Case Study of P&G Tide
season
Strategy for
2
in India
Brand Strategist
The Dream Team Season 2
Case Study for Strategy Development
S T R AT E G Y F O R T I D E I N I N D I A
Case Background
The Mint, 3rd December 2012: In a recent global investor meeting, Procter & Gamble affirmed that a strong momentum in developing markets continues to be a key part of its strategy. It said it will invest resources on the biggest opportunities, and aim for profitable expansion by focusing on growing markets, increasing market share, improving mix, localizing production, and leveraging scale. It is doing all of that in India. India ranks as one of P&G’s top 10 developing markets. Shantanu Khosla, who heads P&G’s India operations, also addressed this meeting, and said that the company’s value share has risen to 12% in FY12 from 2% a decade ago and sales have risen by 30% for each of the past two fiscals. Its distribution footprint has increased by 25% in the past two years, and consumers using its products have risen to 700 million, a 14% increase in just one year.
Tide Brand Background
Tide was launched in year 1946 and was touted as the biggest innovation in the detergent industry. Over the years, Tide has grown to be one of P&Gs 26 billion Dollar brands. From being the world’s first compact detergent to being the first detergent to break carbohydrate and protein stains, the Tide brand has had a history of path breaking innovations credited to its name. Every hour, P&G produces over 400,000 pounds of Tide! Tide entered India in the year 2000 spearheading P&G’s entry into the extremely competitive, India Laundry business. Over the years, the category had been dominated by Wheel, Nirma, Ghadi in the low tier segment and Surf in the premier segment. In 2003, P&G, with its renewed focus on Emerging markets decided to explode the category, thereby ushering in an era of discontinuous growth of >20% CAGR per annum. Tide mirrored the company’s progress in India, rapidly progressing from 3MM cases (per
Strategy for
2
in India
Brand Strategist
The Dream Team Season 2
Case Study for Strategy Development
S T R AT E G Y F O R T I D E I N I N D I A
Case Background
The Mint, 3rd December 2012: In a recent global investor meeting, Procter & Gamble affirmed that a strong momentum in developing markets continues to be a key part of its strategy. It said it will invest resources on the biggest opportunities, and aim for profitable expansion by focusing on growing markets, increasing market share, improving mix, localizing production, and leveraging scale. It is doing all of that in India. India ranks as one of P&G’s top 10 developing markets. Shantanu Khosla, who heads P&G’s India operations, also addressed this meeting, and said that the company’s value share has risen to 12% in FY12 from 2% a decade ago and sales have risen by 30% for each of the past two fiscals. Its distribution footprint has increased by 25% in the past two years, and consumers using its products have risen to 700 million, a 14% increase in just one year.
Tide Brand Background
Tide was launched in year 1946 and was touted as the biggest innovation in the detergent industry. Over the years, Tide has grown to be one of P&Gs 26 billion Dollar brands. From being the world’s first compact detergent to being the first detergent to break carbohydrate and protein stains, the Tide brand has had a history of path breaking innovations credited to its name. Every hour, P&G produces over 400,000 pounds of Tide! Tide entered India in the year 2000 spearheading P&G’s entry into the extremely competitive, India Laundry business. Over the years, the category had been dominated by Wheel, Nirma, Ghadi in the low tier segment and Surf in the premier segment. In 2003, P&G, with its renewed focus on Emerging markets decided to explode the category, thereby ushering in an era of discontinuous growth of >20% CAGR per annum. Tide mirrored the company’s progress in India, rapidly progressing from 3MM cases (per