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SUBMITTED BY: AHMER CHISTI DILAWAR ALI FARZAL KHAN JIBRAN KHAN M.MUZAMIL UMAIS QURESHI
ACKNOWLEDGEMENT
We would firstly like to thank Allah (SWT) for His guidance and bestowing His utmost blessings in the most difficult times during this project. Furthermore, we are thankful to our course instructor Sir. Kamil Yousuf for his support and supervision. Finally, we would also like to thanks our seniors who gave us guidance and help us for making this report more professional. We also appreciate all the members of our group that co operated with us, especially; Ahmer chisti Farzal M. Khan Dilawar ali M.Muzamil Umais Qureshi This has been a one of a kind experience where we feel that weve learnt a lot and have enjoyed carrying out this assignment. After reading this report we hope you will feel the same way too.
EXECUTIVE SUMMARY
Procter & Gamble is the largest maker of consumer packaged goods in the world and the largest advertiser in the United States. P&G is behind some of the most popular beauty care, household care and health items on the market. P&G is a great company with great leadership and employees, and highly satisfied customers. P&G will be around for the next 100 years. P&G will continue to grow high single digits even in this economy because of the breadth of its products, creativity and innovation, global market share, and delighted repeat customers who will not buy another brand We found that P&G is the strongest among its competitors in all aspects. P&G have two competitive advantages which are innovation & human resource & they working hard to keep them up. P&G have many levels of strategies an overall for sustainability & environment P&G have significant current success sides & achievements based on certain core competencies like understanding consumer, go to market capability, scale, innovation & brand building. P&G have very impressive future plan which treat all the weaknesses they have whether internally or externally with time limits & clear goals. Finally, we concluded that P&G is not only the larger brand and the category leader but it is also the most efficient company and is strategically placed to continue its market dominance without any real threat.
INTRODUCTION TO P&G:
PROCTER & GAMBLE IDENTITY: Is a Fortune 500, American multinational corporation headquartered in Cincinnati, Ohio, that manufactures a wide range of consumer goods. As of 2008, P&G is the 8th largest corporation in the world by market capitalization Procter & Gamble is the largest maker of consumer packaged goods in the world and the largest advertiser in the United States. P&G is behind some of the most popular beauty care, household care and health items on the market. P&G is credited with many business innovations including brand management and the soap opera. HISTORY: Established in 1837, The Procter & Gamble Company began as a small, family operated soap and candle company in Cincinnati, Ohio, USA. Today, P&G markets almost 400 products to more than five billion consumers in 180 countries, 1837 Brothers-in-law William Procter and James Gamble start a partnership, making and selling candles and soap in Cincinnati. William Procter quickly established himself as a candle maker. James Gamble apprenticed himself to a soap maker. The two might never have met had they not married sisters, Olivia and Elizabeth Norris, whose father convinced his new sons inlaw to become business partners. In 1837, as a result of Alexander Norris' suggestion, a bold new enterprise was born: Procter & Gamble. On April 12, 1837, William Procter and James Gamble start making and selling their soap and candles. On August 22, they formalize their business relationship by pledging $3,596.47 apiece. The formal partnership agreement is signed on October31, 1837.
ABOUT SAFEGUARD
Safeguard is a leading Brand of antibacterial soap. It is the Doctors No. 1 Choice. Safeguard helps you to protect your familys health Launched in Pakistan in 1995 by Procter & Gamble (P&G), Safeguard has set new standards for defining "health & hygiene" in Pakistan. that provides superior longer lasting germ protection for the entire family. Launched in Pakistan in 1995 by Procter & Gamble (P&G), Safeguard has set new standards for defining "health & hygiene" in Pakistan. It is recommended by health experts across Pakistan. Safeguard's vision is to build a healthier Pakistan by working at a grass root level with the medical community to empower and enable masses to adopt healthy hygienic practices. It enable you to live life to the fullest, by guarding your family against germs which are found everywhere, even on apparently clean surfaces.
MARKET TREND
The use of tissue paper & wipes has been consistently increasing as the Pakistani population gets more urbanized and it has greater access to the products through an increasing variety of distribution channels. The increase in unit prices is a slight hindrance in the way of growth, The importance of tissue paper as an everyday necessity, a very small consumer base and its small part in the total expenditure of households and businesses have made sure that even in periods of high inflation and an economic downturn the sales are still growing. OUT BREAK OF DISEASE:
Our unique innovative capability is based on: o A deep understanding of consumers, o Capability to acquire, develop and apply technology o The ability to make "connections" between consumers' wants and what technology can deliver FEATURES AND BENEFITS: Perfect for quick cleanups of dirt and messes without drying skin Kills 99.99% of germs Wet wipes are an effective solution to keeping when soap and water are not available Hypoallergenic and enriched with skin-conditioning aloe Portable and convenient
hands
clean
Extremely convenient & portable Very Cheap Fragrance Different colors Different sizes Attractive Packaging Non Greasy Durability
How Safeguard antibacterial Wet Wipes helps you? Antibacterial Hand Wipes are useful for situations when you or your family come into contact with germs in public areas. In the absence of soap and water, Antibacterial Hand Wipes kill 99.99% of germs just as effectively as an alcohol-based gel hand sanitizer but they also clean away dirt and messes, and won't dry out your skin like alcohol-based sanitizers. Consider using antibacterial wipes to sanitize hands on the go. USAGE: Travel - To wipe hands after touching tray tables, blankets or luggage during airplane, bus or train rides (avoid the hassle of liquid gels at airline security). Shopping - Store in your car to clean hands after touching money or visiting common dressing rooms. Commute to work - Carry in your purse or briefcase when coming into contact with banisters, elevators, escalators and mass transit. At work - Keep at your desk to reduce germs on hands after using computer keyboards, phones, meeting rooms and shared kitchens. Socializing - Add to your bag or purse for use after shaking hands, visiting restaurants or sitting in public areas. School - If you have other children, pack in the backpack so they can use them as needed prior to lunch, after recess or between classes or when riding the bus.
Flavor can be available in: Fresh scent Citrus scent Extra Gentle Cucumber Extracts ( Safe Baby Clinically proven)
SITUATIONAL ANALYSIS
A Wet Wipe is not a major consumerable item but, there is a huge demand and potential in this market particularly the anti bacterial segment. The anti bacterial market segment has grown year on year by more than 7 % percent due to increased consumer awareness and education on the benefits of anti-bacterial products. As a result, the pie is growing bigger every year. Some uncontrollable situational factors that are faced are as follows; Although the demand for P&G products is very high but when we talk about the demand for the Safeguard Anti-bacterial Wet Wipes is not very popular in the antibacterial category. The market share of Safeguard anti-bacterial soap is more or less than 50 % in Pakistan out of the Rs 11 billion soap market. is no direct competitor of anti-bacterial Wipes at the time of launching but today; two brands are directly competing Dettol (R&B) and lifebuoy (Unilever) which are our direct competitors. These are the uncertainties that are extremely variable in the political conditions of Pakistan. Constant political instability does affect the company in terms of building new relations with new governments all the time. Social and Cultural factors: The Company has to be very careful in the implementation of its promotional campaigns, since the social cultural environment of Pakistan is very conservative and any suggestive advertisements usually face a lot of negative reactions on the part of the consumer. Other factors: like the government regulations and technological advancements have had no significant effect on the product and the company.
MARKETING ANALYSIS
In the mind of the consumer, anti-bacterial product should have the following: A product whose core function is to clean skin, making it softer and smoother, while leaving a feeling of freshness behind. The key functional benefit is the complete protection from all germs/ bacteria and removes dirt, oiliness and other impurities from skin. Germs are not top-of-mind for the average consumer, but are a function of Dirt and disease. Research led us to know that consumers are largely unaware of the diverse nature of jaraseem. They just know that Germs (jaraseem) are the bad guys. They dont know that there are different types of germs. Different antibacterial competitors are trying to own a higher ground by building on already present germ-kill equity. Likewise, Safeguard is focusing on Din Raat Lagataar Tahaffuz which is more powerful in the mind of the consumer. Dettol has given its slogan of Dettol protects against a wide range of unseen germs, including bacteria and viruses Lifebuoy is following the germ busters strategy.
Time - When do you want to achieve the set objectives? Our Marketing Objective of Anti-Bacterial Wet Wipes Are: To gain 50% of Marketing share in 2012. (Assuming next year) To create higher recall of our brand among consumers. To diversify into another categories as well. To increase in the availability percentage of our brand in the beginning of year 2012. To increase the shop coverage over period of year 2011. To increase our product processing capacity with the time.
MARKETING STRATEGIES
According to the marketing goals of anti-bacterial wet wipes, we want to increase our market share by increasing the sale volume. Actually we are in the growth stage and we are using the following strategies to gain market share: 1. We are introducing new products. 2. We are entering new market segments. 3. We are improving the product quality and features. 4. We are increasing the shop coverage. 5. We are improving the distribution channels strategy. 6. We are spending nearly same amount on promotions schemes. MARKET SEGMENTATION & TARGETING STRATEGY: It is difficult for any one company to engage in mass production, mass distribution and mass promotion for its product. The complexities arise from the proliferation of advertising and distribution channels and the high costs associated with reaching a mass audience. Therefore, companies segment the market so that they can target the group of customers who share similar needs and wants. According to the consumers, which have different preferences in mind against anti-bacterial and its good for health. Keeping these things in mind Safeguard anti-bacterial wet wipes market has been segmented.
GEOGRAPHIC & DEMOGRAPHIC SEGMENTATION: Include almost all Urban; suburban; small towns. Gender Male; female Age 15years to 45 years Kids Age range 5-15 years Occupation: Students, Office employees, sportsperson.
Due to the income factor involved it can be said that our target a specific social class who are health conscious and concerned about their skin. PSYCHOGRAPHIC SEGMENTATION: On the basis of psychographics, Factors such as personality traits, lifestyles and values, the marketers at we have segmented the market more towards achievers who are goalOriented and focused on their careers, and experiences. One of them is young housewives and mothers who care about the health and well being of her family and educating children about health and hygiene. Our products have targeted for health conscious peoples. SOCIOECONOMIC STATUS: We have mainly targeting upper class and upper middle class in urban and sub-urban areas. There are primarily cities and their surrounding areas. Rural market penetration is limited and is primarily driven through indirect channels (e.g. Wholesale) BEHAVIORAL SEGMENTATION: There might even be switchers and shifting loyal in the anti-bacterial soap or in wipes sectors that are either price sensitive or want variety. As a result, we need to find ways to make the hard core loyal attracted to the Our Brand and shifting loyal and switchers to convert into hard core loyal as well.
MARKET POSITIONING
POSITIONING STATEMENT: To mothers who wipes for their kids and people who dont always have excess of soap and water and people who want germs free life that kills germs 99.99% and Protect, moisturize and nourish your skin. POSITIONING AGAINST COMPETITOR: Safeguard is positioned as a premium brand which focuses on children. Educate them Through the Famous Commander Safeguard Series and many other promotional campaigns. Safeguard is positioned as a premium brand which focuses on children. The children are the focal point for Safeguard soap educating them about health and hygiene through the famous commander safeguard series and many other promotional campaigns. Children are their ultimate focus as compared to the Dettol soap and lifebuoy, the former focuses on mothers in the family and later on children. POSITIONING IN RELATION TO PRODUCT ATTRIBUTE: The primary positioning via product attribute is that Safeguard anti-bacterial wet wipes has the essence of Triclosan Solution the no. 1 antiseptic brand in the world trusted by families everywhere for over a century. Hence, it is considered a premium brand in the anti-bacterial segment. It is very convenient, portable and easy to use and available in different sizes and flavors. POSITIONING BY PRICE AND QUALITY: As Safeguard is a premium brand, it is priced at a premium to its competitors (Dettol and Rose Petal). Being premium means there will be no compromise in quality as the link between price and quality exists and customer is always willing to pay more for perceived quality which in the case of Safeguard Antibacterial wipes, he/she does!
MARKET PROMOTIONS
POSITIONING TAGLINE: Jaraseem se Tahafuz din raat lagataaarrr tik tik tik tik tik ADVERTISING/PROMOTION STRATEGY: Pakistan is lacking in basic education and health and hygiene facilities to remain pure against germs and disease. P&G Safeguard have taken it on to improve the hygienic habits of the Pakistani Children through their different marketing campaigns like e.g. Global Hand Washing Day. TV COMMERCIALS: When it comes to advertising, SAFEGUARD prefers TV because of their philosophy that; HEALTH AND HYGIENE ALWAYS COMES FIRST. They usually prefer doctors in their TVCs to prove its authentication. COMMANDER SAGEGUARD: Commander Safeguard, the first animated superhero of Pakistan and the mascot of P&Gs brand Safeguard. This has been developed by Post Amazers, the largest animation house in Pakistan and the first with a truly global clients, using a memorable, engaging and child-friendly vehicle Commander Safeguard to spread and reinforce health and hygiene messages is far more effective with children than standard. SEHAT-O-SAFAI PROGRAM: The Sehat-o-Safai Program, supported by Safeguard has educated 2.2 million school children which cover ages of 5 to 11 and from all socioeconomic classes, in 8,000 schools, about better hygiene practices, especially regular hand washing. PRINT ADVERTISEMENT: Safeguard has aggressive and innovative approach in print ads so at time of launch of product the ads cover with all leading newspapers, banners at shops, Billboard, Etc Some are of them are:
SWOT ANALYSIS
THE STRENGTHS: The brands Germ-kill heritage is seen as strong and adds on trustworthiness. Excellent for treating skin irritations, perfect for quick cleanups of dirt and messes. Brand comes from a reputable (old) company Loyal following of Original Perceived as a dynamic, innovative and contemporary brand THE WEAKNESSES: Not perceived as an everyday using product No awareness of wipes Low Top-of-Mind recall THE OPPORTUNITY: Leverage the powerful brand equity associated with the Safeguard Brand to make Antibacterial wipes an everyday use proposition. People are becoming more health conscious. Trusted brand for providing education about health and hygiene Growing Market THE THREATS: Other main players in the antibacterial category (Dettol and Lifebuoy) have positioned their brands for everyday use against bacteria which also takes that benefit and experience!
BRAND COMMUNICATION
Our new Safeguard anti-bacterial wet wipes is following the AUTHOR model: 1. Awareness: First of all the company develops and awareness amongst the customers about the safeguard. 2. Understanding: After Developing Awareness it makes Understand the Brand to the Customers 3. Trial: A different event takes place for the trial of the Brands. 4. Happiness: After using the brand the customer feels Sense of satisfaction. 5. Only 1: The target audience of the safeguard considers the brand as the only wipe as an antibacterial in Pakistan. 6. Recommendation: The loyal consumer of safeguard recommends theirs friends and family to use safeguard wipes against germs.
COMPETITORS
DIRECT COMPETITOR: 1. Cool n Cool wet wipes. 2. Rose petal & Tulips. INDIRECT COMPETITORS: 3. Hand Sanitizer of DETTOL, SKINCARE and other. 4. J&J Baby softcare wipes and other Imported Baby wipes. 5. Happies & Nappies
BRAND CONTRACT
Long lasting and 24/7 protection against Germs. Healthy habits, Healthy bodies make Healthy Minds. Reduces Sweat Odor. Enhances Beauty by keeping skin clean.
BRAND PERSONALITY
By creating the personality of the caring mothers, the marketer injects emotion into the consumers learning and valuing process. Doing so brings the brand closer to the consumer through an emotional bond as mothers who want to perceive as caring, use Safeguard soap. Female 20-25 Caring mothers Scientific Persistent Practical
LAW OF CREDENTIAL:
The crucial ingredients in the success of safeguard are its claim to authencity. There is only one claim of safeguard since 1995 and all the consumers still believe in that claim made by safeguard. LAW OF QUALITY: No doubt, Doctors suggest their patients to go for safeguard against germs. It means that safeguard has the high quality and provides the same quality each time. LAW OF COMPANY: Safeguard is safety and P&G is P&G. There is a difference between brand and company. Consumers dont know safeguard because of the P&G rather they know safeguard because it is safeguard.
Machine
Rs. 25,000,000
Rs. 88,900,000
Rs. 1,200,000
Rs. 62,400,000
Rs. 300,000
Total
Rs. 88,900,000
Total
Rs. 88,900,000
COST OF PRODUCTION: DIRECT MATERIAL: NON-WOVEN FABRIC SPUNBONDED COST RS. 11,748,000 (QT. 2 TONS / DAY X 195800)= 391,600
DIRECT LABOR
SUPPOSE THAT 4 EMPLOYEES ARE WORKING ON A MACHINE @ 50 WAGE / HR AND TOTAL WORKING HOURS ARE 8 HR AND TOTAL WORKING DAYS WILL BE 26 DAYS A MONTH. THEREFORE , THE COST WILL BE: 4 EMPLOEES X 50 WAGE / HR X 8 HOURS A DAY X 26 DAYS = 41,600
FACTORY OVERHEADS AN ESTIMATED FACTORY OVERHEAD OF 10% OF DIRECT MATERIAL AND DIRECT LABOR IS TAKEN WITH RESPECT TO THE INDUSTRY STANDARDS FIXED RATES. THEREFORE , (11,748,000 + 41,600) X 10% = RS. 1,178,960
THEREFORE, THE TOTAL COST OF PRODUCTION WILL BE, DIRECT LABOR + DIRECT MATERIAL + FACTORY OVERHEADS = 41,600 + 11748000 + 1178960 = 12,968,560
SUPPOSE THAT 2 TONS OF NON-WOVEN WILL PRODUCE 200,000 PCS. OF WIPES / DAY. 200000 (NO. OF GOODS PRODUCED PER DAY) X 26 (WORKING DAYS) = 5200000 UNITS PER MONTH
NOW THE COST PER UNIT WILL BE; COST OF PRODUCTION / NO OF GOODS PRODUCE = COST PER UNIT 12968560 / 5,200,000 = 2.493
PROJECTED SELLING PRICE: Cost of each good = RS. 2.493g price of each good would become Profit margin is set to about 50% on each good. Therefore, Rs. 2.493 x 50% = 1.2465 This profit margin will be add in the cost of each good, 2.493 + 1.2465 = Rs 3.7395 Now the selling price of each wipe would become Rs. 3.7395.
WIPES IN PACKETS: 200000 wipes produce each day x 26 days = 5,200,000 / month One single packet will contain 15 pcs of wipes; Therefore selling price of each wipe 3.7395 x 15 = Rs 56 / pack. Total no. of wipes produce per month is 5,200,000 1 pack contains 15 pcs. Of wipes Therefore, 5,200,000 / 15 = 346,666 packets per month will be produce.
PROJECTED SALES: We are assuming that 90% of the goods will be sold from our total monthly production, because of its brand name and the popularity of the brand. Therefore, 346666 packets x 90% = 312,000 Total sales for the month will become;
COST OF GOODS SOLD Gross Profit Less. Expenses Maintenance Miscellaneous Transport Expense Marketing expense Administrative Expense Income from Operations
Rs. 20,000 Rs. 50,000 Rs. 60,000 Rs. 3,500,000 (4,130,000) Rs. 500,000 Rs.1,674,760
PAYBACK PERIOD: Total Share Holder Equity / Income from operations 88,900,000 / 1,674,760 = 53.08 53.08 / 12 = 4.42 years
REFERENCES:
http://www.how-to-branding.com/Best-Branding-Books.html http://www.how-to-branding.com/Logo-Design-Theory.html http://www.marketing-made-simple.com/articles/brand-building.htm#axzz1gbCI1RiK http://www.marketing-made-simple.com/articles/promotionalstrategy.htm#axzz1gbDLEjib http://www.google.com.pk/search http://www.amazon.com/Safeguard-Antibacterial-Liquid-HandSoap/dp/B003E0JXM4 http://www.pg.com/en_US/index.shtml http://www.pg.com/en_PK/news/pg_ioc_partnership.shtml http://www.docstoc.com http://www.pg.com/en_US/terms_conditions/index.shtml http://www.safeguard.com.pk/Letters-ArtPosters.asp http://www.wisegeek.com/what-are-antibacterial-wipes.htm http://www.antibacterialwipes.org/ http://www.pgpro.com/Default.aspx?tabid=101&product=220 http://www.utilitysafeguard.com/hand-sanitizer/ www.scribd.com/doc/51060689/Safeguard-Hand-Sanitizer http://www.pgpro.com/Default.aspx?tabid=37&Search=safeguard&options=+products