Project on Strategic Marketing


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Project on Strategic Marketing

  2. 2. ACKNOWLEDGMENTS My first and foremost humble and gratitude to “ALLAH” the almighty for giving me the valor to remain dedicated to make this audit report. Apart from it I take the opportunity to acknowledge the real efforts of: First, we would like to thank SIR KAMRAN SAEED, for his valuable support and encouragement which he has offered. His words of wisdom will always be remembered, and we are convinced that the knowledge of marketing that he has imparted would go a long way and helping us all through our professional career. Secondly to SAAD MUNAWAR KHAN, assistant brand manager, safeguard Procter & gamble, Pakistan, he have provided us with valuable information which helped us a lot in completion of this project 2
  4. 4. 15 Distribution Strategy 33 Sr# List Page 16 Pricing Strategy 34 1 Executive Summary 4 17 Advertising And Promotion Strategy 35 2 Market & Industry Analysis 6 18 Conclusion & Recommendations 44 3 Situational Analysis 7 19 References 45 4 Company Introduction 8 5 Brand Portfolio- Pakistan 11 6 SWOT ANALYSIS- P&G 17 7 Product Profile 18 8 Safeguard SWOT analysis 23 9 Competition Analysis 25 10 Target Segments 26 11 Segmentation Strategies 27 12 Market Strategies 29 13 Strategies for creating Competitive Advantage 30 14 Positioning Strategy 32 4
  5. 5. EXECUTIVE SUMMARY Praise to be Allah Almighty, the one testing us all at all times and making decisions about what we don’t know and can’t know. Today it is impossible for a common man to run a business especially in this period of competition. This situation demands energetic, duly qualified experienced business administrators who could meet the challenges of this age of modernization. 5
  6. 6. HAJVERY UNIVERSITY produces management specialists fully aware of the ins and outs of the business management, and capable of meeting the challenges of modern business environment. The scope of the project is to discuss the marketing strategies adopted by P&G Pakistan, applied on its brand Safeguard. From the last month or so our group is in a process of continuous research on marketing functions and strategies adopted by P&G. These marketing functions mainly include the marketing mix i-e, Product strategy, Pricing Strategy, Promotional tools and strategies and Placement & Distribution strategy as well as other market strategies. Moreover the project also discusses the analysis of competition, market growth & trends, opportunity analysis and strategies for creating competitive advantage adopted by P&G Pakistan. We will like to add that the project will provide the readers and the listeners’ very high profile information about the marketing strategies as a whole and also about the organization Procter and Gamble. In the end we hope that the project will result very profitable both for the readers and Safeguard Soap. Your 6
  7. 7. feedback in the end either critical or substantial will be highly appreciated. MARKET DEMOGAPHICS • Population: 176,242,949 (July 2009 est.) • Growth rate: 1.828% • Birth rate: 27.74 births/1,000 population • Death rate: 8 deaths/1,000 population • Net migration rate: -1.24 migrant(s)/1,000 populations • 0-14 years: 37.2% (male 33,739,547/female 31,868,065) 7
  8. 8. • 15-64 years: 58.6% (male 52,849,607/female 50,378,198) • 65 years and over: 4.2% (male 3,475,927/female 3,931,605) (2009 est.) INDUSTRY ANALYSIS POPULATION : 176,242,949 (July 2009 est.) Children: 37.2% (65607612) Adults :62.8% (110680572) children equity: 60% (14643619) adult equity: 40% (27802960) TOTAL TARGET MARKET: 42446579 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, 8
  9. 9.  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.  Other factors: like the government regulations and technological advancements have had no significant effect on the product and the company. Company Introduction P&G Pakistan Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in Pakistan in 1991. Our 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. 9
  10. 10. With commitment came growth, and in 1994 we acquired a soap-manufacturing facility sprawling seven acres of land at Hub, Balochistan. In 2002, the plant tripled its soap- manufacturing 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. Facts about P&G Pakistan 10
  11. 11. • Procter & Gamble started its operations in Pakistan in 1991. • P&G Pakistan is headquartered in Karachi. • P&G Pakistan has reinvested over $100 million in Pakistan within the last 12 years. • P&G Pakistan has invested 63 million dollars over the last 5 years in terms of capital, marketing and training. • P&G Pakistan has contributed close to 7 billion rupees to the Pakistani government's revenues over the last 5 years in the form of sales tax, customs and excise duties. • P&G Pakistan creates more than 4,000 jobs in Pakistan. 99% of the jobs that P&G Pakistan creates in Pakistan are held by Pakistanis. • P&G Pakistan owns a sprawling 7-acre land manufacturing facility at Hub, Balochistan, which manufactures Safeguard and Camay soaps. A recent 5 million dollar investment has tripled the plant's capacity. • P&G Pakistan runs several social marketing programs in the field of education and health. These programs benefit more than 3 million people annually. MISSION STATEMENT We will provide branded products and services of superior quality and value that improve the lives of the world's consumers, now and for generations to come. 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. 11
  12. 12. Vision Statement “Be, and be recognized as, the best consumer products and services company in the world.” Organization Portfolio ESTABLISHMENT: P&G is an American Global Corporation based on manufacturing a wide range of consumer goods. It was born on October 31 1837 , headquatered in Cincinnati, Ohio, USA. As of 2008, P&G is the 6th largest company Market capital, 14th largest by profit and 6th in Fortunes most admired companies list. COMPANY TYPE: Public company. BRANDS: P&G offers a variety of brands. P&G’s existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. 12
  13. 13. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.   P&G’s products are found in almost every product category. Following are the list of brands served in Pakistan: Ariel Fabric cleaning and care at its best. A moisturizing bar soap enriched with perfumes of French inspiration that leaves your skin feeling fresh, soft and sensual. Olay® offers an array of skin-care and personal cleansing products that provide multiple benefits designed for women of all ages. Always® offers great protection throughout your menstrual cycle to help you live life to the fullest — without interruption. 13
  14. 14. We strive to bring innovation, inspiration and enjoyment to people's everyday lives through our intelligently innovated, intuitively designed and carefully crafted products. Crest® toothpastes, toothbrushes, whiteners, flosses and rinses create healthier, brighter smiles every day. Whether you're monitoring a human heart, photographing outer space with an IMAX® camera or simply taking a few snapshots at home, depend on Duracell®. ESCADA is an international mark of luxury, elegance and quality, a signature recognized around the globe for products of the highest standards. The ESCADA brand stands for happiness in life — "Joie de Vivre" embodying a vivacious and glamorous woman, following her instinct and ambition to make the best of every moment. Introducing Gillette® Complete Skincare™ — the first line of advanced dermatologist-tested skincare products made for men, by the people who know a man's face best. Gillette 14
  15. 15. Complete is designed to deliver the five signs of noticeably healthy-looking skin in just 14 days Head & Shoulders helps eliminate scalp dryness, itch and irritation, for hair that's 100% flake-free with regular use. Change your look every season, every day or every boyfriend? There’s an Herbal Essences that's right for you. HUGO is different. HUGO is trendy. HUGO is urban. People who wear HUGO have fun, enjoy life and take risks. They don't care about rules but live their life on their own way. Independent, unconventional and modern. Creative people who are on the move. HUGO is the look and feel of London, Berlin and New York — the style for individualists. The world of BOSS is driven by success and achievement; a modern place, yet defined by the classic values of elegance and style. At Old Spice®, we're dedicated to staying up-to-date on emerging technologies that protect you from odor and wetness, and keep you smelling great. With our new scents and 15
  16. 16. constantly expanding line of products, it's no surprise that Old Spice is a top choice among guys. For more than 50 years, Oral-B® has produced the highest-quality dental hygiene products for you, your family and dental professionals worldwide. Trust the brand more dentists use themselves worldwide For all stages of development, Pampers® has products to help your little one stay clean and comfortable. From diapers for babies to pants for toddlers, we've got your child covered — with great fit and a little fun, too. What's more, parenting advice, child-care tips and activity ideas can be found online from the experts at the Pampers Parenting Institute. Whether you want to fight frizz, boost volume, or add moisture for strength and smoothness, Pantene has a Pro-Vitamin formula that helps hair reach its potential. * Shampoos, conditioners, stylers and treatments It's easy to fall in love with the irresistible taste of Pringles®. But choosing a flavor? Now that's the hard part. With 16
  17. 17. so many delicious varieties, you'll want to try them all. No matter which one you decide to pop, one thing's for sure — the fun won't stop! ® products offer you delicious filtered water at 1/10th of the cost of bottled water. Safeguard® is the No. 1 antibacterial soap worldwide. Safeguard is designed to provide excellent germ protection for the whole family. Vicks® provides temporary relief of coughs and cold or flu symptoms. Dunhill caters to the needs of the discerning man, from formal and casual menswear, to handcrafted leather goods through to fine men’s accessories, wrist watches, fragrance, cigarettes, writing instruments, cigars… 17
  18. 18. PUMA is the original "sport lifestyle" company. Building on its core sports heritage, it combines the influences of lifestyle, music and fashion. PUMA Fragrances capture this character by effortlessly jumping boundaries — between sport and fashion, cultural influences and different design choices. We provide both colourful, trendy propositions for the teen consumer and more sleek-looking products for young adults SWOT ANALYSIS- P&G STRENGHTS • Strong financial position • Large scale of operations • Strong branding • Product innovation • Developing markets infrastructure WEAKNESSES • Customer concentration • Lack of effective distribution in some countries 18
  19. 19. OPPORTUNITIES • Wide range of demography • Developing markets • New products • Acquisitions THREATS • Increase in prices of raw materials • Uncertainity in the economic conditions • Intense competion • Unfavorable business laws and political unstability 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 & 19
  20. 20. HYGIENE" IN PAKISTAN. IT IS AN ANTI-BACTERIAL SOAP THAT PROVIDES GERM PROTECTION FOR TWICE AS LONG 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. COMPOSITION AND INGREDIENTS Ingredients/Chemical Name: Active Ingredient: Triclosan Inactive Ingredients: 1. Water 2. Sodium lauryl sulfate 3. Sodium laureth sulfate 4. Lauramide DEA 5. Glycol distearate 6. Cocamidopropyl betaine 7. Sodium sulfate 8. Fragrance 9. Guar hydroxypropyltrimonium chloride 10.Citric acid 11.Hydantion 12.Tetra sodium EDTA 20
  21. 21. 13.FC&D Red No. 4 14.FD&C Yellow No. 5. Health Hazards (Acute and Chronic): Ingestion: May cause mild, transient gastrointestinal irritation with nausea, vomiting and/or diarrhea. Eye Contact: May cause mild, transient irritation. Skin Contact: May cause mild, transient superficial effects similar to produced by other mild hand soaps. Use on irritated or extremely dry skin may aggravate the existing condition. PHYSICAL AND CHEMICAL PROPERTIES Boiling Point: above 21oF Vapor Pressure: N/A Vapor density: N/A Odor threshold: N/A Coefficient of water/oil distribution: n/a Scooped Density: N/A Appearance and odor: Peach pearlized liquid; sweet smell Specific gravity: 1.02 % volatile by volume: about 80% Evaporation rate: same as water pH (10%): 5.9-7.9 21
  22. 22. Solubility in water: complete. PRODUCT TYPE: Consumer and biz product Safeguard soap is a fast moving consumer product. Convenience good It is an essential good vis-à-vis it’s 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 / grime. PRODUCT ATTRIBUTES: Safeguard soap has set new standards for defining "health & hygiene" in Pakistan. BRAND NAME: Safeguard Slogan: 22
  23. 23. BRAND POSITIONING: Anti bacterial soap BRAND IMAGE: Health and hygeine BRAND EXTENSION/ PRODUCT MIX: The seven variants provide an ideal product mix in terms of consumer needs i.e. (2 skus – 115 Gms and 70 Gms): • 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. • Vitamin E: Cleans your skin and makes it smooth New launch of Safeguard Herbal Soap, which takes the tally of soaps to six variants. Unique Proposition that Safeguard Herbal Soap has to offer is: 23
  24. 24. “The fundamental idea is that ordinary beauty soaps only offer aspects of beauty but what healthy skin requires is both freedom from germs and the use of natural extracts; something only offered by Safeguard Herbal Soap which provides not only Maximum Protection from germs but also contains Avocado oil and botanical extracts.” 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 THE STRENGTHS • The brand’s 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’ 24
  25. 25. THE WEAKNESSES • dissolves quickly in water THE 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   THE THREATS • Competition from Dettol and lifebouy • Economical uncertainity PACKAGING: The packaging makes the brand look expert and modern. This packaging makes the brand look more contemporary and hi- tech. It ensures more emphasis on the variants that have already been a part of the product but never been communicated to the customer that well. This new packaging has clearly identified that there is a separate product for each skin type. Safeguard is available in a variety of packaging formats to suit all consumer needs and consumption occations. Packaging is innovative to meet the individual needs consumers all over the country. 25
  26. 26. The range of formats extends from the individual bar soap (115 Gms)to the family size bar(70 Gms), for in-home and office usage. LABEL: The label provides the information like the ingredients, chemical composition, quantity, logo and the stamp of FDA with lisence is also mentioned. COMPETITION ANALYSIS Here is a brief description about the antiseptic soap producing companies. 1. 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 as ordinary soaps making it the doctors' number 1 recommended choice throughout the world. 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 26
  27. 27. 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. 2. 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. 3. 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 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.   27
  28. 28. TARGET MARKET The target market for Safeguard soap 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 / grime. Safeguard believes children are potential agents of change and imparting education on the importance of hand washing with soap will enable them to adopt healthy habits early in life” TARGET STRATEGY In the mind of the consumer, anti-bacterial soap should have the following: A product whose core function is to clean skin, making it softer and smoother, while leaving a feeling of freshness behind. Good perfume and foam combine to deliver this freshness experience. The key functional benefit is that it removes dirt, oiliness and other impurities from skin. Germs are not top-of-mind for the average consumer, but are a function of Dirt and disease. Research led us to know that consumers are largely unaware of the diverse nature of ‘jaraseem’. They just know that Germs (jaraseem) are the bad guys. They don’t know that there are different types of germs. Different antibacterial competitors are trying to own a higher ground by building on already present germ-kill equity. Like 28
  29. 29. Dettol has given it’s slogan of “Dettol protects against a wide range of unseen germs, including bacteria and viruses” While safeguard is focusing on ‘Din Raat Lagataar Tahaffuz’ which is more powerful in the mind of the consumer. Lifebuoy is following the “germ buster’s” strategy.   SEGMENTATION STRATEGY • Psychographic Segmentation • Demographic Segmentation • Geographic Segmentation • Behavioral Segmentation MARKET DEMOGRAPHICS (GEOGRAPHIC, DEMOGRAPHICS, BEHAVIORAL FACTORS) The target markets analysis of Safeguard soap is:- GEOGRAPHIC LOCATION Include almost all Urban; suburban; small town; and some rural areas of Pakistan DEMOGRAPHICS – Gender Male; female Age 18years to 45 years – Kids Age range 5-14 years 29
  30. 30. SOCIOECONOMIC STATUS Mainly targeting middle class and upper middle class in urban and sub-urban areas – primarily cities and surrounding areas. Rural market penetration is limited and is primarily driven through indirect channels (e.g. Wholesale) PSYCHOGRAPHICS Young housewives and mothers who care about the health and well being of her family. And educating children about health and hygiene. 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 30
  31. 31. 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 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 Soap’s 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. 31
  32. 32. 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 programme needed for success • Children - powerful +ve change agents in household OVERALL EXCELLENCE STRATEGY: P&G is a trusted brand and its products are consider to be best and of very high quality worldwide. This is a very important competitive advantage of P&G.   Introduction Growth Maturity Decline Characteristics         Customers Innovators Mass Market Mass Market Loyal Customers Competition Little if any Increasing Intense Decreasing Low levels, then Slow/no annual Sales Rapid Growth Declining rising growth Strong, then Declining Profits None Low/none at peak annually 32
  33. 33. Marketing         Implications Market Market Overall Strategy Defensive Efficiency Development Penetration Stable or Costs High per unit Declining Low increasing Improved Product Strategy Undifferentiated Differentiated Pruned Line items Lower over Pricing Strategy Most Likely high Lowest Increasing time Distribution Strategy Scattered Intensive Intensive Selective Category Brand Promotion Strategy Brand Loyalty Reinforcement awareness Preference 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: 33
  34. 34. The primary positioning vis a vis 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: 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 (TSP’s) 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 (Key Accounts) 34
  35. 35. 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). INTENSITY OF DISTRIBUTION P&G has an intensive distribution strategy of the product through its distributors that cover every geographical area and who resell onwards to wholesalers and retailers. There is also direct delivery service to key accounts (USC, CSD, and MAKRO &METRO). Every available channel is utilized for maximum distribution and coverage to all the hypermarkets, supermarkets, general stores, kiryana stores and medical stores. The company also has in place a RDF (rural development force) which is covering the rural areas and exploring new markets for potential market penetration. These distributors are given clear instructions regarding the selection of the retailer and to make sure that the retailer; s knows about the significant characteristics of the product. k Places the product along with its major competitors like Lifebuoy (Unilever) and Dettol (reckittbenckiser) . L displays the soaps distinctly. They give off and on offers as trade promotion incentives to their distributors. The distributors contribute to the promotion of Safeguard by word of mouth. PRICING STRATEGY P&G is using Competitive Pricing approach in order to capture its piece of cake. COMPETITIVE PRICING DESCRIPTION 35
  36. 36. Competitive Pricing is a defensive and competitor-related approach to pricing. It is a marketing-oriented 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. Geographic pricing strategy In pricing the seller must consider the cost of shipping. There are different geographic strategies. But P&G utilizes the uniform delivering pricing (the same delivering price quoted to all buyers regardless of their location) for Safeguard Soap. ADVERTISING AND PROMOTION STRATEGY Promotion objectives Build top of the line consumers' awareness. B Creating a personality of the brand. Besides having these general objectives, the advertising objectives are set avoiding to the advertising strategy for each product. 36
  37. 37. To increase the usage. T Health benefits. H Antibacterial soap A Imparts a feeling of freshness-due to fragrance. I Effectively communicate brand promise. 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 IAL Saatchi & Saatchi Advertising Company because of their outstanding work in Pakistani market. 37
  38. 38. BUDGET 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. 38
  39. 39. 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 Safeguard’s advertising strategies we must keep in mind the commander safeguard series which are very intriguing for the children. Commander Safeguard Commander Safeguard, the first animated superhero of Pakistan and the mascot of P&G’s 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. The character is popular in Pakistan and in Mexico, where it is known as Capitan Escudo. Beyond selling a product, the show's mission is to promote health and hygiene among children. Till now, 7 episodes (excluding two Independence Day special episodes) of 15 to 20 minutes have been aired on many Pakistani TV channels. Its one of the most popular local TV shows for children in Pakistan. STORY CHARACTERS 39
  40. 40. 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 40
  41. 41. 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: What’s new about this program? The Safeguard School Program connects with kids in a language that they understand. This program leverages the animated character Commander Safeguard as the communication vehicle to make the overall hygiene message relevant, memorable and engaging for school children. Commander Safeguard communicates with children in a way that is novel and exciting Background The Safeguard School Program promotes handwashing awareness and brings about habit change at the grassroots level in Pakistan by becoming an ally in empowering children with health and hygiene education. The program has its roots in the Karachi Soap Health Study (2002) led by the Centers for Disease Control, HOPE and Procter & Gamble. The study showed that regular handwashing with soap can reduce the incidence of diarrhea by up to 50 percent. In Pakistan, where every year more than 250,000 children die from diarrhea, this message of handwashing becomes a message for survival. Partnership with Public Sector Health Organizations to make a difference Health and hygiene programs are carried out in collaboration with the PMA, the largest body of doctors across Pakistan, and the IDSP, which is working to create awareness about infectious diseases prevention in Pakistan. These credentialing partners help Safeguard in recruiting and training doctors and preparing tutorial material communicated in schools. 41
  42. 42. Achievements Safeguard School Program has empowered more than 5 million school children between the ages of 6 and 11 years with hygiene education over the last four years. To date, this program has covered more than 10,000 schools in 100 cities of Pakistan. Key lessons Using a memorable, engaging and child-friendly vehicle – Commander Safeguard – to spread and reinforce health and hygiene messages is far more effective with children than standard health lessons. Private Sector companies like Procter & Gamble bring unique consumer understanding and marketing expertise which, if combined with public sector health organizations, can lead to new innovative ways to influence hand wash behavior change. The Safeguard school program has two components: 1. Execution: The objective of the execution component is to spread and reinforce health and hygiene messages among children across Pakistan in a memorable and engaging manner. A typical school program day consists of Safeguard’s team of qualified doctors visiting schools, where they conduct hygiene tutorial sessions. In these tutorials, children are taught about germs and how they are spread through casual contact via a germ visualization demo. They are also taught how to wash their hands properly through a handwashing demo. This hygiene message is reinforced through a Commander Safeguard animated cartoon. Each student is then given take-home educational material so that they can continue to learn and monitor their hygiene habits with their families. 2. Reseeding component: The objectives of the reseeding component are to ensure that health and hygiene learning continues long after the Safeguard team has completed its health tutorial and to help schools institutionalize this learning through activities like “Health Days.” A Health Day is the celebration of health and hygiene organized and led by the schools themselves. Schools have celebrated Health Days in various ways, among them drama competitions, debates, singing competitions, art galleries, health 42
  43. 43. awareness walks, and community cleanliness drives – all organized around the theme of health and hygiene.. MEDIA PLAN-RADIO The radio ad has been derived from the TVC with air time on all mainstream channels in Lahore and Karachi.   PRINT ADVERTISEMENT The next priority of SAFEGUARD SOAP is Print media. Safeguard soap has a very aggressive approach in print advertising with the launch of the new Safeguard soap ads appear in almost all the leading newspapers around the country e.g. DAWN, THE NEWS, NAWAI-WAQT etc. the print ad in given below clearing spelling out the message that Safeguard soap is daily usage soap for the whole family with a new formulation, which smell good, feels goods on the skin and is available in 7 different variants.   CONSUMER PROMOTION Safeguard soap also provides additional support by giving away various consumer promotions to provide the consumer with the extra value benefit. Another consumer promotion opportunity as a part of new product promotion and sampling effort has been carried out at METRO stores in Lahore and Islamabad where a free soap bar is being offered on a single purchase of the new product.   43
  44. 44. 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. Various placement strategies are shown below. Displays in Top Store Program (HKB, AL-FATEH, AKBARI etc) / Top 1000 stores through dedicated shelves so to have maximum visibility. DEDICATED SHELVES AT AKBARI SUPER STORE DEDICATED SHELVES AT AL-FATEH STORES. Display at makro and metro stores to provide maximum availability and visibility to consumer. METRO STORE, THOKAR NIAZ BAIG MAKRO STORE, RAVI ROAD LAHORE As a part of the placement and promotion strategy window branding is also very important. WINDOW BRANDIND AT AL- FATEH STORES 44
  45. 45. CONCLUSION & RECOMMENDATIONS 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. 45
  46. 46. • They should set the price of their product in accordance with their competitor’s price. • Introduction of smaller bars would be beneficial. • 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 launch more episodes of the series to attract the children as they are their prime focus. 46
  47. 47. REFERENCES • • • Saad Munawar Khan, Assistant Brand Manager, Safeguard Procter & Gamble, Pakistan 47