Case Study Of P & G

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Project 2-3-4 & Challenges
Apart from doubling revenues from the affluent Indian markets which are classified as India 1, P & G wants to increase its market share in India 2 &3. It believes that for India 2 it intends to double revenues by concentrating on products such as Tide and for India 3 it can increase its revenue by adopting low cost distribution models. In order to achieve these targets P & G would have to continuously innovate more low price customer need specific products rather than have price wars and / or it will have to enter new segments possibly bottom of the segments. It has to use its distribution networks efficiently. It had built a great distribution network in villages and had no product targeting this segment which is …show more content…

Traditionally P & G India has stuck to these products and hasn’t introduced too many variants or product lines. In fact HUL has more products and variants. Instead of focusing on new product lines and variants P&G has focused in developing distribution networks within rural and India and isn’t lagging behind HUL much. HUL unlike P & G launched its products and changed their product brand position quite frequently. P &G understood the customer needs such as the need for fragrances and tried to incorporate the same in their Ariel power compact launched in 1999. Most of P & G’s products are focused on premium and mid segments where as HUL had products in all three segments, low, medium and premium. Premium segment was mostly driven by concentrated machine detergents and so when Ariel Bar was launched in this segment it failed. P & G withdrew Ariel (premium) bar and at the same time introduced Tide bar targeting 95% of the other households in India where washing clothes is a combination of powder and soap. This was an innovative product which had green speckles called Whitens, which helped in whitening of the fabric. Later in 2009 it launched a powder called “Tide Naturals” which claimed to have less irritation on hands and garnered good customer response and to combat this HUL reduced the price of

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