ALTERNATIVE COVERAGE MODEL P&G PRODUCTS IN RURAL AREA

OF JHARKHAND

Research Report submitted to Entrepreneurship Development Institute of

India in partial fulfillment of the requirements for the award of

Post Graduate Diploma in Business Management

Submitted by,
Sachin Kumar
Register No.: 09JEPG118
Under the guidance of
Prof. HEMANT KUMAR S
Professor
SBM Jain College
Bangalore

Entrepreneurship Development Institute of India

Ahmedabad
2010

1
 DECLARATION

I hereby declare that the research entitled “ALTERNATIVE

COVERAGE MODEL OF P&G PRODUCTS IN RURAL AREA OF
JHARKHAND” submitted to Entrepreneurship Development
Institute of India in partial fulfillment of the requirements for the
award of PGDBM, is a record of independent research work
carried out by me under the supervision and guidance of Prof.
Hemanth Kumar S, Professor, SBM Jain College, Bangalore. This
work has not formed the basis for the award of any Degree and
has not been submitted previously to any other College/University.

Bangalore,
July____,2010 Sachin Kumar
2
Prof. Hemanth Kumar S
Professor
SBM Jain College
Bangalore

_____________________________________________________________

CERTIFICATE

I certify that this research entitled “ALTERNATIVE COVERAGE

MODEL OF P&G PRODUCTS IN RURAL AREA OF
JHARKHAND” submitted to Entrepreneurship Development
Institute of India in partial fulfillment of the requirements for the
award of PGDBM, is a record of independent research work
carried out by Mr. Sachin Kumar under my supervision and
guidance. This work has not formed the basis for the award of any
Degree and has not been submitted previously to any other
College/University.

Bangalore Prof. Hemanth Kumar S

July____,2010 Professor
3
 ACKNOWLEDGEMENT

Our chief wants in life is somebody who can make us do what we can, and a
true teacher makes it possible by sharing his experience with his student.

I offer my gratitude & privilege to acknowledge indebtedness to my esteemed

guide Mr. Hemanth Kumar for his constant encouragement and invaluable
guidance in the hour of need, without which this project would have never
been completed.

Submitting this project report, I pay deep regards to my Parents whose

blessings & wish provokes my encouragement to make this task a successful
and gives me moral & financial support.

Sachin Kumar

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 CONTENTS

CHAPTER PAGE NO
ACKNOWLEDGEMENT 4
PREFACE 5
OBJECTIVE OF DOING TRAINING 6
INTRODUCTION 7
ORGANIZATIONAL STRUCTURE 8
ABOUT PROJECT REPORT 9
OVERVIEW OF THE COMPANY 10
HISTORY OF P & G 11-14
PRODUCT PROFILE 15-17
STRATEGIC 18-27
CUSTOMER SATISFACATION 28&29
CRM 29
RESERCH MATHODOLOGY 30-32
PROBLEMS 32-44
PROCEDURE 45
FINDINGS 46
DESIGING DATA COLLECTION FORMS/ 46-49

SUGGESTION & RECOMMENDATION 50

ANALYSIS & ABOUT PRODUCTS 51

Top 10 (FMCG) players 52&53
BIBLIOGRAPHY 54

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 OBJECTIVESOF DOING TRAINING

• The foremost reason beyond training is that “marketing is not a more

chance offered to the student but is a unique opportunity of life time
carrier option.” working with the professionals of that field expose
students clearly to the market to learn.

• They can easily learn the differences between the theoretical and
practical life of the business. They get an idea to work, after the
competition of their course.

• A student can easily know the working procedure and technique of the
professionals. He can learn to solve disputes between the
management and the employee, which helps him to tackle Situation
and also knowing after sale services of P&G Distributors regarding
their P&G, Ranchi.

• The guidance of Mr. Hemant Kumar S carried my project under his

able fulfillment of my training. I worked under different areas in
Jharkhand. This help in collection of primary data.

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 INTRODUCTION

Marketing is the most dynamic and challenging function of modern business.

In the age of globalization, there is cutthroat competition. There are so many
products in the market. It consists of those activities that direct the flow good
and services from producer to consumer. The success of business depends
on selling of goods on large scale and it same time it most import satisfaction
and marketing in the delivery of standard of living to the society. The main
objective of the business organization is to create a product and sale it into
the market at a price that would yield net profit. A selling was an easier
preposition in the earlier age when there was not much of competition and
almost no choice was available to the customer but today the situation is
completely changed, today the age of competition where the particular brand
available in market in the different brand name and manufacture by different
companies. Now a customers has number of choice available in the market
and are has to choice a product according to his or her choice and the size of
the product.

This project is aimed to find out the “Alternate coverage model of P&G
products in the rural areas of Jharkhand” and searching for the probable
wholesalers or stockiest in those areas for the P&G company.

Survey shows that customer goods companies spend on promotion tool in a

given order.
a) Sale promotion
b) Personal selling
c) Adverting
d) Public relation

Effective communication is the essence of promotion. Marketing is incomplete

without effective communication with the protective buyer about the right
product at right time that is available at right place.
Communicating the product, its features, etc to the right target customer by
formulation right message in the language that understands by them.

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 ORGANIZATION STRUCTURE

Organization structure is basis of framework within which the manage

decision making behavior take place, Structure basically deals with
relationship. It is an important scientific concept. All science tries to discover
the structural relationship in the phenomena in which they are interested.

For example –Biologist wants to know the structure of cells; the astronomer
wants to the structure of the universe. The economist seeks to discover the
structure of a labor market or money flow patterns.
Structure is pattern in which various parts or components are interrelated or
interconnected. This organization structure is the pattern of relationship
among various components or parts of organization.
The organization structure can be viewed as established pattern of
relationship among the components of organization, relationship among these
studies. It is patterning of this relationship some degree of patterning which is
referred to as organization structure.
Design of basic structure in which such issues as how the menu of the
organization will be desired and assigned among various positions, group,
division, department etc; and how to the co-ordination necessary to
accomplish total organizational objective will be achieved.
It is very difficult to study the organization structure separately from its
functional. For example Katz and khan obscene as follows in the context. A
social system is a structuring of event of happening other than of physiological
parts and its, therefore has to structure apart from its functioning. According to
Dalton have defined organization structure as follows:
Organization structure refers to the differentiation and integration of activation
and authority, me and relationship in the organization. Differentiation is the
difference is cognitive and a national orientation between manager in different
functional department and differences in organization structure among these
department. Integrator refers to the quality of the state of collaboration that
required achieving unity of effort by the organization.

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 WHAT IS PROJECT REPORT

A project report is written account of various activities to be undertaken by the

institution, organization or a firm and the technical, financial, commercial and
social viabilities.
In other word the project report states as to what business is intended to be
undertaken by the entrepreneur and where it would be physically possible,
financially via, commercially profitable, and socially device sale to do such a
business.

The preparation of such a statement serves following three important actions:

a) It facilitated planning of business by setting guideline for future action.

b) It provides a framework for the presentation of the information

regarding business require by the government for the grumping license
etc.

c) It helps of procuring finance from various financial institution and bank,

which ask for written information given any assistance.

Thus, various analysis such as product analysis and market survey

determining the size of the firm plant, location, selection, and organization of
the physical facilities, financial information, building organization such as,
launching the enterprise, tax planning etc. may put them in the from of project
report.

9
 OVERVIEW OF THE COMPANY

The P&G community consists of over 135,000 Employees working in over 80

countries worldwide. What began as a small, family-operated soap and
Candle Company now provides products and services of superior quality and
value to consumers in 140 countries.
Internships are the best way to showcase our company, work and people --
We strongly believe that providing meaningful intern work is the best way to
let candidates preview what life and work will be like at P&G. We treat interns
as employees who mean they have access to the resources of the company,
are expected to perform to our high standards and are given the same kind of
performance feedback we give our full-time employees not once, but twice
during the summer.
Few companies can follow P&G with this strategy because their intern
conversion rates to full-time are too low to justify the tremendous cost and
training load such a large program places on the organization. Not so at P&G.
We have one of the highest intern conversion rates we are aware of; usually
more than double what is typical. It is a global goal to source between 25-30%
of our full-time hires from the former intern pool. We also turn to these former
interns to help lead our recruiting efforts at their school, including identifying
new ideas and participating in pre-recruiting events.
On a P&G internship you will see through your own eyes the kind of
challenges we face everyday. If you are brimming with enthusiasm and have
a passion to learn we can offer you a unique opportunity to try out P&G for
yourself. By experiencing real work and real challenges that are integral to our
business you will be given the opportunity to demonstrate your skills and see
what life at P&G is really like, the good and the bad.
You will participate in introductory training sessions on arrival and from then
on we will guide and coach you as well as giving you access to our internal
Learning and Development programmers. Within your work you will be
expected to demonstrate initiative and leadership whilst learning on the job.
Our internships generally run for 45 days in the summer period.

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 HISTORY OF P&G

William Procter, a candle maker, and James Gamble, a soap maker, formed
the company known as Procter & Gamble in 1837. The two men, immigrants
from England and Ireland respectively who had settled earlier in Cincinnati,
might never have met, had they not married sisters, Olivia and Elizabeth
Norris.

Since both their industries used similar resources, the Panic of 1837
caused intense competition between the two and as a result it led to discord
with the family. Alexander Norris, their father-in law decided to call a meeting
where he convinced his new sons-in-law to become business partners. On
October 31, 1837, as a result of the suggestion, a new enterprise was born:
Procter & Gamble.

The company prospered during the nineteenth century. In 1859, sales

reached one million dollars. By this point, approximately eighty employees
worked for Procter & Gamble. During the American Civil War, the company
won contracts to supply the Union Army with soap and candles. In addition to
the increased profits experienced during the war, the military contracts
introduced soldiers from all over the country to Procter & Gamble's products.
Once the war was over and the men returned home, they continued to
purchase the company's products.

In the 1880s, Procter & Gamble began to market a new product, an

inexpensive soap that floats in water. The company called the soap Ivory. In
the decades that followed, Procter & Gamble continued to grow and change.
The company became known for its progressive work environment in the late
nineteenth century. William Arnett Procter, William Procter's grandson,
established a profit-sharing program for the company's workforce in 1887. He
hoped that by giving the workers a stake in the company, they would be less
inclined to go on strike.

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Over time, the company began to focus most of its attention on soap,
producing more than thirty different types by the 1890s. As electricity became
more and more common, there was less need for the candles that Procter &
Gamble had made since its inception. Ultimately, the company chose to stop
manufacturing candles in 1920.

In 1979, RHL launches VICKS ACTION 500. It also commenced campus

recruitment in this year and began recruitment from IIM campuses as Day I
recruiters.

In 1989, Procter & Gamble India (after change in name from RHL) launches
Whisper - the breakthrough technology sanitary napkin which will revolutionize
the Indian feminine hygiene category.

In 1991, Procter & Gamble India launches Ariel detergent - another of P & G's
global, breakthrough technology products. Also, in the same year the
Mandideep (Bhopal) Factory starts its operations.

In 1992, The Procter & Gamble Company, US increases its stake in Procter &
Gamble India to 51% and then to 65%.
In 1993, Procter & Gamble India divests the Detergents business to Procter &
Gamble Home Products. In the same year, Procter & Gamble India starts
marketing Old Spice Brand of products.

In 1996, Goa Honda Factory starts its operations, manufacturing Vicks

VapoRub. In 1998, Goa Kundiam Factory starts its operations, manufacturing
Whisper pads.

In 1999 Procter & Gamble India Limited changed the name of the Company to
Procter & Gamble Hygiene and Health Care Limited.
In the same year Mediker Shampoo business is divested to Marico Industries.

In August 2000, Vicks Action 500+ was relaunched in an attractive True Blue
pack. The change from green to blue packaging brings Vicks Action 500 + in

12
line with the new global packaging colours used for the Vicks ranges of
products worldwide.

In April 2001, Procter & Gamble Hygiene and Health Care Limited reduced
the prices of Whisper Ultra from Rs.80 to Rs.65 for a pack of ten, making it
affordable to Indian consumers.

In August 2002, Procter & Gamble Hygiene & Health Care Limited announced
the launch of Whisper “Money Back” offer, which offers consumers a chance
to experience Whisper’s superior performance, helping them forget the
wetness; and if they are not satisfied, they get their money back.

In July 2002, Procter & Gamble announced the launch of Vicks Action500+
Night tablets, a specially designed cold medicine that gives consumers multi-
symptom relief from bothersome cold Symptoms like headache and breathing
difficulty, hence allowing restful sleep at night.

In October 2002, India’s number one cough and cold brand – Vicks –
celebrated its 50th Year in India and launched Dual Golden Jubilee Offers to
reward Indian consumers for 50 Years of trust and loyalty. The first was a
Free Vicks Inhaler worth Rs. 25 with every purchase of a 50gm Vicks
VapoRub Jar (free gift worth 40% of the price of Vicks VapoRub), and the
second was a 30gm Vicks VapoRub Jar at the current price of a 25gm jar,
providing 20% Vicks VapoRub Free.

In October 2003, Procter & Gamble Hygiene & Healthcare Ltd. launched New
Vicks Formula 44 Cough Syrup which uniquely provides safe, effective and
long lasting relief for up to eight hours from tough persistent coughs due to
colds, as compared to four-hour relief provided by a single dose of most
popular cough syrup brands.

In May 2004, Procter & Gamble Hygiene & Healthcare Ltd. we commenced
test marketing an economically priced and competitively superior performing,
WHISPER Choice pads in the southern states of Karnataka, Tamil Nadu,

13
Andhra Pradesh and Kerala at an affordable introductory price of Rs.26 for ten
pads, WHISPER Choice provides three distinct benefits: 1) superior protection
vs. other pads in its price range; 2) With its unique dri-weave top sheet it
provides one tenth the wetness of ordinary (non woven) top sheet pads and 3)
double adhesive coverage to ensure that the pad stays in place much better
than ordinary pads.

Profile: Gillette (Procter and Gamble)

Who would have guessed that shaving supplies and batteries would be so
profitable for Gillette? As of January 2005, Procter & Gamble bought Gillette
for $57 billion. The company's responsible action on issues such as animal
welfare, recycled paper use in packaging, greenhouse gas reduction, and
workplace diversity have earned it praise. Although Gillette has made
significant efforts to increase its corporate responsibility, the company's
abuses are also significant. Gillette's toxic emissions, lack of respect for
human rights, and limited transparency are all of concern.

The Environmental Working Group accuses Gillette of being one of the top
violators of the Clean Air Act, having engaged in illegal dumping of waste in
Santa Monica; CA. Gillette also took part in corporate efforts to sue
Massachusetts over a law preventing state agencies from doing business with
Burma. Gillette's new home is with Procter & Gamble. Bottom line: contact
Gillette and demand a higher standard of sustainability. View Procter &
Gamble's profile for information on Gillette's parent and to find campaigns to
support.

About Gillette (Procter and Gamble)

Gillette manufactures cosmetics, personal care and consumer products

throughout 25 countries. In 2004, the company recorded revenues of
$10.06 billion and employed 28,700 people. Gillette is based in Boston.
In October 2005 Proctor & Gamble purchased 100% of Gillette.

14
 BRANDS OF P&G IN INDIA:-

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 Esseces® and Clairol Nice
‘n’ Easy®. In India, P&G beauty care business comprises of Pantene, the
world’s largest selling 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.

• Pantene Pro V
• Head & Shoulders
• Rejoice

Baby Care

• Pampers

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Feminine Care

Indian women share a special relationship with Whisper, since it spells ‘Total
Freedom and Protection’ for them especially during those crudial days of the
month.

• Whisper

PRODUCT PROFILE OF P & G

DETAILS OF DIFFERENT PRODUCTS OF P & G:-

PRODUCTS OF P & G:-

 ORAL – B BRUSH SHINY CLEAN

• Oral – B Shiny clean

• Oral – B Fresh clean
• Oral – B Classic
• Oral – B Kids
• Oral – B Junior
• Oral – B Advantage
• Oral – B Vision

 ARIEL (FABRIC & HOME DARE)

• (18g, 200g, 500g, 1kg, 1.5kg, 500g Box Ultramatic, 1kg

Box Ultramatic,)

 TIDE (FABRIC & HOME DARE)

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 • (13g, 20g, 200g Bag, 370g Bag, 500g Bag, 1kg Bag, 2kg
Bag, 4kg Bag, 4kg Bag , Tide Bar 75g, 125g, 250g)

 WHISPER (FEMALE CARE)

• Whisper Maxi 10’s/20’s

• Whisper Maxi x l 10’s/20’s
• Whisper Slim Wings 8’s
• Whisper Ultra Wings 7’s /15’s

• Whisper Ultra xl Wings 7’s/15’s

• Whisper Choice Wings 8’s
• Whisper Choice with Tubes 8’s/15’s

 PAMPERS ACTIVE BABY (BABY CARE)

• Pamper Small 6-11 kg (28’s pack)

• Pamper Medium 6-11 kg (26’s pack, 6-11 kg 68pack)
• Pamper Large 9-11 kg (22’s pack, 6-11 kg 60’s pack)
• Pamper x Large xl 14 kg (20’s pack)

 PANTENE (HAIR CARE)

• Smooth & Silky (7.5ml, 100ml, 200ml, 400ml, 90ml)

• Hair Fall Control (7.5ml, 100ml, 200ml, 400ml, 90ml)
• Lively Clean (7.5ml, 200ml)
• Anti Dandruff (7.5ml, 100ml,200ml)
• Long Black (7.5ml, 100ml, 200ml)
• Hair Fall Protection (4ml)

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 HEAD & SHOULDERS (HAIR CARE)

• Intensive Solution (Dry/DamagedHair7.5,70,200ml)

• Intensive Solution (Normal Hair 7.5,70,200ml)
• Ocean Fresh (7.5ml, 100ml, 200ml)
• Smooth & Silky (7.5ml, 100ml, 200ml)
• Silky Black (7.5ml, 100ml, 200ml)
• Nourishing Aloe Vera (7.5ml, 100ml, 200ml)
• Clean & Balanced(7.5ml, 100ml, 200ml)
• Refreshing Menthol (7.5ml, 100ml, 200ml)
• Natural Shine (7.5ml, 100ml, 200ml)
• Basic Clean 4ml
• Thick & Strong 4ml

REJOICE (HAIR CARE)

• Rich (4ml, 7.5ml, 100ml, 200ml, 400ml)

• Silky Clean ((7.5ml, 100ml, 200ml)
• Complete ((7.5ml, 100ml, 200ml, 400ml)

 VICKS (HEALTH CARE)

• Vicks Action 500

• Vicks Inhaler Jumbo

 SYSTEMS (GROOMING) GILLETTE®

• Gillette Mach3 (Cartridge 2’s, 4’s)

• Gillette Victor Plus
• Gillette Sensor Excel Razor
• Gillette 7o’clock pii™

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 • Wilkinson® Sword
• Wilkinson® Sword Saloon Pack
• Gillette Presto

 PERSONAL CARE

• Gillette Series Gel & Splash

• Gillette After Shave
• Gillette Shave Brush
• Wilkinson shave brush

 DURACELL BATTERIES

Analysis about the product:-

Soaps
The product categories can be classified into three segments; premium (Lux,
Dove), popular (Nirma, Cinthol), and economy (Nirma Bath, Lifebuoy). The
price differential between the premium and economy segments is about 2X.
The popular and economy segments account for about 4/5ths of the entire
market for soaps.

 Penetration of toilet soaps is high at 88.6%. However per capita

consumption levels remain low India's per capita consumption of soap at 460
gms per annum is lower than that of Brazil at 1,100 gms per annum.

 Raw Materials:- 80% of the raw materials used in soap are oils. Since
animal fats (which are used worldwide and are far superior to vegetable oils
and also cost effective) are banned in India, Indian soap manufacturers are
forced to use vegetable fats and hence settle for a poorer quality of soap.
Various kinds of oils such as rice bran, palm, soyabean, neem, karanji, olive,
kopra etc. are used for manufacturing of soap, depending upon its positioning.
The most commonly used oil is rice bran, followed by palm. Other oils are also
added but in a small quantity to get different variants of soaps.

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 Rice bran and palm oil are the most common base oil used in nearly all
soaps, Apart from the base other additives used are perfumes, colour and
other more expensive oils in small quantities. Since these additives are added
in small quantities they do not make much difference to the cost structure.
Therefore the contribution (excluding packaging cost) on premium soaps vis-
à-vis the popular soaps is substantially higher.

 Distribution network

Soaps are available in 5 m retail outlets in India, 3.75 m of which are in the
rural areas. Therefore availability of these products is not a problem. 75% of
India's population is in the rural areas; hence about 50% of the soaps are sold
in the rural markets.

 Growth

Rural demand growth is expected to occur mainly with consumers moving up

towards premium products. But in the past, the proportion of premium soaps
to economy soaps has not changed much, in volume terms. This is because
as some consumers move up the value chain with increase in disposable
incomes, some consumers move down looking for cheaper substitutes as
prices move up. This has been the case especially, as growth in soap prices
has generally outpaced overall consumer inflation.

 Detergents

The Indian fabric wash market consists of synthetic detergents (comprising

bars, powder and liquids) and oil-based laundry soaps.

 Although the per capita consumption of detergents in India (2.7 kg pa) is

comparable to some countries like Indonesia, China and Thailand (around 2
kg pa), it is lower than in others such as Malaysia, Philippines (3.7 kg) and the
USA (10 kg). The Indian detergent market is expected to grow at 7-9% pa in
volume terms.

 The synthetic detergent market can be classified into premium (Surf, Ariel),
mid-price (Rin, Wheel) and popular segments (Nirma), which account for 15%,

20
40% and 45% of the total market, respectively. The product category is fairly
mature and is dominated by two players, HLL and Nirma. Nirma created a
revolution in the market by pioneering the concept of low-cost detergents.
Currently, the market is highly segmented with the differential between the
premium and popular segments at almost 7X.

 Growth

High consumer awareness and penetration levels will enable the market to
grow at an average 8-10% per annum with slightly higher growth in the rural
areas. Higher penetration stems from popularity of low-cost detergents.
Hence, besides increase in per capita consumption, there is tremendous
scope for movement up the value chain.

HLL, Nirma and P&G are the major players in the market with 40%, 30% and
12% share, respectively. While HLL dominates the premium segment, Nirma
is the leader in the popular segment.

 Personal Care Products

The annual value of personal products business in India, including oral care,
hair cares and skin cares products, is currently estimated to be Rs 54.6 bn.

 Just five years ago personal products were considered to be luxury items
and attracted a high excise duty of 120% (except the oral care category).
Gradual taxation reforms in India since 1991 have lowered the excise duty
rates to a reasonable 30%, making these products more affordable. At the
same time, rising income levels have led to rising aspirations on the part on
Indian consumers. These factors have been the catalysts in the exponential
growth rate in the personal product category over the past five years.

 Personal care products are further divided into 6 categories:

 Oral care
 Hair care - oils
 Hair care - shampoos
 Skin care

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 Cosmetics
 Feminine Hygiene

OralCare
The oral care market can be segregated into toothpaste (60%),
toothpowder (23%) and toothbrushes (17%). While 60% of toothpaste
is sold on the family platform, around 35% is sold on cosmetic
propositions. On the other hand, while toothpowder accounts for 52%
of the market, red toothpowder accounts for 40% and black
toothpowder accounts 8%. The penetration level of toothpast/powder in
urban areas is 3X that in the rural areas. Traditional materials such as
neem and tobacco are popular for cleaning in the rural areas,
Frequency of usage for toothpaste is only 1.5 times among other
consumers, compared with 2 times in the developed world. Per capita
consumption of toothpaste is only 70 gm compared with 300 gm in
Europe and 150 gm in Thailand.

Given the low per capita consumption and penetration rates, toothpaste
demand is mainly being driven by the overall market growth of 8-10%.
Toothpowder growth is also being driven by the rural segment.

 Hair care - Oils

The hair oil market is huge, valued at Rs 6 bn. Due to the varied
consumption habits of consumers across the country, where coconut
oil and edible oil are interchangeably used, the size of the market is
likely to be higher than estimated. More importantly, the market is
growing at an impressive 6-7% in volume terms despite the high
Penetration level.

Usage of hair oil is a typical Indian traditional habit. It is perceived to

offer benefits of nourishment, hair strengthening, faster and better
growth, and reduce the problem of falling hair. There are two types hair
oil available in the market; coconut oil and non greasy perfumed oil.
Coconut oil comprises 2/3 rd of the total market and the balance

22
 comprises the non greasy perfumed oil.

Usage of hair oil is an everyday habit with 50% of the population out of
which some perceive that massaging the head with hair oil has a
cooling impact. The penetration of hair oil is fairly high at around 87%
and evenly distributed among the urban and rural areas.

 Hair Care – Shampoos

The shampoo market in India is valued at Rs 4.5 bn with the

penetration level at 13% only. The market is expected to increase due
to lower duties and aggressive marketing by players Shampoo is also
available in a sachet, which is affordable and makes upto 40% of the
total shampoo sale.
The Indian shampoo market is characterised by a twin-benefit platform:
cosmetic and anti-dandruff. It is basically an upper middle class
product, as more than 50% of the consumers use ordinary toilet soap
for washing hair.
While the awareness level is high, the penetration level is very low
even in the metros which is only 30%. Urban markets account for 80%
of the total shampoo market, The penetration level is rapidly increasing
due to decline in excise duty, which was 120% in 1993 to 30%
currently.

 Skin Care

The skin care market is at a very nascent stage with basic

requirements of the consumers being protecting the skin from cold and
dryness in winter, and improving fairness of the skin. Most of the
product categories are niche segments.

While the awareness rate is high in both urban areas accounting for
60% and rural areas accounting for 30%, the penetration level is low for
both. This is because of apprehensions that usage of skin care
products may benefit in the long run due to the chemical contents.

23
 Many households prefer to use traditional and natural home made
products.

Since the market is at a very nascent stage with very low penetration
levels, the growth rates are expected to be higher at 24-255 over the
next five years. New players such as Avon and Oriflame have entered
the market with the natural ingredient benefit platform, which could
further spur growth.

 Cosmetics
The cosmetic segment primarily comprises of colour cosmetics (face,
eye, lip and nail care products), perfumes, talcum powder and
deodorants. All these are very small segments.

Talcum powder is the most popular cosmetic product in India. This

market is estimated at Rs 3.5 bn and is yet growing at 10-12% pa.
Awareness is very high at 80%, with a penetration of 45.4% in urban
areas and 25.2% in rural areas. Pond's dominates the talcum market
with a 70% share followed by Johnson & Johnson, which has a 15%
market share.

Attar and alcoholic perfumes each account for 50% of the fragrance
market estimated at Rs 3 bn. In the alcoholic perfume market, 1/3rd
represented by an unorganised, with the balance largely imported. The
June 98 budget halved duties to 50%. Lakme has a minor presence in
the segment.

Perception of damage to skin on account of chemical ingredients

restricts usage of face care products. The nailpolish market is the
largest at Rs 1.25bn followed by the lipstick market at Rs 0.7 bn. All
segments in this category are growing at Rs 25-30%.

Deodorants have a very negligible presence in the Indian market with

an estimated of Rs 0.3 bn. Worldwide, deodorants is the largest market

24
followed by skin care, shampoos and toothpaste. HLL has launched a
couple of products in this segment.

Feminine Hygiene Most women use cloth during their menstruation

days. This is because price is the biggest entry barrier. A pack of 10
sanitary napkins would cost Rs 30-40. Therefore, average spending
during the menstruation days would be around Rs 48, which is
expensive by Indian standards.

25
 STRATEGY

Definitions for strategy are as varied as for marketing. Long-term planning is

always at the core, and a difference is either made to the level of decision-
making – top management for strategy – or to the level of detail involved, as a
difference to tactics. Develops Drucker’s distinction “doing things right” and
“doing the right things” to distinguish between operations management and
strategic management respectively (Drucker 1973, p. 481). Strategic
management means creating a strategy to ensure future viability of the firm.

 Determination of the basic long-term goals and objectives of an

enterprise, and adoption of courses of action and the allocation of
resources necessary for carrying out these goals. (Chandler 1962)

This definition of strategy as an organizational process has remained

dominant to this day. Wright et al define strategy as Top management’s plans
to attain outcomes consistent with the organization’s missions and goals.
(Wright, Kroll, and Pringle 1992)
Mintzberg et al (1998) make a difference between strategy as a plan When
ahead a pattern when behind – a realized and an intended strategy.
Besides the common definition of a plan and a pattern, they offer a
perspective to strategy as an emergent phenomenon, in contrast to deliberate
actions. Furthermore, they distinguish strategy as a position:

“Strategy is the creation of a unique and valuable position, involving a different

set of activities”. (Michael 1996, p. 61) Fourth, they introduce a fifth definition
of strategy, as a perspective: “As perspective, in contrast, strategy looks in –
inside the organization, indeed, inside the heads of the strategists, but it also
looks up – to the grand vision of the enterprise.”

26
For the purposes of this study, an agreement as to the best exact definition for
strategy is unnecessary. The term will in this thesis cover both the traditional
definitions based on long-range plans and their fulfillment. However, since the
StratMark perspective specifically includes all components of the value
network, the scope of strategy in this study must cover long-range network-
level plans of the top management for operational, financial and managerial
efficiency and effectiveness. Of the five perspectives discussed by Mintzberg
et al, the definition will mostly exclude the “ploy” view to the domain of tactics.
Strategy is seen as a high-level process, involving the entire value network,
initiated by top management and heralded by every member of the
organization as the Strategy it is realized as. There is little need for distinction
between the StratMark group’s view on strategy and strategic marketing: the
perspective of strategic commercialization integrates the two.

STRATEGIC MARKETING

Defining and redefining strategic marketing is a major component of this

study. Throughout the analysis, the definitions for and streams of thought
within strategic marketing will be reflected on in terms of a pre-set
understanding of strategic marketing, namely that of the StratMark research
group. This is done in order to comply with the role of this thesis as a
background study for the project’s other components – the shared
terminological and theoretical base on which to build. The Initial StratMark
Perspective to Strategic Marketing Next, we define the StratMark idea of
strategic marketing that the study, as indeed the entire research project,
begins with. The key goals for this study are the further development of this
initial understanding through research into conceptual parallels and by the
identification of related streams of thought and theory.
StratMark derives their understanding of strategic marketing from what have
been presented as the corresponding perspectives to marketing and strategy.
In a sense, the StratMark perspective to strategic marketing constitutes a
theory of the firm: a goal setting, strategic framework for describing and
analyzing a company.

27
The StratMark perspective to strategic marketing agrees with the concerns put
forth by Hayes and Abernathy (1980): Marketing’s role has been
overshadowed at higher levels of management by those of financial managers
and lawyers. Marketing skills need to be brought to basic research,
technology, product development and introduction. Hayes and Abernathy
recognize the developments brought on with the development of the market
concept, but criticize shunning the customer concept and the emphasis on
short-term cost reduction and what is nowadays referred to as “quarter-to-
quarter capitalism”:
By their preference for servicing existing markets rather than creating new
ones and by their devotion to short-term returns and “management by
numbers”, [managers] have effectively sworn off long-term technological
superiority as a competitive weapon. In consequence, they have abdicated
their strategic responsibilities. Hayes and Abernathy further contend that the
general level of innovative product and market development, and thus long-
term competitive advantage, is severely impeded by “market-driven
strategies” and ROI oriented control systems. Moreover, they recognize that
at the strategic level, no problem will be exclusively of production, finance or
marketing. The StratMark perspective is based on this distinction: strategic
marketing is focused on the top management’s long-term vision for
competitive advantage through product innovation, other “functions” being
fully subservient to this process.
The first is a descriptive-prescriptive dichotomy of concept purposes; of goal
phenomena and concepts interfaces for indirect study and influence of those.
The second dichotomy is based on differences in the logical and philosophical
foundations. Howard focuses on developing a framework of normative
descriptive methods. As a benchmark, he refers to the well-established
axiomatic descriptive theory of competition in the field of industrial
engineering.
The wide range of prescriptive concepts, both empirical and axiomatic, is
recognized. Howard’s concern is with widening the scope of marketing to a
theory-of-the-firm level: “The logic of marketing would be much surer if an
axiomatic approach so well exemplified by economic theory were available.”

28
Strategic planning is the managerial process of developing and maintaining a
viable fit between the organization’s objectives and resources, and its
changing market opportunities the aim of the strategic planning is to shape
and reshape.
The company’s business and products so that they combine to produce
satisfactory profit and growth.
Strategic marketing is found everywhere. Yet, one will rarely come across two
identical definitions. Managers, leaders, researchers and business apostles
alike impose different meanings on the phrase. In usage, it sprawls across the
fields of marketing, product promotion, management and strategy. There is a
distinct need for a clarification. Finnish business has relied first on raw
materials and then on advanced technology for global competitive advantage.
The sustainability of the present situation is suspect. For increased global
competitiveness, Finnish companies must involve a new appreciation of
marketing in their business and ways of thinking.
This thesis purports that the understanding of strategic marketing remains, to
this date, fragmented. Several general understandings of the popularize on to
achieve its goal. Strategic marketing should form the core of leadership,
based on which a company’s organization, activities and relationship network
are constructed and managed. For sustainable competitive advantage, focus
should be on effective strategic commercialization, supported by a pervasive
marketing spirit and solid Technological foresight. A company will need to
have resolve and boldness to be marketing-driven, not market-driven.

This is broken down to four areas of research:

i. Understanding the current state research into strategic marketing and

marketing performance.

ii. Benchmarking Finnish companies with international best practices.

iii. The role of marketing spirit in business: creativeness, innovativeness,

courage, innovativeness, vision and cognition.

29
 iv. A critical reflection on “theory versus practice”

The outcomes of research in working package 1 can be summarized in the

form of a question: “In practice, what should happen in Finland?” The Second
working package concerns the link between marketing and business
performance. Research is sub-divided as follows:

i. Evaluating and defining the strategic role of marketing.

ii. Developing both qualitative and quantitative metrics for marketing

competence within a broader definition of strategic marketing.

iii. Linking strategic marketing practices and business performance.

iv. Developing new tools for marketing and business performance Again,
research within the working package aims to answer a question. As
interaction between the two work packages; this thesis falls in the first
component of working package, with a flexible

New Business Plan: - The Company’s plans for its existing businesses will
allow it to project total sales and profits. Often, however, projected sales and
profits will be less than what corporate management wants to achieve over
the planning horizon. After all, the portfolio plan will include diverting some
businesses, and these will need replacement. If there is a gap between future
desired sales and projected sales, corporate management will have to
develop or acquire new businesses to fill this strategic planning gap.

A company can fill the gap in three ways.

i. The first is to identify further opportunities to achieve growth within the

company’s current businesses (intensive growth opportunities).

30
 ii. The second is to identify opportunities to build or acquire businesses
that are related to the company’s current businesses (integrative
growth opportunities).

iii. The third is to identify opportunities to add attractive businesses that

are unrelated to the company’s current businesses (diversification
growth opportunities).

CUSTOMER SATISFACTION IS THE KEY SUCCESS IN

COMPETITIVE FMCG MARKET

The FMCG (Fast Moving Consuming Goods) industry has witnessed an

unprecedented growth in the last 20years. The Indian market opened up to
the global majors as a result of the policy of liberalization, privatization and
globalization. A country’s billion people work up to the world outside. The
Indian customer is now exposed to FMCG product with new pack and variants
of top quality standards and upgraded technology, their innovative designs
and dynamic performance. The market changed from a seller’s to buyer’s
market. The customer welcomed this ‘change’ and enjoyed the ‘choice’ made
available to him by the ‘competition’. These three c’s:- change, choice and
competition revolutionized the profile of the customer, gave him focus where
everyone in the industry is emphasizing on his need, wants and demand.
For both manufacturer and dealers, the customer is the only source of sale,
profit and growth. Therefore the customer is the business. The share of the
customer is now more important than the share of the market.

What is the customer’s expectation? :- A customer want a total solution of

his transport needs in the form of high value product and high value services
with both functional and emotional benefits and with integrated services and
facilities, both tangible and intangible, all packed to give him a wonderful sales
experience.
Earlier the customer was satisfied just with the product. The perception of
“feel” of the customer is an important as the product and the services offered
to him. The customer is not just looking for highly technical product and

31
superior support services but also a relationship resulting from a multiply of
company activities that combine to forge a strong bond with customer-one that
is emotional as well rational.
Customer satisfaction is no longer enough to survive in today’s competitive
market place. Those in the FMCG trade are looking for a customer’s delight
and further to that adding little extra that makes the customer to think “wow
that has great” or “wow that’s what I call service”.
“Customer satisfaction is a journey rather than a destination.” This means an
opening process to meet the customer’s need and behaviors in order to
develop stronger relations with them. Good customer relationships are the
heart and soul of business success. And all the FMCG Industry is focusing on
the processes D.S to build relationship with the customer by knowing his
product Preferences, budget and shopping habits and also understanding the
customer’s profitability.
Getting a customer is not difficulty, what is difficult is retaining him, and the
key to this is “maximizing the value of customer relationship”.
All manufactures are competing to give the best of the product by offering
superior quality services and a long-term relationship bondage with the
customer.
In the current FMCG industries scenario the distributor is single point
of contact (SPOC) for all customer, whether it is selling or servicing. So to
reach out to any customer, the manufacturer has to focus on the channel.
The distributor and the manufacturer are in business together to meet the
needs of the customer profitably. They both can only achieve this profitability if
they are bale to create superior customer value require in the process of
acquiring and retaining customer. It is the active stakeholder in this distribution
channel of the manufacturer.
A distributor and the customer are mirror image in the terms of expectations.
So a smooth selling would demand and equilibrium between a distributor’s
expectations from the manufacturer and the customer personal expectation
form the distributor, there will be little difference.
The manufacturer and the dealer’s relationship should generate profit and the
distributor customer relation should additionally being satisfaction and delight
in the process of creating superior service values. A harmonious relationship

32
among the three can jointly and effectively meet the customer expectation. It
is enough to give the tangible to the customers. It is equally important to
provide the intangibles in the order to affect the sale delivery. The experience
has to be such that the customer is elevated from the deriver seat to a king
throne. The further increases the importance of the distributor attaching an
emotional thing to sale process. There the distributor plays in retaining and
acquiring customer by using his skill, knowledge, and attitude. He wants the
integrated service of sale, service, and claim settlement all under one roof.

CRM (CUSTOMER RELATIONSHIP MANAGEMENT)

Customer relationship management means many companies are intent on

developing stronger bonds with their customer. This is the process of
managing detailed information about individual and carefully managing of the
customer “touch Points” with the aim of maximizing loyalty.

Today’s customers are becoming harder to please. They are smarts, more
prices conscious, more demanding, less forgiving and they are approached by
many challenge, according to Jeffery Gitoyer is not to produce satisfied
customer, several competitors can do this, this challenges is to produce
designated and loyal customer.
Motive of the P & G Company is how to make the better relationship with
customer.

33
 RESEARCH METHODOLOGY

The other objectives of this project are as mentioned below:-

i. This study about different schemes that various companies are

providing to the distributors.

ii. What is the margin they are providing to the distributors?

iii. Which company is giving the best secondary scheme to the

distributors?

iv. Which company is having the most transparent scheme?

SAMPLING AND FIELD WORK

Sampling and field work plan regarding this project are as follows:
 Sorting out the distributors and retailers.
 Preparation of questionnaire.
 Visit to the sorted out distributors and retailers.
 Taking out the query from the distributors and retailers according to
the questionnaires.

DATA COLLECTION INSTRUMENT

A questionnaire is a simple formalized schedule to obtain record specific and

relevant information with tolerable accuracy and completeness.

SAMPLE SIZE AND SELECTION

34
The simple size of the survey chosen was 150 distributors & retailers (both
mixed) from the available bunch of distributors & retailers.
SURVEY AREA

i. Morhabadi, Ranchi (Jharkhand)

ii. Nagra Toli, Ranchi (Jharkhand)
iii. Kanta Toli (Jharkhand)
iv. Tamar, Ranchi (Jharkhand)
v. Burdhawan Compound (Jharkhand)
vi. Lowadih (Jharkhand)
vii. Karamtoli (Jharkhand)
viii. Lalpur (Jharkhand)
ix. Adelhatu (Jharkhand)
x. Murhu, Khunti (Jharkhand)
xi. Silli (Jharkhand)
xii. Torpa, Khunti (Jharkhand)
xiii.Pithoria, Ranchi (Jharkhand)

METHODOLOGY FOR PROCESSING THE DATA

More than one method was used for procuring and analyzing the primary
data.

DATA COLLECTION METHODS

In the report only primary data has been taken into account. The primary data
were collected through questionnaire and personal interview.

APPROACH
The communication means adopted for obtaining the prerequisite data consist
of the following:

35
i. Observation : Though perceiving situation and action of
Distributers

ii. Questioning : Though personal self- administered multiple

choices questionnaire with few open ended
questions dichotomous and trichotomus
questions are also applied.

DATA COLLECTION SOURCES

Regarding this project various data has been obtained or collected from
the following person in Jharkhand.

 Distributors

 Retailers

MAJOR PROBLEM WE FOUND DURING SURVEY

 Less margin

 Small Retailers are not satisfied

 Little transparency in schemes is required

 Company Executives are not visit

36
 A SURVEY REPORT ON DIFFERENT RURAL AREAS OF
RANCHI DISTRICT.

Alternate coverage of P&G model in Jharkhand

(Rural Areas)

LOCATION - Morhabadi

Shop Name of Outlet Contact No. Address

No.
1. Sumit Store 0651-2551829 New Area Morhabadi
2. Sourabh Cosmetics 9835322014 New Area Morhabadi

3. Vishal Gen. Store 9234086231 New Area Morhabadi

4. Bina Store 9386111885 New Area Morhabadi

5. Sri Durga Store N.A. New Area Morhabadi

6. Riya Gen. Store N.A. New Area Morhabadi

7. Prasad Gen. Store 9939536845 Antu Chowk Morhabadi
8. Hanuman Store N.A. Antu Chowk Morhabadi

9. Ajay Bhandar N.A. Antu Chowk Morhabadi

10. Bhutpurwa Bhandar 9934371705 Antu Chowk Morhabadi

11. Jaishree Shoppee 9934071368 Antu Chowk Morhabadi

12. Prasad Bhandar N.A. Antu Chowk Morhabadi

13. Binay Bhandar 0651-2550424 Antu Chowk Morhabadi

14. Hanuman Store N.A. Antu Chowk Morhabadi
15. Divya Store 9334434126 Antu Chowk Morhabadi

37
 Alternate coverage of P&G model in Jharkhand
(Rural Areas)

LOCATION – Nagra Toli, Ranchi

Shop Name of Outlet Owner Contact No. Address

No.
1. Mukesh Gen. Store Mukesh Kumar 9334077813 New Nagra Toli
2. Chaubay Store Dilip Chaubay 9334072162 New Nagra Toli
3. Santosh Store Santosh Kumar 9199395443 Nagra Toli
4. Welcome Store Kishna 9955119489 Nagra Toli
5. Deepak Store Tinku 9308640249 New Nagra Toli
6. Kalyani Store Rajesh Kumar 9934398709 New Nagra Toli
7. Sinha Store Dhawal Sinha 9905728567 New Nagra Toli
8. Vinod Store Vinod Kumar 9973670496 Near Nagratoli
9. Ghosh Gen. Store Dula Ghosh 9934516977 New Nagra Toli
10. Ram Bhandar Dhananjay N.A. New Nagra Toli

38
 Alternate coverage of P&G model in Jharkhand
(Rural Areas)

LOCATION – Kanta Toli, Ranchi

Shop No. Name of Outlet Contact No. Address

1. Minal Bhandar 0651-6990133 DangraToli Chowk,
2. S. K. Bhandar N. A. DangraToli Chowk,
3. Gupta Store 9835994342 Peace Road, Dangratoli Chowk

4. Bharat Store N.A. Peace Road, Dangratoli Chowk

5. Sahil Store N. A Peace Road, Dangratoli Chowk
6. Saha Store 9204479282 Kanta Toli,
7. Asha Store N. A Kanta Toli,
8. Master Telecome N. A Kanta Toli,

39
 Alternate coverage of P&G model in Jharkhand
(Rural Areas)

LOCATION - Tamar

Shop Name of Outlet Owner Contact No. Address

No.

1. Sanjay Store Jayant Kumar Sahu N.A. Bazar Area

2. Jain Store A.K.Jain 06530-252407 Purani

09934582825 Chowk
3. Dayal Store Swami Dayal N.A Purani
Chowk
4. Sharma Store Kush Sharma N.A. Purani
Chowk
5. Gupta Gen. Store Shyam Kr. Gupta 9934582825 Ridy More

6. Ashok Store Ashok Sharma N.A. Bazar Area

7. Gagan Bhandar. Dadan Sharma N.A. Purani

Chowk
8. Sona Gen. Store Mahabir Sahu N.A. Ridy More

9. Deepika Sudhanshu Babu N.A. Purani

Cosmetics Chowk
10. Keshri Kirana Prahalad Keshri N.A. Main Road

11. Tarun Store Tarun Kumar Jain 9431157018 Main Road

40
 Alternate coverage of P&G model in Jharkhand
(Rural Areas)

LOCATION – Burdhawan Compound, Ranchi

Shop Name of Outlet Owner Contact No. Address

No.
1. Seema Store Vikash Kumar 9835528999 J. C. Road
2. Amit Store Amit Kumar 9430752132 J. C. Road
3. Krishna Store Rajesh Kumar 9334812220 J. C. Road
4. Sankar Bhandar Sankar Lal Vijay 9835326320 Dhobi Ghat
5. Sri Gajanan Bhandar Gajanan N.A. Dhobi Ghat
6. Sri Om Store Mr. Om N.A. Dhobi Ghat
7. Gupta Store Rakesh Gupta N.A. Dhobi Ghat
8. Shyam Bhandar Shyam Kumar N.A. Dhobi Ghat
9. Akshay Bhandar Akshyap Ksyap 9831520923 Lower Burdhawan
10. Shankar Store Shankar Kumar N.A. Lower Burdhawan
11. Jai Prakash Bhandar Jai Prakash 9334433951 Lower Burdhawan
12. Uttam Store A. C. Jain 9835310092 Lower Burdhawan
13. Gaurav Shoppee Gaurav Kumar 9934345126 Burdhawan Compound
14. Akash Store Chourashia 0651-6991168 Burdhawan Compound

41
 Alternate coverage of P&G model in Jharkhand
(Rural Areas)

LOCATION – Lowadih, Ranchi

Shop Name of Outlet Contact No. Address

No.
1. Khushboo Store 92790447333 Samlong

2. Agrawal Store N. A. Lowadih Chowk

3. Naveen Gen. Store N. A. Lowadih Chowk
4. Saraisha Khaini 0651-6991003 Lowadih Chowk
5. Ashok Gen. Store N. A. Lowadih Chowk
6. Dev Store 9234096284 Lowadih Chowk
7. Ajit Gen. Store 0651-2260911 Lowadih Chowk
8. Dilip Store 0651-2260864 Lowadih Chowk
9. Chhotanagpur Foods 9234099834 Lowadih Chowk
10. Sah Store N. A. Lowadih Chowk
11. New Corner 9934156922 Lowadih Chowk

Alternate coverage of P&G model in Jharkhand

42
 (Rural Areas)

LOCATION – Karam Toli, Ranchi

Shop Name of Outlet Contact No. Address

No.
1. Amit Bhandar 9234095588 Morhabadi Road
2. Muakan Store 0651-3242407 Karam Toli Chowk
3. Prakash Store 9334457685 Karam Toli Chowk
4. Krishna Store N.A. Ahir Toli
5. Sri Ganesh Bhandar 9835757679 Ahir Toli
6. Prakash Gen. Store 9304037355 Ahir Toli
7. Raghunandan Store 0651-256442 Ahir Toli
8. Dinesh Store 9905737424 Ahir Toli
9. Rishi Store 9934313784 Birga Colony
10. Tiwari Store 9709156246 Birga Colony
11. Sinha Store 0651-3207625 Professor Colony

Alternate coverage of P&G model in Jharkhand

43
 (Rural Areas)

LOCATION – Lalpur, Ranchi

Shop Name of Outlet Owner Contact No. Address

No.
1. P. K. Sales Dhananjay Kumar 9835960007 Behind PNT Colony
2. Mantu Store Ranjan Kr. Gupta N.A. Behind PNT Colony
3. Survi Store Pramod Kr. Bharti 9308073771 Behind PNT Colony
4. Popular Store S. K. Agrawal 9235083467 PNT Colony
5. Pawan Store Suresh Prasad 0651-3240582 PNT Colony

Alternate coverage of P&G model in Jharkhand

(Rural Areas)

LOCATION – Adelhatu, Ranchi

Shop Name of Outlet Contact No. Address
No.
1. Magadh Kirana Store N.A. Adelhatu
2. Mona Gen. Store N.A. Adelhatu
3. Hanuman Bhandar 9234099432 Adelhatu
4. Rakesh Gen. Store 0651-3203883 Adelhatu
5. Prasad Gen. Store 9835918751 Adelhatu
6. Swastik Store N.A. Sendwar Toli
7. Kanhaiya Bhandar 9234094565 Sendwar Toli

Alternate coverage of P&G model in Jharkhand

(RURAL AREA)
44
 LOCATION - MURHU

Shop Name of Outlet Owner Contact No. Address

No.
1 Gupta Store Shiv Kumar Gupta 9835730584 Main Road Murhu

2 R.K. Store R.K. Somani N.A. Main Road Murhu

3. Rupesh Gen. Store Rupesh Kumar N.A. Main Road Murhu

4. Jai Store Jaiveer Sahu N.A. Main Road Murhu

5. Sahu Gen. Store Ashok Sahu N.A. Main Road Murhu
6. Gupta Gen. Store Ranjeet Gupta 9431943213 Main Road Murhu
7. Sanjay Gen. Store Sanjay N.A. Main Road Murhu
8. Choudhary Bhandar Pradupn Choudhary N.A. Main Road Murhu
9. Sharma Gen. Store Akhilesh Sharma N.A. Main Road Murhu

10. Mamta Bhandar Anil Prasad N.A. Bazar Chowk

11. Vivek Store Vinod Srivastav N.A. Bazar Chowk

12. Deepak Gen. Store Deepak Kr. Gupta N.A. Bazar Chowk

13. Das Provisional Store Ghanshyam Das N.A. Bazar Chowk

14. Parmatma Bhandar Parmatma Thakur N.A. Bazar Chowk

15. Ganesh Kirana Dukan Akhilesh Shrama N.A. Main Road Murhu

ALTERNATE COVERAGE OF P&G MODEL IN JHARKHAND

(Rural Areas)

45
 LOCATION – Silli

Shop No. Name of Outlet Owner Address

1. Sweta Gen. Store Sujit Kumar Bada Bazar

2. Vinod Gen. Store Vinod Kumar Bada Bazar
3. Nawal Gen. Store Nawal Kumar Bada Bazar

4. Gupta Gen. Store Rajiv Gupta Bada Bazar

5. Annapurna Bhandar Shankar Prasad Bada Bazar
6. Soni Gen. Store Vijay Lata Bypass Road
7. Shiv Kirana Store Umesh Pd. Shah Bypass Road
8. Shubham Shrinagar Sanjay Kumar Bypass Road
9. Shankar Gen. Store Shankar Kumar Bypass Road
10. Chandan Gen. Store Yashwant Sharma Bypass Road

ALTERNATE COVERAGE OF P&G MODEL IN JHARKHAND

(Rural Areas)

46
 LOCATION - TORPA

Shop Name of Outlet Owner Contact No. Address

No.
1. Das Gen. Store Mukul Das N.A Main Road Market

2. A.K.Bhandar A. K. Choudhary 9431546156 Main Road Market

3. Basant Store Basant Kr. Jaiswal 9304565462 Main Road Market

4. Saif General Store Asif N.A Main Road Market
5. Main Road Market
Saif Gen. Store Vivek Kumar 9835175615
6. Prasad Store Akhilesh Pd. N.A Main Road Market
7. Aggrawal Store Nagendra Prasad N.A Main Road Market
8. Chourasia Kirana Store Rajeev Chourasia N.A Main Road Market
9. Main Road Market
Rai Bhandar Tarkeshwar Prasad 9334623558
10. N.A Main Road Market
Sruti Bhandar Vivek Kumar
11. N.A Main Road Market
Kumar Gen. Store Arvind Kumar
12. N.A Main Road Market
Sandhya Stores S.J. Store
13. 9334607040 / Hill Chowk, Nagar Bhawar
Uma Traders Pradeep Gupta
9334062220
14. N.A Hill Chowk, Nagar Bhawar
Lalji General Store Sandri Devi
15. N.A Hill Chowk, Nagar Bhawar
Gayatri Gen. Store JagdishPd.
16. Hill Chowk, Nagar Bhawar
Prasad General Store Jagdish Prasad 9304092677
17. Hill Chowk, Nagar Bhawar
Mehta Store Ashok Mehta N.A
18. Hill Chowk, Nagar Bhawar
Manoj General Store Ashok Kumar 06538-233594
19. Choudhary Bhandar S. K. Choudhary 9431193336 Hill Chowk, Main Road

ALTERNATE COVERAGE OF P&G MODEL IN JHARKHAND

LOCATION - PITHORIA

47
Shop Name of Outlet Owner Contact No. Address
No.
1. Kishan Sahu Store Rama Sahu 9939143910 Bazar Tad Market

2. Pancham Store Pancham Kumar 9835124371 Bazar Tad Market

3. Manorma Bhandar Baleshwar 9905598192 Bazar Tad Market

Prasad
4. Amar Kirana Dukan Awdhesh Kr. N.A Bazar Tad Market
Singh
5. Laljee Gen. Store Suresh Kumar Lal 9308017571 Bazar Tad Market

6. Ruby Grocery Mithilesh Sharma N.A Bazar Tad Market

Store
7. Arun Gen. Store Ranjeet Gupta N.A Bazar Tad Market

8. Maa Durga Sanjeev Kumar N.A Bazar Tad Market

Bhandar
9. Rai Gen. Store Pratab Rai N.A Maharana Pratap Chowk

10. Saraswati Kirana Prabhat Ch. Das N.A Maharana Pratap Chowk
Store
11. Mandal Gen. Store Sunil Kr. Mandal 9835581626 Maharana Pratap Chowk

12. Singh Gen. Store Subodh Kumar N.A Maharana Pratap Chowk

13. Kumar Bhandar Pradeep Kumar N.A Maharana Pratap Chowk

14. Roop Sringar Sanjay Keshri N.A Maharana Pratap Chowk

15. Mala General Manisha Das 0651-2818596 Maharana Pratap Chowk

Store
16. Manju Store Baleshwar N.A Maharana Pratap Chowk
Prasad
17. Alok Kirana Dukan Arun Kumar 9835764285 Chaurasia Chowk

18. Manoj Bhandar Manoj Sahay N.A Chaurasia Chowk

19. Balak Kirana Ram Babu N.A Chaurasia Chowk

20. Keshri Store Niranjan Keshri 9931165853 Chaurasia Chowk

21. Sangam Store Dipesh Sinha N.A Chaurasia Chowk

PROCEDURE

In order to reach my objective, I have conducted a marketing survey in

different area of Jharkhand.

48
The survey process involves many steps because mere collection of
information does not complete the survey. The information must be collected
and proceed in a scientific manner to make it more mining full and useful.
Some of the major steps in my research are given below:-

(1) PROBLEM FORMULATION:-

The precise definition of the problem helps in determining the techniques to

be used, the extent of information to be collected etc; so I got an identified
objective to work on my training.

(2) DECISION ON FACT-GATHERING PROCESS:-

After defining the problem the second step, is to find out the strategic for
getting information. So, it was being decided that I will meet the clients and
collect the information regarding grossary retailer (Jharkhand). Also in the
mean time I have prepared a set of questionnaire to be filled by the clients
together the information I need.

(3) DATA COLLECTION:-

Usually survey techniques are used for gathering information. So, I collected
the required data through my questionnaire.

(4) THE MARKETING SAMPLES:-

The sample is a small group taken from the total population. Sampling is
essential to substantiate and interpretate the data. For my project I had got a
sample from different area of Jharkhand.

(5) DATA EVOLUTION:-

The data collected can’t be simply accepted because they might contain
unnecessary and/ over or under emphasized facts. So, it is a necessary step
for me to evolve the necessary data from the collected data.

(6) INTERPRETING THE DATA:-

Correct interpretation of data makes the research meaning full and purpose
full. So, my next step was to interpret the necessary data.

(7) REPORT PREPARATION:-

The final step in marketing research is summarizing the result of the research
and marketing a report. Hence, I have made this report as an essential part of
my project training.

49
FINDINGS:-

In order to reach by objective, I have visited many area of Jharkhand. My visit

to the whole seller and retailer shop consists of collecting the necessary

50
 information’s from them through my questionnaire and an informal talk with
them.

I have visited many outlets of retailors in search of the biggest wholesellers of

the visited areas of (Jharkhand), based on the data collected from the various
outlets. The result in percentages and represent them graphically for the sake
of convenience.

DESIGNING DATA COLLECTION FORMS

The primary data was collected on the basis of survey method. In this case
the survey method was used because it was necessary to know about the
attitudes, opinions and reaction of the responded, which are intangible state of
mind and cannot be observed otherwise questionnaire method was used of
primary data. The secondary data, in some was collected from the training
manuals, websites and other record of the companies. The data was first
edited and then tabulated for calculation.

DATA ANALYSIS AND INTERPRETATION

1. From where you get knowledge, idea, information about

P&G and Gillette product?

51
(i) Daily Newspaper [31] (ii) T. V. [80]

(iii) Radio [13] (iv) Others [36]

Daily
Newspaper 31
T.V. 80
Radio 13
Others 36

Maximum sources of information comes from T.V,and

thus we can say that
for coverage in the rural area more and more
emphasis should be given on TV advertisment

2. Do you know about P&G and Gillette product?

52
 (i) Yes [140] (ii) No [20]

According to survey in rural area I found that 87% population know about
the product
this show the good significant of future growth .

3. From where you get the P&G product?

53
 (i) Whole sale [53] (ii) Retailer [40]

(iii)Company [36] (iv)Not Sale [21]

Wholesale 53
Retailer 40
Company 36
Not Sale 21

about 36% are from the retailer and wholesale have got the maximum
sources of buying

4. Is company executive visit at your store?

54
(i) Yes [64] (ii) No [97]

Yes 64
No 97

5. How the P&G executives take order from your store?

55
 (i)By Using Detailer [0] (ii)White paper [36]

(iii)By Phone [32] (iv)simply asking [20]

(v)Palm Top [63]

Using
Detailer 0%
White
Paper 36%
Phone 32%
Simply
Asking 20%
Palmtop 63%

56
6. When does the P&G product Delivered at your store?

(i)After taking Order[30] (ii)Same Day [39]

(iii)Evening [10] (iv)carry himself the product [18]

(v)Next Day.[63]

After marketing
over 19%
same day 24%
Evening 7%
Next day 11%
carry himself the
product 39%

According to survey,I found that P&G products are delivered on the same day after ordering
to the distributer,about 39% stores tells that they carry their products with themselves and
delivered according to the order placed,24% stores get their products by same day of ordering

57
7. What is the ratio of visit at your store?

(i) Daily [7] (ii) Weekly [60]

(iii) Fortnightly [63] (iv) Monthly [20]

Daily 6%
weekly 38%
monthly 41%
fortnigh
tly 15%

58
8. Are you satisfied with the service provider by the delivery vein?

(i) Yes [50] (ii) No [13]

Yes 80%
NO 20%

59
9. Is your store new store?

(i)Yes [50] (ii) No [100]

Yes 33%
No 67%

60
10. To whom you think the close competitor of P&G?

(i)HUL [76] (ii)J&J [18]

(iii)Garnier [56]

HUL 51%
J&J 12%
Garnie
r 37%

61
11. Do customers ask himself for P&G Product?

(i) Yes [89] (ii) No [53]

Yes 63%
No 37%

62
12. Did you get any type of scheme & benefit from our company?

(i) Yes [80] (ii) No [70]

Yes 53%
No 47%

63
13. How you feel by selling P&G product?

(i) Excellent [17] (ii) Very Good [24]

(iii) Good [71] (iv) Average [15]

(v) Bad [15]

Exelle
nt 12%
Very
good 16%
Good 50%
Avera
ge 11%

64
 bad 11%

14. Which P&G product you sold most in a month?------------------------

(i) Tide [60] (ii) Panteen [12]

(iii) Head & Shoulder [42] (iv) Wishper [26]

(v) Vicks [12]

Tide 39%
panteen 8%
Head &
Shoulder 28%
Wishper 17%

65
 Vicks 8%

15. Do customers have any grievances regarding our product?

(i) Yes [30] (ii) No [120]

Yes 20%
No 80%

66
16. Remark--------------------------------------------------------------------------

(i) Good [56]

(ii) Very good [74]

(iii) Bad [20]

Good 38%
Very good 49%
Bad 13%

67
 According to graphical analysis we can state that P&G products satifies 49%
in the rural area.

SUGGESTION AND RECOMMENDATION

Being the second largest player in FMCG products especially in detergent

market at national level, P&G still looking for its place in rural market. It has
dynamic strategy to cope up with the cut throat competition in urban area.
Only able to make its presence felt in small packages. As everybody knows
that 63% of the Indian population lives in rural area, and if P&G Company
wants to big player in India, or in Jharkhand the company have to make the
suppliers, or distributors in rural area for smoothly supply of products in rural
area.

68
The Internal Environment

SWOT Analysis

Strengths: P&G Company has a high-level management team and systems,

an excellent team of direct marketing, the most advanced technology, a
successful case, the right to use trademarks and patents and abundant funds.

Weaknesses: Sales management system is imperfect, market coverage is

not comprehensive, development of new technologies for long time in less
than a certain experience, the patent to expire, and slow cash flow.

Opportunities: Global market share can also increase, the scale of our
competitors is not so big, comply with the standards of cooperation can
enhance the competitiveness of products, adequate labor, economic
development will increase demand for a new government, and other

69
 preferential policies.

Threats: Market is nearly saturated, strong competitor research and

development capabilities to meet the new standards to increase cooperation
costs, and personnel flows, the unemployment rate would reduce the
growth of demand, the new policy also stimulate new competitors’ adding.

Analysis of Internal Resources

Resources: P&G Company has excellent cash flow, strong balance sheet,
superior past performance, superior CEO characteristics, experienced
managers, well-trained, motivated, loyal employees, special skills and
learning, excellent reputation, superior technology development, excellent
structure and systems, high-performance culture, etc.

Core Competence: The first core competence of P&G is the strongest

ability of research and development, and the second is Brand Management.

Competitive Advantage: The differentiation of products’ characteristics is

the competitive advantage of P&G.

Top Ten Players in FMCG Sector

70
S. NO. Companies
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8 Britannia Industries

9. Procter & Gamble Hygiene and Health Care

10. Marico Industries

P&G

Procter & Gamble Latin America Procter & Gamble Germany

71
 Procter & Gamble India Procter & Gamble Japan

Procter & Gamble France Procter & Gamble Europe

Procter & Gamble UK

Procter & Gamble Co

Type Public (NYSE: PG)

Founded 1837

One Procter & Gamble Plaza, Cincinnati, Ohio, USA 45202

Headquarters
A. G. Lafley, Chairman and CEO
Key people
Consumer goods
Industry
▲ US $76.476[1] billion (2007)
Revenue
▲ US $10.340[1] billion (2007)
Net income
138,000
Employees
Website www.pg.com

Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500, American global
corporation

BIBLIOGRAPHY

FOR BOOK REFERENCES

 MARKETING MANAGEMENT (PHILIP KOTLER)

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