Beruflich Dokumente
Kultur Dokumente
ON
(2014-2017)
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ACKNOWLEDGEMENT
Last but not the least I would like to thank God for his blessings. Without
him I could not have completed the project and thanks to them who are
internally and externally involved in the project.
Priyen Shalyan
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CERTIFICATE
This is also to certify that this report is a original project submitted as a part
of the curriculum and no unfair means like copying have been used for its
completion. All references have been duly acknowledged.
Date:
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Table of Contents
Acknowledgement Ii
Certificate iii
Table of Contents iv-v
CHAPTER NO. CHAPTER TITLE PAGE NO.
Introduction to the study
1.1 Brief overview of study
1 1.2 Objectives of the study 6-7
4.1 History
4
4.5 marketing strategies for customer
satisfaction
Theoretical Perspective
5 48-51
7.2 Suggestions
Annexure
Bibliography 66-68
Sample Questionnaire
CHAPTER:-1
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INTRODUCTION OF THE STUDY
The idea for Head & Shoulders dates back to about 1950 when Procter & Gamble
research determined that consumers were not completely satisfied with the then existing
anti-dandruff shampoos. After 10 years of research, P&G scientists found an new and
effective ingredient against dandruff that that really workedPyrithione Zinc. In 1960,
P&G tested the product and by the spring of 1961, the shampoo was given its name, Head
& Shoulders, and Procter & Gamble started to work on the packaging, displays,
advertising, and marketing programs. Head & Shoulders was introduced to the public
with the original product, which was a blue-green cream shampoo in a white glass jar and
was clinically proven to reduce dandruff. Over the last 50 years, Head & Shoulders has
significantly evolved offering a variety of shampoos and conditioners to meet consumers
hair and scalp needs
Head & Shoulders is working hard to dispel the myth that dandruff is only visible flakes.
The truth is that flakes, one sign of an unhealthy scalp, are a result of the bodys natural
reaction to Malassezia globosa (M. globosa), the dandruff-causing fungus that lives on
the scalp of 100 percent of the adult population.
Thanks to breakthroughs in scalp care from the genomic sequencing of the Malassezia
globosa fungus by Head & Shoulders and P&G Beauty, scientists can work toward
additional scalp treatments for the millions of dandruff sufferers worldwide.
Head & Shoulders proprietary pyrithione zinc (ZPT) and hydra-mineral formula is an
effective tool to control the growth and spread of M. globosa, helping to eliminate the
fungus and ultimately promote a healthy scalp and great-looking hair.
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1.2 OBJECTIVES OF THE STUDY
To know whether the consumers are satisfied with product Head &shoulders or
not
To know the various factors affecting the choice of
To study about the various factors influencing the customers
To study the current Indian market for Shampoos.
To analyze the relationship between a specific brand and its buying behavior.
To assess whether advertising is influencing the buying behavior of the consumers.
To study the impact of the seals of clinical laboratories on the consumers
buying behavior
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As more and more brands work to connect with their customers and employees, there is
sellingwhat is significant to one person may not be so for someone else. Significance and
meaningfulness is personal and subjective at least, to a degree. That is to say that there
are some things that are contextually important, but in the bigger scheme of things, may
have little importance whatsoever, as in the case of the shampoo bottle above. But, is
The sample size was small and hence the results can have a degree of variation.
Questionnaire is subjected to errors.
CHAPTER:-2
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RESEARCH METHODOLOGY
The field study which was conducted to analyze the customer satisfaction held in
different DELHI and NCR regions. The universe selected for the study was customers
availing different products of P&G special reference was given to head and shoulders
shampoo in Delhi region. The research was held on a random basis, a questionnaire was
formed on the basis of project study which was analysis with respect to head and
shoulder
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2.4 SAMPLE SIZE AND SAMPLING TECHNIQUE:
The number of items selected from the universe to respect the universe is called size of
the sample. It was not feasible to cover all the customers who use the products of other
company.
For the study a total of 130 respondents were approached out of which 100 filled in the
questionnaire correctly and completely and others 30 refused to fill in the questionnaire.
The sampling technique used for the study is convenience sampling where in the
population elements are selected for inclusion in the sample based on the case of access.
After the research problem, we have to identify and select which type of data is to
research. At this stage; we have to organize a field survey to collect the data. One of the
important tools for conducting market research is the availability of necessary and useful
data.
The report has been prepared as per the information from two sources they are:
Primary data
Secondary data
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Primary data
Data used to this report is mainly primary data which are collected first
hand by survey in the field. The data is primary data collected through
face to face interview. The primary data includes the information
collected from the
Closed ended:
Rating scale
Secondary data :
Newspaper, magazines, annual reports of P&G, internet and books.
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CHAPTER 3
INDUSTRY OVERVIEW
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products
that are sold quickly and at relatively low cost. Examples include non-durable goods such
as soft drinks, toiletries, over-the-counter drugs, processed foods and many other
consumables In contrast, durable goods or major appliances such as kitchen appliances
are generally replaced over a period of several years.
FMCG have a short shelf life, either as a result of high consumer demand or because the
product deteriorates rapidly. Some FMCGs, such as meat, fruits and vegetables, dairy
products, and baked goods, are highly perishable. Other goods, such as alcohol, toiletries,
pre-packaged foods, soft drinks, and cleaning products, have high turnover rates.
Though the profit margin made on FMCG products is relatively small (more so for
retailers than the producers/suppliers), they are generally sold in large quantities; thus, the
cumulative profit on such products can be substantial. FMCG is probably the most classic
case of low margin and high volume business.
Fast moving consumer goods (FMCG) manufacturing is very much as the name suggests:
high quality products that fly off the production lines as fast as they fly off supermarket
shelves. Typical products include home cleaning items, personal hygiene goods and
foodstuffs, such as crisps and ready meals. Major players include companies like
hindustan Unilever and P&G which produce a wide portfolio of products, while other
companies like Walkers and LOreal tend to focus on single product areas. In FMCG,
engineers have the vital role of developing and managing manufacturing processes to
remove costs and wastage and keep things moving thousands of units of each product
can come off a production line every minute. Engineers also continually innovate new
machines and processes to match the demands made on products by consumers.
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3.1 TRENDS
Sustainability is the watchword and this expands beyond the industrys manufacturing
processes and facilities. The current issue is to reduce packaging. Another headline is
maintain reliability: machines have to run consistently for long periods. Automation,
robotics and programmable logical controllers are the focus. The goal is to run lights
out operations where machines are set running and left to run with no further human
intervention.
The FMCG sector in India has witnessed a range of recent developments. Tax deductions
on various items, rise in the penetration levels and per capita consumption are some of
the major developments in FMCG.
The FMCG Sector in India is the fourth largest sector in the Indian economy. As per the
reports of the 2005-06 financial years, the market size of the sector was registered as
USD 13.1 billion. The FMCG Sector in India involves a strict competition between the
organized and unorganized sector of consumer durables.
India offers an abundance of raw materials, low-priced labor costs, and also has a
presence across the entire value chain. The market size of the Indian FMCG Sector is
expected to reach USD 33.4 billion by the year 2015. Some product categories such as
jams, toothpaste, skin care products, hair care products, etc have experienced a low per
capital consumption as per a report presented in 2006.
As per the recent developments in FMCG it is assumed that the consumption of the
FMCG products will have a satisfactorily growth with the rising income level of Indian
populace in both the rural and urban areas. Around 200 million people are expected to
become the consumers of processed and packaged foods by the year 2010.
The major activities of the food-processing sector are permitted 100% foreign equity or
100% NRI and Overseas Corporate Bodies (OCB) investment to meet the rising demand
of the consumers.
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Recent Developments in FMCG Sector in India:
Finance Minister, Mr. P. Chidambaram declared several tax sops for the FMCG sector in
India along with putting due emphasis on the infrastructure developments in the same.
The usual growth drivers such as penetration, per capita consumption, population, and
household income were quite strong in 2007 and also the consumption of the FMCG
products has been increased outstandingly in 2007.
Biscuits worth ` 50 per kilogram are fully exempted from excise duty, customs duty on
food processing machineries were reduced from 7.5% to 5%, excise duties on food mixes
were reduced from 16% to 8%, and taxes were reduced on edible oils. ITC, Dabur, P&G
and Marico were directly benefited from these.
The consumption of health and personal care products in FMCG sector has increased in
the recent past with rise in disposable income especially among the youth group in India
Fast Moving Consumer Goods (FMCG) includes a wide variety of products that are used
on a regular basis including cosmetics, detergents, shaving items, soap, toiletries and non-
durable products such as batteries, light bulbs, glassware, household electronics etc.
FMCG industry is one of the fastest growing sectors in the country, as the consumer
demand for these products has increased tremendously in the past few years. These
companies offer a wide range of products ranging from food to beverages and personal
care products to home decor. This post describes about the top 10 FMCG Companies in
India.
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1.HINDUSTAN UNILEVER LIMITED
HUL was established in 1933 as Lever Brothers and, in 1956, became known as
Hindustan Lever Limited, as a result of a merger between Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India
and employs over 16,000 workers,[2] whilst also indirectly helping to facilitate the
employment of over 65,000 people.[3] The company was renamed in June 2007 as
"Hindustan Unilever Limited".[4]
Beverages: Kissan juices, Bru coffee, Brooke Bond Taj Mahal Tea
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Ranked ninth in the list of top 10 fmcg companies in India is the Procter & Gamble Co.
(P&G), which is one of the largest Fast Moving Consumer Goods (FMCG) companies
in India.
This American multinational company was established by William Procter and James
Gamble in 1837 in Cincinnati, USA. P&Gs Indian Division was established in 1964.
3.LOREAL
It is the world's largest cosmetics company and has developed activities in the field of
cosmetics, concentrating on hair colour, skin care, sun protection, make
up, perfume and hair care.The company is active in dermatology, toxicology, tissue
engineering, and biopharmaceutical research fields and is the top nanotechnology patent-
holder in the United States.
4.Johnson& Johnson
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Johnson & Johnson is an American multinational medical devices, pharmaceutical
and consumer packaged goods manufacturer founded in 1886. Its common stock is
a component of the Dow Jones Industrial Average and the company is listed among
the Fortune 500.
personal care products Neutrogena, Clean & Clear, Band-Aid , Johnson's baby
products
5.UNILEVER
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MARKET SHARE
CHAPTER:-4
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HISTORY
Candlemaker William Procter and soapmaker James Gamble, both born in the United
Kingdom of Great Britain and Ireland, emigrated from England and Ireland respectively.
They settled in Cincinnati initially and met when they married sisters, Olivia and
Elizabeth Norris.[6] Alexander Norris, their father-in-law, called a meeting in which he
persuaded his new sons-in-law to become business partners. On October 31, 1837, as a
result of the suggestion, Procter & Gamble was created.
In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that
floats in water. The company called the soap Ivory. William Arnett Procter, William
Procter's grandson, began a profit-sharing program for the company's workforce in 1887.
By giving the workers a stake in the company, he correctly assumed that they would be
less likely to go on strike.
The company began to build factories in other locations in the United States because the
demand for products had outgrown the capacity of the Cincinnati facilities. The
company's leaders began to diversify its products as well and, in 1911, began
producing Crisco, a shortening made of vegetable oils rather than animal fats. As radio
became more popular in the 1920s and 1930s, the company sponsored a number of radio
programs. As a result, these shows often became commonly known as "soap operas".
The company moved into other countries, both in terms of manufacturing and product
sales, becoming an international corporation with its 1930 acquisition of the Thomas
Hedley Co., based in Newcastle upon Tyne, England. After this acquisition, Procter &
Gamble had their UK Headquarters at 'Hedley House' in Newcastle upon Tyne, until quite
recently. Numerous new products and brand names were introduced over time, and
Procter & Gamble began branching out into new areas. The company
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introduced Tide laundry detergent in 1946 and Prell shampoo in 1947. In 1955, Procter &
Gamble began selling the first toothpaste to contain fluoride, known as Crest. Branching
out once again in 1957, the company purchasedCharmin Paper Mills and began
manufacturing toilet paper and other paper products. Once again focusing on laundry,
Procter & Gamble began making Downy fabric softener in 1960 and Bounce fabric
softener sheets in 1972.[7] One of the most revolutionary products to come out on the
market was the company's Pampers, first test-marketed in 1961, the same year Procter &
Gamble came out with Head & Shoulders.[8] Prior to this point disposable diapers were
not popular, although Johnson & Johnson had developed a product called Chux. Babies
always wore cloth diapers, which were leaky and labor-intensive to wash. Pampers
provided a convenient alternative, albeit at the environmental cost of more waste
requiring landfilling.
Procter & Gamble acquired a number of other companies that diversified its product line
and significantly increased profits. These acquisitions included Folgers Coffee, Norwich
Eaton Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell
(Noxzema), SP&Gton's Old Spice,Max Factor, the Iams Company, and Pantene among
others. In 1994, the company made headlines for big losses resulting from levered
positions in interest rate derivatives, and subsequently sued Bankers Trust for fraud; this
placed their management in the unusual position of testifying in court that they had
entered into transactions that they were not capable of understanding. In 1996, Procter &
Gamble again made headlines when the Food and Drug Administration approved a new
product developed by the company, Olestra. Also known by its brand name 'Olean',
Olestra is a lower-calorie substitute for fat in cooking potato chips and other snacks.
In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer
goods company and placing Unilever into second place. This added brands such as
Gillette razors, Duracell, Braun, and Oral-B to their stable. The acquisition was approved
by the European Union and the Federal Trade Commission, with conditions to a spinoff
of certain overlapping brands. P&G agreed to sell its SpinBrush battery-operatedelectric
toothbrush business to Church & Dwight. It also divested Gillette's oral-care toothpaste
line, Rembrandt toothpaste. The deodorant brandsRight Guard, Soft and Dri, and Dry
Idea were sold to Dial Corporation.[9] The companies officially merged on October 1,
2005. Liquid Paper, and Gillette's stationery division, Paper Mate were sold to Newell
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Rubbermaid. In 2008, P&G branched into the record business with its sponsorship of Tag
Records, as an endorsement for TAG Body Spray.[10]
P&G exited the food business in 2012 when it sold its Pringles snack food business
to Kellogg's for $2.75bn after the $2.35bn deal with former suitor Diamond Foods fell
short.[14] The company had previously sold Jif peanut butter and Folgers coffee in separate
transactions to Smucker's.
Procter & Gamble was a major sponsor of London's 2012 Olympic Games and sponsored
150 athletes,[15] as well as a major sponsor of Sochi's 2014 Winter Olympic Games. It will
be a sponsor of the 2016 Summer Olympics in Rio, and the 2018 Winter Olympics
in Pyeongchang, South Korea.
In March 2015, the company announced it was selling its Vicks VapoSteam U.S. liquid
inhalant business to Helen of Troy, part of a brand-restructuring operation. This deal was
the first health-related divestiture under the brand-restructuring operation.[16]
On July 2015, the company announced a merger of 43 of its brands with Coty, a beauty
product manufacturer, in a US$13 billion deal. It cited sluggish growth for its beauty
division as the reason for the merger.[17][18]
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COMPANY PROFILE
Procter & Gamble Co., also known as P&G, is an American multinational consumer
goods company headquartered in downtown Cincinnati, Ohio, United States, founded
by William Procter and James Gamble, both from the United Kingdom. Its products
include cleaning agents, and personal careproducts. Prior to the sale of Pringles to
the Kellogg Company, its product line included foods and beverages.[3] In 2014, P&G
recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was streamlining
the company, dropping around 100 brands and concentrating on the remaining 80 brands,
which produced 95 percent of the company's profits. A.G. Lafley, the company's
chairman, president and CEO until October 31, 2015, said the future P&G would be "a
much simpler, much less complex company of leading brands that's easier to manage and
operate".[4] David Taylor became P&G CEO and President effective November 1. P&G
remains a highly selective employer as less than 1% of all applicants are hired annually.[5]
Vision
We will provide branded products and services of superior quality and value that improve
the lives of the world's consumers. As a result, consumers will reward us with leadership
sales, profit, and value creation, allowing our people, our shareholders, and the
communities in which we live and work to prosper. P and G also states their goals;
Mission
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We are determined to be the best at doing what matters most. We have a healthy
dissatisfaction with the status quo.
We have a healthy dissatisfaction with the status quo. Their strategies correlate with the
mission statement and with their goals. One of their main strategies is that P and G is a
very externally focused company.
These strategies consist of developing superior understanding for the customer and their
needs; develop close, mutually productive relationships with our customers and our
suppliers; and most important, P and G are good corporate citizens.
Simple Structure
The simple structure is a structure in which the owner-manager makes all major decisions
and monitors all activities while the staff serves as an extension of the manager's
supervisory authority.
Functional Structure
The functional structure is a structure consisting of a chief executive officer and a limited
corporate staff, with functional line managers in dominant organizational areas, such as
production, accounting, marketing, R&D, engineering, and human resources.
Multidivisional structure
The structure of the Procter and Gamble is multidivisional structure. Because the simple
structure is used in a small organization where the owner works as a manager and take all
the big decision for the company. Typically, the owner-manager actively works in the
business on a daily basis. Informal relationships, few rules, limited task specialization,
and unsophisticated information systems describe the simple structure. Frequent and
informal communications between the owner-manager and employees make it
relatively easy to coordinate the work that is to be done. Functional structure is used for
the organization which is growing but relatively small organization. This structure allows
for functional specialization, thereby facilitating active sharing of knowledge within each
functional area. Knowledge sharing facilitates career paths as well as the professional
development of functional specialists. However, a functional orientation can have a
negative effect on communication and coordination among those representing different
organizational functions. Because of this, the CEO must work hard to verify that the
decisions and actions of individual business functions promote the entire firm rather than
a single function.
Procter & gamble is a relatively big organization with a business spread internationally so
they are using multidivisional structure. The multidivisional structure of P&G consists of
operating divisions, each rep-resenting a separate business or profit center in which the
top corporate officer delegates responsibilities for day-to-day operations and business-
unit strategy to division managers. Each division represents a distinct, self-contained
business with its own functional hierarchy. As initially designed, the M-form was thought
to have three major benefits: (1) it enabled corporate officers to more accurately monitor
the performance of each business, which simplified the problem of control (2) it
facilitated comparisons between divisions, which improved the resource allocation
process; and (3) it stimulated managers of poorly performing divisions to look for ways
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of improving performance. Active monitoring of performance through the M-form
increases the likelihood that decisions made by managers heading individual units will be
in shareholders' best interests.
Ambi Pur
Though we strive hard to keep our homes and our cars clean and tidy, the results are
rarely satisfactory. Odours that linger in our homes just before guests arrive, or a
persistent stench that never leaves the car, not only adversely affect our mood, but also
that of our guests. With this in mind, P&G experts have bottled the fragrance of freshness
with the new Ambi Pur range for both homes and cars.
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Ariel
Introduced in 1991, Ariel was the first to bring the 'compact detergent' technology, the
enzyme technology for safe and superior stain-removing power and the 'smart eyes'
technology into India, with an aim of becoming India's best stain removal detergent. Ariel
contains safe ingredients for all fabrics under recommended usage conditions for laundry.
The Ariel product range in India includes different variants to meet your specific needs
like Ariel OxyBlu, Ariel Oxyblu Ultramatic, Ariel Front O Mat, Ariel 2in1.
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Global Website: www.ariel.co.uk
Duracell
Duracell batteries have a history of providing dependable power when and where you
need it the most. Our range of Batteries gives you the right power for all your device
needs, providing up to 10x performance. The product range in India includes Duracell
and Duracell Ultra. Duracell is available in sizes AAA, AA, C, D, and 9-volt while
Duracell Ultra is available in sizes AA and AAA sizes.
Gillette
Gillette has been at the heart of mens grooming for over 100 years. Each day, more
than 600 million men around the world trust their faces and skin to Gillettes innovative
razors and shaving products designed for the unique needs of men helping them to look,
feel and be their best every day. The razor range in India includes Gillette Vector, Gillette
Mach3, Gillette Mach3 Turbo, Gillette Guard and Gillette Mach3 Turbo Sensitive and
Gillette Fusion. The Shave Care range includes Gillette Fusion HydraGel, Gillette Series
Sensitive Skin Foam, Gillette Series After Shave & Gillette Classic Shave Foam
Sensitive Skin.
The Gillette Skincare regimen is a no-fuss and efficient solution in caring for the health
and appearance of mens skin and includes a special range of designed-for-men Gillette
Skincare Foaming Wash, Gillette Skincare Scrub, Gillette Skincare Facial Moisturizer
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with Aloe Vera, Gillette Skincare Facial Moisturizer with SPF and Gillette Skincare
Lotion 100ml.
Since 1950, Head & Shoulders has been at the forefront of scalp and hair science,
significantly advancing the treatment of dandruff and scalp problems. Along with
professional advice and expert insight we have a wide range of products to care for your
scalp and nurture your hair.
Head & Shoulders is available in 8 variants in India including Men Hair Retain,
Complete Care for Dry Scalp, Anti Hair fall, Smooth & Silky, Cool Menthol, Clean &
Balanced, Thick & Long & Silky Black.
Olay
Olay is a product truly born in love created by Graham Wulff for his wife Dinah in 1950s
to address her frustration with the then thick and waxy beauty creams. Today, Olay is one
of the most recognizable brands in the world. Yet through all the changes and
innovations, the philosophy upheld by Graham Wulff remains just as relevant as ever:
Help women look and feel beautiful and Challenge whats possible with their skin. The
Olay portfolio in India covers Base Moisturizer, Anti Ageing and Olay Whitening. The
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Anti Aging range includes Olay Regenerist, Olay Total Effects, and Olay Age Protect.
The Olay Whitening range includes Olay White Radiance and Olay Natural White. The
Base Moisturizer includes Olay Moisturizing Lotions and Creams.
Oral-B
Oral-B continuously strives to work closely with the dental professionals and deliver high
quality products, which make us leaders* in the $ 4.5 billion toothbrush category,
marketing toothbrushes for children & adults, as well as inter-dental products such as
Dental Floss. In India, Oral-B has an innovative range of toothbrushes including
CrossAction Pro-health 7 Benefits, CrossAction Pro-health Superior Clean and
Advantage Sensitive toothbrush. Oral-BS floss range includes Ultra Floss & Essential
Floss.
*Based on global value market share for June-July 2006-07, global Nielson Audit
Pampers
Pantene
The New Pantene Amino Pro-V Complex range of shampoo & conditioner comes in
three variants suited for individual needs - Pantene Nourished Shine, Pantene Hair Fall
Control & Pantene Smooth & Silky. Enriched with the goodness of pro-vitamins and
three essential aminos, Pantene restores your hair with its lost beauty while making your
hair ten times stronger.
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Tide
Tide is the Worlds Oldest & Most Trusted Detergent brand and is the Market Leader in
23 Countries around the world. Launched in India in mid-2000, Tide provides
Outstanding Whiteness on white clothes & excellent cleaning on coloured clothes as
well. Tides Fabric Whitening Agents clean clothes without bleaching or removing colour
from a garment. The Tide range in India includes Tide (Detergent) and Tide (Bar with
Whiteons). Tide Naturals was launched in India in December 2009. Packed with the
benefits of lemon and chandan, it provides great cleaning while keeping the hands soft.
Vicks
Vicks has long been invested in the science and research of respiratory health and through
that dedication has developed a wide range of therapeutic products that offer effective
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relief for all the major signs and symptoms of the common cold, flu and sinus pain and
pressure. The Vicks product range in India includes Vicks Cough drops, Vicks Vaporub,
Vicks Inhaler, Vicks Vapocool, and Vicks Action 500 Extra.
Whisper
Whisper understands that we're each very different, and offers a wide range of sanitary
napkins to suit every girl or woman's needs. With the right menstrual pad, you could take
the first step to having a Happy Period. Whisper has a wide range of products in India
which includes Whisper Ultra Regular Wings,Whisper Ultra XL Wings, Whisper Ultra
Heavy Flow Overnights Wings, Whisper Maxi Regular, Whisper Maxi XL Wings,
Whisper Choice Regular, Whisper Choice Wings and Whisper Choice Ultra Wings.
Website: beinggirl.co.in
Wella
Wella Kolestint with it deep, long lasting colour has mesmerized Indian women. No
doubt, 96% Indian women say that it is the best hair colour they have ever used. Wella
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Kolestint packs are available in 12 vibrant shades in beauty stores across India. Each
pack comes with a complete hair colour kit to give deep, long lasting colour.
Satisfied customers lead to long term business viability through repeat purchases, brand
loyalty and word-of-mouth referrals. Satisfaction relates to the entire purchase experience
and not just to post use reflection. Therefore, attention needs to be given to ensuring that
all stages of the purchase experience result in positive satisfaction. It can be expected that
early dissatisfaction can result in a negative intention to purchase.
Satisfaction and dissatisfaction will exist in varying degrees, therefore highly satisfied
customers can be expected to display much higher levels of repeat buyer intention and a
higher level of positive referrals. Those customers who are only satisfied or neutral are
unlikely to provide strong referrals and their repeat buying intentions will be significantly
lower. At both extremes, highly satisfied and highly dissatisfied, these customers will
have a multiplier effect on outcomes. They are much more likely to be vocal about their
experiences and impact on many potential purchasers either negatively or positively.
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Satisfaction and dissatisfaction can coexist for the same purchase experience. I can be
dissatisfied with the information available on the product and the service I received and
yet be delighted by the product in use. My dissatisfaction may lead me to tell others of
the poor information and service while still saying how good the product is.
Satisfaction can change over time depending on subsequent personal experience with the
original and alternative products and with the reported experience of others. Positive or
negative comments from reference groups such as family or friends may also affect post
purchase satisfaction. The intensity of satisfaction or dissatisfaction may change over
time, often depending on the original intensity of the emotional response around the time
of the original purchase experience.
Satisfaction itself may comprise a number of components, some explicit while others
may be implicit. Some basic characteristics of the product or service are taken for
granted; it works, it exists, it is safe to use and so on. These are sometimes referred to as
hygiene factors. Consumers only think of these when they are absent and that can lead to
serious dissatisfaction.
One methodology for measuring satisfaction in service delivery uses the following
dimensions of service quality:
Competence means possession of required skills (i.e. organisational and personal) and
knowledge to perform the service;
Reliability means that the service is performed with high accuracy and thoroughness
every time;
Responsiveness concerns the willingness of employees to provide the service and how
fast the service is provided;
Tangibles include all physical products that are involved in service delivery and even
other customers;
Understanding the customer means taking steps to know the customer better, learning
their specific requirements, providing individual attention and recognising regular
customers.
The Procter & Gamble Company hosted its 2014 Analyst Meeting in Cincinnati, Ohio on
November 13. Chairman of the Board, President and Chief Executive Officer, A.G.
Lafley, led a discussion of the strategic choices P&G has made to improve sales growth,
profitability and cash productivity while strengthening its business portfolio and
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organization.
We have the right strategic priorities, and were making good progress against all
elements, said Lafley. Were clear-eyed about the challenges we face from external
forces, like currencies. We will continue to accelerate and increase productivity savings,
sharpen our strategies and strengthen our portfolio all focused on delivering superior
value to consumers and balanced growth and value creation for P&G shareowners.
Following its prior announcement of plans to exit the Duracell business, P&G said it now
plans to execute a split transaction, in which it will exchange a recapitalized Duracell
Company for Berkshire Hathaways shares of P&G stock.
We thank the Duracell employees for their many contributions to the business. Theyve
made Duracell the global market leader in the battery category, said Lafley. Im
confident this new ownership structure will provide strong support for Duracells future
growth plans.
Berkshires stock ownership is currently valued at approximately $4.7 billion. P&G said
it expects to contribute approximately $1.8 billion in cash to the Duracell Company in the
pre-transaction recapitalization.
As part of the exit of the battery business, P&G announced that it closed the sale of its
interest in a China-based battery joint venture earlier in the week.
P&G said it expects to close the Duracell transaction in the second half of calendar year
37
2015 pending necessary regulatory approvals.
The company reiterated its organic sales growth and core earnings per share growth
guidance ranges for fiscal year 2015. P&G continues to expect organic sales growth in
the low-to-mid single digit range. Net sales growth is expected to be in-line to up low
single digits versus the prior fiscal year, including a negative two point impact from
foreign exchange.
P&G maintained its core earnings per share growth guidance range of mid-single digits,
though it noted that foreign exchange impacts skew the company toward the low-end of
the guidance range. P&G said it is working to offset currency headwinds with increased
productivity-driven cost savings.
P&G added that the quarterly profile of earnings will be heavily influenced by the
variation of foreign exchange impacts from period-to-period. The Company expects
significant negative sales and earnings impacts from foreign exchange in the October-
December 2014 quarter.
P&G noted that core earnings per share estimates for fiscal year 2015 should be
calculated based on restated 2014 core EPS range of $4.08 to $4.10, reflecting the
Batteries exit.
All-in GAAP diluted net earnings per share are now expected to be down 12% percent to
down 15% percent versus the prior year, including approximately $0.83 per share of non-
core charges, primarily from $0.20 per share of non-core restructuring charges and $0.60
of impairment charges, net of tax impacts.
38
CHAPTER 5
Head & Shoulders is world's No.1 anti-dandruff shampoo. A power brand from P&G ,
this brand made its debut in India in 1997. In the highly competitive Indian shampoo
market which is estimated to be worth around Rs 1800 crore, Head&Shoulders is a
major player in the Anti-Dandruff niche. The entire shampoo market is dominated by
HLL with a whopping market share of around 46%.
39
When the brand was launched in India, the anti dandruff market was in its nascent stage
and dominated by Clinic All Clear. The high profile launch of Head & Shoulders fueled
the growth of this specialty market. Now anti-dandruff segment constitutes around 15%
of the total shampoo market. While some reports suggest that Head & shoulders lead this
segment, there are no exact market share figures available. My feeling is that Clinic All
Clear has a lead over Head & Shoulders.
Head & Shoulders is positioned as a pure play anti-dandruff shampoo and for these 20
years has stuck to this positioning.When the brand was launched, it really gave HLL
brand Clinic a run for its money. The brand had carried its heritage as worlds largest
selling anti-dandruff shampoo and also maintained a good share of voice. The brand used
the Markonym ZPT ( Zinc Pyrithine)Formula which has anti-fungal properties as its
differentiator.
But during the 2000, Clinic All Clear outsmarted Head & Shoulders through some very
aggressive campaigns. As usual HLL banked on high profile celebrities to endorse this
brand. Shah Rukh and Shahid Kapoor and recently John & Bipasha made sure that Clinic
All Clear retain its share of mind. Surprisingly during this period, Head & Shoulders kept
a low profile.
It was during 2005 that Head & Shoulders began its aggressive campaign to regain the
lost market.The brand roped in the bubbly Preity Zinta to endorse the brand. Earlier Ajay
Jadeja had endorsed the brand.During this period, the brand also extended its positioning
from Anti-Dandruff to "Soft hair + dandruff removing " proposition. The brand also
introduced different variants like Menthol, Aloevera, Black, Naturally Clean,smooth &
40
silky to increase the product line depth.
The brand also changed ZPT formula to Vitazinc to support the new positioning. Along
with the new brand ambassador, the brand also talked about eliminating 5 problems
arising out of dandruff : Flakes,Irritation,Itchiness,Dryness and Oiliness.The new
extended positioning makes sense in the new consumer environment where customers are
looking more at combo products rather than specialty products.
Although Head & Shoulders has aggressive in the market, it is still lagging behind Clinic
All Clear in terms of creative campaigns. Globally, Head & Shoulders had come out with
some highly creative campaigns which was not replicated in India by the agency.The
brand is now available in a new look and with the aggressive campaigns, the brand hopes
to keep its Head High
MILESTONE
1961
1969
41
The first clinical trial shows ZPT is as efficient in dandruff
shampoo technology as any previous prescription
anti-dandruff treatment
1971
Head & Shoulders scientists are first to discover that both the
organism Malassezia Globosa and molecules called lipids are
needed for dandruff to develop
1977
1981
Head & Shoulders launches its first products in Mexico and continues expanding into
global markets throughout the 80s, including China, France, Germany, Spain and the
Netherlands
1985
42
Its the year the first Head & Shoulders shampoos
adapted to different hair conditions such as oily or
dry hair are introduced to consumers
1990
1990ARABIAN PENINSULA
1993CROATIA
1996FINLAND
1997INDIA
2002
Head & Shoulders scientists discover that people with dandruff have significantly
more inflamed scalp skin than those witho
2005
43
THE OIL ON YOUR SCALP CALLED SEBUM THE ORGANISM MALASSEZIA
GLOBOSA A SUSCEPTIBILITY FOR SKIN REACTIONS
2007
2009
2011
44
Strategies used by P/G Head and Shoulder against competitors
Parent
Company Procter and Gamble
Sector FMCG
Tagline/
Slogan Dandruff care for great looking hair
STP
SWOT Analysis
45
4. Well known brand
5. Availability of Products in Different Sizes
6. Large Network for Distribution
7. Consumer Trust
Competition
46
CHAPTER 6
STRENGTHES
New Management
Diversified brand portfolio: more than 300 brands with more than 79 billion in
Revenue
Tightly integrated with the largest retailers in the US and around the world
47
The New Head and Shoulders Shampoo is a high quality product in terms of hair
protection.
The target market is educated, professionals and belongs to premium and middle
class.
Company totally owned, systematic distribution network, transparent
communication
System.
Participative management style.
Very good distribution network all over India, in all major and small cities.
LIMITATIONS
OPPORTUNITIES
48
THREATS
49
MALE FEMALE
SHAMPOO 60 90
SOAP 15 5
BOTH 25 5
TOTAL 100 100
90
80
70
60
50 Male
40 female
30
20
10
0
Shampoo Soap Both
Interpretation:
It is mentioned here that 90 females are using shampoo to wash hairs but only 60 males
are using shampoo.
60
50
40
30
20
10 MALE
FEMALE
0
Interpretation:
It is mentioned here that 10 females use shampoo daily, 58 Twice a week, 32 more then
twice a week, whereas 20 males use shampoo daily, 40 twice a week, 60 more then twice
a week.
100
90
80
70
60
MALE
50 FEMALE
40
30
20
10
0
YES NO
Interpretation:
QUANTITY NO. OF
CONSUMERS
SACHETS 3
BIG BOTTLES 50
PACKS 7
FAMILY PACK 10
52
MINI BOTTLES 30
TOTAL 100
NO. OF CONSUMERS
SACHETS
MINI BOTTLES
BIG BOTTLES
FAMILY PACKS
PACKS
Interpretation:
50 respondents use big bottles and 30 respondents use mini bottles of shampoo.
Q5) What comes to your mind when you think about head & shoulders
MALE FEMALE
ANTI-DANDRUFF 80 90
TO PREVENT HAIRFALL 10 5
SMOOTHENING OF HAIR 5 3
CONDITIONING 5 2
53
90
80
70
60
50
40
30
20 MALE
10 FEMALE
0
Interpretation:
FEATURES PERCENTAGE
SMOOTHENING OF HAIR 40%
ANTI- DANDRUFF 20%
CONDITIONING 5%
TO PREVENT HAIRFALL 35%
TOTAL 100%
54
FEATURES
SMOOTHENING OF
HAIR
35% 40% ANTI- DANDRUFF
CONDITIONING
5%
20% TO PREVENT HAIRFALL
Interpretation:
40% of the respondents wanted smoothening of hair, 20% wanted anti- dandruff, 5%
wanted conditioning and 35% wanted to prevent hair fall.
AVAILABILITY PERCENTAGE
VERY CONVENIENT 92%
WALK A FEW MILES 5%
REALLY FAR 3%
55
AVAILABILITY
VERY CONVENIENT
WALK A FEW MILES
REALLY FAR
Interpretation:
Q8) You tend to purchase your head and shoulders hair product via
AVAILABILITY PERCENTAGE
RETAIL SHOP 95%
DIRECT OUTLET 1%
ONLINE 4%
56
PURCHASES
5% 4% RETAIL SHOP
1% DIRECT OUTLET
SALON
OTHERS
90%
Interpretation:
95% of the respondents purchase the shampoo from retail shop, 1% from direct outlet,
4% from the online
57
CHOICE FOR BUYING
20% 5% PACKAGING
QUALITY
15% COST
60% BRAND
Interpretation:
60% respondents look for good quality while buying shampoo while 5% look for
packaging, 15% on cost and 20% on brand.
INFLUENCE PERCENTAGE
FAMILY 1%
ADVERTISEMENT 90%
SELF 9%
TOTAL 100
58
INFLUENCE
FAMILY
ADVERTISEMENT
SELF
Interpretation:
CHAPTER 7
59
7.1 CONCLUSION
Shampoo is the personal hygienic product and has a large market. So, it is
important to determine which factors play the pivotal role to influence the
c o n s u m e r p u r c h a s i n g b e h a v i o u r. I n t h i s a s s i g n m e n t , t h e f i r s t f a c t o r i
s q u a l i t y, country of origin-brand, theory of consumer ethnocentrism, and the socialinfl
uence. These variables form a combination to produce an impact as to manifestour
different behaviour of a consumer.
7.2 RECOMMENDATIONS
Shampoos for seniors and male segment after doing hormonal and environmental
research. If dermatologists consult must be there which helps company to formulate new
shampoos.
BIBLIOGRAPHY
WEBSITE
1. www.P&G.com
60
2. www.Head and shouldersP&G.org
3. www.wikipedia.org
4. www.partcolgamble.com
SAMPLE QUESTIONNAIRE
This is to acknowledge that the following survey is purely for educational purposes. The
identity of the respondent will be kept confidential.
NAME:
AGE:
61
SEX:
OCCUPATION:
63