Strategic Marketing Plan: "I Never Knew You Had Dandruff"

“I never knew you had dandruff”…….
Strategic Marketing Plan

Submitted by:
Course:
Advance Strategic Marketing
MS(Management Sciences)
Submitted to:
Sir ArifVaseer
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Mohammad Ali Jinnah University Islamabad
ACKNOWLEDGEMENT
In the name of Allah who blessed us to learn and gain knowledge. He is the beneficent
and gracious to all mankind.
We would like to extend gratitude to Management of Muhammad Ali Jinnah University
Islamabad and our supervisor Sir ARIF VASEER who afforded us the opportunity to explore our
knowledge regarding the subject Advance strategic marketing.
Words are very few to express enormous humble obligations to our affectionate Parents for their
prayers and strong determination to enabling us to accomplish this report.
We also appreciate the cordial co-operation from all our group members of the Project and Sir
ArifVaseer for providing us requisite information and knowledge for compilation of our
complete report.
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Serial No. Contents Pg #
01 Executive summery 04
02 Introduction of company 06
03 Procter & Gamble 07
04 Vision & mission statement 08
05 History & introduction of H & S 11
06 Customer and competitive analysis 13
07 Total sales & market share 15
08 SWOT analysis 18
09 Internal resource analysis 23
10 Strategies 27
11 External environmental analysis 31
12 Structural analysis 35
Porter five forces
13 Value chain analysis 38
14 References 42
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Executive Summary:
This project report is about “strategic marketing plan” of Head & shoulders.it is part of our
course “advance strategic marketing” which is compulsory to complete our course work.
The purpose of this report is to provide an opportunityto the students to observe the practical
application of marketing strategies in the business.
In this report we have given brief history of industry, company (P&G) and product (H&S).
 Customer analysis
 Competitor analysis
 Market analysis
 Environmental analysis
 Strategic development
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INDUSTRY OVERVIEW
The hair care market is one of those sectors in Pakistan, which has been making rapid impressive
progress. A number of these products are also competing successfully in the international
markets. The shampoo product manufacturing sector of hair care sector in Pakistan was newly
developing and in growth stage of their life. Most companies are offering thebest hair shampoos
for every type of hairs. The competition between companies to provide best hair shampoo is
really tough. Today, in shampoo market the situation is basically different, because of the fact
that internationally known products, are manufactured here. The ranges of products of shampoo
are very wide. The bulk of the market share of shampoos in Pakistan is held by two big
companies, P&G Pakistan and Unilever Pakistan. They control about 50 to 60 percent share of
the total market. The total consumption of shampoo in the country is around 100,000 tones per
annum, but the local manufacturers are losing market share gradually due to the easy availability
of imported shampoos. The multinationals involved in manufacturing shampoos in Pakistan are
Unilever Pakistan and Proctor & Gamble Pakistan. In addition, a local company - Kala Kola - is
also manufacturing a product named Bioamla.The shampoo‟s companies can be divided into two
major groups, those catering to the masses and those catering exclusive to taste of the elite and
upper middle classes. Competition always exists in the market. Shampoo Market in Pakistan
which is very crowded and becoming competitive day by day, as there exists many shampoo in
the market such asHead & Shoulders, Pantene pro-v,Sunsilk, Dove , and have a tuff competition
between them.
Head & Shoulder is ever best hair shampoo which helps to reduce dandruff especially Head &
Shoulder Green is proven as a great acne & dandruff removal as it contains anti bacterial
ingredients and Pyrithione Zinc.
Clean & Clear also best for dandruff and hair fall. Sunsilk is also listed in Pakistani shampoos
and providing best hair shampoos for all hair types.
Pantene is good to prevent hair loss. Although it does not stop total hair falling but its special
hair fall formula gives nourishment to reduce hair fall.
Dove is another company whose hair products are getting huge popularity recently in Pakistan
and consider as best hair shampoo. Dove is offering shampoos for all hair types. One of its types
gives the freedom of color. Fiber Actives & Protein Micro Moisturizer Serum protects hair from
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damaging and helps in reconstruction of hairs. Dove can be a best hair shampoo from hair
breakage and split ends & its moisturizer serum gives nourishment and softness to your hairs.
Hair care market can be divided into the following broad categories,
 Hair Oil
 Shampoo/ Conditioners
 Styling Product
 Herbal remedies
INTRODUCTION OF THE COMPANY

Proctor and Gamble of Pakistan is a subsidiary of Procter and Gamble USA established in1990
and started production in 1991.The P&G Company were founded in 1837 in Cincinnati, Ohio
and from the very beginning have been a leading manufacturer and marketer of the consumer
goods. Company sells more than 250 brands in more than 130 countries and its operations are in
more than 70 countries. It is therefore also rated in the top 25 of the FORTUNE 500 companies.
Procter and Gamble is actually the name of two persons William
Procter and James Gamble. Both of them wives were sisters and their father in-law asked them to
become partners. In the start Procter‟s business was candle making and Gamble‟s business was
soap making. The Partnership year 1837 was a difficult time to start the business although
Cincinnati was a bustling market place; the nation was gripped by financial panic. Hundreds of
banks were closing around the country. In the 1850s, despite rumors of an impeding civil war in
the US, they built a new plant to sustain their growing business.
Later they pioneered one of the nation‟s profit sharing programs and were among the first in
American industry to invest in the research laboratory. By 1890, the fledgling partnership
between the Procter and Gamble had grown into multi million dollar corporation .Television in
USA introduced in 1939and P&G is the only company that commercialize its product just after
five months .With the passage of time P&G acquire different other companies to enhance the
business. In 1980, as it approached its 150th anniversary, P&G was poised for a most dramatic
period of growth in its history. Company serves 106000employees allover the world. P&G is a
recognized leader in the development, manufacturing and marketing of superior fabric & home
care, baby care, feminine care,& towel, beauty care, health care, and food.
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PROCTER AND GAMBLE IN PAKISTAN:
P&G started its operations in Pakistan in 1991. First it introduces its brand of Head& Shoulder
After that it gave brand of Vicks and Olay oil.
Now company has eleven brands in Pakistan .The yearly sales consistently doubled during the
past three years. P&G Pakistan establish local manufacturing base.Although Pakistan is a
relatively small consumer goods market for in the context of the global operations, almost all the
products marketed by P&G here in Pakistan have been successful to become a house. Always
feminine protection napkins, Oil of Ole, Clairol skin care, Safeguard and Camay bar soaps.
P&G's stress on R&D has helped it develop products which enjoy inherent edge over the
competitors.
Compared to its global operations, which employ over 106,000 persons worldwide and annual
global sales of $ 82 million, P&G's Pakistan operation is relatively small and yet it has been
successful to improve the lives of consumers here in Pakistan, like elsewhere in the world. It has
served over 140 million consumers in Pakistan, which equals the entire population of the country
since its operations 21 years ago.
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VISION STATEMENT
“To be a leading consumer goods company and

toimprove the lives of world consumers by
providing valuable and innovative products”.
MISSION STATEMENT
We will provide 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.
These are the Principles and supporting behaviors,
Which flow from their Purpose and Values?
 They show respect for all individuals
 The interests of the company and the individual are inseparable.
 They are strategically focused in their work.
 Innovation is the cornerstone of their success.
 They are externally focused
 They value personal mastery
 They seek to be the best.
 Mutual interdependency is a way of life
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GOALS
 Think globally act locally
 Build major global brands through strong programs based on local understanding.
 Improve the environmental quality of its products, packaging and operations around the
world.
 Produce quality products at very competitive costs.
 Build superior relationships with all the parties who contribute to fulfilling their corporate
purpose, including their customers, suppliers, universities and government.
OBJECTIVES
 Bring together transactional activities such as accounting and order management in a
single organization to provide services to all p&g units at best in class.
 Remains on the cutting edge of the industry.
 To be a thought leader within each corporate function.
 To be the first consumer goods company in Pakistan.
 Be competitive with other high quality companies in order to help, attract, motivate and
retain the talent needed to lead and grow P&G‟s business.
 Strive to be best in all areas of strategic importance to the company.
ANALYSIS OF VALUES & PRINCIPLES

Organization‟s culture is a pattern of basic assumption invented, developed by a given group as it
learn to cope with its problem of external adoption and internal integration. Values, principles,
policies, and structure of the organization are the main miles stones to analyze the company‟s
strength.
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CORE VALUES
P&G is its people and the Core Values by which they live.
P&G PEOPLE: They attract and recruit the finest people in the world. They build their
organization from within, promoting and rewarding people without regard to any difference
unrelated to performance. They act on the conviction that the men and women of Procter &
Gamble will always be their most important asset.
LEADERSHIP: They are all leaders in their area of responsibility with a deep commitment to
deliver leadership results. They have a clear vision of where they are going. They focus their
resources to achieve leadership objectives and strategies. They develop the capability to deliver
their strategies and eliminate organizational barriers.
OWNERSHIP: They accept personal accountability to meet the business needs, improve their
systems and help others improve their effectiveness. They all act like owners, treating the
Company‟s assets, as they‟re own and behaving with the Company‟s long-term success in mind.
INTEGRITY: They always try to do the right thing. They are honest and straightforward with
each other. They operate within the letter and spirit of the law. They uphold the values and
principles of P&G in every action and decision. They are data based and intellectually honest in
advocating proposals, including recognizing risks.
PASSION FOR WINNING: They are determined to be the best at doing what matters most.
They have a healthy dissatisfaction with the status quo. They have a compelling desire to
improve and to win in the marketplace.
TRUST: They respect their P&G colleagues, customers, and consumers and treat them, as they
want to be treated. They have confidence in each other‟s capabilities and intentions. They believe
that people work best when there is a foundation of trust.
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PRINCIPLES
These are the principles and supporting behaviors, which flow from their Purpose and Core
Values.
 They show respect for all individuals.
 The interests of the Company and the individual are inseparable:
 They are strategically focused in their work:
 Innovation is the cornerstone of their success
 They are externally focused:
 They value personal mastery:
 They seek to be the best:
 Mutual interdependency is a way of life:
HISTORY AND INTRODUCTION OF HEAD & SHOULDER

Head & Shoulders is a brand of anti-dandruffshampoo produced by Procter & Gamble.The idea
for Head & Shoulders dates back to about 1950 when Procter & Gamble research determined
that consumers were not completely satisfied with the then existing anti-dandruff
shampoos. After 10 years of research, P&G scientists found an new and effective ingredient
against dandruff that that really worked—Pyrithione Zinc. In 1960, P&G tested the product and
by the spring of 1961, the shampoo was given its name, Head & Shoulders, and Procter &
Gamble started to work on the packaging, displays, advertising, and marketing programs. Head
& Shoulders was introduced to the public with the original product, which was a blue-green
cream shampoo in a white glass jar and was “clinically proven to reduce dandruff.” Over the last
50 years, Head & Shoulders has significantly evolved offering a variety of shampoos and
conditioners to meet consumers‟ hair and scalp needs.
Head & Shoulders shampoo is the most popular brand in anti-dandruff shampoos and is provided
by P&G. It is considered as the world‟s no. 1 anti dandruff shampoo. It is highly recommended
by the users and a major highlighted brand as anti dandruff niche. It comes in different categories
like:
 Classic clean shampoo & conditioner.
 Dry scalp.
 Ocean lift.
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 Smooth and silky.
 Refreshing menthol.
 Intensive treatment.
 Extra volume
 Active support.
 Clinical strength.
 Restoring shine.
There are so many other available options for both men and women especially designed
according to their needs. The formula of Head & Shoulders shampoo is especially designed to
target the customers with dandruff, dry and damaged hair in all age groups.
The Head & Shoulders shampoo intensive solutions available are formulated to treat, itching,
flaking, irritation, dryness and redness caused by dandruff with medicated formula that also
helps to protect hair against damage. It removes dandruff and prevents further flaking. Its
formula provides better scalp protection and coverage to get rid of dandruff flakes up to 100%. It
gives you soft beautiful and dandruff free hair with the use of just one product. It is no.1 anti-
dandruff shampoo that is recommended by most of the dermatologists. With its regular use you
can have healthy scalp and flake free hair. The rich formula is gentle enough for daily use even
on the colored hair. Head & Shoulders treated hair remains soft and manageable as it deeply
cleanses, moisturizes and nourishes scalp and hair both. It is available for different hair types and
textures and these work best for frizzy, damaged hair.
The benefits of using Head & Shoulders will be:
 Continuous fight against dryness
 Calms itching with zinc based actives to comfort scalp
 Reduces the flakes and prevents dandruff from coming back
 Relives irritation
 Makes hair look more beautiful and dandruff free
This product gives the best solution for the people who suffer from dandruff, irritable scalp and
itching. Making dandruff and its symptoms a history from life is easy with the use of Head &
Shoulders shampoo range and conditioners. The Head & Shoulder formulas are clinically proven
to get maximum protection right from the first wash.
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CUSTOMER AND COMPETITIVE ANALYSIS:
Target market:
The target market for the Head & Shoulder is the Higher middle class people who are brand
conscious, early adaptors and who care about the overall health of their hair.
Female: 16- 40 years
Male: 16-30years
Consumer Profiling:
Head and Shoulder in Pakistani customer are offer different kinds of s hampoo
brand according to their needs.
Major Segmentation:
Marketing is one of the most important functions in business. It is the discipline required to
understand customers' needs and the benefits they seek. Market segmentation is the identification
of portions of the market that are different from one another. Segmentation allows the firm to
better satisfy the needs of its potential customers. Once the market is broken into segments,
companies can develop advertising programs for each segment, focus advertising on one or two
segments or niches, or develop new products to appeal to one or more of the segments.
The market can be divided into segments by using four "segmentation basis": Psychographic,
behavioral, geographic, and demographic basis. The basic criteria for segmenting a market is are
customer needs. To find the needs of the customers in the market .
Geographic:
Geographic segmentation of head and shoulder is worldwide. Now head and
shoulder i s s e r v i n g m o r e t h a n 1 8 0 c o u n t r i e s i n c l u d i n g P a k i s t a n . Head and
shoulder in Pakistan mainly used in urban and sem i urban area .Head and shoulder
in Pakistan‟s g e o g r a p h i c s e g m e n t a t i o n i s t h e d e v e l o p e d c i t i e s l i k e in Lahore,
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Karachi, Islamabad, Faisalabad, Hyderabad, Multan, Peshawar, Sialkot, and Rawalpindi head
and shoulder is available on all provincial capitals of Pakistan.
Demographic:
Head and shoulder‟s general market segment is younger generation. But t h e y g o
w i d e i n t h i s t h i n g . T h e y s e g m e n t h i g h i n c o m e s a n d u p p e r class families
which can spend money on the best product quality in t h e m a r k e t .
Psychographic:
Head and shoulder‟ s p s yc h o g r a p h i c s e g m e n t a t i o n i n c l u d e s p e o p l e w i t h having
good attitude about beauty sense especially upper status regular group, potential user and non-
user.
Behavioral:
Head and shoulder‟s behavioral segment is the class where people love to spend money on
high quality product. That‟s why in Pakistan, head and shoulder is the firsts l a r g e s t
shampoo brand in Pakistan and have 65 % market share in anti dandruff
shampoo.
MAJOR EXISTING AND POTENTIAL COMPETITOR

 Sunsilk
 Lifebuoy
 Pantene
 Bioamla
 Dove
 Medicam
 Clear
 DaburVatika,
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TOTAL SALE, MARKET SHARE AND PROFIT OF HEAD & SHOULDER
Procter & Gamble, one of the world's premier consumer goods companies.Head & Shoulders
shampoo is the most popular brand in anti-dandruff shampoos and is provided by P&G. It is
considered as the world‟s no. 1 anti dandruff shampoo. It is highly recommended by the users
and a major highlighted brand as anti dandruff niche. 20% of total net sales of proctor and
gamble came from hair care porduct like head & shoulder and pentene, both are capture 50%
share of total shampoo market in pakistan. P&G's market share has been consistently increasing
in the past five years as Procter & Gamble has put an increased emphasis on establishing its
products in this markets. P&G has created products designed specifically to target developing
nations. Research & Development focuses both inside and outside the company in 2010, P&G
spent approximately $2.04 billion on Research & Development, nearly $1 billion more than its
closest competitor, Unilever. The two most important factors in P&G's innovation process are its
practice of consumer demand research and its "Connect and Develop" R&D structure. First,
when entering new markets, P&G sets up in-home visits with consumers in order to fully
understand the needs and desires consumers have for household and personal products. This
way, P&G gets directly to its customers and is able to cater to their needs. P&G also incorporates
consumers' input into the R&D process through its "Connect and Develop" initiative.
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Sales %
4%,
18%
15%
Baby Care
Fabric Care
9% Beauty
Grooming
Health Care
30%
Snacks Care
24%
Earning %
2%
16%
18%
Baby Care
Fabric Care
Beauty
14% Grooming
26%
Health Care
Snacks Care
24%
COMMODITY PRICES
A diversified consumer products manufacturer, P&G depends heavily on a wide basket of global
commodities for manufacturing its goods. Higher commodity costs subtracted 0.5% from gross
margin growth. Nearly half of the company's cost of goods is directly related to commodity
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goods. The company has increased prices due to higher costs of oil and other raw materials. P&G
instituted broad price adjustments in Q1 2010 to close widening price gaps in several businesses,
Analysts believe pricing adjustments are largely behind P&G as of Q2 2010, with an impact on
about 10% of P&G's products. As the market leader, the company does benefit from pricing
power and can moderate commodity inflation better than its competitors.
MARKET SHARE:
The good companies are offering thebest hair shampoos for every type of hairs. The competition
between companies to provide best hair shampoo is really tough. We can get shampoo in
Pakistan for every hair type
The total consumption of shampoo in the country is around 100,000 tonnes per annum, but the
local manufacturers are losing market share gradually due to the easy availability of imported
shampoos.
The market for hair care in Pakistan increased at a compound annual growth rate of 9.9%
between 2010 and 2011. The shampoo category led the hair care market in Pakistan, accounting
for a share of 51.6%. At present, two multinational companies are manufacturing four
international brands in Pakistan: Pantene, Head & Shoulder, Pert Plus and Sunsilk. Another
brand, DaburVatika, is also sold in the market. The multinationals involved in manufacturing
shampoos in Pakistan are Unilever Pakistan and Proctor & Gamble Pakistan. In addition, a local
company - Kala Kola - is also manufacturing a product named Bioamla. The market share of
Head& Shoulder in Pakistan is almost 65% in anti dandruff shampoo.
CURRENT STRATEGY:
Major international brands turned up their focus on dandruff control and hair strength in their
marketing campaigns to target the specific and most common hair problems in 2011. The
strategy was employed by major players such as Unilever Pakistan and Procter & Gamble to
retain their brands‟ visibility and remain a preferred choice for consumers. Promotional
messages had a scientific ring to them as scientific evidence such as a dermatologist‟s support or
information on the ingredients of the hair products continued to be the major theme.
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The focus of these two major international players in hair care in Pakistan continued to focus on
marketing and advertising campaigns during 2010 as these leading players strive to maintain
brand image and consumer loyalty. In a bid to retain and boost their value shares, leading
manufacturers continue to focus on building brand perception by offering added value. In order
to achieve this, many leading multinational companies are involved in establishing a strong
media presence not only through the electronic and print media but also through below-the-line
marketing, engaging in activities including free product sampling and events which target
specific consumer groups such as young urban dwellers.
COMPETITIVE LANDSCAPE AND GROWTH TRENDS

“P&G is now one of the world‟s largest beauty companies” (P&G Annual report). P&G states
that Head & Shoulder is the world‟s largest hair care brand and that it grew in double digits over
the last two-years. P&G claims that this success is due in part to their unsurpassed hair
conditioning technology. Procter & Gamble Pakistan led hair care during 2010 with a 44% value
share through its brands Head & Shoulders, Pantene Pro-V, Herbal Essences and Pert Plus.
These brands have a long-standing presence in the country as well as a high degree of visibility
in the media and widespread availability throughout Pakistan.
Hair care is expected to increase in constant value at a CAGR of 9.9% over the last few period,
with this positive but moderate performance reflecting the slow pace of recovery in the Pakistani
economy as a whole and the lingering negative effects of the devastating floods which hit
Pakistan during 2010. These floods caused a significant amount of damage to Pakistan‟s rural
areas, although the major consumers of hair care include affluent urban consumers, who were
largely unaffected by the floods. Value growth during the forecast period will depend on the high
degree of inflationary pressure impacting manufacturers and distributors, the factors which have
the greatest influence on the overall retail selling price of hair care products.
SWOT ANALYSIS OF HEAD AND SHOULDER

Strength:
 Shampoo market leader.
 Beast anti dandruff in Pakistan.
 Most admired brand in Pakistan.
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 Sale in small pack.
 Easily available in market.
 Focused on the frizzy and dry hair caused by hair color or curling hair dryer.
 Product are constantly developing such as changing packaging to modern and modify the
formula etc.
 It is well known in the market.
Weakness:
 The most expensive as compare to competitors.
 Targeting only high middle and upper class income.
Opportunity:
 Growth in the hair care market can be morethan 9.9 %.
 It can capture the more market share in the rural areas.
Threat:
 High shampoo market competitive.
 Consumer is not loyal, influence of switch brand easily.
 High price as compare to competitor.
MARKET/SUBMARKET ANALYSIS:
FORCES THAT REDUCING PROFITABILITY IN MARKET
Political and legal forces:

Rapid changes in the political scenario of the country along with the uncertain policies of the
Government have made the whole business community as uncertain. Also there is terrorism
prevailing in the important cities of the country like Karachi and Afghan War, which are
affecting the business activities. Policies about taxes are changing continuously due to changing
government.
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Economic forces:
 Increasing inflation in the country, persistently reducing the purchasing power of the
people and dropping people from high price shampoo to low price shampoo and
providing more fuel for expansion of local Producers.
 Increased import duties on the finished goods and raw material have increased the price
of the product, along with this, increasing inflation in the country have made it difficult
for shampoo industry to transfer the whole increased cost at the consumer, thus forcing
the industry to operate at a very low margin.
 Sanctions imposed by the developed nations on Pakistan due to nuclear experimentation
create the uncertainty in business activities.
Social forces:
The greater the tendency towards urbanization in Pakistan, the living standard which is forcing
the people to use standardized product and people are diverting from the beauty shampoo to
specially feature shampoo.
Technological changes:
There are a number of major and rapid breakthrough in the technology of shampoo and their
manufacturing process, but innovations is required so that the product does not become obsolete.
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COMPETITIVE ADVANTAGE
Competitors are an essential part of any product‟s scheme of operations. The strategies adopted
by competitors decide the operation plans for the product. Under the marketing concept,
companies gain competitive advantage by designing offers that satisfy target-consumer needs
better than competitors offers. They might deliver more customer value by offering consumers
lower prices than competitors for similar products and services, or by providing more benefits
that justify higher prices. Marketing strategies must consider the strategies of competitors as well
as the needs of target consumers. Some of the main points that constitute the competitive
advantage of P&G in general and Head & Shoulder in specific are:
P&G is one of the largest FMCG companies in the Pakistan and world. Its main competition is
with Unilever which has almost equal presence in the Pakistan and world. Procter and Gambles
sales $ 82 billion in worldwide. Head & Shoulder is known worldwide. It was the best selling
hair care line in 1991. Head & Shoulder is known to create healthy, shiny hair. P&G has one of
the largest advertising expenditures in the whole world. Following is the Proctor& Gamble‟s
advertising expenditures: In 2011 P&G‟s advertising expense reached $2 billion. P&G is known
for its innovation. It has a large diverse portfolio of products.
Head &Shoulder„s customer base is also its very significant competitive advantage. It targets
women and girls and they constitute its loyal customer base. Head & Shoulder has a good Brand
Equity and there are always new kinds of hair types that it markets to. P&G intends to build
brand equity by developing distinctive products that stand for something and that have a definite
position in the market. They want to communicate the products benefits as compared to the
competitor, with a brand that is so amazing, appealing, and reliable that the consumer begins to
trust the bran
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INTERNAL RESOURCES ANALYSIS
MARKETING RESOURCES
Marketing resources are very critical for every organization because it leads to the performance
of a company. An organization with worthwhile marketing resources can fetch high sales and
profit. Marketing resources include following ingredient: -
 Breadth and depth of product line
 Market share
 Marketing information system
 Distribution channel
 Market coverage
 Company image
P&G is doing concentrating efforts on the best quality growth opportunity in the whole shampoo
market.
BREATH AND DEPTH OF PRODUCT LINE
P&G has launched one shampoo in the market of Pakistan in 1991, named head & shoulder.
Therefore, they have different product depths are available providing by P&G as compared to
their competitors in case of shampoo. In the depth they have:-
Head & Shoulders now comes in a new pack-design and logo in six variants:
 Head & Shoulders Smooth & Silky

 Head & Shoulders Refreshing Menthol
 Head & Shoulders Clean and Balanced
 Head & Shoulders Silky Black
 Head & Shoulders Naturally Clean
 Head & Shoulders Nourishing Aloe Vera
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HUMAN RESOURCES
P&G Pakistan is determined to create a way of working that release the energy and talents of
everyone in the company and strips away everything that stifles creativity. It aims to be a
company in which very employee knows what is expected of them, has the freedom to take
initiatives, is accountable for the results and is properly rewarded for success.
At present more than 300 employees are employed in P&G Pakistan, and in order to enable their
employees to achieve what is expected of them, the company has a well established program for
the training and a system for the measurement of their performance.
Human Resources ensure that P&G has the employees, organizational design and work culture to
deliver business productivity and to continually improve consumer, employee and shareholder
value.
RESEARCH AND DEVELOPMENT
“It is our policy to continue pushing the envelope when it comes to developing, validating, and
using new alternative test methods so we can reduce our need to do animal testing, and our
ultimate goal is to eliminate it.”
SHARE HOLDERS
Shareholders are important stakeholders at P&G. P&G has 1.3 billion shares of stocks
outstanding. Large institutions and mutual funds, retirement programs, individual investors and
employees throughout the world own these shares. Individuals hold approximately 50 percent of
their shares, with nearly 20 percent held by employees and retirees. They work to increase the
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value of P&G stock for all their shareholders in a variety of ways, including growing the
company‟s sales and earnings each year. They measure for tracking their success for
shareholders is total shareholder Return (TSR). TSR measures how much value their investors
receive as a result of owning P&G stock. They track TSR against 29 companies in similar
industries, such as consumer, health care and beauty products. P&G tracks performance to
compensate key managers based on how well they increase shareholder value. Their Shareholder
Relations team is available every day to answer questions, listen to shareholder feedback and
provide perspective on Company decisions.
MARKETING INFORMATION SYSTEM

Success of marketing plan depends upon the marketing information system of the organization.
In this way MIS servers as a critical resource of any organization. P&G has developed a
marketing information system. with the help of this system, P&G gets market information, which
leads to better marketing planning. Moreover, sales force of P&G is served as source of
information about the market in different segments because its sales force has direct contact with
the customers.
DISTRIBUTION CHANNEL:
Distribution channel of a company is a very important for its survival, and especially in shampoo
industry, they have to make it excellent, because if they will not make it easily available to the
consumer, all is useless. So providing needs, satisfying goods at the right place is very important.
P&G itself has no distribution channel for head and shoulder rather they are distributing the head
and shoulder through International Brands Limited (IBL), which is a renowned distribution
company in Pakistan and they have their distribution network in all major cities of the country.
COMPANY IMAGE :
P&G is a multinational company and is using its corporate image as a marketing resource. So
this is beneficial for the safeguard in each segment. At present, P&G is famous for its quality
product, but it has implemented different strategies to improve its image in future. Because just
providing quality products are not enough. They have to show concern for their
24 | P a g e
 Society
 Customers
 Employees
P&G has adopted all its ways to achieve this aim, which will lead to a better corporate image of
the company in future. If they got a chance to see the advertisement of P&G‟s head and shoulder
customer satisfaction and environmental safety are emphasized.
As explained above that company image can be used as marketing resource. Due to the image,
people are attracted to P&G. That‟s why market helps the sales force to persuade the customers.
In this way, P&G is using corporate image as a marketing resource.
MARKET COVERAGE
As far as head and shoulder is concerned, P&G is emphasizing only on urban areas, while rural
areas are neglected, because their target market is middle and upper class and this class is mostly
located in urban areas. Therefore, due to their product features, their market coverage is better.
RESEARCH AND DEVELOPMENT

With respect to R&D, P&G Pakistan has a strong back from the P&G worldwide network of
research and development P&G‟s innovations is a major competitive strength and is driven by
the market place. The company sets out to deliver the customers the right science with the right
processes at the right place. It must be seen to provide a quality of service, which is the best in
the market. P&G is spending millions of dollars in R&D worldwide, while they have R&D cells
in the countries in which the operations of business are going on. These R&D cells are
responsible to identify the technological breakthrough, taking place in these countries. They are
mostly customer oriented for which they test the products in the market and then introduce it to
the whole target market.
FINANCIAL RESOURCES :
The head and shoulder business accounts contribute nearly 15% of the company‟s profit. The
impressive growth recorded by the shampoo industry enabled it to make this contribution. This is
25 | P a g e
due to increase in sales on 20 % of head and shoulder in 2011. Along with this internal resource
generation, corporate name is at its back as sound credit worthiness for any borrowed fund.
PROMOTION AND ADVERTISEMENT
PROMOTIONAL STRATEGY
Promotion tools
 Web marketing
 Networking
 Contests
 Advertising sponsorship
 Social awareness
The promotional strategy of head and shoulder is highly useful and effective. Using magazine
print advertisements and commercials allows for the opportunity to segment their advertisements
by specific magazines, specific TV shows, and specific time slots. These strategies provide
Pantene with the opportunity to wisely advertise to their target audience.
Without promotion the brand would be relatively unknown and its popularity would not be near
what has been established with promotion. Many times when a consumer sees a product in the
store that they have not heard of they will browse over it and choose a product they know.
Consumer and market knowledge are prevalent because head and shoulder and P&G are built
around what consumers want.
Public Relations is a large aspect of the P&G/head and shoulder promotional mix. large factor
for head and shoulder, they use marketing and business techniques to try and improve
consumer‟s lives. They are always finding new and better ways to reach their consumers and
between their PR campaigns and advertising they are constantly appealing to consumers and
causing them to trust head and shoulder.
The purpose in using aspects of the promotional mix is to build brand equity, brand awareness,
and frequently put our advertisements and name into the public to be seen. The frequency in
which the ads are seen is as important as the message we are providing.
Endorsers: global celebs like Pakistan cricket player like shahid khan afridi. In indiakarina
26 | P a g e
Each collection includes a shampoo, conditioner, treatment and styling products that helps the
consumer achieve their unique look. Not only did they change their products to match the
consumer‟s desired style, they claim to have improved their technologies. Hair care companies
are building on the desire for women to maintain a young, natural, and fresh look. Marketers are
also beginning to key onto teenage girls more. Girls ages 15-19 increased sales 12% from 2008-
2011. Head and Shoulder‟s promotional tactics are ideal and we feel they are approaching the
target audience well.
STRATEGIES
PRICING STRATEGIES
P&G always emphasizes head and shoulder as quality product and they try to differentiate it as
compared to competitors. But they have set the price of
head and shoulder which is equal to the major competitor product Sunsilk and Dove . Therefore,
we can say they are somewhat following competitive price strategy.
DISTRIBUTION STRATEGIES
As described earlier that P&G is distributing head and shoulder through International Brands
Ltd., distribution network which is a renowned distribution company. In each IBL office, there is
an Area Sales manager of P&G who is responsible to watch the activities of IBL regarding
distribution of Safeguard and make direct contact with customers to obtain the complaints.
PRODUCT STRATEGIES
Head and Shoulder is quality product and P&G do not compromise on quality. Therefore, in
product strategy, they are following differentiation strategy. There are the marketing strategies of
head and shoulder but there are a group of strategies, which determine the strategies of company
regarding a product.
 Market penetration
 Market development
 Product development
27 | P a g e
MARKET PENETRATION
Market penetration means to exploit the available consumer efficiently to achieve high market
share. This is probably done for a product, which is at the growth stage. Market penetration can
be done through heavy advertisement and by providing products of different sizes and types for
different consumers. For this purpose, highly extensive distribution channel should be used.
MARKET DEVELOPMENT
In market development strategy, organization should find the new uses of product, new segments
and entering into new geographic areas. Still head and shoulder is being used for shining and
germs protection purpose, focusing on urban areas and more emphasis on middle and upper
class.
PRODUCT DEVELOPMENT
For product development, development of internal resources is emphasized. Therefore, P&G
should acquire one more product or manufacturing plant for the production of head and shoulder
to capture the wide market. For head and shoulder P&G is intensifying the efforts to increase the
market share in growing industry because shampoo industry is growing with an annual rate of
9.9%. Therefore, we can say they are following consolidation strategy for head and shoulder,
because they are intensifying their efforts on advertisement and promotional activities.
STRATEGIC PROBLEM
P & G is facing the problems in the following areas:
 There is gradual increase in the substitution of Head and Shoulder due to its higher price.
There is also great competition in the local Producers due to low price shampoo and also
great competition in the organized sector due to equal size of the competitive
organizations.
 As far as Head and Shoulder is concerned, P&G is emphasizing only on urban areas,
while rural areas are neglected.
 P & G is Unwilling to serve low-income market. Other competitors in the shampoo
industry are serving in each class with respect to different prices & their target market is
28 | P a g e
upper class, middle class and lower class, each class with respect to different prices. Head
and Shoulder‟s Price is especially very high towards lower income groups.
 P&G itself has no distribution channel for Head and Shoulder rather they are distributing
the Head and Shoulder through International Brands Limited (IBL). This is also the
reason for the high price.
POINT OF DIFFERENT
We compare our product with other brands which has same product that is shampoo so it find out
some point that are as under:
Flavor:
Some people like many flavors in shampoo for example in Sunsilk and Pantene they have at least
five flavor but we are six flavors in anti dandruff head and shoulder
Extra feature:
Other brand of shampoo has some extra feature for example dandruff contrl and also help to long
hair, but head and shoulder shampoo is only for dandruff control so our femail customer that are
much conscious for their long hair switch to other.
Price:
Price is the major factor that can help to retain and attract out customer, but the head and
shoulder price is much higher to other.
Internal service quality:

In the internal environment of the company they can hire the more expert people and also trained
the existing employees to make them more productive.
Market demand:
Market demand of head and shoulder in the market is very high if the price of the head and
shoulder is increase very less then it is effect to much on its demand but if its price largly
increase then it effect the demand.
29 | P a g e
Product design:
The design of the bottle head and shoulder is attractive for its customer.
Satisfy and loyal customer:

Due to the high quality of the product the Procter & Gamble is committed to providing products
and services of superior quality and value that improve the lives of the world's consumers. The
customer of P&G are fully satisfied with the product and they are also loyal to the company
Distribution:
The distribution channel of head and shoulder follows the conventional o route of FMCG
marketing, factor to distribution to whole seller to retailer to consumer. Head and shoulder has
the strong distribution channel, it can be available every where and customer can not find any
difficulty to buying this product.
BRANDS IN PAKISTAN
 Head & Shoulder

 Pert Plus
 Vicks
 Pentene
 Rejoice
 Camay
 Safeguard
 Pampers
 Always
 Ariel
EXTERNAL ENVIRONMENTAL ANALYSIS
30 | P a g e
Nature of the environment
P&G head & shoulder is operating in a complex and stable environment, complex because there
is a number of factors in its environment, about which less information, stable, because the
changes in these factors is predictable factors, which makes its environment complex are:
Retailers
A group having strong influence over the opinion of the consumers regarding which shampoo
should be purchased. This group is becoming more and more concern to their own
incentives/margin.
Local producers
Small head & shoulder shampoo manufacturing units, having no or very low overhead charges,
under fix tax system or hidden units evading tax and growing like mushroom, involve in the low
price shampoo war, exploiting consumers through retailers.
Reference group
People having social influence on their neighbors also affect on the sale of shampoo.
Technology:
Moderate changes in the technology of shampoo manufacturing decrease the ……………...
Urbanization:
Increase in rate of urbanization especially in Pakistan has made the environment more complex
of shampoo industry.
31 | P a g e
SWOT ANALYSIS OF P&G
STRENGTHS
 Heavy and impressive promotional plan for head and shoulder.
 Product innovation
 Strong social & corporate image of P&G.
 Strong financial position of company.
 Strong customer loyalty.
 Strong brand image.
 More concern towards total quality management.
 Highly health caring product.
 Diversified business structure.
 Direct contact with customers.
 P&G‟s good relations with the supplier.
 Strong emphasis on environmental prosperity.
 Worldwide research and technology, engineering and manufacturing.
 Well-established and renowned distributors.
 Highly enthusiastic sales team of the company.
WEAKNESSES
 Unwilling to serve low-income market. Price is especially very high towards lower
income groups.
 Increasing promotional spending to keep healthy sales.
 Customer concentration
 Reductions in cash flow levels
 Mature Markets
 High customer concentrations
32 | P a g e
OPPORTUNITIES
 The shampoo market is growing at an annual rate of 9.9%. The main reasons for this
growth are: Rapid growth in population, High urbanization, Increase in awareness
among people about new advancements. Due to this growing market, there are lots of
opportunities for P&G to exploit this growing market by introducing new shampoo
brand.
 Due to rising awareness among people, switching trend toward health hair care shampoos
is high. Therefore, it is a good opportunity to capture this segment through efficient
marketing practices.
 Selling direct to the customer.
 Better product experience.
 Good growth potential in the Health andBeauty segment
 Growth potential of domestic retailers
THREATS
 Increasing market share of local Producers. The local Producers are playing an important role
in shampoo industry, because they are providing low price shampoos and try to penetrate in
their local market by replacing the branded products.
 Increasing cost of raw material
 Substitute brand that have a cheaper price.
 Increasing inflation in the country is also a major threat of P&G because it is reducing the
purchasing power of consumers.
 High levels of competition
 Raw material and energy price increases
MAJOR STRATEGIES:
Business-level Strategy
33 | P a g e
P&G, with the largest product portfolio in the consumer products industry, faces significant
challenges maintaining cost efficiency and scale economies while creating innovation and
differentiation.
The company is divided into four pillars:
1- Global Business Units
2- Market Development Organizations
3- Global Business Services
4- Corporate Functions,
Each working separately and together to bring competitive advantage to P&G. As competition
from other major global and small local companies are vying for market share, a sound business
strategy, with a focus on flexibility and responsiveness, is required to maintain and grow their
leadership position. P&G's business strategy focuses on large-scale operations, strong product
branding, and product innovation to develop competitive advantage. P&G is the global leader in
its four core categories, Baby Care, Feminine Care (35%), Fabric Care (approximately 30%), and
Hair Care (greater than 20%). To achieve sustainability and continued growth, P&G's strategy is
to continue to innovate and sell products that appeal to retail trade customers and consumers,
providing pricing and product that adds value for the customer, while improving efficiencies in
sales and operations with their ongoing restructuring and technology enhancements, and quickly
responding to competitive advancements. Their comprehensive research network and $2B of
research spending annually support their innovative focus. And are technology innovators for
improving efficiencies and reducing costs, such as with bar coding and wireless technologies.
With their market knowledge and focus on efficiencies. They excel at "demand chain planning,"
identifying their "target market's requirements and designing the supply chaining backward
from that point.
Global Strategy
P&G has made substantial investments globally, and used acquisitions, joint ventures, and
alliances to expand their market understanding and reach. Key to expansion are three
competencies P&G has developed:
1- understanding of the foreign marketplace
34 | P a g e
2- ability to manage people in foreign markets
3- skills at managing foreign subsidiaries.
Their global strategy includes innovation, increasing market share on base business while
focusing on each business as well as on each industry, and investing in the developing
marketplace. P&G has gained substantial market knowledge, has innovative databases including
over 100 million consumers across 30 countries, utilizes a blend of local and expatriate
managers, and provides training, global resource centers, and partnerships and alliances for
managing foreign subsidiaries, all successful activities that promote local acceptance and a
climate enabling knowledge transfer. Overall, P&G has a well-developed knowledge base and
global mindset, and with innovation a key component of their global strategy, they have created
the ability to implement distribution systems that can move innovations across borders.
Corporate Strategy
P&G markets over 300 products in 160 different countries. P&G groups its business into two
categories,
1- foundation business
2- higher growth business.
P&G is aware of their core products and business foundation, but also understands that the
development of new products through innovation, research and development is the key to
maintaining its competitive advantage. P&G should continue its current successful strategy.
STRUCTURAL ANALYSIS
Porter model.
Structural analysis helps to analyze the competitive process as well as the sources of competitive
pressure. In the structure analysis, certain questions like what are the strengths of these pressures,
what type of competition is prevailing and what future competitive conditions will be included.
Generally, there are five forces which affect the competitive position in an industry and these
forces are as follows:-
1) Competitive rivalry
2) Buyer‟s power
35 | P a g e
3) Supplier‟s power
4) Threat of new entrants
5) Substitute products
COMPETITIVE RIVALRY
 Competition is concerned with the degree of rivalry within the industry. Danger of rivalry
is greater when the competitors are of equal size. In the shampoo industry, the
competitors are;
 Sunsilk
 Lifebuoy
 Pantene
 Bioamla
 Dove
 Medicam
 Clear
 DaburVatika,
So competition is very tight. Rivalry is greater between these three firms due to their equal sizes.
Shampoo industry shows growth rate, which is 9.9% per annum. It seems that it offered very
lucrative business opportunities but these opportunities also carry threats with them. Because to
capture the high market share, an organized distribution channel is required for this industry
which carry heavy cost.
THREAT OF NEW ENTRANTS

P&G possess a significant amount of market share in Pakistan. It is generally said that the
industry where the threat of new entrants is low, the industry is considered to be secure and
attractive. In the case of shampoo industry, the barriers to new entrants are large initial capital
requirements and product differentiation as well.
Also the available shampoos have a strong image among consumers and it is very difficult for
new comers to break that image. Due to these reasons, the threat of new entrants is low but not
zero. Because, there are chances that ICI may enter into the shampoo industry. Anyhow, it is
36 | P a g e
very difficult for new comers to enter into the shamp00 industry. To compete P&G, a competitor
must have a large sums of capital for heavy marketing and R&D.
THREAT OF SUBSTITUTES
Substitute means a product which can perform the same functions as the original product can
perform. Substitute of the head and shoulder anti dandruff is Dove, and Clear and clean
shampoo. Since the quality of these substitutes is not comparable. So there is low threat of
substitute to the shampoo. But due to rise in inflation in the country,threat of the substitute of
high price shampoo like head and shoulder is gradually increasing.
BUYER’S POWER
When there are a few number of buyers those purchase the large portion of a company‟s sale,
then in this case, they have maximum power. But in the case of shampoo industry, the buyers are
the distributors, to whom bulk amount of products is sold and this sale is maximally on the cash
basis. So the buyers have no handsome power to interrupt or interfere in the Shampoo industry.
SUPPLIER’S
Supplier‟s power is less because they are having support from their parent company fraw
material and technological assistance. Supplier of P&G need key customer for profitability
revenue generation and will have little bargaining power. Rising interest rate and decaling
availability of credit ultimately should not affect P&G‟s relationship with is supplier.
37 | P a g e
Value Chain Analysis, P&G
Value Chain Analysis describes the activities that take place in a business and relates them to an
analysis of the competitive strength of the business. Value Chain Analysis is one way of
identifying which activities are best undertaken by a business and which are best outsourced. It
suggests that the activities of a business could be
1. primary activities
2. supporting activities.
1. Primary Activities- Those that are directly concerned with creating and delivering a product
(e.g.
38 | P a g e
Component assembly).
Sourcing and Procurement (sourcing, supply planning, materials procurement)
Relating this model to P&G‟, it could be implied that H&S raw materials are sourced
and or procured from all over the world, wherever it would be cost-effective. It is thus no
surprise
that for a number of years it had focused on ways to improve supply chain efficiency and costs.
It now
has a powerful industrial network linking electronically to major suppliers and customers. This is
to the
extent that it changed companies when efforts to reduce inventory levels only produced marginal
improvements.
Operations (assembly, branch operations)
P&G‟s operations had four business units: health and beauty, babies, snacks and beverages, and
fabric
and home care. It offered more than 300 products including major brands like Tide. It has been
aggressively using product lifecycle management software since 2000 for new product
development.
The company uses MatrixOne software for mechanising and automating the knowledge
components,
and flow components, within the bringing-a-product-to market phases.
Outbound Logistics (warehousing, shipping, fulfilment)
P&G‟s largest customer was Wal-Mart that had a reputation for requiring suppliers to coordinate
their
supply chain processes with its powerful just-in-time continuous inventory replenishment
system. A
database is used to hold information about work processes vital for creating, reviewing,
approving, and distributing products. This enabled the company to lower its costs on item such
as pigments and chemicals, and to reduce development time.
39 | P a g e
Sales and Customer Service (sales, order processing, customer supportaccording to the Wal-
Mart was P&G‟s largest customer, accounting for nearly 20 percent of its sales and could be
responsible for one-third of P&G global sales by 2010. Wal-Mart capitalised on this position to
force P&G to sell wares to them at the cheapest prices possible.
2. Support Activities
It is rare for a business to undertake all primary and support activities.
Financial Management (financing, planning, investor relations)
This is because it was able to perform “what-if”
Analyses on inventory levels, in-store stock outs, and transportation costs to find out alternate
rules to Existing ones being analyzed, such as ordering and shipping frequencies or product
allocation in distribution centers. It was discovered that trucks should be often dispatched before
fully loaded. Although transportation costs would be higher using partially loaded trucks because
of both driver
Time and fuel to deliver fewer goods, the simulation showed that retail store stockouts would
occur Less often, thus reducing the amount of lost sales which would make up for the higher
distribution costs.
Research and Development (product design, testing, process design, material research)
P&G came to be seen as unimaginative, even stodgy. It seemed weak in developing new
products, and had developed just one product in 15 years. This gave the chance for traditional
competitors and makers of generic versions of their branded products to grab market share. It
established an Intranet called Innovation Net, which was used to bring people together who are
working on similar problems
in order to generate synergy for new product ideas and product development. Using the same
Intranet, P&G allows outsiders like research scientists and entrepreneurs to search for new,
innovative
products worldwide.
40 | P a g e
Human Resource Management (recruiting, training, compensation)
P&G began to use information systems to support how learning occurred within the company.
It created an intranet through which new employees could network with experts, learn from projects
and receive answers to pertinent questions. This system encouraged experts to share their knowledge
with ‘newbies’ through an implicit compensation or reward system. Further, human resource was
provided with tools they needed to enhance their trade. For example, marketing personnel were given
Marketing and Advertising
The company employed the use of knowledge systems to manage marketing. It also uses a very small
information. Using information technology in marketing had been ignored in the past because they saw
it as complex. P&G’s various brands, product lines, customers, and even different marketing groups each
used their own independent software for some functions, including email and marketing campaign
management.
41 | P a g e
References:
www.head&shoulders.com
www.answer.com
www.p&g.com
www.google.com
42 | P a g e

Strategic Marketing Plan: "I Never Knew You Had Dandruff"

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Strategic Marketing Plan: "I Never Knew You Had Dandruff"

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“I never knew you had dandruff”…….

Strategic Marketing Plan

INTRODUCTION OF THE COMPANY

“To be a leading consumer goods company and

ANALYSIS OF VALUES & PRINCIPLES

HISTORY AND INTRODUCTION OF HEAD & SHOULDER

MAJOR EXISTING AND POTENTIAL COMPETITOR

COMPETITIVE LANDSCAPE AND GROWTH TRENDS

SWOT ANALYSIS OF HEAD AND SHOULDER

FORCES THAT REDUCING PROFITABILITY IN MARKET

Political and legal forces:

 Head & Shoulders Smooth & Silky

MARKETING INFORMATION SYSTEM

RESEARCH AND DEVELOPMENT

PROMOTION AND ADVERTISEMENT

Internal service quality:

Satisfy and loyal customer:

 Head & Shoulder

EXTERNAL ENVIRONMENTAL ANALYSIS

THREAT OF NEW ENTRANTS

Sourcing and Procurement (sourcing, supply planning, materials procurement)

Operations (assembly, branch operations)

and flow components, within the bringing-a-product-to market phases.

Outbound Logistics (warehousing, shipping, fulfilment)

It is rare for a business to undertake all primary and support activities.

Financial Management (financing, planning, investor relations)

This is because it was able to perform “what-if”

Marketing and Advertising

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