PREPAREDFOR:

DR. AKRAM KHAN SHAHANI

PREPARED BY:

ABDUL REHMAN
2K21/BBAE/6
Table of Contents
EXECUTIVESUMMARY………………………………..………………………………………………………2

CURRENT MARKETING SITUATION ............................................................................................................... 7

CONSUMER MARKET SEGMENTATION: ..................................................................................................................... 7

TARGET MARKET ................................................................................................................................................... 7

MARKET POSITIONING .................................................................................................................................... 7

MAJOR COMPETITORS ............................................................................................................................................ 8

MARGINS.............................................................................................................................................................. 9

SALES .................................................................................................................................................................. 9

OPPORTUNITIES & THREATS ...................................................................................................................... 9

OPPORTUNITIES .................................................................................................................................................... 9

THREATS ............................................................................................................................................................ 10

OBJECTIVES & ISSUE............................................................................................................................... 10

GROWING MARKET SHARE IN EMERGING MARKETS ................................................................................................ 10

ISSUES ............................................................................................................................................................... 10

MARKETING STRATEGY OF P & G ............................................................................................................ 11

SEGMENTATION, TARGETING, POSITIONING IN THE MARKETING STRATEGY OF P & G .................................................. 11

COMPETITIVE ADVANTAGE IN THE MARKETING STRATEGY OF P & G .......................................................................... 11

BCG MATRIX IN THE MARKETING STRATEGY OF P & G ........................................................................................... 11

ACTION PLAN .......................................................................................................................................... 12

BUDGET .................................................................................................................................................. 12

MONITORING AND CONTROL .................................................................................................................... 12

EXECUTIVE
SUMMARY
Proctor & Gamble was founded in 1837 by James Gamble and William
Procter. The business was founded to produce and market soap and candles.
The business expanded quickly in the 1850s and relocated to a larger plant. P&G
had 80 employees and $1 million in sales by the year 1859.
P&G has developed into one of Pakistan’s leading manufacturers of fast-
moving consumer goods since its first shipment in August 1991. In the nation,
the Company has been a role model for investors. Over the past five years, P&G
Pakistan has provided close to seven billion rupees in sales tax, customs, and
excise fees to the Pakistani government. Pakistanis hold 99 percent of the jobs
that P&G has created in that country. P&G invested more than $100 million in
Pakistan during the past 12 years, resulting in the addition of over 1,000 new
employments. P&G purchased a soap-making factory in Hub, Balochistan, in
1994, and in 2010 it opened a cutting-edge laundry detergent plant in Port
Qasim, Karachi. Through the development of a local supplier base and the
creation of over 5,000 direct and indirect job opportunities, P&G's initiatives
have produced hundreds of millions of dollars in local value addition to date.
P&G currently markets six dynamic billion-dollar brands to Pakistani
customers in addition to high-quality brands.
On the same supermarket shelves, several P&G brands face up against
one another. Why would P&G launch multiple brands in a single category as
opposed to focusing its efforts on a single dominant brand? The fact that
different people demand various combinations of benefits from the things they
purchase is the key to the solution. As a result, every buyer group for laundry
detergent looks for a distinct set of advantages

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Top Management
P&G planned a precise, exacting plan for growth and leadership development in every
division, in every area, and at every level. In order to better the lives of consumers both now
and in the future, their diversified leadership team is defining their future with a wide
spectrum of knowledge, experience, and expertise.

Chief executive officer of P&G

Pakistan - Procter & Gamble

Adil Farhat

Chief Operating Head of Sales - P&G

Officer, Procter & Pakistan &
Gamble Co Afghanistan.

Shailesh G Jejurikar Muhammad Usman

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Be, and be recognized as, the
best consumer products and
services in the world

“We will provide branded products and

services of superior quality and value
that improve the lives of the world's
consumers, nowPanda g efor
4 |generations
15 to
come.
aa

PRODUCTS OF P&G
P&G offers 65 individual brands are organized into 10 product
categories some of them are given which are available in Pakistan.

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 Procter and Gamble (P&G) Product
P&G or Procter and Gamble is one of the leading FMCG companies in the world. P&G is a
global leader offering product offering in categories in beauty, grooming, personal care,
healthcare etc. The wide range of product portfolio in the marketing mix of P&G is as
below:
Beauty:
Skin and beauty care products of P&G are offered under this segment. The brands under
this segment are Olay, old spice, safeguard. P&G offers products such as shampoo and
hair conditioner under the brand names Pantene and Head & shoulders. P&G also targets
niche segments by offering products like Olay Age Defying.
Grooming: Product and Gamble offers shave care and appliances such as razors, pre
and post shave in its grooming segment. The products are sold under the brand name
Gillette which holds a leading market position in men grooming segment.
Health care: P&G offers oral care products under the brand Oral-B and personal health
care products such as Vicks. The products offered under oral-B are mainly toothbrushes
and toothpastes
Fabric care and Home care: P&G offers fabric care products under the brands Ariel
and Tide. The products range from detergents, additives to fabric enhancers. Procter and
Gamble also offers home care products such as air fresheners under the brand ambi pur
Baby, feminine and family care: P&G offers baby care products such as diapers and
baby wipes under the brand pampers. It also offers feminine products under the Always
which is known in India as whispers.

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 CURRENT MARKETING SITUATION
Market consists of numerous buyers and buyers differ in their wants, resources, locations,
buying attitudes and buying practices. Through the market segmentation P&G divides its
large, heterogeneous markets into smaller segments that can be reached more efficiently and
effective with products and services that match their unique needs. This section focuses on
P&G’s three important segmentation strategies.

CONSUMER MARKET SEGMENTATION:

A consumer market cannot be segmented in a single way. P&G marketers must experiment
with various segmentation criteria in order to determine the optimal method to perceive
market structure. The following are the major variables utilized by P&G in segmenting its
consumer markets:
P&G creates products based on age, such as "Crest," a type of toothpaste for kids that comes
in a variety of flavors, such as Kids Crest Cavity Protection Sparkle Fun. As a multinational
corporation, P&G operate practically globally with a diverse range of products. Despite being
a North American firm, P&G has a presence in practically every region of the world.
For example, it has manufacturing sites throughout Latin America, Asia, Australia, and
Europe for its product "Head and Shoulders."
It has fewer marketing prospects in the African region, which has a very tiny population, than
in the Asian region, which has large consumer markets. P&G splits its consumers and buyers
into several individual categories based on socioeconomic class, lifestyle, life cycle, and
personality traits. However, people in the same demographic category can have extremely
distinct psychographic makeups. The classification of persons in society, such as upper,
lower, and middle classes, is referred to as social class.

TARGET MARKET

P&G uses a varied marketing strategy to target various market segments and create unique
offers for each. Instead of focusing its resources on a single dominant brand, P&G has
introduced multiple brands in one product category, including hand soap (Ivory, Safeguard,
Zest, Olay, Old spice), shampoo (Pantene, Head and Shoulders), laundry detergent (Tide,
Cheer, Bold, Dreft), tissues and towels (Charmin, Bounty, Puffs), and more. This is due to the
fact that different consumers desire various benefits from the things they purchase.

MARKET POSITIONING

Another important Marketing segmentation Strategy of P&G to occupy a distinct Position in

the market place is market positioning. A Products Position in a place the product occupies
relative to competitors in consumer minds.
P&G markets constantly and wants to develop unique market position for their products if
products are perceived to be exactly like other markets consumers would rarely buy it. The
company markets plan positions that distinguish their products from others competitive
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brands. To occupy a desirable and distinctive place in the laundry detergent market P&G has
developed several brands instead of single brands each brand having distinctive features to
meet the different mixes of benefits of different people.

MAJOR COMPETITORS

As a whole, Procter & Gamble is undoubtedly one of the biggest consumer goods names
around. But there are a number of different companies that aim to chip away at its segments
individually. Notably, along with the big names noted below, Procter & Gamble also
competes with countless smaller companies in the international segments in which it reports
revenue.
Major competitors for P&G include Colgate-Palmolive, Church and Dwight, and
Unilever. Nearly two-thirds of P&G's revenues are generated from developed markets,
while Unilever gets the majority of its revenues from faster-growing emerging markets. Some
of following are given below:

Fabric and Home Care:

With brands like Tide, Bounce, Downy, and Febreeze, this industry represents 33% of the
company's net revenues in 2019 and is its top-selling business area. Major brands from
Colgate-Palmolive like Palmolive, Ajax, and Fleecy, Unilever's Surf and Persil, Church &
Dwight Co.'s Oxi Clean product range, and Colgate-Arm Palmolive's & Hammer line are
among Procter & Gamble's main rivals in this market.

Family Care.

In this segment, major competitors include Colgate-Palmolive—with brand names like

Tender Care—Unilever's Zwitsal, and Church and Dwight Co.'s Viviscal and Rephresh. This
segment accounted for 27% of Procter & Gamble's 2019 net sales with brands like Luvs,
Bounty, and Charmin.

Beauty:

P&G's beauty segment represented 19% of the company's net sales for the 2019 fiscal
year.6 Avon is a major competitor to Procter & Gamble and is known as one of the world's
largest direct-selling beauty, household, and personal care companies. The company uses
salespeople—often referred to as Avon Ladies—brochures, and mailouts to advertise and sell
its products.
Other names in the beauty industry that rival P&G include Colgate-Palmolive, Estee Lauder,
Revlon, and Unilever.

Healthcare:

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This segment accounted for 12% of net sales in 2019.6 You'll probably recognize popular
names like Vicks, Pepto Bismol, and Prilosec. But there are plenty of other companies that
give P&G a run for its money. Major competitors like Colgate-Palmolive, Church and
Dwight Co., Ecolab, Stepan Company, and United-Guardian.

Grooming

Gillette is the dominant market player in the grooming segment. This segment accounted
for 9% of Procter & Gamble's net sales in 2019. But Bic is one of its major competitors with a
large international presence. This segment has also seen a rise in startups—notably, in the
shaving space with names like Dollar Shave Club (now owned by Unilever). P&G purchased
subscription-based grooming company Billie—one of the first for women—in January 2020
for an undisclosed amount. Every woman’s skin and cares for it like no other.

MARGINS

Current and historical gross margin, operating margin and net profit margin for Procter &
Gamble (PG) over the last 10 years. Profit margin can be defined as the percentage of
revenue that a company retains as income after the deduction of expenses. Procter &
Gamble net profit margin as of September 30, 2022 is 18.11%.

SALES

Procter & Gamble annual/quarterly revenue history and growth rate from 2010 to 2022.
Revenue can be defined as the amount of money a company receives from its customers in
exchange for the sales of goods or services. Revenue is the top line item on an income
statement from which all costs and expenses are subtracted to arrive at net income.

OPPORTUNITIES & THREATS

These are given below

OPPORTUNITIES

The business can run online commercials and control online media to accomplish its
objectives. Incorporation of least interest in undertaking projects that are inappropriate for
the business and have a direct impact on output. For the purpose of strengthening the
company's position, the corporation has the option to buy various goods and to
acquire producers. Instead, then using middlemen, the company sells the goods it produces
directly to itself. Of the 6.7 billion consumers worldwide, more than half are customers of
Procter & Gamble. In the next two to three years, they would like to reach another billion

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people, and a large portion of that increase will occur in emerging markets, where the
majority of families and kids are born.

THREATS

The possibility of the corporation becoming privatized could have an impact on its local
expansion. The customer base for the company's products is declining globally, notably in
the US. Strong rivals of the business are growing their operations by acquiring assets and
entering the booming markets.
Consumer spending determines sales. P&G suffers whenever the economy is depressed and
people cut back on their spending. To keep a balance in their finances, they must offer
market diversification and preserve pricing competition.

OBJECTIVES & ISSUE

With a strong emphasis on its target markets and acquisitions, the company's marketing
purpose is quite sound and clear: it wants its product to be distributed throughout the
entire world. Additionally, the corporation heavily concentrates innovation since it
is the only factor that guarantees the long-term viability of any business. To give everyone a
standard way of life is P&G's overarching goal. By offering customers dependable and
manageable products, the company hopes to set the bar for living standards. To be
recognized for leading sales, innovation advancement, and amazing sales, the firm's
objective also takes into account the positive feedback from customers using the products,
stakeholders of the company, and the communities in which the company's operations are
conducted. Expanded share in the global market with 10 % increase ever year to achieve the
desires target.

GROWING MARKET SHARE IN EMERGING MARKETS

boosting sales in emerging nations over the following three years from 7% to 35%. The
Regional Marketing Director for Africa and India would be in charge of this function.
Increase e-commerce activity in emerging regions from almost nothing to 20% over the
course of three years. The departments of product development and information
technology will be in charge of this goal's outcomes. In emerging markets, the Director of
Marketing would be in charge of overseeing them.

ISSUES

The establishment of a bundling strategy between the business and its acquisitions to
increase brand recognition of the business's goods. incorporating innovation to the fullest
extent possible to meet the standards that clients demand. As the demand for P & G items is

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frequently higher than the supply, availability insurance is provided. Design of development
strategies to increase the company's stock price.

MARKETING STRATEGY OF P & G

Handling 10 product categories with more than 60 brands, Procter & Gamble popularly
known as P & G has emerged as a leading player in the developed countries contributing
65% of its net sales. It is currently operating in 6 business segments which are further
categorised as retail and corporate.

SEGMENTATION, TARGETING, POSITIONING IN THE

MARKETING STRATEGY OF P & G

Procter & Gamble uses a combination of demographic, regional, and psychographic

segmentation data, just like any other FMCG company. P & G uses a differentiation targeting
technique to make the designated product available to the specific customer. P&G uses
product- and value-based positioning to instil the appropriate set of visual cues in the
consumer's consciousness.

COMPETITIVE ADVANTAGE IN THE MARKETING STRATEGY

OF P & G
Strong product line: Procter & Gamble have a strong presence with a large number of
brands within each product categories such as Healthcare products, grooming products,
fabric care & home care, Beauty products and baby & family care products.
Market Presence: P & G as of now sells its products in more than 180 countries through it
fully owned business units or joint ventures. With such as large presence,
company’s distribution network has been successful in making its products available to
remotest areas of the regions.

BCG MATRIX IN THE MARKETING STRATEGY OF P & G

Being present in five business lines and having a big number of SKUs (stock keeping units)
helps the company stay competitively ahead of its rivals.
The BCG matrix gives the grooming, fabric & home care, and beauty products segments the
top three spots, while the health care and baby & family business segments receive a
question mark.Customer analysis in the Marketing strategy of P&G
Pop & Moms stores, pharmacies, department stores, supermarket chains, distributors,
and e-commerce businesses are among P & G's clients. P&G collaborates with their
clients to improve and enrich the client experience..
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 ACTION PLAN

The Active Data Warehouse will be able to keep track of all of their marketing initiatives and
how well they adhere to the aforementioned goals. We will first provide $1.50 discounts,
and we'll be monitoring how this affects their Weekly earnings and sales. TWBA Chiat Day
will also compile a significant amount of consumer demand depending on the
implementation of the agency's advertising and promotion campaigns in the upcoming
year..

BUDGET
According to the company's financial statement from the previous year, its revenues were a
record US$ 78.938 billion, while its operating income came to US$ 16.021 billion. With a
gross margin of 48.6% and selling, general, and administrative expenses of 28.2%, P&G's
2019 annual report showed that out of its net sales of US$ 67,684 million, which were just
1% higher than the previous year, the baby, feminine, and family care category's global
share was US$ 17,806 million. In its whole product portfolio, this segment provided 27% of
revenues and 23% of profits. The region's total net sales revenue included 7% from the
Middle East, Africa, and India Its leading brands in the diaper segment were Luvs and
Pampers (Proctor & Gamble, 2019). Additional comparative data on its sales and financial
results for 2018–19 are shown in Exhibits 1–5 in the annex.
Since its founding more than 40 years ago, Pampers has been a market leader in the global
diaper market (Imarc, 2017). Pampers is dedicated to the health and wellbeing of infants
everywhere and offers parents a wealth of resources and information on child development
to help them raise happy, healthy children. Pampers were first made available in Pakistan in
August 2000 by Procter & Gamble.
Due to the fact that this brand met the requirements of the Human Safety Reassurance
Program and the International Society of Pediatricians, it was able to offer benefits to
Pakistani customers.

MONITORING AND CONTROL

The company trends are thoroughly monitored through the company’s specified
departments such as business units and market development organizations. Market
development organizations keep watching the market segments and their trends; however,
business units specify the appropriate strategies.
In order to maintain employee motivation and keep them focused on boosting their
productivity to satisfy organizational and marketing goals, the corporation will build up
employee empowerment initiatives. They consist of training exercises, employee reward
and recognition schemes, and chances for both professional and personal growth (P&G

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Annual Report, 2017). These changes will assist in maintaining employees' concentration on
performing their specific duties as part of the implementation agenda. To encourage a
synergy around daily activities among departments, teamwork and collaboration will be
promoted as organizational culture.

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