Procter and Gamble



Syed Masood Ul Hassan
FA07-MB-0183

INTRODUCTION OF THE COMPANY  

Procter 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. 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 IN PAKISTAN 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. P&G Pakistan establish local manufacturing base.  P&G .The yearly sales consistently doubled during the past three years.  Now company has eleven brands in Pakistan .

BRANDS IN PAKISTAN y y y y y y y Head & Shoulder Vicks Pentene Safeguard Pampers Always Ariel .

.VISION of P&G  ³To be a leading consumer goods company and to improve 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. .

Improve the environmental quality of its products.  .GOALS  Think  globally act locally Build major global brands through strong programs based on local understanding. packaging and operations around the world.

SWOT ANALYSIS  STRENGTHS  WEAKNESSES  OPPORTUNITIES  THREATS .

STRENGTHS  Strong social & corporate image of P&G.  Strong financial position of company  More concern towards total quality management  Direct contact with customers  Well-established and renowned distributors .

they cannot reduce production cost of the safeguard. But now expansion is being made in hub plant to increase production of safeguard. One is 125 gm and other is 75 gm. only two sizes are available.WEAKNESSES    Safeguard is available in limited pack sizes. Due to limited manufacturing facility. . Unwilling to serve low-income market. Price is especially very high towards lower income groups.

Therefore.OPPORTUNITIES     Rapid growth in population High urbanization Increase in awareness among people about new advancements P&G has a good corporate image among consumers. they can get maximum share from the soap industry by introducing multiple brands of soaps because they have already different soaps in their international health and beauty care product line .

THREATS   Increasing market share of local Producers. because they are providing low price soaps and try to penetrate in their local market by replacing the branded products Increasing inflation in the country is also a major threat of P&G because it is reducing the purchasing power of consumers . The local Producers are playing an important role in soap industry.

Boston Consulting Group (BCG) High Relative Market Share  Head & Shoulder Ariel Relative Market Growth  Star Low .

Boston Consulting Group (BCG) High Relative Market Share  Safeguard Vicks Relative Market Growth  Question Mark Low .

Boston Consulting Group (BCG) High  Relative Market Share Pentene Pampers Always Relative Market Growth   Cash Cow Low .

Boston Consulting Group (BCG) Relative Market Share High  Vicks Olay oil Relative Market Growth Dog Low  .

50 12.IFE MATRIX BUSINESS STRENGTHS Factors Company¶s relative market share Weight Rating Score 25 15 30 15 15 100 0.60 9 0. .5 70 Price competitiveness Financial strength Knowledge of customers and market Technological Advancement Total««.90 27 0.5 0.60 9 0.70 10.

70 0.60 0. .5 9 27 9 10 70 Strong competition Profitability Capital requirement Barriers to entry and exit Total««.90 0.50 12.IFE MATRIX BUSINESS WEAKNESSES Factors Market size and growth rate Weight Rating Score 30 20 10 15 25 100 1 0.

50 12. Total««.EFE MATRIX OPPORTUNITIES Factors Rapid growth in population High urbanization Increase awareness among people about new advancements P&G has a good corporate image among consumers.5 20 25 100 0.5 75 . Weight Rating Score 30 25 20 1 0.50 1 30 12.

EFE MATRIX THREATS Factors Increasing market share of local Producers Increasing inflation in the country Total««. Weight Rating Score 50 50 100 1 0.50 50 25 75 .

.SPACE MATRIX  Strategic Position and Action Evaluation Matrix is useful for determining the current strategic position of the organization with reference to its environment and helps deciding the strategy profiles for the company.

.14=-2 Factors Market share Product quality Customer loyalty Control over distributors and suppliers Promotional activities Product price Technical know-how TOTAL «..COMPETITIVE ADVANTAGE SPACE MATRIX Rating -4 -1 -3 -2 -1 -3 -1 -15 -2. Average «..

Average ««« Rating -3 -2 -3 -1 -5 -3 -17 -2.SPACE MATRIX ENVIRONMENTAL STABILITY Factors Technological changes Rate of inflation Barriers to entry into market Competitive pressure Demand variability Price elasticity of demand Total «««.83=-3 .

Of Shareholders EPS Growth Rate Technological Know How Total«« Average«« Rating +5 +4 +3 +3 +5 +5 +25 +5 .SPACE MATRIX FINANCIAL STRENGTH Factors Unlimited Capital High Market Share No.

5 +4 +5 +2.SPACE MATRIX INDUSTRY STRENGTH Factors Growth potential Profit potential Financial stability Technological know how Resources utilization Ease of entry into market Total «« Average ««« Rating +5 +3.5 +4 +24 +4 .

+2) .SPACE MATRIX SCORE ON X=AXIS  Competitive Advantage = -2  Industrial Strength = +4      Total Score on x-axis = -2+(+4)=+2   SCORE ON Y-AXIS Financial Strength = +5 Environmental Stability = -3 Total Score on y-axis = -3 +(+5) = +2 Coordinates (+2 .

the suitable strategies for P&G safeguard are: yMarket penetration  yMarket development  yProduct development .RESULT OF SPACE MATRIX  The direction vector points towards the aggressive quadrant. Therefore.

THANK YOU .

Sign up to vote on this title
UsefulNot useful