QUANTITATIVE APTITUDE

MANAGEMENT ASSIGNMENT

SUBMITTED BY –

LISHA ROY_PROCTER &GAMBLE

ENROLLMENT NO.-A30101909040
1st SEMESTER
AMITY GLOBAL BUSINESS
SCHOOL,NOIDA
 CONTENTS

• COMPANY PROFILE…………………..3 - 15

• INDUSTRY PROFILE………………….16 -19

• RESEARCH DESIGN CHOSEN……...20

• RESEARCH PROCESS……………….20-22

• PROBLEM DEFINITION……………….22

• HYPOTHESIS…………………………..22-23
 COMPANY PROFILE

The Procter & Gamble Company

Type Public (NYSE: PG)

Founded 1837
Headquarters Cincinnati, Ohio, USA;
Toronto, Ontario, Canada
Key people Bob McDonald, President,
and Chief Executive.
Industry Consumer goods
Revenue ▲ US$79.0 billion (FY 2009)
Net income ▲ US$13.4 billion (FY 2009)
Employees 138,000
Website www.pg.com

WHO THEY ARE:

Procter & Gamble is world’s largest multinational consumer goods company,and
8th largest market capitalization organization in the world.
Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500, American
multinational corporation headquartered in Cincinnati, Ohio, that manufactures a
wide range of consumer goods. As of 2008, P&G is the 8th largest corporation in
the world by market capitalization and 14th largest US Company by profit. It is
10th in Fortune's Most Admired Companies list (as of 2007).
P&G is credited with many business innovations including brand management
and the soap opera.

History
William Procter, a candle maker, and James Gamble, a soap maker, immigrants
from England and Ireland, respectively, who had settled earlier in
Cincinnati,formed the company initially, who met as they both married sisters,
Olivia and Elizabeth Norris.
As the result of persuation by their father in law,Alexander Norris, Procter
&Gamble was born on October 31,1837, as they became business partners.
By1859,when 80 employees worked for P&G,sales reached 1million dollar.the
company supplied soaps and candles to the Union Army during the American
Civil War.the military contracts won introduced soldiers from all over the country
to P&G’s products,alongwith increased profits.
In 1980s,it began marketing a new product,an inexpensive soap that floats in
water.it was named ‘Ivory’.
In 1987,William Procter’s grandson William Arnett Procter began a profit sharing
programme for its employees,he assumed that by giving the workers stake in the
company,they would be less likely to go on strike.

The company started building factories in other site of USA as the demand was
outgrowing the capacities of Cincinnati.the products were also being diversified.It
also sponsored a number of radio programmes termed as “soap operas”.

With its 1930 acquisitionof Newcastle upon Thomas Hedley Co,it became an
international corporation.numerous new products were introduced over time,like
Tide,Prell,Crest,Bounce,Pampers,Chux.
,.
P&G acquired a lot of companies including Folgers coffee,Norwich eaton
pharmaceuticals,Richadson-Vicks,Noxell,Max Factor,Iams company.

P&G acquired Gillette in January 2005,forming the largest consumer goods

company and placing Unilever in the 2nd place.

P&G has expanded significantly,but its its hesdquaters still remains in Cincinnati.
PURPOSE, VALUES AND PRINCIPLES
PURPOSE
They provide branded products and services of superior quality and value that
intend to improve the lives of the world's consumers, now and for generations to
come. As a result, consumers will reward them with leadership sales, profit and
value creation, allowing people, shareholders and the communities in which live
and work to prosper.

VALUES
P&G is its people & the values by which they live.
They recruit the finest people in the world.they build the organization from
within,promoting and rewarding people without any difference unrelated to
performance.thry work on the conviction that the people of P&G are the most
rewarding asset.
# Integrity :Being right in deeds,honest and straight to esch otheroperating
within the spirit of law,upholding the values nad principles in every decision and
action,staying data-based and intellectually honest in advocatingproposals and
recognizing risks.

# Leadership: Having clear vision of where they are going,focusssing the

resources to achieve leadership objectives and strategies,developing the
capability to deliver the strategies and eliminate organizational barriers.

# Ownership: Accepting personal accountability to meet the business

needs.improve the system and helping others improve their
effectiveness.everyone acts owner,treating the company’s assests as owm and
behaving with companu’s long term success in mind.

# Passion for winning: Determination to be the best,having healthy

dissatisfaction with the status quo, compelling desire to improve and win in the
workplace.

# Trust: Respecting &treating others as they want to be treated,having

confidence in each others capabilities and intentions.,foundation of trust.

PRINCIPLES
~Showing respect for others
~Being strategically focused in the work

~Valuing personal mastery

~Seeking to be the best

~Making the interests of the company nad workers insepsrable

~Innovation is the cornerstone of success

~Making mutual interdependency a way of life

~Staying extremely focussed

DIVERSITY
This is the 2nd time in row that P&G has been recognized by Black Enterprice
magazine one of the 40 Best Companies for Diversity.
The Black Enterprise annual list is compiled by identifying companies that have
demonstrated significant representation of African Americans and other ethnic
minorities in four key areas: corporate board participation, corporate procurement
senior management representation and total workforce.

Operations
The company's operations are categorized into 3 "Global Business Units" with
each Global Business Unit divided into "Business Segments" according to the
company's March 2009 earnings release.

1.Beauty Care
# Beauty segment
# Grooming segment

2.Household Care
# Baby Care and Family Care segment
# Fabric Care and Home Care segment
3.Health and Well-Being
#Health Care segment
#Snacks, Coffee, and Pet Care segment

Procter & Gamble brands:

24 of P&G's brands have more than a $ billion in net annual sales,and another 18
have sales between $500 million and $1 billion.
Billion dollar brands:
1. Always is a brand of feminine hygiene products, including maxi pads,
pantyliners, and feminine wipes.

2. Ariel is a brand of laundry detergent/liquid available in numerous forms and

scents.

3. Actonel is a brand of the osteoporosis drug risedronate co-marketed by

Sanofi-Aventis.

4. Bounty is a brand of paper towel sold in the United States, Canada, and the
United Kingdom (rebranded to "Plenty" in the UK after being sold to SCA
Svenska Cellulosa Aktiebolaget).

5. Braun is a small-appliances manufacturer specializing in electric razors,

coffeemakers, toasters, and blenders.

6. Crest is a brand of toothpaste.

7. Dawn is a brand of dishwashing detergent.

8. Downy/Lenor is a brand of fabric softener.

9. Duracell is a brand of batteries and flashlights.

10. Fusion is a brand of men's wet shave razors and is the quickest P&G brand
to have reached $1 billion in annual sales.

11. Gain is a brand of laundry detergent and fabric softeners.

12. Gillette is a safety razor manufacturer.

13. Head & Shoulders is a brand of shampoo body wash, and deodorant.
Old Spice is a brand of aftershave and shaving cream.
14. Ivory is a soap.

15. Nice 'n Easy is a hair coloring product.

16. Olay is a brand of women's skin care products.

16. Oral-B is a brand of toothbrush.

17. Pampers is a brand of disposable diaper.

18. Pantene is a brand of hair care products (conditioners/styling aids).

19. Prilosec OTC is a brand of heartburn medicine co-marketed by AstraZeneca.

20. Pringles is a brand of potato chips.

21. Puffs is a brand of facial tissue.

22. Secret is a brand of antiperspirant and deodorant.

23. TAG is a deodorant and body spray.

24 Tide is a brand of laundry detergent.

25. Vicks is a brand name of over-the-counter medicines (Formula 44, Sinex,

NyQuil/DayQuil)

26. Wella is a brand name of hair care products (shampoo, conditioner, styling,
and hair color).

27. Whisper is a brand of panty liners sold primarily in Asian markets.

Manufacturing operations are based in the

following regions:
United States
Canada
Mexico
Latin America
Europe
China (31 wholly-owned factories) and other parts of Asia
Africa
Australia
Productions

Procter &Gamble production logo used from 1986 to 2007

Procter & Gamble produced and sponsored the first radio “soap operas“ in the
1930s (Procter & Gamble's being known for detergents (soaps) was probably the
genesis of the term "soap opera").
When the medium translated to television in the 1950s and 1960s, most of the
new serials were sponsored and produced by this company. The serials “The
Young and the Restless” and “As the World Turns” are currently broadcasted on
CBS and are still partially sponsored by Procter & Gamble, while “World Turns” is
now produced by TeleNext Media, Inc. (a unit of Publicis), the successor-in-
interest to Procter & Gamble Productions (although P&G continues to hold the
copyright).

These past serials were produced by Procter &

Gamble:
Another World
The Brighter Day
The Catlins
The Edge of Night
The First Hundred Years
From These Roots
Guiding Light (TeleNext Media-produced in its last 2 years)
Lovers and Friends / For Richer, for Poorer
Our Private World
Search for Tomorrow
Somerset
Texas
Young Doctor Malone

Procter & Gamble also is the first company to produce and sponsor a prime-time
show, a 1965 spinoff of the daytime soap opera “As the World Turns” called Our
Private World. PGP also produced “Shirley”, a prime-time NBC series starring
Shirley Jones, in 1979; it lasted only 13 episodes. They also produced TBS' first
original comedy series,” Down to Earth”, which ran from 1984 to 1987 (110
episodes were produced). They also distributed the syndicated comedy series
“Throb”. Procter & Gamble Productions originally co-produced Dawson's “Creek“
with Sony Pictures Television but withdrew before the series premiere due to
early press reviews. It also produced the 1991 TV movie “A Triumph of the Heart:
The Ricky Bell Story”, which was co-produced by The Landsburg Company.
In addition to self-produced items, Procter & Gamble also supports many
Spanish-language novellas through advertising on networks such as Univision,
Telemundo, Telefutura, and Azteca America. Procter & Gamble was the one of
the first mainstream advertisers on Spanish-language TV during the mid-1980s.
In 2008, P&G expanded into music sponsorship when it joined Island Def Jam to
create “Tag Records”, named after a body spray that P&G acquired from Gillette.

Research

In December 2005 the Pharmaceutical division of P&G was involved in a dispute

over research involving its osteoporosis drug Actonel. The case was discussed in
the media and more recently on a blog of one of the researchers involved.

Environmental research
Researchers at the University of Massachusetts Amherst identified Procter &
Gamble as the 52nd-largest corporate producer of air pollution in the United
States, with roughly 350,000 pounds of toxic chemicals released annually into
the air. Major pollutants indicated by the study were manganese compounds,
sulfuric acid, epichlorohydrin, and bromine.
In 2007 Procter & Gamble pledged to reduce their carbon emissions, mainly
through reduction in packaging along with reduction in water and energy use.
The stated emission reduction goal was 10% by 2012.

Procter & Gamble is one of the founding members of Carbon Disclosure Project's
Supply Chain Leadership Council. Procter & Gamble is one of 12 global
companies on the council whose first course of action is to distribute a survey to
suppliers on the topic of greenhouse gas emissions and climate change.

Procter & Gamble has, for several years, funded a recycling school in the slums
of Cairo, Egypt. Many of the people in the village of Manshiyet Nasser collect
garbage and have done so for decades. Procter & Gamble along with UNESCO
has started the Mokattam Non-Formal Education Project. The project teaches
the people of the village about the business and economics of recycling and how
to properly recycle plastic.
In December 2008, The US Environmental Protection Agency's Design For
Environment program awarded P&G its highest level of recognition, Champion,
for P&G's work in developing safer detergents under the Safer Detergents
Stewardship Initiative (SDSI).

Animal testing
P&G conducts research using animals to demonstrate safety or efficacy of their
raw materials and products. This has led to a worldwide campaign to raise public
awareness and to stop P&G being involved in animal testing. The campaign is
led by Uncaged Campaigns in the UK and Stop Animal Exploitation Now in the
USA. In 2002 P&G was recognized by the Humane Society of the United States
for "advancing alternatives to animal testing".

SWOT ANALYSIS :

STRENGTHS
1.Business and community partnerships

Improving lives in all countries and communities has led to a focus on building
effective business and community partnerships in areas where they can make a
meaningful difference : education,economic development,

2.Leadership focus and accountability

To assess progress and reinforce lesdership accountability for corrective
actions,management shows strong visible leadership,commitment and constant
focus.

3.Talent support and development

P&G recruits the best talents ,leverages the full talent of each individual through
effective assignment and promotion planning processes and executing critical
systems that affect and support retention of employees.employee support groups
and network teams perform effective recruiting,join-up and development efforts.

4.Organizing facts

For many years, P&G has been recognized across the globe as one of the "best
places to work" and for improving lives in the communities where they operate.
This recognition is reflected in many publications, like, Fortune, Working Mother
and Latina Style.

5.Employee networks

Employee support groups and network teams operating throughout the

organization contribute strongly to effective recruiting and development efforts.

6.Inclusive culture

P&G leaders create an inclusive environment that welcomes and embraces

diversity in the employees,regadless of their individual differences, talents or
personal characteristics. This is an environment that provides everyone equal
access to information, opportunities and involvement, so each person learns,
grows, excels and maximizes his or her personal contribution.

WEAKNESSES:
1.The company introduced toll-free numbers for the contumers.but in october
1981,this facility turned into a backdrop for the company as public used it for
enquire about the rumour of the ownership of the company by the Church of
Satan and the president and chief of P&G John Smale being its member.in july
1982,the calls peaked upto 15,000.

2.Although the company changed its logo in 1985,it still appears at the end of
certain commercials in China and Japan,stock certificates and at the entrance of
of some P&G facilities.
3.P&G is one of the largest corporate producers of air pollution.,emitting green
house gases and toxic chemicals.

OPPURTUNITIES:
1.P&G,being a highly diversified organization,can out think,out innovate and out
perform an homogeneous osganization.

2.P&G may understand the needs of the diverse consumers and work effectively
with customers and suppliers to fulfill its values ,principles and purpose.

3. It can delight the consumer with sustainable innovations that will improve the
environmental profile of the products.,and thereby increasing the sales.

4. Working transparently with the stakeholders can enable freedom to innovate in

a responsible way.

5. P&G can focus on shifting its product portfolio to faster growing high margin
businesses.

6.The company may concentrate on its core business (through innovation), to

expand penetration in the developing countries and restructuring its existing
businesses.

THREATS
1.The likelihood of one of their products cannibalizing the sales of another.
the products may directly compete with one another

2.Due to high cultural diversity,problems may arise as a course of miss

communication.

3.As a result of language difference,dubbed commercials may be miss

interpreted.

4.There is an enormous chance of competion in the market at the higher

positions.

5.As the range of its products is very vast,there are even greater number of their
substitutes.

6.A change in the consumers’ taste can affect the demand for the products.
CORPORATE GOVERNANCE
William Cooper Procter thinks if employees are the owners of the
company,corporate governance is at its best.so,he allowed the employees to
have a stake in the company a century ago.he believed that whenemployees
become shareholders,theis interest and company’s interest become inseparable.

P&G’s GROWTH OVER LAST 5 YEARS:

Financial Highlights

FINANCIAL SUMMARY (UNAUDITED)

Amounts in millions, except per share amounts 2009 2008 2007 2006 2005

Net Sales $79,029 $81,748 $74,832 $66,724 $55,

Operating Income 16,123 16,637 15,003 12,916 10,0
Net Earnings 13,436 12,075 10,340 8,684 6,92
Net Earnings Margin from Continuing Operations 14.3% 14.4% 13.4% 12.7% 12.0
Diluted Net Earnings per Common Share from Continuing
Operations $ 3.58 $ 3.56 $ 2.96 $ 2.58 $ 2.4
Diluted Net Earnings per Common Share 4.26 3.64 3.04 2.64 2.53
Dividends per Common Share 1.64 1.45 1.28 1.15 1.03

NET SALES
Net Sales (in billions of dollars)
05 $55.3
06 $66.7 DILUTED NET EARNINGS
Diluted
07 Net Earnings (per common $74.8
share)
08 $81.7
05
09 $2.53
$79
06 $2.64
Diluted Net Earnings (per common
share)
07 $3.04
08 $3.64
09 $4.26

OPERATING CASH FLOW

Operating Cash Flow (in billions of
dollars)
05 $8.6
06 $66.7
07 $74.8
08 $15.0
09 $14.9

Summary of 2009 Results

• Net sales decreased 3% to $79.0 billion.

• Net earnings increased 11% to $13.4 billion..
• Diluted net earnings per share increased 17% to $4.26.
• Cash flow from operating activities was $14.9 billion.

Financial Condition
Financial condition continued to be of high profile as operations generated
substantial cash and accessing capital markets at competitive rates,.the overall
cash status of the company indicates strong business results and global cash
management strategy.

Report Highlights
P&G markets more than 300 brands including 22 billion-dollar brands in more
than 180 countries spanning Americas, Europe, the Middle East and Africa
(EMEA) region, and Asia. The company is engaged in producing beauty, health,
fabric, home, baby, family and personal care products. The company's product
portfolio also includes pet health products, and snacks and beverages such as
coffee. In many of the markets and industry segments, in which P&G markets its
products, it competes against other branded products as well as retailers' private-
label brands.
 INDUSTRY PROFILE

FAST MOVING CONSUMERDS GOODS

INDUSTRY

Fast Moving Consumer Goods (FMCG), are the products that are sold
frequently purchased at relatively low cost. Though the absolute profit made on
FMCG products is relatively small, they generally sell in large quantities, so the
cumulative profit on such products can be large. Examples of FMCG generally
include a wide range of frequently purchased consumer products such as
toiletries, soap, cosmetics, oral care products, shaving products and detergents,
as well as other non-durables such as glassware, light bulbs, batteries, paper
products and plastic goods. FMCG may also include pharmaceuticals, consumer
electronics, packaged food products and drinks, although these are often placed
separately.
FMCG products are generally replaced or fully used up over a short period,
usually a few days or weeks, or months, but within one year.

CATEGORIES OF FMCG INDUSTRY:

Segments Products Major players
Household Soaps and P&G,HUL,Nirma,ITC,Dabur,etc
care detergents,household
cleaners,mosquito repellers
Personal Oral care ,skin care,hair P&G,HUL,ITC,fem
care care,soaps,toiletries and care,lakme,marico,himalaya,emami,dabur,
cosmetics,deodorants,female colgate-pamolive
hygien
products,papperproducts
Food FOOD:staples/cereals,snacks,b ITC,parle-agro,nestle,Britannia,Cadbury
&Beverag akery products,ice India pepsico,dabur
es cfream,chocolates,braded
sugar,branded flour
BEVERAGES:health Coca-cola,
beverages,soft pepsico,dabur,glaxosmithkline,khaitan
drinks,tea,coffee.packaged United breweries
water,liquor,juice.

THE INDIAN FAST MOVING CONSUMER

GOODS INDUSTRY

The size of the Indian fast-moving consumer goods (FMCG) sector is around Rs
600 bn. The personal care segment has been the fastest growing segmebt
showing Barring the fastest-growing personainvolvement of so many brands.it
has experienced a market boom.it has come up as a result of
urbanization,liberalization,increase in income,change in lifestyles,and also
spread of satellite television.moreover,the boom has also been backed by
reduction in excise duty,efforts of personal care companies to woo the middle
class through product and packaging innovations and dereservation from the
small scale sector.

Salient features of the FMCG industry:

#The FMCG industry is the key component of Indian economy,which is foerth in

therow.it pays a great part of Indian GDP and is a direct and indirect employer.its
responsible for 5%of total factory employment in India andcreates employment
for 3 million people.

#FMCG produces the items of every day needs of the people.low priced products
account for he major part of the sales and low and lower middle income groups
produces the sector’s 60% sales.moreover,Indian rural market creats 56% of
total domestic FMCG demand.

#It has significant links with the agriculture sector and 71% of the sales comes
from the agro-based products.it is 2nd to IT sector in creating market capital.it also
has accountable contribution in the total corporate tax,central excise revenue and
state tax revenues.

#The main challenges for the new players are huge investment,strong
distribution channels, for building and growing the brand.

#The sector is characterized by low margins and high volumes.

 #Indian consumer is very price sensitive.The cost increment is partially passed
on to the consumesr in the personal care sector due to effective branding...

#COMPETITION IN THE MARKET

In past,domestic companies were not considered as competitive like the
multinational corporations (MNCs).but at present times,the scenario has changed
to a great extent and it is changing furthermore,with domestic companies like
Nirma,dabur,Marico,himalaya standing up to their MNC counterparts.
Also,competition among the MNCs has increased resulting in shrinkage of
margins.

SWOT analysis of the FMCG industry:

Strengths:

1. Well-established distribution network extending to rural and urban areas.

2. Powerful brands in the FMCG sector.

3. Low price operations

Weaknesses:

1.Low export levels.

2.Small scale sector reservations limit ability to invest in technology and achieve

economies of scale.

3.Several similar products.

Opportunities:

1. Huge untapped domestic market.

2. Export potential.

3. Increasing disposable income levels will result in faster revenue growth.

4. Segmented approach to general trade and modern trade

5. Penetration in rural markets

6.Improving customer services:

#Continuous replenishment operational

#Lower trade stock

#stock freshness

Threats:

1.High Imports level

2.Taxation and regulatory structure.

3.Slowdown in rural demand.

4.Competition from unbranded players in dometic market

5. Removal of import restriction resulting in replacement of domestic products

and brands

6.Bargaining power of consumerrising material,advertisement and distribution

prices

7.Mushrooming of local brands

Productivity of FMCG Sector

28 Feb'2009
Recession report - Indian FMCG sector upbeat
During the recession period,when other major sectors of the international and
national markets were are going through a record global slowdown,the FMCG
industry in India has showed a sustsinable growth in double digits during the first
half fiscal2009 ,supported by healthy sales.
According to the findings,India's fast moving consumer goods industry has so far
been resilient to the slowdown in the economy and a dip in consumer demand. If
we go by the records for October 2008 and estimates for November 2008, the
growth only seems to have got better as compared to the earlier months.

In October 2008, the soap and colors categories recorded a 22% and 27% value
growth respectively. The estimates for November2008 are also good, whereas in
September 2008, the growth was 12% to 13%.

Indian FMCG Industry Set to Grow by 16% during

2008-09
The Indian FMCG sector is expected to grow by 16% in 2008-2009 as a
consequence of rising disposable income,rapid urbanization and changing
lifestyle.

The Federation of Indian Chambers of Commerce and Industry (FICCI) has

predicyed that the Indian FMCG sector sales will go up by 16% during 2008-
2009.
It also revealed that within it,very few sectors will grow more than 20%,
Like tooth powder-22%,shampoos-21.3%,shaving cream-23%,skin cream-
22%,etc.
The estimation is based on rising income level of the common people,which
enable them to spend on more on quality products.people have increased
spending on lifestyle goods.
moreover,India is transforming into an urban country mayching pace with the
western nations.also,the boom in the retail sector as supermarkets,shopping
malls also plays a significant role in nourishing the FMCG sector.
As India holds a greater young age group,the large sized young generation
creats a big demend for luxurious lifestyle products.consumers are the defining
factor of marketing and branding strategies for the FMCGs ,which is thereby
boosting the industry.
.

RESEARCH DESIGN CHOSEN

The research design chosen for this assignment is of Exploratory type.

Exploration is needed when researchers lack a clear idea of the problem they
willmeet during the study.

Exploratory research is flexible,versatile,unstructured and cheaper.it provides in

sights and understanding about the target firm.

The findings are tentative which are generated through secondary data
collection.

RESEARCH PROCESS
1. Problem definition and recognition.
A research generally begins with a question. That question is the synonym for
problem definition. It is the base of a research. Based on that problem a
researcher formulates the objectives and scope of the study. Clearly stated
objectives keep a research project focused. The research question can also be
stated as hypothesis. It is simply the researcher’s belief about a problem, which
he develops during the review of literature.
2. Creating research design
The researcher chooses the research design based on how he would like to
come to a conclusion and whether that research type would satisfy his thirst meet
the objectives and goals for the study undertaken. For this research
exploratory research design has been chosen.

3. Sampling
It involves defining the target population. Types of sampling are random,
stratified, systematic, convenience, judgment, quota and snowball sampling.
Convenience sampling would serve the purpose of this research.

4. Data collection
A research project uses a data collection technique appropriate to the particular
research methodology. Quantitative study employs deductive logic, where the
researcher starts with a hypothesis, and then collects data to confirm or refute
the hypothesis. Qualitative studies use inductive logic, where the researcher first
designs a study and then develops a hypothesis or theory to explain the results
of the analysis.For this research qualitative study would be adopted.

5. Data analysis
These days’ computer software has made the analysis of quantitative data a very
easy task. It is no longer incumbent on the researcher to know the formulas
needed to calculate the desired statistics. Data analysis then leads to findings
and conclusion of the research.

6. Reporting the result

The purpose of reporting is to communicate information, and therefore, the report
should be prepared specifically for the readers of the report

7. Validity and reliability

It refers to the accuracy or truthfulness of a measurement. Reliability is
synonymous with repeatability. A measurement that yields consistent results over
time is said to be reliable.

8. Variability and error

Most research is an attempt to understand and explain variability. . When a
measurement lacks variability, no statistical tests can be performed. When a
researcher finds differences between respondents, they are due to true
difference on the variable being measured.

PROBLEM DEFNITION
Product cannibalization among the various brands of the company and problems
arising in product marketing due to cultural differences

HYPOTHESIS
• Better product orientation with defined characteristics may confirm
increased sales of products.
• Reaching out to the rural customers through various marketing strategies
can boost the net income
• Taking over the local brands may help out in tackling competition
• Targeting the middle class and lower middle class customers can be
helpful in increasing the demand
• Training the employees to learn the local languages can improve
customer relations
• Innovative and economic product launching will attract customers
• Opening exclusive outlets may increase customer satisfaction by easy and
comfortable reach.