MARKETING MANAGEMENT

PROJECT REPORT

Submitted to: Sir Nauman Hussain Tirmizi

Submission Date: 19th April, 2021
“Procter & Gamble (P&G)”

Prepared by:
 Hafiz Muhammad Usman Khan (29389)
 Fuzail Ahmed Khan (29107)
 Affan Saeed (29005)
 Sabeeh Ahmed Khan (29250)
 Mashood Channa (29029)

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 Acknowledgment

This report has been undertaken to fulfill the requirements of our course ‘Marketing
Management’. We have taken efforts in this project. However, it would not have
been possible without the support and help of many people. We would like to
extend our sincere thanks to all of them. We would like to thank our course
instructor, Mr. Nauman Hussain Tirmizi with sincere gratitude. His guidance proved
to be extremely contributing towards this task and helped us completing this term
project report.
 Table of Contents
1 INTRODUCTION.................................................................................................1
1.1 Corporate History......................................................................................................... 1
1.2 Owners (Share Holders) Profile.................................................................................... 2
1.3 Organizational Structure...............................................................................................5
2 SITUATION ANALYSIS........................................................................................7
2.1 Corporate Strategies.....................................................................................................7
2.2 Brand’s Market Share................................................................................................... 8
2.3 Competitors’ Analysis................................................................................................... 9
2.4 Marketing department Strategies.............................................................................. 12
2.5 Marketing Department’s Structure............................................................................ 17
2.6 Value Creation for Customer...................................................................................... 18
2.7 Customer touch points................................................................................................ 20
2.8 Strategy for Product Development.............................................................................21
2.9 Brand-driven Innovation Strategy.............................................................................. 22
2.10Pricing Strategy...........................................................................................................23
2.11Dynamics and Key characteristics of consumers........................................................24
2.12Channel Management................................................................................................ 26
2.13Financial Profile.......................................................................................................... 27
2.14SWOT Analysis............................................................................................................ 31
3 PROBLEM DEFINITION.................................................................................... 32
4 ALTERNATIVE RECOMMENDATION................................................................33
1 INTRODUCTION

1.1 Corporate History

The Procter & Gamble Company (P&G) is an American multinational consumer goods
corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter
and James Gamble. It specializes in personal health/consumer health, as well as
personal care and hygiene products; these products are divided into several
categories, including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby,
Feminine, & Family Care. Pringles' product range included food, snacks, and drinks
until it was sold to Kellogg's. P&G is a company based in Ohio.

According to Procter & Gamble’s website, the Cincinnati company was founded in
1837— a year of financial crisis in the country— by brothers-in-law William Procter
and James Gamble. Procter was a candle maker, and Gamble was a soap maker.
These products became the foundation of their business.

1850 - The business starts putting its Moon and Stars logo on products. Despite
rumors of imminent civil war, they constructed a new plant to meet the demands of
their expanding market.

1859 - Procter & Gamble now does $1 million in sales, having grown into a company
with dozens of employees.

1862 - In a turn of fate, the Civil War gives P&G some good fortune as it attains deals
to supply candles and soap to Northern armies.

1879 - By this time Gamble’s son, James, has used his chemistry knowledge to create
a cheaper equivalent of more expensive soaps. This leads to the Ivory Soap brand,
which William Proctor's son Harley named after reading a passage from the Bible-
“out of ivory palaces.”

1882 - Son Harley Procter maneuvers to spend more on advertising, marketing the
soap across the nation through newspapers.

1887 - P&G initiates one of the first profit-sharing deals. This gave employees a piece
of the pie, and quelled frustration among workers.

1890 - The soap business grows into a diverse product lineup of more than 30
different soaps. The company incorporates as a means to increase cash for growth.

1915 - The company opens its first production outside of the U.S.; making Crisco and
Ivory Soap in Canada.

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1920s - Due to the steady decline of candle demand after the invention of the light
bulb, the company phases out candle manufacturing. During this time frame, the
company pushes into direct to retail sales in order to create a more consistent
production schedule.

In the 1930s P&G buys overseas assets in the Philippine Manufacturing Company.

Through the next decades, P&G goes on to bring more products into its lineup. These
include detergents, soap powder, shampoos, toilet goods and a long list of consumer
staples.

The company expanded its product lines over the years to include toothpaste, coffee,
tea, and baking mixes. Procter & Gamble had items in many main categories by the
early twenty-first century: house and home (prescription drugs, digestive aids,
mouthwashes, toothbrushes, and toothpastes); health and wellness (prescription
medications, digestive aids, mouthwashes, toothbrushes, and toothpastes);
(cleaning products, detergents, paper towels, coffee, and snack foods); personal and
beauty (fragrances, deodorants, cosmetics, shaving supplies, and hair color); baby
and family (diapers and tissue, cleansing products, and moisturizers); and pet care,
including pet foods. The business has long been one of the most prominent national
advertisers in the United States, as well as a leading provider of free samples and
discount coupons.

P&G has a presence in over 80 countries. More than 160 countries sell its nearly 300
products. Information sharing, shared frameworks and procedures, and best-practice
reapplication are all possible because of the company's global scope. P&G considers
its global size to be one of its five key strengths, citing scale as a means of increasing
productivity and adding value to consumers.

P&G has risen to become one of Pakistan's largest fast-moving consumer goods
companies since its first shipment in August 1991. The business has become a role
model for other investors in the world. P&G has spent over $150 million in fixed
assets over the years. P&G bought a soap-making facility in Hub, Baluchistan, in 1994,
and built a state-of-the-art laundry detergent plant at Port Qasim in 2010

P&G currently markets to Pakistani customers a number of high-quality products,

including six billion-dollar brands. Pampers, Always, Ariel, Safeguard, Head &
Shoulders, and Pantene are all household names in their respective categories. P&G
has invested heavily in learning about the Pakistani customer in order to offer
outstanding goods and creative campaigns that meet their needs and change their
lives in meaningful ways.

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1.2 Owners (Share Holders) Profile

Procter & Gamble is a global consumer products company, serving consumers

around the world with sales in different countries and territories.

An organization of this size should have solid administration, just as pioneers who
comprehend the assorted customers and worldwide requirements. The current
arrangement of the Board of Directors mirrors a proper blend of ranges of abilities,
experience, and capabilities that are pertinent to the business and administration of
the Company. Every Director typifies the Company's Purpose, Values and Principles,
has the most noteworthy morals and uprightness, and shows obligation to
addressing the drawn out interests of the Company's investors. Each Procter and
Gamble Director additionally has singular encounters that give reasonable insight
and cultivate develop judgment in the meeting room.

The Procter and Gamble Board of Directors has general oversight obligation
regarding the Company's undertakings according to Ohio's General Corporation Law,
the Company's Amended Articles of Incorporation and Code of Regulations, and the
Board of Directors' By-Laws. In practicing its guardian obligations, the Board of
Directors addresses and follows up in the interest of the Company's investors. Extra
insights about the job and construction of the Board are contained in the Board's
Corporate Governance Guidelines.

Francis S. Blake
Former Chairman of the Board and Chief Executive Officer of “The Home Depot, Inc.”
(national retailer). Director since 2015. Also non-Executive Chairman of the Board of
Delta Airlines and Director of Macy’s, Inc. Age 69. Member of the Audit and
Governance & Public Responsibility Committees.

Angela F. Braly
Former Chair of the Board, President and Chief Executive Officer of WellPoint, Inc.
(healthcare insurance), now known as Anthem. Director since 2009. Also a Director
of Lowe’s Companies, Inc., Brookfield Asset Management, and ExxonMobil
Corporation. Age 57. Chair of the Governance & Public Responsibility Committee and
member of the Audit Committee.

Amy L. Chang
Senior Vice President of the Collaboration Technology Group at Cisco Systems, Inc.
(networking). Founder and former Chief Executive Officer of Accompany, Inc.
(relationship intelligence). Director since 2017. Former Director of Cisco Systems, Inc.,
Splunk, and Informatica. Age 41. Member of the Audit and Innovation & Technology
Committees.

Kenneth I. Chenault
Chairman and Managing Partner of General Catalyst Partners (venture capital) since
February 2018. Former Chairman and Chief Executive Officer of the American
Express Company (global services, payments and travel). Director since 2008. Also a

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Director of International Business Machines Corporation and Facebook. Age 67.
Member of the Audit and Compensation & Leadership Development Committees.

Scott D. Cook
Chairman of the Executive Committee of the Board of Intuit Inc. (software and web
services). Director since 2000. Age 66. Chair of the Innovation & Technology
Committee and member of the Compensation & Leadership Development
Committee.

Joseph Jimenez
Former Chief Executive Officer of Novartis AG (global healthcare), a position he held
from 2010 to 2018. Director since March 1, 2018. Also a Director of General Motors.
Age 58. Member of the Compensation & Leadership Development and Innovation &
Technology Committees.

Terry J. Lundgren
Former Executive Chairman and Chairman of the Board of Macy’s, Inc. (national
retailer), a position he held from 2017 to 2018. Mr. Lundgren held the role of
Chairman and Chief Executive Officer of Macy’s from 2003 to 2017. Director since
2013. Age 66. Chair of the Compensation & Leadership Development Committee and
member of the Innovation & Technology Committee.

W. James McNerney, Jr.

Senior Advisor at Clayton, Dubilier& Rice, LLC (private equity). Former Chairman of
the Board, President and Chief Executive Officer of “The Boeing Company”
(aerospace, commercial jetliners and military defense systems). Director since 2003.
Age 69. Lead Director, Member of the Compensation & Leadership Development and
Governance & Public Responsibility Committees.

Nelson Peltz
Chief Executive Officer and a Founding Partner of Trian Fund Management, L.P.
(investment management) since its formation in 2005. Director since March 1, 2018.
Also a Director of The Madison Square Garden Company, The Wendy’s Company,
and Sysco Corporation. Age 76. Member of the Governance & Public Responsibility
and Innovation & Technology Committees.

David S. Taylor
Chairman of the Board, President and Chief Executive Officer of the Company.
Director since 2015. Age 60.

Margaret C. Whitman
Chief Executive Officer of NewTV (mobile video) since 2018. Former President and
Chief Executive Officer of Hewlett Packard Enterprise (multinational information
technology) from 2015 to 2017. President and Chief Executive Officer of the Hewlett-
Packard Company from 2011 to 2015, as well as Chairman of the Board from 2014 to
2015. Director since 2011. Also a Director of Hewlett-Packard Enterprise and

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Dropbox. Age 62. Member of the Compensation & Leadership Development and
Innovation & Technology Committees.

Patricia A. Woertz
Former Chairman of the Board, President and Chief Executive Officer of Archer
Daniels Midland Company (agricultural processors of oilseeds, corn, wheat and
cocoa, etc.). Director since 2008. Also a Director of 3M Company. Age 65. Chair of
the Audit Committee and member of the Governance & Public Responsibility
Committee.

Ernesto Zedillo
Former President of Mexico, Director of the Center for the Study of Globalization
and Professor in the field of International Economics and Politics at Yale University.
Director since 2001. Also a Director of Alcoa Inc. and Citigroup, Inc. Age 66. Member
of the Governance & Public Responsibility and Innovation & Technology Committees.

1.3 Organizational Structure

Global Business Units, Selling and Market Operations, Global Business Services, and
Corporate Functions make up P&G's organizational structure. In each country where
P&G goods are sold, it blends global scale benefits with a local emphasis on
consumers and retail customers.

Global Business Units (GBUs)

The portfolio is divided into ten Global Business Units (GBUs) based on categories,
with each category's business leaders having complete decision-making authority
over their respective companies. P&G has market leadership in these categories, and
product innovations offer value differences that matter to customers. GBUs are in
charge of creating an overall brand innovation strategy, as well as new product
upgrades and technologies, as well as campaign strategies. Baby Care, Fabric Care,
Family Care, Feminine Care, Grooming, Hair Care, Home Care, Oral Care, Personal
Health Care, and Skin and Personal Care are among the ten groups.

Selling and Market Operations (SMOs)

Selling and Market Operations (SMOs) at P&G are in charge of designing and
implementing go-to-market strategies at the local level, with dedicated retail
consumer, trade channel, and country-specific teams. They concentrate on
productive and efficient selling, distribution, shelving, pricing execution and
merchandising for consumers, channels, customers and markets in six regions:

 Asia Pacific
 Europe
 Greater China
 India, the Middle East and Africa (IMEA)
 Latin America
 North America

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Global Business Services (GBS)
P&G's infrastructure, processes, systems, and shared resources are all managed and
supported by Global Business Services (GBS). GBS also discovers, develops, and
introduces technology that help P&G brands accelerate and advance their work.

Corporate Functions
Corporate Functions provide company-level strategy and portfolio analysis,
corporate accounting, treasury, tax, governance, human resources, information
technology and legal.

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2 SITUATION ANALYSIS

2.1 Corporate Strategies

P&G's integrated strategy is the establishment for solid adjusted development and
value creation for the close and long term and to center and reinforce the portfolio
in every day use classes where execution drives brand decision; to build up and
broaden the predominance of the brands across items, packaging, correspondence,
retail execution and value; to make profitability as basic to their way of life as
advancement. These are not autonomous vital decisions. They support and expand
on one another, and when executed well, lead to adjusted top-and primary concern
development and value creation.

The vision of P&G is

“Be, and be recognized as, the best consumer products and services company in the
world.”

In this corporate vision, the term “best” characterizes what the company aims to
achieve in the global consumer goods market. This metric shows how the Procter &
Gamble Company views itself in comparison to other companies in the industry.
Furthermore, the term defines the business organization's skills and prospects. In
this regard, Procter & Gamble's corporate vision statement highlights the following
characteristics that are important to the company's business situation:

 Be the best consumer products and services company

 Be recognized as the best consumer products and services company
 Global market operations

The mission and purpose of P&G is

“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.”

Procter & Gamble's strategic strategy is influenced by this corporate mission, which
includes a detailed specification. The importance of superior quality and value is
stressed, as is the case with the company's mission statement. The following are the
characteristics of Procter & Gamble's corporate mission statement:

 Branded products and services of superior quality and value

 Improve the lives of the world’s consumers, now and for generations to come
 Leadership sales, profit and value creation
 Prosperity of people, shareholders and communities

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The Procter & Gamble Company is required by its mission statement to ensure that
its products are of superior quality and value. A corporate goal based on this trait is
to continue to improve the company's goods in order to retain superior quality and
value. As an intensive growth strategy company, Procter & Gamble, for example,
must always innovate and ensure sufficient R&D investment for product
development.

The Procter & Gamble business strategy is to focus on creating new brands and
categories so the company can focus on being the best in branding, innovation and
scale. This is what sets this company apart from many of its competitors. P&G is
focusing on four key business strategies to regain market leadership

(1) Become A Focused Company of Leading Brands.

(2) Become A Global Company in Targeted Growth Markets.
(3) Become A Company Driven by Innovation.
(4) Become A Far More Productive Company.

2.2 Brand’s Market Share

There are multiple brands which are segmented by P&G. Each product has its own
market share.

Figure: Different brands of P&G

The market share of P&G’s products is as follows

 Fabric and Home Care = 10.74%
 Baby and Family Care = 35.3%
 Beauty Care = 14.96%
 Health Care = 4.75%
 Grooming = 70.09%

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 Figure: Market Share of P&G’s Product

2.3 Competitors’ Analysis

The competitors of P&G increases with respect to their brands. Each brands of P&G
has their own competitor. The different competitors of P&G in Pakistan are as
follows

1) Competitors of Pampers

 Canbebe by Ontex
 Huggies by Hyeworth Renault Petersen
 Molfix by Hayat Kimya
 Baby Master by Z & J

Figure: Competitors of Pampers

2) Competitors of Ariel

 Surf Excel, Rin, Sunlight and Comfort by Unilever

 Vanish by Reckitt Benckiser
 Brite, Bonus and Express Power by Colgate Palmolive

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 Figure: Competitors of Ariel

3) Competitors of Always

 Carefree by Johnson and Johnson

 Sincere by Ontex

Figure: Competitors of Always

4) Competitors of Head and Shoulder and Pantene

 Clear, Sunsilk, TRESemme, Clinic Plus and Dove by Uniliver

 L’oreal and Garnier by L’oreal Paris

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 Figure: Competitors of Head and Shoulder and Pantene

5) Competitors of Safeguard

 Dettol by Reckitt Benckiser

 Lifebuoy by Uniliver

Figure: Competitors of Safeguard

6) Competitors of Olay

 Neutrogena by Johnson and Johnson

 Dove, Ponds, Vaseline and Glow and lovely by Uniliver
 Tibet by Kohinoor
 Garnier and Maybelline by L’oreal
 Nivea by Beirsdorf Global AG

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 Figure: Competitors of Olay

2.4 Marketing department Strategies

Segmentation
P&G uses a mix of demographic, geographic and psychographic segmentation
variable. There is no single way to segment a consumer market. P&G marketers have
to try different segmentation variables to find the best way to view the market
structure. Major variables used by P&G in segmenting its consumer markets can be
illustrated as below.

Like other leading companies P&G serves several business markets in line with their
consumers. In the African region it operates totally with the help of its distributors
and dealers in respect of certain products such as Tide, Pantene Pro-V etc. On the
other hand, in the most densely populated region i.e. in Asia it operates both as
manufacturer and dealers. Again in India that is a huge market of P&G, it has
manufacturing plant of certain products such as ‘Ariel’, Tide’ in third world countries
like Bangladesh it has barely manufacturing facility.

As a corporate leader with huge market share P&G conducts its business almost
worldwide in above 180 countries. It segments its international markets using a
combination of several variables such as geographic location, economic, political and
cultural factors etc. To operate in different countries, it groups by region such as
North America, Latin America, Western Europe, South Asia, Australia etc.

P&G segments its world market on the basis of economic factors too. Countries are
grouped in their marketing strategy by people’s income levels.

For example, certain products, ‘Satin Care’ a women skin cleaner, ‘Safeguard’ a
highly antibacterial soap are more prevalent in the West European and North
American countries rather than in the third world countries like ours. Because
sometimes these products are costly enough for majority of the people to afford
living in a poor economy.

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However, P&G applies “Inter-market segmentation” an approach in segmenting its
international market. Under this approach it manufactures different fragrances such
as ‘Hugo’, ‘Boss’, skin care such as ‘Satin Care’ for consumers with unique needs of
these products regardless their countries.

Target Marketing

P&G’s overall marketing strategy involves targeting market, a weapon to evaluate

the segments the company has developed and selecting one or more segments. In
selecting target markets P&G adopts the following strategies:

1) Undifferentiated marketing
Using this strategy P&G somehow ignores segment differences and targets the
whole market with one offer. This mass-marketing strategy focuses on what is
common in the needs of consumers rather than on what is different. For
example, P&G produces and markets ‘Camay’ saying that a moisturizing bar soap
enriched in French perfumes that leaves your skin feeling fresh, soft and sensual. It
does not signify any segment regarding male or female, young or adult. In the
market it has ‘Head and Shoulders’ an anti-dandruff shampoo for users who want to
get dandruff free, to relieve from dry scalp and itch regardless the users are male or
female, having silky or curly hair.

In using undifferentiated marketing P&G faces obstacles. Difficulties arise in

developing a brand or product that will satisfy all consumers. As a result, it adopts
several other marketing strategies i.e. segmented, niche marketing too.

2) Differentiated marketing
Using a differentiated marketing strategy, P&G attempts to target several market
segments and designs separate offers for each. P&G has introduced several brands in
one product category i.e. hand soap (Ivory, Safeguard, Zest, Olay, Old spice),
Shampoo (Pantene, Head and Shoulders), Laundry detergent (Tide, Cheer, Bold,
Dreft), Tissues and towels (Charmin, Bounty, Puffs) instead of concentrating its
resources on a single leading brand. This is because different people want different
mixes of benefits from the products they buy. For example, people use laundry
detergent to get their clothes clean. But they also want other things from their
detergent such as economy, bleaching power, fabric softening fresh smell, strength
or mildness, lots of suds or only a few. To some people cleaning and bleaching power
are most important to others fabric softening matters most; still others want a fresh-
scented detergent.

Thus there are segments of laundry detergent buyers. P&G has developed different
brands of laundry detergent to target each segment to meet the special needs of
each.
For example,’ Tide’ is the best in fabric cleaning ‘Cheer’ is the color expert, ‘Bold’ is
the fabric softener and pill remover, ‘Ivory’ provides mild cleansing benefits for pure
clean.

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Thus P&G evaluates its segments in terms of consumer needs and wants and selects
one or more segments to enter introducing various products or brands in a similar
product category. P&G has differentiated its market by developing several brands of
bar soap that fulfill different criteria. It produces ‘Safeguard’ an anti-bacterial soap
for all consumer’s male or female. It produces ‘Olay’ beauty soap for women of all
ages who want to feel their skin fresh, smooth and sensual.
P&G’s such offering products and marketing variations to segments result in higher
sales volume. But differentiated marketing also increases the cost of doing business.
The company finds it more expensive to develop and produce different small units of
a product category than producing larger units of the products. Trying to reach
different market segments with different advertising increases promotion cost. For
example, for different brands of dishwashing detergents such as Ivory, Dawn, Joy,
Cascade P&G has to advertise separately.

3) Concentrated and Micromarketing:

P&G a giant in the world market operating with a wide variety of products and larger
market share almost ignores concentrated or micro marketing. It has hardly any
single product in which it has concentrated deeply or tries to meet specific individual
needs. But it has certain products such as Ivory Aloe with Ivory Lavender creating a
classical purity for aged people (above 60) only. In fact the product is not to fulfill the
specific individual need but to meet the need of an individual segment.

Market Positioning
Another important Marketing Segmentation Strategy of P&G to occupy a distinct
Position in the market place is market positioning. A Products Position in a place the
product occupies relative to competitors in consumer minds.

P&G markets constantly and wants to develop unique market position for their
products if products are perceived to be exactly like other markets consumers would
rarely buy it. The company markets plan positions that distinguish their products
from others competitive brands. To occupy a desirable and distinctive place in the
laundry detergent market P&G has developed several brands instead of single
brands each brand having distinctive features to meet the different mixes of benefits
of different people.

“Tide” is positioned as a powerful all-purpose family detergent; “Ivory Snow” is

positioned as the gentle detergent for the fine washable and baby cloths. Thus in the
laundry detergent market P&G has confined itself to no single brand rather it seeks
position in the consumers’ minds with different brands of detergent each having
separate features and thus fulfilling different wants and needs of various customer
segments.

Again to create a unique brand image P&G has developed different formulations of
the same product category and operating with the same brand in each formulation.
For example, “Tide with belch” helps to clean even what’s unseen “Tide Power”
“Tide clean Breeze” Gives the fresh sent of laundry and mildness “Tide Free”
provides all stain removal benefits without any dyes or perfume etc.

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By segmenting the market and having several detergent brands and again a unique
brand with different formulations, P&G has an attractive offering from consumer in
all important preferences groups. As a result, it is really cleaning up in the 4 billion
US laundry detergent market. Tide by itself dominate approximately 38 percent
market share. All P&G laundry detergent brands combined take 60% of the U, S
market share than its nearest rival “Unilever”

In positioning its products P&G first identifies possible competitive advantages upon
which to build the position. To gain competitive Advantage the company stress on
pricing the products as rational as possible as offering more benefits to justify higher
price.

P&G has 3 sorts of shaving razors in the Market-Gillette Twin Blade, Gillette Mac-3,
Gillette Fusion etc. Each has different qualities and prices accordingly.
For example- ‘Gillette Fusion’ a four blade razor providing the fastest and smoothest
shaving (controlled by battery power or manually) has been priced higher than any
other category. On the other hand, ‘Gillette Twin Blade’ providing a smooth but
normal shave is priced the lowest considering the service it performs.
Thus P&G’s product is quite well balanced in terms of its price and quality which
provides the company a strength competitive advantage over its competitors.
In addition to charging rational price P&G attempts to position its product in the
market by delivering promised quality and superior customer value. For
this P&G emphasis on continual product improvement, retaining consistency in the
product quality and above all differentiates its products from those of others in the
market.

P&G differentiates along the lines of product, services, channels, people and image.
Along the lines of product, it has developed numerous brands of various products on
attributes such as-price, quality, and durability, users etc. P&G has 3 brands of razor
‘Gillette Fusion’ high priced, and ‘Gillette Twin Blade’ low priced etc. It has ‘Oral-B’
toothbrush for adults, ‘Oral-B Kids’ for children, ‘Safeguard’ an antibacterial soap for
user’s regardless gender, ‘Olay’ a beauty soap for women of all ages, ‘Satin Care’ a
skin cleaner only for women etc. Such differentiated product lines in particular
brands having specific features help consumers to choose their products easily to
satisfy respective needs in terms of price, quality, sex etc.

P&G gains service differentiation through speedy, convenient and careful delivery. It
has a wide range of dealer and distributor firms worldwide to operate globally. In
some countries where it has no manufacturing plant such as in most countries of
Africa, in third world countries like ours it operates with fur extensive distribution
channels not only in the urban areas but also in the rural ones. P&G has various
packaging of similar products such as mini pack, family pack, a lump sum size etc.
Through a delicate distribution channel, it tries to reach to all levels of consumers.

As a result, people living under poverty line even in rural areas or consumers of
different countries where P&G has few production facilities are equally enjoying its

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products like other privileged. And it has only been possible due to operating
activities of widespread dealer and distributors.

In case of People differentiation for hiring skilled and qualified employee P&G has
divided worldwide environment in three regions-

(1) America.
(2) Europe, Middle East and Africa.
(3) Asia Pacific / Australia.

For developing human skill and implementing it in the workplace P&G conducts
extensive training program, motivational approach and better control system.
Finally, P&G puts importance on image differentiation. P&G does it by promising a
certain quality for a specific products and creating brands accordingly.

For example, “Cheer” is a color expert “Bold” is a fuzz Removal “Era” prefers these
simple statements about products provide the backbone for its positioning in the
market and differentiate the product from those of competitors. P&G strives for
creating image recognition

Competitive Advantage in the Marketing Strategy

 Strong product line: Procter & Gamble have a strong presence with a large
number of brands within each product categories such as Healthcare products,
grooming products, fabric care & home care, Beauty products and baby & family
care products.
 Market Presence: P&G as of now sells its products in more than 180 countries
through it fully owned business units or joint ventures. With such as large
presence, company’s distribution network has been successful in making its
products available to remotest areas of the regions.

Distribution Strategy in the Marketing Strategy

Handling end to end distribution channel through its own resources or through the
third party has helped the company to make its products available in the market. P &
G is investing in building more flexible, agile and faster distribution network so as to
align its inventory management system with those of channel partners. It makes its
products available in the market through distributors, resellers, retailers, e-
commerce sites etc.

Brand Equity in Marketing Strategy

Whether through CSR activities or advertisements or positive word of mouth, P&G
has been successful in creating high awareness among the customers worldwide.
Engaging with customers on the first moment of truth i.e. when customers look for a
product and the second moment of truth i.e. when the customer uses the product
has helped the company in co-creating the products as per the market

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Competitive Analysis in Marketing Strategy
P&G is facing competition across the globe from the companies with similar offerings
and various private label players affect its businesses. The main factors on which
companies in this industry compete are quality, distribution network reach,
product portfolio, and many others.

Market Analysis in Marketing Strategy

Companies working in FMCG industry are facing tough competition from local,
national and international players. This industry in itself faces several risks like
government regulations, natural calamities, supply & demand side risk and risk
associated with the stakeholders of the business which can affect the way company
is functioning.

Customer Analysis in Marketing Strategy

Customers of P&G is Pop & Moms store, drug store, departmental stores,
supermarket chains, distributors and e-commerce companies. P& G works
collaboratively with their customers to enhance and enrich their customer
experience

Brand Equity in Marketing Strategy

Whether through CSR activities or advertisements or positive word of mouth, P& G
has been successful in creating high awareness among the customers worldwide.
Engaging with customers on the first moment of truth i.e. when customers look for a
product and the second moment of truth i.e. when the customer uses the product
has helped the company in co-creating the products as per the market.

2.5 Marketing Department’s Structure

P&G operates through six industry-based Sector Business Units: Fabric and Home
Care, Baby and Feminine Care, Family Care and P&G Ventures, Beauty, Grooming,
and Health Care. We manage our 10 product categories within these SBUs.

Figure: P&G structure for product marketing globally

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In each Focus Market, Market Operations works across the six SBUs on scaled
market services and capabilities, including customer teams, transportation,
warehousing, and logistics and representing P&G externally

The rest of the world is divided into Enterprise Markets, which are responsible for
revenue, benefit, and value development. To achieve these mutually agreed-upon
business goals, the SBUs provide the Enterprise Markets with innovation plans,
supply plans, and operating frameworks. Because of their competitive market
growth rates, Enterprise Markets are critical to P&G's future. The intent is to
accelerate this growth and value creation

This structure enables a more empowered, agile and accountable organization to

accelerate growth and value creation.

The other departments facilitate the marketing department and organization’s

business in following ways

 Supply Chain is simpler, faster and more market facing, with single point
representation, unlocking speed and agility.
 Finance teams protects and creates value by driving sustainable financial
performance and greater efficiency.
 HR works to provide the skills and culture required to stay agile, customer
focused and ahead of the competition.
 R&D have a representative on each global business team who links teams to the
appropriate resources required.
 Lastly, customer department organizes to effectively serve the consumer across
all these channels, and in a more joined-up way.

2.6 Value Creation for Customer

P&G have been creating value for customer now and then, they are creating value
for the stakeholders by placing consumers and their interest at the first priority of
their organizational motives as highlighted in the mission statement above;

Innovation
P&G leads the companies who applied concept of open innovation successfully in
the world. Procter & Gamble Co. as the world's 40th biggest and 84th innovative
company created the web site for this propose which is known Connect + Develop to
encourage open innovation to help them to drive employee productivity. P&G's
open innovation strategy has enabled to establish more than 2,000 successful
agreements with innovation partners around the world. C+D already has delivered
strategic value all across the company, and a series of game-changing consumer
innovations. In 2012, P&G invested more than $2 billion in innovation. As a result,
P&G was this year's big winner for the 2013 New Product Pacesetters list, launching
seven of the top 10 most successful none-food products of the year. This paper

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firstly aims to describe the open innovation concept and innovation process in the
example of P&G and reasons for the necessity of innovation.
Continuous Improvement
The company Procter and Gamble saves all the data for their achieved service and
occurred cuts in their databases giving us a vast amount of data to analyze. At the
moment there is no simple system though that could give the insight you want at a
specific level on the go.
Market Development
Speaking at the Barclays Back to School Conference in Boston, AG Lafley outlined
four areas in which he was making changes. As well as value creation, he cited
investment in innovation and go-to-market capabilities, the acceleration of
productivity savings and the improvement of operating discipline.
"When we introduce new products with superior product benefits and communicate
those benefits, we create a value accretive proposition for a group of consumers,
“Chief Executive declared, offering Crest 3D White as an example.
People Needs
Under Lafley, P&G launched a program to have its managers actually live with
representative customers called “Living It.” Dubbed “immersion research,” P&G
managers and even senior leaders spend time in low-income homes around the
world in order to understand what matters to their customers in life, as well as their
desires, aspirations, and needs. P&G has a bevy of statistics to suggest that improved
insights and assumptions have led to more effective innovations – including laundry
detergent with more noticeable suds.
These approaches are straightforward and make common sense, but they often run
counter to established management norms. Importantly, consumer or partner
insight gathering is very different from market research. The weaknesses of market
research are by now common wisdom. Yet, understanding the sometimes-hidden
needs of the market through customer observation through live-in immersion or
video observation is just coming to the fore–and not a moment too soon.

Superiority to win with Customers

Within our 10 categories they are creating superior, science-based products
delivered with superior packaging, consumer communication, retail execution and
value in all price tiers where they compete. This is the basis for competitive
advantage; meaningful and noticeable superiority across all elements of our
consumer proposition. Superior offerings drive market growth, creating a winning
proposition for all concerned.
Superiority is a high bar. Our products must be so good that consumers recognize
the difference. Our packages must be attractive, convey brand equity and close the
sale. Our communications must create awareness, demonstrate superior
performance, and create the desire to purchase. In stores, our retail execution must
include the right product forms, sizes, and price points, shelving and merchandising
execution. Online, our retail execution must include the right content, assortment,
ratings, reviews, and search and subscription offerings. Finally, our consumer value
equations must represent a good value of the total proposition, and for customers,
include important items like market growth, penny profit and margin.

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We continue to raise the bar on all five vectors of superiority because when we’re
superior on at least four of five, we more consistently drive market growth, sales,
profit, household penetration and value share.
P&G recently received two honors that recognize the progress we’ve made. The
Cannes Lions Festival of Creativity named us the #1 Brand Marketer of the Decade,
and Target recognized us as their supplier of the year, across all product categories.
We’ve made investments to strengthen the superiority of our brands, and we’ll
continue to invest to extend our margin of advantage and quality of execution,
improving options for consumers around the world.

Capturing Customer
P&G has been trying to capture customers along with every individual by winning
hearts in different ways such as operating within the spirit and letter of the law,
maintaining high ethical standards wherever they conduct business. They actively
seek business relationships with partners who share our values and promote the
application of these high standards among those with whom they do business.
1) Legal Compliance: External business partners must follow the law at all times.
External business partners and their employees must ensure they understand
how these standards and the law apply to their work on behalf of P&G.
2) Human Rights: P&G respects internationally recognized human rights as
defined by the Universal Declaration of Human Rights and Associated
Covenants, and the International Labor Organization (ILO) Declaration on the
Fundamental Principles and Rights at Work.
3) P&G’s external business partners will not use child labor. The term child
refers to a person younger than 15 (or 14 where local law allows) or, if higher,
the local legal minimum age for employment or the age for completing
compulsory education. P&G prohibits assigning young workers (i.e., under 18
years of age or as defined by local law) to hazardous work based on age limits
and types of work (e.g., night work) defined by local law.
In this way they are portraying deep impacts on the hearts of consumers and
capturing their hearts for life time.

2.7 How has the company evolved the management of its customer
touch points?

Superior products: Products so good, consumers recognize the difference. Superior

products raise expectations for performance in the category

Superior packaging: Packaging that attracts consumers, conveys brand equity, helps
consumers select the best product for their needs, and delights consumers during
use.

Superior brand communication: Product and packaging benefits communicated with

exceptional advertising that makes you think, talk, laugh, cry, smile, act and buy — 
and that drives category and brand growth

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Superior retail execution: In-store: with the right store coverage, product forms,
sizes, price points, shelving and merchandising. Online: with the right content,
assortment, ratings, reviews, search and subscription offerings.

Figure: Customer touch points

Superior consumer & customer value: For consumers: all these elements presented
in a clear and shop-able way at a compelling price. For customers: margin, penny
profit, trip generation, basket size, and category growth.

Figure: Customer touch points

2.8 Strategy for Product Development

Procter & Gamble applies product development to support continuous business

growth, while addressing competition. It is about connecting 'what's needed' with
'what's possible' combining everything with leading-edge technology.

P&G conducts product research for this purpose. Scientists in this field study how
people use products at home and search for ways to enhance and simplify the
experience. With their product background, they can make connections between
what is needed and what the products can deliver.

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These prototypes are tested on the consumers to check that they work. The cycle of
learning is cyclical; design a new product - test it on consumers - modify the design
based on what is learnt - and then test the modified product again until get it right.

Figure: Animation for Ariel

P&G have more than 1,700 scientists and researchers worldwide; many of those
have PhDs.

The research carried out falls in the following two categories:

a) Qualitative research: It involves small groups of people, and requires in-

depth interaction between the researcher and the group.
 Focus-group discussions
 In-home visits
 In-context visits
 In-store interviews

b) Quantitative research:Quantitative research is used to measure large

amounts of data or to evaluate new ideas or prototypes. It involves larger
groups of people and statistical analysis of data.
 Habits and practices
 Blind tests
 Concept-aided usage tests

2.9 Brand-driven Innovation Strategy

With superior, irresistible innovation, P&G is reinventing the consumer experience

by identifying and expanding brands that consumers trust and love. P&G has been
showcasing its innovation at CES, the world's largest gathering of new and emerging
consumer technology, since 2019.

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For 2021, it re-imagined the Life Lab as the P&G Life Lab Everyday Virtual Experience.
It provides a behind-the-scenes look at our commitment to reinventing consumer
experiences and making progress toward a better future for our society and our
planet.

Growth Works:
P&G lean innovation model, Growth Works, is a unique and disruptive approach that
enables to accelerate and elevate product research and development processes.

It leverages the strengths that come with being one of the largest consumer goods
manufacturers while also embracing the agility of a start-up. The results speak for
themselves. P&G has already launched many successful experiments, and currently
its running nearly 200 more.

Integrated Work Systems (IWS):

IWS is an operational excellence program that ensures superiority in manufacturing
and supply chain performance.

IWS provides a structured program that unleashes the power of people through
capability building and focusing everyone, every day on loss elimination. It creates an
inspiring workplace where continuous improvement is the driving force to delight
consumers and customers with superior products and value.

P&G has made IWS available for other companies to leverage via our partnership
with EY.

2.10 Pricing Strategy

Procter & Gamble applies prices that maximize revenues and profits. The company
adjusts its prices according to the conditions of the consumer goods market. The
following pricing strategies are relevant to Procter & Gamble’s business:

1) Market-oriented pricing strategy:

In the market-oriented pricing strategy, competitors’ prices and related pricing
trends are used in determining the prices of many of Procter & Gamble’s consumer
goods. For example, this pricing strategy is applied for the company’s detergent
products.

2) Product bundle pricing strategy

The product-bundle pricing strategy implements prices for groups or sets of products.
For instance, Procter & Gamble uses this pricing strategy in sales to businesses via
P&G Professional. This strategy is also occasionally applied for special offers that
promote certain products via retail stores.

3) Premium pricing strategy

The premium pricing strategy sets prices that are relatively higher than the market
average. Procter & Gamble uses this strategy for some of its products, such as those

23
under the Olay brand. Such strategy contributes to maintaining perceived premium
value for the company’s premium brands. Based on this element of the marketing
mix, Procter & Gamble has a multi-pronged approach to setting the prices for its
consumer goods.

2.11 Dynamics and Key characteristics of consumers

Geographic Demographic Psychographic Behavioral

a) World region a) Age a) Social class a) Occasion
b) Climate b) Sex b) Lifestyle b) Benefit
c)Density of population c) Family size c) Personality c) Usage rate
d) Income d) User status
e) Occupation e) Loyalty status

1. Geographic Allocation:

 World Region:
P&G operates almost in all the regions of the world which includes:
 Asia Pacific
 Europe
 Greater China
 India, the Middle East and Africa (IMEA)
 Latin America
 North America

 Climate:
Based on climate condition P&G segments its market. For example, P&G
segments its market of coffee based on temperature of different regions of the
world. It has hugely concentrated its coffee markets such as “Millstone”, “Home
coffee” in the cold and Scandinavian countries.

 Density of Population:
Based on density of population P&G is considering its market segments. It has
fewer marketing opportunity in African region with very small population rather
than in the Asian part, a huge markets of consumer products. Even it has no
manufacturing plant of certain products in Africa.

2. Demographic Allocation:
P&G divides its market into groups such as:

 Age:
P&G produces its products on the basis of age such as ‘Crest’ a kind of
toothpaste for kids with different flavors such as Kids Crest Cavity Protection
Sparkle Fun. Another paste for adult is Crest Nature’s expression pro-health.

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  Sex:
P&G introduced products both for Male (Boss, Gillette and Braun) and for Female
(Olay and Always).

 Family Size:
For large and extended family, they produce “96-tissiues Puffs Plus”. For small
family they produce “60-tissiues Puffs Plus”

 Income:
For affluent customer use “Gillette Fusion” with 5 blades. And for low income
leveled customer use “Mach3”.

 Occupation:
For a corporate executive use a low fragranced perfume on the other hand, a
model uses high fragranced perfume.

3. Psychographic Allocation:
By psychographic segmentation P&G divides its consumers and buyers into different
individual groups based on social class, life style, life cycle and personality
characteristics. But people in a same demographic group can have very different
psychographic makeup.

 Social class:
Social class means the classification of the people who live in the society such as:
upper class, lower class and middle class. Here we see that, P&G segmented its
products according to social class.

 Lifestyle:
People maintain different lifestyles. Some leads luxurious life, some lead casual
life, again some lead ordinary life. These distinct lifestyles play an important role
in the market segmentation of P&G.

P&G produces different shaving blade such as ‘Gillette Twin Blade’, ‘Gillette MP3
Power’, and ‘Gillette Fusion for different life styles. It also manufactures and
markets “Febreze” an air-freshener highly usable in air conditioned room for
people who lead a luxurious life.

 Personality:
P&G has used personality variables to segment market. For
example, P&G introduced a sort of decaffeinated coffee named ‘Millstone’ for
the late nighters to retain the energy during the whole night. And another flavor
named ‘Folgers’ for normal users.

4. Behavioral segmentation
By behavioral segmentation P&G divides the buyers into groups based on their
knowledge, attitudes, uses, or responses to a product. The company marketers
believe that behavior variables are very crucial in segmenting markets.

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  Occasion:
P&G generally produces those products which are used in our daily life.
Sometimes in some occasions it puts its concentration in some selected products.
In different types of occasions, it often provides offers like “buy one and get one”
or “buy it and get 20% extra”.

 Benefit:
Benefit segmentation means dividing the market into groups according to the
different bents that consumers seek from the product. P&G has already found
that people want to get several benefits from a product class and here P&G has
identified several different laundry detergent segments.
Each segment seeks a unique combination of benefits, from cleaning and
bleaching to economy, fabric softening, fresh smell, strength or mildness or only
a few.

 Usage rate: P&G segmented their market into light user, medium user, and
heavy user.

 User status: P&G has already segmented their products into groups of ex-
users, potential users, first users and regular users.

 Loyalty status: It’s a very important marketing strategy of P&G for retaining
and increasing customers of products. And P&G segments their market by
consumer loyalty. Consumers can be loyal to brands i.e. Tide, Gillette etc.

2.12 Channel Management

Abudawood Pakistan acquired sales and distribution rights of Procter and Gamble in
2008 and since then Abudawood Pakistan and Procter and Gamble have established
a relationship of trust that has nurtured over the period of time to generate
favorable results for both companies along with a strong relationship.

Leading the evolution of sales management in Pakistan, Abudawood Pakistan

penetrated deeply across channels. Abudawood devised a distribution plan to
ensure that the client's products were available through all applicable channels, with
the right product assortment. Based on research, data analysis, and market learning,
the company identified key business drivers for each channel. It explored new
channels to get products to shoppers in addition to expanding existing channels.
Following are the channels through which distribution occurs:

1. General Trade 2. Institutions

High-Frequency Stores CSDs
Wholesale Utility Stores
Modern Trade Hospitals
Trusts

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3. E-commerce 4. Global Customers
Metro
Hyperstar
5. Sub Distributors Spar

2.13 Financial Profile

Last fiscal year, P&G grew markets and increased household penetration in multiple
categories —driving top-line growth, bottom-line growth and market share. Organic
sales grew 6%. On a two-year stacked basis, organic sales growth has accelerated
from 3% (across fiscal years 17 and 18) to 6% (across fiscal years 18 and 19) to 11%
(across fiscal years 19 and 20) indicating the underlying strength of the brands and
the strategy which are driving the business.

On the bottom line, core earnings per share were up 13% versus the prior year. On a
constant currency basis, core earnings per share were up 17%. All-in GAAP earnings
per share were up significantly versus a year ago because of last year’s one-time,
non-cash accounting charge to reduce the carrying value of the Gillette Shave Care
business.

Adjusted free cash flow productivity was 114%.

It’s important to note that P&G were at 6% organic sales growth, 18% core earnings
per share growth, and 96% adjusted free cash flow productivity for the first half of
the fiscal year, before the impact of the pandemic.

P&G sustained its strong performance in the second half of fiscal year 2020,
overcoming numerous challenges such as the Chinese lockout, channel closures,
operational challenges in safely staffing facilities and sourcing materials needed to
sustain production, and a substantial increase in production in certain categories to
meet increased customer cleaning, health, and hygiene needs.

Organic sales increased in nine of ten product categories. In the teen years, home
care and personal health care rose in popularity. Family Care increased by a factor of
ten. Fabric Care and Feminine Care both increased by double digits. Hair Care, Skin &
Personal Care, and Oral Care all experienced double-digit development. Grooming
increased by 1%, while Baby Care decreased by 1%. E-commerce organic sales grew
40% and are now over 10% of our total Company sales.

P&G delivered very strong results in the two largest and most profitable markets.
The U.S. grew organic sales 10% for the year, including 5% growth in the first half of
the fiscal year. Greater China grew 8%, including 13% organic growth in the first half
of the fiscal year.

27
P&G returned $15.2 billion of value to share owners through a combination of share
repurchases and dividends. In April, P&G announced a 6% increase in the dividend.
This was the 64th consecutive annual increase and the 130th consecutive year in
which P&G has paid a dividend.

Figure: Financial Performance of P&G Globally

P&G’s Financial Performance in Pakistan

The company owns such iconic brands as Always, Ariel, Gillette, Head & Shoulders,
Olay, Pampers, Pantene, and Vicks, in addition to many others. It owns 20 brands
that each individually have sales exceeding $1 billion.

Figure: P&G Pakistan Revenues

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It has streamlined and expanded its operations over time, establishing local
manufacturing for a number of products, including Ariel, which was the company's
first product to be manufactured locally, and Safeguard. To further localize its
revenue sources, the company invested $150 million in local manufacturing facilities
over the first 25 years of its existence in Pakistan.

Pakistan was one of the top 10 emerging markets on which the company's global
parent confirmed it would concentrate investment over the next decade in 2013.
P&G Pakistan Country Manager Faisal Sabzwari told The Express Tribune in an
interview: “We have a very clear intention that we will continue to increase localized
manufacturing in Pakistan.”

In 2019, the company announced that it would invest $50 million in the local
manufacturing of Pantene and Head & Shoulders brands of shampoo locally, through
a 58-acre production facility located at Port Qasim.

At the time, Sami Ahmed, vice president at P&G Pakistan said, “We are committed to
contributing our share in the economic development of the country. Our latest
investment is testimony to our long-term commitment to Pakistan. For over 25 years,
we have been serving consumers with high quality products and have made
significant investments of over $150 million in fixed assets to date while nurturing
and developing Pakistan’s finest talent and making them business leaders.”

Later in 2019, the company reached another milestone: not only did it stop
importing Safeguard from other countries and start producing it locally, but it also
started exporting Safeguard from Pakistan to 20 European countries. Total exports of
Procter & Gamble Pakistan products totaled Rs1,838 million ($11.6 million) for the
fiscal year ending June 30, 2020, with Safeguard exports accounting for the majority
of that. Safeguard has taken a full 180-degree turn in Pakistan. It has progressed
from being an importer to a domestic producer to now being an exporter.

Figure: P&G Pakistan Profitability

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Procter & Gamble has totally changed its market strategy in terms of imports and
domestic manufacturing over the last decade. Imports accounted for more than 75%
of the company's sales in 2010, while local production accounted for less than 25%.
By 2020, those figures have more than reversed: local production now accounts for
more than 82 percent of sales, while imports account for less than 18 percent.

Procter & Gamble Pakistan's gross margins on imported goods have been lower for
the majority of the last decade, and have been steadily lower for the past five years,
as seen in the graph. P&G's gross margin on locally produced goods was 32.4 percent
in 2020, compared to just 19.5 percent for imported products.

Figure: P&G Pakistan Localisation Drive

Figure: P&G Pakistan Profits

Procter & Gamble, the world's largest personal care goods firm, has agreed to start
local manufacturing of Pampers diapers in Pakistan in April 2021, Always sanitary
pads in June 2021, and Safeguard liquid soap in 2022, according to sources familiar
with the matter. This is in addition to the public announcement that its subsidiary

30
Gillette will start manufacturing razors locally as well. Sources told Profit that the
Gillette manufacturing is likely to begin in 2022 as well.

2.14 SWOT Analysis

Strength:
 Brand equity
 Economies of scale
 Excellent research and development
 High gross profit margin
 Product innovation
 Offers multiple products
 Strong brand image to keep
 Strong customer loyalty
 Diversified business structure

Weaknesses:
 Views Product performance only
 Customer concentration
 Loss due to closure of brands
 Organization structure causes slow decision making
 Regular change is needed.
 Increased promotional spending to keep healthy sales

Opportunities:
 Going green/eco-friendly
 Emerging markets
 Mergers and acquisitions
 Increase organic growth
 Selling directly to consumers
 Better product experience

Threat
 Substitute brands that have cheaper price
 Slowdown in consumer spending
 Key competitors expanding their product portfolios through acquisitions
 Increased cost of raw material.
 Private labels

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3 PROBLEM DEFINITION
1) Products:
 A great competition to pampers from other competitors. How can pampers deal
with it?
 The competitors of Ariel, such as Sunlight and Bonus have captured the market
of smaller cities of Pakistan, while Ariel is lacking behind? What P&G should do
to capture this segment?
 Head and Shoulders and Pantene PRO-V are not having variety as its competitors
like Dove shampoo (Intense repair, Dryness care, Dandruff care, Daily shine,
Environmental defense, Oxygen moisture, Split end rescue, Hair fall rescue,
Nourishing oil care and many more) due to which the competitors are capturing
the market.
 Olay is not active in Pakistan as the other beauty products. What steps can be
taken by P&G to for the promotion of Olay?

2) Low market share:

The market share of P&G’s products is as follows

 Fabric and Home Care = 10.74% (low)

 Baby and Family Care = 35.3% (medium)
 Beauty Care = 14.96% (low)
 Health Care = 4.75% (low)
 Grooming = 70.09% (high)

How to deal with the segments having low market share?

3) Marketing Department Strategy:

Regarding all the products in Pakistan, P&G is doing undifferentiated marketing

whereas the competitors are focusing on differentiated marketing.

4) Social Media Marketing Strategy of P&G:

What kind of Social media marketing strategy does P&G have in Pakistan?

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4 ALTERNATIVE AND RECOMMENDATION
1) Solution to Product’s Problem:
 P&G can redesign their pricing strategy for Pampers. The price of Pampers are
around 1.5 times the price of diapers provided by other bigger brands like Molfix
and Canbebe which shifts the general public’s focus toward these brands.
 Ariel, Surf Excel and Brite are pure detergents and this is the reason they are
expensive than Bonus and Sunlight washing powder as they are surfactant, not
pure detergents hence they are less expensive and captures the market of
smaller cities in Pakistan. P&G can overcome this problem by introducing
washing powder like Bonus and Sunlight in Pakistan with lesser price to gain
market. P&G has a similar product “Tide” which is not introduced in Pakistan yet
which can easily capture the market of smaller cities of Pakistan. P&G can
introduce Tide in Pakistan with lesser price than these products to overcome
this problem.
 P&G can introduce different varieties in “Head and Shoulders” or “Pantene PRO-
V” like Dove shampoo (Intense repair, Dryness care, Dandruff care, Daily shine,
Environmental defense, Oxygen moisture, Split end rescue, Hair fall rescue,
Nourishing oil care and many more) to gain edge over Dove and other shampoos.
 To make Olay active in Pakistan, P&G should devise better advertisement and
promotion strategy for Olay, like Unilever has for Dove, Ponds and Vaseline and
L'Oreal has for Garnier.

2) Solution to Problem of Low Market Share:

P&G can subdue the problem of low market share in the segments like health care,
fabric and home care and beauty care in following ways.

 Providing better features, costs and advantages in their products and services
than the competitors.
 Bringing innovation in their products and features according to the needs of the
customers. Taking valuable feedback from the customers and convey the
improvements told by the customers to relevant process and design
departments so that they can bring developments in their products.
 If P&G’s profitable and existing customers stop buying their product, they should
then figure out the reasons and should work to resolve them.
 Enhancing the means of communication with the customers. P&G should try to
identify the needs and expectations of the customer and make the promotions
and advertisements accordingly.

3) Solution to Marketing Department Strategy’s Problem:

Out of the variety of products P&G is producing worldwide, it has brought only few
products to Pakistan e.g. Pampers, Ariel, Always, Head & Shoulders and Pantene
PRO-V, Vicks and Safeguard due to which it is doing undifferentiated marketing. In

33
order to capture the market more, P&G needs to bring more of it products to
Pakistan and when more products will be brought then in this case the company will
have to do differentiated marketing in Pakistan as it is doing all over the world.

4) Solution to Social Media Marketing Strategy of P&G:

P&G is currently having presence on Facebook. P&G can device its strategy to show
its presence over different social media platforms which include Instagram and
YouTube. It can promote its products through social media artists, V-loggers and
bloggers by paid promotion.

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