Procter n gamble by noman khan

INTRODUCTION OF THE COMPANY:
Procter and gamble of Pakistan is a subsidiary of Procter and Gamble USA
established in 1990 and started production in 1991.The P&G Company were
founded in 1837 in Cincinnati, Ohio and from the very beginning have been a
leading manufacturer and marketer of the consumer goods. Company sells
more than 250 brands in more than 130 countries and its operations are in
more than 70 countries. It is therefore also rated in the top 25 of the
FORTUNE 500 companies.
Procter and Gamble is actually the name of two persons William Procter and
James Gamble. Both of them wives were sisters and their father in-law asked
them to become partners. In the start Procter’s business was candle making
and Gamble’s business was soap making. The Partnership year 1837 was a
difficult time to start the business although Cincinnati was a bustling market
place; the nation was gripped by financial panic. Hundreds of banks were
closing around the country. In the 1850s, despite rumors of an impending civil
war in the US, they built a new plant to sustain their growing business.
Later they pioneered one of the nation’s profit sharing programs and were
among the first in American industry to invest in the research laboratory. By
1890, the fledgling partnership between the Procter and Gamble had grown
into multimillion dollar corporation .Television in USA introduced in 1939 and
P&G is the only company that commercialize its product just after five months
.With the passage of time P&G acquire different other companies to enhance
the business. In 1980, as it approached its 150th anniversary, P&G was poised
for a most dramatic period of growth in its history. Company serves
106000emloyees all over the world. P&G is a recognized leader in the
development, manufacturing and marketing of superior fabric & home care,
baby care, feminine care, tissues & towel, beauty care, health care, and food.

MANAGEMENT STRUCTURE:
CEO:

Country Manager Pakistan:

Mr. Edwin L Arts

Mr. Faisal Sabzwari

PROCTER AND GAMBLE IN PAKISTAN:
P&G started its operations in Pakistan in 1991. First it introduces its brand
of Head& Shoulder After that it gave brand of Vicks and Olay oil.
Now company has eleven brands in Pakistan .The yearly sales consistently
doubled during the past three years. P&G Pakistan establish local
manufacturing base.
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BRANDS IN PAKISTAN:
Head & Shoulder
Pentene
Wella
Safeguard
Pampers
Always
Ariel

TOTAL SALES OF P&G IN PAKISTAN
In 1991 =1.1Billion Rs
In 2001= 12 Billion Rs
Employees:
There are 300 employees with 12 managers serving on 150,000 stores in
Pakistan. And all over the world the no of employees is 106,000.

SAFEGAURD & P&G
P&G is the world’s renowned manufacturer of different kinds of detergents.
The company first introduced tide detergent in 1947 after years of research to
determine how to make a cleanser work well in hard water. Since that time,
they have introduced variety of laundry and cleaning products with respect to
demand and environment of different countries. After a thorough research,
the Company introduced/launched its Safeguard brand in Pakistan in 1995.
Safeguard is differentiated from other products. Safeguard has captured the
remarkable market share in soap industry since it has been launched.
Safeguard has also got share from soap market by shifting the beauty s users to
the safeguard users.
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SIZE AND PRICE
Safeguard is available in two sized in the market i.e.
*
75 grams
(Price Rs. 14)
*
125 grams
(Price Rs. 21)

VISION of P&G
“To be a leading consumer goods company and to improve the lives of world
consumers by providing valuable and innovative products”.
Ten years ago Procter and gamble started the journey to improve the lives of
Pakistani consumers by providing them with world famous quality brands. P&G
want to be an outstanding organization with a passion for winning that would
felt by everyone everyday; in the office, in the field every where P&G vision is
to lead business growth by proactively identifying opportunities and positively
contributing to volume growth.

MISSION STATEMENT
We will provide products and services of superior quality and value that
improve the lives of the world's consumers.
As a result, consumers will reward us with leadership sales, profit and value
creation, allowing our people, our shareholders, and the communities in
which we live and work to prosper.
These are the Principles and supporting behaviors, which flow from their
Purpose and Values.
They show respect for all individuals
The interests of the company and the individual are inseparable.
They are strategically focused in their work.
Innovation is the cornerstone of their success.
They are externally focused
They value personal mastery
They seek to be the best.
Mutual interdependency is a way of life

GOALS
Think globally act locally
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Build major global brands through strong programs based on local
understanding.
Improve the environmental quality of its products, packaging and
operations around the world.
Produce quality products at very competitive costs.
Build superior relationships with all the parties who contribute to
fulfilling their corporate purpose, including their customers, suppliers,
universities and government.

OBJECTIVES
Bring together transactional activities such as accounting and order
management in a single organization to provide services to all p&g units
at best in class.
Remains on the cutting edge of the industry.
To be a thought leader within each corporate function.
To be the first consumer goods company in Pakistan.
Be competitive with other high quality companies in order to help,
attract, motivate and retain the talent needed to lead and grow P&G’s
business.
Strive to be best in all areas of strategic importance to the company.

ANALYSIS OF VALUES & PRINCIPLES
Organization’s culture is a pattern of basic assumption invented, developed by
a given group as it learn to cope with its problem of external adoption and
internal integration. Values, principles, policies, and structure of the
organization are the main miles stones to analyze the company’s strength.

CORE VALUES
P&G is its people and the Core Values by which they live.
P&G PEOPLE:
They attract and recruit the finest people in the world. They build their
organization from within, promoting and rewarding people without regard to
any difference unrelated to performance. They act on the conviction that the
men and women of Procter & Gamble will always be their most important
asset.
LEADERSHIP:
They are all leaders in their area of responsibility with a deep commitment to
deliver leadership results. They have a clear vision of where they are going.
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They focus their resources to achieve leadership objectives and strategies.
They develop the capability to deliver their strategies and eliminate
organizational barriers.
OWNERSHIP:
They accept personal accountability to meet the business needs, improve
their systems and help others improve their effectiveness. They all act like
owners, treating the Company’s assets, as they’re own and behaving with the
Company’s long-term success in mind.
INTEGRITY:
They always try to do the right thing. They are honest and straightforward
with each other. They operate within the letter and spirit of the law. They
uphold the values and principles of P&G in every action and decision. They are
data based and intellectually honest in advocating proposals, including
recognizing risks.
PASSION FOR WINNING:
they are determined to be the best at doing what matters most. They have a
healthy dissatisfaction with the status quo. They have a compelling desire to
improve and to win in the marketplace.
TRUST:
they respect their P&G colleagues, customers, and consumers and treat them,
as they want to be treated. They have confidence in each other’s capabilities
and intentions. They believe that people work best when there is a foundation
of trust.

PRINCIPLES
These are the principles and supporting behaviors, which flow from their
Purpose and Core Values.
They show respect for all individuals.
The interests of the Company and the individual are inseparable:
They are strategically focused in their work:
Innovation is the cornerstone of their success
They are externally focused:
They value personal mastery:
They seek to be the best:
Mutual interdependency is a way of life:

ENVIRONMENTAL ANALYSIS
NATURE OF THE ENVIRONMENT
P&G Safeguard is operating in a complex and stable environment, complex
because there is a number of factors in its environment, about which less
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information, stable, because the changes in these factors is predictable factors,
which makes its environment complex are:

RETAILERS
A group having strong influence over the opinion of the consumers regarding
which soap should be purchased. This group is becoming more and more
concern to their own incentives/margin.

LOCAL PRODUCERSS
Small soap manufacturing units, having no or very low overhead charges,
under fix tax system or hidden units evading tax and growing like mushroom,
involve in the low price soap war, exploiting consumers through retailers.

REFERENCE GROUP
People having social influence on their neighbors also affect on the sale of
soap.

TECHNOLOGY
MODERATE CHANGES IN THE TECHNOLOGY OF SOAP MANUFACTURING DECREASE THE PLC OF
SOAP.

URBANIZATION
Increase in rate of urbanization especially in Pakistan has made the
environment more complex of soap industry.

PEST ANALYSIS
POLITICAL AND LEGAL FORCES
Rapid changes in the political scenario of the country along with the uncertain
policies of the Government have made the whole business community as
uncertain. Also there is terrorism prevailing in the important cities of the
country like Karachi and Afghan War, which are affecting the business
activities. Policies about taxes are changing continuously due to changing
government.

ECONOMIC FORCES
Increasing inflation in the country, persistently reducing the
purchasing power of the people and dropping people from high price
soap to low price soap and providing more fuel for expansion of local
Producers.
Increased import duties on the finished goods and raw material have
increased the price of the product, along with this, increasing
inflation in the country have made it difficult for soap industry to
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transfer the whole increased cost at the consumer, thus forcing the
industry to operate at a very low margin.
Sanctions imposed by the developed nations on Pakistan due to
nuclear experimentation create the uncertainty in business activities.

SOCIAL
The greater the tendency towards urbanization in Pakistan, the living
standard which is forcing the people to use standardized product and
people are diverting from the beauty soap to anti bacterial soap.

TECHNOLOGICAL
No major and rapid breakthrough in the technology of soap and their
manufacturing process, but innovations is required so that the
product does not become obsolete.

SWOT ANALYSIS
STRENGTHS
Heavy and impressive promotional plan for safeguard.
Strong social & corporate image of P&G
Strong financial position of company.
More concern towards total quality management
Highly health caring product, safeguard gives protections against germs.
Direct contact with customers.
P&G’s good relations with the supplier.
Strong emphasis on environmental prosperity.
Worldwide research and technology, engineering and manufacturing.
Well-established and renowned distributors.
Highly enthusiastic sales team of the company.
They identified directly influence group such as wives and children in
their target market.
Fifth-lowest Injury/Illness Rate for employees.
Fourth-lowest lost Workday Rate for employees.
Fifth-lowest property loss.

WEAKNESSES
Safeguard is available in limited pack sizes; only two sizes are available.
One is 125 gm and other is 75 gm.
Unwilling to serve low-income market. Price is especially very high
towards lower income groups.
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Due to limited manufacturing facility, they cannot reduce production
cost of the safeguard. But now expansion is being made in hub plant to
increase production of safeguard. One Plant start production since 10th
of April.

OPPORTUNITIES
According to the information obtained by Chamber of Commerce and
Industry Lahore, the soap market is growing at an annual rate of 9.8%.
The main reasons for this growth are:
 Rapid growth in population,
 High urbanization
 Increase in awareness among people about new advancements.
Due to this growing market, there are lots of opportunities for P&G to
exploit this growing market by introducing new soaps.
P&G has a good corporate image among consumers. Therefore, they can
get maximum share from the soap industry by introducing multiple
brands of soaps because they have already different soaps in their
international health and beauty care product line.
Due to rising awareness among people, switching trend toward health
care soaps is high. Therefore, it is a good opportunity to capture this
segment through efficient marketing practices.

THREATS
Increasing market share of local Producers. The local Producers are
playing an important role in soap industry, because they are providing
low price soaps and try to penetrate in their local market by replacing
the branded products.
Threat of new entrants is also present. As Lever Brothers is a potential
threat in soap industry, because they are already involved in different
related businesses and providing raw material for soap production to
different manufacturing companies like Colgate Palmolive, etc.
Increasing inflation in the country is also a major threat of P&G because
it is reducing the purchasing power of consumers.

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STRUCTURAL ANALYSIS
PORTER MODEL
Structural analysis helps to analyze the competitive process as well as the
sources of competitive pressure. In the structure analysis, certain questions
like what are the strengths of these pressures, what type of competition is
prevailing and what future competitive conditions will be included. Generally,
there are five forces which affect the competitive position in an industry and
these forces are as follows:1)
Competitive rivalry
2)
Buyer’s power
3)
Supplier’s power
4)
Threat of new entrants
5)
Substitute products

COMPETITIVE RIVALRY
Competition is concerned with the degree of rivalry within the industry.
Danger of rivalry is greater when the competitors are of equal size. In the soap
industry, the competitors are;
Lever Brothers Pakistan Limited
Colgate-Palmolive Ltd.,
Reckit Benckiser
So competition is very tight. Rivalry is greater between these three firms due
to their equal sizes. Soap industry shows growth rate, which is 9.8% per
annum. It seems that it offered very lucrative business opportunities but these
opportunities also carry threats with them. Because to capture the high market
share, an organized distribution channel is required for this industry which
carry heavy cost.

THREAT OF NEW ENTRANTS
It is generally said that the industry where the threat of new entrants is low,
the industry is considered to be secure and attractive. In the case of soap
industry, the barriers to new entrants are large initial capital requirements and
product differentiation as well.
Also the available soaps have a strong image among consumers and it is very
difficult for new comers to break that image. Due to these reasons, the threat
of new entrants is low but not zero. Because, there are chances that ICI may
enter into the soap industry. Anyhow, it is very difficult for new comers to
enter into the soap industry.

THREAT OF SUBSTITUTES
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Substitute means a product which can perform the same functions as the
original product can perform. Substitute of the anti bacterial soap is beauty
soap. Since the quality of these substitutes is not comparable. So there is low
threat of substitute to the soap. But due to rise in inflation in the country,
threat of the substitute of high price soap like Safeguard is gradually
increasing.

BUYER’S POWER
When there are a few number of buyers those purchase the large portion of a
company’s sale, then in this case, they have maximum power. But in the case
of soap industry, the buyers are the distributors, to whom bulk amount of
products is sold and this sale is maximally on the cash basis. So the buyers have
no handsome power to interrupt or interfere in the Soap industry.

SUPPLIER’S POWER
Supplier’s power is less because they are having support from their parent
company for raw material and technological assistance.

COMPETITOR’S ANALYSIS
Competitors of Safeguard can be categorized into two segments:1. Competitors in organized sector
2. Competition with local Producers

COMPETITORS IN ORGANIZED SECTOR
ONE OTHER MAJOR COMPETITOR IS DOING EXCELLENT BUSINESS IN SOAP INDUSTRY ALONG WITH
SAFEGUARD THAT IS DIRECT COMPETITORS OF SAFEGUARD.

LEVER BROTHERS LIMITED
Lever Brother Limited is the oldest company in Pakistan. It is operating in
Pakistan since its independence. They introduced soap with the name Lifebuoy
Gold 1997, which became the lot selling soap.
Their target market is upper class, middle class and lower class. They have
produced products for each class with respect to different prices. For example,
lifebuoy with 95gms is a lower price product for lower income people, while
lifebuoy 140gms is high price quality product for upper class.
Lever Brothers Limited emphasizes on the direct approach to the consumer
and they have well-established sales force, and distribution channel. Mostly
they are following Pull Strategy. They company offers 6% profit margin to
retailers on retail price. No bonus is given to retailers. Also no discount is
available on bulk purchases. There is no scheme for retailers of any kind.
Distributor’s full force reaches almost every retailer irrespective of the size and
delivers the product to him or her. Distributors also distribute the products to
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villages also after taking into consideration the budget as well as the business
level of that village. There is a campaign started by company in order to cover
the rural population, as most of the population lives in the villages. For this
purpose, they have made rural cluster zones. They have heavily advertised
their products on mass media. They display their product brochures at every
retailer. The company has strong financial background and has much excess
budget for launching a new product, because their market share is maximum
in soap industry and they are carrying marvelous profits.

COMPETITORS IN LOCAL MARKETS
As local Producers of the soap industry, there is large number of producers and
each producer has a minor share in total share of the local Producers. So, it’s
difficult to isolate the major firms of this segment. Therefore, instead of this,
we can see the overall characteristics of this segment.
They are successful in exploiting domestic customers on behalf of price
sensitiveness.
Low overhead expenditures due to unorganized production operation.
These are the firms under the protective tax policy of the government
and even most of them are not paying tax.
Local based brands activate more sales.
By using promotional tools, which cannot be used by the firms in
organized sector, they are offering small monetary incentive to the
retailers, etc.

INTERNAL RESOURCES AUDIT
MARKETING RESOURCES
Marketing resources are very critical for every organization because it leads to
the performance of a company. An organization with worthwhile marketing
resources can fetch high sales and profit. Marketing resources include
following ingredient: Breadth and depth of product line
Market share
Marketing information system
Distribution channel
Market coverage
Company image
P&G is doing concentrating efforts on the best quality growth opportunity in
the whole soap market.

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BREATH AND DEPTH OF PRODUCT LINE
P&G has launched one soap in the market of Pakistan in 1997, named
safeguard. It is available only in two weight sizes.
*
75 grams
Rs. 14/*
125 grams
Rs. 21/Therefore, they have different product depths are available providing by P&G
as compared to their competitors in case of soap. In the depth they have:Safeguard pink
Safeguard green
Safeguard white
Safeguard Beige

MARKETING INFORMATION SYSTEM
Success of marketing plan depends upon the marketing information system of
the organization. In this way MIS servers as a critical resource of any
organization. P&G has developed a marketing information system. with the
help of this system, P&G gets market information, which leads to better
marketing planning. Moreover, sales force of P&G is served as source of
information about the market in different segments because its sales force has
direct contact with the customers.

COMPANY IMAGE
P&G is a multinational company and is using its corporate image as a
marketing resource. So this is beneficial for the safeguard in each segment.
At present, P&G is famous for its quality product, but it has implemented
different strategies to improve its image in future. Because just providing
quality products are not enough. They have to show concern for their
 Society
 Customers
 Employees
P&G has adopted all its ways to achieve this aim, which will lead to a better
corporate image of the company in future. If they got a chance to see the
advertisement of P&G’s safeguard customer satisfaction and environmental
safety are emphasized.
For environmental safety, they have the motto of cleanliness and protection
from the germs.
As explained above that company image can be used as marketing resource.
Due to the image, people are attracted to P&G. That’s why market helps the
sales force to persuade the customers. In this way, P&G is using corporate
image as a marketing resource.
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MARKET COVERAGE
As far as safeguard is concerned, P&G is emphasizing only on urban areas,
while rural areas are neglected, because their target market is middle and
upper class and this class is mostly located in urban areas. Therefore, due to
their product features, their market coverage is better.

FINANCIAL RESOURCES

The safeguard business accounts contribute nearly 6.3% of the company’s
profit. The impressive growth recorded by the soap industry enabled it to
make this contribution. This is due to increase in sales of safeguard in 1999.

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SALES VOLUME (Rs. in 000)
Year
1999
2000
Sales
276,558
308,915
A financial analysis for the last three years is:
Year
1999
6.2%

2000
6.7%

2001
5.9%

Asset Turnover
Return on Assets
Increase in Sales
Increase in Assets

8 times
34.4%
50%
125%

6.6. times
32%
112%
128%

Operating Profit Margin

8.3 times
35%
60%
120%

2001
358,525

Along with this internal resource generation, corporate name is at its back as
sound credit worthiness for any borrowed fund.

PROBLEM STATEMENT
P & G is facing the problems in the following areas:
 There is gradual increase in the substitution of Safeguard due to its
higher price. There is also great competition in the local Producers
due to low price soap and also great competition in the organized
sector due to equal size of the competitive organizations.
 As far as safeguard is concerned, P&G is emphasizing only on urban
areas, while rural areas are neglected.
 P & G is Unwilling to serve low-income market. Other competitors in
the soap industry are serving in each class with respect to different
prices & their target market is upper class, middle class and lower
class, each class with respect to different prices. Safeguard’s Price is
especially very high towards lower income groups.
 P&G itself has no distribution channel for safeguard rather they are
distributing the safeguard through International Brands Limited (IBL).
This is also the reason for the high price.

EXISTING STRATEGIES OF P&G for SAFEGUARD
P&G is following different strategies in different marketing practices for
safeguard.

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MARKETING STRATEGIES
PROMOTIONAL STRATEGIES
P&G gives high emphasis on direct approach to customers. Its sales teams
visits schools after schools along with the medical practitioners and
demonstrate experiments of hand and face washing in comparison with other
soaps. They involve children and house wises in their campaign and then asks
them to give comments. This way they create awareness and demand for the
safeguard.
They try to satisfy the customer at the spot and then sell a small size of 75 gm
pack for trial basis. They also advertise these practices on television, often
sponsors famous plays on dramas on TV. P&G gives high media coverage to
Safeguard. Regarding the commercials on TV, they follow the policy that their
commercials will not be executed right before and after the commercial of
competitors.

DISTRIBUTION STRATEGIES
As described earlier that P&G is distributing safeguard through International
Brands Ltd., distribution network which is a renowned distribution company.
In each IBL office, there is an Area Sales manager of P&G who is responsible to
watch the activities of IBL regarding distribution of Safeguard and make direct
contact with customers to obtain the complaints.

PRICING STRATEGIES
P&G always emphasizes safeguard as quality product and they try to
differentiate it as compared to competitors. But they have set the price of 125
gm of Safeguard Rs. 21 which is equal to the major competitor product Detol
soap having price of Rs. 21 for 125 gm pack. Therefore, we can say they are
somewhat following competitive price strategy.

PRODUCT STRATEGIES
Safeguard is quality product as described earlier and P&G do not compromise
on quality. Therefore, in product strategy, they are following differentiation
strategy.
There are the marketing strategies of safeguard but there are a group of
strategies, which determine the strategies of company regarding a product.

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BOSTON CONSULTANT GROUP MATRIX
MARKET SHARE
High
High 100
STAR

Market
Growth
10

Low
Safeguard
QUESTION
MARK

CASH COW
DOG

1

0.1

Market share
The BCG Matrix tells about the position of the products either as star, cash
cow, question mark or dog. The two dimensions of this matrix are the relative
market share and on y –axis industry growth rate.
The market share of safeguard (P&G) in soap industry is lower than their
competitors because of price sensitivity and its market share is increasing.
Second, the market growth rate of soap business is faster than general
economy, which is 9.8% per annum. This is due to increasing population and
urbanization in the country.
The above analysis shows that safeguard is a question mark in soap industry. It
is recommended for question mark to follow growth-oriented strategies and
more investment. P&G have resources to move it towards star. For growth
strategy, company should seek out new opportunities. So they are now
spending $ 3 million to expand the Hub plant where safeguard is
manufactured. From the 10th of April another production unit has started
production for safe guard to meet the expanding marketing needs.

GENERAL ELECTRIC COMPANY MATRIX
General Electric Company (GEC) Matrix uses the dimensions of industry
attractiveness and business strengths to identify the current position of the
company and suggests which type of strategy should be used.
To measure each dimension, certain factors are selected. In soap industry,
following factors are applicable:
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BUSINESS STRENGTHS
Factors

Weight

Company’s relative market share
Price competitiveness
Financial strength
Knowledge of customers and market
Technological Advancement
Total

25
15
30
15
15
100

Rating
1=High
.5=Me
dium
0=Low
.50
.60
.90
.60
.70

Score

12.5
9
27
9
10.5
70

SPACE MATRIX
Strategic Position and Action Evaluation Matrix is useful for determining the
current strategic position of the organization with reference to its environment
and helps deciding the strategy profiles for the company. In the context of
P&G, the factors considered and intensity of their influence is given below: FINANCIAL STRENGTH
Rating
Factors
0=Low
+6=High
Availability of capital
+5
Liquidity
+4.5
Working capital
+4
Risk involved in business
+5
Return on assets
+5
Total
23.5
Average
+4.7=5
COMPETITIVE ADVANTAGE
Rating
Factors
6=Low
0=High
Market share
-4
Product quality
-1
Customer loyalty
-3
Control over distributors and -2
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suppliers
Promotional activities
Product price
Technical know-how
TOTAL
Average

-1
-3
-1
-15
-2.14=-2

ENVIRONMENTAL STABILITY
Factors
Technological changes
Rate of inflation
Barriers to entry into market
Competitive pressure
Demand variability
Price elasticity of demand
Total
Average

Rating
6=Low
0=High
-3
-2
-3
-1
-5
-3
-17
-2.83=-3

INDUSTRY STRENGTH
Factors
Growth potential
Profit potential
Financial stability
Technological know how
Resources utilization
Ease of entry into market
Total
Average

Rating
0=Low
+6=High
+5
+3.5
+4
+5
+2.5
+4
+24
+4

SCORE ON X=AXIS
Competitive Advantage =
Industrial Strength
=
Total Score on x-axis
=
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-2
+4
-2(+(+4)=+2

-

SCORE ON Y-AXIS
Financial Strength
=
Environmental Stability =
Total Score on y-axis
=
Coordinates (+2_+2)

+5
-3
-3 +(+5) = +2

FS

II

CA

6
5
4
3
2
1

-7 –6 –5 –4 –3 –2 –1
-2
-3
III
-4
-5
-6

Aggressive
I
(+2, +2)

IS
1 2 3 4 5 6 7

IV

ES
The direction vector points towards the aggressive quadrant. Therefore, the
suitable strategies for P&G safeguard are:Market penetration
Market development
Product development

MARKET PENETRATION
Market penetration means to exploit the available consumer efficiently to
achieve high market share. This is probably done for a product, which is at the
growth stage. Market penetration can be done through heavy advertisement
and by providing products of different sizes and types for different consumers.
For this purpose, highly extensive distribution channel should be used.

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MARKET DEVELOPMENT
In market development strategy, organization should find the new uses of
product, new segments and entering into new geographic areas. Still safeguard
is being used for germs protection purpose, focusing on urban areas and more
emphasis on middle and upper class. Therefore, they should identify the new
such as for crockery purpose and explore the new and potential customers.

PRODUCT DEVELOPMENT
For product development, development of internal resources is emphasized.
Therefore, P&G should acquire one more product or manufacturing plant for
the production of safeguard to capture the wide market.
For safeguard P&G is intensifying the efforts to increase the market share in
growing industry because soap industry is growing with an annual rate of 9.8%.
Therefore, we can say they are following consolidation strategy for safeguard,
because they are intensifying their efforts on advertisement and promotional
activities.

PROPOSED STRATEGIES
The practice of incomplete market coverage should not be followed because
you cannot hijack other company’s customers and new customers as well. All
these problems require following strategies:

MARKET DEVELOPMENT STRATEGY
P&G is emphasizing on urban areas while it has neglected the suburban areas,
which is also a big market for soaps like safeguard. For this purpose, they
should efficiently utilize their Marketing Information System to collect
information about the demand and attitudes of the people in these areas. By
using this strategy, safeguard can fetch the customers of competitors and will
be successful in building new customers.

PRODUCT DEVELOPMENT STRATEGY
It describes to develop new products or modify the existing products with
respect to size, color, packaging, etc.
Safeguard is a well-perceived product among the customers, and at this
moment, it is available in two sizes; 75gm and 125gm, which cannot satisfy
The demand of every segment. While the products of the competitors are
available in multiple sizes which provide abundant choices for purchases to
customers for example Lifebuoy Gold has 140gm and 95gm and Medicame has
80gm soap available in the market This provide an opportunity to the customer
to have multiple choices. It can be a threat for the market share of safeguard.
On the other hand, in case of safeguard the choice to customer is very limited.
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B. S. Commerce VI

This is what they have analyzed through market survey. Therefore, it is
necessary that safeguard should be available in maximum possible sizes to
meet the selection criteria of the customer.
As far as launching of new product is concerned, it is not necessary for P&G at
this moment, but in future, they will require taking this step as well because
they have some other soap like ivory, and zest which are very famous in
international market.

MARKET PENETRATION STRATEGY
It describes that a company tries to sell more of its product by introducing new
supplementary uses. Safeguard is that product, which contains such chemicals
useful for beauty care as well. This characteristic, we have analyzed through its
product formula. Therefore, it is more useful to supplement this idea with
existing safeguard or introduce safeguard into different pack sizes especially
for capturing the female customers.

FAILED PRODUCTS:
CAMAY SOAP PRODUCT DESCRIPTION AND PRODUCT DETAILS:

Camay is rich, creamy beauty soap. Camay is available in different fragrances
Camay is the name of accented hand and body soap, made by Procter &
Gamble. It was first introduced in1926 and marketed as a "white, pure soap for
women," as many soaps of the time were colored to mask impurities. Camay's
slogan for many years was "Camay: the soap for beautiful women." It was later
replaced with "For your most beautiful complexion at every age."Camay is still
produced although many stores in the United States doo not sell it anymore, as
it has fallen out of popularity in recent years. Since it is still quite popular
abroad, in the U.S. it is often found at immigrant-oriented ethnic stores. For
many years, Camay was a major sponsor of the soap opera Search for
Tomorrow. Camay Soap was introduced in the USA in 1926 and in the UK in
1958. It was one of the first “beauty” soaps to be marketed in post-war Britain.
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B. S. Commerce VI

The brand was seen as a luxurious and exclusive soap, which provided the
ultimate in feminine glamour. In those early days, Camay became renowned
for its use of exclusive French perfume, its pink color and its rich lather. The
name Camay was derived from the bar's own cameo stamp. "Camay" was
coined from the French word, "camee," which means cameo, the jewel
PRODUCT FAILURE:
Camay was introduced in Pakistan. Extensive advertisement was done for the
products. The soap was introduced with different scents to ensure variety. But
Camay became unsuccessful in coping up the expectations of the customers.
Therefore it was failed. One of the complaints of the customers was that
Camay is highly soluble soap, due to which it is consumed highly and is not a
cost efficient product. Camay failed to compete with Lux, Capri, Dove, Imperial
leather etc. Even the different scents of the product could not contribute to its
success.
http://www.scribd.com/doc/26249396/Camay-Soap

PUR WATER PURIFIER

Summary:
Low Education Level of Targeted Audience
High Import Duty
Bad Advertisement
2005 Earthquake

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1004156 & 1004147
B. S. Commerce VI

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