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1. INTRODUCTION 1.1 P&G History It was the early nineteenth century, and William Procter and James Gamble - who had immigrated to the US from England and Ireland, respectively - were embarking on their own separate journeys west on the Ohio River when the challenges of traveling led both of them to incinnati, Ohio, USA for relief. William stopped to care for his ailing wife, Martha, who soon died. James came seeking medical attention for himself. Cincinnati, a busy center of commerce and industry at that time, would become home for the unlikely partners. Content to settle in Cincinnati, William Procter quickly established himself as a candle maker. James Gamble apprenticed himself as a soap maker. The two men's paths may have never crossed had they not married sisters - Olivia and Elizabeth Norris - whose father convinced his two sons-in- law to become business partners. In 1837, a humble but bold new enterprise called Procter & Gamble was born. Procter & Gamble started its operations in Pakistan in 1991 with the goal of becoming the finest global local consumer goods company operating in Pakistan. With commitment came growth, and in 1994 we acquired a soap- manufacturing facility, a sprawling 7-acre land at Hub, Balochistan. Over the past nine years, the plant achieved state-of-art manufacturing technologies and quality assurance processes. 1

Wasif Rizvi MBA P&G Report, Rohri,Sukkur

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P&G MBA Report by Wasif Ali, Rohri, Shah Abdul Latif University Kharipur, Sindh

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Page 1: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

1. INTRODUCTION1.1 P&G History

It was the early nineteenth century, and William Procter and James Gamble - who had immigrated to the US from England and Ireland, respectively - were embarking on their own separate journeys west on the Ohio River when the challenges of traveling led both of them to incinnati, Ohio, USA for relief. William stopped to care for his ailing wife, Martha, who soon died. James came seeking medical attention for himself. Cincinnati, a busy center of commerce and industry at that time, would become home for the unlikely partners. Content to settle in Cincinnati, William Procter quickly established himself as a candle maker. James Gamble apprenticed himself as a soap maker.The two men's paths may have never crossed had they not married sisters - Olivia and Elizabeth Norris - whose father convinced his two sons-in-law to become business partners. In 1837, a humble but bold new enterprise called Procter & Gamble was born. Procter & Gamble started its operations in Pakistan in 1991 with the goal of becoming the finest global local consumer goods company operating in Pakistan. With commitment came growth, and in 1994 we acquired a soap-manufacturing facility, a sprawling 7-acre land at Hub, Balochistan. Over the past nine years, the plant achieved state-of-art manufacturing technologies and quality assurance processes.

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Page 2: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

1.2 P&G Background

P&G Pakistan is a subsidiary of the Procter and Gamble Corporation, the leading consumer goods company with a mission to improve the lives of consumers wherever it operates.

P&G is an international Company reaching out to almost the entire world population with more than 250 brands in 130 countries. Many of these world brands (Ariel, Tide, Pert Plus, Pantene pro-V, Head & Shoulders, Pampers and Always) have become famous household names and are found in almost every home.

Headquartered in Cincinnati-Ohio in the USA, P&G has local operations across the globe in more than 80 different countries, including numerous manufacturing sites and 18 R&D-technical centers. P&G is an internationally owned company with publicly traded shares, currently owned by over one million shareholders from around the globe.

P&G employs over 100,000 people from all over the world, spread evenly between 1-USA, 2-Europe/Middle East and Africa and 3-Latin America/Asia. P&G hires and respects individuals regardless of race, color, religion, gender, age, national origin, citizenship or disability, and actively promotes diversity within its organization as well as in its business operations.

1.3 P&G Pakistan Operations

General Office, Karachi, Sindh National Warehouse, Karachi Pamper Packing Facility, Karachi Manufacturing Plant, Hub, Balochistan Sales Offices in Islamabad, Lahore, Karachi, Peshawar, Faisalabad,

Gujranwala, Hyderabad, Multan.

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Page 3: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

1.4 The Board of Director & Manager

A.G. LafleyChairman of the BoardPresident and Chief Executive

P&G's Purpose is to provide branded products of superior quality and value that improve the lives of the world's consumers. This purpose drives strategy. It guides the choices about what we will do and - just as important - what we will not do.

Hans DewaeleGeneral ManagerP&G Pakistan

As a part of the global community of 140 countries where P&G operates, P&G Pakistan benefits from the best of our global experience to combine it with local insight. It is this resourcefulness that consumers have rewarded with market leadership positions in several categories. Our goal is to become the fastest growing consumer products company in Pakistan and we are intent on achieving this through more choice and ongoing improvement in quality.

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Page 4: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

1.5 P & G Product Mix

Pakistan Business Unit Product Line Key Brand

Home care Laundry detergent Ariel

Beauty care Hair care/ hair color, skin care and cleaning cosmetic and antiperspirants / deodorants.Feminine Protection Pads

Pantene, Herbal Essences, Olay, Head and shoulders, safeguard, Camay and Pert Plus. Always

Baby care Baby diapers Pampers Health Care Oral and water care Pure, VicksSnacks Snacks Pringles

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Page 5: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

2. ABOUT BRANDS

2.1 Ariel

In July 1997, Ariel was launched in Pakistan based on a sophisticated and advanced formula. New Ariel delivers against one of the key Pakistani consumer needs: a detergent that could give spotless cleaning to both colored and white clothes. This is because new Ariel contains a unique double action system, which gets fully dissolved unlike bar soap.

Positioning:

Great end-results on cleaning and whiteness maintenance. A detergent that could give spotless cleaning to both colored and white clothes. Ariel contains a unique double action system, which gets fully dissolved unlike

bar soap.

Ariel Product Depth:

Size 30 g 75 g 120 g 400 g 1000 g 2000 g 3000 gPrice 5/= 10/= 15/= 55/= 125/= 225/= 320/=

The green speckles:

USP: Penetrate deep into the fabric to help remove tough stains.

The blue speckles:

USP: Give shine to your whites and brightness to your colored clothes.

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Page 6: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

2.2 Always

Procter & Gamble is one of the world’s largest manufacturers of products for feminine protection.

In 2001, Always was successfully introduced in Pakistan to be the first advanced hygiene pads in

the

market, representing a milestone in the progress and development of Pakistani women. Consumer research shows the following hierarchy of needs for menstrual protection: 

1. Protection and reliability2. Comfort and discretion3. Convenience 4. Economy

Positioning:

It provides during those awkward days has managed to bring about a sense of freedom, mental security and peace for women.

Variants Ultra Normal

Ultra Large

Super plus

Normal Plus

Classic Night Night Super Plus

Price 80/= 80/= 75/= 75/= 55/= 80/= 75/=

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Page 7: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

2.3 Camay

In 1926, the world was introduced to the finest and most sophisticated of luxuries. Different in its very essence, defining beauty in a totally different way from other soaps, Camay stands apart in a league of its own. Camay is not just a soap, it is a feeling - of beauty from within. In a world short of time, Camay is about finding time and pampering yourself.  Camay is for spoiling you, because "you" are the most important person in your life.

Positioning:

finest and most sophisticated of luxuries it is a feeling of beauty Fragrance

Camay Depth:

Aqua Orient Floral

Variants Aqua Orient FloralSize 75 g 125 g 75 g 125 g 75 g 125 gPrice 15/= 22/= 15/= 22/= 15/= 22/=

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Page 8: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

2.4 Head & Shoulders

Head & Shoulders is the world's leading Anti Dandruff shampoo. In Pakistan, H&S has a 65% market share of Anti Dandruff shampoo segment The new, best ever formula for Head & Shoulders contains extra moisturizers which clear away dandruff and also leave hair looking beautiful.

Positioning:

Anti Dandruff shampoo Leave your hair manageable and looking great.

H&S Depth:

Variants Green (Refreshing) Pink (Lively & Silky)

Blue (Classic Clean)

Black (Silky)

Size 5 ml

200 ml

400 ml

700 ml

5 ml

200 ml

400 ml

700 ml

5 ml

200 ml

400 ml

700 ml

5 ml

200 ml

400 ml

700 ml

Price 3 120 225 365 3 120 225 365 3 120 225 365 3 120 225 365

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Page 9: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

2.5 Herbal Essences

Herbal Essences: The Herbal Essences line of 2-in-1 shampoos contains natural plant extracts and mountain spring water. The unique packaging and perfume make this range different from the rest! Mild enough to use everyday, Herbal Essences’ breakthrough formulas perform gently and efficiently, catering to individual hair types.

Positioning: Longer lasting and ultimately more fabulous lather which cleanses hair softly feeling wonderful to the touch.

Herbal Essence Depth:

For Normal Hair 2in1Herbal Essences moisture balancing 2 in 1 shampoo and conditioner blends lavender, jasmine and aloe with plant derived

ingredients to calm and refresh hair and provide balanced conditioning and detangling with no build up.

For Dry/Damaged Hair 2in1Herbal Essences replenishing 2 in 1 shampoo and conditioner blends Peony, Hibiscus and Vitamin E with plant derived

ingredients to gently clean and moisturise, replenish and protect dry or damaged hair with optimal conditioners.

For Normal to Oily HairReduce the build-up on your hair with the conditioning of Herbal Essences clarifying/Residue Removal Shampoo. Made

with Jasmine and Orange Flower, it rinses and cleans away, leaving no residue to weigh hair down.

Variants Normal Dry Oily

Size 5 ml 200 ml 5 ml 200 ml 5 ml 200 ml

Price 3/= 115/= 3/= 115/= 3/= 115/=

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Page 10: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

2.6 Olay

First launched in the 1950's, Olay rapidly became an essential part of many women's' lives. 

Today the brand is enjoyed by 70 million women worldwide and it continues to add new products which enhance womens' natural beauty. Oil of Olay was launched in Pakistan in 1992.

Positioning: leaves the skin fresh and glowing.

Olay Depth:Olay (Pink): With skin compatible essential moisturizer. Pink in cold keeps normal face. Olay (White):

White in summer it protects from the sun beams. It locks in natural moisture to leave skin softer.

Variants Pink WhiteSize 75 ml 100 ml 150 ml 75 ml 100 ml 150 mlPrice 195 235 345 195 235 345

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Page 11: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

2.7 Pampers

In August 2000, Procter & Gamble launched Pampers in this country in Pakistan. Imported from Saudi Arabia, Pampers is packed locally and aims to provide a better parenting experience to Pakistani mothers. 

Market share: 75%Positioning:

the new diaper core design including a new dual acquisition system which helps to improve the condition of baby's skin through a better dryness performance.

Balsam lotion on the top-sheet provides comfort and moisturizing to baby’s skin, each time he moves. 

Variants Small Pack Value Pack

Size Small medium Large Small Medium Large

No. of Pieces 9 8 7 18 16 14

Price 99/= 99/= 99/= 169/= 169/= 169/=

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Page 12: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

2.8 Pantene

Pantene was launched in Pakistan in 1995 and currently every 6th female shampoo user uses Pantene for her hair care needs. The Pantene Pro-V line of shampoos is the best selling shampoo and conditioner system in the world, loved by women in more than 100 countries.Pantene, with its 5 variants for Pakistani consumers, is on the cutting edge of hair care technology as the shampoo that solves many different types of hair problems.

Pantene Depth:

Variants Smooth & Silky Deep Black Extra Treatment

Label ColorGreen Black Dark Blue

USP Shine for dull hairShine for dull

hair Prevents split ends

Size in ml 5 200 400 700 5 200 5 200 400

Price 3 120 225 365 3 120 3 120 225

Variants Golden Protection Clarifying Anti dandruff

Label ColorGold Silver

Light BlueUSP Intensive care for

dry/damaged hairResidue removal Dandruff Control

Size 200 ml 5 ml 200 ml 200 mlPrice 120 3 120 120

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Page 13: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

2.9 Pert Plus

Pert Plus Shampoo + Conditioners-Good News From the Shower! 

Pour some in your hand. Doesn't it feel rich and luxurious? Smell it. The scent is sublime. Best of all, Pert Plus Shampoo never builds up. It doesn't know how. The excess just washes away. So your hair feels clean and full and looks great all day. It kind of bounces when you walk. Especially if you walk really fast. Up some stairs. And it's windy.

Positioning: Pert Plus is a revolutionary 2-in-1 shampoo that gives consumers

lighter and livelier hair. It cleans and conditions without unwanted residue, washing out easily

while leaving a refreshing feeling. An additional quality of Pert Plus is its affordability.

Variants 200 ml Price 99

2.10 Pringles

Variants Original Paprika Salt & Vinegar

Soar Cream &

Cheese & Onion

Hot & Spicy

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Page 14: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

Onion

Size in “g”

50 170 50 163 50 163 50 163 50 163 50 163

Price 45 100 45 100 45 100 45 100 45 100 45 100

2.11 Pure

PuR: PuR Purifier of Water is a low cost and simple-to-use in-home water purification technology that visually clarifies the water and reduces pathogenic bacteria, viruses, parasites, and several chemical contaminants, including arsenic, to result in drinking water that meets World HealthOrganization guidelines. PuR was developed by the Procter & Gamble Health Sciences Institute in collaboration with the International Council of Nurses (ICN) and the Centers for Disease Control and Prevention.

2.12 Safeguard

Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining "health & hygiene" in Pakistan. Positioning:

It is an anti-bacterial soap that provides germ rotection 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.

Safeguard Depth:

Variants White Purple Green Commander Yellow Pink

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Page 15: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

Size in “g”

75 125 75 125 75 125 75 125 75 125 75 125

Price 15 22 15 22 15 22 15 22 15 22 15 22

2.13 Vicks

Vicks is a well-established and leading brand for cough and cold Relief across the world. Globally, there are a broad range of products under the Vicks umbrella, ranging from Multi-symptom relief medicine (Nyquil and Dayquil) to the world famous Vicks Vaporub to other cough and cold relief syrups (Formula 44), tablets (Action 500), and drops (Vicks Throat Drops).

Positioning: Vicks Vaporub is the leading external medicine brand for cough and cold

relief while Vicks Throat Drops are fast gaining acceptance as an instant relief for throat

irritation.

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Page 16: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

3. Strategies3.1 Product Mix

Product width of Pakistan is Detergent, Shampoo, Soap, Lotion, Baby diapers and Feminine Protection Pads, Snacks, Water Purifier and Balm.

P&G Product MixNO: Product Line No: Product Length Product Depth 1 Detergent 1 Arial 22 Shampoo 2 H & S 4

3 Herbal Essence 34 Pantene 55 Pert Plus 1

3 Soap 6 Safeguard 67 Camay 3

4 Lotion 8 Olay 25 Baby diapers/

Feminine Protection pads

9 Pampers 210 Always 7

6 Water Purifier 11 Pure 17 Balm 12 Vicks 18 Snacks 13 Pringles 6

Variants of Brands according color and function.

P & G offer 8 Product line , 13 Brands and many brand have line extension.P&G Branding strategies is over all individual strategies because it have two advantage.

1. If any brand fail then don’t affect on others brands or on company image.

2. It is cause to earn more profit because that create competition among brand managers for example: Brand managers of Head and

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Page 17: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

Shoulder, Panteen, Herbal Essence and Pert Plus so they work hard for more profit.

3. Capture all market segment.

3.2 Promotion Strategies P&G is second number in advertising therefore it is declare that

promotion activities on media is very good then their competitors because they have 13 brand and Unilever have more then 15 brands in Pakistan.

Sale promotion of Safeguard soap in whole country school. Unfortunately now a days on media have clutter so P&G brands

manager reluctant to adds on Media but it is temporary problem. Head & Shoulders and Safe Guard soap have a nice promotion and that get more customers.

3.2.1 Electronic Media Spend

No: Top Ten Companies that advertised on TV

(%) Top Ten Brands that advertised on TV

(%)

1 Unilever Pakistan Ltd. 10 Paktel GSM 32 Proctor & Gamble Pakistan 8 Sunsip Limopani 23 Hilal Confectionaries (Pvt.)

Ltd.7 Head & Shoulders 2

4 Lakson Group 3 Mobilink Jazz 25 Pakistan Mobile Communica-

tion (Pvt.) Ltd. - Mobilink3 Safeguard Soap 2

6 Pepsi Cola International 3 Ufone GSM 17 Paktel Communications Ltd. 3 Pantene Pro-V Shampoo 18 Max Lavender 2 Telenor 19 Tapal Tea 2 Brooke Bond Supreme Tea 110 Pakistan Telecommunication

Company Ltd. - PTCL2 Samsung Mobile 1

Others 49 Others 48Total 100% Total 100%

3.3 Pricing strategies In Pert Plus company follow a psychology pricing policy. In Pringles company follow a premium pricing policy. In other brands company follow a stander pricing policy.

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Page 18: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

3.4 Place Strategies Company have indirect marketing channels because customer

needs collection of brands so that is not possible one company satisfy all customers need therefore retailer has collection of products of different company.

Before February-2007 company has own distribution channel but now it have has IBL.

4. CONCLUSIONS

This report was all about the product mix strategies of Proctor and Gamble for the purpose of to know the how product mix strategies work in practical life.

1. Today, P&G has global operations in nearly 80 countries and

markets its brands in more than 160 countries around the world.

Operations in Pakistan began in 1989 and it has 18 research

development centers in world.

2. Head & Shoulder, Safeguard and Panteen on of the leading product

of P&G and H&S has a 65% market share of Anti Dandruff

shampoo segment, Safeguard is gradually sales is increase and

Panteen solve the multiple problems of hair.

3. In Camay brand is still sell is low and according to our survey

Camay is not available at many retailers. Limited people are used

in Sukkur district.

4. The company has high consistency in its shampoo, soap, detergent,

health care and soap products.

5. Pure brand in unfortunately one of the unsuccessful product of

company due to lengthy procedure of water filtering.

6. Company product is known as the good quality in and health care.

7. Ariel brand is one of the unique brand in market because it provide

spotless cleaning to both colored and white clothes.

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Page 19: Wasif Rizvi MBA P&G Report, Rohri,Sukkur

8. Over all strategies is good such as promotion, sales promotion,

pricing , product mix strategies but in distribution strategy is suffer

by more fluctuation because due to distributors on interest.

5. SUGGESTIONS

1. The distribution discount should be increase as the distribution

must take deep interest in the sales to each brand.

2. All shampoo should be manufactured at Hub, Balochistan Plan in

order to make more efficient and it is also have opportunity for

company to earn more profit.

3. Water Purifier should manufacture in a liquid form rather then

powder because it takes high time.

4. They should be adopted in advertising absolute threshold like

Ufone post paid advertise.

5. They should be Pop song involve in advertising such as Telenor.

6. They should be developed segmented price for student.

7. Still people hair is falling in our society so P&G should be take

more concern on shampoo and insert those quality which protect

customers hair from falling.

8. Company should gradually delete the Pert plus and Pure brands

from market instead these made new brands.

9. Fragrances should be changed in Panteen brands.

10.Company should be inter new market with new product.

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