Marketing Strategy

PEST Analysis
Objectives Setting

Safeguard

Group Member:

Syed Hasan Jawad

Muhammad Mohsin Khan

PEST ANALYSIS:

It is very important that an organization considers its environment before

beginning the marketing process. In fact, environmental analysis should be
continuous and feed all aspects of planning. In this regard, PEST analysis for
safeguard soap is of pertinent importance. PEST analysis is important for scanning
the environment and look out for possible opportunities and threats.

Soap is a major consumer market and there is a huge customer demand and
potential market particularly in anti-bacterial segment. The anti-bacterial market
segment has grown year on year by more than 7% due to increased consumer
awareness and education on the benefits of anti-bacterial soaps. As a result, pie is
growing bigger every year.

There are some uncontrollable situational factors that are faced by Procter &
Gamble and Safeguard Soap. We would be analyzing all these factors as follows.

Political Factors:

The political arena has a huge influence upon the regulation of businesses, and the
spending power of consumers and other businesses. As far as political condition of
Pakistan is concerned, Pakistan is faced by extremely variable political situation.
Political stability in this region is very uncertain. Series of bomb blasts has left the
country at a very volatile position in the region. Similarly, government is clueless
about the political scenario in the country and hence the political factors in the
country are not encouraging by any stretch of imagination. Although government
policies about taxes are very clear and to some what extent are efficiently
implemented in case of multinationals. Government policies regarding economy
have been encouraging but due to recession the economic condition of the country
has been badly hit. Constant political instability has affected the company in terms
of building new relations with the government.
Economic Factors:

Economic factors in the country have also not been encouraging in the recent past.
Interest rates on borrowing have gone soaring high in the country. Consequently
the rate of unemployment is also on the rise which adds up to bad economic
condition of the government. Inflation has also increased in the recent past with is
another indicator of bad economic condition in the country. But despite all these
factor safeguard has been doing reasonably well in the country for the past few
years.

Sociocultural Factors:

Pakistan is a conservative country and therefore the mind set of masses is also on
the conservative side. The company has to be very careful in implementation of its
promotional campaigns, since the sociocultural environment of Pakistan is very
conservative and any suggestive usually face lot of negative reactions on part of
consumer. Although the people’s perception about international brands is very
promising, this is a great advantage for Safeguard and Procter & Gamble.
Country’s dominant language is Urdu; therefore Brand’s communication regarding
brand and health awareness has got to be in Urdu. Women are mostly responsible
for doing grocery in this part of the world. Therefore, Safeguard’s target market is
very obvious. Due to low literacy rate, awareness regarding environment and
health is not common among the masses of the country. Therefore, it is important
for Procter & Gamble to first create awareness about health and then cash on it.
Technological Factors:

Technology is vital for competitive advantage, and is a major driver of

globalization. Technology has been on the rise in Pakistan. Due to information
technology and other technological advancements in the country has enabled
companies to run promotional and advertising campaigns in an entire versatile
fashion. Latest technology has also enables companies to make cost effective
products. Due to advent of latest technologies, the distribution network has been
completely revolutionized.
 S.M.A.R.T Objectives setting for Safeguard Pakistan

 Increase the antibacterial soap market with a growth of 10% by end 2010 as
compared to 7% last year with increased awareness and education such as
“sehat and safai” program and “global hand washing day” on the benefits of
using antibacterial soaps.

 Current market share for safeguard Pakistan is 22% (end 2009) Increase the
market share to 30% by end 2010.

 Current Children equity is 60%.Increase the children equity to 70-75% by

the end of 2010 through safeguard’s school education programs across
Pakistan to instill the importance of hand washing.

 With the increase in demand increase in production is must. Investment of

$2.5 Million on the existing 7 acre production facility to double the
production by end 2010.

 Brand extension with the launch of the 8th variant of safeguard i.e. anti-
perspiring soap for men by end 2010.

 Direct competition with Lifebouy which has a market share of 15%. Bring
down their share to 13% by customer interaction and awareness programs.

 Current target social class is upper-middle and middle class in urban and sub
urban areas of Pakistan. To attract children of lower middle class to adopt
safeguard as primary soap through school awareness programs.

 25% increase in marketing budget to further carry on the commander

safeguard campaign and instill brand loyalty in children which are the main
target market.

 Focus more on the penetration strategy by increasing the distributers and sub
distributers from 300 to 400 and using PUSH strategy to increase the reach
of products to smaller cities such as Muzzafarabad, Shahdra, Sukker,
Gawadar etc.
 Increase the Rural Deployment force by 25% for exploring new markets for
potential market penetration.

 Increase promotional budget by 15% as a part of PUSH strategy to provide

key accounts such as Al-fatah, HKB, Metro, Makro, Hyperstar to provide
better shelf space.

 Increase the price by 1 Rupee to Rs 39.00 (115 gms) and Rs. 27.00 (70 gms)
before the end of fiscal year July 2010 for cost recovery.

 To make safeguard soap a Rs. 3 Billion brand from Rs. 2 Billion brand by
the first quarter of 2011.