Safeguard Marketing PlanDocument Transcript1. Principles of Marketing MARKETING REPORT ON P&GS SafeguardINSTITUTE OF BUSINESS & TECHNOLOGY (BIZTEK)2. TOPICMARKETING ANALYSIS OF SAFEGUARD BY P&G3. Preface: This report is based on Safeguard Pakistan, a successful and popular soap brand of P&G. it focuses on the different aspects relating to marketing ofSafeguard in the Pakistan market. The reasons of choosing Safeguard as theobject of our report are its successful marketing strategies and increasing share growth rate in the Pakistan soap industry. This report provides an insight on the marketing philosophies, marketing tools and different marketing strategies used by Safeguard and its mother company P&G, with all information gathered from reliable sources. This report also includes a brief introduction of P&G and its executivesummary aswell as an interview with the marketing manager of Safeguard. We have concluded our report with our own personal suggestions and recommendations for the improvement of our selected brand, based on our marketing knowledge and assessments.4. Acknowledgment Before commencing this report on marketing, we would like to thankalmighty ALLAH. We would also like to acknowledge the contributions ofsome people, without whose help and assistance this report wouldnt have been possible. We extend or heartiest gratitude to our course instructor, Ms.Tahira Yasmeen, whose able guidance and assistance showed us the right path to approach this report. We would also like to thank the brand manager of Safeguard, Mr.Adnan Kisat for sharing his precious time and knowledge with us.We are also indebted to all the shopkeepers who contributed their knowledge about the distribution, prices and other issues regarding Safeguard to this report. Lastly, we would like to thank our parents and all our well-wishers, whose prayers made this report possible. We dedicate this report to all those people who contributed to this report.5. TABLE OF CONTENTS: CONTENTS PAGE NO.EXECUTIVE SUMMARY6-7 COMPANY AND MARKETING PHILOSOPHIES.8-14 MARKETING MIX15-17 EXTERNAL AND INTERNAL FACTORS AFFECTING THE BRAND...18-20 PRODUCT CLASSIFICATION, PRODUCT LINE&MIX, PRODUCT LIFE CYCLE..21-24 BRAND POITIONING AND BRAND STRATEGY25 CHANNEL OF DISTRIBUTION..26 TOOLS OF PROMOTION MIX USED BY P&G FOR SAFEGUARD27 CURRENT ADVERTISING CAMPAIGN...28-32 INTERVIEW WITH THEW MARKETING MANAGER OF SAFEGUARD33-34 SUGGESTIONS AND RECOMMENDATION35 REFERENCE.6. EXECUTIVE SUMMARYThe summary of our report is given below: P&G Pakistan is a subsidiary of Procter and Gamble, International.it started operating in Pakistan in 1991. It is offering 4 different product lines in Pakistan including, Personal & Beauty products, House & Home products, Health & Wellness products and Baby & Family products. It is a company following the marketing concept. Safeguard Pakistan, was launched in 1995 as a brand of P&G, Pakistan. Safeguard is an anti bacterial soap It is available in different flavors and sizes Its pricing approach is value based It is widely distributed and is distributed through an indirect channel It is highly promoted through advertisement, sales promotion and Public Relations. It is positioned as a high-value antibacterial soap It is classified as a fast moving consumer good or FMCG. Its brand strategy is line extension strategy It is currently in the growth stage of the product life cycle The strengths of Safeguard are its advertising effectiveness, adequate financial resources, product innovation skills, market leadership and experience The weakness of Safeguard is its higher prices relative to its competing products7. The opportunities for Safeguard are market penetration, market development and diversification. The threats posed to Safeguard are increasing competition and bargain power of suppliers and consumers. The current advertising campaign of Safeguard is Commander Safeguard The target market of Safeguard includes mothers and professional doctors. Safeguard does its heavy advertising through television in which its cartoon films on Commander Safeguard are very popular. Safeguard has also started off with its school education programs to have a direct contact with the children in order to create awareness of germs and the ways to prevent from them. They advertise their product on billboards, which can be found in Pakistan across Karachi, Lahore and Islamabad. Moreover, they also advertise their product in newspaper and magazines. They have their annual exhibition at Expo Centre. They also conduct a weekly radio programme on FM 101 where children can talk to Commander Safeguard. They also advertise through electronic media, their website is www.commandersafeguard.com. Commander Safeguard is its lucky mascot due to which most of the children across Pakistan have been its major audience.8. Procter & Gamble9. ABOUT THE COMPANY: P&G-BACKGROUNDProcter and Gamble Corporation is the leading consumer goods company with amission to improve the lives of consumers wherever it operates.P&G is an International Company reaching out to almost the entire worldpopulation 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 theglobe in more than 80 different countries, including numerous manufacturing sitesand 18 R&D-technical centers. P&G is an internationally owned company withpublicly traded shares, currently owned by over one million shareholders fromaround 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 andrespects individuals regardless of race, color, religion, gender, age, national origin,citizenship or disability, and actively promotes diversity within its organization aswell as in its business operations.10. P&G PAKISTAN-A BRIEF HISTORY:Procter & Gamble started its operations in Pakistan in 1991 with the goal ofbecoming the finest global local consumer goods company operating in Pakistan.With commitment came growth, and in 1994 we acquired a soap-manufacturingfacility, a sprawling 7-acre land at Hub, Balochistan. Over the past nine years, theplant achieved state-of-art manufacturing technologies and quality assuranceprocesses. With a recent strategic investment of 5 million dollars, the bar soapproduction capacity jumped three-fold.As a company we have always believed in the potential Pakistan has as a countryand a nation to develop and excel. No wonder P&G Pakistan, within the last 12years, has reinvested over $100 million in Pakistan and has contributed close toseven billion rupees to the Pakistani governments revenues over the last 5 years inthe form of sales tax, customs and excise duties. That is also why Pakistanis hold99% of the jobs that P&G Pakistan creates in Pakistan. All this makes P&G a morelocally involved company than many companies actually headquartered inPakistan.Since the inception of P&G Pakistan, we have always committed ourselves tobusiness growth, consumer satisfaction and community development. Thanks to ourcommitted base of employees, customers, vendors, stakeholders, and above all,consumers, today we are one of the most thriving operations in Pakistan.11. Proctor & Gambles (PG) Mission StatementPURPOSEWe will provide branded products and services of superior quality and value that improvethe lives of the worlds consumers. As a result, consumers will reward us with leadershipsales, profit, and value creation, allowing our people, our shareholders, and thecommunities in which we live and work to prosper.VALUESP&G is its people and the values by which we live.We attract and recruit the finest people in the world. We build our organization fromwithin, promoting and rewarding people without regard to any difference unrelated toperformance. We act on the conviction that the men and women of Procter & Gamblewill always be our most important asset.Leadership We are all leaders in our area of responsibility, with a deep commitment to deliver leadership results. We have a clear vision of where we are going. We focus our resources to achieve leadership objectives and strategies. We develop the capability to deliver our strategies and eliminate organizational barriers.Ownership We accept personal accountability to meet our business needs, improve our systems, and help others improve their effectiveness. We all act like owners, treating the Companys assets as our own and behaving with the Companys long-term success in mind.Integrity We always try to do the right thing. We are honest and straightforward with each other. We operate within the letter and spirit of the law. We uphold the values and principles of P&G in every action and decision. We are data-based and intellectually honest in advocating proposals, including recognizing risks.12. Passion for Winning We are determined to be the best at doing what matters most. We have a healthy dissatisfaction with the status quo. We have a compelling desire to improve and to win in the marketplace.Trust We respect our P&G colleagues, customers, and consumers, and treat them as we want to be treated. We have confidence in each others capabilities and intentions. We believe that people work best when there is a foundation of trust.OUR PRINCIPLESWe Show Respect for All Individuals We believe that all individuals can and want to contribute to their fullest potential. We value differences. We inspire and enable people to achieve high expectations, standards, and challenging goals. We are honest with people about their performance.The Interests of the Company and the Individual Are Inseparable We believe that doing what is right for the business with integrity will lead to mutual success for both the Company and the individual. Our quest for mutual success ties us together. We encourage stock ownership and ownership behavior.We Are Strategically Focused in Our Work We operate against clearly articulated and aligned objectives and strategies. We only do work and only ask for work that adds value to the business. We simplify, standardize, and streamline our current work whenever possible.Innovation Is the Cornerstone of Our Success We place great value on big, new consumer innovations.13. We challenge convention and reinvent the way we do business to better win in the marketplace.We Are Externally Focused We develop superior understanding of consumers and their needs. We create and deliver products, packaging, and concepts that build winning brand equities. We develop close, mutually productive relationships with our customers and our suppliers. We are good corporate citizens.We Value Personal Mastery We believe it is the responsibility of all individuals to continually develop themselves and others. We encourage and expect outstanding technical mastery and executional excellence.We Seek to Be the Best We strive to be the best in all areas of strategic importance to the Company. We benchmark our performance rigorously versus the very best internally and externally. We learn from both our successes and our failures.Mutual Interdependency Is a Way of Life We work together with confidence and trust across business units, functions, categories, and geographies. We take pride in results from reapplying others ideas. We build superior relationships with all the parties who contribute to fulfilling our Corporate Purpose, including our customers, suppliers, universities, and governments.14. ABOUT THE BRAND Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining"health & hygiene" in Pakistan. It is an anti-bacterial soap thatprovides germ protection for twice as long as ordinary soaps making itthe doctors number 1 recommended choice throughout the world. Inaddition to germ protection, it also caters to various other needs such asbeauty care and protection against sweat odor.15. MARKETING MIXSafeguard is one of the most popular soap brands of Pakistan, which is popular withpublic because of its appropriate marketing strategies and an excellent marketing mix.Discussed below are the tools of marketing mix, used by Safeguard, to satisfy the needsand wants of its target market and for maintaining its competitive advantage over itscompetitors.PRODUCT:As defined by the company, Safeguard is an anti-bacterial soap, based on clinical testing,that provides both effective germ removal and deodorant protection. It provides effectivegerm removal, yet is mild enough for the whole family.Given below are its product attributes:Variety: it is available in a variety of colors and flavors like aloe Vera, sandalwood,vitamin-e, menthol, lemon, beige, pure white, herbal (colors)It is also available in two different sizes of 75grams and 125 grams with prices of Rs.14and Rs.21 respectively.Quality: Safeguard is a high quality anti bacterial soap, which is approved by the PMA(Pakistan Medical Association) and is clinically tested.Features: it offers germ removal and deodorant protection and is available in eye-catching colors with pleasant fragrances.Brand name: its brand name, Safeguard, promises protection against germs anddiseases.Packaging: it is packaged in a well-designed pack with a shield placed in the center,which highlights its effectiveness against germs. Its pack also contains a certification bythe PMA to ensure its good quality.16. PRICE:The pricing approach used by Safeguard is value-based and the price-quality strategy ispremium strategy, as it is available at a higher price than other antibacterial soaps like,treat and lifebuoy because of its higher quality.Its pricing is done with respect to its product line, with different sizes of soap bars havingdifferent prices.Given below is the list of prices for different sizes of soaps offered by Safeguard: Size Price 125 grams Rs. 75 grams Rs.Place:It is a widely distributed soap, which is available in nearly all cities of Pakistan. it isdistributed through a complex distribution channel and is sold through retail stores atconvenient locations and is easily available.17. Promotion:It is a highly promoted product which is promoted through advertising, sales promotionand public relations.It is advertised through electronic media and print media, for example; the CommanderSafeguard advertisement is aired on TV and radio and is printed in newspapers andmagazines and it is also advertised through billboards.For sales promotion, Safeguard has its own website by the name of CommanderSafeguard.com where they have lucky draws and other attractions for kids.Safeguard also has its own public relations department where any queries,comments orcomplaints from the public are registered. It was also involved in raising funds for theearthquake victims and also started a safai program in schools all over the country.Currently, Safeguards mother company, P&G, is involved in the Sehat-O-Safaicampaign to educate school children about the importance of personal hygiene, especiallyhand washing with soap.18. EXTERNAL AND INTERNAL FACTORSThe external and internal factors in a companys marketing environment form itsstrengths, weaknesses, opportunities and threats. a company has control over its internalenvironment which consists of the company, suppliers, consumers, marketingintermediaries, competitors and public. So, any advantage that a company gains bycontrolling any of these factors is considered as its strength. Similarly, failure to controlany one of these factors results in a weakness for the company.The external factors facing a company like, demographic factors, technological factorsetc., cannot be controlled by the company and pose threats as well, as opportunities forthe company. In Safeguards marketing environment, its strengths, weaknesses, opportunities andthreats are determined by the following factors: SWOT ANALYSIS OF SAFEGUARDSTRENGTHS: Adequate financial resources Product innovation skills Acknowledged market leader Advertising effectiveness Ahead on experience curveAdequate Financial resources:One of the strengths of Safeguard is its adequate financial resources. Because of being abrand of P&G, it has sufficient funds to finance its marketing strategies and to bear lossesProduct Innovation Skills:Another strength of Safeguard are its product innovation skills. It has a long product linewith many variants and has added many features to its products since it was introduces in1995.Acknowledged market leader:Safeguard has a high market share and is the leader of anti-bacterial soap industry whichis its biggest strength.Advertising Effectiveness:The advertising campaigns launched by Safeguard have been very effective and havepositioned it well in the minds of its consumers.19. Ahead on experience curve:Safeguard was the first brand of good-quality anti-bacterial soap that was launched inPakistanWEAKNESSES: PricePrice:The main weakness of Safeguard is its higher prices relative to its competing products. A125 grams Safeguard soap bar is available for Rs.21 whereas the same size bar oflifebuoy is available for Rs.13.OPPORTUNITIES: Serve additional customers Enter new market segment Diversify into related productsServe additional customers:Safeguard has various opportunities for growth in the market, which include theopportunity of serving additional customers through market penetration. Safeguard canincrease its market penetration by promoting its use in hospitals and such other placeswhere anti-bacterial soaps can be used.Enter new market segment:Safeguard also has the opportunity of entering a new market segment by increasing itsproduct line horizontally. It can modify its anti-bacterial soap into a beauty soap whichpromises germ protection and can enter in the beauty soap market.Diversity into Related products:Safeguard can also introduce a new product line of liquid cleaners and other relatedproducts to increase its growth.20. THREATS: Increasing competition Growing bargain power of customers & suppliersIncreasing competition:The threats posed to Safeguard from the external environment include increasingcompetition. Safeguard is facing increasing competition from other anti-bacterial soapbrands like lifebuoy, treat and dettol.Lifebuoy has launched an aggressive promotional campaign against Safeguard by thename of Lifebuoy Germ busters which is based on a similar format as CommanderSafeguard campaign launched by Safeguard. They have used celebrity endorsement intheir campaign with Inzamam-ul-Haq against Safeguards celebrity endorsement ofShahid Afridi. Lifebuoy is attacking the brand positioning of Commander Safeguard bycalling it a fake super hero.Growing bargain power of suppliers & customers:With the increase in the supply of anti-bacterial soaps in the market, another threat that isposed to Safeguard is the growing buying power of its suppliers and customers.21. PRODUCT CLASSIFICATION Safeguard is a soap brand and is therefore classified as a consumer good, which falls in the category of convenience goods or FMCG (fast moving consumer good). Because of being a convenience good that is purchased frequently with little or no planning, it isavailable at an affordable price, is promoted heavily through advertising, sales promotion and PR, is distributed widely and is available at convenient locations. Types of consumer products Convenience goods Shopping goods Is a convenience good Specialty goods Unsought goods22. PRODUCT LINE & MIXSafeguard is a brand of P&G (Procter and Gamble, Pakistan). P&G offers a varietyof different product lines in Pakistan with different brand names. Given below is alist of the product mix offered by P&G to the Pakistan market and the brandsoffered in each product line.The products of P&PersonalG can be categorized in following areas: & HouseBeauty & HealthHome & BabyWellness & Pet NutritionFamily & CarePersonal & Beauty:1.Antiperspirants/Deodorants a. Old Spice2.Cosmetics a. Cover Girl3.Hair Care a. Pert Plus b. Pantene c. Head & Shoulders d. Herbal Essences4.Personal Cleansing a. Camay b. Safeguard5.Prestige Fragrances a. Hugo Boss23. 6.Skin Care a. Olay b. Gillette Complete SkincareHouse & Home Products:1. Laundry: a. Tide b. Arial 2. Snacks & Beverages: b. PringlesHealth & Wellness:1.Health Care: a. PUR b. Vicks2. Oral Care: a.Crest b. Oral-BBaby & Family: 1.Baby Care a. Pampers24. PRODUCT LINE OF SAFEGUARDSafeguard is available in different flavors and sizes, which make up its product line. Theproduct line of Safeguard in terms of both flavors and sizes is given below:PRODUCT LINE (FLAVORS):1.Pure White2.Aloe Vera3.Lemon4.Herbal5.Menthol6.Sandalwood7.Vitamin EPRODUCT LINE (SIZES): 1. 125 GRAMS2. 75 GRAMSPAKSIA Variants 75g 125g Pure White 14 21 Aloe Vera 14 21 Lemon 14 21 Herbal 14 21 Menthol 21 Sandalwood 21 Vitamin E 14 2125. PRODUCT LIFE CYCLE-PLCSales growth Growth Introduction 1995 2006 PRODUCT LIFE CYCLE OF SAFEGUARDINTRODUCTION:According to the product life cycle, the introduction stage of Safeguard falls in the year1995 when it was introduced in the Pakistan market and its sales were very low.GROWTH: The growth stage for Safeguard started around the year 1998 and it has continued sincethen. Around the year 2000, the sales growth of Safeguard was approaching the maturitylevel but due to some modifications in the product attributes and good promotionstrategies, Safeguard was able to maintain its sales growth and is still reaping the benefitsof its timely actions.26. BRAND POSITIONINGThe brand positioning of Safeguard is that of a good quality anti-bacterial soap. It ispositioned in the consumers mind as a reliable soap brand that protects them againstgerms and diseases, provides cleanliness and helps you stay healthy.Its positioning is benefit focused that highlights its brand attributes. But, Safeguard hasnow shifted its positioning focus to beliefs and values by projecting itself as a Pakistanloving and cleanliness giving brand.Positioning statement: Jaraseem se hifaazat, din raat lagatarThe positioning of Safeguard is reflected by this positioning statement that emphasizes onthe 24-hour protection, from germs and diseases, provided by Safeguard. It alsohighlights the efficiency of Safeguard that it keeps fighting germs all day and gives youprotection for a longer period than other anti-bacterial soaps. BRAND STRATEGYThe brand strategy of P&G for its brand, Safeguard, is line extension strategy. it isavailable in a variety of flavors like pure white, herbal, sandalwood, vitamin-e, mentholand Aloe Vera. Besides this, it is also offered in two different sizes of 125 grams and 75grams.27. CHANNEL OF DISTRIBUTIONSafeguard is a fast moving consumer good or FMCG that is widely distributed and isavailable at convenient locations. Therefore, the channel of distribution through which itis distributed is indirect. So, it has to pass through different channel levels orintermediaries before reaching the final consumer.Given below is a figure depicting the channel of distribution of Safeguard. Channel of distribution: Safeguard Manufacturer Wholesaler Jobber Retailer ConsumerSafeguard is distributed through 4 different intermediaries before reaching the finalconsumer. The manufacturer distributes it to the wholesaler who passes it forward to thejobber. From the jobbers, it is distributed to the retailers and then it finally reaches thefinal consumer.28. TOOLS OF PROMOTION MIX USED BY P&G FOR SAFEGUARDThe various promotion tools used by P&G for Safeguard are the following: Advertising Sales promotion Public relationsAdvertising:Safeguard is advertised through both print and electronic media. Safeguard commercialsare aired on TV and radio (electronic media) and its advertisements are also printed innewspapers and magazines (print media). Besides this, one can also find Safeguardbillboards placed on various roads across the country.Sales promotion:Another tool used by P&G for promoting Safeguard is sales promotion. For this,Safeguard has its own website which offers various attractions for children (target marketof Safeguard), including lucky draws. Besides this, Safeguard also sponsors differentcontests for children in weekly newspaper magazines, where children can enter a contestby sending a wrapper of Safeguard along with other details.Public relation:Fro public relation, P&G has its own website which offers complete detail about itsproducts and full contact information for the public.P&G and Safeguard are also involved in many societal activities such as raising funds forthe earthquake victims. Also, Safeguard conducted numerous campaigns, for promotingcleanliness and patriotism, in many schools across Pakistan.29. CURRENT ADVERTISING CAMPAIGNThe current advertising campaign of Safeguard is, Commander Safeguard. Throughthis campaign, the company has tried to project intangible germs as tangible charactershaving names like kachra rani, dirtoo, ghunsunna and algham who spread germs anddiseases in the entire country and are targeted and killed by Safeguard, projected asCommander Safeguard who is a super hero.The Commander Safeguard cartoon documentary is shown on different TV channels andis very popular with kids. Besides being aired on TV, Commander Safeguards story isalso aired on radio.Commander Safeguard story strips are also published in certain newspapers (for children)and he has become a household name.The main idea communicated through the Commander Safeguard advertisement is itshigh-efficiency germ removal action and quality. It is a persuasive advertisement thatencourages kids to fight germs by using Safeguard. International Advertising Limited is its advertising agency.30. THE CHARACTERS Commander SafeguardAlgham Dirtoo Ghunsunna Kachra rani31. CHARACTER DESCRIPTION:Commander Safeguard:Commander Safeguard is a super hero from the planet Trico. He is the best friend of allkids and the worst enemy of all germs. He is good looking has a great sense of humor andnever panics in any circumstance. in short he is James bond, Zorro and batman all rolledinto one. his tools include Germishield which protects against germs day through night,non- stop and a sudden gun that shoots TCC to kill germs.ALGHAM:Algham is a large clumsy mass of green blob. It has specialized in spreading cold virusand drips slimy waste from his body. he throws his green blob in the form of lethal splitballs at his enemies. he is the most dangerous of all germs and has been appointed as ashunchman by dirtoo and has also been named as his succesor.DIRTOO:Dirtoo is the king of all germs. He speaks in a low menacing voice and is a control freak.he believes that humans are inferior human beings and dreams that one day germs willrule the world and he will rule over all of them. When he laughs in an evil way, millionsof dirtoos emancipate from his body. he hates Commander Safeguard because he alwaysfoils his plan of making kids sick.GHUNSUNNA:Ghunsunna is Dirtoos chief spy. He specializes in spreading coughs among children. Heleads the spy brigade which keeps an eye on the happenings in the human areas andissues regular reports directly to dirtoo.he is a stammering little creature who has thetendency to panic and run at the first sign of danger. he has never gotten beaten in a battlebecause he has never fought one.KACHRA RANI:Kachra rani is an immortal germ monster created from all the rubbish and filth in theworld. She specializes in spreading infection in wounds. She lives in litter bins and getsher strength from trash and filth. She idolizes dirtoo for whom she is willing to doanything. She hates kids who stay clean and follow hygiene habits because she cannotharm them32. Success:The commander safeguard advertising campaign has been very successful and hasaccomplished all its advertising objectives. it has positioned it as a high performancegerm removal soap that provides cleanliness and keeps people healthy.It has also created awareness amongst people about the dangers and threats posed bygerms and the projection of germs as tangible characters through this campaign has alsobecome a huge hit. Commander Safeguard has been established as childrens favoritesuper hero, so, dont be surprised if you hear children singing,Pak pak Pakistan, saafsaaf Pakistan har pal har dam azam hamara, safeguard Pakistan