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Procter and Gamble

MARKETING IMPLICATION

The marketing mix is a business tool used in marketing and by marketing


professionals. The marketing mix is often crucial when determining a
product or brand's offering, and is often synonymous with the four
Ps: price, product, promotion, and place; in service marketing, however, the
four Ps have been expanded to the Seven Ps or eight Ps to address the
different nature of services.
In recent times, the concept of four Cs has been introduced as a more
customer-driven replacement of four Ps. And there are two four Cs theories
today. One is Lauterborn's four Cs
(consumer, cost, communication, convenience) another is Shimizu's four Cs
(commodity, cost, communication and channel).

Product Strategy

Product classification service consumer good


Product differentiation- form , features , performance , reliability
Superior technology
CSR initiatives
Attractive packaging
Catchy taglines
Established as a brand itself

Pricing Strategy

Optional feature pricing


Product- line pricing
Cost- plus pricing
Competitive pricing
Distribution pricing

Place Strategy

In store placement strategy


Already existing strong links in urban area
Rural penetration
Develop marketing channels as strong and penetrated so that it would
gain access to remote areas
Strategic location of warehouse
2

Increase wholesale dealers in small towns so that they can go to the


nearby villages
National coverage would be dealt with by increasing the companys
warehouses and creating C&F agents in the smaller cities

Promotion Strategy
Media
Radio
Hoardings
Consumer promotion
Fragrance oriented and eco friendly
Newspaper
Various promotional offers

P & G is spending 30-35 % of its sales in Advertisement and


Promotion which is highest in the industry, HUL expends only 15% of
sales on Advertisement and Promotion.

Positioning:
The place the product occupies in consumers minds relative to competing
products. Typically defined by consumers on the basis of important
attributes. Involves implanting the brands unique benefits and
differentiation in the customers mind. Positioning maps that plot
perceptions of brands are commonly used.
Differentiation can be based on

Products
Services
Channels
People
Image
Positioning and Branding Strategy

Developing the Strategy through use of the Creative Work Plan


1 Key Fact:
A single piece of known information relating to the brand which is
agreed to be the leading factor influencing or describing the brand
performance. It may be information about the brand itself, the
competition, the customer; innovation etc. but it must be a single fact.
2 Problem the advertising must solve:
This is a consumer problem. It describes the awareness, perception or
behavior of the prospective user which has resulted in the Key Fact
and which we wish to change.
3 Advertising Objective:
Usually, simply the counterpart to the problem, although there are a
great many distinct options. E.g. "Persuade consumers to try my
brand" Or "use more of my brand." Or "use my brand in a different
way." Persuade them that my brand is a viable alternative to brand x".
4. Strategy:
a) Prospect DefinitionBoth demographics and psychographics.
b) Principal Competition.Not just a list of competitors but a description of the segment from
which we wish to obtain business
c) PromiseThe single most persuasive agreement one can advance for the brand
framed with the customer and the competition in mind.
d) Reason WhyThe strongest piece of support for the promise. Occasionally there
may be more than one piece of support but never a list
e) Tone/CharacterThe tone that messages should convey to provide personality to the
message and bring it alive. This is not executional.
As you can see, the format is very simple. However, like everything at
4

Procter & Gamble, the use of the simple tool is handled by experts in
the field. That is what makes the tool so effective.

Channels of distribution
The path through which goods and services travel from the vendor to
the consumer or payments for those products travel from the consumer to the
vendor. A distribution channel can be as short as a direct transaction from
the vendor to the consumer, or may include several
interconnected intermediaries along the way such as wholesalers,
distributors, agents and retailers. Each intermediary receives the item at one
pricing point and movies it to the next higher pricing point until it reaches
the final buyer. Coffee does not reach the consumer before first going
through a channel involving the farmer, exporter, importer, distributor and
the retailer. Also called the channel of distribution.

Distribution network of FMCG:-

MDCEO
I/ANU
NTSD
UCLT
RFOE
IANT
SBCS
T/UU
ETMS
EHOR
POR
L/P
AUS
NS
TE
R

P&G keeping broaden the market by slashing its no. of distributors


down to one-tenth of its size.
85% of its sales come from the top 30 towns & its current volume did
not justify a large distributor network.
So P&G will now have one distributer who will operate like super
stockist. Which help to replenish its distributors more frequently and
reduce their average stock level.
P&G keep growing on ROI (Return on Investment) which resulted in
each distributer trying to extend its reach to push up volumes.
With a limited number of distributers, P&G will also not need to
invest in C&F agents.
P & G follows wholesale format of distribution for Vicks.
P&G is giving 6% margin to the distributor

Promotional Strategy
6

Thank You, Mom Campaign


P&G's corporate campaign kicked off in April with its first ``Thank
You, Mom'' TV spot.
It also has a dedicated ``Thank, You Mom'' Facebook page and app
that allows people to send ``Thank you'' messages to their mothers.
P&G is sponsoring more than 150 global athletes.
P&G is sponsoring a few athletes like boxer Mary Kom and runner
Kavita Raut, giving their mothers a chance to see them perform and
hopefully win at London this year.
P&G expects the campaign to drive $500 million in sales.

Promotions and Integrated marketing Communications


Integrated Marketing Communication (IMC) is a term that emerged in
the late 20th century regarding application of consistent brand messaging
across myriad marketing channels. The term has varying definitions
depending upon the source cited. These definitions continue to form an
ongoing discussion in marketing - and therefore are included here for
review, as the differences in these discussions can play a part in how IMC is
viewed and utilized.
The first definition for integrated marketing communication came from
the American Association of Advertising Agencies (also 4A's) in 1989,
defining IMC as "an approach to achieving the objectives of a marketing
campaign through a well-coordinated use of different promotional methods
that are intended to reinforce each other." The 4A's definition of IMC
recognizes the strategic roles of various communication disciplines
(advertising, public relations, sales promotions, etc.) to provide clarity,
consistency, and increased impact when combined within a comprehensive
communications plan. Basically, it is the application of consistent brand
messaging across both traditional and non-traditional marketing channels.

Components of Integrated Marketing Communications


IMC weaves diverse aspects of business and marketing together. These
include:

Organizational culture
Four P's
Advertising
Online/internet marketing
E-commerce
Search engine optimization (SEO)
Search engine marketing (SEM)
Mobile Marketing
Email marketing
Content marketing
Social Media ( Facebook, Twitter, LinkedIn, Google +, Foursquare,
Pinterest, Youtube, Wikipedia, Instagram)
Sales & customer service
Public Relations
Promotions
Trade shows
Corporate philanthropy

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