Wasif Rizvi Mba P&g Report, Rohri,sukkur

1. 1.1

INTRODUCTION 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-inlaw 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-ofart manufacturing technologies and quality assurance processes.

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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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1.4

The Board of Director & Manager

A.G. Lafley Chairman of the Board President 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 Dewaele General Manager P&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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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 Baby diapers Oral and water care Snacks

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

Baby care Health Care Snacks

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Pampers Pure, Vicks Pringles

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 Price 5/=

75 g 120 g 400 g 1000 g 2000 g 10/= 15/= 55/= 125/= 225/=

3000 g 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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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 reliability 2. Comfort and discretion 3. 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 Price

Ultra Ultra Normal Large 80/= 80/=

Super plus 75/=

Normal Classic Night Plus 75/= 55/= 80/=

2.3

Camay 6

Night Super Plus 75/=

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 Variants Size Price

Orient

Floral

Aqua 75 g 15/=

Orient

125 g 22/=

75 g 15/=

2.4

125 g 22/=

Floral 75 g 15/=

125 g 22/=

Head & Shoulders

Head & Shoulders is the world's leading Anti Dandruff shampoo. In Pakistan, H&S has a 65% 7

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 &

Blue (Classic Clean)

Silky)

Size Price

2.5

5 ml 3

20 0 ml 12 0

40 0 ml 22 5

70 0 ml 36 5

5 ml 3

20 0 ml 12 0

40 0 ml 22 5

Herbal Essences

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70 0 ml 36 5

5 ml 3

20 0 ml 12 0

40 0 ml 22 5

Black (Silky) 70 0 ml 36 5

5 ml 3

20 0 ml 12 0

40 0 ml 22 5

700 ml 365

Herbal Essences: The Herbal Essences line of 2in-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 2in1 Herbal 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.

Variants Size Price

For Dry/Damaged Hair 2in1 For Normal to Herbal Essences replenishing Oily Hair 2 in 1 shampoo and Reduce the buildconditioner blends Peony, up on your hair Hibiscus and Vitamin E with with the plant derived ingredients to conditioning of gently clean and moisturise, Herbal Essences replenish and protect dry or clarifying/Residue damaged hair with optimal Removal conditioners. Shampoo. Made with Jasmine and Orange Flower, it rinses and cleans away, leaving no residue to weigh hair down.

Normal

Dry

Oily

5 ml

200 ml

5 ml

200 ml

5 ml

200 ml

3/=

115/=

3/=

115/=

3/=

115/=

2.6

Olay 9

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.

With skin moisturizer. Pink in cold

compatible keeps normal face.

Olay Depth: Olay (Pink): essential

Olay (White): White in summer it protects from the sun beams. It locks in natural moisture to leave skin softer. Variants Size Price

2.7

75 ml 195

Pink 100 ml 150 ml 75 ml 235 345 195

Pampers

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White 100 ml 150 ml 235 345

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 Size No. of Pieces Price

Small Pack

Value Pack

Small

medium

Large

Small

Medium

Large

9

8

7

18

16

14

99/=

99/=

99/=

169/=

169/=

169/=

2.8

Pantene

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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 Label Color

Smooth & Silky Green

USP

Shine for dull hair 20 0 12 0

40 0 22 5

70 0 36 5

Size in ml

5

Price

3

Variants

Golden Protection Gold Intensive care for dry/damaged hair 200 ml 120

Label Color

USP Size Price

Deep Black Black Shine for dull hair

Extra Treatment Dark Blue Prevents split ends

5

200

5

200

400

3

120

3

120

225

Clarifying Silver Residue removal 5 ml 3

2.9

200 ml 120

Anti dandruff Light Blue Dandruff Control 200 ml 120

Pert Plus

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

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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 Price

200 ml 99

2.10 Pringles

Variants Size in “g” Price

Original

Paprika

Salt & Vinegar

50 170

50

163

50

45 100

45

100

45

2.11

Soar Cream & Onion

Cheese & Onion

Hot & Spicy

163

50

163

50

163

50

163

100

45

100

45

100

45

100

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

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reduces pathogenic bacteria, viruses, parasites, and several chemical contaminants, including arsenic, to result in drinking water that meets World Health Organization 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 Size in “g” Price

2.13

White 75 125

Purple 75 125

Green 75 125

15

15

15

22

22

22

Commander Yellow 75 125 75 12 5 15 22 15 22

Pink 75 125 15

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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 Multisymptom relief medicine (Nyquil and Dayquil) to the world famous Vicks Vaporub to other

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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.

3. Strategies 3.1 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 Mix 15



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 NO: 1 2

Product Line Detergent Shampoo

3

Soap

4 5

No: 1 2 3 4 5 6 7 8 9 10

Product Length Arial H&S Herbal Essence Pantene Pert Plus Safeguard Camay Olay Pampers Always

Product Depth 2 4 3 5 1 6 3 2 2 7

Lotion Baby diapers/ Feminine Protection pads 6 Water Purifier 11 Pure 1 7 Balm 12 Vicks 1 8 Snacks 13 Pringles 6 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 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. 16

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 2 3

Unilever Pakistan Ltd. Proctor & Gamble Pakistan Hilal Confectionaries (Pvt.) Ltd. Lakson Group Pakistan Mobile Communication (Pvt.) Ltd. - Mobilink Pepsi Cola International Paktel Communications Ltd. Max Lavender Tapal Tea Pakistan Telecommunication Company Ltd. - PTCL Others Total

10 8 7

Paktel GSM Sunsip Limopani Head & Shoulders

3 2 2

3 3

Mobilink Jazz Safeguard Soap

2 2

3 3 2 2 2

Ufone GSM Pantene Pro-V Shampoo Telenor Brooke Bond Supreme Tea Samsung Mobile

1 1 1 1 1

4 5 6 7 8 9 10

49 Others 100% Total

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.

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.

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48 100%

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. 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.

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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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