Brand Management
Assignment No 1
Zunair Ali Syed
National College of Business Administration & Economics
Brand Management
Assignment No 1
ContentsCompany Introduction.................................................................................................................................................3
P&G Pakistan............................................................................................................................................................3
Facts about P&G Pakistan........................................................................................................................................4
MISSION STATEMENT..................................................................................................................................................4
Vision Statement..........................................................................................................................................................5
Organization Portfolio..................................................................................................................................................5
ESTABLISHMENT:.....................................................................................................................................................5
COMPANY TYPE:..........................................................................................................................................................5
BRANDS:.......................................................................................................................................................................5
Brand portfolio Pakistan..........................................................................................................................................5
SWOT ANALYSIS- P&G................................................................................................................................................11
STRENGHTS............................................................................................................................................................11
WEAKNESSES.........................................................................................................................................................11
OPPORTUNITIES.....................................................................................................................................................11
THREATS.................................................................................................................................................................11
Marketing Mix............................................................................................................................................................12
Product..................................................................................................................................................................12
Beauty and Grooming Brands............................................................................................................................12
Health and Well Being Brands............................................................................................................................12
Household Care Brands......................................................................................................................................12
Price:......................................................................................................................................................................12
Place.......................................................................................................................................................................13
Promotion..............................................................................................................................................................13
Competitors...............................................................................................................................................................13
Strategic management of Tide and Ariel....................................................................................................................14
Overview of Ariel Position in Pakistan....................................................................................................................15
Launch of Tide in Pakistan......................................................................................................................................17
Porter’s Five Forces Model........................................................................................................................................17
Threat of New Entrants..........................................................................................................................................17
Bargain Power of Supplier......................................................................................................................................18
Bargain power of Consumers.................................................................................................................................18
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Threat of Substitute Products................................................................................................................................18
Threat of established rivals....................................................................................................................................18
Should P&G Pakistan add “Tide Detergent” in its portfolio or not?...........................................................................19
Pros and Cons of launching Tide in Pakistani Market.............................................................................................19
Conclusion................................................................................................................................................................. 20
References.................................................................................................................................................................21
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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 company operating locally in
Pakistan. To fulfill this goal, we are serving Pakistani consumers with 12 high-quality brands
locally that strive to make everyday lives better.
With commitment came growth, and in 1994 we acquired a soap-manufacturing facility
sprawling seven acres of land at Hub, Balochistan. In 2002, the plant tripled its soap-
manufacturing capacity with an investment of $3 million. In 2004, with an initial investment of
about half a million U.S. dollars, a PUR facility was set up with a production capacity of 50
million sachets of the water purifier annually. The P&G Hub plant is the single plant that
produces PUR globally. Today, the Hub plant is equipped with state-of-the-art manufacturing
technologies and quality assurance processes and systems, reflecting the company's values of
safe, hygienic and ethical manufacturing practices.
P&G Pakistan headquarters are consistently upgraded to the company's progressive values.
Investments of $1 million and a recent $600,000 investment have taken place in the work-space
environment to date. The P&G Pakistan head office today hosts high-speed digital networks and
advanced systems and facilities.
As a company with vast global experience, P&G always has believed in the potential Pakistan
has as a country. Since 1989, the total amount invested by P&G Pakistan in assets, working
capital and market development has exceeded Rs 6 billion. In addition, Procter & Gamble
contributed Rs 3.1 billion to the national exchequer in the form of taxes and duties during 2005
and 2006, increasing 13 percent over the previous year.
P&G has attracted outstanding individuals since the day it began operations in Pakistan. The
company employs more than 257 people and creates more than 4,000 jobs indirectly in Pakistan,
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99 percent of which are held by Pakistanis. All this makes P&G a more locally focused
company.
Facts about P&G Pakistan
Procter & Gamble started its operations in Pakistan in 1991.
P&G Pakistan is headquartered in Karachi.
P&G Pakistan has reinvested over $100 million in Pakistan within the last 12 years.
P&G Pakistan has invested 63 million dollars over the last 5 years in terms of capital,
marketing and training.
P&G Pakistan has contributed close to 7 billion rupees to the Pakistani government's
revenues over the last 5 years in the form of sales tax, customs and excise duties.
P&G Pakistan creates more than 4,000 jobs in Pakistan. 99% of the jobs that P&G
Pakistan creates in Pakistan are held by Pakistanis.
P&G Pakistan owns a sprawling 7-acre land manufacturing facility at Hub, Balochistan,
which manufactures Safeguard and Camay soaps. A recent 5 million dollar investment has
tripled the plant's capacity.
P&G Pakistan runs several social marketing programs in the field of education and
health. These programs benefit more than 3 million people annually.
MISSION STATEMENT
We will provide branded products and services of superior quality and value that improve the
lives of the world's consumers, now and for generations to come. As a result, consumers will
reward us with leadership sales, profit and value creation, allowing our people, our shareholders
and the communities in which we live and work to prosper.
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Vision Statement
“Be, and be recognized as, the best consumer products and services company in the world.”
Organization Portfolio
ESTABLISHMENT:
P&G is an American Global Corporation based on manufacturing a wide range of consumer
goods. It was born on October 31 1837, headquartered in Cincinnati, Ohio, USA.
As of 2008, P&G is the 6th largest company Market capital, 14th largest by profit and 6th in
Fortunes most admired companies list.
COMPANY TYPE:
Public company.
BRANDS:
P&G offers a variety of brands. P&G’s existing products grow through innovation and
renovation while maintaining a balance in geographic activities and product lines.
The Company's priority is to bring the best and most relevant products to people, wherever they
are, whatever their needs, throughout their lives.
Brand portfolio Pakistan
P&G’s products are found in almost every product category. Following are the list of brands
served in Pakistan:
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Ariel Fabric cleaning and care at its best.
A moisturizing bar soap enriched with perfumes of French inspiration that
leaves your skin feeling fresh, soft and sensual.
Olay® offers an array of skin-care and personal cleansing products that provide multiple benefits
designed for women of all ages.
Always® offers great protection throughout your menstrual cycle to help you
live life to the fullest — without interruption.
We strive to bring innovation, inspiration and enjoyment to people's
everyday lives through our intelligently innovated, intuitively designed and carefully crafted
products.
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Crest® toothpastes, toothbrushes, whiteners, flosses and rinses create healthier, brighter smiles
every day.
Whether you're monitoring a human heart, photographing outer space with
an IMAX® camera or simply taking a few snapshots at home, depend on Duracell®.
ESCADA is an international mark of luxury, elegance and quality, a
signature recognized around the globe for products of the highest standards.
The ESCADA brand stands for happiness in life — "Joie de Vivre" embodying a vivacious and
glamorous woman, following her instinct and ambition to make the best of every moment.
Introducing Gillette® Complete Skincare™ — the first line of advanced dermatologist-tested
skincare products made for men, by the people who know a man's face best. Gillette Complete is
designed to deliver the five signs of noticeably healthy-looking skin in just 14 days
Head & Shoulders helps eliminate scalp dryness, itch and irritation, for hair
that's 100% flake-free with regular use.
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Change your look every season, every day or every boyfriend? There’s an Herbal
Essences that's right for you.
HUGO is different. HUGO is trendy. HUGO is urban.
People who wear HUGO have fun, enjoy life and take risks. They don't care about rules but live
their life on their own way. Independent, unconventional and modern. Creative people who are
on the move. HUGO is the look and feel of London, Berlin and New York — the style for
individualists.
The world of BOSS is driven by success and achievement; a modern place,
yet defined by the classic values of elegance and style.
At Old Spice®, we're dedicated to staying up-to-date on emerging technologies that
protect you from odor and wetness, and keep you smelling great. With our new scents and
constantly expanding line of products, it's no surprise that Old Spice is a top choice among guys.
For more than 50 years, Oral-B® has produced the highest-quality dental
hygiene products for you, your family and dental professionals worldwide. Trust the brand more
dentists use themselves worldwide
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For all stages of development, Pampers® has products to help your little one
stay clean and comfortable. From diapers for babies to pants for toddlers, we've got your child
covered — with great fit and a little fun, too. What's more, parenting advice, child-care tips and
activity ideas can be found online from the experts at the Pampers Parenting Institute.
Whether you want to fight frizz, boost volume, or add moisture for strength and smoothness,
Pantene has a Pro-Vitamin formula that helps hair reach its potential.
* Shampoos, conditioners, stylers and treatments
It's easy to fall in love with the irresistible taste of Pringles®. But choosing a
flavor? Now that's the hard part. With so many delicious varieties, you'll want to try them all. No
matter which one you decide to pop, one thing's for sure — the fun
won't stop!
® products offer you delicious filtered water at 1/10th of the cost of bottled water.
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Safeguard® is the No. 1 antibacterial soap worldwide. Safeguard is designed
to provide excellent germ protection for the whole family.
Vicks® provides temporary relief of coughs and cold or flu symptoms.
Dunhill 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, cigars…
PUMA is the original "sport lifestyle" company. Building on its core sports
heritage, it combines the influences of lifestyle, music and fashion.
PUMA Fragrances capture this character by effortlessly jumping boundaries — between sport
and fashion, cultural influences and different design choices. We provide both colourful, trendy
propositions for the teen consumer and more sleek-looking products for young adults
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SWOT ANALYSIS- P&G
STRENGHTS
Strong financial position
Large scale of operations
Strong branding
Product innovation
Developing markets infrastructure
WEAKNESSES
Customer concentration
Lack of effective distribution in some countries
OPPORTUNITIES
Wide range of demography
Developing markets
New products
Acquisitions
THREATS
Increase in prices of raw materials
Uncertainity in the economic conditions
Intense competion
Unfavorable business laws and political unstability
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Marketing Mix
The marketing mix is a business tool used in marketing and by marketing professionals. The
marketing mix is often when determining a product or brand’s offering and often synonymous
with 4 P’s product , price , promotion and place.
Product
P&G manufactures products in following categories.
Beauty and Grooming Brands
Products in this category include Anna Sui, Fekkal , Naomi Campbell, Safeguard, Fusion,
Natural instinct, Nice and Easy, Gillette, Olay, Puma, Pert, Zest, cover girl, Dunhill fragrances,
Herbal essences etc
Health and Well Being Brands
Products in this brand category include Align, Always, Scope, Oral-B, Crest, Pur, and Vicks etc.
Household Care Brands
Brands in this category are Ace, Charmin, Ariel Downy, Gain, Tide, Lenor, Tempo, Fairy and
many more. All these products are produced with greater variety in between them. For instance,
Safeguard which is soap has soaps of different varieties like safeguard white and safeguard pink.
P& G manufactured products are popular for their excellent packaging and design, features and
strong brand name.
Price:
P&G incorporated value pricing strategy. The company adopted this strategy by cutting
its coupon, production and logistical cost by effectively increasing efficiency and it
increased its advertising by 20 percent.
Within the period of six years this strategy resulted in higher brand loyalty and stronger
brand image.
The strategy of P&G was quite opposite to that of competitors and marketing practices on
that time but resulted in greater success. Now days, P&G has the most effective pricing
of its brands and customer loyalty is as enough that they are willing to pay extra for
company’s brands.
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P&G gives discount offers on its different products time to time but not frequently as it
experienced in 2000s that coupon and discount only decrease customer’s brand loyalty.
Place
P&G products are available almost all over the world. P&G distributes the products in
about 140 countries to approximate five billion consumers.
DHL courier is a service provider to the company through which it ensures its logistical
efficiency.
Company has manufacturing and distribution networks in all major countries where it
runs its operations like China, USA, UK and India.
Promotion
This era is an era of advertising. Companies have to do huge advertisings to sell their
products to the consumers.
P&G has an effective promotions strategy with an advertising budget of approximately
8.68 billion dollar in 2009 which makes it world’s number one advertiser (Mikkelson,
Barbara and David, 2005).
P&G received Advertising Hall of Fame Award in 2010. The company uses television
mass advertising in particular, Internet marketing and other marketing mediums to
promote its brands.
Competitors
P&G provides largest and broadest portfolio of products in the household and personal care. It
has a industry worth of 24 billion dollar brands and generates 43% more revenue than its closest
competitor, Unliver. P&G also maintains a relatively high operating margin of 20.46% amongst
its competitors.
Its major competitors in Pakistan and World-wide are:
Unilever
Colgate-Palmolive Company (CL)
Reckitt Benckiser
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Local products
Strategic management of Tide and Ariel
Overview of detergent market in Pakistan
Total Market size by volume = 162,211 tons
Total market size by value = 19 billion
Detergent market is growing by 5.7% for past 2 years
Companies By Volume By Value
Unilever 45000 8 billion
P&G 9000 2 billion
Colgate Palmolive 80000 8 billion
Rest 28000 1 billion
Brands By Volume By Value
Ariel 25000 38 billion
Surf 35000 21 billion
Excel 10000 16 billion
Bonus 6000 11billion
Express 4000 5 billion
Tide 8000 5 billion
Rest 14000 3 billion
Market share By Volume By Value
Urban 73 79
Rural 27 21
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Overview of Ariel Position in Pakistan
Parent Company Procter and Gamble
Category Home Care brands – detergents
Sector FMCG
Tagline/ Slogan Sirf yaadein taaza rakhe, daag nahi
USP
The product has been in the market for many decades and has established its
image as the product which can remove dirtiest and difficult to remove stains
STP
Segment
Premium product – People who want quality and are ready to pay more price
for good quality product
Target Group Upper middle class and rich class of the society
Positioning
Positioned by the special attributes it possesses of cleaning the dirtiest stains
by micro cleaning system in the product
SWOT Analysis
Strength 1. World leader in detergent segment
2. Quality detergent – can remove the toughest stains
3. Has made a strong base in the mind of users by various innovations in
marketing
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4. 1st to introduce fragrances in the market
Weakness
1. Various lower priced products available in the market
2. Strong competitors
Opportunity
1. 5700 crore detergent market
2.Big untapped rural market
3.Can use its brand imprint in the minds of people to increase its customer
base
Threats
1.Counterfeit products in rural areas
2.Aggressive price competition
3.Ambush marketing harming the products reputation
Competition
Competitors
1. HUL’s Surf Excel
2.Bonus
3.Brite
Launch of Tide in Pakistan
Considering the launch of Tide in Pakistan lets analyze the market with the help of Porter’s five
forces
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Porter’s Five Forces Model
The objective of Porter Five Forces Model is to beat the competition of market by overcoming
the challenges offered by rival companies. The five forces model was analysis developed by
Michael E. Porter in 1979. According to this model the five forces that can affect the profits of
company and can help to determine the prevailing competition in market are:
New competition threat
Threat due to substitute services or products
Bargaining Power of suppliers
Bargaining Power of Buyers
Threat of established rivals
From the above mentioned factors three are part of horizontal competition that are marketing
threats of rivals, new entrants and of substitute products. However, bargain power of customers
and suppliers are vertical competition factors. Various companies use this model as checklist for
developing any marketing strategy and also use “Value Chain” along with this model.
Threat of New Entrants
Due to the vast range of Procter and Gamble products, it is very hard for a new company to come
and participate. However, the company holds considerable shares of market and also has
established reputations therefore, no new entrant can compete with the company without heavy
amount of capital and complete marketing strategy based on comprehensive research. Though
small companies with specialization in particular products can offer competition to Procter and
gamble in specific areas.
Bargain Power of Supplier
The bargain power of supplier is coped with mutually dependent relationship of company with
its suppliers. Procter and Gamble request some good materials in order to produce products of
good quality and sell them at sensible price. Likewise, suppliers in market are always in search
of reputed clients that can help them to generate good amount of revenue. The standard
reputation maintained by Procter and Gamble offers advantage to the company in this regard.
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Therefore, the prevailing crisis of credit and fluctuation in interest rates do not affect the terms of
company with suppliers.
Bargain power of Consumers
As with the bargaining power that is alarmed by the costumers, Procter and Gamble can deal
with it easily. The wide range of household products produced by company maintains the
revenue of company even in time of recession. It is due to the type of various products and the
demands of products in everyday life of consumers, that this company plays an effective role in
reducing rate of recession in economy of Pakistan.
Threat of Substitute Products
Although Procter & Gamble has to deal with the presence of various substitutes in market
nowadays, however quality offered by P&G in its all products ensure the sustainability of
company in market all over the world. In this regard company has adopted variety of
collaboration strategies with their customers in order to develop better understanding of
consumer demands and their response.
These factors allow the industry to know about their buyers that are they happy with Procter and
Gamble products or will choose some other brand over Procter and Gamble. The quality in
Procter and Gamble products is always maintained and it ensures costumer trustworthiness.
Threat of established rivals
Procter and Gamble is one of most successful company offering quality products in present
times. For more than half of a century this company is dominating the world of household
products in different parts of world. This success of company is because of flexible attitude of
company towards modifying user requirements and shifting market conditions. The successful
marketing and business strategies of company ensures growth in revenue and constant reputation
in world of business.
It is a buyer oriented industry which is ready to know about the requirement of their costumers
sooner than any other. P&G is now familiar with the business war going in the market but it has
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also formed a business map to compete. With Porter’s five forces model Procter and Gamble can
successfully eradicate its rival companies and beat the competition anywhere in world.
Should P&G Pakistan add “Tide Detergent” in its portfolio or not?
Keeping in view the “Porter’s five forces model and the above statistics I think P&G Pakistan
must include “Tide Detergent” in its portfolio. There are number of reasons for this:
First of all if we look at the above figures Tide has already maintained its share in the market of
Pakistan and eating the share of Ariel but the sale of Tide is not adding in the account of P&G
Pakistan which is a complete loss in terms of figures to P&G Pakistan. So to avoid the loss P&G
Pakistan must stop the import of Tide and start its manufacturing in Pakistan by its own for its
own benefit and that will also count in the economy of Pakistan
Secondly, Tide has already maintained its image in the mind of Pakistanis so there is no need of
extra advertisement campaigns.
Pros and Cons of launching Tide in Pakistani Market
PRO’s
Increase in the sales of P&G Pakistan
Little advertisement needed
Available in different forms , powder , liquid
Perfumed forms
No need to educate people about the brand
CON’s
Will eat up the share of Ariel
Both are high end products
Conclusion
P&G Pakistan only has Ariel to cater only one segment. It must bring “Tide” in the market to
regain its position as Market leader and to compete in the market.
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References
Wherrity, Constance (2006). "Dial Agrees to Buy P&G Deodorant Brands". Pierce Mattie
Public Relations New York blog.
Dyer, Davis; Frederick Dalzell, Rowena Olegario (2004). Rising Tide: Lessons from 165
Years of Brand Building at Procter & Gamble. Harvard Business School Press.
Mikkelson, Barbara and David. (2005). Tampax Pearl, Snopes.com.
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Horstman, Barry M (2005). "John G. Hankus: He rebuilt P&G – and city, too". The
Cincinnati Post.
https://www.pg.com/en_PK/
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