Brand Management

Assignment No 1

Zunair Ali Syed

National College of Business Administration & Economics

Brand Management

Assignment No 1

ContentsCompany Introduction.................................................................................................................................................3

P&G Pakistan............................................................................................................................................................3

Facts about P&G Pakistan........................................................................................................................................4

MISSION STATEMENT..................................................................................................................................................4

Vision Statement..........................................................................................................................................................5

Organization Portfolio..................................................................................................................................................5

ESTABLISHMENT:.....................................................................................................................................................5

COMPANY TYPE:..........................................................................................................................................................5

BRANDS:.......................................................................................................................................................................5

Brand portfolio Pakistan..........................................................................................................................................5

SWOT ANALYSIS- P&G................................................................................................................................................11

STRENGHTS............................................................................................................................................................11

WEAKNESSES.........................................................................................................................................................11

OPPORTUNITIES.....................................................................................................................................................11

THREATS.................................................................................................................................................................11

Marketing Mix............................................................................................................................................................12

Product..................................................................................................................................................................12

Beauty and Grooming Brands............................................................................................................................12

Health and Well Being Brands............................................................................................................................12

Household Care Brands......................................................................................................................................12

Price:......................................................................................................................................................................12

Place.......................................................................................................................................................................13

Promotion..............................................................................................................................................................13

Competitors...............................................................................................................................................................13

Strategic management of Tide and Ariel....................................................................................................................14

Overview of Ariel Position in Pakistan....................................................................................................................15

Launch of Tide in Pakistan......................................................................................................................................17

Porter’s Five Forces Model........................................................................................................................................17

Threat of New Entrants..........................................................................................................................................17

Bargain Power of Supplier......................................................................................................................................18

Bargain power of Consumers.................................................................................................................................18

1 | P a g e

Brand Management

Assignment No 1

Threat of Substitute Products................................................................................................................................18

Threat of established rivals....................................................................................................................................18

Should P&G Pakistan add “Tide Detergent” in its portfolio or not?...........................................................................19

Pros and Cons of launching Tide in Pakistani Market.............................................................................................19

Conclusion................................................................................................................................................................. 20

References.................................................................................................................................................................21

2 | P a g e

Brand Management

Assignment No 1

Company Introduction

P&G Pakistan

Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in Pakistan in

1991. Our goal was to become the finest global consumer goods company operating locally in

Pakistan. To fulfill this goal, we are serving Pakistani consumers with 12 high-quality brands

locally that strive to make everyday lives better.

With commitment came growth, and in 1994 we acquired a soap-manufacturing facility

sprawling seven acres of land at Hub, Balochistan. In 2002, the plant tripled its soap-

manufacturing capacity with an investment of $3 million. In 2004, with an initial investment of

about half a million U.S. dollars, a PUR facility was set up with a production capacity of 50

million sachets of the water purifier annually. The P&G Hub plant is the single plant that

produces PUR globally. Today, the Hub plant is equipped with state-of-the-art manufacturing

technologies and quality assurance processes and systems, reflecting the company's values of

safe, hygienic and ethical manufacturing practices.

P&G Pakistan headquarters are consistently upgraded to the company's progressive values.

Investments of $1 million and a recent $600,000 investment have taken place in the work-space

environment to date. The P&G Pakistan head office today hosts high-speed digital networks and

advanced systems and facilities.

As a company with vast global experience, P&G always has believed in the potential Pakistan

has as a country. Since 1989, the total amount invested by P&G Pakistan in assets, working

capital and market development has exceeded Rs 6 billion. In addition, Procter & Gamble

contributed Rs 3.1 billion to the national exchequer in the form of taxes and duties during 2005

and 2006, increasing 13 percent over the previous year.

P&G has attracted outstanding individuals since the day it began operations in Pakistan. The

company employs more than 257 people and creates more than 4,000 jobs indirectly in Pakistan,

3 | P a g e

Brand Management

Assignment No 1

99 percent of which are held by Pakistanis. All this makes P&G a more locally focused

company.

Facts about P&G Pakistan

Procter & Gamble started its operations in Pakistan in 1991. 

P&G Pakistan is headquartered in Karachi.

P&G Pakistan has reinvested over $100 million in Pakistan within the last 12 years. 

P&G Pakistan has invested 63 million dollars over the last 5 years in terms of capital,

marketing and training. 

P&G Pakistan has contributed close to 7 billion rupees to the Pakistani government's

revenues over the last 5 years in the form of sales tax, customs and excise duties. 

P&G Pakistan creates more than 4,000 jobs in Pakistan. 99% of the jobs that P&G

Pakistan creates in Pakistan are held by Pakistanis. 

P&G Pakistan owns a sprawling 7-acre land manufacturing facility at Hub, Balochistan,

which manufactures Safeguard and Camay soaps. A recent 5 million dollar investment has

tripled the plant's capacity. 

P&G Pakistan runs several social marketing programs in the field of education and

health. These programs benefit more than 3 million people annually.

MISSION STATEMENT

We will provide branded products and services of superior quality and value that improve the

lives of the world's consumers, now and for generations to come. As a result, consumers will

reward us with leadership sales, profit and value creation, allowing our people, our shareholders

and the communities in which we live and work to prosper.

4 | P a g e

Brand Management

Assignment No 1

Vision Statement

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

Organization Portfolio

ESTABLISHMENT:

P&G is an American Global Corporation based on manufacturing a wide range of consumer

goods. It was born on October 31 1837, headquartered in Cincinnati, Ohio, USA.

As of 2008, P&G is the 6th largest company Market capital, 14th largest by profit and 6th in

Fortunes most admired companies list.

COMPANY TYPE:

Public company.

BRANDS:

P&G offers a variety of brands. P&G’s existing products grow through innovation and

renovation while maintaining a balance in geographic activities and product lines.

The Company's priority is to bring the best and most relevant products to people, wherever they

are, whatever their needs, throughout their lives.

　 Brand portfolio Pakistan

P&G’s products are found in almost every product category. Following are the list of brands

served in Pakistan:

5 | P a g e

Brand Management

Assignment No 1

Ariel Fabric cleaning and care at its best.

A moisturizing bar soap enriched with perfumes of French inspiration that

leaves your skin feeling fresh, soft and sensual.

Olay® offers an array of skin-care and personal cleansing products that provide multiple benefits

designed for women of all ages.

Always® offers great protection throughout your menstrual cycle to help you

live life to the fullest — without interruption.

We strive to bring innovation, inspiration and enjoyment to people's

everyday lives through our intelligently innovated, intuitively designed and carefully crafted

products.

6 | P a g e

Brand Management

Assignment No 1

Crest® toothpastes, toothbrushes, whiteners, flosses and rinses create healthier, brighter smiles

every day.

Whether you're monitoring a human heart, photographing outer space with

an IMAX® camera or simply taking a few snapshots at home, depend on Duracell®.

ESCADA is an international mark of luxury, elegance and quality, a

signature recognized around the globe for products of the highest standards.

The ESCADA brand stands for happiness in life — "Joie de Vivre" embodying a vivacious and

glamorous woman, following her instinct and ambition to make the best of every moment.

Introducing Gillette® Complete Skincare™ — the first line of advanced dermatologist-tested

skincare products made for men, by the people who know a man's face best. Gillette Complete is

designed to deliver the five signs of noticeably healthy-looking skin in just 14 days

Head & Shoulders helps eliminate scalp dryness, itch and irritation, for hair

that's 100% flake-free with regular use.

7 | P a g e

Brand Management

Assignment No 1

Change your look every season, every day or every boyfriend? There’s an Herbal

Essences that's right for you.

HUGO is different. HUGO is trendy. HUGO is urban.

People who wear HUGO have fun, enjoy life and take risks. They don't care about rules but live

their life on their own way. Independent, unconventional and modern. Creative people who are

on the move. HUGO is the look and feel of London, Berlin and New York — the style for

individualists.

The world of BOSS is driven by success and achievement; a modern place,

yet defined by the classic values of elegance and style.

At Old Spice®, we're dedicated to staying up-to-date on emerging technologies that

protect you from odor and wetness, and keep you smelling great. With our new scents and

constantly expanding line of products, it's no surprise that Old Spice is a top choice among guys.

For more than 50 years, Oral-B® has produced the highest-quality dental

hygiene products for you, your family and dental professionals worldwide. Trust the brand more

dentists use themselves worldwide

8 | P a g e

Brand Management

Assignment No 1

For all stages of development, Pampers® has products to help your little one

stay clean and comfortable. From diapers for babies to pants for toddlers, we've got your child

covered — with great fit and a little fun, too. What's more, parenting advice, child-care tips and

activity ideas can be found online from the experts at the Pampers Parenting Institute.

Whether you want to fight frizz, boost volume, or add moisture for strength and smoothness,

Pantene has a Pro-Vitamin formula that helps hair reach its potential.

* Shampoos, conditioners, stylers and treatments

It's easy to fall in love with the irresistible taste of Pringles®. But choosing a

flavor? Now that's the hard part. With so many delicious varieties, you'll want to try them all. No

matter which one you decide to pop, one thing's for sure — the fun

won't stop!

® products offer you delicious filtered water at 1/10th of the cost of bottled water.

9 | P a g e

Brand Management

Assignment No 1

Safeguard® is the No. 1 antibacterial soap worldwide. Safeguard is designed

to provide excellent germ protection for the whole family.

Vicks® provides temporary relief of coughs and cold or flu symptoms.

Dunhill caters to the needs of the discerning man, from formal and casual

menswear, to handcrafted leather goods through to fine men’s accessories, wrist watches,

fragrance, cigarettes, writing instruments, cigars…

PUMA is the original "sport lifestyle" company. Building on its core sports

heritage, it combines the influences of lifestyle, music and fashion.

PUMA Fragrances capture this character by effortlessly jumping boundaries — between sport

and fashion, cultural influences and different design choices. We provide both colourful, trendy

propositions for the teen consumer and more sleek-looking products for young adults

10 | P a g e

Brand Management

Assignment No 1

SWOT ANALYSIS- P&G

STRENGHTS

Strong financial position

Large scale of operations

Strong branding

Product innovation

Developing markets infrastructure

WEAKNESSES

Customer concentration

Lack of effective distribution in some countries

OPPORTUNITIES

Wide range of demography

Developing markets

New products

Acquisitions

THREATS

Increase in prices of raw materials

Uncertainity in the economic conditions

Intense competion

Unfavorable business laws and political unstability

11 | P a g e

Brand Management

Assignment No 1

Marketing Mix

The marketing mix is a business tool used in marketing and by marketing professionals. The

marketing mix is often when determining a product or brand’s offering and often synonymous

with 4 P’s product , price , promotion and place.

Product

P&G manufactures products in following categories.

Beauty and Grooming Brands

Products in this category include Anna Sui, Fekkal , Naomi Campbell, Safeguard, Fusion,

Natural instinct, Nice and Easy, Gillette, Olay, Puma, Pert, Zest, cover girl, Dunhill fragrances,

Herbal essences etc

Health and Well Being Brands

Products in this brand category include Align, Always, Scope, Oral-B, Crest, Pur, and Vicks etc.

Household Care Brands

Brands in this category are Ace, Charmin, Ariel Downy, Gain, Tide, Lenor, Tempo, Fairy and

many more. All these products are produced with greater variety in between them. For instance,

Safeguard which is soap has soaps of different varieties like safeguard white and safeguard pink.

P& G manufactured products are popular for their excellent packaging and design, features and

strong brand name.

Price:

P&G incorporated value pricing strategy. The company adopted this strategy by cutting

its coupon, production and logistical cost by effectively increasing efficiency and it

increased its advertising by 20 percent.

Within the period of six years this strategy resulted in higher brand loyalty and stronger

brand image. 

The strategy of P&G was quite opposite to that of competitors and marketing practices on

that time but resulted in greater success. Now days, P&G has the most effective pricing

of its brands and customer loyalty is as enough that they are willing to pay extra for

company’s brands.

12 | P a g e

Brand Management

Assignment No 1

P&G gives discount offers on its different products time to time but not frequently as it

experienced in 2000s that coupon and discount only decrease customer’s brand loyalty.

Place

P&G products are available almost all over the world. P&G distributes the products in

about 140 countries to approximate five billion consumers.

DHL courier is a service provider to the company through which it ensures its logistical

efficiency.

Company has manufacturing and distribution networks in all major countries where it

runs its operations like China, USA, UK and India.

Promotion

This era is an era of advertising. Companies have to do huge advertisings to sell their

products to the consumers.

P&G has an effective promotions strategy with an advertising budget of approximately

8.68 billion dollar in 2009 which makes it world’s number one advertiser (Mikkelson,

Barbara and David, 2005).

P&G received Advertising Hall of Fame Award in 2010. The company uses television

mass advertising in particular, Internet marketing and other marketing mediums to

promote its brands.

Competitors

P&G provides largest and broadest portfolio of products in the household and personal care. It

has a industry worth of 24 billion dollar brands and generates 43% more revenue than its closest

competitor, Unliver. P&G also maintains a relatively high operating margin of 20.46% amongst

its competitors.

Its major competitors in Pakistan and World-wide are:

Unilever

Colgate-Palmolive Company (CL)

Reckitt Benckiser

13 | P a g e

Brand Management

Assignment No 1

Local products

Strategic management of Tide and Ariel

Overview of detergent market in Pakistan

Total Market size by volume = 162,211 tons

Total market size by value = 19 billion

Detergent market is growing by 5.7% for past 2 years

Companies By Volume By Value

Unilever 45000 8 billion

P&G 9000 2 billion

Colgate Palmolive 80000 8 billion

Rest 28000 1 billion

Brands By Volume By Value

Ariel 25000 38 billion

Surf 35000 21 billion

Excel 10000 16 billion

Bonus 6000 11billion

Express 4000 5 billion

Tide 8000 5 billion

Rest 14000 3 billion

Market share By Volume By Value

Urban 73 79

Rural 27 21

14 | P a g e

Brand Management

Assignment No 1

Overview of Ariel Position in Pakistan

Parent Company Procter and Gamble

Category Home Care brands – detergents

Sector FMCG

Tagline/ Slogan Sirf yaadein taaza rakhe, daag nahi

USP

The product has been in the market for many decades and has established its

image as the product which can remove dirtiest and difficult to remove  stains

STP

Segment

Premium product – People who want quality and are ready to pay more price

for good quality product

Target Group Upper middle class and rich class of the society

Positioning

Positioned by the special attributes it possesses of cleaning the dirtiest stains

by micro cleaning system in the product

SWOT Analysis

Strength 1. World leader in detergent segment

2. Quality detergent – can remove the toughest stains

3. Has made a strong base in the mind of users by various innovations in

marketing

15 | P a g e

Brand Management

Assignment No 1

4. 1st to introduce fragrances in the market

Weakness

1. Various lower priced products available in the market

2. Strong competitors

Opportunity

1. 5700 crore detergent market

2.Big untapped rural market 

3.Can use its brand imprint in the minds of people to increase its customer

base

Threats

1.Counterfeit products in rural areas

2.Aggressive price competition

3.Ambush marketing harming the products reputation

Competition

Competitors

1. HUL’s Surf Excel

2.Bonus

3.Brite

Launch of Tide in Pakistan

Considering the launch of Tide in Pakistan lets analyze the market with the help of Porter’s five

forces

16 | P a g e

Brand Management

Assignment No 1

Porter’s Five Forces Model

The objective of Porter Five Forces Model is to beat the competition of market by overcoming

the challenges offered by rival companies. The five forces model was analysis developed by

Michael E. Porter in 1979. According to this model the five forces that can affect the profits of

company and can help to determine the prevailing competition in market are:

New competition threat

Threat due to substitute services or products

Bargaining Power of suppliers

Bargaining Power of Buyers

Threat of established rivals

From the above mentioned factors three are part of horizontal competition that are marketing

threats of rivals, new entrants and of substitute products. However, bargain power of customers

and suppliers are vertical competition factors. Various companies use this model as checklist for

developing any marketing strategy and also use “Value Chain” along with this model.

Threat of New Entrants

Due to the vast range of Procter and Gamble products, it is very hard for a new company to come

and participate. However, the company holds considerable shares of market and also has

established reputations therefore, no new entrant can compete with the company without heavy

amount of capital and complete marketing strategy based on comprehensive research. Though

small companies with specialization in particular products can offer competition to Procter and

gamble in specific areas.

Bargain Power of Supplier

The bargain power of supplier is coped with mutually dependent relationship of company with

its suppliers. Procter and Gamble request some good materials in order to produce products of

good quality and sell them at sensible price. Likewise, suppliers in market are always in search

of reputed clients that can help them to generate good amount of revenue. The standard

reputation maintained by Procter and Gamble offers advantage to the company in this regard.

17 | P a g e

Brand Management

Assignment No 1

Therefore, the prevailing crisis of credit and fluctuation in interest rates do not affect the terms of

company with suppliers.

Bargain power of Consumers

As with the bargaining power that is alarmed by the costumers, Procter and Gamble can deal

with it easily. The wide range of household products produced by company maintains the

revenue of company even in time of recession. It is due to the type of various products and the

demands of products in everyday life of consumers, that this company plays an effective role in

reducing rate of recession in economy of Pakistan.

Threat of Substitute Products

Although Procter & Gamble has to deal with the presence of various substitutes in market

nowadays, however quality offered by P&G in its all products ensure the sustainability of

company in market all over the world. In this regard company has adopted variety of

collaboration strategies with their customers in order to develop better understanding of

consumer demands and their response.

These factors allow the industry to know about their buyers that are they happy with Procter and

Gamble products or will choose some other brand over Procter and Gamble. The quality in

Procter and Gamble products is always maintained and it ensures costumer trustworthiness.

Threat of established rivals

Procter and Gamble is one of most successful company offering quality products in present

times. For more than half of a century this company is dominating the world of household

products in different parts of world. This success of company is because of flexible attitude of

company towards modifying user requirements and shifting market conditions. The successful

marketing and business strategies of company ensures growth in revenue and constant reputation

in world of business.

It is a buyer oriented industry which is ready to know about the requirement of their costumers

sooner than any other. P&G is now familiar with the business war going in the market but it has

18 | P a g e

Brand Management

Assignment No 1

also formed a business map to compete. With Porter’s five forces model Procter and Gamble can

successfully eradicate its rival companies and beat the competition anywhere in world.

Should P&G Pakistan add “Tide Detergent” in its portfolio or not?

Keeping in view the “Porter’s five forces model and the above statistics I think P&G Pakistan

must include “Tide Detergent” in its portfolio. There are number of reasons for this:

First of all if we look at the above figures Tide has already maintained its share in the market of

Pakistan and eating the share of Ariel but the sale of Tide is not adding in the account of P&G

Pakistan which is a complete loss in terms of figures to P&G Pakistan. So to avoid the loss P&G

Pakistan must stop the import of Tide and start its manufacturing in Pakistan by its own for its

own benefit and that will also count in the economy of Pakistan

Secondly, Tide has already maintained its image in the mind of Pakistanis so there is no need of

extra advertisement campaigns.

Pros and Cons of launching Tide in Pakistani Market

PRO’s

Increase in the sales of P&G Pakistan

Little advertisement needed

Available in different forms , powder , liquid

Perfumed forms

No need to educate people about the brand

CON’s

Will eat up the share of Ariel

Both are high end products

Conclusion

P&G Pakistan only has Ariel to cater only one segment. It must bring “Tide” in the market to

regain its position as Market leader and to compete in the market.

19 | P a g e

Brand Management

Assignment No 1

References

Wherrity, Constance (2006). "Dial Agrees to Buy P&G Deodorant Brands". Pierce Mattie

Public Relations New York blog.

Dyer, Davis; Frederick Dalzell, Rowena Olegario (2004). Rising Tide: Lessons from 165

Years of Brand Building at Procter & Gamble. Harvard Business School Press.

Mikkelson, Barbara and David. (2005). Tampax Pearl, Snopes.com.

20 | P a g e

Brand Management

Assignment No 1

Horstman, Barry M (2005). "John G. Hankus: He rebuilt P&G – and city, too". The

Cincinnati Post.

https://www.pg.com/en_PK/

21 | P a g e