.6% of total revenue. The company plans a full scale launch in spring 2010after a pilot test with 5000 consumers. Different product price points provide some insulation against recession Household staples are somewhat protected from the US recession and global economic downturn. However, in a recession consumers often turn to cheaper private label or store brands instead of "brand name" products from P&G. To combat private label encroachment, P&G offers at least two product forms in many product categories. For example, the company has seen increases sales in Luvs from Pampers diapers and an increase in Gain detergent sales from Tide. In addition, P&G offers "Basic" versions of its Charmin toilet paper and Bounty paper towels. The company's broad offerings, combined with the necessity of household items, provide adegree of insulation against recession.

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Retail Consolidation The rise of a handful of powerful low-priced retailers has negatively impacted consumer products companies. A handful of big retailers have captured a large share of the market. For example, from 1999 to 2004, the top 10 food retailers in the US increased their share of food retail sales from 53.4% to 58.9%. These large retailers have shifted the balance of power within the supply chain. For example, the company's largest customer, Wal-Mart, accounted for 15% of net sales in 2006, 2007, and 2008.Wal-Mart has exerted its power over other suppliers to their detriment in the past, such as forcing record companies to produce clean-label CDs and pulling adult magazines. A decision by Wal-Mart not to sell a particular P&G consumer product would prevent P&G from reaching its entire target market. In addition, many retailers have pushed their own higher margin private label brands in competition with P&G.

Rise of Private Labels In the past decade, P&G has faced stiff competition from private label brands or "store brands" of large retailers such as Wal-Mart, Target, and supermarket chains. Private label products often sell at lower price points and earn higher margins because the retailers can control the cost of their production. For example, Wal-Mart offers 5,500 products through its "Great Value" brand, which has increasingly sold as consumers feel the recession squeeze on their disposable income. From 2003 to 2008, sales of Target's private label products rose an average of 15% annually. Large retailers are close to the consumers, have the point of sale data on consumer behavior and are in better position to understand consumer behavior. These strengths contribute to better private label product development, which directly compete with P&G products. Retailers also promote their own brands as they earn higher margins on them. P&G has addressed this issue by continuously investing in Research & Development and introducing new products as well as offering different versions of its own products at different price points.

Developing Markets P&G has a well-established market presence in developed countries such as the United States and Western Europe and is looking to its presence in emerging markets. In fiscal 2009, 32% of total net sales came from developing nations, a figure that has increased steadily from 2002 when sales in developing nations accounted for only about 20% of total revenue (approximately $8 billion).CEO Bob McDonald said in 2010 that he wants P&G to grow sales in China and India to reach 1 billion more customers by 2014. In September 2010, PG announced it would bring its Well a hair color products to India, leading an aggressive push for product expansion. Some expect the company to bring its Crest or Oral-B toothpaste to the Indian market next. In China and Russia, P&G's market share has been consistently increasing in the past five years as Procter & Gamble has put an increased emphasis on establishing its products in those markets. In 2008, the company's distribution network reached 800 million people in China and 80% of the population in Russia. P&G has created products designed specifically to target developing nations. For example, in many countries consumers wash clothing by hand with limited amounts of water. In response, P&G has launched Downy Single Rinse in Mexico, China, Philippines, and 9 other countries.

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While the average Mexican spends about $20 a year on P&G products, Chinese per-capita spending is only about $3 and India per-capita spending $1. Increasing sales in China and India to the levels in Mexico would add $40 billion in sales to the company's overall revenue.

Research & Development focuses both inside and outside the company In 2009, P&G spent approximately $2.04 billion on Research & Development, nearly $1 billion more than its closest competitor, Unilever. The two most important factors in P&G's innovation process are its practice of consumer demand research and its "Connect and Develop" R&D structure. First, when entering new markets, P&G sets up in-home visits with consumers in order to fully understand the needs and desires consumers have for household and personal products. This way, P&G gets directly to its customers and is able to cater to their needs. P&G also incorporates consumers' input into the R&D process through its "Connect and Develop" initiative. Through "Connect and Develop" P&G has an online interface set up where people can submit product ideas and provide input on topics that P&G places on the web-portal. P&G staff then sort through the ideas and work with the most promising ones. This process is not responsible for all of the R&D that P&G does, but approximately 42% of new products in the last several years were influenced by or originated from "Connect and Develop."Early returns on new products released in 2009 are encouraging. Tide Stain Release, a stain-removing detergent released in July 2009, has garnered 10% market share in the US as of November 2009. The Bounce Dryer Bar, an automatic laundry freshener released in August2009, has captured 7% of the North American fabric sheet market as of November 2009.

Commodity Prices A diversified consumer products manufacturer, P&G depends heavily on a wide basket of global commodities for manufacturing its goods. Higher commodity costs subtracted 0.5% from gross margin growth. Nearly half of the company's cost of goods is directly related to commodity goods. The company has increased prices due to higher costs of oil and other raw materials. P&G instituted broad price adjustments in Q1 2010 to close widening price gaps in several businesses, including North American laundry, tissue, and towel, and several Eastern European markets. Analysts believe pricing adjustments are largely behind P&G as of Q2 2010, with an impact on about 10% of P&G's products. Jefferies analyst report, 10 Nov 2009As the market leader, the company does benefit from pricing power and can moderate commodity inflation better than its competitors. P&G Home Products Limited was incorporated as 100% subsidiary of The Procter & Gamble Company, USA in 1993 and it launched launches Ariel Super Soaker. In the same year Procter &Gamble India divested the Detergents business to Procter & Gamble Home Products. In 1995,Procter & Gamble Home Products entered the Hair care Category with the launch of Pantene Pro-V shampoo. Procter & Gamble Home Products launches Head & Shoulders shampoo. In 2000, Procter &Gamble Home Products introduced Tide Detergent Powder - the largest selling detergent in the world. Procter & Gamble Home Products Limited launched Pampers - world's number one

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selling diaper brand. Today, Proctor & Gamble is the second largest FMCG Company in India after Hindustan Lever Limited.

PROCTOR PLAZA IN CINCINNATI (USA). MISSION AND VISION OF P&G VISION of P&G ³To be a leading consumer goods company and to improve the lives of world consumers by providing valuable and innovative products´. Ten years ago Procter and gamble started the journey to improve the lives of Pakistani consumers by providing them with world famous quality brands. P&G want to be an outstanding organization with a passion for winning that would felt by everyone everyday; in the office, in the field every where P&G vision is to lead business growth by proactively identifying opportunities and positively contributing to volume growth. We will provide branded products and services of superior quality and value that improve the lives of the world's 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.

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VALUES AND PRINICPLES OF P&G P&G is its people and the values by which we live. We attract and recruit the finest people in the world. We build our organization from within, promoting and rewarding people without regard to any difference unrelated to performance. We act on the conviction that the men and women of Procter & Gamble will always be our most important asset.

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LEADERSHIP: 

We are all leaders in our area of responsibility, with a deep commitment to deliver leadership results.

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We have a clear vision of where we are going.

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We focus our resources to achieve leadership objectives and strategies.

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We develop the capability to deliver our strategies and eliminate organizational barriers.

OWNERSHIP: 

We accept personal accountability to meet our business needs, improve our systems, and help others improve their effectiveness.

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We all act like owners, treating the Company's assets as our own and behavingwith the Company's long-term success in mind.

INTEGRITY 

We always try to do the right thing.

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We are honest and straightforward with each other.

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We operate within the letter and spirit of the law.

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We uphold the values and principles of P&G in every action and decision.

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We are data-based and intellectually honest in advocating proposals, including recognizing risks.

PASSION FOR WINNING 

We are determined to be the best at doing what matters most.

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We have a healthy dissatisfaction with the status quo.

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We have a compelling desire to improve and to win in the marketplace.

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TRUST 

We respect our P&G colleagues, customers, and consumers, and treat them as wewant to be treated.

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We have confidence in each other's capabilities and intentions.

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We believe that people work best when there is a foundation of trust.

Our principles We Show Respect for All Individuals 

We believe that all individuals can and want to contribute to their fullest potential.

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We value differences.

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We inspire and enable people to achieve high expectations, standards, andchallenging goals.

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We are honest with people about their performance.

The Interests of the Company and the Individual Are Inseparable 

We believe that doing what is right for the business with integrity will lead tomutual success for both the Company and the individual. Our quest for mutualsuccess ties us together.

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We encourage stock ownership and ownership behavior.

We Are Strategically Focused in Our Work 

We operate against clearly articulated and aligned objectives and strategies.

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We only do work and only ask for work that adds value to the business.

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We simplify, standardize, and streamline our current work whenever possible.

We Value Personal Mastery 

We believe it is the responsibility of all individuals to continually develop themselves and others.

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We encourage and expect outstanding technical mastery and executional excellence.

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We Seek to Be the Best 

We strive to be the best in all areas of strategic importance to the Company.

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We benchmark our performance rigorously versus the very best internally and externally.

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We learn from both our successes and our failures.

Innovation Is the Cornerstone of Our Success 

We place great value on big, new consumer innovations.

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We challenge convention and reinvent the way we do business to better win in the market place.

Mutual Inter dependency Is a Way of Life 

We work together with confidence and trust across business units, functions, categories, and geographies.

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We take pride in results from reapplying others' ideas.

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We build superior relationships with all the parties who contribute to fulfilling our Corporate Purpose, including our customers, suppliers, universities, and governments.

P&G SUBSIDIARIES P&G India has three arms -- P&G Hygiene and Health Care, P&G HOME PRODUCTS and GILLETTE INDIA. P&G Hygiene and Health Care Procter & Gamble Hygiene and Health Care Limited is an India-based fast moving consumer goods company. The Company is engaged in the manufacturing and marketing of health and hygiene products. The Company's portfolio includes VICKS, a healthcare brand and WHISPER ,a feminine hygiene brand. Its healthcare product portfolio includes Vicks Vap Rub, Vicks Inhaler, Vicks Formula 44, Vicks Cough Drops and Vicks Action 500+. Vicks Vapo Rub Is available in five pack sizes of 50 grams jar, 25 grams jar, 10 grams, five grams and two grams dibbi. Under feminine care, its brands includeWhisper Maxi Regular ,Whisper Maxi XLWings ,Whisper Ultra withWings ,Whisper Ultra XLWings andWhisper Choice. The Procter and Gamble Company is its ultimate holding company and Procter and Gamble Asia Holding BV is its holding company. 13

P&G HOME PRODUCTS: Procter & Gamble Home Products Limited manufactures and distributes fabric care, hair care, and baby care products. The company was incorporated in 1989 and is based in Mumbai, India. P&G Home Products is a subsidiary of Procter & Gamble Co. P&G Home Products Limited is one of India's fastest growing Fast Moving Consumer Goods Companies that has in its portfolio P&G's global brands such as Ariel and Tide in the Fabric Care segment, and in the Hair Care segment: Head & Shoulders - world's largest selling anti-dandruff shampoo; Pantene - world's No. 1 beauty shampoo; and Rejoice - Asia's No. 1shampoo.P&G Home Products Limited is a 100% subsidiary of The Procter & Gamble Company, USA, that in India, has carved a reputation for delivering superior quality, value-added products to meet the needs of consumer.

GILLETTE INDIA: Gillette India Limited (GIL) is one of India's well-known FMCG Companies that has in its portfolio GILLETTE MACH 3 TURBO, ORAL-B and DURACELL - world's leading brands and has carved a reputation for delivering high quality, value-added products to meet the needs of consumers. Incorporated in the year 1985 as Indian Shaving Products Limited, now Gillette India Limited, its products speak for themselves. The company is always been known for the strength of its brands, and always continues to penetrate deeper into the hearts of Indian Consumers. In the year 1990-91, the company launched two products, first was 7 0'Clock EJTEK PII Shaving System and second was shaving cream with three variants. This was the First time that a shaving cream was introduced in Indian markets with special features. Company successfully relaunched Gillette Foam in 4 Variants .Duracell also launched its Ultra M 3 AA batteries, which was well received by consumers. Oral Care launched Power Oral Care brushes, which were well received in the market. Towards the End of 2003, Company launched Gillette Vector Plus. The Company launched Storm Force, a revolutionary after shave splash and New Ultra Comfort Shaving Gel .In the fourth Quarter, Company launched two new Gillette Series Tube Shave Gel variants, namely for Sensitive skin and Moisturizing, to suit different skin types. Company launched ?New Improved Gillette Vector Plus featuring all new contemporary look. The Gillette Company, USA was acquired worldwide through merger in October, 2005 by Procter& Gamble Company, USA creating the largest Consumer products Company in the World. In the year 2006-2007, Company launched Gillette Presto Plus for more discerning consumers. Oral B brand launched Oral B Vision and Kid in Premium Market Segment. In the year 2007-2008, Company launched The Gillette Winners program that had sports legends Roger Federer , Thierry Henry and Tiger Woods and Rahul Dravid. An innovative program

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"Free Dental Check up" was organized to enable consumers to benefit from expertise of professional dentists at no cost. Oral-B brand launched a new variant "Shiny Clean" targeted at the value segment.

PRODUCTS OF P&G Fabric Care: Procter & Gamble has two of its world-leading detergents ± Tide and Ariel, in India to cater to the main concerns of the Indian households, namely, outstanding whiteness and stain-removal. Ariel Front-O-Mat Ariel 2 Fragrances Tide Detergent Tide Bar

Hair Care: P&G’s Beauty Business is over US$ 10 Billion in Global Sales, making it one of the world’s largest beauty companies. The P&G beauty business sells more than 50 different beauty brands including Pantene®, Olay®, SK-II®, Max Factor®, Cover Girl®, Joy®, Hugo Boss®, Herbal Essences® and Clairol Nice ‘n’ Easy®. In India, P&G’s beauty care business comprises of Pantene, the world’s largest selling shampoo, Head & Shoulders, the world’s No. 1 Antidandruff shampoo and Rejoice ± Asia’s No. 1 Shampoo. Procter & Gamble is committed to making every day in the lives of its consumers better through the superior quality of its products and services.

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 Pantene Pro V  Head & Shoulders  Rejoice

Baby Care: Segment includes diapers, baby wipes, paper towels and toilet papers. Pampers Luvs with ultra leakguards Pampers baby wipes baby Pampers baby wipes sensitive

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Beauty care product: P& G beauty business is over US 10 billion dollars in global sales make it one of the world largest beauty companies. The p and g beauty business sell more than 50 different product including:Pantene  Olay  Max factor  Joy  Herbal Essence  Easy In India, p and g business comprises of Pantene the world largest selling shampoo, Head n Shoulders the world No. 1 anti – dandruff shampoo, Rejoice Asia's No. 1 shampoo. P and g committed to making everyday in the lives of its customer better through the superior quality of its product and services.

Shiksha

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P&G's focus on purpose-inspired growth drives us to not only serve our consumers with superior product propositions, but also truly touch and improve the lives of more consumers, more completely by contributing towards the community we operate in Live, Learn and Thrive is P&G's global corporate cause, focusing on helping children in need around the world. The programs enable children to get off a healthy start, receive access to education and build skills for life. They believe in building the community in which we live and operate by supporting its ongoing development. Educating Underprivileged Children (2007) ProjectSHIKSHA: Secure You Child's Future (2003). With a mission to make difference to make current alarming situation of children's literacy, P & G joined hand in India's premier child right organization child relief and You (CRY) and Sony Entertainment and Television to launches 'Shiksha' a program to educate uprivileged children in India. Under shiksha P& G and Sony appealed to consumers and viewers to support the cause and make it easy for them to do so – all an individual has to do is purchase of larger pack of either Tide, Ariel, Pantene, Head n Shoulder, Rejoice, Vicks vapo rub or Pampers that will one day's education of one children one child per pack purchased. Irrespective of sale of its brand from shiksha, p and g committed a minimum of 1 crore to CRY.P& G aimed at education for it its csr initiative. According to Pand G's marketing manager: shiksha is not an initiative but a passion that we as an organization strongly believe in. It means they are helping to build the future of India. CRY education has managed to reach the unprivileged and even the poorest of the poor, children numbering around 87, 000 in India. Thanks to the CSR initiative of FMCG products of P & G .P &G shiksha closed 08 with the largest ever contribution of 3.2 crore to CRYand other initiatives is reaching out to over 87,000 in the coming year.

Padhega India. Badhega India. They seems to define the slogan “ Padega India tabhi to badega India”. With a motto of “Padega India, Jabhi to Badhega India “.shiksha believe that the secret to a brighter India lies in children 18

attaining their right to fee , quality education. Irrespective of sale every year P& G commits to a minimum of Rs. 1 crores to its partner CRY , which will be allocated to the project focus on enabling the child’s right to education. These funds will deployed to the establish Shiksha project work with the state education department to relook at existing education amenities like water, electricity and health and enroll more children into formal schools and promote retention in schools. Project Shiksha is a part of global philanthropy programme Pand G Live, Learn and Thrive that focuses on the development of children in need across globe with education of children via shiksha being the priority in India.

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20distinct categories in Home & Personal Care Products and Foods & Beverages. The company’s Turnover is Rs. 20, 239 crores (for the 15 month period ± January1, 2008 to March 31, 2009).Hindustan unilever limited is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100countries across the globe with annual sales of ¼40.5 billion in 2008. Unilever has about 52% shareholding in HUL. Hindustan Unilever was recently rated among the top four companies globally in the list of ³Global Top Companies for Leaders´ by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India. The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to ³add vitality to life". The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.

Heritage HUL’s heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India. Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the company has more than three lakh resident shareholders. HUL’s brands -- like Lifebuoy, Lux ,Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls - are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in over 35 factories, several of them in backward areas of the country. The operations involve over 2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets including direct reach to over 1 million.HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Lever Research Centre (now Hindustan Unilever Research Centre) was set up in 1958.

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Doing well by doing good HUL believes that an organization’s worth is also in the service it renders to the community. HUL focuses on hygiene, nutrition, enhancement of livelihoods, reduction of greenhouse gases and water footprint. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the relief and rehabilitation of the people affected by the Tsunami disaster, in India. HUL’s Project Shakti is a rural initiative that targets small villages populated by less than 5000 individuals. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also provides health and hygiene education through the Shakti Vani programme. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000villages and directly reaching to over three million rural consumers.HUL also runs a rural health programme, Lifebuoy Swasthya Chetana. The programme Endeavour’s to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched120 million people in approximately 50,676 village across India.

History of HUL In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG).Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675individual shareholders and financial institutions. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated.

Purpose, values & principles Our Corporate Purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact."

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Mission Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

Our vision Unilever is a unique company, with a proud history and a bright future. We have ambitious plans for sustainable growth and an intense sense of social purpose.

A clear direction for us Our purpose is to make sustainable living commonplace. We work to create a better future every day, with brands and services that help people feel good, look good, and get more out of life. In 2009, we launched The Compass – our strategy for sustainable growth. It sets out our clear and compelling vision to double the size of the business, while reducing our environmental footprint and increasing our positive social impact and gives life to our determination to build a sustainable business for the long term. This is captured in the Unilever Sustainable Living Plan. By combining our multinational expertise with our deep roots in diverse local cultures, we’re continuing to provide a range of products to suit a wealth of consumers. We’re also strengthening our strong relationships in the emerging markets we believe will be significant for our future growth. And by leveraging our global reach and inspiring people to take small, everyday actions, we believe we can help make a big difference to the world. "We cannot close our eyes to the challenges that the world faces. Business must make an explicit and positive contribution to addressing them. I’m convinced we can create a more equitable and sustainable world for all of us by doing so,” says Unilever CEO Paul Polman. “But this means that business has to change. The Unilever Sustainable Plan is a blueprint for sustainable growth. And in 2014 we are strengthening our Plan with new commitments to drive further transformational change.”

Our Priorities and Principles Unilever is committed to supporting sustainability and providing our consumers around the world with the products they need to look good, feel good and get more out of life. Five key priorities provide the foundation for our brand’s campaigns. Read some examples of how different brands are upholding these principles.

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A better future for children 





Our oral care brands Signal and Close-Up encourage children to brush their teeth day and night for optimal dental health. We also partner the FDI World Dental Federation, supporting oral health programmes around the world Brands such as Omo and Persil have helped parents believe the unconventional philosophy that Dirt is Good. Children learn through play, and mud spatters and grass stains can easily be removed with effective laundry products Unilever also partners the World Food Programme and launched the Together for Child Vitality initiative to bring our expertise in nutrition to children in some of the world’s poorest countries.

A healthier future   

Our Flora/Becel margarine brands have been scientifically proven to help reduce cholesterol levels Vaseline has launched the Vaseline Skin Care Foundation, providing research into skin conditions and support for people affected by them Lifebuoy soap has long had a presence in developing markets around the world, and its campaign to promote hand washing with soap was celebrated by 200 million people across 53 countries in 2013.

A more confident future 





Dove’s Campaign for Real Beauty uses real women instead of models in its advertising campaigns. The brand has also launched the Dove Self Esteem Fund which educates and inspires millions of young women Our Sun silk hair care brand has partnered some of the world’s leading hair specialists to cocreate formulas tailored to treat conditions such as hair-fall, frizz, limp locks and uncontrollable curls Close-Up toothpaste provides an affordable oral care solution for consumers in developing markets, allowing them to take care of their dental health and closer with confidence.

A better future for the planet  



We’re aiming to grow our business while reducing our environmental footprint and working across the supply chain for every brand to do so Our Laundry brands, including Surf, Omo, Persil and Comfort, have launched the Cleaner Planet Plan together, encouraging consumers to change their laundry habits to reduce water and energy consumption Our Lipton tea brand backs sustainable forest management projects in Africa

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A better future for farming and farmers   

Many of our brands contain ethically and sustainably sourced ingredients that are independently certified Among these are Lipton tea, which is accredited by the Rainforest Alliance, and Ben & Jerry’s ice cream, which includes Fair trade vanilla and almonds in various flavours Around half our raw materials come from agriculture and forestry, so we’re working towards making our key crops 100% sustainable.

Product of HUL

personal wash:Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears and Rexona

Laundry:Surf Excel, sun light, Rin ,Wheel & Ala bleech

Dishwasher :Vim

Disinfectants:Domex, cif

Foods Kissan (Jam, Ketchup, Squashes), Annapurna(Aata and salt), Knorr Soups, Modern Bread

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Ice-cream Kwality Wall's

Bewerages Tea Brooke bond, Lipton, taj mahal Coffee Brooke bond bru

Beauty Products Fair & Lovely, Lakme, Ponds, Vaseline and Aviance

Hair-Care Sunsilk naturals, Clinic , Dove and Lifebouy

Oral care Pepsodent and Close-up Deo spray Axe and Rexona

Water Purifier Pureit

Ayurvedic Personal & health care Ayush

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OBJECTIVE OF STUDY The intense competition in particular market drives businesses to evaluate their policies and effectiveness regularly. Each company has its own business characteristic, which certain policy is suitable fit for a company while others could be unacceptable. Several conditions that prompt the differentiation treatment among different company are nature of the business, workers learning and development mentality, top level manager vision, dynamics market condition, and competitor business strategy, to name a few. From investors or outsiders point of view, financial performance of a company is noteworthy since they aim at investing their money to the company by buying a number of shares from stock market. Under such circumstances, the investors would assess in much details regarding the corporate current performance and possible future states. In other terms, investors need to examine the business risks of the company in order to save their investment. The assessment of business risks is also challenging since different business types imply a significant different treatment of strategic business control and evaluation. For example, a firm that produces sheets of paper has relatively stable, functional skills are specialized to gain operating efficiencies. There are relatively no strict challenge from the same competitor, because the market share are divided equally, as long as they keep the productions quality and maintain the cheapest cost of production. In contrast, firms in electronic industry like Nokia and Apple Inc, which produce mobile-phones and other portable electronic products; they face a fiercer challenge since the business environment changes rapidly, which in turn, forces the firm to find an effective business strategy that can improve their cost-efficiencies with the same quality product. The situation also occurs in the fast moving consumer goods where a number of brands continue appear in order to offer attractive products to consumers. Regardless of whether the environment is stable or dynamic, an organization needs to exercise control over its operations so that its objectives are achieved as preliminary business planning and as part of managing business risks. To assess the marketing strategy on hair care products of HUL and P&G.  To know about the customer satisfaction level regarding HUL and P&G products.  To study Indian consumer buying behavior on hair care products of HUL andP&G.  To evaluate the factors influencing hair care consumer buying behavior ofHUL and P&G in Indian market.  To evaluate the problems faced by customers while using the products.  To know about the suggestions of customers to increase the sale of products.  To know about the source of information of products  To know about the quality of products.

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RESEARCH METHDOLOGY The purpose of methodology is to describe the process involved in research work. This includes the overall research design, data collection method, the field survey and the analysis of data. In this study, the researcher has adopted descriptive research.

a) Sample design Survey: A sample of 100 customers.

b) Research Design Detailed and structured questionnaire was designed. The questionnaire w a s designed to get information from customers about their satisfaction and overall opinion about Hindustan Unilever Limited Product and P&G. The methodology developed was Primary and Secondary research.

c) Data Collection. • Primary data Primary data are those which are collected as fresh and for the first time and thus happen to be original in character. It was collected through questionnaire.

• Secondary data The secondary data are those which have already been collected by someone e l s e a n d w h i c h h a v e a l r e a d y b e e n t h r o u g h t h e s t a t i s t i c a l p r o c e s s . T h e d a t a were collected in the form of company profile and produce profile from the web sites. Some of the books were referred for theoretical concepts.

d) Field of Survey The field work for the survey was conducted in Ropar. The exercise involved was filling out the questionnaire by customers.

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DATA ANALYSIS 1. Are you aware of HUL and P&G products?

Awareness of HUL and P&G products 120 100

98

80 60

Use of HUL and P&G products

40 20 2 0 Yes

No

Data Interpretation: The above table shows that 98% respondents are aware products of HUL and P&G while there are only 2% respondents who are not aware of these products.

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2. If yes, then which one you prefer mostly?

Which one 100 90

89

80 70

60 50

Which one

40 30 20

11

10 0 HUL

P&G

Data Interpretation: The above table shows that 89% respondents use products of HUL while there are only 11% who use products of P&G.

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3. What is your main source of information about HUL and P&G products?

Information Source 90 80 70 60 50 Information Source

40 30 20 10 0 Media

Broacher

Friends

Data Interpretation: The above table shows that 78% respondents came to know about the products from media, 12% from broacher and only 10% from friends.

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4. If media, which one?

Media 80 70 60 50 40

Media

30 20 10

0 T.V.

Radio

Internet

Data Interpretation: The above table shows that 67% respondents came to know about the products through T.V., 14% through radio and rest 19% through internet.

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5. Since how long are you using the HUL and P&G products?

Time 60 49

50 40 30

24

27

Time

20 10 0 Less than one year

1-2year

More than 2year

Data Interpretation: The above table shows that 24% respondents are those who are using the products from less than one year, 27% from one-two years and 49% from more than two years.

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6. What is your quality satisfaction level for HUL and P&G products?

Quality Satisfaction Level 45 40 36 35 30 25 20 15 10 5 0 Highly satisfied

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18

4 Satisfied

Dissatisfied

Satisfaction Level

Highly dissatisfied

Data Interpretation: The above table shows that 36% respondents are highly satisfied with the products, 42% are satisfied, 18% are dissatisfied and rest 4% are highly dissatisfied

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7. Have you faced any problem while using HUL and P&G products?

Problem 100 90

87

80 70 60 50

Problem

40

30 20

13

10 0

Yes

No

Data Interpretation: The above table shows that 87% respondent faced the problem while using the products and 13% did not face the same problem.

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8. Are you satisfied with the prices of the products?

Satisfaction with prices 70

64

60 50 40

36 Satisfaction with prices

30 20 10 0 Yes

No

Data Interpretation: The above table shows that 64% respondent are satisfied with the prices of the product and 36% are dissatisfied for the prices.

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9. According to you why HUL and P&G products have edge over other products?

Edge over others 35 30

32 27 24

25 20

17 Edge over others

15 10 5 0 Price

Quality

Range

Image

Data Interpretation: The above table shows that 32% respondent think that they have edge over others because of good image,27 % respondent think that they have edge over others because of good price, 24% respondent think that they have edge over others because of good quality,17 % respondent think that they have edge over others because of good range.

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10. Whether you will purchase HUL and P&G products if their prices are increased?

Purchase after price increase 70 60

59

50 41 40 Purchase after price increase

30 20 10 0 Yes

No

Data Interpretation: The above table shows that most of respondent are prefer P &G products if price increased and rest 41% respondent are answer no if price is increased.

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11. Which is the best way of promoting the sales of HUL and P&G products?

Best way of promotion 38

40 35

31

30 25 20 20 Best way of promotion

15

11

10 5 0 Shop display

Hoardings

Electronic media Door to door selling

Data Interpretation: The above table shows that 38% respondent are interact with electronic media, 31% respondent are interact with shop display,20% respondent interact with hoardings and rest 11% respondent are interact with door to door selling.

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FINDINGS & RECOMMENDATIONS Findings:  Majority of people are using P&G and HUL products.  Most of the people prefer HUL products.  Media is a good information source for advertisement to interact with customers.  Mostly people are satisfied with P&G and HUL products  It is also found that 59% respondents prefer to purchase P&G and HUL products even if prices increased.  69% respondents are satisfied with the products of P&G and HUL.

Recommendations:  Companies should try to expand its market share and should also try to increase the awareness through the advertisement.  Customer feedback can be taken which will help the company for promotion.  Both companies should increase their distribution channel.  Both companies should not increases their prices because most of the customer will get dissatisfied with more prices.

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LIMITATION 1. It is very difficult to collect the information from people as they are busy in their work. 2. This study was carried out only among the consumer in Gurgaon city. 3. The sample size was restricted to 100 due to time constraints 4. The sample was taken on the basis of convenience there for the short coming of the convenience sampling may also be present in this study. 5. This study is based on the prevailing satisfaction of the respondents. But their satisfaction may change according to time and technology.

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CONCLUSION After studying various market dynamics of HUL and P&G products with the help of Customer survey market standing of HUL products is quite clear. HUL and P&G Products are clearly the market leader in branded products. According to analysis it can be conducted that HUL and P&G Products are having good market share and excellent quality as compared to products. Customer considers quality of HUL and P&G products as most important factor. Moreover the prices of the HUL and P&G products are very competitive. According to customers, media is the main source of Information of HUL and P&G products; electronic media is the best way of Information. In nutshell, it can be concluded that mostly customers prefer HUL and P&G Products and they are satisfied with them.

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BIBILIOGRAPHY Websites: http://us.pg.com/ https://www.thebalance.com/market-research-was-born-in-the-field-proctor-and-gamble2297142 http://www.bitlanders.com/blogs/procter-and-gamble-introduction/30254 https://www.slideshare.net/SarthakRahate/case-study-procter-and-gamble-pg-marketingcapabilities https://sarahstecko.files.wordpress.com/2014/03/literature-review.docx

https://www.pdfcoke.com/doc/60972025/Project-Report-on-p-g http://journal.sbm.itb.ac.id/index.php/jbm/article/viewFile/1084/734 .https://www.omicsonline.org/open-access/loyalty-quality-and-satisfaction-in-fmcg-retailmarketdoes-loyalty-in-retailing-exist-2167-0234.1000122.php?aid=29292 http://shodhganga.inflibnet.ac.in/bitstream/10603/74309/6/06_chapter%203.pdf

Books: Marketing and Management -A strategic Decision making Approach Marketing Management Bhawna Mehra Prof. P.K. Chopra

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