FINAL PROJECT

Service & Direct Marketing

Project Report on
Phoenix Group of Companies
Submitted by:
Umair Iqbal 12464
Submitted to:
Dr. M.A.K.Chishti
Date: 05
th
May 2013
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ACKNOWLEDEMEN!S
First of all we would really like to thank the Almighty Allah who gave
me the strength to work on the report and to complete the report on
time without any hurdles. We would also like to thank our teacher
who gave us the confidence and guidance on every step of our
research. This project helps us know more about Service & irect
!arketing and have insights on the Service !arketing techni"ues
used by the company for its products
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!a"#e $% C$ntent&
Content Page no
Ee!uti"e Summary 4
Cha#ter $ 1 Procter & Gamble A brief History
%&' (istory )
Com#a*y+s %ur#ose )
Com#a*y+s Commitme*t 6
Com#a*y+s %ri*!i#les 6
Cha#ter $ 2 SWOT Analysis of Procter & Gamble
S,-. A*alysis o/ %ro!ter &
'amble
0
Stre*1ths 2
,ea3*esses 2
-##ortu*ities 4
.hreats 4
Cha#ter $ 5 Background of failed product A!A" SOAP
6ailed %rodu!t des!ri#tio*
a*d details
17
%rodu!t 6ailure i* %a3ista* 17
Com#etitors A*alysis o/
%a3ista*i Mar3et
11
Cha#ter $ 4 !arket Si#e
Mar3et Se1me*tatio* 12
.ar1eti*1 15
%rodu!t %ri!i*1 15
Cha#ter $ ) $easons for %ailure of amay Soap
(i1h Co*sum#tio* 14
%rodu!t /or all ty#es o/ s3i*s 14
I*a##ro#riate Distributio*
Cha**el
14
Cha#ter $ 6 $ecommendations
Cha#ter $ 0 onclusion
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E'EC(!)*E S(MMA+,
#amay was beauty soap. $t was a scented body and hand soap which was
available in different fragrances. #amay gradually lost its popularity and market
share because of customer complaints regarding the soap%s high solubility and
consumption& therefore it was not a suitable product for the consumers
especially for 'akistani consumers who give great importance to the benefit
derived in relation to the price they have paid and budget conscious class of
consumers. $ts different scents haven%t even contributed much to its popularity.
Another major factor behind the failure of the #amay soup was that it failed to
position itself as a product for all type of skins and consumers didn%t accepted it
as a suitable product for different types of skins such as dry( oily or sensitive
skins which is give utter importance by consumers while selecting the soup.
Furthermore( the target audience was not identified correctly and the product
was marketed as a product for all while its features are more suited for the
teenagers and kids especially women who are conscious about their skin
health. #amay soap also lacks the moisturi)ing element which is an essential
content of soap as the environment in 'akistan is mostly dry and humid and
skin re"uires moisturi)ers to moist the skins and keep them healthy.
'ricing of the product also contributed towards the failure of the product as
comparative price of the soap was not inline with the industry trend and better
soaps were available were available at comparatively low prices thereby
influencing customers attitude not to buy the product as the consumers pay for
the benefit the perceive they would derive from the product after all
CUSTOMERS DOES NOT PAY FOR THE PRODUCT, THEY PAY FOR THE
SOLUTION.
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Chapter 1
-r$cter & a."#e / A "rie% 0i&t$ry
%ro!ter & 'amble Com#a*y 8%&'9 is a Fortune S#*( American global
corporation based in #incinnati( *hio( that manufactures a wide range of
consumer goods. As of +,,-( '&. is the /th largest corporation in the world by
market capitali)ation and 01th largest 2S #ompany by profit. '&. was ranked
0,th in the 3Fortune4s !ost Admired #ompanies5 in +,,6. '&. is credited with
many business innovations including brand management( the soap opera( and
7#onnect& evelop7 innovation.
According to the 8ielsen #ompany( in +,,6 '&. spent more on 2.S.
advertising than any other company& and spent 2S9 +./+ billion which was
almost twice as much as .eneral !otors( the ne:t company on the 8ielsen list.
'&. was named +,,- Advertiser of the Year by Caes Iteratioa!
Advertisi" Festiva!.
Three billion times a day( '&. brands touch the lives of people around the
world. '&.%s corporate tradition is rooted in the principles of personal integrity(
respect for the individual and doing what4s right for the long;term.
C$.1any2& -3r1$&e
'&. provides branded products and services of superior "uality and value that
improves the lives of the world4s consumers( now and for generations to come.
As a result( consumer rewards the #ompany with leadership sales( profit and
value creation( allowing the '&. people( the shareholders and the communities
in which they live and work to prosper.
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C$.1any2& C$..it.ent
$mproving the lives of consumers worldwide is about more than just great
products. $t%s about taking responsibility for improving the communities around
the world through the work #ompany do( as a #ompany and as individuals
forming the #ompany.
C$.1any2& -rinci1#e&
'&. show respect for all individuals. The interests of the company and the
individual are inseparable. <ie are strategically focused in our work. $nnovation
is the cornerstone of our success. <ie are e:ternally focused. We value
personal mastery. <ie seek to be the best. !utual interdependency is a way of
life.
=istory
$n 0->6( 'rocter and .amble was founded in #incinnati by William 'rocter( a
candle maker( and brother;in;law .amble( a soap maker. Their joint venture
started one of the most influential companies in all American industry. The
company4s first product was $vory soap( introduced in 0-6?.
For generations( 'rocter and .amble has been built by scientists and consumer
researchers& the latter finding out what the public needs and wants are( and the
former improving upon old products or inventing new ones to match the
identified needs and desires.
Several products were developed during the time period when William 'rocter4s
son( William Ale:ander 'rocter( took over the company @0-?,;0?,6.A William
#ooper 'rocter began working in the company in 0--> and served as president
of the company from 0?,6;0?>,. uring this era( the company4s sales rose from
2S9+, million to 2S9 +,, million. This was a period of rapid growth in which the
company built several plantsB five in the 2nited States( one in #anada( and one
in Cngland.
William #ooper 'rocter was a pioneer in many labor relation reforms. 'rocter
and .amble became the first American company to give half holidays on
Saturdays and set up a #ro/it: shari*1 #la* in the same year. #ompany policy
was reworked in 0?+,( and all the employees were guaranteed 1- weeks of
work per year. *ther firsts includes a disability pension plan( a life insurance
plan( and employee representation on the Doard of irectors.
Today( '&.& goods are found in ?- percent of all American households. With
additional products are sold worldwide( from the Arabian 'eninsula to Argentina
to $ndian subcontinent( the company remains committed to marketing superior
products.
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Chapter 2
SWOT Analysis of Procter & Gamble
'&. is a .lobal #ompany reaching with business e:panded to -+ countries. A
speciali)ed company with a singular( steadfast focuses on the advancement of
skin care and other consumer goods around the globe. $t has a very strong
global bra*d ima1e. Since products of '&. have been used for more than 1)7
years( thus the brand loyalty among its buyers does e:ist and there is a strong
bond between the customers and the #ompany.
'&.4s goal is simple( i#$rovi" the %&a!it' of h&#a !ife (' $rovidi" hi"h
%&a!it', safe ad effe)tive FMC*s +fast #ovi" )os&#er "oods,( therefore
making life easier for so many people around the globe.
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Strength&:
The biggest strength of '&. as a company is having vast
range of skin care product line including creams( lotions(
shampoos( li"uid cleansers and etc.
$t has a very strong brand name.
ue to its strong brand repute( '&. has a huge customer
base.
The customers of '&. are e:tremely brand loyal and have
less tendency of switching on to some ,ther brands.
'&. are always bringing inn ovation s to sustain its customer
base.
Weakne&&e&:
The major weakness of '&. is being less innovative than its
major competitor 2nilever.
Some of the '&. products have failed in certain geographic
areas( as the research for those products is not conducted in
all the geographic areas where the product has to be sold. For
e:ample( *il of *lay failed in 'akistan( #amay failed here as
well.
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O11$rt3nitie&
Some opportunities include the une:plored areas in the
markets where '&. can sell its product.
*ne of the opportunities for '&. is to invest in the segment for
children.
Another opportunity for '&. is to introduce food and
beverages for 'akistani market( keeping in view the tastes and
preferences of the people here.
!hreat&:
2nilever is the biggest threat for '&. as that is the most
aggressive competitor of '&..
With the advent of new F!#. providers in market with less
priced products( people in markets like 'akistan where due to
inflation customers can switch on to other low price products.
As '&. is operating globally therefore the regulations of
.overnment in different geographical areas may affect the
policies of '&..
As the world economy is going through the unprecedented
economy crisis that may prove to be a threat for all the
businesses being operate d globally
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Chapter 3
4ACK+O(ND O5 5A)LED -+OD(C! CAMA, SOA-
5ai#e6 -r$63ct 6e&cri1ti$n an6 6etai#&:
#amay was rich( creamy beauty soap. #amay was available in different
fragrances. #amay was the name of a scented hand and body soap( made by
'rocter & .amble. $t was first introduced in 0?+/ and marketed as a 3;hite<
#ure soa# /or ;ome*7 as many soaps of the time were colored to mask
impurities. #amay4s slogan for many years was =Camay: the soa# /or
beauti/ul ;ome*.= $t was later replaced with =6or your most beauti/ul
!om#leio* at e"ery a1e.=
#amay is still produced( however many stores in the 2nited States and 'akistan
do not sell it anymore( as it has fallen out of popularity in recent years. Since it
is still "uite popular abroad( in the 2.S. it is often found at immigrant;oriented
ethnic stores. For many years( #amay was a major sponsor of the soa# o#era
Search for Tomorrow.
#amay Soap was introduced in the 2SA in 0?+/ and in the 2E in 0?F-. $t was
one of the first ;beauty soaps marketed in post;World War $$ in Dritain. The
brand was seen as a lu:urious and e:clusive soap( which provided the ultimate
in /emi*i*e 1lamour. $n those early days( #amay became renowned for its use
of e:clusive French perfumes( its pink color and its rich lather. The name
Ca#a' was derived from the (ars o- )a#eo sta#$. 7#amay7 was coined
from the French word( 7came e(7 which means !ameo( the jewel.
-r$63ct 5ai#3re in -aki&tan:
#amay was introduced in 'akistan. C:tensive advertisement was done for the
products. The soap was introduced with different scents to ensure variety. Dut
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#amay became unsuccessful in coping up with the e:pectations of the
customers. Therefore it was failed.
*ne of the complaints of the customers was that #amay was highly soluble
soap( due to which it was consumed highly and was not a cost efficient product.
#amay failed to compete with Gu:( #apri( ove( $mperial leather etc. Cven
different scents of the product were unable to contribute to its success.
#ustomers were unable to accept such soap and ultimately '&. had to face a
decline in the growth stage of #amay.
Competitors Analysis of Pakistani Market:
Leading Soap rand Market S!are
Gifebuoy >FH
Gu: +FH
Safeguard 0FH
*thers +FH
Page 11 of 17
Market Share
Lifebuoy
35%
Lux
25%
Safeguard
15%
Others
25%
Lifebuoy Lux Safeguard Others
Chapter 4
Market Si7e
$n order to understand the market si)e( we need to have insights about the
meaning of market segmentation( targeting segments and pricing strategies
which are the variables which determine the positioning of the product and
market si)e.
MA+KE! SEMEN!A!)ON
To get a product or service to the right person or company( a marketer would
firstly segment the market( then target a single segment or series of segments(
and finally position within the segments
Segmentation is essentially the identification of subsets of buyers within a
market who share similar needs and who demonstrate similar buyer behavior.
The world is made up from billions of buyers with their own sets of needs and
behavior. Segmentation aims to match groups of purchasers with the same set
of needs and buyer behavior. Such a group is known as a >se1me*t>.
Segmentation is a form of critical evaluation rather than a prescribed process or
system( and hence no two markets are defined and segmented in the same
way. There are many ways that a segment can be considered. For e:ample( the
auto market could be segmented byB
By geography
Such as where in the world the product was bought our product would be
customi)ed for Asian skin types. $t would be a local product available only in
'akistan( developed especially to work wonders on the Asian skin type.
By Psychographics
Such as lifestyle or beliefs 'eople with a certain lifestyle would want to buy an
e:pensive medicated soap not every Tom ick and =amI would do that. Thus
our segment ft considered psycho graphically would target people whose beliefs
and attitudes are shaped by popular culture and they fall prey towhat the
television says pretty easily.
By socio-cultural factors
Such as class does play a part in the acceptance of such products in your life.
'eople from the upper class and upper middle class would be ready to buy our
Page 12 of 17
soap because it is not acceptable to people with a low income to splurge on
such lu:uries as medicated soap.
By demography
Factors such as age, sex, and so on are considered. Most! fe"aes are
conscious a#out their s$in, and "aes do not usua! use %roducts &ith the
stereot!%ica '#eaut! attached to it.
!A+E!)N
Targeting is the second stage of the segment( target( positioning process. After
the market has been separated into its segments( the marketer will select a
segment or series of segments and 4target itIthem. Jesources and effort will be
targeted at the segment. $t is like looking at a dartboard or a shooting target.
Kou see that it has areas with different scores ; these are your segments.
Aiming the dart or the bullet at a specific scoring area is targeting.
-+OD(C! -+)CE
*ne of the most important decisions in marketing is the #ri!e. This is because
price is believed to have impact on sales volumes. $f the price is too high and
the market is competitive( sales may be correspondingly reduced. !ain reason
for the importance of price is that it is one of the main variables that determine
the profit. The profit per unit is e"ual to the price less the total cost of producing
that unit.
%ro/it ? %ri!e : Cost
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Chapter 5
+ea&$n& %$r 5ai#3re $% Ca.ay S$a1
(i1h Co*sum#tio*
!ajor reason behind the failure of the #amay soap in 'akistan was that it was
not a cost efficient product and was highly soluble and since it was consumed
"uickly( the consumers failed to apprehend the cost they paid for the benefit
they perceived they would derive from the product.
%rodu!t /or all ty#es o/ s3i*s
Another reason for the failure of the product was that it failed to cater the
different re"uirements of the consumers and tried to market the soup as brand
for all types of skins. While in market( soaps were available for different types of
skins such as oily( dry and sensitive. This led to the consumers diverted away to
other products marketed specifically for them.
I*a##ro#riate Distributio* Cha**el
( distri#ution channe is defined as)
Elements of the system of delivery of merchandise to customers from the
manufacturer or wholesaler, in retailers, brokers, and shipping companies;
also includes discussions of store merchandising and cross- merchandising.
The distribution system refers to the entire marketing process( and not just the
physical product distribution. $t is a set of interdependent groups and individuals
concerned with transferring specific goods or services from the original producer
or supplier to the final user or consumer.
istribution channels are essentially sets of relationships where the parties
involved have toB
L Enow each others aims( policies and procedures
L De aware of their planning hori)ons and management styles
L De willing to accept tasks as well as impose them on ,thers
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The most effective distribution channels are those where the distributor4s
interests are made to coincide with the producer4s interests. Defore any
commitment is made( the producer needs to be certain of the distributors
business aims( attitudes and customer franchise.
$t pays to remember that your distributors are customers too( and have the
option to buy elsewhere. istributors may take on some or all of the tasks
involved in getting goods or FerIices from the producer%s door to the consumer4s
threshold. Transferring part or the company4s image to the distributor implies
that decisions taken by the middleman must be reviewed and should be of a
long;term nature.
'&. failed to market the product to the teenagers and kids who are conscious
about the skin and give due importance to the manner in which they are
attracted to the products. '&. relied heavily on its brand image and 0F, years
of e:istence without understanding the attitudes of the 'akistani target market
and failed to understand their re"uirements.
%ri!i*1 Strate1y
'&. adopted market skimming strategy for the product and tried to recover the
investment made during early stages of the product life cycle in 'akistan. While
other soups with meeting the needs of the consumers were readily available in
the market( #amay Soap failed to penetrate the market and had to reset the
price as demand declined significantly.
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Chapter 6
+ec$..en6ati$n&
$t is recommended that product should be re;launched and target market should
be identified. ifferent variants for different types of skins is a good option and is
highly recommended as the industry trend is such that. For e.g. Gu: soup have
range of soaps to cater for the different types of skins.
Furthermore( the clinical aspects and the benefits of the products should be
highlighted and should be spread in such a way so as to attract teenagers and
women segment as they usually influence the buying pattern of household items
and are more concerned with the beauty products.
'ackaging should be made attractive and more inclined towards targeting the
big segments.
Furthermore( pricing strategy should be reworked and market penetration
strategy should be adopted for the re;launched product. A market survey should
be carried out and price should be set as such level so as to attract the low to
medium income class as they are the biggest segment in the country.
Furthermore( research should be carried out to overcome the major problem of
the high solubility which is the biggest cause of the failure of the product.
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Chapter 7
C$nc#3&i$n
'&. certainly has the potential to re;introduce the product and capture good
market share and have ample resources to revamp and market there product
and by implementing the recommendations suggested in #hapter /( there is a
high probability that #amay Soap will become a major beauty soap product in
'akistan.
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