P&G India Supply Chain Analysis

India is one of the most desirable retail destinations in the world. India’s twin growth engines of economic growth and demographic

2-Introduction 2.1-About FMCG Industry Fast Moving Consumer Goods (FMCG) industry is one of the fastest growing industries in the world, which consists of food as well as non-food consumable products. The volume purchased by end users is usually on a small scales and everyday use basis. This industry had suffered immensely during the global financial crises however, most of the companies conquered profitability and sales growth by 2010. These products are mostly available at supermarkets, chain stores, hypermarkets, grocery stores, etc. The

As we all know, the retail industry is very crucial and is highly competitive. As this company

Procter & Gamble (P&G) is a Fortune 500 American multinational company, and a world 's leading consumer goods company. P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G now has 50 Leadership Brands, which are among the world 's best known and which account for more than 90% of P&G sales. P&G entered the Chinese market through a joint venture in 1988. Now, P&G is the most successful foreign marketer in China as measured by market share.

Bargaining Power of Suppliers — Moderate. As the suppliers are the main players in the market, they are able to negotiate favorable terms and conditions for their products. The supplier’s brand loyalty helps with leverage, as these products are one of a kind in this type of market.

•  India's $250 billion retail business is the eighth largest in the world and has the potential to grow 7 per cent by 2011. [McKinsey Report] For a company already dominating the world markets, this is an un-passable opportunity.

The Reliance Fresh ventured into the retail business with the famous Farm to Fork model with necessary modifications to Indian context. As per the Farm to Fork model, the company will take control of the product from farm to the other end of chain, consumer’s consumption.

P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study. For example, P&G's corporate strategists must account for the likelihood of one of their products cannibalizing the sales of another.

In India, the middlemen between the producer and the retailer also played a prominent role in the retail and wholesale industries. Walmart’s proposal was to cut out these middlemen and to connect the producers directly to the retailers, in order to reduce the inefficiencies in India’s traditional supply chain. This was to be implemented through the joint venture, wherein Bharti would manage the retail store operations and Walmart would focus on logistics capabilities and building the supply chain. However, cutting out middlemen would create more opposition to Walmart’s presence in India. Notwithstanding the benefits that Walmart could bring to India, the retail lobby increased its protest against Walmart’s entry to the Indian retail

P&G is the world 's largest consumer goods company that markets more than 300 brands in over 180 countries. Many of its products are non-discretionary; however, some are considered premium purchases and their sales suffered during the recession as cheaper, generic purchases rose. P&G has some of the strongest brands in the world that usually provide it a significant competitve advantage. It cut prices up to 10% on a wide swath of products to blunt any potential loss of market share. Below is a summary of the company 's competitive position.

There are several cultural factors that will be affected by Wal-Mart’s entrance into India. If a giant corporate retail company, such as Wal-Mart, enters India it will have a direct impact on millions of farmers and people employed in small businesses. India is a land of retail democracy with hundreds of thousands of bazaars located across the country. In India, main streets are called bazaars as they are lively, vibrant and a source of livelihood for millions of people. Many citizens believe it is part of Indian culture to have crowded lanes with people selling shoes, toys, clothes, and much more. There are cafe owners making coffee and frying potatoes for people on the road sides. Moreover,

But Patanjali chooses not to do so because it wants to provide organic products at affordable prices. In case of Patanjali, they are still increasing their workforce operating units and technological advancement but still it is difficult for them to meet out the demand that is arising in the market. If Patanjali wants to obtain equilibrium they have to increase the supply of the products to meet the demand. According to the sources, it is said that the fill rates of Patanjali products are in the range of 40-50%. On the other hand, other FMCG companies in India such as Nestle and HUL have a fill rate of

Foreign brands whose outlets are opening up in India as per the norms, where the Government is allowing up to 100% FDI in single-brand retail and 51% FDI in multi-brand retail.

P&G is one of the leading companies that are operating in the household consumer product industry. P&G’s threat of substitution is extremely high as there are many companies producing household consumer products, both national and international such as Clorox, Kimberly-Clark and Colgate-Palmolive CL. Also, P&G is also competing with retailers private label brands such as Walmart’s Great Value. Because the consumer’s switching costs between products are low, the quality, price, brand loyalty and differentiation of a product is very important in influencing consumer’s purchasing decision.

P&G is a multinational Organization of consumer goods situated in United States. It sells products like personal care, cleaning agents, pet foods. The P&G Company is well known for its unique strategy which cares about the need of human. It not only makes its product available to its consumers but also tries to improve the life of its consumers. This strategy is more focus on its consumers wants and that is why it has an appeal to the heart of the consumer. The company has diversified its product line and also acquired other companies which have significantly contributed in the growth of their profitability.