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UNIVERSITY OF PETROLIUM AND ENERGY STUDIES

3’C REPORT : MARKETING MANAGEMENT

SHIVAM JAIN

11/11/2014

1

CONTENTS

1. Proctor & Gamble : Introduction of company

Finance status

Market share

Customers

Products

Area of operation

Product Mix

2. Johnson & Johnson : Introduction of company

Finance status

Market share

Customers

Products

Area of operation

Product Mix

3. Amway : Introduction to company

Finance status

Market share

Products

Customers

Area of operation

Product Mix

4. Strategies : Pricing strategies

Promotion strategies

Distribution strategies

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5. Conclusion :

“PROCTER &

GAMBLE“

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 pet foods,

cleaning agents, and personal care products.

Procter & Gamble Co. provides branded consumer packaged goods to its

consumers around the world. Its products are sold primarily through

mass merchandisers, grocery stores, membership club stores, drug

stores, high frequency stores, and neighborhood stores which serve

many consumers in developing markets. The company also intends to

expand its presence in other channels, including department

stores, perfumeries, pharmacies, salons and e-commerce. It operates

through the following segments: Beauty, Grooming, Health Care, Fabric

Care & Home Care and Baby Care & Family Care.

P&G operates under three entities in India - two listed entities “Procter

& Gamble Hygiene and Health Care Limited” and ‘Gillette India

Limited’, as well as one 100% subsidiary of the parent company in the

U.S. called ‘Procter & Gamble Home Products’.

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FINANCIAL STATUS

REPORT:

Total Revenue 20,792,000 19,018,000 20,559,000 22,655,000

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Cost of Revenue 10,552,000 9,919,000 10,601,000 11,366,000

Gross Profit 10,240,000 9,099,000 9,958,000 11,289,000

Operating Expenses

Research Development - - - -

Selling General and Administrative 6,327,000 5,972,000 6,500,000 6,706,000

Non Recurring 973,000 - - -

Others - - - -

Total Operating Expenses - - - -

Operating Income or Loss 2,940,000 3,127,000 3,458,000 4,583,000

Income from Continuing Operations

Total Other Income/Expenses Net 52,000 165,000 49,000 66,000

Earnings Before Interest And Taxes 2,992,000 3,292,000 3,507,000 4,649,000

Interest Expense 169,000 178,000 179,000 187,000

Income Before Tax 2,823,000 3,114,000 3,328,000 4,462,000

Income Tax Expense 820,000 572,000 692,000 972,000

Minority Interest (30,000) (41,000) (27,000) (44,000)

Net Income From Continuing Ops 2,003,000 2,643,000 2,609,000 3,416,000

Non-recurring Events

Discontinued Operations 17,000 78,000 - (18,000)

Extraordinary Items - - - -

Effect Of Accounting Changes - - - -

Other Items - - - -

Net Income 1,990,000 2,579,000 2,609,000 3,428,000

Preferred Stock And Other Adjustments - - - -

Net Income Applicable To Common Shares 1,990,000 2,579,000 2,609,000 3,428,000

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MARKET SHARE:

PRODUCTS:

Fabric & Home Care, Baby & Family Car, Beauty Care, Health Care,

Deodorants, Beverages, Grooming And Other.

AREA OF OPERATION:

Worldwide (over 180 countries)

CUSTOMERS:

From Infants To Old Age People

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(PRODUCT MIX FOR PROCTER &

GAMBLE)

BEAUTY CARE

FOOD & BEVERAGES

HEALTH CARE

LAUNDRY CLEANING

PAPER

COSMETICS:

Cover Girl

Oil Of Olay

Fat free

pringles

Sunny

delight

Tender leaf

tea

ORAL CARE:

Crest

Fixodent

Gleem

DISH CARE

Cascade

Ivory Dish

Joy

BABY DIAPERS:

Luvs

Pampers

DEODRANT:

Old Spice

Secret Sure

Pepto-

Bismol

Hawain

Punch

RESPIRATORY CARE:

Vitamin c

drops

Vaporabs

Vicks 44

LAUNDARY

: Bold

Bounce

Cheer

TISSUES & TOWELS:

Bounty

Puffs

Royalle

Charmin

SKINCARE: Safeguard

Zest

Camay

Ivory

Sunny

Delight

Millstone

Olean

Nyquil HARDSURF

ACE

CLEANERS: Comet

Mr. Clean

HAIRCARE: Pantene

Head &

Shoulders

Vidal Sasoon

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“JOHNSON &

JOHNSON“

Caring for the world, one person at a time... inspires

And unites the people of Johnson & Johnson. We embrace research and

science - bringing innovative ideas, products and services to advance the

health and well-being of people. Employees of the Johnson & Johnson

Family of Companies work with partners in health care to touch the lives

of over a billion people every day, throughout the world.

Our Family of Companies comprises:

The world’s sixth-largest consumer health company

The world’s largest and most diverse medical devices and

diagnostics company

The world’s sixth-largest biologics company

And the world’s sixth-largest pharmaceuticals company

Selling makeup and vitamins to friends and family is a way of life at

Amway International. One of the world's largest direct-sales businesses,

Amway boasts more than 3 million independent consultants who sell its

catalog of more than 450 personal care, household, nutrition,

and cleaning products. It also sells the products and services of other

companies in 80-plus markets worldwide. Revival-like techniques are

used to motivate distributors (mostly part-timers) to sell products and

find new recruits to build the multi-level marketing platform. Operations

outside of the US generate about 80% of sales, mainly in Asia. Founder

Richard DeVos and the Van Andel family own Amway and its parent

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company.

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FINANCIAL STATUS

REPORT:

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Period Ending 29-Jun-2014 30-Mar-2014 31-Dec-2013 29-Sep-2013

Total Revenue 19,495,000 18,115,000 18,355,000 17,575,000

Cost of Revenue 6,039,000 5,455,000 5,955,000 5,344,000

Gross Profit 13,456,000 12,660,000 12,400,000 12,231,000

Operating Expenses

Research Development 2,005,000 1,831,000 2,411,000 2,042,000

Selling General and Administrative 5,481,000 5,183,000 5,917,000 5,314,000

Non Recurring 4,000 18,000 338,000 178,000

Others - - - -

Total Operating Expenses - - - -

Operating Income or Loss 5,966,000 5,628,000 3,734,000 4,697,000

Income from Continuing Operations

Total Other Income/Expenses Net (212,000) (68,000) (850,000) (925,000)

Earnings Before Interest And Taxes 5,754,000 5,560,000 2,884,000 3,772,000

Interest Expense 128,000 136,000 134,000 105,000

Income Before Tax 5,626,000 5,424,000 2,750,000 3,667,000

Income Tax Expense 1,300,000 697,000 (769,000) 685,000

Minority Interest - - - -

Net Income From Continuing Ops 4,326,000 4,727,000 3,519,000 2,982,000

Non-recurring Events

Discontinued Operations - - - -

Extraordinary Items - - - -

Effect Of Accounting Changes - - - -

Other Items - - - -

Net Income 4,326,000 4,727,000 3,519,000 2,982,000

Preferred Stock And Other Adjustments - - - -

Net Income Applicable To Common Shares 4,326,000 4,727,000 3,519,000 2,982,000

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MARKET SHARE:

PRODUCTS:

Baby Care, Women’s Health, Beauty, OTC, Oral & Wound Care, ASP,

Cardiovascular Care.

AREA OF OPERATION:

Worldwide

CUSTOMERS:

From infant to old age peoples.

Babies Are The Main Consumer.

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Pharmaceutical

(PRODUCT MIX FOR

JOHNSON & JOHNSON)

SKIN

CARE

ORAL

CARE

BABY &

CHILD CARE

NUTRITIONAL SKIN & HAIR

CARE

Cleansing

wipes

Refreshing gel wash

Cleansing

lotion

Skin oil

Shower

gels

Moisturise

hand

creams Body

washes

LISTERINE:

Antiseptic

mouthwash Anticavity

mouthrinse

Ultra clean

floss

Oral care strips

Oral care mist

Anticavity fluoride rinse

Johnsons

baby

intense

cream

Destin

relief

cream

Baby oil

Baby

powder

Baby lotion

SPLENDA:

Splenda

sweetener

Splenda sugar

blend

Splenda flavored

coffee

BENECOL:

Benecol spreads

Benecol smart

chews

ROGAINE:

Unscented

foam

Strength

solution

Topical

solution

CLEAN &

CLEAR:

Smoothing

facial scrub

Absorbing

sheets

REMBRANDT:

Rembrandt

whitening kit

Whitening

mouthwash

Stain strips

Lactic:

Lacataid

eggnog

Lactaid ice-

cream

Acne cleanser

Mark

treatment

Cleasing

facewash

Action

moisturizer

Intense stain

toothpaste

Intense fresh

mint

Lactaid

supplements

Lactaid cottage

cheese

NEUTROGENA:

Gentle daily

cleanser

Post shave

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toothpaste lotion

AMWAY: Over 52 years ago, two men had a dream

for a better life for their families. They

built a company on principles, people

and products that have touched millions

of lives around the world. Amway (short for American Way) is an American company using multi-

level marketing techniques to sell a variety of products, primarily in the

health, beauty, and home care markets. Amway was founded in 1959 by

Jay Van Andel and Richard DeVos. Based in Ada, Michigan, the

company and family of companies under Alticor reported sales of

USD$11.3 billion for the year ending on December 31, 2012—the

seventh consecutive year of growth for the company. Its product lines

include home care products, personal care products, jewelry, electronics,

Nutrilite dietary supplements, water purifiers, air purifiers, insurance and

cosmetics. Amway conducts business through a number of affiliated

companies in more than a hundred countries and territories around the

world. Amway was ranked No.114 among the largest global retailers by

Deloitte in 2006, and No.25 among the largest private companies in the

U.S. by Forbes in 2012.

Amway combines direct selling with a multi-level marketing strategy.

"Independent Business Owners" (IBOs) may market products directly to

potential customers and may also sponsor and mentor other people to

become IBOs.

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16

FINANCIAL STATUS

REPORT :

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MARKET SHARE:

PRODUCTS: Vitamins & Supplements, Skin care, Make-up, Hair

care, Body care, And Oral care.

AREA OF

OPERATION:

Worldwide

CUSTOMERS:

Richer Segment Of Class

Womens Are The Main Consumer

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BEAUTY CARE

FOOD & BEVERAG

ES

HOME CARE

NUTRITION &

WELLNESS

BATH & BODY

MAKEUP: Cheeks sun

kissed luminous

Cheeks pink passion

Concealer

deep dark

Concealer

tan

BARS &

SNACKS:

Chocolate

nut roll

Peanut

butter

Mixed

berry

smoothie

AIR &

WATER: E-Spring

water

purifier

Laundry

Cleaning: SA8+

concentrated

Detergent

BONE

HEALTH:

Cal mag D

Vitamin

D3

BRAIN

HEALTH: Ocean health

HAIR

CARE:

Satinique

shampoos

Satinique

cleansers

Concealer

fair Maskara

mink

Maskara noir

BEVERAGES

:

Fruit punch

Sugar free

orange

CANDLES &

AIR

FRESHNERS

: Be gone

absorber

Be gone air freshner

ENERGY: Nutrilite

siberian energy

HEART HEALTH:

Protein powder

Cholestrol

Health

BODY

CARE: Body series

bar soap

Body series hand body

lotion

MULTINUT-

RIENTS:

Nutrilite

mineral

Nutrilite

vitamin

ORAL

CARE: Glister

toothpaste

Nature’s

gate natural

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(PRODUCT MIX FOR AMWAY)

PRICING STRATEGIES

Pricing strategies of Proctor & Gamble:

Competitive Pricing

Product line pricing

Cost plus pricing

Optional feature pricing

Attractive pricing

Distribution pricing

Pricing strategies of Johnson & Johnson:

The prices were setted up for their products to help in fulfilling their

commitment. Ensuring a fair return to their stakeholders.

They work to keep their growth by hitting the sales in the world

through various kinds of promotions.

By providing high quality of products to nurses, doctors, parents, and

patients with as minimum price drop as they can.

Competitive rates were offered on various products depending upon

the needs and requirement of the consumer.

Pricing strategis of Amway:

“USP” Unique Selling Proposition pricing

toothpaste

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Cutting down the production and delivery costs with the print-based

materials.

Members of were provided a slots of discounts ranging from 25-30%

on all Amway products. Selling those getting 25-30% of retail bonus

or incentive.

PROMOTION STRATEGIES

Promotion strategy of Proctor & Gamble:

All forms of advertisements. Amway relies on promotions through famous personalities like; Tim

Foley, Sandra Bullock, Ron Dayne Ronaldinho etc. Company has recently announced ad campaigns. By providing demos of their products in social streets. P&G is sponsoring more than 100 athletes.

Various promotional offers.

They have also launched “thank you, mom campaign”.

Promotion strategy of Johnson & Johnson:

Launched “Dubbed Cake Smash” campaign through Instagram. As

to provide and share Interactive and Social expirience of infants first

birthday.

Broader social & video campaigns through youtube.

Educational Brochures.

Johnson & Johnson has expanded around 2.810 billion on advertising

in 2006 to 2010(approx.).

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J&J promotes their baby care products by simply advertising their

products through images, commercials, and displaying images or

videos of infants; targeting parents.

By reaching their global market through promotions and campaigns

such as: “earthWords- Moving towards a healthy future” Promoting

greener products development, Worksite health programme”

Various promotional offers.

Promotional strategies of Amway: By offering special prices on monthly basis on several products.

Amway give free samples to their corporate families and friends to

expose the market by converting them into IBO’S.

Amway offers memberships for their patrons.

Newsletter and Bulletins on monthly and yearly basis.

Samples, coupons, money back, free gifts, demonstrations, two for

the price of one incentive techniques.

Magazines, newspapers, and poster sites and many more.

Amway Coaches Poll powered by USA TODAY Sports.

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DISTRIBUTION

STRATEGIES

Distribution strategies of Proctor & Gamble:

P&G broadens the market by slashing it’s no. of distributors down

to one tenth of it’s size. P&G keep growing on ROI(Return On Investment) which resulted

in each distributor trying to extend it’s reach to push up volumes.

Within a limited number of distributers , P&G will also not need to

invest in C&F agents.

P&G is giving 6% margins to distributors

P&G is spending around 30-35% of its sales in advertisements &

promotions which is highest among others.

MANUFACTURER PLANT-C/F-DISTRIBUTOR-

OUTLETS/SHOPS-END CONSUMER/USER.

Distribution strategies of Johnson &

Johnson:

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J&J is positioning it’s new distribution channel to market for each

product like:

1. Supermarket

2. Hypermarket

3. Discount store

4. Corner shops

5. Internet

J&J is positioning its distribution channel as a great alternative to

door to door sales cookies, wrapping paper or candy.

Over 100 distributors have signed the agreement none of the publicly

traded medical distributors.

Johnson and Johnson products can be found at the following retail

outlets: Target, Walgreens, Wal Mart, Vons and Eversave, to name

but a few.

DISTRIBUTION CHANNEL:

1200 Dealers

15,000 Sub-dealers

49 Branches

Numerous Franchisees

54 Modern Retail Outlets

39 Depots

Distribution strategies of AMWAY:

AMWAY is supporting and providing direct selling in the digital age.

AMWAY is riding a GEN Y wave. Amway (short for the “American way”) is now one of the world’s

largest direct-selling businesses, with a global network of more than

3 million distributors in more than 100 countries.

URBAN Penetrations.

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Strategic locations of warehouses.

Increase in wholesale chain in small towns so that they can achieve

their potential in combinations of people status.

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CONCLUSIONS

“As we are living in a high profile modern way of living,

somehow this fact is unknown to most of us as middle or lower

class people.”

As according to my report I must conclude that this also creates

a big gap in products which we are using or others are forcing to

use as big companies for all class of people.

As in this in have mentioned the top 3 major companies present

in this scenario as Proctor &Gamble, Johnson & Johnson and

Amway. All the companies has lot more comparasions to make

between each other but according to me each is different from

other on a minor change that may be quality or price or

durability or class for which product is made so we can have a

glance as : Amway is basically for high society personalities and

that’s the main area they earn revenues from, while on other

hand Johnson & Johnson is related mainly with baby care

products in comparasions to other two companies in portfolio.

And at last proctor & gamble relates itself with every society of

personalities whether it is for high class, middle class or the

lower class. They all have to milestone positions after creating

many vast strategies to stand in the market and attracting

consumer to their products. Which help them to showcase

themselves as a global business.