SAFEGUARD SOAP

PREPARED BY:

NAZISH SOHAIL BBA HONS

GROUP MEMBERS:
SHAHBAZ CHAUDHRY BBA HONS

M USMAN AKRAM MBA PROFESSIONAL

KHURRAM SALEEM MBA PROFESSIONAL

PRESENTED TO:

SIR KAMRAN SAEED

HAJVERY UNIVERSITY LAHORE

 ACKNOWLEDGMENTS

My first and foremost humble and gratitude to “ALLAH”

the almighty for giving me the valor to remain
dedicated to make this audit report.

Apart from it I take the opportunity to acknowledge the real

efforts of:

First, we would like to thank SIR KAMRAN SAEED, for his

valuable support and encouragement which he has offered.
His words of wisdom will always be remembered, and we are
convinced that the knowledge of marketing that he has
imparted would go a long way and helping us all through our
professional career.

Secondly to SAAD MUNAWAR KHAN, assistant brand

manager, safeguard Procter & gamble, Pakistan, he have
provided us with valuable information which helped us a lot
in completion of this project

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TABLE OF CONTENTS

3
15 Distribution Strategy 33
Sr# List Page
16 Pricing Strategy 34
1 Executive Summary 4
17 Advertising And Promotion Strategy 35
2 Market & Industry Analysis 6
18 Conclusion & Recommendations 44
3 Situational Analysis 7
19 References 45
4 Company Introduction 8

5 Brand Portfolio- Pakistan 11

6 SWOT ANALYSIS- P&G 17

7 Product Profile 18

8 Safeguard SWOT analysis 23

9 Competition Analysis 25

10 Target Segments 26

11 Segmentation Strategies 27

12 Market Strategies 29

13 Strategies for creating Competitive Advantage 30

14 Positioning Strategy 32

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EXECUTIVE SUMMARY

Praise to be Allah Almighty, the one testing us all at all

times and making decisions about what we don’t know and
can’t know.

Today it is impossible for a common man to run a business

especially in this period of competition. This situation
demands energetic, duly qualified experienced business
administrators who could meet the challenges of this age of

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modernization. HAJVERY UNIVERSITY produces management
specialists fully aware of the ins and outs of the business
management, and capable of meeting the challenges of
modern business environment.

The scope of the project is to discuss the marketing

strategies adopted by P&G Pakistan, applied on its brand
Safeguard. From the last month or so our group is in a
process of continuous research on marketing functions and
strategies adopted by P&G. These marketing functions mainly
include the marketing mix i-e, Product strategy, Pricing
Strategy, Promotional tools and strategies and Placement &
Distribution strategy as well as other market strategies.

Moreover the project also discusses the analysis of

competition, market growth & trends, opportunity analysis
and strategies for creating competitive advantage adopted by
P&G Pakistan.

We will like to add that the project will provide the readers
and the listeners’ very high profile information about the
marketing strategies as a whole and also about the
organization Procter and Gamble. In the end we hope that the
project will result very profitable both for the readers and
Safeguard Soap. Your feedback in the end either critical or
substantial will be highly appreciated.

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MARKET DEMOGAPHICS
• Population: 176,242,949 (July 2009 est.)

• Growth rate: 1.828%

• Birth rate: 27.74 births/1,000 population

• Death rate: 8 deaths/1,000 population

• Net migration rate: -1.24 migrant(s)/1,000 populations

• 0-14 years: 37.2% (male 33,739,547/female

31,868,065)

• 15-64 years: 58.6% (male 52,849,607/female

50,378,198)

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 • 65 years and over: 4.2% (male 3,475,927/female
3,931,605) (2009 est.)

INDUSTRY ANALYSIS

POPULATION : 176,242,949 (July 2009 est.)

Children: 37.2% (65607612)

Adults :62.8% (110680572)

children equity: 60% (14643619)

adult equity: 40% (27802960)

TOTAL TARGET MARKET: 42446579

SITUATIONAL ANALYSIS

Soap is a major consumer able item and there is a huge

demand and potential in this market particularly the anti –
bacterial segment. The anti bacterial market segment has
grown year on year by more than 7 % percent due to
increased consumer awareness and education on the
benefits of anti-bacterial soaps. As a result, the pie is
growing bigger every year.

Some uncontrollable situational factors that are faced by the

Proctor & Gamble and Safeguard soap are as follows,

 Demand: Although the demand for P&G products is very

high but when we talk about the demand of the Safeguard

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soap the demand is growing in the antibacterial category.
The market share of Safeguard soap is more than 15 % in
Pakistan out of the Rs 21 billion soap market.

 Competition: today; two brands are directly competing

Safeguard (P & G); Dettol (Reckitt Benckiser) and lifebuoy
(Unilever)

 Legal/political: these are the uncertainties that are

extremely variable in the political conditions of Pakistan.
Constant political instability does affect the company in
terms of building new relations with new governments all the
time.

 Social and Cultural factors: the company has to be very

careful in the implementation of its promotional campaigns,
since the social cultural environment of Pakistan is very
conservative and any suggestive advertisements usually
face a lot of negative reactions on the part of the consumer.

 Other factors: like the government regulations and

technological advancements have had no significant effect
on the product and the company.

Company Introduction
P&G Pakistan

Procter & Gamble Pakistan, headquartered in Karachi,

commenced operations in Pakistan in 1991. Our goal was to
become the finest global consumer goods company
operating locally in Pakistan. To fulfill this goal, we are
serving Pakistani consumers with 12 high-quality brands
locally that strive to make everyday lives better.

With commitment came growth, and in 1994 we acquired a

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

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manufacturing capacity with an investment of $3 million. In
2004, with an initial investment of about half a million U.S.
dollars, a PUR facility was set up with a production capacity
of 50 million sachets of the water purifier annually. The P&G
Hub plant is the single plant that produces PUR globally.
Today, the Hub plant is equipped with state-of-the-art
manufacturing technologies and quality assurance processes
and systems, reflecting the company's values of safe,
hygienic and ethical manufacturing practices.

P&G Pakistan headquarters are consistently upgraded to the

company's progressive values. Investments of $1 million and
a recent $600,000 investment have taken place in the work-
space environment to date. The P&G Pakistan head office
today hosts high-speed digital networks and advanced
systems and facilities.

As a company with vast global experience, P&G always has

believed in the potential Pakistan has as a country. Since
1989, the total amount invested by P&G Pakistan in assets,
working capital and market development has exceeded Rs 6
billion. In addition, Procter & Gamble contributed Rs 3.1
billion to the national exchequer in the form of taxes and
duties during 2005 and 2006, increasing 13 percent over the
previous year.

P&G has attracted outstanding individuals since the day it

began operations in Pakistan. The company employs more
than 257 people and creates more than 4,000 jobs indirectly
in Pakistan, 99 percent of which are held by Pakistanis. All
this makes P&G a more locally focused company.

Facts about P&G Pakistan

• Procter & Gamble started its operations in Pakistan in

1991.
• P&G Pakistan is headquartered in Karachi.

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 • P&G Pakistan has reinvested over $100 million in
Pakistan within the last 12 years.
• P&G Pakistan has invested 63 million dollars over the
last 5 years in terms of capital, marketing and training.
• P&G Pakistan has contributed close to 7 billion rupees
to the Pakistani government's revenues over the last 5
years in the form of sales tax, customs and excise
duties.
• P&G Pakistan creates more than 4,000 jobs in Pakistan.
99% of the jobs that P&G Pakistan creates in Pakistan
are held by Pakistanis.
• P&G Pakistan owns a sprawling 7-acre land
manufacturing facility at Hub, Balochistan, which
manufactures Safeguard and Camay soaps. A recent 5
million dollar investment has tripled the plant's
capacity.
• P&G Pakistan runs several social marketing programs in
the field of education and health. These programs
benefit more than 3 million people annually.

MISSION STATEMENT
We will provide branded products and services of superior
quality and value that improve the lives of the world's
consumers, now and for generations to come. As a result,
consumers will reward us with leadership sales, profit and
value creation, allowing our people, our shareholders and
the communities in which we live and work to prosper.

Vision Statement

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

Organization Portfolio
ESTABLISHMENT:

P&G is an American Global Corporation based on

manufacturing a wide range of consumer goods. It
was born on October 31 1837 , headquatered in
Cincinnati, Ohio, USA.

As of 2008, P&G is the 6th largest company Market

capital, 14th largest by profit and 6th in Fortunes most
admired companies list.

COMPANY TYPE:

Public company.

BRANDS:

P&G offers a variety of brands. P&G’s existing

products grow through innovation and renovation
while maintaining a balance in geographic activities
and product lines.

The Company's priority is to bring the best and most

relevant products to people, wherever they are,
whatever their needs, throughout their lives.

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

Ariel Fabric cleaning and care at its best.

A moisturizing bar soap enriched with

perfumes of French inspiration that leaves your skin feeling
fresh, soft and sensual.

Olay® offers an array of skin-care and personal cleansing

products that provide multiple benefits designed for women
of all ages.

Always® offers great protection throughout

your menstrual cycle to help you live life to the fullest —
without interruption.

We strive to bring innovation, inspiration and

enjoyment to people's everyday lives through our

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intelligently innovated, intuitively designed and carefully
crafted products.

Crest® toothpastes, toothbrushes, whiteners, flosses and

rinses create healthier, brighter smiles every day.

Whether you're monitoring a human heart,

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

ESCADA is an international mark of luxury,

elegance and quality, a signature recognized around the
globe for products of the highest standards.

The ESCADA brand stands for happiness in life — "Joie de

Vivre" embodying a vivacious and glamorous woman,
following her instinct and ambition to make the best of every
moment.

Introducing Gillette® Complete Skincare™ — the first line of

advanced dermatologist-tested skincare products made for
men, by the people who know a man's face best. Gillette
Complete is designed to deliver the five signs of noticeably
healthy-looking skin in just 14 days

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 Head & Shoulders helps eliminate scalp
dryness, itch and irritation, for hair that's 100% flake-free
with regular use.

Change your look every season, every day or

every boyfriend? There’s an Herbal Essences that's right for
you.

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

People who wear HUGO have fun, enjoy life and take risks.
They don't care about rules but live their life on their own
way. Independent, unconventional and modern. Creative
people who are on the move. HUGO is the look and feel of
London, Berlin and New York — the style for individualists.

The world of BOSS is driven by success and

achievement; a modern place, yet defined by the classic
values of elegance and style.

At Old Spice®, we're dedicated to staying up-to-

date on emerging technologies that protect you from odor
and wetness, and keep you smelling great. With our new

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

For more than 50 years, Oral-B® has produced

the highest-quality dental hygiene products for you, your
family and dental professionals worldwide. Trust the brand
more dentists use themselves worldwide

For all stages of development, Pampers® has

products to help your little one stay clean and comfortable.
From diapers for babies to pants for toddlers, we've got your
child covered — with great fit and a little fun, too. What's
more, parenting advice, child-care tips and activity ideas can
be found online from the experts at the Pampers Parenting
Institute.

Whether you want to fight frizz, boost volume, or add

moisture for strength and smoothness, Pantene has a Pro-
Vitamin formula that helps hair reach its potential.
* Shampoos, conditioners, stylers and treatments

It's easy to fall in love with the irresistible taste

of Pringles®. But choosing a flavor? Now that's the hard

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part. With so many delicious varieties, you'll want to try
them all. No matter which one you decide to pop, one thing's
for sure — the fun
won't stop!

® products offer you delicious filtered water at 1/10th of

the cost of bottled water.

Safeguard® is the No. 1 antibacterial soap

worldwide. Safeguard is designed to provide excellent germ
protection for the whole family.

Vicks® provides temporary relief of coughs and cold or flu

symptoms.

Dunhill caters to the needs of the discerning

man, from formal and casual menswear, to handcrafted
leather goods through to fine men’s accessories, wrist
watches, fragrance, cigarettes, writing instruments, cigars…

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 PUMA is the original "sport lifestyle" company.
Building on its core sports heritage, it combines the
influences of lifestyle, music and fashion.

PUMA Fragrances capture this character by effortlessly

jumping boundaries — between sport and fashion, cultural
influences and different design choices. We provide both
colourful, trendy propositions for the teen consumer and
more sleek-looking products for young adults

SWOT ANALYSIS- P&G

STRENGHTS

• Strong financial position

• Large scale of operations

• Strong branding

• Product innovation

• Developing markets infrastructure

WEAKNESSES

• Customer concentration

• Lack of effective distribution in some countries

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OPPORTUNITIES

• Wide range of demography

• Developing markets

• New products

• Acquisitions

THREATS

• Increase in prices of raw materials

• Uncertainity in the economic conditions

• Intense competion

• Unfavorable business laws and political unstability

PRODUCT PROFILE
SAFEGUARD SOAP

SAFEGUARD® IS THE NO. 1 ANTIBACTERIAL SOAP

WORLDWIDE; IT IS THE ONLY BAR SOAP REGISTERED WITH
THE FDA. SAFEGUARD IS DESIGNED TO PROVIDE EXCELLENT
GERM PROTECTION FOR THE WHOLE FAMILY.

SAFEGUARD, LAUNCHED IN 1995 BY PROCTER & GAMBLE

HAS SET NEW STANDARDS FOR DEFINING "HEALTH &

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 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.

COMPOSITION AND INGREDIENTS

Ingredients/Chemical Name:

Active Ingredient:

Triclosan

Inactive Ingredients:

1. Water

2. Sodium lauryl sulfate

3. Sodium laureth sulfate

4. Lauramide DEA

5. Glycol distearate

6. Cocamidopropyl betaine

7. Sodium sulfate

8. Fragrance

9. Guar hydroxypropyltrimonium chloride

10. Citric acid

11. Hydantion

12. Tetra sodium EDTA

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13. FC&D Red No. 4

14. FD&C Yellow No. 5.

Health Hazards (Acute and Chronic):

Ingestion: May cause mild, transient gastrointestinal

irritation with nausea, vomiting and/or diarrhea.

Eye Contact: May cause mild, transient irritation.

Skin Contact: May cause mild, transient superficial effects

similar to produced by other mild hand soaps. Use on
irritated or extremely dry skin may aggravate the existing
condition.

PHYSICAL AND CHEMICAL PROPERTIES

Boiling Point: above 21oF

Vapor Pressure: N/A

Vapor density: N/A

Odor threshold: N/A

Coefficient of water/oil distribution: n/a

Scooped Density: N/A

Appearance and odor: Peach pearlized liquid; sweet smell

Specific gravity: 1.02

% volatile by volume: about 80%

Evaporation rate: same as water

pH (10%): 5.9-7.9

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Solubility in water: complete.

PRODUCT TYPE:

Consumer and biz product

Safeguard soap is a fast moving consumer product.

Convenience good

It is an essential good vis-à-vis it’s target market, which is all

households (primarily children) who can afford buying soap
and who want to fulfill an everyday need (primarily bathing)
that provides them and their family with a 100% anti-
bacterial solution – complete protection from all germs/
bacteria and cleanliness from dirt / grime.

PRODUCT ATTRIBUTES:

Safeguard soap has set new standards for defining "health &
hygiene" in Pakistan.

BRAND NAME:

Safeguard

Slogan:

BRAND POSITIONING:

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Anti bacterial soap

BRAND IMAGE:

Health and hygeine

BRAND EXTENSION/ PRODUCT MIX:

The seven variants provide an ideal product mix in terms of

consumer needs i.e.

(2 skus – 115 Gms and 70 Gms):

• Pure White: Pure White is the flagship offering of Safeguard signifying the
core benefit of superior germ protection.
• Herbal: Clears and purifies your skin from germs.
• Lemon: Makes you feel refreshed with its zesty smell.
• Menthol: Keeps you fresh in hot weather.
• Aloe Vera: Moisturizes your skin
• Sandalwood: Provides natural care gently.
• Vitamin E: Cleans your skin and makes it smooth

New launch of Safeguard Herbal Soap, which takes the tally

of soaps to six variants.

Unique Proposition that Safeguard Herbal Soap has to offer

is:

“The fundamental idea is that ordinary beauty soaps only

offer aspects of beauty but what healthy skin requires is

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both freedom from germs and the use of natural extracts;
something only offered by Safeguard Herbal Soap which
provides not only Maximum Protection from germs but also
contains Avocado oil and botanical extracts.”

Product line extension and uses

The product is used primarily for showering / bathing but is

also used for hand washing. A product line extension is
Safeguard Hand wash which is also available under the
Safeguard Brand.

Product Life Cycle

Since this is a Fast Moving Consumer Product, the average

product life cycle of this product (if used every day) is 30
days and 2 years if not in use (if stored in a cool and dry
location). The brand is entering from growth to maturity.

SAFEGUARD- SWOT ANALYSIS

THE STRENGTHS

• The brand’s Germ-kill heritage (Triclosan) is seen as strong

and adds on trustworthiness

• Excellent for treating skin irritations, cuts/bruises and

seasonal applications

• Brand comes from a reputable (old) company

• Loyal following of ‘Original’

THE WEAKNESSES

• dissolves quickly in water

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THE OPPORTUNITIES

• Leverage the powerful brand equity associated with the

Safeguard Brand to make Safeguard Soap an everyday
use proposition.
• People are becoming more health conscious
• Trusted brand for providing education about health and
hygiene

THE THREATS

• Competition from Dettol and lifebouy

• Economical uncertainity

PACKAGING:

The packaging makes the brand look expert and modern.

This packaging makes the brand look more contemporary
and hi-tech. It ensures more emphasis on the variants that
have already been a part of the product but never been
communicated to the customer that well. This new
packaging has clearly identified that there is a separate
product for each skin type.

Safeguard is available in a variety of packaging formats to

suit all consumer needs and consumption occations.
Packaging is innovative to meet the individual needs
consumers all over the country.

The range of formats extends from the individual bar soap

(115 Gms)to the family size bar(70 Gms), for in-home and
office usage.

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LABEL:

The label provides the information like the ingredients,

chemical composition, quantity, logo and the stamp of FDA
with lisence is also mentioned.

COMPETITION ANALYSIS

Here is a brief description about the antiseptic soap

producing companies.

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

it is the only bar soap registered with the FDA.
Safeguard is designed to provide excellent germ
protection for the whole family.

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.

The market share of safeguard is the biggest in antiseptic

soap category with 22 % share. Safeguard users have the
perception that it is providing them with Continuous Germ
Protection, Gentle on skin, Smells Good, has a easy to grasp
shape and the functional needs portrayed is of an everyday
soap with germ protection.

Safeguard is an anti-bacterial soap that provides superior

longer lasting germ protection. Safeguard helps protect your
family from germs which are found everywhere even on
apparently clean surfaces.

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 2. Dettol soap is a brand of Reckitt Benckiser Pak Ltd
and it has been operating in Pakistan since 1999 after
taking over from Reckitt & Colman. Market share of
Dettol soap in the soap market is around 9% at the
end of December 2008.

The Dettol soap users have the perception that it is effective

in germ kill with the medicinal smell of Dettol liquid which is
used for Bruises & Cuts, Insect bites, washing of clothes,
Mopping of floors, Shaving, Bathing and Cleansing of skin
and used mostly during summers. Its functional core need is
incidental antibacterial.

3. Lifebuoy is one of Unilever's oldest brands. Lifebuoy

Royal Disinfectant Soap was launched in 1894 as an
affordable new product in the UK, to support people in
their mission for better personal hygiene. Lifebuoy soap
aims to provide affordable and accessible hygiene
solutions that enable people to lead a life free from
hygiene related worries, everywhere, regardless of the
boundaries of nationality, religion and socio-economic
status. Lifebuoy has a market share of 15 %.
Lifebuoy users see the soap as a decent quality,
affordable germ protection agent containing carbolic
acid as its germ protection agent and its functional
need portrays that it is an everyday soap with germ
protection for the middle and lower middle class.

TARGET MARKET

The target market for Safeguard soap is all households

(primarily Children) who can afford buying soap and who
want to fulfill an everyday need (primarily bathing) that
provides them and their family with a 100% anti-bacterial
solution – complete protection from all germs/ bacteria and
cleanliness from dirt / grime.

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Safeguard believes children are potential agents of change
and imparting education on the importance of hand washing
with soap will enable them to adopt healthy habits early in
life”　

TARGET STRATEGY

In the mind of the consumer, anti-bacterial soap should have

the following:

A product whose core function is to clean skin, making it

softer and smoother, while leaving a feeling of freshness
behind. Good perfume and foam combine to deliver this
freshness experience.

The key functional benefit is that it removes dirt, oiliness and

other impurities from skin.

Germs are not top-of-mind for the average consumer, but

are a function of Dirt and disease. Research led us to know
that consumers are largely unaware of the diverse nature of
‘jaraseem’. They just know that Germs (jaraseem) are the
bad guys. They don’t know that there are different types of
germs.

Different antibacterial competitors are trying to own a higher

ground by building on already present germ-kill equity. Like
Dettol has given it’s slogan of “Dettol protects against a
wide range of unseen germs, including bacteria and viruses”

While safeguard is focusing on ‘Din Raat Lagataar Tahaffuz’

which is more powerful in the mind of the consumer.

Lifebuoy is following the “germ buster’s” strategy.

SEGMENTATION STRATEGY

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 • Psychographic Segmentation
• Demographic Segmentation
• Geographic Segmentation
• Behavioral Segmentation

MARKET DEMOGRAPHICS (GEOGRAPHIC, DEMOGRAPHICS,

BEHAVIORAL FACTORS)

The target markets analysis of Safeguard soap is:-

GEOGRAPHIC LOCATION

Include almost all Urban; suburban; small town; and some

rural areas of Pakistan

DEMOGRAPHICS

– Gender Male; female

Age 18years to 45 years

– Kids

Age range 5-14 years

SOCIOECONOMIC STATUS

Mainly targeting middle class and upper middle class in

urban and sub-urban areas – primarily cities and surrounding
areas. Rural market penetration is limited and is primarily
driven through indirect channels (e.g. Wholesale)

PSYCHOGRAPHICS

Young housewives and mothers who care about the health

and well being of her family. And educating children about
health and hygiene.

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MARKET STRATEGIES

MARKET NEEDS (QUALITY CRAFTSMANSHIP, INNOVATIVE

DESIGNS, CUSTOMER SERVICE)

P&G is conscious of the changing consumer needs and

trends and is constantly conducting market research to
assess opportunities and threats. Quality of the product is
the number 1 priority as well as research on new variants. In
addition, a new customer hotline has also been added to get
instant feedback on product use, problems and activities.

MARKET TRENDS

The soap market has been most affected by the recent sky
rocketing price of palm oil which is the primary ingredient of
soap noodles. This has caused the average price of soap
noodles to increase by 20% - 25 % forcing producers (also
P&G) to increase prices of their soap products by almost as
much so as not to put excessive pressure on their margins.
This will undoubtedly result in decrease in soap sales
volumes (higher prices means less consumer off take) as
well as disruption in the market due to several quoted prices
of the same product available resulting in dissonance in the
wholesale and retail markets as well as confusion in
consumer buying decisions at the point of sale.

MARKET GROWTH

The overall soap market is growing by 15 % while the

antibacterial segment is growing by 9%. Hence, there is a lot

30
of potential in the market for growth and additional brand
penetration and brand building.

OPPORTUNITY ANALYSIS

Based on the competitive analysis, P&G found out that there

are a lot of opportunities which will help the Safeguard soap
capitalize a greater market share. New Safeguard Soap’s
ability to gain real consumer insights, to launch products and
variants that consumers actually want, supported by
insightful advertising that talks to consumers in their own
language, are all vital elements, which will lead to success of
Safeguard and the Safeguard soap as a brand.

• Extensive Market Growth

• Market Penetration and Market Expansion.

• Achieving High Gross Margins

• High Customer Services and Satisfaction

• New Product Development and Entrepreneurship.

STRATEGIES FOR CREATING COMPETITIVE ADVANTAGE

DIFFERENTIATING STRATEGY:

They have developed a very clear image of safeguard soap

in the minds of their target customers.

Health Education is a vital part

• Schools programme needed for success

• Children - powerful +ve change agents in household

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OVERALL EXCELLENCE STRATEGY:

P&G is a trusted brand and its products are consider to be

best and of very high quality worldwide. This is a very
important competitive advantage of P&G.

　 Introduction Growth Maturity Decline

Characteristics 　 　 　 　

Customers Innovators Mass Market Mass Market Loyal Customers

Competition Little if any Increasing Intense Decreasing

Low levels, then Slow/no annual

Sales Rapid Growth Declining
rising growth

Strong, then Declining

Profits None Low/none
at peak annually

Marketing
　 　 　 　
Implications

Market Market
Overall Strategy Defensive Efficiency
Development Penetration

Stable or
Costs High per unit Declining Low
increasing

Improved
Product Strategy Undifferentiated Differentiated Pruned Line
items

Lower over
Pricing Strategy Most Likely high Lowest Increasing
time

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 Distribution
Scattered Intensive Intensive Selective
Strategy

Category Brand
Promotion Strategy Brand Loyalty Reinforcement
awareness Preference

POSITIONING STRATEGY

Positioning Against Competitor

Safeguard is positioned as a premium brand which focuses

on children. The children are the focal point for Safeguard
soap educating them about health and hygiene through the
famous commander safeguard series and many other
promotional campaigns. Children are their ultimate focus as
compared to the Dettol soap and lifebuoy, the former
focuses on mothers in the family and later on children.

Positioning In Relation To Product Attribute:

The primary positioning vis a vis product attribute is that

Safeguard Soap has the essence of Triclosan Solution , the
no. 1 antiseptic brand in the world trusted by families
everywhere for over a century – which its competitors do not
posses. Hence, it is considered a premium brand in the anti-
bacterial segment.

Positioning by price and quality

As Safeguard is a premium brand, it is priced at a premium

to its competitors (Dettol and Lifebuoy). Being premium
means there will be no compromise in quality as the link
between price and quality exists and customer is always
willing to pay more for perceived quality which in the case of
Safeguard soap, he/she does!

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DISTRIBUTION STRATEGY

CHANNEL OF DISTRIBUTION FOR CONSUMER PRODUCT

There are 2 primary channels of distribution for Safeguard

soap:

Distributors and sub distributors:

The company sells the products to its appointed distributors

and sub distributors (+300 all over Pakistan) that are
responsible for the distribution of pre-defined geographical
areas who distribute it further to wholesalers and/or
retailers. The retail distribution is further classified into TOP
STORES (TSP’s) which include all the high profile outlets like
al-fatah, HKB, Akbari stores etc and whole sale comprises of
categories of diamond, gold and silver divided on the based
on their average purchase per month and from here the
product reaches the point of sale for the customer.

Direct Delivery (Key Accounts)

The company provides direct delivery to select large

customers like institutional buyers of key accounts which sell
directly to the consumer (in case of USC and CSD) or to
small retailers / end-consumer (in case of MAKRO / METRO).

INTENSITY OF DISTRIBUTION

P&G has an intensive distribution strategy of the product

through its distributors that cover every geographical area
and who resell onwards to wholesalers and retailers. There is
also direct delivery service to key accounts (USC, CSD, and
MAKRO &METRO). Every available channel is utilized for
maximum distribution and coverage to all the hypermarkets,
supermarkets, general stores, kiryana stores and medical
stores. The company also has in place a RDF (rural
development force) which is covering the rural areas and
exploring new markets for potential market penetration.

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These distributors are given clear instructions regarding the
selection of the retailer and to make sure that the retailer;

 knows about the significant characteristics of the

product.

 Places the product along with its major competitors like

Lifebuoy (Unilever) and Dettol (reckittbenckiser) .

 displays the soaps distinctly.

They give off and on offers as trade promotion incentives to

their distributors. The distributors contribute to the
promotion of Safeguard by word of mouth.

INSTORE PLACEMENT STRATEGY

Safeguard soap has also planned an in-store placement

strategy to promote and market their product so to have
maximum visibility to the consumer; they have assigned
dedicated shelves to the product and are also promoting
their product in metro and makro aswell. Their placement
strategy is mainly focused on

Ø Place Safeguard Soap distinctively

Ø Equal or more facing than its Competitors

Ø Place between Lux & other Beauty soaps where Possible.

Ø Build brand block wherever possible.

Various placement strategies are shown below.

Displays in Top Store Program (HKB, AL-FATEH, AKBARI etc) /

Top 1000 stores through dedicated shelves so to have
maximum visibility.

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DEDICATED SHELVES AT AKBARI SUPER STORE DEDICATED
SHELVES AT AL-FATEH STORES.

Display at makro and metro stores to provide maximum

availability and visibility to consumer.

METRO STORE, THOKAR NIAZ BAIG MAKRO STORE, RAVI

ROAD LAHORE

As a part of the placement and promotion strategy window

branding is also very important. WINDOW BRANDIND AT AL-
FATEH STORES

PRICING STRATEGY

P&G is using Competitive Pricing approach in order to

capture its piece of cake.

COMPETITIVE PRICING DESCRIPTION

Competitive Pricing is a defensive and competitor-related

approach to pricing. It is a marketing-oriented strategy
whereby prices are set on the basis of the prices charged by
competitors

Safeguard soap is priced at retail price of Rs. 38.00 (115

gms) and Rs. 26.00 (70 gms) which is at a premium of Rs 3
and Rs. 2 to its competition (Dettol and Lifebuoy).

Discounts and allowances

P&G give a special trade offer on Safeguard Soap of 2%

during the summer season so as to push to product into

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retail and an additional discount of 4 % to wholesalers to
maximize loading in the channel and improved distribution
when demand (consumer pull) is maximum.

Geographic pricing strategy

In pricing the seller must consider the cost of shipping. There

are different geographic strategies. But P&G utilizes the
uniform delivering pricing (the same delivering price quoted
to all buyers regardless of their location) for Safeguard Soap.

ADVERTISING AND PROMOTION STRATEGY

Promotion objectives

 Build top of the line consumers' awareness.

 Creating a personality of the brand.

Besides having these general objectives, the advertising

objectives are set avoiding to the advertising strategy for
each product.

 To increase the usage.

 Health benefits.

 Antibacterial soap

 Imparts a feeling of freshness-due to fragrance.

 Effectively communicate brand promise.

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COMMUNICATION STRATEGY OF SAFEGUARD SOAP

“Position Safeguard soaps range as a preferred everyday use

solution for the whole family”

COMMUNICATION OBJECTIVES

• Announce new & improved Safeguard soap.

• Protection against a wide range of unseen germs (including

bacteria & viruses).

• Better experience (lather / perfume / feel-on-skin).

• Show all 7 variants of new Safeguard soap.

AGENCY SELECTION

Almost 135 Advertising agencies exist in market but P&G has

selected IAL Saatchi & Saatchi Advertising Company because
of their outstanding work in Pakistani market.

BUDGET

Safeguard soap is a Rs 2 billion brand annually and so the

marketing budget allocated to it approx 25 % of total Net
revenue, much resources have been allocated to Safeguard
soap marketing efforts, one top example is commander
safeguard series.

MARKETING COMMUNICATION METHODOLOGIES

ADVERTISING

Television is still the primary medium for advertising for

Safeguard soap, and print also forms a crucial part of the
communications strategy. But increasingly campaigns are
integrated across all these communication channels. All

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advertisements of Safeguard soap are a blend of hard sell
and soft sell advertising, as all the Safeguard soap
advertisements first show the ingredient it contains and then
portray the emotional benefit for the user which revolves
around the theme of a mother and children in which the
children is the one who influence the use of Safeguard soap.
Dr Shaista represents the brand ambassador of Safeguard
Soap

When it comes to advertising, SAFEGUARD prefers TV

because of their philosophy that; “HEALTH AND HYGIENE
ALWAYS COMES FIRST.” Thus TV is the best media, as you
can show how Safeguard soap keeps you hygienically clean
and protected and gives you daylong protection from body
odour. Apart from this, in Pakistan, TV is a strong medium, it
has highest reach. Thus a large part of advertising budget is
focused on TV.

Safeguard soap spends around 60 % of the TV advertising

budget on all channels with high rating points like PTV, PTV
WORLD, GEO, ARY, INDUS VISION etc.

Safeguard soap advertises highly in summer season i.e. mid

of the year, as people prefer frequent washes in such
seasons to keep hygienically clean and long lasting
protection against body odour.

While discussing Safeguard’s advertising strategies we must

keep in mind the commander safeguard series which are
very intriguing for the children.

Commander Safeguard

Commander Safeguard, the first animated superhero of

Pakistan and the mascot of P&G’s brand Safeguard.
Developed by Post Amazers, the largest animation house in
Pakistan and the first with a truly global clientele, the hit
series started a semi-revolution amongst Pakistani kids who
just could not get enough of it.

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The character is popular in Pakistan and in Mexico, where it
is known as Capitan Escudo.

Beyond selling a product, the show's mission is to promote

health and hygiene among children.

Till now, 7 episodes (excluding two Independence Day

special episodes) of 15 to 20 minutes have been aired on
many Pakistani TV channels. Its one of the most popular
local TV shows for children in Pakistan.

STORY CHARACTERS

Apart from Commander Safeguard series P&G has also done some
social welfare programs which can also be considered to be as a
part of its Promotional Campaign.

Sehat-o-Safai Program

The Sehat-o-Safai Program, supported by

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Safeguard, has educated 2.2 million school children, ages 5 to 11
and from all socioeconomic classes, in 8,000 schools, about better
hygiene practices, especially regular hand washing.

Safeguard Mother Education Program

The Safeguard Mother Education Program

conveys the basic message of health and
hygiene one-on-one to mothers. This year, the
program has educated about 600,000 mothers
across the eight largest cities in Pakistan.

P&G's Safeguard team leads Global Handwashing

Day in Pakistan
Safeguard Pakistan School Education
Program Empowering Children with Hygiene Education:

What’s new about this program?

The Safeguard School Program connects with kids in a language that they
understand. This program leverages the animated character Commander
Safeguard as the communication vehicle to make the overall hygiene message
relevant, memorable and engaging for school children. Commander Safeguard
communicates with children in a way that is novel and exciting

Background
The Safeguard School Program promotes
handwashing awareness and brings about habit
change at the grassroots level in Pakistan by
becoming an ally in empowering children with health
and hygiene education. The program has its roots in
the Karachi Soap Health Study (2002) led by the
Centers for Disease Control, HOPE and Procter &
Gamble. The study showed that regular handwashing with soap can reduce the
incidence of diarrhea by up to 50 percent.
In Pakistan, where every year more than 250,000 children die from diarrhea, this
message of handwashing becomes a message for survival.

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Partnership with Public Sector Health Organizations to make a difference Health
and hygiene programs are carried out in collaboration with the PMA, the largest
body of doctors across Pakistan, and the IDSP, which is working to create
awareness about
infectious diseases prevention in Pakistan. These credentialing partners help
Safeguard in recruiting and training doctors and preparing tutorial material
communicated in schools.

Achievements
Safeguard School Program has empowered more than 5 million school children
between the ages of 6 and 11 years with hygiene education over the last four
years. To date, this program has
covered more than 10,000 schools in 100 cities of Pakistan.

Key lessons
Using a memorable, engaging and child-friendly vehicle – Commander
Safeguard – to spread and reinforce health and hygiene messages is far more
effective with children than standard
health lessons.
Private Sector companies like Procter & Gamble bring unique consumer
understanding and marketing expertise which, if combined with public sector
health organizations, can lead to new
innovative ways to influence hand wash behavior change.

The Safeguard school program has two components:

1. Execution: The objective of the execution component is to spread and

reinforce health and hygiene messages among children across Pakistan in a
memorable and engaging manner. A typical school program day consists of
Safeguard’s team of qualified doctors
visiting schools, where they conduct hygiene tutorial sessions. In these tutorials,
children are taught about germs and how they are spread through casual contact
via a germ visualization demo. They are also taught how to wash their hands
properly through a handwashing demo. This hygiene message is reinforced
through a
Commander Safeguard animated cartoon. Each student is then given take-home
educational material so that they can continue to learn and monitor their hygiene
habits with their families.

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2. Reseeding component: The objectives of the reseeding component are to
ensure that health and hygiene learning continues long after the Safeguard team
has completed its health tutorial and to help schools institutionalize this learning
through activities like “Health Days.” A Health Day is the celebration of health
and hygiene organized and led by the schools themselves. Schools have
celebrated Health Days in various ways, among
them drama competitions, debates, singing competitions, art galleries, health
awareness walks, and community cleanliness drives – all organized around the
theme of health and hygiene..

MEDIA PLAN-RADIO

The radio ad has been derived from the TVC with air time on
all mainstream channels in Lahore and Karachi.

PRINT ADVERTISEMENT

The next priority of SAFEGUARD SOAP is Print media.

Safeguard soap has a very aggressive approach in print
advertising with the launch of the new Safeguard soap ads
appear in almost all the leading newspapers around the
country e.g. DAWN, THE NEWS, NAWAI-WAQT etc. the print
ad in given below clearing spelling out the message that
Safeguard soap is daily usage soap for the whole family with
a new formulation, which smell good, feels goods on the skin
and is available in 7 different variants.

CONSUMER PROMOTION

Safeguard soap also provides additional support by giving

away various consumer promotions to provide the consumer
with the extra value benefit.

Another consumer promotion opportunity as a part of new

product promotion and sampling effort has been carried out
at METRO stores in Lahore and Islamabad where a free soap
bar is being offered on a single purchase of the new product.

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CONCLUSION & RECOMMENDATIONS

We have carefully analyzed all the market strategies

adopted by P&G Pakistan to boost the sales of Safeguard
soap. Although it is the No 1 antibacterial soap in the
country and has captured the market share of 22% but still
we find some flaws in the product for which we are giving
the following suggestions:

• P&G, Pakistan realizes the huge potential of the rural

markets, i.e. 64% of the total population, but has not
yet developed a successful strategy to penetrate this
market. They can get success by two key strategies;
firstly, by developing a strong distribution

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 infrastructure and secondly, by adapting the
packaging and pricing to this market.

• They should set the price of their product in

accordance with their competitor’s price.

• Designing commander safeguard shaped soap to

make it more intriguing for the children.

• They should change the chemical composition of the

soap because it dissolves in water so rapidly due to
the salts present in its.

• They can add more flavors of aroma in their product.

• The Advertisements should target the entire family

instead of focusing children only.

• They should add information on the bars about its

flavor to help the people for purchase decision.

• Commander safeguard series adds value in the

product from selling point of view. 7 episodes have
been launched till date. . They can continue
launching more episodes of the series to attract the
children as they are their prime focus.

REFERENCES

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• www.pg.com/en_PK/

• www.commandersafeguard.com

• Saad Munawar Khan, Assistant Brand Manager,

Safeguard Procter & Gamble, Pakistan

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