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P&G to do a turnaround, may offer freebies

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P&G to do a turnaround, may offer freebies

ORG-MARG’s plans to include consumer offers as part of its retail audits may force Procter & Gamble India (P&G) to do a rethink on its policy of not giving too many consumer offers on products.

According to company sources, P&G does less promotions than others. Since ORG is doing a pilot run, the company will wait and see what the new data shows and then decide how it will decided on promotions.

Most FMCG majors like Hindustan Lever, Godrej Consumer Products, among others, who pose competition directly or indirectly to P&G, offer retail level promotions on an ongoing basis.

ORG-MARG’s move to take into account consumer offers such as promotions and freebies or price off as part of its retail audits would lead to the realisation of actual market share positions of FMCG players.

ORG-MARG, which earlier did not take into account promotions as part of the audit, has now decided to do so given the fact that consumer offers and promotions have risen substantially in the recent past and have become a regular feature at the retail end.

According to industry sources, in 2001, there were as many as 2,050 promotional schemes of all kinds in the FMCG industry. The categories, which witnessed the maximum number of promotions, were toilet soaps, toothpastes and biscuits, in that order. In 2000, the number stood at 1,954 schemes, with the categories in which consumer offers were higher being toilet soaps, tea and toothpastes.

Source: Financial Express


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