P&G Dream Team League

Caselet 5 - Project Clean-up

Background
Project Clean-up aimed to explode Ariel and Tide volumes by value correction while leveraging their strong equity. The launch took
off in a great way and the actual demand left all the projections far behind. As you can see in the Annexure, the forecast before the
launch was 2700 MSU / year while the actual demand spurted to 9000 MSUs/year in a short span of 3 months after the launch. This
posed a huge challenge to organization as a whole as the business team didnt want to lose the momentum generated post the value
correction.

How will the brand manager for Ariel and Tide sustain the demand levels over the next 2 years? Give specific actions / consumer
insights that will help the next phase of growth.

Below are the 3 key challenges faced by the plant team in its endeavor to support the business growth :
1.

Since the volume growth could have been unsustainable, to meet the production requirement, should we invest in-house
or should we outsource?

2.

What should be our response if the competitors reduce their prices below our levels?

3.

The project was based on the estimated savings targets and capital investment. So should we opt for P&Gs standardized
technology with low risk or low cost local technology with high risk?

Give an estimate calculation of capital investments, savings and overall ROI for the launch.

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Annexure - 1

Estimated Forecast (MSU) in first year of launch:

Annual forecasted volumes for 1st year of launch
Ariel Sachets
Ariel Bags
Tide Sachets
Tide Bags
Total Demand (MSU)
Total Sachets (A+T)

1147
1235
755
1453
4590
1902

Total Bags (A+T)

2688

Actual Demand (MSU) in first year of launch:

Yearly volumes Before
launch

Yearly volumes
Post launch

Ariel Sachets

550

2200

Ariel Bags

900

1455

Tide Sachets

250

1480

Tide Bags

700

3000

Total Demand (MSU)

2400

9100

Total Sachets (A+T)

800

3680

Total Bags (A+T)

1600

4455

Making Capacity in MT
Available Before
launch
10000

Needed based on estimated

forecast

Needed based on actual

Demand

43820

112320

Sachet Packing Capacity in MSU

Available Before
launch
1100

Needed based on estimated

forecast

Needed based on actual

Demand

2160

4800

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No. of sachet Lines
Available Before
launch
2

Needed based on estimated

forecast

Needed based on actual

Demand

11

17

Bags Packing Capacity in MSU

Available Before
launch
1600

Needed based on estimated

forecast

Needed based on actual

Demand

3600

6120

Needed based on estimated

forecast

Needed based on actual

Demand

No. of Bags Lines

Available Before
launch
2

Annexure - 2

Cost Data:
Making
Cost of outsourcing Intermediate (bulk) from contract locations: Rs 500/MT
Lead Time to start a contract location for intermediate: 3 months
Cost of making the intermediate (bulk) In-house by increasing the in-house capacity: Rs 300/month
Lead time to increase the In-house capacity for bulk: 12 months
Packing
BagsCost of Packing base Bags at contract location: Rs350/MT
Leadtime to start a Bags packing location: 4 months
Cost of Packing Base Bags In-house: Rs300/MT
Leadtime to install a Bags Packing m/c Inhouse: 6months
Cost of P&G Standard UVA m/c: $800M
Cost of Local Hassia Redatron m/c: $200M
Sachets
Cost of Packing Sachets at contract location: Rs1600/MT
Leadtime to start a sachets packing location: 3months

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Cost of Packing Sachets In-house: Rs1000/MT
Leadtime to install a Sachet Packing m/c Inhouse: 6months
Cost of P&G Standard Hassia m/c: $700M
Cost of Local Shubham m/c: $70M
Other Information
1.

The contract location for Packing has to meet Health safety and environment guideline if it is to be operated for more
than 4 months.

2.

Rapacking location at any excise free zone saves tax out go.

3.

ITOS location has to undergo through a GMP audit and get a Rating of > 50% before start up.

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Contest Rules
The Dream Team League offers you to provide your solutions to the everyday challenges in the FMCG industry. Cases would be
uploaded on the Facebook group every fortnight.
1.

Cash prizes of Rs. 30,000; 15,000 and 7,500 for the winning teams of this caselet. Winning teams will also qualify for the final
round to be held at P&G Mumbai Head Office.

2.

Participating teams are expected to work on the real challenges faced by Multifunction Team as outlined in the caselets.

3.

You are expected to go beyond the provided information in the case and bring fresh research and insights.

4.

The caselets require you to work on 7 functions primarily IDS, CBD, PS, F&A, CMK, HR and Marketing.

5.

Entries must be submitted before the deadline, which will be communicated on the Facebook group.

6.

Contest open to 1st and 2nd Year students of the following institutes:

IIM Ahmedabad
IIM Bangalore
IIM Calcutta
IIM Lucknow
IIM Indore
IIM Kozhikode
MICA
XLRI Jamshedpur
SP Jain
NITIE
TISS
FMS Delhi
JBIMS
SCMHRD
Delhi School of Economics
MDI Gurgaon
IIT Bombay*
IIT Madras*
IIT Delhi*
Shailesh J Mehta School of Management
*For IITs, pre-final and final year undergraduate students can participate
7.

Students from other streams such as the Part Time Program, Management Development Program, Executive MBA Program,
FPM Program and not from the above listed schools, are not eligible to participate.

8.

There is no separate registration required to participate in the contest.

9.

Teams of up to 3 members can participate in the League. Teams can have students from different campuses as well.

10. Winning teams for each caselet to get attractive prizes and a chance to participate in the final Dream Team contest to be held
at Mumbai. The guidelines for the final contest would be shared by the qualifying teams separately.
11. Solutions to the caselets to be sent to indiarecruitment.im@pg.com by the stated deadline in not more than 1 page (500 words
in MS Word count) in MS Word Times New Roman font size 10. No additional attachments to be included. Please mail the
solutions through the institute Mail ID.
12. Solutions to clearly indicate Names, Institute, ID No, Mobile No, Mail ID and Team Name.

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13. File should be named as <Case No>-<Institute Name>-<Team Name>.doc; Eg. 1-XLRI-Champions.doc
14. Sources / references for data for the solution to be clearly mentioned in the footnote
15. Winners will be declared at periodic intervals on Facebook group. Prizes would be couriered to the respective Placement
committee / Placement office.
16. Queries to be sent to indiarecruitment.im@pg.com with subject line : Query - Institute Name
17. Data provided in the caselets is indicative only and is provided for the purpose of the competition.
18. There will be a total of 8 caselets in the contest.

Evaluation parameters
A.
Quality of Analysis
B.

Quality of Presentation

C.

Innovation

D.

Evidence of Multifunctional Approach

Usefulness for Business Implementation