Procter & Gamble

Pakistan

Prepared By:
Sahab Faraz
Fanoos Khushbukht Sharif (53327)
Fahad Qadeer
Ahmed Ali

INTRODUCTION
The consumer market especially
FMCG is one of the fastest growing
industry in Pakistan
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).

P&G Overview

In 1994 we acquired a soap-manufacturing facility

sprawling seven acres of land at Hub, Baluchistan
Since 1989, the total amount invested by P&G Pakistan
in assets, working capital and market development has
exceeded Rs 6 billion
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

P&G Overview

Procter & Gamble Pakistan, headquartered in Karachi,

commenced operations in Pakistan in 1991

P&G Today
P&G operates in Pakistan since 14 years with office
in Hyper Star, Karachi. They are usually involved
in retail development activities in Karachi. P&G
have 3 types of customer groups.
Retail stores
Layer 2 (super stores)
Layer 3 (high traffic super malls/ super markets)
like hyper star

P&G Mission

To create,
maintain and
leverage a positive
business
environment to
build and protect
the business
and reputation of
P&G and its
brands

P&G Vision

To create the most

successful
global brands in
every category
everywhere we
compete. And we
have the strength to
do it

Industry Analysis

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

P&G Business Segments

P&G Product segments

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

Sales & Geographic Region

SWOT Analysis

SWOT Analysis
STRENGTHS

WEAKNESSES

Strong financial position

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

OPPORTUNITIES
Increase penetration in urban areas
and tap rural markets
Exponential growth of middle class
in emerging markets such as china
and India
Health and beauty products for men
Internet marketing
Acquisitions

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

THREATS
Increase in prices of raw
materials
Uncertainty in the economic
conditions
Cut throat competition in FMCG
market
Unfavorable business laws and
political instability
Private labels growth is also a
serious threat

 SUPPLY CHAIN
FLOWCHART

Build Internal Capability

What makes P&G unique?

Brand loyalty
Distribution channel
Innovation
Pricing strategy
Promotional strategy

Promotion Strategy
Pricing Strategy
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

ISSUES &
STRATEGIES

Strategies & Issues

ISSUES:
Current business of manufacturing in USA:
Fluctuating dollar value
Only safeguard & sunsilk
manufactured
in Pakistan
Demand
Journey
Lack in local Production
Current portfolio of 10 to 12 products in Pakistan

Low budgets & no credits:

Overall discount of 5% on total sales
Credits not given for a single day
Gifting materials very less

 P&G strategies are more effective and efficient as they have

totally outsourced the whole sales process to their distributor
name ATCO (abu daud )
P&G aims to put their products on the top of the shelf and also at
the counter to generate results with impulsive buying behavior
P&G also targets customer with premium products with
geographical segmentation(Head & shoulders)
In Pakistan they are focused on sales only that's why P&G
marketing strategies are very limited and very focused
From this year 2013- 2014, P&G has also started branding
activities especially under the bridges to create brand recall
customer preferences

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

RECOMMENDATIONS
As strategic management students we
recommend the following strategy review to
the company:
The area of Customer relationship
management system (CRM) with retailers
should improve.
Customer loyalty must enhance.
To penetrate more in market P&G should
recruit its own sales team.
Pricing strategy should be revised as per
discounting.
The area of Consumer Market Knowledge
(CMK) needs more improvement for P&G.

PG's Efficiency versus its Competition:

RATIO ANALYSIS
COMPANY NAME

PROCTER & GAMBLE COMPANY

TICKER

RATIO

RATIO

RATIO

RATIO

QUICK

WORK. CAP.

DEBT / EQUITY

ASSET TURNOVER

PG

0.31

0.9

0.51

0.59

JOHNSON & JOHNSON

JNJ

1.27

2.41

0.22

0.56

PFIZER INC.

PFE

1.43

2.46

0.48

0.39

Merck & Co., Inc.

MRK

0.91

1.94

0.53

0.42

ELI LILLY AND COMPANY

LLY

0.69

1.71

0.29

0.77

ECOLAB INC.

ECL

0.08

1.3

0.99

0.71

KIMBERLY-CLARK CORPORATION

KMB

0.21

1.11

1.47

1.12

COLGATE-PALMOLIVE COMPANY

CL

0.3

1.18

2.96

1.24

SEALED AIR CORPORATION

SEE

0.24

1.31

3.31

0.9

Estee Lauder Companies Inc.

EL

0.77

2.35

0.36

1.42

Avon products Inc.

AVP

0.41

1.47

2.71

1.48

NEWELL RUBBERMAID INC.

NWL

0.11

1.42

0.9

0.94

Clorox, Co.

CLX

0.22

0.93

18.07

1.3

IFF

0.66

3.21

0.62

0.9

0.76

1.71

0.5

0.59

INTERNATIONAL FLAVORS &

FRAGRANCES
AVERAGE