Market Analysis of P&G India

Market opportunity for Procter & Gamble

India is emerging as the land of opportunity according to P&G CEO Bob McDonald. India has 1.2 billion people and per capita spending on P&G products is less than $1 per person per year. It is negligible in comparison with similar figures in other countries viz $100 in USA, $20 in Mexico and more than $3 in China. Only 1 out of 3 Indian is a P&G consumer according to research carried out by P&G. Developing markets across the world contributes about 32% of P&G revenues. If people in India and China spend on P&G products as much as Mexico, P&G would add about $40 billion which is a 50% increase from current levels. The Indian consumer packaged goods industry is a $24 billion industry and is growing at 12% per year which itself indicates a huge opportunity for a company like P&G.

P&G is a market leader with Oral-B toothbrushes but it doesn’t sell its billion dollar global brand CREST in India. P&G is planning to launch toothpaste products in India under the CREST or Oral-B label according to a recent report in Indian news media. Colgate accounts for about 50% share in Indian toothpaste market in 2009 while the rest 50% is divided between HUL’s subsidiary and few smaller Indian companies like Dabur. P&G growth strategy is reaching “more consumers, in more parts of the world, more completely.”

P&G recent entry in Indian market with top global brands has been a success whether it is Pamper Diapers or Olay skin care. P&G is no.1 in feminine care, baby care, anti-aging, health care, blades and razors, batteries and no. 2 in the oral care segment. P&G creates products specifically for the Indian market. One of the product tailor-made for India is world’s lowest cost diaper Pampers Magic Nicker at a price of 12 cents per diaper. It has also introduced a mid-tier razor, Gillette vector plus, designed with a push clean button to account for inaccessibility to running water...