Brand Management Assignment No 1
Zunair Ali Syed National College Administration & Economics
of
Business
Brand Management
Contents Company Company Introduct Introduction.... ion................ ......................... ......................... ........................ ........................ ........................ ......................... ................................ ................... 3 P&G Pakista Pakistan........ n.................... ......................... ......................... ........................ ........................ ........................ ......................... ......................... .......................... .............. 3 Facts about P&G Pakistan..................................................................................................... MI!!I"N
!#A#$M$N#...............................................................................................................
%ision %ision !tatement. !tatement............. ........................ ........................ ......................... ......................... ........................ ........................ ........................ ............................... ................... "rgani'ation
Port(o)io..............................................................................................................
$!#AB*I!+M$N#,.................................................................................................................. C"MPANC"MPAN- #-P$,........... #-P$,....................... ........................ ........................ ......................... ......................... ........................ ..................................... ......................... ......... BAN/!, BAN/!,............ ........................ ........................ ......................... ......................... ........................ ........................ ........................ ......................... ......................... .................... ........ Brand port(o)io port(o)io Pakistan....... akistan................... ........................ ........................ ......................... ......................... ........................ ................................... ....................... !0"# ANA*-!I! P&G............................................................................................................11 !#$NG+#!.. !#$NG+#!.............. ......................... ......................... ........................ ........................ ........................ ........................................................ ............................................ 11 0$A2N$!!$! 0$A2N$!!$!........... ....................... ......................... ......................... ........................ ........................ ........................ ......................... ................................. .................... 11 "PP"#NI#I$!..................................................................................................................11 #+$A#!............. #+$A#!........................ ....................... ........................ ........................ ........................ ....................... ....................... .................. ........... .......... .......... .......... ........ ... 11 Marketin Marketing g Mi4................ Mi4............................ ........................ ........................ ........................ ........................ ......................... ......................... ........................ ................... ....... 15 Product Product........... ....................... ......................... ......................... ........................ ........................ ........................ ......................... ......................... ........................ .................. ...... 15 Beauty Beauty and Grooming Grooming Brands......... Brands..................... ........................ ......................... ......................... ........................................... ............................... 15 +ea)t6 and 0e)) Being Brands.........................................................................................15 +ouse6o)d Care Brands...................................................................................................15 Price,... Price,............... ........................ ........................ ......................... ......................... ........................ ........................ ........................ ......................... .............................. ................. 15 P)ace....... P)ace................... ......................... ......................... ........................ ........................ ........................ ......................... ......................... ..................................... ......................... 13 Promoti Promotion....... on.................... ......................... ........................ ........................ ........................ ......................... ......................... ........................ ........................ .................. ...... 13 Competitors Competitors........... ....................... ........................ ........................ ......................... ......................... ........................ .................................................. ...................................... 13 !trategic management o( #ide and Arie)...............................................................................1 "7er7ie8 o( Arie) Position in Pakistan.................................................................................1 *aunc6 o( #ide in Pakistan..................................................................................................19 Porter:s Fi7e Forces Mode).....................................................................................................19 #6reat o( Ne8 $ntrants................... ........................ ............ ....................... ....................... ....................... ........... .......... ..... .......... .......... .......... ..... 19 Bargain Bargain Po8er Po8er o( !upp)ier.... !upp)ier................ ........................ ........................ ......................... ......................... ............................................. ................................. 1; Bargain Bargain po8er o( Consumers Consumers........... ........................ ......................... ........................ ........................ ............................................. ................................. 1; #6reat o( !ubstitute Products................. Products................. ........................ ............ ....................... ....................... ........................ .................... ............. ......... .... 1; 1 < Pa ge
Brand Management #6reat o( estab)is6ed ri7a)s.................................................................................. .............. 1; !6ou)d P&G Pakistan add =#ide /etergent> in its port(o)io or not?........................................1@ Pros and Cons o( )aunc6ing #ide in Pakistani Market..........................................................1@ Conc)usion............................................................................................................................. 5 e(erences........................................................................................................................... . 51
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Brand Management Company Introduction P&G Pakistan Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in Pakistan in 1991. Our goal was to become the finest global consumer goods compan operating locall in Pakistan. !o fulfill this goal, we are ser"ing Pakistani consumers with 1# high$qualit brands locall that stri"e to make e"erda li"es better. %ith commitment came growth, and in 199 we acquired a soap$manufacturing facilit sprawling se"en acres of land at 'ub, (alochistan. )n #**#, the plant tripled its soap$ manufacturing capacit with an in"estment of + million. )n #**, with an initial in"estment of about half a million -.. dollars, a P-/ facilit was set up with a production capacit of 0* million sachets of the water purifier annuall. !he P&G 'ub plant is the single plant that produces P-/ globall. !oda, the 'ub plant is equipped with state$of$the$art manufacturing technologies and qualit assurance processes and sstems, reflecting the compans "alues of safe, hgienic and ethical manufacturing practices.
P&G Pakistan headquarters are consistentl upgraded to the compans progressi"e "alues. )n"estments of +1 million and a recent +2**,*** in"estment ha"e taken place in the work$space en"ironment to date. !he P&G Pakistan head office toda hosts high$speed digital networks and ad"anced sstems and facilities.
3s a compan with "ast global e4perience, P&G alwas has belie"ed in the potential Pakistan has as a countr. ince 1959, the total amount in"ested b P&G Pakistan in assets, working capital and market de"elopment has e4ceeded /s 2 billion. )n addition, Procter & Gamble contributed /s .1 billion to the national e4chequer in the form of ta4es and duties during #**0 and #**2, increasing 1 percent o"er the pre"ious ear.
P&G has attracted outstanding indi"iduals since the da it began operations in Pakistan. !he compan emplos more than #06 people and creates more than ,*** 7obs indirectl in Pakistan, 99 percent of which are held b Pakistanis. 3ll this makes P&G a more locall focused compan. 3 < Pa ge
Brand Management
acts a!out P&G Pakistan •
Procter & Gamble started its operations in Pakistan in 1991.
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P&G Pakistan is headquartered in Karachi.
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P&G Pakistan has rein"ested o"er +1** million in Pakistan within the last 1# ears.
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P&G Pakistan has in"ested 2 million dollars o"er the last 0 ears in terms of capital, marketing and training.
•
P&G Pakistan has contributed close to 6 billion rupees to the Pakistani go"ernments re"enues o"er the last 0 ears in the form of sales ta4, customs and e4cise duties.
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P&G Pakistan creates more than ,*** 7obs in Pakistan. 998 of the 7obs that P&G Pakistan creates in Pakistan are held b Pakistanis.
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P&G Pakistan owns a sprawling 6$acre land manufacturing facilit at 'ub, (alochistan, which manufactures afeguard and ama soaps. 3 recent 0 million dollar in"estment has tripled the plants capacit.
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P&G Pakistan runs se"eral social marketing programs in the field of education and health. !hese programs benefit more than million people annuall.
MISSI"N S#A#EMEN# %e will pro"ide branded products and ser"ices of superior qualit and "alue that impro"e the li"es of the worlds consumers, now and for generations to come. 3s a result, consumers will reward us with leadership sales, profit and "alue creation, allowing our people, our shareholders and the communities in which we li"e and work to prosper.
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Brand Management $ision Statement :(e, and be recogni;ed as, the best consumer products and ser"ices compan in the world.<
"rgani%ation Portfolio ES#ABIS'MEN#( P&G is an 3merican Global orporation based on manufacturing a wide range of consumer goods. )t was born on October 1 156, headquartered in incinnati, Ohio, -3. 3s of #**5, P&G is the 2 th largest compan =arket capital, 1th largest b profit and 2th in >ortunes most admired companies list.
C"MPAN) #)PE( Public compan.
B*AN+S( P&G offers a "ariet of brands. P&G?s e4isting products grow through inno"ation and reno"ation while maintaining a balance in geographic acti"ities and product lines. !he ompans priorit is to bring the best and most rele"ant products to people, where"er the are, whate"er their needs, throughout their li"es.
Brand portfolio Pakistan P&G?s products are found in almost e"er product categor. >ollowing are the list of brands ser"ed in Pakistan@
Ariel >abric cleaning and care at its best.
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Brand Management
3 moisturi;ing bar soap enriched with perfumes of >rench inspiration that lea"es our skin feeling fresh, soft and sensual.
OlaA offers an arra of skin$care and personal cleansing products that pro"ide multiple benefits designed for women of all ages.
3lwasA offers great protection throughout our menstrual ccle to help ou li"e life to the fullest B without interruption.
%e stri"e to bring inno"ation, inspiration and en7oment to peoples e"erda li"es through our intelligentl inno"ated, intuiti"el designed and carefull crafted products.
restA toothpastes, toothbrushes, whiteners, flosses and rinses create healthier, brighter smiles e"er da.
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Brand Management
%hether oure monitoring a human heart, photographing outer space with an )=3CA camera or simpl taking a few snapshots at home, depend on DuracellA.
E3D3 is an international mark of lu4ur, elegance and qualit, a signature recogni;ed
around
the
globe
for
products
of
the
highest
standards.
!he E3D3 brand stands for happiness in life B Foie de Hi"reF emboding a "i"acious and glamorous woman, following her instinct and ambition to make the best of e"er moment.
)ntroducing GilletteA omplete kincareI B the first line of ad"anced dermatologist$tested skincare products made for men, b the people who know a mans face best. Gillette omplete is designed to deli"er the fi"e signs of noticeabl health$looking skin in 7ust 1 das
'ead & houlders helps eliminate scalp drness, itch and irritation, for hair thats 1**8 flake$free with regular use.
hange our look e"er season, e"er da or e"er bofriendJ !here?s an 'erbal Essences thats right for ou.
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Brand Management
HUGO
is
different.
HUGO
is
trendy.
HUGO
is
urban.
People who wear '-GO ha"e fun, en7o life and take risks. !he dont care about rules but li"e their life on their own wa. )ndependent, uncon"entional and modern. reati"e people who are on the mo"e. '-GO is the look and feel of ondon, (erlin and Lew Mork B the stle for indi"idualists.
!he world of (O is dri"en b success and achie"ementN a modern place, et defined b the classic "alues of elegance and stle.
3t Old piceA, were dedicated to staing up$to$date on emerging technologies that protect ou from odor and wetness, and keep ou smelling great. %ith our new scents and constantl e4panding line of products, its no surprise that Old pice is a top choice among gus.
>or more than 0* ears, Oral$(A has produced the highest$qualit dental hgiene products for ou, our famil and dental professionals worldwide. !rust the brand more dentists use themsel"es worldwide
>or all stages of de"elopment, PampersA has products to help our little one sta clean and comfortable. >rom diapers for babies to pants for toddlers, we"e got our child
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Brand Management co"ered B with great fit and a little fun, too. %hats more, parenting ad"ice, child$care tips and acti"it ideas can be found online from the e4perts at the Pampers Parenting )nstitute.
%hether ou want to fight fri;;, boost "olume, or add moisture for strength and smoothness, Pantene
has
a
Pro$Hitamin
formula
that
helps
hair
reach
its
potential.
hampoos, conditioners, stlers and treatments
)ts eas to fall in lo"e with the irresistible taste of PringlesA. (ut choosing a fla"orJ Low thats the hard part. %ith so man delicious "arieties, oull want to tr them all. Lo matter
which
one
ou
decide
to
pop,
one
things
for
sure
B
the
fun
wont stop
A products offer ou delicious filtered water at 1Q1*th of the cost o f bottled water.
afeguardA is the Lo. 1 antibacterial soap worldwide. afeguard is designed to
pro"ide
e4cellent
germ
protection
for
the
whole
famil. @ < Pa ge
Brand Management
HicksA pro"ides temporar relief of coughs and cold or flu smptoms.
Dun hill caters
to the needs of the discerning man, from formal and casual
menswear, to handcrafted leather goods through to fine men?s accessories, wrist watches, fragrance, cigarettes, writing instruments, cigarsR
P-=3 is the original Fsport lifestleF compan. (uilding on its core sports heritage, it combines the influences of lifestle, music and fashion.
P-=3 >ragrances capture this character b effortlessl 7umping boundaries B between sport and fashion, cultural influences and different design choices. %e pro"ide both colourful, trend propositions for the teen consumer and more sleek$looking products for oung adults
S,"# ANA)SIS- P&G S#*ENG'#S •
trong financial position
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arge scale of operations
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trong branding 1 < P a g e
Brand Management •
Product inno"ation
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De"eloping markets infrastructure
,EA.NESSES •
ustomer concentration
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ack of effecti"e distribution in some countries
"PP"*#/NI#IES •
%ide range of demograph
•
De"eloping markets
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•
Lew products 3cquisitions
#'*EA#S •
)ncrease in prices of raw materials
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-ncertainit in the economic conditions
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)ntense competion
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-nfa"orable business laws and political unstabilit
Marketing Mi0 !he marketing mi4 is a business tool used in marketing and b marketing professionals. !he marketing mi4 is often when determining a product or brand?s offering and often snonmous with P?s product , price , promotion and place.
Product P&G manufactures products in following categories. 11 < P a g e
Brand Management Beauty and Grooming Brands
Products in this categor include 3nna ui, >ekkal , Laomi ampbell, afeguard, >usion, Latural instinct, Lice and Eas, Gillette, Ola, Puma, Pert, Sest, co"er girl, Dunhill fragrances, 'erbal essences etc 'ealt1 and ,ell Being Brands
Products in this brand categor include 3lign, 3lwas, cope, Oral$(, rest, Pur, and Hicks etc. 'ouse1old Care Brands
(rands in this categor are 3ce, harmin, 3riel Down, Gain, !ide, enor, !empo, >air and man more. 3ll these products are produced with greater "ariet in between them. >or instance, afeguard which is soap has soaps of different "arieties like safeguard white and safeguard pink. P& G manufactured products are popular for their e4cellent packaging and design, features and strong brand name.
Price( •
P&G incorporated "alue pricing strateg. !he compan adopted this strateg b cutting its coupon, production and logistical cost b effecti"el increasing efficienc and it
•
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increased its ad"ertising b #* percent. %ithin the period of si4 ears this strateg resulted in higher brand loalt and stronger brand image. !he strateg of P&G was quite opposite to that of competitors and marketing practices on that time but resulted in greater success. Low das, P&G has the most effecti"e pricing of its brands and customer loalt is as enough that the are willing to pa e4tra for
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compan?s brands. P&G gi"es discount offers on its different products time to time but not frequentl as it e4perienced in #***s that coupon and discount onl decrease customer?s brand loalt.
Place •
P&G products are a"ailable almost all o"er the world. P&G distributes the products in
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about 1* countries to appro4imate fi"e billion consumers. D' courier is a ser"ice pro"ider to the compan through which it ensures its logistical efficienc.
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Brand Management •
ompan has manufacturing and distribution networks in all ma7or countries where it runs its operations like hina, -3, -K and )ndia.
Promotion •
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!his era is an era of ad"ertising. ompanies ha"e to do huge ad"ertisings to sell their products to the consumers. P&G has an effecti"e promotions strateg with an ad"ertising budget of appro4imatel 5.25 billion dollar in #**9 which makes it world?s number one ad"ertiser T=ikkelson,
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(arbara and Da"id, #**0U. P&G recei"ed 3d"ertising 'all of >ame 3ward in #*1*. !he compan uses tele"ision mass ad"ertising in particular, )nternet marketing and other marketing mediums to promote its brands.
Competitors P&G pro"ides largest and broadest portfolio of products in the household and personal care. )t has a industr worth of # billion dollar brands and generates 8 more re"enue than its closest competitor, -nli"er. P&G also maintains a relati"el high operating margin of #*.28 amongst its competitors. )ts ma7or competitors in Pakistan and %orld$wide are@ • • • •
-nile"er olgate$Palmoli"e ompan TU /eckitt (enckiser ocal products
Strategic management of #ide and Ariel O"er"iew of detergent market in Pakistan !otal =arket si;e b "olume V 12#,#11 tons !otal market si;e b "alue V 19 billion
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Brand Management Detergent market is growing b 0.68 for past # ears ompanies -nile"er P&G olgate Palmoli"e /est
( Holume 0*** 9*** 5**** #5***
( Halue 5 billion # billion 5 billion 1 billion
(rands 3riel urf E4cel (onus E4press !ide /est
( Holume #0*** 0*** 1**** 2*** *** 5*** 1***
( Halue 5 billion #1 billion 12 billion 11billion 0 billion 0 billion billion
=arket share -rban /ural
( Holume 6 #6
( Halue 69 #1
"2er2ie3 of Ariel Position in Pakistan Parent Company
Procter and Gamble
Category
'ome are brands W detergents
Sector
>=G
Tagline/ Slogan
irf aadein taa;a rakhe, daag nahi !he product has been in the market for man decades and has established it
USP
image as the product which can remo"e dirtiest and difficult to remo"e stain
STP 1 < P a g e
Brand Management
Premium product W People who want qualit and are read to pa more price Segment
for good qualit product
Target Group
-pper middle class and rich class of the societ Positioned b the special attributes it possesses of cleaning the dirtiest stains
Positioning
b micro cleaning sstem in the product
SWOT Analysis
1. %orld leader in detergent segment #. Xualit detergent W can remo"e the toughest stains . 'as made a strong base in the mind of users b "arious inno"ations in marketing Strengt
. 1st to introduce fragrances in the market 1. Harious lower priced products a"ailable in the market
Wea!ness
#. trong competitors 1. 06** crore detergent market #.(ig untapped rural market .an use its brand imprint in the minds of people to increase its customer
Opportunity
base 1.ounterfeit products in rural areas #.3ggressi"e price competition
Treats
.3mbush marketing harming the products reputation
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Brand Management
Competition
1. '-?s urf E4cel #.(onus Competitors
.(rite
aunc1 of #ide in Pakistan onsidering the launch of !ide in Pakistan lets anal;e the market with the help of Porter?s fi"e forces
Porter4s i2e orces Model !he ob7ecti"e of Porter >i"e >orces =odel is to beat the competition of market b o"ercoming the challenges offered b ri"al companies. !he fi"e forces model was analsis de"eloped b =ichael E. Porter in 1969. 3ccording to this model the fi"e forces that can affect the profits of compan and can help to determine the pre"ailing competition in market are@ • • • • •
Lew competition threat !hreat due to substitute ser"ices or products (argaining Power of suppliers (argaining Power of (uers !hreat of established ri"als
>rom the abo"e mentioned factors three are part of hori;ontal competition that are marketing threats of ri"als, new entrants and of substitute products. 'owe"er, bargain power of customers and suppliers are "ertical competition factors. Harious companies use this model as checklist for de"eloping an marketing strateg and also use :Halue hain< along with this model.
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Brand Management #1reat of Ne3 Entrants Due to the "ast range of Procter and Gamble products, it is "er hard for a new compan to come and participate. 'owe"er, the compan holds considerable shares of market and also has established reputations therefore, no new entrant can compete with the compan without hea" amount of capital and complete marketing strateg based on comprehensi"e research. !hough small companies with speciali;ation in particular products can offer competition to Procter and gamble in specific areas.
Bargain Po3er of Supplier !he bargain power of supplier is coped with mutuall dependent relationship of compan with its suppliers. Procter and Gamble request some good materials in order to produce products of good qualit and sell them at sensible price. ikewise, suppliers in market are alwas in search of reputed clients that can help them to generate good amount of re"enue. !he standard reputation maintained b Procter and Gamble offers ad"antage to the compan in this regard. !herefore, the pre"ailing crisis of credit and fluctuation in interest rates do not affect the terms of compan with suppliers.
Bargain po3er of Consumers 3s with the bargaining power that is alarmed b the costumers, Procter and Gamble can deal with it easil. !he wide range of household products produced b compan maintains the re"enue of compan e"en in time of recession. )t is due to the tpe of "arious products and the demands of products in e"erda life of consumers, that this compan plas an effecti"e role in reducing rate of recession in econom of Pakistan.
#1reat of Su!stitute Products 3lthough Procter & Gamble has to deal with the presence of "arious substitutes in market nowadas, howe"er qualit offered b P&G in its all products ensure the sustainabilit of compan in market all o"er the world. )n this regard compan has adopted "ariet of collaboration strategies with their customers in order to de"elop better understanding of consumer demands and their response.
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Brand Management !hese factors allow the industr to know about their buers that are the happ with Procter and Gamble products or will choose some other brand o"er Procter and Gamble. !he qualit in Procter and Gamble products is alwas maintained and it ensures costumer trustworthiness.
#1reat of esta!lis1ed ri2als Procter and Gamble is one of most successful compan offering qualit products in present times. >or more than half of a centur this compan is dominating the world of household products in different parts of world. !his success of compan is because of fle4ible attitude of compan towards modifing user requirements and shifting market conditions. !he successful marketing and business strategies of compan ensures growth in re"enue and constant reputation in world of business. )t is a buer oriented industr which is read to know about the requirement of their costumers sooner than an other. P&G is now familiar with the business war going in the market but it has also formed a business map to compete. %ith Porter?s fi"e forces model Procter and Gamble can successfull eradicate its ri"al companies and beat the co mpetition anwhere in world.
S1ould P&G Pakistan add 5#ide +etergent6 in its portfolio or not7 Keeping in "iew the :Porter?s fi"e forces model and the abo"e statistics ) think P&G Pakistan must include :!ide Detergent< in its portfolio. !here are number of reasons for this@ >irst of all if we look at the abo"e figures !ide has alread maintained its share in the market of Pakistan and eating the share of 3riel but the sale of !ide is not adding in the account of P&G Pakistan which is a complete loss in terms of figures to P&G Pakistan. o to a"oid the loss P&G Pakistan must stop the import of !ide and start its manufacturing in Pakistan b its own for its own benefit and that will also count in the econom of Pakistan econdl, !ide has alread maintained its image in the mind of Pakistanis so there is no need of e4tra ad"ertisement campaigns.
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Brand Management Pros and Cons of launc1ing #ide in Pakistani Market P*"4s • • • • •
)ncrease in the sales of P&G Pakistan ittle ad"ertisement needed 3"ailable in different forms , powder , liquid Perfumed forms Lo need to educate people about the brand
C"N4s • •
%ill eat up the share of 3riel (oth are high end products
Conclusion P&G Pakistan onl has 3riel to cater onl one segment. )t must bring :!ide< in the market to regain its position as =arket leader and to compete in the market.
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Brand Management
*eferences
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%herrit, onstance T#**2U. FDial 3grees to (u P&G Deodorant (randsF. Pierce =attie
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Public /elations Lew Mork blog. Der, Da"isN >rederick Dal;ell, /owena Olegario T#**U. /ising !ide@ essons from 120
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Mears of (rand (uilding at Procter & Gamble. 'ar"ard (usiness chool Press. =ikkelson, (arbara and Da"id. T#**0U. !ampa4 Pearl, nopes.com. 'orstman, (arr = T#**0U. Fohn G. 'ankus@ 'e rebuilt P&G W and cit, tooF. !he
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incinnati Post.
[email protected]
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