PnG

SWOT analysis
STRENGTHS Scope was long experience in the oral hygiene industry since 1967. The taste or flavor of Scope better than other mouthwashes. High-quality product, quality processes and procedures. Have a first rating in mouthwash market share. WEAKNESSES Not enough make a distribution channel. Lack of canning or packaging. Undifferentiated products or services with other competitor. OPPORTUNITIES Brand which it concentrate for a healthy oral. Move into new market segment that offer improves profit. A developing market such as in the Internet. Place more distribution channel such as more drugstore and food store THREAT Too many competitor in this industry. Price wars with other competitor. Not patentable , competitor can attempt to duplicate a product

INDUSTRY PROFILE
What are Fast Moving Consumer Goods (FMCG)? Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. A subset of FMCGs are Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products. White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India. According to the AC Nielsen India study, the industry grew 5.3% in value between 2004 and 2005. Indian FMCG Sector The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands.

4 PS ANALYSIS OF PANTENE PRO-V

PRODUCT:
Clearly, Shampoo is more than just shampoo when P&G sells it. P&Gs great success in the rough-and-tumble shampoo world comes from developing an innovative product concept. An effective product concept is the first step in marketing-mix planning. Philip Kotler defines product as Anything that can beoffered to a market for attention, acquisition, use or consumption that might satisfy a -want or need. It includes physical objects, services, persons,places, organizationsand ideas. Product planners need to think about the product on three levels. The most basic level is the core product, which addresses the question: What is the buyer really buying? Theodore Levitt has pointed out that buyers 'do not buy quarter-inch drills; they buy quarter-inch holes'. Thus when designing products, marketers must first define the core of benefits that the product will provide to consumers. The product planner must next build an actual product around the core product. Actual products may have as many as five characteristics: a quality level, features, styling, a brand name and packaging. product is more than a simple set of tangible features. Consumers tend to see products as complex bundles of benefits that satisfy their needs. PRICE: As mentioned above the 200 ml bottle was available for Rs 98 and 100 ml for Rs 51.But very recently Pantene had reduced the prices and now the same 200 ml bottles are available for Rs 89 and 100 ML FOR Rs 41. P&G has basically adopted Geographical pricing strategy for Pantene.They have set different prices for Pantene in different countries.This is a very good strategic method as it captures the local conditions as well as purchasing power of the local population. When Pantene launched Lively Clean,it adopted Promotional Pricing for it and launched it at an introductory price of R78 for 200 ml bottle It has also introduced Bundle Pricing where it has clubbed two or more products and sold them at a reduced price.But this strategy has not been very successful as it eroded the premium image of the Shampoo and gave the impression of desperation of the company. Around 2 years back in 2006 P&G reduced the rates of Pantene by 16%. By this way what P&G did was cutting its bottle's premium over sachets. At the same time P&G is reducing the price gaps between its own brands. While Pantene and Head & Shoulders were sold at nearly similar price points, bringing down Pantene prices placed it between Rejoice (Rs 39 for 100 ml) and Head & Shoulders (Rs 64 for 100 ml) and thereby segment P&G's shampoo brands at different price points. This strategy is known as Product Line Pricing. Very recently Pantene has changed its pricing approach and experimented with Value Pricing Strategy. In this Procter & Gamble made dramatic and long-term changes in its pricing and promotion strategy during which it boosted advertising while simultaneously curbing its distribution channel deals (in-store displays, trade deals), and significantly reducing its coupon promotions. It is interesting to note that P&G's value pricing strategy regarding Pantene is quite a misnomer. During this period many stores were switching to EDLP (every day low pricing) policies, which meant that consumers would save on

their overall purchase without having to deal shop. In contrast, P&G strategy essentially was a disguised price increase; coupons were cut by 50%, which contributed to an increase in the customer's price paid by 20%. It is possible that P&G lowered their wholesale price, but the retailer only enjoyed higher margins and did not pass the savings on to the customer. Another possibility is that retailers lowered retail prices consistently, following P&G's decrease in wholesale price, but once promotional trade deals are factored in those everyday lower wholesale prices did not result in a lower total price paid. For example, if P&G's old price was Rs20, but gave deals of Rs15, at which price 90% of purchases were made, the wholesale price equaled Rs15.7 (.90*15 + .10*20). If P&G set a "Value Price" point of Rs18, but 100% of purchases we were made at that price, the retailer enjoyed no cost savings-only a cost increase. If P&G had truly offered price cuts their results may have been much different. PROMOTION: The promotional strategy of Pantene is highly useful and effective. Using magazine print advertisements and commercials allows for the opportunity to segment their advertisements by specific magazines, specific TV shows, and specific time slots. These strategies provide Pantene with the opportunity to wisely advertise to their target audience. Pantenes use of advertising with different ethnicities, hair types, and ages has proven to be a critical factor because they are now developing specific hair care line for different types of ethnicities; they were voted Asias number one shampoo, and they are a highly marketable product in Europe. Without promotion this brand would be relatively unknown and its popularity would not be near what has been established with promotion. Many times when a consumer sees a product in the store that they have not heard of they will browse over it and choose a product they know. Consumer and market knowledge are prevalent because Pantene and P&G are built around what consumers want. Public Relations is a large aspect of the P&G/Pantene promotional mix. Proctor & Gamble does things like raising funds for children who suffer from malnutrition in India and Pantene recently put on the Condition for a Cause campaign, donating money to heart disease research. Sales Promotion is also alarge factor for Pantene, they use marketing and business techniques to try and improve consumers lives. They are always finding new and better ways to reach their consumers and between their PR campaigns and advertising they are constantly appealing to consumers and causing them to trust Pantene. Personal selling is not an aspect of Pantenes promotional selling and it would not be wise to incorporate it. Personal selling often comes off as a sleazy salesmans cheap and last minute effort. Pantenes print and TV advertisements are enough for Pantene to bring in new customers and frequently remind its loyal customers that it is still in the stores and going strong. Personal Selling would also be a pricey move that would hinder rather than aid Pantenes efforts. Lastly, advertising is an enormous part of Pantenes promotional mix. Without the current advertising strategies and past ones as well, Pantene wouldnt be the widely known and the The distributor needs to be aware of the brands state in the market, they should have information on the product in order to decide if they want to be associated with that product and if so, they will need to know enough about the product to aid customers in finding a shampoo that is best for the them. The idea would be to establish a relationship with as many retailers as possible to make the brand the recommended one. Consumers need to know as much as possible about the product. They do not want to feel as if the company is hiding something from them and they want to be able to trust the products they are using. Information like the ingredients, different products

the brand carries, efforts made by the brand to help others and humanity are all factors that could affect a sale. Distribution as much information as possible is a good idea for the company. The purpose in using aspects of the promotional mix is to build brand equity, brand awareness, and frequently put our advertisements and name into the public to be seen. The frequency in which the ads are seen is as important as the message we are providing.

PLACE:
Placement (or distribution): refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales. Pantene has an undoubtedly amazing design & distribution channel and this can be Supported by the fact Pantene is one of the most easily available brands in the industry. In 1998-1999. Pantene launched global corporate restructuring program called Organization 2005, and made several changes in structure, work processes and culture to generate greater stretch, innovation and speed to help its products reach the market faster. Pantene retails through Spencers,Reliance Fresh,More,RPG group and wide variety of Kirana stores spread all over the country.

COMPETITIVE ANALYSIS OF PANTENE

Competitors are an essential part of any products scheme of operations.The strategies adopted by competitors decide the operation plans for the product. So,it becomes important to analyze the competitors on the basis of all the criterias. But scope of this project limits us to the competitive analysis based on the 4 Ps frame work.The main competitors for Pantene are Sunsilk from HUL,Fiamma Di wills from ITC,Halo from Colgate Palmolive and Vatika from Dabur India Ltd.

COMPETITIVE ADVANTAGE
Under the marketing concept, companies gain competitive advantage by designing offers that satisfy target-consumer needs better than competitors offers. They might deliver more customer value by offering consumers lower prices than competitors for similar products and services, or by providing more benefits that justify higher prices. Marketing strategies must consider the strategies of competitors as well as the needs of target consumers. Some of the main points that constitute the competitive advantage of P&G in general and Pantene in specific are: P&G is one of the largest FMCG companies in the world. Its main competition is with Unilever which has almost equal presence in the world. Procter and Gambles sales as of November 21st, 2003 reached $44,776 million.

PROMOTIONAL STRATEGY
The promotional strategy of Pantene is highly useful and effective. Using magazine print advertisements and commercials allows for the opportunity to segment their advertisements by specific magazines, specific TV shows, and specific time slots. These strategies provide Pantene with the opportunity to wisely advertise to their target audience. Pantenes use of advertising with different ethnicities, hair types, and ages has proven to be a critical factor because they are now developing specific hair care line for different types of ethnicities; they were voted Asias number one shampoo, and they are a highly marketable product in Europe. Without promotion our brand would be relatively unknown and its popularity would not be near what has been established with promotion. Many times when a consumer sees a product in the store that they have not heard of they will browse over it and choose a product they know. Consumer and market knowledge are prevalent because Pantene and P&G are built around what consumers want. Public Relations is a large aspect of the P&G/Pantene promotional mix. Proctor & Gamble does things like raising funds for children who suffer from malnutrition in India and Pantene recently put on the Condition for a Cause campaign, donating money to heart disease research

PRICING STRATEGY
Procter & Gamble is a giant in household products, and the company which defined many marketing strategies we now take for granted. It was the first company to advertise nationally direct to consumers (in 1880) and it literally created the concept of "soap opera" by sponsoring radio and television dramas targeting women. Other inventions included the first Fluoride-based toothpaste (Crest), the revolutionary synthetic detergent Tide, and the first disposable nappy, Pampers. P&G found life in the first years of 21st century more difficult than it may have expected, with earnings below expectations and a series of management shake-ups as a result of under-performance. The group got back on track during 2002 with the purchase of Clairol and Wella and a renewed focus on core products. Following dynamic performance in 2003 and 2004, P&G demonstrated the strength of its recovery with the announcement in 2005 that it had agreed a deal to acquire legendary personal care products rival Gillette. Advertising Age estimated global measured advertising expenditure of $8.5bn in 2006, making P&G th Procter & Gamble made dramatic and long-term changes in its pricing and promotion strategy for Pantene during which it boosted advertising while simultaneously curbing its distribution channel deals (in-store displays, trade deals), and significantly reducing its coupon promotions. It adopted value pricing strategy wich further influenced its future marketing decisions.

RECOMMENDATIONS
P&G has a dubious pricing strategy.In india sometimes they adopt the premium pricing and at other times they change it to value pricing.This creates confusion in the mind of customer. Our recommendation is that Pantene should stick to one strategy and develop on it. Fluctuating prices have chances to affect the mind of customers negatively.This should be avoided. P&G should keep up the efforts of bringing in more and more innovative products.This is because ultimately nothing works for a company more than its products. Some rumors about the presence of wax in Pantene shampoo affected the market.Such rumors should be severly dealt with as they affect the brand loyalty as well as market share. There were some reports which said that Pantene tests its product on animals which ultimately proves fatal to them.This created a big problem for Pantene by the environmentalists.This project recommends Pantene to go more herbal and environment friendly as it affects the companys image in the long run. Pantene is still not much known in the semi urban India.Stress should be laid on the promotion of Pantene in the interior of country as well.