Professional Documents
Culture Documents
Strategic Marketing 1
New product Development for P& G
Prepared by
Submission Date
22.01.2007
Strategic Marketing 2
New product Development for P& G
Table of Contents
Particulars Page no.
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For whom who created us, fed us, brought us up and gave us
knowledge. Who is the most merciful, most beneficial and most
forgiver. "In the name of God, the Merciful, the Compassionate. Say
(O Muhammad) He is God the One God, the Everlasting Refuge, who
has not begotten, nor has been begotten, and equal to Him is not
anyone." For whom who is more loving and kinder than a mother to
her dear child? For whom who are the First and the Last?
We are very thankful to Mr. Mobbin-ul-Haque at UMT who gave us a
chance to prove ourselves, to gain something, to learn something,
to experience something and test ourselves. We really appreciate
our friend’s valuable suggestions and their initiative in our project.
We ( Waqas, Khubaib, Rehan, Kabir, Haroon) are desperately like to
thank Mr. Mobbin who gave us the opportunity to know the deep
complexities of market.
ذ
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Need
Washing of clothes
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Established in 1837 in Cincinnati, Ohio USA, P&G serves over 5 billion consumers in
140 countries worldwide. P&G invests US$ 1.77 billion (2000-2001) on research,
holds more than 27,000 patents, and has invented many product categories. P&G
markets more than 250 brands, has over 106,000 employees globally and worldwide
sales of US$ 40 billion. In Pakistan, P&G sells 13 high quality brands to consumers
(including shampoos, detergents, soaps, baby care and feminine protection products,
Vick products and snacks).
Today, P&G has global operations in nearly 80 countries and markets its brands in
more than 160 countries around the world. Operations in Pakistan began in 1989.
Camay launched.
P&G Pakistan incorporated.
H&S and Olay launched.
Pantene and Safeguard launched.
Soap plant acquired.
Always launched
.
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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.
Consumers
2.3 P&G Values
o Leadership
o Ownership
o Integrity
o Passion for winning
o Trust
P&G Brands and P&G People are the foundation of P&G’s success. P&G People
bring the values to life as we focus on improving the lives of the world’s consumers.
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3 Introductions to ARIEL
New Ariel delivers against one of the key Pakistani consumer needs: a detergent that
could give spotless cleaning to both colored and white clothes. This is because new
Ariel contains a unique double action system, which gets fully dissolved unlike bar
soap. The green speckles penetrate deep into the fabric to help remove tough stains.
The blue speckles give shine to your whites and brightness to your colored clothes.
Product Market:
P&G markets more than 250 brands, has over 106,000 employees globally and
worldwide sales of US$ 40 billion. In Pakistan, P&G sells 13 high quality brands to
consumers (including shampoos, detergents, soaps, baby care and feminine protection
products, Vick products and snacks).
Ariel is the mostly used detergent for high quality in washing clothes as they are using
stain free technology. Below are the different types of packing of Ariel.
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To know the production of Ariel first of all we have to know the total production of
detergent industry. Then we can figure out the total production of Ariel. The industry
production in tones is 220327. And the volume share of Ariel is 18% so simply
multiply the percentage with the total production we get.
The life style pattern of consumer is changing day by day and our product (Ariel) is
product-market fit according to this factor.
Magazines Television
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ATL includes
o Print Media.
o News Papers.
Weight price
1 K.G 135 Rs
400 grams 62 Rs
The relationship with whole seller and retailer is very good. The entire whole sellers
are tied up with the company. The retailers are tied up with the whole sellers. So
indirectly company also tied up with the retailers.
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Product Specification
• Stains removing
• FMCG (Fast Moving Consumer Good)
• Detergents are available in the market to satisfy two types of conditions.
• Hand Wash
• Machine Wash
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Production Capacity:
Locations:
• The production plant of Procter & Gamble is in Egypt; there head office is
near RC Cola Factory.
• The Production plant of Lever Brothers is in Rahim Yar Khan and there
distribution office is in Gulberg, near RC cola Factory, opposite to a
mosque, Lahore
Major Players:
• Ariel
• Surf Excel
• Brite
• Express
• Bonus
• Wheel
• Loose
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Volume Share:
Ariel 18%
Surf 17%
Brite 12%
Express 10%
Bonus 18%
Wheel 9%
Loose 16%
Volume Share
20%
18%
16%
14%
12%
10% Series1
8%
6%
4%
2%
0%
rf
iel
ite
el
e
Su
s
s
Ar
os
Br
nu
e
res
Wh
Lo
Bo
p
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Ex
New product Development for P& G
Value Share
0.45 39%
0.4
0.35
0.3
0.25 Series1
18.40%
0.2 13.40%
12.70% Series2
0.15
0.1 5.70%4.80% 6%
0.05
0
iel
Ex e
rf
s
el
e
Bit
ss
Su
nu
os
Ar
he
pre
Bo
Lo
W
13.4
Ariel %
Surf 12.7%
Bite 5.7%
Express 4.8%
Bonus 39%
Wheel 6%
Loose 18.4%
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New product Development for P& G
• The production plant of Procter & Gamble is in Egypt. All the detergents are
directly imported to Pakistan.
• The production plant of Lever Brothers is in Rahim Yaar Khan, its production
raw material of detergents is neither imported nor exported.
Raw Material:
Basic raw materials for detergents are Linear Alkyl Benzene (LAB)
Suffocates, Sodium Sulfate, Sodium Silicate, Bleaching powder, Rock salt, Caustic
soda and Soda ash. The demand is on rise in the urban areas due to ease of
applications and effectiveness.
Production Process:
Today, detergent surfactants are made from a variety of petrochemicals (derived from
petroleum) and/or oleo chemicals (derived from fats and oils).
Production Capacity
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The biggest problem faced by the industry is by local manufacturers, it’s also the
biggest challenge for the industry.
Parallel imports is one of the major problem for the industry, imported detergents are
preferred by the people, they prefer their packaging, quality, e.t.c. and people now
days has taken it as a status symbol of using imported goods.
• All the multinational companies believe that WTO will not have on their
production as such, but the local manufacturers will surely be influenced by
WTO.
• Procter & Gamble is not earning any profit from detergents, due to some
problems (mentioned in Problems Faced by the Industry), but in future they
think that they would be able to earn the profit from detergents.
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6. Pest analysis
o The rapid change in the past two decades has affected the industry badly.
Different governments with different policies and different benefits have
different affects on the industry.
o As the manufacturing trend in the economy has changed from 4.5 to 8.6
during the last five years, also the maximum level reached at the 14.0 percent
level. But still no positive and consistent change was seen.
o For the new entrants in the industry there are also some measures set by the
government which are not completely in the favor of any investment activity
with reference to the detergent industry.
o There are many groups in the country as well which have a very limited
approach towards the advertisement policies of the industry. Such groups only
perform activities for there own political interest.
o The GDP growth level in the country is very low; therefore the economy
Political & doesn’t have
manufacturing sufficient
trend in the resources to meetofthe
manufacturing requirements
detergent in favor
company of their business
shifts
Legal investors.
economy has changed 4.5 to no more in the country outside the country because of
o The
8.6 For purchasing
last 5 years power of the consumer in the economy isgovt. verytaxes.
low. The per
capita income in the economy is not up to the average standards even
o Ariel is endorsed by 7 leading washing machine manufacturers of Pakistan
Social & people now much conscious detergent is now available company creates awareness
Culture about branded products on different prices in people about detergent
Uses
7. Porter analysis
Threat of new
entrants
Bargaining Bargaining
Power of Rivalry Power of
supplier customer
Threat of substitute
products or services
o In detergent industry the production is on large scale. Here the fixed cost is
same whether you produce one unit or thousand. The only thing that matters
here is the variable cost. Like the marketing expenses to capture the share of
unorganized sector or to get market of loose detergent. The research also
requires heavy amount of investment, so barrier exist here.
o All the brands are well known and very mannerly identified by customer.
o huge amount of capital is required in detergent industry because all firms are
well organized and expenses to new entrants like marketing and distribution
expenses requires heavy investment.
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Gai soap
Ladoo soap
Sufi soap
7.3.2 Sawaiyan
Gai
Millan
Sufi
The detergents are equal in quality and standard for each segmented
customers.
The numbers of substitute are in number and have switching cost in negative.
Very less difference in price for each segmented customer so switching cost is
either in zero or in negative. Like customers of Ariel have zero switch cost if
they switch to surf excel and negative switching cost if they switch to bonus or
Brite.
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There is intense competition within the industry to capture the market in terms of
SOM. Major Key players in the industry and their SOM are given below:
Competitor analysis .8
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UPL was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar
Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL
manufacturing facility developed.
Today, Unilever Pakistan is a force to reckon with. Its contribution to Pakistan's economic development
cannot be overestimated. Now operating six factories at different locations around the country, the
company contributes a significant proportion of the country's taxes. It employs a large number of local
managers and workers. It provides a pool of well-trained and highly motivated manpower to other
segments and has introduced new and innovative technologies into the country.
The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By this
time the once dusty and sleepy village was the hub of activities for UPL. A residential estate situated
near the factory is the home of UPL employees at Rahim Yar Khan.
Unilever Pakistan (67% Unilever equity) is the largest FMCG Company in Pakistan,
as well as one of the largest multinationals operating in the country.
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This is a huge commitment, which makes us responsible and accountable to all our
stakeholders and society as a whole and strengthens our resolve to:
• Make a positive difference to the lives of low income consumers
• Create new opportunities for growth
• Improve the overall quality of life in Pakistan, by promoting education,
nutrition, health and hygiene.
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Unilever has 36% Market share in organized sector of detergent industry. Unilever
brands are
It might sound strange for a leading laundry brand like Surf Excel to say that dirt is
good, but healthy activities involving dirt are essential to development. It's how kids
.learn express their creativity and it bolsters their immune systems
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Wheel knows that you are most confident when your clothes look, feel, and smell
great. That’s why Wheel is committed to the best laundry experience, helping you
reveal your true capabilities sporting spotless clean clothes.
Both variants of Wheel are available in multiple pack sizes to suit the requirements of
consumers from all income groups.
Superior results that I and others can see, feel, and smell
The long-running Wheel is renowned throughout Pakistan for its lasting fragrance, and removing the
toughest stains with the least labour. With Wheel, washing clothes is no longer a time-consuming
chore, leaving you free and energetic to express yourself, reveal your potential, and celebrate who you
are.
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In 2005, Wheel Power White brought the brilliance of pure whiteness within
everyone’s reach by delivering an immaculate clean at par with detergents twice as
expensive. Now all our consumers are looking their best, enjoying the benefits of
great-smelling clothes that shine white like new thanks to Wheel Power White.
The volume share of Wheel in detergent industry is 9% and the value share of Wheel
in detergent industry is 6%.
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8.2
The product is currently in the trial stage and affordable sachet packs have been
launched in an attempt to gain acceptance from various socio economic segments.
Leveraging our brands through the introduction of innovative new products and the
restaging of our existing brands is a key determinant of our strong competitive
position.
Colgate toothpaste is the main driving force behind the Oral Care business,
contributing towards consistent and profitable growth. Colgate Maximum Cavity
Protection toothpaste, a key equity driver, was relaunched last year with a new
improved germ fighting formula containing micro particles of calcium and active
fluoride that help keep teeth healthy and strong.
The re launch was accompanied with a hard hitting advertising campaign highlighting
the importance of protection against cavities.
Colgate works hand in hand with the Pakistan Dental Association (PDA) to leverage
its quality perceptions and oral health awareness in the masses. This is one of the
many consumption building activities which have been pioneered by Colgate in
Pakistan.
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Since its introduction in 1981, Brite has become a powerful detergent brand with
which consumers have a long standing familiarity. In April 2004, a new improved
version of Brite, reinforced with an innovative formulation designed for enhanced
stain removal and dirt cleaning action, was launched. Brite is the only detergent in
Pakistan which has the benefit of colour brightness and fibre protection.
Colgate Herbal White was launched in July 2004. It safely polishes your teeth to help
restore their natural whiteness and shine. It's unique formula combines the expert
science of Colgate with nature's best ingredients. Colgate Herbal white contains:
Lemon extracts; to remove dirt
Saunf; for freshness in breath
Fluoride and Calcium; for strong, healthy teeth
Pearl Powder; for shining whiteness.
8.2.5
The protection of the environment and the health and safety of our customers, our
people and the communities in which we live and operate is an integral part of
Colgate-Palmolive's mission to become the best truly global consumer products
company. We are committed to conducting ourselves in a socially responsible manner
and to keeping our business operations environmentally sound. It is our worldwide
policy to manufacture and market our products and operate our facilities so that we
comply with or exceed applicable environmental rules and regulations. The health and
safety of our customers, our employees, and the communities in which we operate
must be paramount in all we do.
These concerns have been translated into the following guiding principles:
8.2.5.1Products
Colgate-Palmolive will provide the public with safe and effective products and will
strive to produce products that have the lowest practical impact on the environment.
8.2.5.2Packaging
To reduce the impact of our product packaging on the environment, we will work to
improve the environmental compatibility of all our packaging materials. Colgate
endorses the worldwide hierarchy of solid waste management: source reduction;
recycling (including reuse); incineration; and land filling.
8.2.5.3Facilities
Colgate-Palmolive is committed to the health and safety of our employees and the
communities in which we operate, as well as the protection of the environment. We
will establish and maintain programs for the operation and design of our facilities that
meet or exceed applicable environmental, health and safety laws and regulations.
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8.2.5.4Business
Colgate-Palmolive will consider environmental, health and safety issues in all
significant business transactions, including acquisitions, divestitures, discontinuance
of operations, and entry into joint ventures. We will also act in a responsible manner
with respect to the environmental protection of the lands under our management and
ownership
8.2.6
Our business being consumer products based, our success depends on the satisfaction
of our consumer. This can only be achieved by developing a clear understanding and
awareness of what the consumers want from our products. That's why your input is so
valuable to us, and you can be sure that we will listen.
8.2.7
Colgate people around the world have built a reputation as a successful company with
the highest ethical standards. Through living our values of Caring, Global Teamwork,
and Continuous Improvement, and adhering to the highest principles of integrity,
honor, and concern for the environment and others, we seek to:
8.2.8Fabric care:
Our complete line of detergents caters to the needs of every segment with a promise
to keep your fabrics clean and fresh. Our brands are household names that have
earned the confidence and trust of consumers all over Pakistan.
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Launched in the year 1981, Brite Total is one of the leading branded detergents in the
Pakistani market. Over the years, Brite has evolved together with the needs of the
Pakistani housewife in order to better cater to her wants and lifestyle.
This premium quality detergent is now even better than before with the inclusion of
globally recommended ingredients of Stain Lifters and Oil Eaters. The combined
action of these ingredients lifts the toughest of stains of oil and grease in just 1 wash.
Besides delivering unmatched performance on tough stains, Brite’s new
Formulation makes the colors even more vibrant while continuing to protect the fabric
of the clothes.
It even has the seal of approval from some of the top fabric manufacturers of the
country including Al Karam Textiles, Bonanza Garments, United Colors of Benetton
and Mohd Farooq Textiles Mills Limited.
Value share of Brite in detergent industry is 5.7% and the volume share of Brite in detergent industry is
12%.
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Express is the only brand in the popular price segment of laundry detergents. It has a
loyal consumer base and from the year 1993, Express has effectively contributed
towards the leadership of Colgate-Palmolive Co. in the overall detergent market. The
quality and price fit perfectly into the consumer needs and affordability criteria.
The value share of Express in detergent industry is 4.8% and the volume share of Express Power
is10%.
8.2.9.3 Bonus:
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Bonus is the largest selling detergent in Pakistan, contributing towards the industry
leadership of Colgate-Palmolive in the category. It is an affordable value detergent,
which offers superior cleaning performance and stain and dirt removal as compared to
traditional laundry aids. It is replacing the use of laundry soaps and loose detergents
and helps in shaping up the penetration in downscale rural markets.
The volume share of Bonus in detergent industry is 18% and the value share of Bonus is 39%
in detergent industry.
Weight price
1 K.G 37 Rs.
75 grams 15 Rs.
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The competitor profile matrix identifies the firm’s major competitors and its
particular strengths and weaknesses in relation to a sample firm’s strategic
position.
The critical success factors in the CPM include both internal and external
issues.
In a CPM, the ratings and total weighted scores for rival firms can be
compared with the sample firm.
CRITICAL SUCCESS FACTORS:- WEIGHTS RATING SCORE RATING SCORE RATING SCORES
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9.1 EXPLANATION:
Just because Surf Exel receive 3.79 rating, Bonus receive 3.64 score and third one that
has 2.42 in a competitive profile matrix. So it shows that overall Surf Exel is working
better as compare to other competitors Bonus and Brite.
Numbers reveal the relative strengths of firms, but their implied precision is an
illusion. Numbers are not magic. The aim is not to arrive at a single number, but
rather to assimilate and evaluate information in a meaningful way that aids in decision
making.
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It summarizes and evaluates the major strengths and weaknesses in the functional
areas (Management, Marketing, Finance, Production, Research and Development, and
Management Information system) of the business.
But here we are interested in marketing according to the concerned course. This
whole technique is based on intuitive judgments. Constructed in 5 steps
List down the key internal factors. Use a total of from 10 – 20 internal factors
including Strengths and Weakness.
Assign Weights to each factor that range from 0.0 to 1.0.
Assign a 1 – 4 rating to each factor to show whether the factor represents
major strength (rating =4) minor strength (rating=3), major weakness (rating
=1) or minor weakness (rating =2)
Multiply rates by weights to get weighted score
Sum the weighted score to get total weighted score
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WEIGHTED
KEY FACTORS WEIGHTS RATING SCORES
STRENGTHS:
Quality product 0.2 5 1
Good will 0.04 3 0.12
Backward Integration 0.05 2 0.1
Availability 0.04 4 0.16
Advanced technology 0.01 3 0.03
Packing 0.01 3 0.03
Advertisement 0.1 2 0.2
Trust of washing machine 0.05 3 0.15
Total of strengths 1.79
WEAKNESSES:
High price 0.3 4 0.12
Less segmented 0.05 3 0.15
Less profit 0.1 4 0.4
Image for white clothes 0.03 4 0.12
Dangerous for skin 0.02 2 0.04
Total of weakness 0.83
TOTAL 1 2.62
10.3 EXPLANATION:
As the weighted score 2.62 is above average that is 2.5.so it show a strong internal
position. And also that this renowned product (Ariel) is above average in its overall
strengths. Its strengths are enough to overcome major weakness which is a good sign
for Ariel in the path of success.
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List down the key external factors. Use a total of from 10 – 20 external factors
including Opportunities and Threats that affect the firm an its industry.
Assign Weights to each factor that range from 0.0 to 1.0.The weights indicates
the relative importance of that factor in the firm’s industry.
Assign a 1 – 4 rating to each factor to show how effectively the firm’s current
strategies respond to that factor
If rating =4 the response is superior
If rating =3 the response is above average
If rating =2 the response is average
If rating =1 the response is poor
Rating is company based whereas weights are industry based.
Multiply rates by weights to get weighted score
Sum the weighted score to get total weighted score
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WEIGHTED
KEY FACTORS WEIGHTS RATING SCORES
OPPORTUNITIES
EXPLANATION:
The total weighted score is above average that is 4.43.This is a very good score. It
shows product efforts to pursue strategies that capitalize on external opportunities and
avoid threats.
As it deals in many projects like less import duty, per capita which are good
opportunities for Ariel in future and it will surely reduce major threats which are
currently creating many hurdles in the path of success of achieving good goal that is
to maximize profit.
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S W:
S1. S6. W1.
IFE S2. S7. W2.
S3. S8. W3.
S4 W4
EFE S5. W5
T: Match S-T
T1. S1 – T1
T2. __ – T2
New creative
T3. S2 – T3
S7 – T4 strategy
T4.
T5.
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THE IE Matrix is based on two dimensions. The IFE total weighted score on x- axis
and the EFE total weighted score on y- axis. The IFE matrix and EFE matrix for each
division of the organization should be constructed. On the x- axis of the IE matrix, the
IFE total weighted score of 1.0 to 1.99 represents a weak internal position; a score of
2.0 to 2.99 is considered as average; and a score of 3.0 to 4.0 is strong. Similarly, on
the y- axis, an EFE total weighted score of 1.0 to 1.99 is considered low; a score of
2.0 to 2.99 is considered as medium; and a score of 3.0 to 4.0 is high
The IE MATRIX can be divided in to three major regions that have different strategy
implications.
First, the total fall into cells I, II, IV, can be described as GROW AND BUILD.
Second, the total fall in to cells III, IV, VII can be managed as HOLD AND
MAINTAIN.
Third, the total falls in to cells VI, VIII; IX can be described as HARVEST OR
DIVEST
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Strong Average
weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
4.0 3.0 2.0 1.0
4. I III
II ×
0
HI IV V VI
THE
GH
EFE 3.0 TO 4.0
VII VIII IX
TOTA 3.0
MEDIUM
L
2.0 TO 2.99
WEIG
2.0
HTED LOW
1.0 to 1.99
1.0
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The strategic group map shows us where r we standing and where is the space vacant
to go ahead. Let’s look at the following strategic group map by taking R&D and
Quality as variables and we stand.
Quality
Ariel, Surf
High Excel
Wheel, non
Low brand
High R&D
15.1 Explanation
By taking the complete snap shot of strategic group map we concluded that we (Ariel)
and surf Exel lies in the same spot while the major market share holder bonus is in
medium spot.
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Major share of market lies with the local manufacturer like bonus and surf
Exel.
The growth rate of demand of detergent is increasing day by day due to the
change of life style pattern. The use of washing machines is playing a major
role here. And in the industry Ariel has the good trust of washing machines.
Those firms who are preparing detergent locally has less price due to no
import duty. The import duty is only on ingredients, which is less than packed
detergent. (like Ariel is imported with packing)
In present scenario where customer is the king there is the need to minimize
the price according to economic condition of Pakistan. And that’s why bonus
has the major market share.
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Below is the result of CVA that has been produced after the conduction of 50
samples from different location, gender, and income level individuals.
• From 50 random samples 6% people are those who use detergent for the
cleanness of clothes, 16% are those who use detergent for the purpose of
shine, 24% are those who uses detergent for the easy to use, 6% are those
who mention other things and 14& who don’t use the detergent.
• 24% people who use detergent powder have income less than 5000, 12%
between 5000-10000, 16% between 10000-15000, 14% between 15000-
20000, 20% lies in above 20000 salary.
• 18% people live in gulberg who use it, 12% in model town, 20% in ichra,
18% in allama iqbal town, 18% in town ship.
• For the cleanness of clothes 18% have less than primary education, 6%
primary to metric, 10% metric to graduation, and 10% graduation and
above.
• For the better shine in clothes 6%, 4%, 4% and 8% according to above
pattern of education level.
• For easy to use 6%, 8%, 4%, and 8% according to above pattern of
education level.
• 8% are those people who mentioned other things.
• 26% persons ranked price as very important factor who salary below 5000.
• 16% people ranked price as some what important and have salary between
5000-10000.
• 18% ranked as important and have income level between 10000-15000
• 18% ranked as less important and have income level between 15000-20000
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• 22% ranked price as unimportant and have income level above 20000.
• 2, 2, 2, 4 and 8 percent are those persons who mention any other detergent and
have income level below 5000, between
• 5000- 10000, 1000-15000 and15000-20000 respectively.
Quality respondents consider while buying detergent powder data
taken on their educational level
• 12, 6, 4 and 4 percent people rate quality as very much important while
buying the detergent powder and have less than primary, primary to metric,
metric to graduation and above graduation education level respectively.
• 2, 2, 4 and 8 percent people rate quality as some what important while
buying the detergent powder and have less than primary, primary to metric,
metric to graduation and above graduation education level respectively.
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• 24% male and 2% females gives packing as very much important factor,
12% and 4% to some what important, 16% and 2% to important, 14% and
4% to least important, 20% and 2% gave unimportance to packing.
• 86% people say detergent produce better result as compared to soap. Out
of this 26% have education level below primary, 16% primary to metric,
16% metric to graduation and 28% have education level above graduation.
• 14% people say soap produce better result as compared to detergent. Out
of this 4% have education level below primary, 2% primary to metric, 2%
metric to graduation and 4% have education level above graduation
• 26% respondents who are govt. servant rate quality as much important
factor, 16% private employees rate it as some what important, 18%
students and business men rate it important and 22% rate quality as least
important who mentioned any other class.
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Selection of selected brand among the high price high quality, low
price low quality, low price low quality and low price with high
quality.
• 12% people rate Ariel, 2% rate express, 8% rate surf Exel and 4% rate any
other detergent as high price high quality.
• 6% people rate Ariel, 2% rate express, 4% rate surf Exel and 2% rate any
other detergent as high price low quality.
•
• 8% people rate Ariel, 2% rate express, 4% rate surf Exel and 2% rate any
other detergent as low price high quality.
•
• 6% people rate Ariel, 8% rate express, 10% rate surf Exel, 4% rate any
other detergent, and 6% rate bonus any other detergent as low price low
quality.
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Below is the whole description of three year marketing plan for detergent bar (new
product). This includes 4 P's or 4 C's (the new terminology used in marketing rated as
marketing mix) and the financial analysis of the new product.
The product line of P&G will augment and the bar will bring innovation and cater the
uplifting social changes in the environment due to bad economic factor.
In the first year the product will launched in the rural areas. At the end of year one the
company will introduce the product in the urban areas only in metropolitan cities.
The new product has uniqueness in its self because the product is new in Pakistan.
The product has already been launched in India in 1988. The product was market fit
depending on only two factors that is the economic condition of the concerned
country and the social factor that plays a major role to make the product successful.
Here in Pakistan the scenario is same and suits to the social and economic condition.
The target market of care detergent bar will be those people who have low income but
want high quality. As in our CVA most of the respondents rate price as most valuable
thing and want high quality with low price.
18.5.1 Product
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The product will be named as care detergent bar. There will be two types of packing
of the product. The single detergent bar will be weighted 200 grams.
1. Single bar (for small family or low income level people) 200 grams.
2. Family bar containing 3 bars (for big families) 400 grams.
3. Economy bar containing 4 bars (for saving conscious people) 600 grams.
18.5.2 Packing
The price of bonus is 37 rupees. So the per gram price is 0.037 = 37/1000. Our major
focus is on bonus that has the most volume share of the market. But for the value
share it also comes bonus so the major competitor is bonus.
The price of detergent bar will be 0.035 per gram. So the single bar will price to
consumer at 7 rupees. 200 grams*0.035=7.
18.5.4 Positioning
The positioning of the product will be low price high quality. The positioning of
detergent powder is merely based in the usage of washing machines or u can say easy
to use or according to the new trend. But here the product will be positioned as "love
for family" the chosen thing will justify the product 100% based by the social factor.
As most households used the soap in order to show love to their husband and children.
The distribution channel will operate from major cities of Pakistan. That will cover
the rural areas around them
18.5.6 Promotion
30 percent of sales will be allotted to promotion of newly launched
detergent bar to create awareness in the minds of customers.
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Electronic Media:
Print Media:
Particulars Rs.
Jung news paper- main page (4*4) c.m 100000
Daily times – main page (4*4) c.m 135000
Total 235000
Source Haroon Irshad Sulehri
Asst. marketing manager
Saiha communication
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New product Development for P& G
Let’s assumed that 100,000 thousands total bars will be sold in one month then total
sales will be
Sales 1 8400000
CGS 2 1296000
G.P 7014000
Indirect expenses
Admin.expenses 800000
5655000
NOPBT 1359000
Taxation 5 407700
NOPAT 951300
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New product Development for P& G
N-1
1200000* 7 (price of standard unit) = 8400000 total sales (in Pak Rs.)
N-2
General Expenses
(Pak Rs.)
Stationary 10000
Electricity 15000
Telephone 20000
Misc. 10000
Total 55000
N-4
Advertising expenses
30 second add on geo T.V ones a week = (48*50000) = 2400000
Add on Jung news paper 4*4 inch in Sunday paper twice a month = (24*100000) =
2400000
N-5
Taxation
1359000*30= 407700
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New product Development for P& G
Let’s assumed that 1, 50,000 thousands total bars will be sold in one month then total
sales will be
Sales 1 12600000
CGS 2 3240000
G.P 9360000
Indirect expenses
Admin.expenses 800000
5655000
NOPBT 3705000
Taxation 5 1111500
NOPAT 2593500
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New product Development for P& G
N-1
N-2
N-3
General Expenses
(Pak Rs.)
Stationary 10000
Electricity 15000
Telephone 20000
Misc. 10000
Total 55000
N-4
Advertising expenses
30 second add on geo T.V ones a week = (48*50000) = 2400000
Add on Jung news paper 4*4 inch in Sunday paper twice a month = (24*100000) =
2400000
N-5
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New product Development for P& G
Let’s assumed that 2, 00,000 thousands total bars will be sold in one month then total
sales will be
Sales 1 16800000
CGS 2 4320000
G.P 12480000
Indirect expenses
Admin.expenses 1000000
6060000
NOPBT 6420000
Taxation 5 1926000
NOPAT 44940000
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New product Development for P& G
N-1
N-2
General Expenses
(Pak Rs.)
Stationary 15000
Electricity 15000
Telephone 20000
Misc. 10000
Total 60000
Advertising expenses
30 second add on geo T.V ones a week = (48*50000) = 2400000
Add on Jung news paper 4*4 inch in Sunday paper twice a month = (24*108000) =
2592000.
N-5
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Rs.
Sales 16800000
Variable Cost 12480000
Contribution Margin 4320000
Fixed Cost 4320000
Net income 0
(Break Even Point)
Break Even Units = Fixed Cost/price per unit – variable cost per unit
= 4320000/7 – 3
= 4320000/4
= 108000 units.
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21. Bibliography
• www.Statepak.gov.pk
• www.unilever.com
• www.P&G.com.pk
• www.colgate.com.pk
• Stock exchange
• General stores
• www.finace.gov.pk
• www.ask.com
• Sindhu J. Bhattacharya
P&G spoke person. New Delhi
Mr. Salman
Marketing manager P&G
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