Comparison of P&G and Godrej

On the basis of History Marketing Mix Products Future Endeavors P&G History Two men who met by chance founded this company in the year 1837. William Procter, emigrating from England, established himself as a candle maker in Cincinnati, which was a busy center of commerce and industry in the early nineteenth century. And James Gamble, arriving from Ireland, apprenticed himself to a soap maker. The two might never have met, had they not married sisters Olivia and Elizabeth Norris, whose father convinced his new sons-in-law to become business partners. As a result, in 1837, a bold new enterprise was born: Procter & Gamble. Procter first worked in a bank. He then decided to use his past experience as a candle maker to earn extra income and help pay off his debt. He took advantage of the fat and oil by-products from Cincinnatis large meatpacking industry. Meanwhile, at the age of 18, James Gamble began an apprenticeship with the local soap maker, then years later opened his own soap and candle shop with his friend. Before long,

Gamble met and married Elizabeth Ann Norris, the second daughter of Alexander Norris. Father-in-law Alexander Norris noted that his new sons were competing for the same raw materials. He suggested a joint venture. After several years, the sons agreed on October 31, 1837, they signed the partnership agreement that founded the Procter and Gamble Company. Their total assets were $7,192.24. The business began during nationwide panic and depression. But the struggling young firm survived. Cincinnati proved a sound business base because as a meat packing center, it offered plenty of fat and oil for soap and candle making. The Procters eldest son, William A Procter was the first President of P&G in 1890. Son Harley T was the companys first Advertising and sales Manager. Marketing Mix a. Product: P&G manufactures products in the following categories. beauty and grooming brands eg: Gillette, Olay, Puma health and well-being brands eg: Always, Oral B, Vicks household care brands eg: Ace, Tide, Gain b. Price: In 1990s era, P&G incorporated value pricing strategy. The company adopted this strategy by cutting its coupon. Production and logistical cost by effectively increasing efficiency and it increased its advertising by 20 percent. Within a period of 6 years this strategy resulted in higher brand loyalty and stronger brand image.

c. Place: the P&G products were available world wide. It distributes its product to around 140 countries and to approximately 5 billion customers. DHL courier is a service provider to the company through which it ensures its logistical efficiency. Company has manufacturing and distribution networks in all major countries. d. Promotion: this is the era of advertising. Companies have to do huge advertisings to sell their products to the consumers. P&G has an effective promotion strategy with an advertising budget of approximately 8.68 billion dollar in 2009 which makes it the worlds number one advertiser. The company uses television mass advertising in particular, internet marketing and other marketing mediums to promote its brands. Products 1. 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. 2. 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. 3. 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 9volt while Duracell Ultra is available in sizes AA and AAA sizes. 4. 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. 5. Head and Shoulders - 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. 6. 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. Future Endeavors For now, P&G isn't sharing details on the company's latest innovations. But executives are pressing hard to get the new products out soonest, and put behind them a lull in its innovation pipeline that has lingered without a blockbuster in recent years. "We've got some outstanding technologies that are going to result in new-to-the-world products very soon," McDonald said. "New categories. New brands. Just some unbelievable new technologies." P&G's leaders know that some of the company's fastest periods of growth have been driven by innovations that have created its most profitable lines, including Pampers disposable diapers, Tide liquid laundry detergents and home care items such as Febreze. Those products are examples of "discontinuous innovation," McDonald said, meaning brands or categories that didn't exist on a mass scale until P&G's innovation prowess took hold. "We're going to want to strengthen our innovation program so that there are no gaps ... so that we're constantly bringing new products, new brands, new categories to market," McDonald said. P&G ranked eighth last year on a list of top innovators by Booz & Co., a global consulting firm.

GODREJ History

Established in 1897, the Godrej group has grown in India from the days of the charkha to nights at the call centers. Its founder, Ardeshir Godrej, lawyer-turned-locksmith, was a persistent inventor and a strong visionary who could see the spark in the future. His inventions, manufactured by his brother Pirojsha Godrej, were the foundation of todays Godrej empire. One of Indias most trusted brand, Godrej enjoys the patronage and trust of around 500 million Indians every single day. Its customers mean the world to it. They are happy only when they see a delighted customer smile. With 7 major companies with interests in real estate, FMCG, industrial engineering, appliances, furniture, security and agri care to name a few its turnover crosses 3.3 billion dollars. Its presence in more than 60 countries ensures that its customers are at home with Godrej no matter where they go. In 1930, Godrej became the first company in the world to develop the technology to manufacture soap with vegetable oils; that spirit of innovation has continued throughout the organizations history. Today Godrej is delivering consumers exciting innovations across a spectrum of businesses. The companys pursuit of excellence is equally well established and enduring. In the 1944 Mumbai docks blast, Godrej safes were the only security equipment whose contents were unharmed; an equal level of product quality continues to be expected from every product bearing the Godrej brand name. Godrej

management understands that the companys greatest asset is the trust and faith that consumers have reposed in it, and recognizes that the company must continue to earn this trust. This translates to the organization delivering outstanding quality and value in everything it does. Godrejs ethical and visionary practices have allowed the company to successfully expand into a number of businesses. Today Godrej is a leading manufacturer of goods and provider of services in a multitude of categories: home appliances, consumer durables, consumer products, industrial products, and agri products to name a few. A recent estimate suggested that 350 million people across India use Godrej products. The group has more recently entered the real estate and information technology sectors, and management views these as avenues for enormous growth. The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion, a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven its ability to deliver strong financial performance. Products 1. Appliances offerings in refrigerator, washing machine, air conditioner and microwave oven. 2. FMCG - Cintol , Good Knight Mosquito repellent, Hair color and Hair dye.

3. Batteries Godrej and GP batteries offer a wide range of zinc chloride, alkaline, and rechargeable batteries and a range of chargers. 4. Furniture Furniture for home, office, educational institutions, establishments, labs, hospitals, shipyards. 5. Audio Visual Solutions Display solutions, audio video conferencing solutions, electronic copy boards. 6. Locks Locking solutions for different security needs to ensure optimum safety.

Marketing Mix A) Product Godrej product is there in much kind of businesses namely home appliance, FMCG, Agriculture, Furniture, Real estate, security solutions. Their product is very much trusted by people. It has created good brand loyalty over the periods. In home appliances more than 70% of its revenue comes from refrigerators. In FMCG they achieve most of their revenue through hair colors and dye. Almost many of the companies and firms use Godrej security system because it is the trusted one in the case of doors and locks which is used in houses also. B) Price premium there are many ways to price a product, they are penetration, economy, price skimming,

pricing,

psychological pricing, product line pricing and value pricing but

Godrej philosophy had all been to deliver value for money to its customers despite being priced economically, Godrej maintained its product quality, so that is the reason many of the people do not consider about the price when they go for brand Godrej. C) Place it is known as channel, distribution or intermediary. It is

the mechanism through which goods/services are moved from the manufacturer to the consumer. Godrej home appliances are sold in retail outlets. In case of FMCG products it is given to the small store to big retail store like Big Bazaar through their distributors allocated in each state or city. In the case of security systems and doors it is available in hardware stores and security systems and banking automation services is fitted directly by Godrej. D) Promotion This includes all the tools available to the

marketers for Marketing communication. Promotions are done in four ways. That is through advertising, personal selling, public relations and sales promotion. Godrej has a unique way of advertising their products. They advertise their FMCG and home appliance product through outlets, through big banners in important cities, through television, and internet advertisements and they have their own company websites through which people can get to know about all the products of Godrej and also about their company.