Principles of Marketing

MARKETING REPORT ONP&G’S

Safeguard

INSTITUTE OF BUSINESS & TECHNOLOGY (BIZTEK)

TOPIC

MARKETING ANALYSIS OF SAFEGUARD BY P&G

Preface:

This report is based on Safeguard Pakistan, a successful and popular soap brand of P&G. it focuses on the different aspects relating to marketing of

Safeguard in the Pakistan market. The reasons of choosing Safeguard as the object of our report are it’s’ successful marketing strategies and increasing

share growth rate in the Pakistan soap industry.

This report provides an insight on the marketing philosophies, marketing tools and different marketing strategies used by Safeguard and its mother

company P&G, with all information gathered from reliable sources.

This report also includes a brief introduction of P&G and its executive summary aswell as an interview with the marketing manager of Safeguard.

We have concluded our report with our own personal suggestions and recommendations

for the improvement of our selected brand, based on our marketing knowledge and assessments.

Acknowledgment

Before commencing this report on marketing, we would like to thank almighty ALLAH. We would also like to acknowledge the contributions of some people, without whose help and assistance this report wouldn’t have

been possible.

We extend or heartiest gratitude to our course instructor, Ms.Tahira Yasmeen, whose able guidance and assistance showed us the right path to

approach this report.

We would also like to thank the brand manager of Safeguard, Mr.Adnan Kisat

for sharing his precious time and knowledge with us.

We are also indebted to all the shopkeepers who contributed their knowledge about the distribution, prices and other issues regarding Safeguard to this

report.

Lastly, we would like to thank our parents and all our well-wishers, whose prayers made this report possible.

We dedicate this report to all those people who contributed to this report.

TABLE OF CONTENTS:

CONTENTS PAGE NO.

EXECUTIVE SUMMARY……………………………………6-7

• COMPANY AND MARKETING PHILOSOPHIES………….8-14

• MARKETING MIX……………………………………………15-17

• EXTERNAL AND INTERNAL FACTORS

• AFFECTING THE BRAND…………………………………...18-20

• PRODUCT CLASSIFICATION, PRODUCT LINE&MIX,

• PRODUCT LIFE CYCLE……………………………………..21-24

• BRAND POITIONING AND BRAND STRATEGY…………25

• CHANNEL OF DISTRIBUTION……………………………..26

• TOOLS OF PROMOTION MIX USED BY P&G FOR

SAFEGUARD…………………………………………………27

• CURRENT ADVERTISING CAMPAIGN…………………...28-32

• INTERVIEW WITH THEW MARKETING MANAGER

OF SAFEGUARD……………………………………………33-34

• SUGGESTIONS AND RECOMMENDATION………………35

• REFERENCE………………………………………………….

EXECUTIVE SUMMARY

The summary of our report is given below:

• P&G Pakistan is a subsidiary of Procter and Gamble, International.it started operating in Pakistan in 1991.

• It is offering 4 different product lines in Pakistan including, Personal & Beauty products, House & Home products, Health & Wellness products and Baby & Family products.

• It is a company following the marketing concept.

• Safeguard Pakistan, was launched in 1995 as a brand of P&G, Pakistan.

• Safeguard is an anti bacterial soap

• It is available in different flavors and sizes

• Its pricing approach is value based

• It is widely distributed and is distributed through an indirect channel

• It is highly promoted through advertisement, sales promotion and Public Relations.

• It is positioned as a high-value antibacterial soap

• It is classified as a fast moving consumer good or FMCG.

• Its brand strategy is line extension strategy

• It is currently in the growth stage of the product life cycle

• The strengths of Safeguard are its advertising effectiveness, adequate financial resources, product innovation skills, market leadership and experience

• The weakness of Safeguard is its higher prices relative to its competing products

• The opportunities for Safeguard are market penetration, market development and diversification.

• The threats posed to Safeguard are increasing competition and bargain power of suppliers and consumers.

• The current advertising campaign of Safeguard is “Commander Safeguard”

• The target market of Safeguard includes mothers and professional doctors.

• Safeguard does its heavy advertising through television in which its cartoon films on Commander Safeguard are very popular.

• Safeguard has also started off with its school education programs to have a direct contact with the children in order to create awareness of germs and the ways to prevent from them.

• They advertise their product on billboards, which can be found in Pakistan across Karachi, Lahore and Islamabad.

• Moreover, they also advertise their product in newspaper and magazines. They have their annual exhibition at Expo Centre.

• They also conduct a weekly radio programme on FM 101 where children can talk to Commander Safeguard.

• They also advertise through electronic media, their website is www.commandersafeguard.com.

• Commander Safeguard is its lucky mascot due to which most of the children across Pakistan have been its major audience.

Procter & Gamble

ABOUT THE COMPANY: P&G-BACKGROUND

Procter and Gamble Corporation is the leading consumer goods company with a mission to improve the lives of consumers wherever it operates.

P&G is an International Company reaching out to almost the entire world population with more than 250 brands in 130 countries. Many of these world brands (Ariel, Tide, Pert Plus, Pantene pro-V, Head & Shoulders, Pampers and Always) have become famous household names and are found in almost every home.

Headquartered in Cincinnati-Ohio in the USA, P&G has local operations across the globe in more than 80 different countries, including numerous manufacturing sites and 18 R&D-technical centers. P&G is an internationally owned company with publicly traded shares, currently owned by over one million shareholders from around the globe.

P&G employs over 100,000 people from all over the world, spread evenly between 1-USA, 2-Europe/Middle East and Africa and 3-Latin America/Asia. P&G hires and respects individuals regardless of race, color, religion, gender, age, national origin, citizenship or disability, and actively promotes diversity within its organization as well as in its business operations.

P&G PAKISTAN-A BRIEF HISTORY:

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 we 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 Pakistanis hold 99% of the jobs that P&G Pakistan creates in Pakistan. All this makes P&G a more locally involved company than many companies actually headquartered in Pakistan.

Since the inception of P&G Pakistan, we have always committed ourselves to business growth, consumer satisfaction and community development. Thanks to our committed base of employees, customers, vendors, stakeholders, and above all, consumers, today we are one of the most thriving operations in Pakistan.

Proctor & Gamble's (PG) Mission Statement

PURPOSE

We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. 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.

VALUES

P&G is its people and the values by which we live.

We attract and recruit the finest people in the world. We build our organization from within, promoting and rewarding people without regard to any difference unrelated to performance. We act on the conviction that the men and women of Procter & Gamble will always be our most important asset.

Leadership

• We are all leaders in our area of responsibility, with a deep commitment to deliver leadership results.

• We have a clear vision of where we are going.• We focus our resources to achieve leadership objectives and strategies.• We develop the capability to deliver our strategies and eliminate organizational

barriers.

Ownership

• We accept personal accountability to meet our business needs, improve our systems, and help others improve their effectiveness.

• We all act like owners, treating the Company's assets as our own and behaving with the Company's long-term success in mind.

Integrity

• We always try to do the right thing.• We are honest and straightforward with each other.• We operate within the letter and spirit of the law.• We uphold the values and principles of P&G in every action and decision.• We are data-based and intellectually honest in advocating proposals, including

recognizing risks.

Passion for Winning

• We are determined to be the best at doing what matters most.• We have a healthy dissatisfaction with the status quo.• We have a compelling desire to improve and to win in the marketplace.

Trust

• We respect our P&G colleagues, customers, and consumers, and treat them as we want to be treated.

• We have confidence in each other's capabilities and intentions.• We believe that people work best when there is a foundation of trust.

OUR PRINCIPLES

We Show Respect for All Individuals

• We believe that all individuals can and want to contribute to their fullest potential.• We value differences.• We inspire and enable people to achieve high expectations, standards, and

challenging goals.• We are honest with people about their performance.

The Interests of the Company and the Individual Are Inseparable

• We believe that doing what is right for the business with integrity will lead to mutual success for both the Company and the individual. Our quest for mutual success ties us together.

• We encourage stock ownership and ownership behavior.

We Are Strategically Focused in Our Work

• We operate against clearly articulated and aligned objectives and strategies.• We only do work and only ask for work that adds value to the business.• We simplify, standardize, and streamline our current work whenever possible.

Innovation Is the Cornerstone of Our Success

• We place great value on big, new consumer innovations.

• We challenge convention and reinvent the way we do business to better win in the marketplace.

We Are Externally Focused

• We develop superior understanding of consumers and their needs.• We create and deliver products, packaging, and concepts that build winning brand

equities.• We develop close, mutually productive relationships with our customers and our

suppliers.• We are good corporate citizens.

We Value Personal Mastery

• We believe it is the responsibility of all individuals to continually develop themselves and others.

• We encourage and expect outstanding technical mastery and executional excellence.

We Seek to Be the Best

• We strive to be the best in all areas of strategic importance to the Company.• We benchmark our performance rigorously versus the very best internally and

externally.• We learn from both our successes and our failures.

Mutual Interdependency Is a Way of Life

• We work together with confidence and trust across business units, functions, categories, and geographies.

• We take pride in results from reapplying others' ideas.• We build superior relationships with all the parties who contribute to fulfilling our

Corporate Purpose, including our customers, suppliers, universities, and governments.

ABOUT THE BRAND

Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining

"health & hygiene" in Pakistan. It is an anti-bacterial soap that provides germ protection for twice as long as ordinary soaps making it the doctors' number 1 recommended choice throughout the world. In addition to germ protection, it also caters to various other needs such as beauty care and protection against sweat odor.

MARKETING MIX

Safeguard is one of the most popular soap brands of Pakistan, which is popular with public because of its appropriate marketing strategies and an excellent marketing mix. Discussed below are the tools of marketing mix, used by Safeguard, to satisfy the needs and wants of its target market and for maintaining its competitive advantage over its competitors.

PRODUCT:

As defined by the company, Safeguard is an anti-bacterial soap, based on clinical testing, that provides both effective germ removal and deodorant protection. It provides effective germ removal, yet is mild enough for the whole family.

Given below are its product attributes:

Variety: it is available in a variety of colors and flavors like aloe Vera, sandalwood, vitamin-e, menthol, lemon, beige, pure white, herbal (colors)It is also available in two different sizes of 75grams and 125 grams with prices of Rs.14 and Rs.21 respectively.

Quality: Safeguard is a high quality anti bacterial soap, which is approved by the PMA (Pakistan Medical Association) and is clinically tested.

Features: it offers germ removal and deodorant protection and is available in eye-catching colors with pleasant fragrances.

Brand name: its brand name, Safeguard, promises protection against germs and diseases.

Packaging: it is packaged in a well-designed pack with a shield placed in the center, which highlights its effectiveness against germs. Its pack also contains a certification by the PMA to ensure its good quality.

PRICE:

The pricing approach used by Safeguard is value-based and the price-quality strategy is premium strategy, as it is available at a higher price than other antibacterial soaps like, treat and lifebuoy because of its higher quality.Its pricing is done with respect to its product line, with different sizes of soap bars having different prices.

Given below is the list of prices for different sizes of soaps offered by Safeguard:

Size Price

125 grams Rs.

75 grams Rs.

Place:It is a widely distributed soap, which is available in nearly all cities of Pakistan. it is distributed through a complex distribution channel and is sold through retail stores at convenient locations and is easily available.

Promotion:

It is a highly promoted product which is promoted through advertising, sales promotion and public relations.

It is advertised through electronic media and print media, for example; the Commander Safeguard advertisement is aired on TV and radio and is printed in newspapers and magazines and it is also advertised through billboards.

For sales promotion, Safeguard has its own website by the name of Commander Safeguard.com where they have lucky draws and other attractions for kids.

Safeguard also has its own public relations department where any queries,comments or complaints from the public are registered. It was also involved in raising funds for the earthquake victims and also started a “safai” program in schools all over the country. Currently, Safeguard’s mother company, P&G, is involved in the Sehat-O-Safai campaign to educate school children about the importance of personal hygiene, especially hand washing with soap.

EXTERNAL AND INTERNAL FACTORS

The external and internal factors in a company’s marketing environment form its strengths, weaknesses, opportunities and threats. a company has control over its internal environment which consists of the company, suppliers, consumers, marketing intermediaries, competitors and public. So, any advantage that a company gains by controlling any of these factors is considered as its strength. Similarly, failure to control any one of these factors results in a weakness for the company.The external factors facing a company like, demographic factors, technological factors etc., cannot be controlled by the company and pose threats as well, as opportunities for the company. In Safeguard’s marketing environment, its strengths, weaknesses, opportunities and threats are determined by the following factors:

SWOT ANALYSIS OF SAFEGUARD

STRENGTHS:

• Adequate financial resources• Product innovation skills• Acknowledged market leader• Advertising effectiveness• Ahead on experience curve

Adequate Financial resources:

One of the strengths of Safeguard is its adequate financial resources. Because of being a brand of P&G, it has sufficient funds to finance its marketing strategies and to bear losses

Product Innovation Skills:Another strength of Safeguard are its product innovation skills. It has a long product line with many variants and has added many features to its products since it was introduces in 1995.

Acknowledged market leader:Safeguard has a high market share and is the leader of anti-bacterial soap industry which is its biggest strength.

Advertising Effectiveness:The advertising campaigns launched by Safeguard have been very effective and have positioned it well in the minds of its consumers.

Ahead on experience curve:Safeguard was the first brand of good-quality anti-bacterial soap that was launched in Pakistan

WEAKNESSES:

• Price

Price:

The main weakness of Safeguard is its higher prices relative to its competing products. A 125 grams Safeguard soap bar is available for Rs.21 whereas the same size bar of lifebuoy is available for Rs.13.

OPPORTUNITIES:

• Serve additional customers• Enter new market segment• Diversify into related products

Serve additional customers:

Safeguard has various opportunities for growth in the market, which include the opportunity of serving additional customers through market penetration. Safeguard can increase its market penetration by promoting its use in hospitals and such other places where anti-bacterial soaps can be used.

Enter new market segment:

Safeguard also has the opportunity of entering a new market segment by increasing its product line horizontally. It can modify its anti-bacterial soap into a beauty soap which promises germ protection and can enter in the beauty soap market.

Diversity into Related products:

Safeguard can also introduce a new product line of liquid cleaners and other related products to increase its growth.

THREATS:

• Increasing competition• Growing bargain power of customers & suppliers

Increasing competition:

The threats posed to Safeguard from the external environment include increasing competition. Safeguard is facing increasing competition from other anti-bacterial soap brands like lifebuoy, treat and dettol.

Lifebuoy has launched an aggressive promotional campaign against Safeguard by the name of ‘ Lifebuoy Germ busters’ which is based on a similar format as ‘Commander Safeguard campaign” launched by Safeguard. They have used celebrity endorsement in their campaign with Inzamam-ul-Haq against Safeguard’s celebrity endorsement of Shahid Afridi. Lifebuoy is attacking the brand positioning of ‘Commander Safeguard’ by calling it a fake super hero.

Growing bargain power of suppliers & customers:

With the increase in the supply of anti-bacterial soaps in the market, another threat that is posed to Safeguard is the growing buying power of its suppliers and customers.

PRODUCT CLASSIFICATION

Safeguard is a soap brand and is therefore classified as a consumer good, which falls in the category of convenience goods or FMCG (fast moving consumer good). Because of

being a convenience good that is purchased frequently with little or no planning, it is available at an affordable price, is promoted heavily through advertising, sales promotion

and PR, is distributed widely and is available at convenient locations.

Types of consumer products

Convenience goods

Is a convenience good

Shopping goods

Specialty goods Unsought goods

PRODUCT LINE & MIX

Safeguard is a brand of P&G (Procter and Gamble, Pakistan). P&G offers a variety of different product lines in Pakistan with different brand names. Given below is a list of the product mix offered by P&G to the Pakistan market and the brands offered in each product line.

The products of P&G can be categorized in following areas:

Personal & BeautyHouse & HomeHealth & Wellness Baby & FamilyPet Nutrition & Care

Personal & Beauty:

1.Antiperspirants/Deodorants

a. Old Spice

2. Cosmetics

a. Cover Girl

3. Hair Care

a. Pert Plusb. Pantenec. Head & Shouldersd. Herbal Essences

4.Personal Cleansing

a. Camayb. Safeguard

5.Prestige Fragrances

a. Hugo Boss

6.Skin Care

a. Olayb. Gillette Complete Skincare

House & Home Products:

1. Laundry:

a. Tideb. Arial

2. Snacks & Beverages:

b. Pringles

Health & Wellness:

1.Health Care:

a. PUR b. Vicks

2. Oral Care:

a.Crest b. Oral-B

Baby & Family:

1.Baby Care

a. Pampers

PRODUCT LINE OF SAFEGUARD

Safeguard is available in different flavors and sizes, which make up its product line. The product line of Safeguard in terms of both flavors and sizes is given below: PRODUCT LINE (FLAVORS):

1.Pure White

2.Aloe Vera

3.Lemon

4.Herbal

5.Menthol

6.Sandalwood

7.Vitamin E

PRODUCT LINE (SIZES):

1. 125 GRAMS

2. 75 GRAMS

PAKSIA

2114Vitamin E

21 Sandalwood

21 Menthol

2114Herbal

2114Lemon

2114Aloe Vera

2114Pure White

125g75gVariants

PRODUCT LIFE CYCLE-PLC

1995 2006

PRODUCT LIFE CYCLE OF SAFEGUARD

INTRODUCTION:

According to the product life cycle, the introduction stage of Safeguard falls in the year 1995 when it was introduced in the Pakistan market and its sales were very low.

GROWTH:

The growth stage for Safeguard started around the year 1998 and it has continued since then. Around the year 2000, the sales growth of Safeguard was approaching the maturity level but due to some modifications in the product attributes and good promotion strategies, Safeguard was able to maintain its sales growth and is still reaping the benefits of its timely actions.

Introduction

GrowthSales growth

BRAND POSITIONING

The brand positioning of Safeguard is that of a good quality anti-bacterial soap. It is positioned in the consumer’s mind as a reliable soap brand that protects them against germs and diseases, provides cleanliness and helps you stay healthy.

Its positioning is benefit focused that highlights its brand attributes. But, Safeguard has now shifted its positioning focus to beliefs and values by projecting itself as a ‘Pakistan’ loving and ‘cleanliness’ giving brand.

Positioning statement:

“Jaraseem se hifaazat, din raat lagatar”

The positioning of Safeguard is reflected by this positioning statement that emphasizes on the 24-hour protection, from germs and diseases, provided by Safeguard. It also highlights the efficiency of Safeguard that it keeps fighting germs all day and gives you protection for a longer period than other anti-bacterial soaps.

BRAND STRATEGY

The brand strategy of P&G for it’s brand, Safeguard, is line extension strategy. it is available in a variety of flavors like pure white, herbal, sandalwood, vitamin-e, menthol and Aloe Vera. Besides this, it is also offered in two different sizes of 125 grams and 75 grams.

CHANNEL OF DISTRIBUTION

Safeguard is a fast moving consumer good or FMCG that is widely distributed and is available at convenient locations. Therefore, the channel of distribution through which it is distributed is indirect. So, it has to pass through different channel levels or intermediaries before reaching the final consumer.

Given below is a figure depicting the channel of distribution of Safeguard.

Channel of distribution: Safeguard

Safeguard is distributed through 4 different intermediaries before reaching the final consumer. The manufacturer distributes it to the wholesaler who passes it forward to the jobber. From the jobbers, it is distributed to the retailers and then it finally reaches the final consumer.

Manufacturer Wholesaler Jobber Retailer Consumer

TOOLS OF PROMOTION MIX USED BY P&G FOR SAFEGUARD

The various promotion tools used by P&G for Safeguard are the following:

• Advertising • Sales promotion • Public relations

Advertising:

Safeguard is advertised through both print and electronic media. Safeguard commercials are aired on TV and radio (electronic media) and its advertisements are also printed in newspapers and magazines (print media). Besides this, one can also find Safeguard billboards placed on various roads across the country.

Sales promotion:

Another tool used by P&G for promoting Safeguard is sales promotion. For this, Safeguard has its own website which offers various attractions for children (target market of Safeguard), including lucky draws. Besides this, Safeguard also sponsors different contests for children in weekly newspaper magazines, where children can enter a contest by sending a wrapper of Safeguard along with other details.

Public relation:

Fro public relation, P&G has its own website which offers complete detail about its products and full contact information for the public.

P&G and Safeguard are also involved in many societal activities such as raising funds for the earthquake victims. Also, Safeguard conducted numerous campaigns, for promoting cleanliness and patriotism, in many schools across Pakistan.

CURRENT ADVERTISING CAMPAIGN

The current advertising campaign of Safeguard is, “Commander Safeguard”. Through this campaign, the company has tried to project intangible germs as tangible characters having names like kachra rani, dirtoo, ghunsunna and algham who spread germs and diseases in the entire country and are targeted and killed by Safeguard, projected as Commander Safeguard who is a super hero.

The Commander Safeguard cartoon documentary is shown on different TV channels and is very popular with kids. Besides being aired on TV, Commander Safeguard’s story is also aired on radio.

Commander Safeguard story strips are also published in certain newspapers (for children) and he has become a household name.

The main idea communicated through the Commander Safeguard advertisement is its high-efficiency germ removal action and quality. It is a persuasive advertisement that encourages kids to fight germs by using Safeguard.

• ‘International Advertising Limited’ is its advertising agency.

THE CHARACTERS

Commander Safeguard

Algham Dirtoo Ghunsunna

Kachra rani

CHARACTER DESCRIPTION:

Commander Safeguard:

Commander Safeguard is a super hero from the planet Trico. He is the best friend of all kids and the worst enemy of all germs. He is good looking has a great sense of humor and never panics in any circumstance. in short he is James bond, Zorro and batman all rolled into one. his tools include Germishield which protects against germs day through night, non- stop and a sudden gun that shoots TCC to kill germs.

ALGHAM:

Algham is a large clumsy mass of green blob. It has specialized in spreading cold virus and drips slimy waste from his body. he throws his green blob in the form of lethal split balls at his enemies. he is the most dangerous of all germs and has been appointed as as hunchman by dirtoo and has also been named as his succesor.

DIRTOO:

Dirtoo is the king of all germs. He speaks in a low menacing voice and is a control freak. he believes that humans are inferior human beings and dreams that one day germs will rule the world and he will rule over all of them. When he laughs in an evil way, millions of dirtoos emancipate from his body. he hates Commander Safeguard because he always foils his plan of making kids sick.

GHUNSUNNA:

Ghunsunna is Dirtoo’s chief spy. He specializes in spreading coughs among children. He leads the spy brigade which keeps an eye on the happenings in the human areas and issues regular reports directly to dirtoo.he is a stammering little creature who has the tendency to panic and run at the first sign of danger. he has never gotten beaten in a battle because he has never fought one.

KACHRA RANI:

Kachra rani is an immortal germ monster created from all the rubbish and filth in the world. She specializes in spreading infection in wounds. She lives in litter bins and gets her strength from trash and filth. She idolizes dirtoo for whom she is willing to do anything. She hates kids who stay clean and follow hygiene habits because she cannot harm them

Success:

The commander safeguard advertising campaign has been very successful and has accomplished all its advertising objectives. it has positioned it as a high performance germ removal soap that provides cleanliness and keeps people healthy.

It has also created awareness amongst people about the dangers and threats posed by germs and the projection of germs as tangible characters through this campaign has also become a huge hit. Commander Safeguard has been established as children’s favorite super hero, so, don’t be surprised if you hear children singing,”Pak pak Pakistan, saaf saaf Pakistan har pal har dam azam hamara, safeguard Pakistan”