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AMITY SCHOOL OF BUSINESS AMITY UNIVERSITY, NOIDA, UTTAR PRADESH

A MINOR REPORT On MARKETING STRATEGY AND FINANICIAL ANALYSIS OF

A report submitted in partial fulfillment of the requirement for the Bachelor’s Degree in Business Administration course (2018-2021) of Amity University

Submitted to

Submitted by

Mr. Jitendra Tomar

Navneet Patel

Faculty Guide

A3914718025 BBA (M&S)

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DECLARATION

I hereby declare that the following documented project report titled “MARKETING STRATEGY AND FINICIAL ANALYSIS OF P&G.” is an original and authentic work done by me. Administration degree program I hereby certify that all the Endeavour put in the fulfillment of the task are genuine and original to the best of my knowledge & I have not submitted it earlier elsewhere.

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Faculty Guide Approval

This is to guarantee that the work epitomized in this thesis entitled “MARKETING STRATEGY AND FINICIAL ANALYSIS OF P&G has been put together by Navneet Patel for the NTCC expression paper is done by him under my guidance at AMITY SCHOOL OF BUSINESS, AMITY UNIVERSITY, NOIDA, UTTAR PRADESH. He has finished the exposition under my direction on the above specify venture.

This work is initially and not submitted so far for the honor of any degree, recognition or other title in this college or some other college at higher learning.

Mr. Jitendra Tomar ASB, Amity University, Noida

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ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my Faculty guide who graciously gave me their time and expertise. They have provided me with the valuable guidance, sustained efforts and friendly approach. It would have been difficult to achieve the results in such a short span of time without their help. I deem it my duty to record my gratitude towards the Internal project supervisor Mr. Jitendra Tomar who devoted her precious time to interact, guide and gave me the right approach to accomplish the task and also helped me to enhance my knowledge and understanding of the project.

NAME: NAVNEET PATEL COURSE: BBA(M&S) ENROLLEMENT NO: A3914718025 BATCH:2017-2021 ROLL NO: 35

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Contents Table of Contents Introduction

6

Marketing Analysis

8

Product profile

8

Marketing mix of P&G

9

Product

9

Place

9

Price

10

Promotion

12

Market share of P&G products

13

SWOT analysis of P&G

14

Strengths

14

Weakness

14

Opportunities

14

Threats

15

STP of P&G

16

BCG Matrix

17

Financial analysis

18

Balance sheet

18

Ratio analysis

22

Current ratio

22

Quick ratio

23

Debt – equity ratio

24

Debt- assets ratio

25

Inventory turnover ratio

26

Suggestions

28

Conclusion

29

Bibliography

30

Introduction

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P&G is the largest and the fastest developing FMCG company in India. Set up in 1964, P&G India offers products to more than 650 million purchasers over India. Its market shares in the Beauty section, the House care fragment just as the Health and Wellbeing portion which come in brands that are commonly recognized names all over India. Predominant technological developments have empowered P&G to bring new and better quality products to India. P&G India is focusing on manageable development, and is as of now putting resources in India with the help of its five plants and more than nine contract producing locales. They also work significantly towards giving back to the society. P&G works under three companies in India ―Procter and Gamble Hygiene and Health Care Limited and Gillette India Limited.

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Marketing Analysis Product profile

Ambi pur Ariel Gillete Head & Shoulders Olay Oral-B Pampers Pantene Tide Vicks Whisper

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Marketing mix of P&G Product The company’s products are related to each other. The specific aim of the company is to develop their products and make the product available to all the targeted consumers. For this, they have kept the quality of products high with a reasonable price. They deal in products which are of everyday need and they have kept the quality of their products high so that the consumers trust their products.

Place One of the important strategy of the organisation is that they have a fixed manufacturing plan and a type of system for each of its product with a distribution strategy set up for more than 140 countries like India, UK, China USA and many more. The company has different manufacturing facilities for various items such as a plant for manufacturing hygiene products in the state of Goa. They also have a solid system for the distribution and assembling for their products. The company understands the significance of quick reaction and thus the entirety of its distribution procedures are efficient and taken care of with care. Its distribution network includes of manufacturers who supply the products to the wholesalers and who can move the products to the retailers. Hence, the warehouses are at advantageous part from where the access is easier.

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The main distributers of products to the customers are the small stores, chemists, retail outlets, shopping centre, and malls.

Price The price strategy of the company’s items depends generally on the nature of the product and its image esteem. Since the company has various brands under the organization umbrella, it favours different approaches to different kinds of products. For a few products, the challenges are high and there are competitive products already present. For these products, the brand has a special group that looks out for the costs of the competitive products. The company keeps a competitive pricing strategy for its products and thus keeps a price range that is very close to the price of the competitive products. Sometimes the company pursues penetration pricing policy when it has to launch new products in the market. At this point when the prices are lower than the competitive items, without trading off the quality, the customers are pulled in to such items. This helps in more sales and in creating higher no of sales for the organization. The higher class of products, the brand practices a skimming pricing policy where the prices are at a higher amount. Anyway, these items are better in quality and target to that segment of individuals who are able to purchase them.

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Promotion Procter and Gamble invests highly in promotion and insists on “Attraction strategy”. The company deals with celebrities for its promotion. They have been sponsors of many events. For online promotion, the company has an official website where consumers can easily search any information about the products and can place orders for purchasing. The company has tie ups with other online selling websites. The company also sponsors of various online communities such as “Women.com”, “Being girl.com” etc. The company also releases its products in small pouches to attract less affluent sections of the society. They also use strategies such as free sampling to promote their products.

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Market share of P&G products

Beauty and Grooming Beauty- 20% Grooming70%

Health Health - 20% Wellbeing10%

Housecare Fabric care30% Baby products15%

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SWOT analysis of P&G Strengths  The company has a valuation of $191.74 billion.  Many of its products are non- cyclical.  They own over 300 brands which can be seen in 180 countries.  More than 125,000 people are employed by the company annually.  Around 25 P&G brands generate revenue over billion dollars.

Weakness  The company is losing its market share rapidly due to its lack of presence in online media.  The beauty products by the company are only for women.  The company offers multiple products under one brand and sometimes similar products under different brands.  The company invests a lot in R&D each year, Over 2 billion dollars.

Opportunities  They can tap the rural markets to increase sales.  There is an exponential increase in middle class in emerging markets on India and China.  The company can tap a new market of men’s healthcare and beauty products.

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Threats  There is a very high competition in FMCG sector.  The growth in the private sector is a threat to the market share of the company.  There are a lot of substitutes of P&G products in the market.

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STP of P&G

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BCG Matrix

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STARS Gil ete Pantene Head & Shoulders Pampers Whisper

Cash cows Question mark Ariel Vicks Tide Oral-B

Olay

Dogs AMBI PURE

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Financial analysis Balance sheet BALANCE SHEET OF PROCTER AND GAMBLE HYGIENE AND HEALTH CARE (in Rs. Cr.)

JUN 19

JUN 18

JUN 17

JUN 16

JUN 15

12 mths

12 mths

12 mths

12 mths

12 mths

Equity Share Capital

32.46

32.46

32.46

32.46

32.46

TOTAL SHARE CAPITAL

32.46

32.46

32.46

32.46

32.46

Reserves and Surplus

876.60

773.04

493.66

1,478.75

1,196.22

TOTAL RESERVES AND SURPLUS

876.60

773.04

493.66

1,478.75

1,196.22

TOTAL SHAREHOLDERS FUNDS

909.06

805.50

526.12

1,511.21

1,228.68

Long Term Borrowings

0.00

0.00

0.00

0.00

0.00

Deferred Tax Liabilities [Net]

0.00

0.00

0.00

0.00

0.00

Other Long Term Liabilities

0.00

0.00

0.00

0.00

0.00

Long Term Provisions

65.50

48.73

51.69

3.57

3.33

TOTAL NON-CURRENT LIABILITIES

65.50

48.73

51.69

3.57

3.33

0.00

0.00

0.00

0.00

0.00

Trade Payables

547.67

406.22

363.19

324.13

372.30

Other Current Liabilities

104.32

160.63

214.97

99.74

84.65

EQUITIES AND LIABILITIES SHAREHOLDER'S FUNDS

NON-CURRENT LIABILITIES

CURRENT LIABILITIES Short Term Borrowings

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Short Term Provisions

5.36

4.27

4.15

225.95

258.72

657.35

571.12

582.31

649.82

715.67

1,631.91

1,425.35

1,160.12

2,164.60

1,947.68

234.22

250.11

285.71

316.86

308.79

0.00

0.00

0.00

0.00

0.00

14.55

21.48

40.84

34.72

38.98

0.00

0.00

0.00

0.00

0.00

248.77

271.59

326.55

351.58

347.77

Non-Current Investments

0.00

0.00

0.00

0.00

0.00

Deferred Tax Assets [Net]

36.76

22.98

26.27

7.88

3.96

Long Term Loans And Advances

39.13

42.01

50.96

171.47

238.79

Other Non-Current Assets

216.65

207.27

153.21

0.12

0.05

TOTAL NON-CURRENT ASSETS

541.31

543.85

556.99

531.05

590.57

0.00

0.00

0.00

0.00

0.00

Inventories

203.42

123.61

177.35

127.48

119.07

Trade Receivables

180.66

148.47

132.80

149.62

113.94

Cash And Cash Equivalents

540.45

399.59

116.83

1,074.87

618.58

Short Term Loans And Advances

101.27

99.40

97.60

217.79

451.16

64.80

110.43

78.55

63.79

54.36

TOTAL CURRENT LIABILITIES TOTAL CAPITAL AND LIABILITIES ASSETS NON-CURRENT ASSETS Tangible Assets Intangible Assets Capital Work-In-Progress Other Assets FIXED ASSETS

CURRENT ASSETS Current Investments

Other Current Assets

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TOTAL CURRENT ASSETS

1,090.60

881.50

603.13

1,633.55

1,357.11

TOTAL ASSETS

1,631.91

1,425.35

1,160.12

2,164.60

1,947.68

218.33

166.12

137.62

226.71

205.77

Raw Materials

0.00

0.00

0.00

209.68

193.37

Stores, Spares And Loose Tools

0.00

0.00

0.00

0.00

0.00

Trade/Other Goods

0.00

0.00

0.00

0.00

0.00

Capital Goods

0.00

0.00

0.00

25.91

24.53

753.21

559.99

467.77

184.16

166.08

--

--

--

67.49

61.35

--

--

--

8.83

8.65

24.22

26.35

55.38

0.10

0.59

23.54

23.54

23.54

23.54

23.54

OTHER ADDITIONAL INFORMATION CONTINGENT LIABILITIES, COMMITMENTS Contingent Liabilities CIF VALUE OF IMPORTS

EXPENDITURE IN FOREIGN EXCHANGE Expenditure In Foreign Currency REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS Dividend Remittance In Foreign Currency EARNINGS IN FOREIGN EXCHANGE FOB Value Of Goods Other Earnings BONUS DETAILS Bonus Equity Share Capital NON-CURRENT INVESTMENTS

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Non-Current Investments Quoted Market Value

--

--

--

--

--

Non-Current Investments Unquoted Book Value

--

--

--

--

--

Current Investments Quoted Market Value

--

--

--

--

--

Current Investments Unquoted Book Value

--

--

--

--

--

CURRENT INVESTMENTS

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Ratio analysis Current ratio The current ratio tells an organization's ability to meet short term debts. This ratio tells whether the company will have enough assets to pay its debts in future throughout the following year. Interested stake holders utilize this ratio to judge whether to invest in the company or not. Formula: Current Ratio = Current Assets) /Current liabilities 2015

2016

2017

2018

1.86

3.18

0.77

0.80

Current ratio 3.5 3 2.5 2 1.5 1 0.5 0 2015

2016

2017

2018

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Quick ratio This ratio tells us to measure current status of the organization. Book keepers to do the analysis weight current assets of the company with the current liabilities which shows the result in the proportion that show the liquidity of the company. Formula for the acid-test ratio: Quick Ratio = (Current Assets-Inventories) / (Current liabilities)

2015 1.60

2016 2.88

2017 0.43

2018 0.96

Quick ratio 3.5 3 2.5 2 1.5 1 0.5 0 2015

2016

2017

2018

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Debt – equity ratio This ratio is a proportion that shows an organization's total debt to total equity. It shows the amount of company’s funds coming from investors and creditors. A bigger ratio shows that there are more creditors than shareholders’ funds. Debt/Equity =Total Debt /Total Equity 2015 22.15

2016 20.12

2017 19.53

2018 19.09

Debt- equity ratio 22.5 22 21.5 21 20.5 20 19.5 19 18.5 18 17.5 2015

2016

2017

2018

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Debt- assets ratio This ratio shows the aggregate sum of debt with respect to assets. The higher the proportion, the higher the level of influence and, therefore, monetary fund’s shows out all obligation to add up to resources is a higher proportion that shows borrowings developing inside one year, just as all Debt – assets ratio=Total current liabilities + long term debt / total assets 2015 0.58

2016 0.44

2017 1.20

2018 0.76

Debt- assets ratio 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2015

2016

2017

2018

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Inventory turnover ratio This ratio tells the proportion that appear mainly a company. An organization would then be able to divide the days in the period by the inventory turnover ratio to know the days it takes to finish off the stock. Knowing stock turnover can help the organizations to settle on better choices on estimating, assembling, promoting and acquiring new assets of the organisation Inventory turnover ratio= Cost of products sold /average inventories 2015 4.69

2016 5.05

2017 5.71

2018 5.92

Inventory turnover ratio 7 6 5 4 3 2 1 0 2015

2016

2017

2018

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Suggestions The company is already doing well in its each segment but can always be doing better. The company need to diverse more in the FMCG sector as it is already very much filled up with a lot of competitors. Although they have tried to enter premium markets with products like OLAY, they have not been completely able to capitalize on this. OLAY lacks good promotion and...