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Industry Introduction:

Procter & Gamble Pakistan

The consumer market especially FMCG is one of the fastest growing industry in Pakistan and
there are many players of global fame like Unilever, Nestle Pakistan, Colgate Palmolive, PEPSI
CO, Kraft Foods and well established local contributors for instance, Tapal Tea Pakistan Pvt Ltd,
Engro Foods, Seasons Canola Pakistan( Wali Oil Mills).
There are major capital cities like Karachi, Lahore, Islamabad, and Multan. Being the big cities
their portion in every Category/brand is always more than the others. The cities like Faisalabad,
Peshawar, Gujranwala and Gujarat, Quetta etc are included in 2nd layer cities in this regard.
There are many companies who has their business limited to the top cities only. According to a
latest survey the total base of Lahore has now been increased up to 28000 shops.
All these channels have different contributions in total sales volume which varies from product
to product. There is an independent importance of each channel in the eyes of the companies and
they strive their best to take maximum share out of the total sales.

Company Overview:
Procter and gamble is a fortune 500 American multinational corporation headquartered in
downtown Cincinnati, Ohio. It manufactures a wide range of consumer goods. In 2011, P&G
recorded $82.6 billion dollars (4 lac crores). Procter & Gamble is the largest consumer
goods company in the world and sells products under more than 50 brand names. The
Procter and Gamble Company is today more familiarly known as P&G in most of the
English-speaking world, and has grown from its humble roots as a Cincinnati soap maker to
one of the 20 largest multinational corporations in the world (based on sales). P&G racked
up over $76 billion in total sales in 2009.
The Procter & Gamble Company (P&G) boasts dozens of billion-dollar brands for home,
hair, and health. The world's largest maker of consumer packaged goods divides its
business into five global segments. The company also makes pet food, water filters, and
over-the-counter acid-reflux medication. About two dozen of P&G's brands are billiondollar sellers, including Always, Braun, Crest, Fusion, Gillette, Head & Shoulders, Mach3,
Olay, Oral-B, Pantene, and Wella in the beauty and grooming segment, as well as Bounty,

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Procter & Gamble Pakistan

Charmin, Dawn, Downy, Duracell, Gain, Iams, Pampers, and Tide in the household care
segment. P&G's hundreds of brands are available in more than 180 countries.

Market Demographics:
Population: 176,242,949
Growth Rate: 1.828%
Birth Rate: 27.74 births/1000 population
Death rate: 8 deaths/1000 population
Net Migration rate: 1.24 migrants/1000 population
0-14 years: 37.2% (male 33739547/ female 31868065)
15-64 years: 58.6%
65 years and over: 4.2%

Industry Analysis:
Population: 176242949
Children: 37.2% (65607612)
Adults: 62.8% (110680572)
Children Equity: (14643619)
Adult Equity: (27802960)
Total Target Market: 42446579

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Procter & Gamble Pakistan

Procter & Gamble Pakistan

Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in Pakistan in


1991. P&G goal was to become the finest global consumer goods company operating locally in
Pakistan. To fulfill this goal, we are serving Pakistani consumers with 12 high-quality brands
locally that strive to make everyday lives better.
With commitment came growth, and in 1994 we acquired a soap-manufacturing facility
sprawling seven acres of land at Hub, Baluchistan. In 2002, the plant tripled its soapmanufacturing capacity with an investment of $3 million. In 2004, with an initial investment of
about half a million U.S. dollars, a PUR facility was set up with a production capacity of 50
million sachets of the water purifier annually. The P&G Hub plant is the single plant that
produces PUR globally. Today, the Hub plant is equipped with state-of-the-art manufacturing
technologies and quality assurance processes and systems, reflecting the company's values of
safe, hygienic and ethical manufacturing practices.
P&G Pakistan headquarters are consistently upgraded to the company's progressive values.
Investments of $1 million and a recent $600,000 investment have taken place in the work-space
environment to date. The P&G Pakistan head office today hosts high-speed digital networks and
advanced systems and facilities.
As a company with vast global experience, P&G always has believed in the potential Pakistan
has as a country. Since 1989, the total amount invested by P&G Pakistan in assets, working
capital and market development has exceeded Rs 6 billion. In addition, Procter & Gamble
contributed Rs 3.1 billion to the national exchequer in the form of taxes and duties during 2005
and 2006, increasing 13 percent over the previous year.
P&G has attracted outstanding individuals since the day it began operations in Pakistan. The
company employs more than 257 people and creates more than 4,000 jobs indirectly in Pakistan,
99 percent of which are held by Pakistanis. All this makes P&G a more locally focused
company.

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Procter & Gamble Pakistan

Vision Statement:

To create the most successful global brands in every category everywhere


we compete. And we have the strength to do it

Mission Statement:

To create, maintain and leverage a positive business environment to


build and protect the business and reputation of P&G and its brands

Corporate Responsibility:
P&G believes in working with and within local communities to respond to their social
needs and help them develop their strengths. P&G Pakistan has initiated and runs several
program

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Business Functions

Procter & Gamble Pakistan

Procter&Gamble

Communications

Consumer
&Market
Knwledge

Engineerin
g

Finance

HR

IT

Marketing

Suoly
Chain

Company Type:
Public Company.

Brands:
P&G offers a variety of brands. P&Gs existing products grow through innovation and
renovation while maintaining a balance in geographic activities and product lines.
The Company's priority is to bring the best and most relevant products to people, wherever they
are, whatever their needs, throughout their lives.

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Procter & Gamble Pakistan


P&Gs products are found in almost every product category. Following are the list of brands
served in Pakistan:
P&G has divided its products in segments as:
Beauty
Grooming
Health care
Fabric care and home care
Baby care and family care

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Procter & Gamble Pakistan

39%
61%

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Procter & Gamble Pakistan

SWOT Analysis of P&G


STRENGTHS

Strong financial position


Large scale of operations
Though connect +develop P&G
shares its Research & development
Diversified brand portfolio
Powerful collection of strong brands

WEAKNESSES

Customer concentration
Focus on high end of the market
Losing market share in online media
leadership
Beauty and health products are
mostly for woman

OPPORTUNITIES
THREATS
Increase penetration in urban areas
Increase in prices of raw materials
and tap rural markets
Uncertainty in the economic
Exponential growth of middle class
conditions
in emerging markets such as china
Cut throat competition in FMCG
and India
market
Health and beauty products for men
Unfavorable business laws and
Internet marketing
political instability
Acquisitions
Private labels growth is also a serious
threat
Due to recession, consumer spending
has decreased globally

P&G Strategic Focus:


Consumers will pay a premium price for products that offer improvements over either
private label products or the brands they have bought for many years.
Product innovation must be regular with constant visible improvements.
Product innovation must be designed to constantly upscale consumer preferences
Strategies of innovation and pricing can be used to break in developing economies

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Procter & Gamble Pakistan

Strategic Issues:
Competitive pressure is a constant and consistent challenge
Rising commodity cost
Global economic and political instability

What makes P&G different from others?


Brand loyalty
Distribution channel
Innovation
Pricing strategy
Promotional strategy

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Procter & Gamble Pakistan

Distribution Channel:

Manufacturers

Marketing agents

Retailers/wholesalers/distributor
(IBL)

Chemists shop/Retail outlets/big


markets etc

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Procter & Gamble Pakistan


Promotion Strategy:
P&G insist on a pull strategy.
Heavy advertising and media pioneer.
Advertising creativity.
Coupon

Pricing Strategies:
Different pricing strategies were adopted by P&G:
Optional feature strategy
Product line pricing
Cost plus pricing
Competitive pricing
Distribution pricing

Product Profile
Safeguard Soap

Safeguard is the no. 1 antibacterial soap worldwide; it is the only bar soap registered with the
FDA. Safeguard is designed to provide excellent germ protection for the whole family.
Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining "health &
hygiene" in Pakistan. It is an anti-bacterial soap that provides germ protection for twice as long

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Procter & Gamble Pakistan


as ordinary soaps making it the doctors' number 1 recommended choice throughout the world.
In addition to germ protection, it also caters to various other needs such as beauty care and
protection against sweat odor.

Market Share:
The market share of safeguard is the biggest in antiseptic soap category with 22% share.

Situational Analysis:
Soap is a major consumer able item and there is a huge demand and potential in this market
particularly the anti bacterial segment. The anti bacterial market segment has grown year on
year by more than 7 % percent due to increased consumer awareness and education on the
benefits of anti-bacterial soaps. As a result, the pie is growing bigger every year.
Some uncontrollable situational factors that are faced by the Proctor & Gamble and Safeguard
soap are as follows,
Demand: Although the demand for P&G products is very high but when we talk about the
demand of the Safeguard soap the demand is growing in the antibacterial category. The market
share of Safeguard soap is more than 15 % in Pakistan out of the Rs 21 billion soap market.
Competition: today; two brands are directly competing Safeguard (P & G); Dettol (Reckitt
Benckiser) and lifebuoy (Unilever)
Legal/political: these are the uncertainties that are extremely variable in the political
conditions of Pakistan. Constant political instability does affect the company in terms of building
new relations with new governments all the time.
Social and Cultural factors: the company has to be very careful in the implementation of its
promotional campaigns, since the social cultural environment of Pakistan is very conservative
and any suggestive advertisements usually face a lot of negative reactions on the part of the
consumer.

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Procter & Gamble Pakistan


Other factors: like the government regulations and technological advancements have had no
significant effect on the product and the company.
Product Type:
Consumer product
Safeguard soap is a fast moving consumer product.
Convenience good
It is an essential good vis--vis its target market, which is all households (primarily children)
who can afford buying soap and who want to fulfill an everyday need (primarily bathing) that
provides them and their family with a 100% anti-bacterial solution complete protection from
all germs/ bacteria and cleanliness from dirt / germs.
Product Attributes:
Safeguard soap has set new standards for defining "health & hygiene" in Pakistan
Brand Name:
Safeguard
Slogan:

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Brand Positioning:

Procter & Gamble Pakistan

Anti bacterial soap


Brand Image:
Health and hygiene
Brand Extension/ Product Mix:
The seven variants provide an ideal product mix in terms of consumer needs i.e.
(2 skus 115 grms and 70 grms):

Pure White: Pure White is the flagship offering of Safeguard signifying the core benefit
of superior germ protection.
Herbal: Clears and purifies your skin from germs.
Lemon: Makes you feel refreshed with its zesty smell.
Menthol: Keeps you fresh in hot weather.
Aloe Vera: Moisturizes your skin
Sandalwood: Provides natural care gently.

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Procter & Gamble Pakistan


Vitamin E: Cleans your skin and makes it smooth
Product line extension and uses
The product is used primarily for showering / bathing but is also used for hand washing. A
product line extension is Safeguard Hand wash which is also available under the Safeguard
Brand.
Product Life Cycle
Since this is a Fast Moving Consumer Product, the average product life cycle of this product (if
used every day) is 30 days and 2 years if not in use (if stored in a cool and dry location). The
brand is entering from growth to maturity.

SAFEGUARD- SWOT ANALYSIS


Strengths
The brands Germ-kill heritage (Triclosan) is seen as strong and adds on trustworthiness
Excellent for treating skin irritations, cuts/bruises and seasonal applications
Brand comes from a reputable (old) company
Loyal following of Original

Weaknesses
Dissolves quickly in water

Opportunities
Leverage the powerful brand equity associated with the Safeguard Brand to make
Safeguard Soap an everyday use proposition.
People are becoming more health conscious
Trusted brand for providing education about health and hygiene

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Procter & Gamble Pakistan


Threats
Competition from Dettol and lifebuoy
Economical uncertainty

Competition Analysis
Here is a brief description about the antiseptic soap producing companies.
Safeguard is the No. 1 antibacterial soap worldwide; it is the only bar soap registered with the
FDA. Safeguard is designed to provide excellent germ protection for the whole family.
The market share of safeguard is the biggest in antiseptic soap category with 22 % share.
Safeguard users have the perception that it is providing them with Continuous Germ Protection,
Gentle on skin, Smells Good, has a easy to grasp shape and the functional needs portrayed is of
an everyday soap with germ protection.
Safeguard is an anti-bacterial soap that provides superior longer lasting germ protection.
Safeguard helps protect your family from germs which are found everywhere even on apparently
clean surfaces.
Dettol soap is a brand of Reckitt Benckiser Pak Ltd and it has been operating in Pakistan since
1999 after taking over from Reckitt & Colman. Market share of Dettol soap in the soap market
is around 9% at the end of December 2008.
The Dettol soap users have the perception that it is effective in germ kill with the medicinal
smell of Dettol liquid which is used for Bruises & Cuts, Insect bites, washing of clothes,
Mopping of floors, Shaving, Bathing and Cleansing of skin and used mostly during summers. Its
functional core need is incidental antibacterial.
Lifebuoy is one of Unilever's oldest brands. Lifebuoy Royal Disinfectant Soap was launched in
1894 as an affordable new product in the UK, to support people in their mission for better
personal hygiene. Lifebuoy soap aims to provide affordable and accessible hygiene solutions that
enable people to lead a life free from hygiene related worries, everywhere, regardless of the
boundaries of nationality, religion and socio-economic status. Lifebuoy has a market share of

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Procter & Gamble Pakistan


15 %. Lifebuoy users see the soap as a decent quality, affordable germ protection agent
containing carbolic acid as its germ protection agent and its functional need portrays that it is an
everyday soap with germ protection for the middle and lower middle class

Target Strategy
Different antibacterial competitors are trying to own a higher ground by building on already
present germ-kill equity. Like Dettol has given its slogan of Dettol protects against a wide
range of unseen germs, including bacteria and viruses
While safeguard is focusing on Din Raat Lagataar hifazat which is more powerful in the
mind of the consumer.
Lifebuoy is following the germ busters strategy

Market Strategies
Market Needs (QUALITY CRAFTSMANSHIP, INNOVATIVE DESIGNS, CUSTOMER
SERVICE)
P&G is conscious of the changing consumer needs and trends and is constantly conducting
market research to assess opportunities and threats. Quality of the product is the number 1
priority as well as research on new variants. In addition, a new customer hotline has also been
added to get instant feedback on product use, problems and activities.

Market Trends
The soap market has been most affected by the recent sky rocketing price of palm oil which is
the primary ingredient of soap noodles. This has caused the average price of soap noodles to
increase by 20% - 25 % forcing producers (also P&G) to increase prices of their soap products
by almost as much so as not to put excessive pressure on their margins. This will undoubtedly
result in decrease in soap sales volumes (higher prices means less consumer off take) as well as
disruption in the market due to several quoted prices of the same product available resulting in

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Procter & Gamble Pakistan


dissonance in the wholesale and retail markets as well as confusion in consumer buying
decisions at the point of sale.

Market Growth
The overall soap market is growing by 15 % while the antibacterial segment is growing by 9%.
Hence, there is a lot of potential in the market for growth and additional brand penetration and
brand building.

Opportunity Analysis
Based on the competitive analysis, P&G found out that there are a lot of opportunities which will
help the Safeguard soap capitalize a greater market share. New Safeguard Soaps ability to gain
real consumer insights, to launch products and variants that consumers actually want, supported
by insightful advertising that talks to consumers in their own language, are all vital elements,
which will lead to success of Safeguard and the Safeguard soap as a brand.
Extensive Market Growth
Market Penetration and Market Expansion.
Achieving High Gross Margins
High Customer Services and Satisfaction
New Product Development and Entrepreneurship.

STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE


Differentiating Strategy:
They have developed a very clear image of safeguard soap in the minds of their target customers.
Health Education is a vital part
Schools program needed for success

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Procter & Gamble Pakistan


Children - powerful positive change agents in household

Positioning Strategy
Positioning Against Competitor
Safeguard is positioned as a premium brand which focuses on children. The children are the
focal point for Safeguard soap educating them about health and hygiene through the famous
commander safeguard series and many other promotional campaigns. Children are their ultimate
focus as compared to the Dettol soap and lifebuoy, the former focuses on mothers in the family
and later on children.
Positioning In Relation To Product Attribute:
The primary positioning via a via product attribute is that Safeguard Soap has the essence of
Triclosan Solution , the no. 1 antiseptic brand in the world trusted by families everywhere for
over a century which its competitors do not posses. Hence, it is considered a premium brand in
the anti-bacterial segment.
Positioning by price and quality
As Safeguard is a premium brand, it is priced at a premium to its competitors (Dettol and
Lifebuoy). Being premium means there will be no compromise in quality as the link between
price and quality exists and customer is always willing to pay more for perceived quality which
in the case of Safeguard soap, he/she does!

Distribution Strategy
Channel of Distribution for Consumer Product
There are 2 primary channels of distribution for Safeguard soap:

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Procter & Gamble Pakistan

Distributors and sub distributors:

The company sells the products to its appointed distributors and sub distributors (+300 all over
Pakistan) that are responsible for the distribution of pre-defined geographical areas who
distribute it further to wholesalers and/or retailers. The retail distribution is further classified into
TOP STORES (TSPs) which include all the high profile outlets like al-fatah, HKB, Akbari
stores etc and whole sale comprises of categories of diamond, gold and silver divided on the
based on their average purchase per month and from here the product reaches the point of sale
for the customer.

Direct Delivery
The company provides direct delivery to select large customers like institutional buyers of key
accounts which sell directly to the consumer (in case of USC and CSD) or to small retailers /
end-consumer (in case of MAKRO / METRO).

Instore Placement Strategy


Safeguard soap has also planned an in-store placement strategy to promote and market their
product so to have maximum visibility to the consumer; they have assigned dedicated shelves to
the product and are also promoting their product in metro and makro aswell. Their placement
strategy is mainly focused on
Place Safeguard Soap distinctively
Equal or more facing than its Competitors
Place between Lux & other Beauty soaps where Possible.
Build brand block wherever possible.

Pricing Strategy
P&G is using Competitive Pricing approach in order to capture its piece of cake.

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Procter & Gamble Pakistan

Competitive Pricing Description

Competitive Pricing is a defensive and competitor-related approach to pricing. It is a marketingoriented strategy whereby prices are set on the basis of the prices charged by competitors
Safeguard soap is priced at retail price of Rs. 38.00 (115 gms) and Rs. 26.00 (70 gms) which is at
a premium of Rs 3 and Rs. 2 to its competition (Dettol and Lifebuoy).

Discounts and allowances


P&G give a special trade offer on Safeguard Soap of 2% during the summer season so as to push
to product into retail and an additional discount of 4 % to wholesalers to maximize loading in the
channel and improved distribution when demand (consumer pull) is maximum.

Communication Strategy of Safeguard Soap


Position Safeguard soaps range as a preferred everyday use solution for the whole family

Communication Objectives
Announce new & improved Safeguard soap.
Protection against a wide range of unseen germs (including bacteria & viruses).
Better experience (lather / perfume / feel-on-skin).
Show all 7 variants of new Safeguard soap.

Agency Selection
Almost 135 Advertising agencies exist in market but P&G has selected AL Saatchi & Saatchi
Advertising Company because of their outstanding work in Pakistani market.

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Budget

Procter & Gamble Pakistan

Safeguard soap is a Rs 2 billion brand annually and so the marketing budget allocated to it
approx 25 % of total Net revenue, much resources have been allocated to Safeguard soap
marketing efforts, one top example is commander safeguard series.

Marketing Communication Methodologies


Advertising
Television is still the primary medium for advertising for Safeguard soap, and print also forms a
crucial part of the communications strategy. But increasingly campaigns are integrated across all
these communication channels. All advertisements of Safeguard soap are a blend of hard sell and
soft sell advertising, as all the Safeguard soap advertisements first show the ingredient it contains
and then portray the emotional benefit for the user which revolves around the theme of a mother
and children in which the children is the one who influence the use of Safeguard soap. Dr Shaista
represents the brand ambassador of Safeguard Soap
When it comes to advertising, SAFEGUARD prefers TV because of their philosophy that;
HEALTH AND HYGIENE ALWAYS COMES FIRST. Thus TV is the best media, as you
can show how Safeguard soap keeps you hygienically clean and protected and gives you daylong
protection from body odour. Apart from this, in Pakistan, TV is a strong medium, it has highest
reach. Thus a large part of advertising budget is focused on TV.
Safeguard soap spends around 60 % of the TV advertising budget on all channels with high
rating points like PTV, PTV WORLD, GEO, ARY, INDUS VISION etc.
Safeguard soap advertises highly in summer season i.e. mid of the year, as people prefer frequent
washes in such seasons to keep hygienically clean and long lasting protection against body
odour.
While discussing Safeguards advertising strategies we must keep in mind the commander
safeguard series which are very intriguing for the children.

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Commander Safeguard

Procter & Gamble Pakistan

Commander Safeguard, the first animated superhero of Pakistan and the mascot of P&Gs brand
Safeguard. Developed by Post Amazers, the largest animation house in Pakistan and the first
with a truly global clientele, the hit series started a semi-revolution amongst Pakistani kids who
just could not get enough of it.

Story Characters

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Procter & Gamble Pakistan

Apart from Commander Safeguard series P&G has also done some social welfare programs
which can also be considered to be as a part of its Promotional Campaign.
Sehat-o-Safai Program
The Sehat-o-Safai Program, supported by Safeguard, has educated
2.2 million school children, ages 5 to 11 and from all socioeconomic
classes, in 8,000 schools, about better hygiene practices, especially
regular hand washing.

Safeguard Mother Education Program

The Safeguard Mother Education Program conveys the basic


message of health and hygiene one-on-one to mothers. This year, the
program has educated about 600,000 mothers across the eight largest
cities in Pakistan.

P&G's Safeguard team leads Global Handwashing Day in Pakistan


Safeguard Pakistan School Education
Program Empowering Children with Hygiene Education:

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Conclusions:

Procter & Gamble Pakistan

We have carefully analyzed all the market strategies adopted by P&G Pakistan to boost the sales
of Safeguard soap. Although it is the No 1 antibacterial soap in the country and has captured the
market share of 22% but still we find some flaws in the product for which we are giving the
following suggestions:
P&G, Pakistan realizes the huge potential of the rural markets, i.e. 64% of the total
population, but has not yet developed a successful strategy to penetrate this market.
They can get success by two key strategies; firstly, by developing a strong
distribution infrastructure and secondly, by adapting the packaging and pricing to this
market.
They should set the price of their product in accordance with their competitors price.
Designing commander safeguard shaped soap to make it more intriguing for the
children.
They should change the chemical composition of the soap because it dissolves in
water so rapidly due to the salts present in its.
They can add more flavors of aroma in their product.
The Advertisements should target the entire family instead of focusing children only.
They should add information on the bars about its flavor to help the people for
purchase decision.
Commander safeguard series adds value in the product from selling point of view. 7
episodes have been launched till date. . They can continue launching more episodes
of the series to attract the children as they are their prime focus.

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