Procter & Gamble Non-metros Presence Rises To 60 Per Cent

Mumbai, September 16: | Updated: Sep 17 2003, 05:30am hrs
Procter & Gamble India, in the last one year, has increased its presence in the non-metro towns to 60 per cent, thus overtaking the presence in metro towns which is at 40 per cent. This has come on the back of an increase in penetration aimed at achieving growth.

When contacted, a company spokesperson confirmed the development. According to sources, the company is further enhancing its distribution reach to top 2,000 towns in the next 6-8 months. This is a clear sign that the company is training its eyes on non-metro towns as opposed to its earlier strategy of focusing mainly on metro towns, said an industry analyst. Sources say that the new strategy bears its root in the re-entry of P&Gs marketing and sales director Chester Twigg into India, while its country manager Shantanu Khosla continues to additionally focus on the AAI (Asean-Australasia-India) region for health care. With increase in distribution and penetration, industry analysts say, P&G would increase its expenditure on advertising and marketing.

P&G on Monday announced a reduction in its detergent sachet price to Re 1 from Rs 2 for Tide and to Rs 2 from Rs 3 for Ariel. However, prices of its large packs remain unchanged. P&G Indias laundry business turnover is about Rs 200 crore, and has been growing at around 6-8 per cent, said sources.

This sachet price-value strategy has been successful for P&G earlier in China and Philippines, prior to the India launch. Mr Khosla said, Most detergent sachet consumers use Tide and Ariel sachets for their good clothes. Hence, improving the price-value proposition on sachets will give many more consumers the opportunity to use Ariel and Tide sachets not just for their good clothes, but all clothes.