MARKETING THEORY AND PRACTICE

DEDICATION

We dedicated this report to our parents and the respected

teachers

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Introduction

Procter & Gamble started its operations in Pakistan in 1991 with

the goal of becoming the finest global local consumer goods company

operating in Pakistan. With commitment came growth, and in 1994 we

acquired a soap-manufacturing facility, a sprawling 7-acre land at Hub,

Balochistan. Over the past nine years, the plant achieved state-of-art

manufacturing technologies and quality assurance processes. With a

recent strategic investment of 5 million dollars, the bar soap

production capacity jumped three-fold.

As a company they have always believed in the potential Pakistan has

as a country and a nation to develop and excel. No wonder P&G

Pakistan, within the last 12 years, has reinvested over $100 million in

Pakistan and has contributed close to seven billion rupees to the

Pakistani government's revenues over the last 5 years in the form of

sales tax, customs and excise duties. That is also why 99% of the jobs

that P&G Pakistan creates in Pakistan are held by Pakistanis. All this

makes P&G a more locally involved company than many companies

actually headquartered in Pakistan. 

Since the inception of P&G Pakistan, they have always committed

ourselves to business growth, consumer satisfaction and community

development.

Head & Shoulder is a shampoo that focuses on the dandruff control. It

is basically the product of Proctor & Gamble that is a multi national

company. It is recognized from the England institute of research which

is the world famous institute of research.

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Executive Summary

In the report we choose a product for survey. We

behave our self as marketing manager of P&G product

Head&Shoulder.We want to know the value of our product in people

and how many using our product and what changes are we can do in it

through we can satisfy our customer. For this purpose we conduct a

survey and focus on the young generation. Through this survey we find

out our prons and crons of our product. Then we compare our product

with other brand after we make conclusion and recommendation to

improve our product for the purpose of customer satisfaction

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Segmentation and targeting

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Segmentation and targeting

In this repot we chose a product that is HEAD&SHOLDER for the

opinion of the people for this purpose we make a questioner and

distribute it to people and collect their opinion the questions we

distribute in people and their opinion are ass follows.

Q: 1 we ask the people that what type of shampoo they are using?

In the response of this question we find that 38% of them are using

HEAD&SHOLDER24% are using SUNSILK 10 % are using PANTEEN

and 8% are using other like soap and so on.

0%

5%

10%

15%

20%

25%

30%

35%

40%

Head&Shoulder Panteen

Head&Shoulder

Sunsilk

Panteen

Others

Q: 2 In second questions we ask them that are they satisfied with

this shampoo?

In the respond of this question e find that 70% are satisfied and 21%

are not satisfied and

9% are somewhat.

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0%

10%

20%

30%

40%

50%

60%

70%

Satisfied NotSatisfied

Somewhat

Satisfied

Not Satisfied

Somewhat

Q: 3 In this question we ask them why they satisfied with this

shampoo?

So in the respond of this question we find that 25% of the says that

they satisfied and this satisfaction is due to its grace ness and other

57% says because of quality and others says that because of its

reasonable price.

0%

10%

20%

30%

40%

50%

60%

Satisfiedon

Graceness

Satisfiedon price

Satisfied on Graceness

Satisfied on quality

Satisfied on price

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Q: 4 In this question we ask the people that from how many years

they are using this shampoo?

In the response of this question all the people saying that they are

using this shampoo from two to three years.

Q:5 In this question we ask the people about the affordability of the

shampoo for the people in which 71% of them says that they are

satisfied with its price and remaining says that the price of the

shampoo are not affordable for them .

0%

10%

20%

30%

40%

50%

60%

70%

80%

Satisfied DisSatisfied

Satisfied

DisSatisfied

Q: 6 In this question we ask the people about our product which is

HEAD&SHOLDER that why they are not using this product?

In the response of this question 9% says that this is not affordable for

them 72% says that they are not satisfied with it and remain says that

there is another reason.

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0%

10%

20%

30%

40%

50%

60%

70%

80%

Affordability Otherreasons

Affordability

DisSatisfied

Other reasons

Q: 7 In this question we ask about the availability of this shampoo in

market?

In the response of this question 82% says that it is easily available in

the Market and other says that it is not available in the market.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Available NotAvailable

Available

Not Available

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Q:8 in this question we ask that HEAD&SHOLDER is available in

original quality or not ?

In the response of this question we find that 50% says that it is

available in original quality and 50% says that it is not available in

original quality.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Available NotAvailable

Available

Not Available

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Q:9 In this question we ask the people about the improvement or

changing in the product then 25% of them says that there are changes

required and other says that there is no need of improvement .

0%

10%

20%

30%

40%

50%

60%

70%

80%

Required NotRequired

Required

Not Required

Q: 10 In this question about the flavors of the shampoo then 68%

people satisfied with the current flavors but other says that there is

need of more flavors.

Q:11 The question is about the expectation of this shampoo we

collect many responses in which mostly says that P&G will maintain

the quality and tried to reduce the price that all people can afford.

Q12: In this question we focus our customer on the base of gender.

We find that how our customers are male and female. 40% female are

using Head & shoulder and 60% male are using Head & Shoulder. The

reason of low rate of female using because they are much conscious

about their long hair.

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0%

10%

20%

30%

40%

50%

60%

Fe male Male

Fe male

Male

Q13: In this question we focus that 80% young people are using Head

& Shoulder and reaming 13% are middle to old age and remaining 7 %

are children.

0%

20%

40%

60%

80%

Young Children

Young

Middle toOldage

Children

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Q14: In this question we ask about the on what bases they are using

Head & Shoulder. We find that 20 % are using to control dandruff and

remaining for silky hair.

0%

20%

40%

60%

80%

dandruff Sikey Hair

dandruff

Sikey Hair

.

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Marketing Mix

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Product

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Level of product:

We will discuss main three level of this product in this phase.

1. Core product:

It means that the main purpose of the product and the main purpose of

this product are to shampoo hairs and finish the dandruff.

2. Actual product:

The second level of the product is the actual product.

Packaging:

The packaging of the head &shoulder is in the big and small bottle and

also it is available in the small sachet that should save it from the

germs and other environmental factors and also it used to attract the

customers. It is available in different colors.

Features:

It is available in different flavors which are menthol, plain, silky black.

It s core purpose is the good hair but these are the extra features that

add the value in it and more satisfy the customer.

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Design:

It should be necessary that the designing of the product is according to

the customer need and according to our view the designing of the

head &shoulder is good because it is available in family pack and also

available in small pack.

Quality level:

The quality level of the head &shoulder is very good because when we

ask about the quality of this product to the customer who use it then

most of them answer that they use this shampoo because it finish the

dandruff in a few days and also it make the hair silky so we can say

that the quality of this product is good.

Brand name:

Brand name is according to the target segment and in this product we

segment we target the young generation and we think that the brand

name of this shampoo is very well according to the segment of the

product.

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3.Augumented product:

Installation:

The installation of this product is that the deliverys of this product to

the market is without any extra price which is the extra feature of this

product basically there is a dealer of P & G in every District level or

Tehseel level who deliver the product.

After sale service:

As such there is no after sale service so this value added feature in this

product is not included.

Warranty;

If this shampoo expire in the shop then there is the facility that the

company of this product change it.

Delivery and credit:

It is available on credit and deliver it where it has the demand and

where to place it.

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Product classification:

It ;has two main heads.

Consumer product

Industrial product

Consumer product:

People use this shampoo for the personal consumption. The first head

of the consumer product is

Convenience product:

The purchase decision of this product is not taking too much time

because it is available at low prices. Customer utilize it frequently.

Shopping products:

This head is not applicable on this product.

Specialty products:

This head is not applicable.

Unsort product

This head is not applicable.

Industrial product;

The head&shoulder is not an industrial product it is basically the

consumer product.

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Individual product decisions:

This phase include the all decisions that helps us to attract our

customer.

Product attributes:

It mean the combination of the product and services. Our product is

the head&shoulder and the service of this product include the delivery

of this product to the shops and to the end customers.

Branding:

The brand name of this product for the target customer is good

because the target customer of this product is the young generation

and according to this targeting the brand name is very well.

Packaging:

The packaging of the head &shoulder is in the big and small bottle and

also it is available in the small sachet that should save it from the

germs and other environmental factors and also it used to attract the

customers. It is available in different colors.

Product support services:

These are the extra features of the product and the extra feature of

the head &shoulder is its free delivery to the market and also the other

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feature of the product is its expiry that its expire then company change

it .

The service profit chain:

The things which are coming under this phase are as follows

Healthy service profit and growth:

Head &shoulder provide the best services to its customers that it

increases the profit of the company and also help out in growth of the

company.

Satisfy and loyal customer:

Due to the high quality of the product the company satisfies its

customer and due to the satisfaction of the customer they can not

switch to the other company.

Greater service value:

The company provides the greater services as compare to its

competitor who helps the company to increase its customer and make

the existing customer more loyal with the company.

Satisfied and productive service employees:

The company can provide the best services to their employees that

they can more productive and work hard for the organization.

Internal service quality:

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In the internal environment of the company they can hire the more

expert people and also trained the existing employees to make them

more productive.

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New product development and product life cycle:

New product development and strategies:

First of all there are two persons named as proctor and gamble start

this company and started making the products. These products include

so many things and one of their product is the head &shoulder and

then make the patents of their formula of the products and then get

the license of the product then launch the original product which need

the so much improvement then improved its quality and when

customer come towards this product then make the more brands of

this product that customer satisfied and attract towards the head

&shoulder.

New product development:

This include the eight steps which are as follows

Idea generation:

Head&shoulder is used for anti dandruff then the company think that

there is the need of the other flavor of the shampoo which is the new

idea generation.

Idea screening:

They have the different ideas that they start the flavor as menthol, anti

dandruff with silky black and for long hair. Then from these ideas the

company selects the best idea which is the menthol.

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Concept development:

Then develop the concept at the place of the customer that customer

satisfied from it or not. For this purpose check the concept to apply it

on the group of the target customer.

Marketing strategy:

After the concept development define the market strategy for a new

product .First of all check its positioning and market share and also

profit. Then see the market budget and also see the distribution

channel then after this we see towards the marketing mix strategies

and sales and profit goals.

Product development and business analysis:

Then make the projection that the product satisfy the customer and

also satisfy company objectives if yes then move to the product

development stage and if no then again go towards the concept

development.

Test marketing:

Then in the test marketing the company uses the standard marketing

that it provide the product to all of its customers at full price then

check the feed back.

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Commercialization:

If the feed back of the product is good then go for the

commercialization the advertisement of the product.

Head&shoulder in the life cycle:

In the product development life cycle the head and shoulder is at the

last phase of the commercialization but the different new brand of the

head and shoulder which the company started is also on the first or the

second step.

Product life cycle:

Head &shoulder in the product life cycle is at the place of the maturity

because at this time the company sale is slow down and it attract the

potential buyers.

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Price

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Pricing product : Pricing consideration and approaches

Price :

Now the current price of the head & shoulder is afford able for its

customer and if we see the benefit in term of values which are as

follows

Product design :

The design of the bottle head & shoulder is attractive for its customer

Distribution :

Head&shulder has the strong distribution channel , it can be available

every where and customer can not find out any difficulty to buying this

product .

Promotion :

Promotion of head & shoulder is also very strong ,because of the

advertisement of the it is on the large scale .

Non price image:

Image of head & shoulder is also very good in the market

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External factors that effecting pricing decision .

Market and demand:

Demand of the head & shoulder in the market is very high if the price

of the head & shoulder is increase very less then it not effect to much

on its demand but if its price largely increase then it effect the demand

Competitor cost price & other :

In the market the price of the head & shoulder is same as compare its

competitors .But if it reduce its price by reducing its variable cost then

there is more chance that many customers of the competitors move

towards it ,and also the existing customer become more satisfied

Other external factors:

Pricing decision of head & shoulder is also based on other external

factors such as economically condition which are not as much

favorable for the company also the pricing decision based of the

reseller needs .

Elastic demand:

The demand of head & shoulder is elastic because the small change in

its price become the large change in its demand but the demand of

head & shoulder is also inelastic for those who have brand conscious .

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Pricing product pricing consideration and strategies :

New product pricing strategies:

Market skimming:

Head & shoulder not use the concept of market skimming because of it

can not increase its price to high generate maximum revenue there

price is stable .

And if any changes come its price then its maximum two to three

increase.

Market penetration:

This concept is not implemented on head & shoulder because they do

not reduce the price form their competitors. The price of head &

shoulder and its competitors are also same.

Product line price:

Product line of head & shoulder include the different brand but the

price of the entire brand is same this show that head & shoulder give

extra feature to its customers to attract the customers with out any

change in the price.

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Price adjustment strategies:

For the adjustment of the price make the strategies. These include six

strategies which are the situational and we can change these

strategies according to the condition. These strategies are as follows

Cash discount:

Provide discount directly to retailers if it purchase the product in bulk

quantity. It is a strategy adopt in the case of high market competition

and to increase market share as compare to competitor.

Quantity discount:

On the purchases of high volume of quantity the company reduces the

price of the product which is also the strategy for gaining the market

share.

Functional discount:

A price reduction offered by the seller to trade channel members to

perform certain functions such as selling, storing, record keeping such

as the proctor and Gamble provide to its intermediaries.

Seasonal discount:

This type of discount is not applicable on head &shoulder because its

sale not depends on the season.Its sales remains constant throughout

the year.

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Allowance

Proctor &Gamble use this pricing strategy to sale head &shoulder to

their retailers in response to an agreement of sale volume.

Segmented pricing:

Not applicable on the head&shoulder because the price of the head

&shoulder remain the same throughout the country and if we see its

price on international level then there is also a very little difference in

its price.

Psychological pricing:

In this strategy the price of the product become the higher because of

that the customer think that the quality of the product is also good as

compare to its price but this factor is also not implemented on the

head&shoulder.

Geographical pricing strategies:

Uniform delivery pricing:

This strategy include that the company bear the all charges of the

transportation and proctor and Gamble also bearing the charges of

transportation and freight charges.

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Zone pricing:

Proctor&Gamble have the same pricing strategy on all the zones in the

country.

International pricing:

This strategy include the difference in the price of a product in

different countries and Proctor&Gamble also charges the different

prices at different countries.The price of this product which is in

Pakistan is different as it is in the other countries.

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Distribution channels

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Distribution channels and logistic management

Levels of distribution channels:

A layer of intermediaries that play a role to place our provide product

from manufacturer and customer.

There are four levels of market channels which are as follows

1. Direct marketing channel

In this channel the product reach from manufacturer to consumer

directly. In it there is no involvement of any other intermediaries in

it. In different geographical condition Proctor&Gamble deliver the

product head&shoulder to their customer without involvement of

intermediaries.

2. Direct marketing channel

In this type of marketing channel only one intermediary involves.

First of the entire retailer buy the product from the production point

of Proctor&Gamble on the whole sale and then provide it to the

customer.

3.Selective distributive channel:

These are the distributive channel in which the product first comes

to the wholesaler then from wholesaler to retailer and then retailer

to customer.

4.Intensive distributive channel:

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In this distribution channel the product comes form the

Proctor&Gamble to the whole seller then whole seller to jobber then

jobber to the retailer and then retailer to the customer.

Vertical marketing system:

Vertical marketing system is that system in which all the things are

provided by the company such as on their transport include the banner

of the product and also the separate placement for that product. The

concept of the vertical marketing system is implemented on the

product of Proctor&Gamble which is head&Shoulder.

Conventional marketing system:

This is that type of marketing system in which the product come from

manufacturer to wholesaler then wholesaler to retailer then retailer to

customer. This marketing system is used by the proctor&Gamble for its

product which is the head&Shoulder.

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Integrated marketing communication strategy :

The marketing communication mix:

In marketing communication mix we will discuss the blend of

advertisement, personal selling, sales promotion public relation and

direct marketing of head&shoulde by proctor&Gamble.

Advertisement:

In advertisement proctor&Gamble has been started strong

advertisement campaign of head&shoulder by using different media

channel such as television, newspapers and magazines

Personal selling:

Proctor&Gamble also involve in personal selling through sales force to

enhance sales indifferent locations and in rural areas as well.

Sales promotions:

Proctor &Gamble provide incentives to wholesalers and retailers to

promote the sale of head &shoulder

Public relations:

To increase sales level of head&shoulder P&G involve in building public

relations with different companies.

Direct marketing:

Proctor & Gamble also involve to targeted individual customer to

obtain the individual response to cultivate the lasting relationship with

the customers.

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Comparison:

We compare our product with other brands which has same products

that is shampoo so it find out some point that are as under

Flavor:

Some people like many flavors in shampoo for example in SUNSILK and

PANTEEN they have at least five flavors but we are only two so our

many customers switch to other product.

Extra features:

Other brands of shampoo has some extra feature for example dandruff

control and also help to long hair ,but our shampoo is only for dandruff

control so our female customers that are much conscious for their long

hair switch to other .

Price:

Price is the major factor that can help to retain and attract out

customer. our price is same to other.

Quality:

As well as the concern of quality our quality is good than others.

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Steps in developing in effective

communication

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Steps in developing in effective communication:

Now we are discussing how we develop the effective

communication for the customer.

Identifying the targeted audience:

First step is Identifying the targeted audience in this step the

clear target of audience that we are segmented should be in mind .

proctor & gamble fuscous on the young generation to sell and

promote the product P&G

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Determining the communication objectives:

Awareness:

Proctor & gamble use the counter to aware the people about the

product it also use the poster to create the knowledge about the

product .

Linkage :

Proctor & gamble link with their customer if a customer see the poster

if he inspire the poster or model then that customer buy the product it

create the link with customer and company.

Knowledge :

Procter & gamble create the knowledge in consumer mind through

advertisement and other communication medias.

Preference :

Proctor & gamble use the different type of advertisement for the

promotion of the product that create the attraction for customer and

customer prefer that product .

Conviction:

Proctor & gamble use different type of techniques to convince the

customer to by their product .

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Purchase:

After all the process the customer prefer the product and purchase

that product.

Choosing Media :

After identification company chose the media in which company

advertisement.

Personal communication channel :

Proctor & gamble use the sales force channel to communicate with

customer .

Word of mouth influence :

Procter & gamble use the media if a employ satisfied the product then

he tell about the product that the product is good then other person

buy that product .

Non personal communication channel:

Proctor & gamble use the different type of media like TV, newspaper,

posters, bill boards to communicate the customers.

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Promotion

42

Promotion Mix Strategies:

In promotion Mix strategies use the two type of strategies

Pull strategies and second is push strategies .

Pull strategies :

Procter & gamble use the pull strategies for example he produce the

menthol shampoo then the company advertise on different type of

channel to create the demand , mostly consumer switch to that

product .

Push strategies:

Proctor& gamble make the large quantity of product and then the

market advertise about the product on different communication

channel.

Advertising clutter:

Different ways of advertising is discussed under this phase.

Television:

P&G is using the television for the purpose of communication>P&G

infact place all types of advertisement mostly on the television.

Radio:

The second type of the telecommunication media is the radio.But P&G

is not mostly use this media to communicate with their customers.

Magazines:

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Magazine is the another telecommunication media and P&G also used

the magazine for the promotion of its products and for the

communication with the customer

Newspapers:

Another type of media is the newspaper and P&G also use this type of

media for the communication purpose.

Billboards:

P&G also use the billboards for the communication purposewith their

customer.

Internet websites:

This media is also used for the communication purpose the web site of

the P&G is as follows

www.pg.com

Marketing plan:

To establish a marketing plan the following aspects that P&G keep in

mind. These are as follows

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Situation analysis:

To analyze the situation of the market when make the plan. Also see

the demand of the market and the geographical location.

Marketing objectives:

To see the objective of the market that what we want to do and what

we are going to convey to our customers.

Marketing budget:

P&G see the budget of the marketing of the product and on the base

of this budget he make the strategy for their plan.

Market strategy:

P&G also see its market share which is nearly about to30% .It also see

its competitors and then make the strategy on the base of market

share and on the base of competitor.

Marketing tactics:

P&G use different market tactics to promote its product that is an

aspect of marketing plan.

Evaluation:

At the end evaluate it.

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Conclusion:

From this survey we found that there are few brands of shampoo that

are famous in the market and people want and demand of them.

There are number of reasons that the people are bound to purchase

that particular brand available in the market.

According to result of survey we found that near about 1/3 of the

population use HEAD&SHOLDER and large no of population uses other

brands.

Most of the people satisfy from the brand they are currently using, but

the no of the people are not satisfied from the quality packing and

price as well.

A large no of people want to reduce in the price of family pack

according to the customer point of view it is easily available in the

market in the same price. People want innovation in these kinds of

products .most of the people are brand conscious .A reasonable no of

people are not satisfied from its quality

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Recommendation:

According to conclusion of survey that has been conducted we

recommend as follows.

The price should be affordable.

The packing should be improved.

It should be available in different kind of packing.

Flavors should be changed.

The quality should be improved.

Strong awareness cam pain should be started that people can to

understand the feature of the product.

it should available in different flavors.

It should not be harmful for eyes

Some innovative features should be added

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