Procter and Gamble is one of the largest companies across the world and it claims to touch the lives of millions of people across the world almost four billion times a day. The company provides for the basic essentials of people across the world and manufactures various products like toiletries like soaps, toothpastes, toothbrushes, clothes washing powder, razors and the cartridges, Baby care products, and many other products (P&G). These form the basic requirements of people across the world and are used on a daily basis.
Procter and Gamble currently uses an Administered Vertical Marketing System (VMS). A Vertical Marketing System is described as a marketing channel that coordinated by a single channel member. Here all the activities are managed to ensure lower cost of distribution, and high efficiency. In the case of Procter and Gamble the company currently adopts the Administered form of Vertical Marketing System. This simply means that the channel members are channel members have a high level of inter – organisational management in an informal manner and the members are independent. Here there is an agreement to adopt a uniform accounting policy and the promotional activities as well (P&G). In most cases there is one channel which tends to dominate and hence becomes a channel leader.
P&G’s move into the ecommerce stores is one of the best steps that the company has taken. In the current world, where the customers are dependent on the Internet for almost all of the daily work, for a retailer not to move into the online presence could be referred to as an invitation for its own demise. It has been noted that in the current time there are three main types of shoppers, a) those who prefer to shop at retail outlets, b) those that prefer to shop online, and c) those who prefer to shop both online as well as from the retail outlets (Mininni).
It has been noted that there has been a constant rise in the use of the internet as a mode of