PRESENTED TO:

SHAHID YAQOOB

PRESENTED BY:

MISBAH KHANAM .. 25

NAILA KHANAM … 27

DEPARTMENT OF MANAGEMENT SCIENCES

MBA
  Executive
Summary…………………………………………………….4
 History of Firm …………………………………………………………5
 Departmentalization……………………………………………………
6
• Target
Market…………………………………………………….6
 Product
Profile…………………………………………………………..7
• Brand
Portfolio…………………………………………………....
 Strategies………………………………………………………………..1
0
• Distribution Channel.……………………………………………
 Marketing Mix………………………………………………………….11
• Product Line Width……………………………………………...
• Product Line
Extension………………………………………….
• Place …………………………………………………………….12
• Prices……………………………………………………………..
• Promotions……………………………………………………….
• Competitors………………………………………………………
 SWOT Analysis…………………………………………………………
13
 BCG Matrix and Product Life
Cycle………………………………….14
 Conclusion………………………………………………………………
15
 Recommendations………………………………………………………
16
 References…………………………………….…………………………
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 3

The businessmen of today have to face many challenges and cope with a
competitive environment. To survive in this environment we have to come up with
new products with features compatible to that of the competitor. To become
market leader business firms require extra ordinary marketing & management
skills. They have to maintain their brand image and ensure that customers remain
hardcore loyal to their brand, for this purpose they should add extra value and
more satisfaction with reasonable cost. In order to capture more and more market
share firms should conduct extensive research of the market and spend handsome
amount on developing innovative and quality products.

Marketing mix strategy should be reviewed over time to remain up-to-date

with latest trend, changes, and consumer preferences in the market. Firm should
conduct proper market segmentation, communication channel, and allot suitable
promotion budget. As the customer trends are changing promotion mix should be
selected carefully and focus on sales promotion rather than advertising. Marketers
 should not aim on one time profit rather they should plan for maintaining strong
loyal customer’s base. This will result in repeated sales.

Our report is based on Procter and Gamble Company. The management of

P&G are following all these techniques and ethics in order to their competitive
advantage, capture maximum market share, remain market leader, provide

maximum value and satisfaction to customers and establish a

broad base of loyal customers. So far they have succeeded.

The Procter & Gamble Company was

established in 1837.Brothers-in-law William
Procter and James Gamble started a
partnership, making and selling candles and
soap in Cincinnati, Ohio.The formal
partnership agreement was signed on
October 31, 1837.

P&G is an international Company reaching out to almost the entire world

population with more than 250 brands in 130 countries .Procter & Gamble started
its operations in Pakistan in 1991 with the goal of becoming the finest local
consumer goods company. Over the years it has proved to be leading in providing
the finest household consumer goods.
• 1879
The inexpensive, but high-quality Ivory soap is introduced
 • 1924
P&G is one of the first to create a market research department to study
consumer preferences and buying habits
• 1955
Crest, the first toothpaste with fluoride clinically proven to fight cavities, is
introduced.
• 1961
Pampers is introduced and replaces cloth diapers.

•
2005
P&G and Gillette
merge into one company develop Gillette and Braun's shaving products, Oral-
B dental care line and Duracell batteries. 5

P & G is a public company. Jobs can be departmentalized by the type of

product the organization produces. In Procter & Gamble each major product –
such as Tide, Pampers Pantene, and Pringles is placed under the authority of an
executive who has complete global responsibility for that product. The major
advantage this type of grouping is increased responsibility for product performance
since all activities related to a specific product are under the direction of a single
manager.
 P & G have large diverse product lines; their target market is more than one
defined market. With the availability of diverse range of cleaning products,
personal hygiene and beauty products and baby care products the females are
easily targeted. The segmentation is according to

• Demography:
Gender: Male/ Females (ages 18 to 45 years)
Children: (ages 5 to 14 years)

• Geography:
Almost all urban areas and some rural areas as well.

• Socioeconomic Status:
Mainly targeting middle class and upper middle class in urban and sub-urban
areas.

• Physiographic:
Young housewives and mothers who care about
the health and well being of their families.

6
 SEGMENTS PRODUCTS IMPORTANT
BRANDS
Laundry and Laundry detergents and bleaches, Ariel, Tide,, Mr. Clean,
fabric conditioners, household
Cleaning cleaners and dishwashing detergents.
Paper Diapers, facial tissue, toilet tissue, Pampers, Luvs, Always,
paper towels, baby wipes, feminine Whisper.
protection.
Beauty Care Facial cleaners and moisturizers, Clearasil, Herbal Essences,
hand and body lotion, personal Head and Shoulders, Oil of
cleaning, color cosmetics, skin care Olay, Pantene, Gillete
cosmetics, deodorants, shampoos,
hair conditioners, hair spray.
Food and Snacks, coffee, juices, oil, peanut Crisco, Pringles.
butter.
Beverage
Health Care Toothpastes, toothbrushes,
mouthwashes, allergy remedy, Vicks, Vicks vaporub,
stomach remedy, cold remedies, Actonel Crest, Metamucil
throat drops, pharmaceuticals.

Large and diverse types of products are served by P&G. They are
categorized under subheads Cleaning, Paper, Beauty Care, Food, and Health Care
according to common characteristics.

Following are the list of most popular brands served in Pakistan.

Fabric Cleaning and care at its best.

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A moisturizing bar soap that leaves skin soft, fresh
and sensuous.

Offers an array of skincare and personal cleansing

products for women of all ages.

Recognized brand name.

Offers a great range of electronic products.

Offers toothpastes, toothbrushes, whiteners,

providing quality dental care.

First line of dermatologist-tested skincare products

for men.

Provides a vide range of reliable batteries.

The world’s number one anti-dandruff shampoo.

8
Provides brand of shampoos varying in exotic fragrances.

Provides toothbrushes and other dental care products.

The most popular brand of diaper for babies.

Provides popular range of hair care products.

Provides tasty potato and wheat based snacks in different

flavors.

Provides a leading antibacterial soap that is popular

among children.

Provides a wide range of products for fast relief of cold,

flu, and cough sore throat, runny nose, fever, and
related symptoms.
9
 Following strategies are implemented by P&G during the different stages of
the product life cycle of respective products.

Marketing Phases
Strategies
Introduction Growth Maturity Decline

Overall Market Market Defensive Efficiency

Development Penetration
Strategy
Product Undifferentiated Improved Differentiated Line
Items Extension
Strategy
Pricing Mostly High Lower over Lowest Increasing
time
Strategy

Distribution Scattered Intensive Intensive Selective

Strategy

Promotion Category Brand Brand Sales

Awareness Preference Loyalty Promotion
Strategy

Distribution channel of P&G

P&G → Agent → Distributor → Retailer → Customer (Consumer).

10
 Product Line Width
P&G has a wide variety of products. For example:

SHAMPOOS DETERGENTS SOAPS DENTAL BEAUTY

CARE PRODUCTS
Head and Ariel Safeguard Oral B Olay
Shoulders
Camay Crest Wella
Pantene Tide
Rejoice Cover Girl
Product Line
Herbal
Essences Extension

Product line is extended through Stretching and Filling strategies by adding

new products in the line or by adding new features. For example:

PANTENE PRINGLES GILLETTE

Barbecue
Sensor
Nourished Shine
Salt & Vinegar Trac II
Smooth & Silky Sour Cream & Mach 3
Onion
M3 Power
Anti-Dandruff Cheese &
Onion Fusion
Long Black Hot & Spicey

11
 P&G headquarters in Pakistan are located in Karachi. With the passage of
time and growth of organization, a sprawling 7-acre land at Hub, Balochistan in
1994 was acquired for soap-manufacturing facility. It produces Safeguard and
Camay soaps.

For setting the price of products P&G uses the following strategies:
 Optional-Feature Pricing
 Captive Product Pricing
 Cheaper Price as compared to competitors

P&G is involved in exclusive promotions of its products which are

one of the main reasons for its success. Much expense is used in
advertising by known celebrities, promotional activities and running
campaigns.
 Safeguard Global hand washing day
 Pampers “One Pack = One Vaccine” Campaign
 Procter & Gamble University challenge
 Commander Safeguard cartoons

 Johnson &
Johnson Co.
 Unilever
Co.
 Kimberly-Clark Co.
 12

STRENGTHS WEAKNESSES
1. Strong brand recognition. 1. Quality control problem.
2. Leading Market position. 2. Many times it leads to decrease in
3. Diverse and innovative products. market share.
4. High quality and lower prices of 3. Expansion for brands is limited
goods and services. 4. Increased spending on promotions.
5. Research and development.

OPPORTUNITIES THREATS
1. Emerging Markets. 1. Increase in raw material price.
2. Less Trade barriers for 2. Intense competitors.
foreign countries. 3. Increase in regulations.
3. has room to expand margins by 4. Cheap substitutes available.
increasing productivity. 5. Dynamic environmental changes
4. New ideas for health and affecting consumer buying behavior.
beauty products for men.

13
 Bost on Consulting
Group matrix is a very
useful tool to analyze
business units and
product lines. The BCG
for certain products of
P&G show that head and
shoulders, pantene and
ariel have most potential
and are generating
equal revenues.
Whereas olay has less market share as well as market growth so the firm
should make a crucial decision about it.
 14

This research shows why Procter and Gamble is a leader in the industry.
Almost all the products marketed by P&G here in Pakistan have been successful to
become a household name: Head & Shoulder and Pantene shampoo, Ariel
detergent, Pampers diapers, Flex hair conditioner, Vicks menthol drops and
Vaporub, Oil of Ole, Clairol skin care, Safeguard and Camay bar soaps.

P&G has been providing branded product and services which consistently
offer value in terms of price and quality. They are properly labeled, packaged and
advertised. They have mutually beneficial relations with supplier, business
partners and customers. It is also making improvements in managing social
responsibility and promoting eco-friendly activities.
 15

• Product line managers should check their product lines time to time
in order to evaluate growth and decline of products. In case some
products are constantly in decline and generating no profits they
should be eliminated in order to save costs.
• It should be carefully analyzed that increase in sales of one product
should not be at the cost of another product.

• Market share of Multan is only 9%; however Multan still has a lot of
unexplored potential. Sales promotion measures should be adopted
to enhance its market share

• Camay-Dog product should be re-launched by adding more features.

Camay is a market leader product worldwide but in P&G Pakistan it is
a dog product.

• P&G should focus on sales promotion rather than advertising in sub

urban and rural areas of Multan and Southern Punjab.
• P&G must focus on social responsibility, to maintain image among
customers.

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• www.p&g.com
• www.wikipedia.org/wiki/proctor&gamble
• www.scribd.com
• www.google.com

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