The FMCG giant’s business in India is currently split, with planning handled by Starcom and buying by Madison.
A source involved in the review suggested that the decision to hold a pitch resulted from lobbying from agencies competing to offer more attractive rates.
A source involved in the review suggested that the decision to hold a pitch resulted from lobbying from agencies competing to offer more attractive rates.
P&G faces stiff challenges in India, not only from rivals Unilever, Godrej and Colgate-Palmolive, but also from the changing Indian consumer whose attention has shifted from FCMG brands to newer brands such as mobile and financial services.
Without a food division, P&G is at a disadvantage to its giant competitor Unilever, which first set up an Indian subsidiary in 1931.
In terms of branding, Uni-lever has already enjoyed considerable success by capitalising on digital and entertainment channels, areas in which P&G needs to be more active, the source said.
The difficulties now being faced could in part be attributed to P&G’s cautious approach to the Indian market, explained the source.
P&G has only recently begun to seriously focus on India, after concentrating instead on its regional hubs in Asia.
Importantly, P&G’s inability to roll out a successful rural operation, in the manner of Unilever, also remains a key drawback, said the source.
