P&G
P&G
Table of Contents
1. Executive summary 2. Situation Analysis 2.1 Customers 2.2 Competitor Analysis 2.3 Company 2.4 Context
3. Marketing Opportunities and Issues 4. Objective and goals 5. Sales Forecast 6. Strategy 6.1 Tools 7. Target Markets 8. Positioning 9. Marketing Mix 9.1 Product 9.2 Pricing 9.3 Place 9.4 Promotion 10. Review and Control 11. Contingency Plan 12. Observation and Recommendations 13. Conclusion 14. Appendix 15. References Page No. 4 5 5 6-7 8 9 10 11 12 13 13 14 15 16 16 17 18 19 20 21 22 23 24 25
Acknowledgment
First of all we are much thankful to almighty Allah who blessed us with knowledge like blessing, which is undesirable gift of Allah .to humanity, this is the real gift due to which man has been created and honored with such glossary. After this we would also like to mention his last prophet (Muhammad peace be upon him), the shear love of whom guide us at every dear step. Then we are very thankful to Mrs. Samreen khan provide us the opportunity of showing our selves. We would like to mention here worthy Assistant Manager Mehboob Sultan and Muhammad Usman (Unit Manager) under whose kind supervision we have prepared the marketing plan of six major products. We are also very thankful to the administration of the P&G in Faisalabad. Last but not least, we would like to thanks our beloved parents, who always inspired us & provide us with the best possible help. They always encourage us .may Almighty Allah blessed them with unsound &unbound joy throughout their lives. (Aamin)
Authors
1. Executive summary
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We are the students of MBA who prepared marketing plan for the purpose of learning and experience under the kind supervision of Miss Samreen Khan. We have analyzed each and every thing regarding marketing plan such as situation analysis, sales analysis, competitor analysis, marketing mix ,contingency plan etc. We also analysis the expected problem in future and their solutions with observations.
2. Situation Analysis
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Companys current market position is 35% and has aim to increase by 5% more within one year. To achieve this target company is focusing on customer oriented strategies and providing just in time delivery in all over the world. Company is doing personal selling publicity in magazines and one to one marketing in Pakistan to retain their customers. Promotional campaign will be considered more. This work is done by engineering, sales and marketing departments. This plane will be carry on 1st July 2009 and will finished on 31st June 2010. 2.1 Customers: Company will receive 12% revenue of total sales from existing customers.5% new customer will be created within 1 years. To retain the existing customers company will use following tactics. Improve contracts with existing customers. Will use frequency program. Identify and more contact with new potential customers. Objection handling will be encouraged become campanile constraint that 2/3 ideas come from over customers. Will concert profiteer customers will more pollinate customers. Company considered that customer is always the king of the market and more sensitive to quality and prices at a time.
In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight Soap his revolutionary new product that helped popularize cleanliness and hygiene in Victorian England. It was 'to make cleanliness commonplace; to lessen work for women; to foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products'. Enjoying economies of scale Good will in the market Strong financial position Well-known brand name Well brand image Committed employees Good Resources Relative large market shows Large captive customers in same group Good quality Suitable Prices Strong sale force Wide product line extension Maximum market share
Weaknesses Still manual system Less qualified staff Weak communication skills Internal operating problems 5
Opportunities (For us) Our new product can gain market share at their expense. We can expand over distribution area.
Threats (To us) `They have the resource to Develop product quickly of sales increase more they will above to support back up science. They have resource for large per motional campaign Wider range of product line. Grater market share Large number of distributers Large budgeting for advertisement Smuggled brands of CHINA New competition in the market Increases in taxes
former improving upon old products or inventing new ones to match these needs and desires. Three billion times a day, P&G brands touch the lives of people around the world. The company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers, Tide, Ariel, Always, Whisper, Pantene, Mach3, Bounty, Dawn, Gain, Pringles, Folgers, Charmin, Downy, Lenore, Iamb, Crest, Oral-B, Atonal, Duracell, Olay, Head & Shoulders, Walla, Gillette, and Braun. The P&G community consists of 138,000 employees working in over 80 countries worldwide.
2.4 Context
The market share of the company is 35%.The chances of growth rate is 5% more is expected in Pakistan. The heart of a companys business model is the game-changing innovation. This is not just the invention of new products and services, but the ability to systematically convert ideas into new offerings that alter the very context of the business.
The company has made an investment of $ 6 million to triple the production capacity of its plant at Hub. "This is aimed at increasing the volume of the exports of our products, the quantity of which at present remains small from our plant in Pakistan."
Issues:
For Sales growth they need highly intensive distribution and strong promotions P and G is facing competition from unilever as on the base of different brands market share P and G has to maintain its difference from other brands as creating unique values that others are not giving with core product. Sales growth is possible when product remain at fixed price for a specific time period and this depend on cheapest raw material handling and its transporting
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Year
June 2007-June2008 June2008-June2009 June2009-June2010
Sales
58000000 Rs. 42000000 Rs. 395000000 Rs.
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6. Strategy
1. 2. Find business articles from leading publications and journals. Designed to offer existing customers a wider range of products or services.
6.1 Tools Increase range of sizes /colures/material offered. Increase range of services offered Increase range of extra features
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7. Targets markets
Procter and gamble targets the elite class customer Procter and gamble targets especially women and children Company will use about 10% cost to retain its customer
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8. Positioning
Company will position itself as a value for money brand .Its appeal will be where your dreams come true with touching life, improving life.
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Change product port folio. Expand product line to cover a wider market. Develop separate products for different markets. Acquire new products that complement existing products through the acquisition of new companies. Drop, add or modify products
Strategy Tactics
Drop marginal products. Launch a modified product. Develop new products to supersede old products. Change, design, quality or performance
Strategy Tactics
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Distinguish your product from your competitors products in the eye of your customers. Establish a permutation for innovation. Create new uses for your existing products by adding exclusive features.
9.2 Pricing
Strategy Tactics Change price terms or conditions for particular products
Product price low and obtain maximum profit on spare parts. Use different prices and different price lists for different markets. Set price at 10% below market leader. Reduce price of product to maximize sales (to allow increased production and reduce unit production cost). Skimming policy
Strategy Tactics
Set price of new product at level 30% about previous products. Sell on new revolutionary design features and benefits. Be prepared to reduce price as volume if competitors enter into the market. Penetration policy
Strategy Tactics
Set low price for new product to discourage competitors from entering market. Increase turnover to level where product become profitable at this price level. Discount policy
Strategy Tactics
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Offer quantity discount to encourage large purchases. Offer discount level for next year.
Set own distribution direct to stores Change distribution for area Increase number of warehouses for product. improve services
Strategy Tactics
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Strengthen sales force organization. Reorganize sale force for particular area. Introduce performance related bonus scheme for sale force. Recruit additional sales personnel. Increase sales effort to increase sale to major customers. Increase sales efforts for most profitable products. Change advertising/ sale promotion
Strategy Tactics
Start new advertising campaign. Increase company image advertisement. Increase advertising for the product in specific market.
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11.1 Solution:
Company should contact the head office for the strategic support to achieve its goal. Company should make huge expense on advertising to retain and create new customer. Company should held maximum seminars and meeting for the promotions and products of the company Company should cut the allowances and should accommodate for the important designations.
12. Observations
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Communication skills are strong. More concentration on marketing concept. Cooperative employees. Strong management. Attractive packages. Positive attitudes towards outsiders. Strong DMBS. Maximum career opportunities for employees.
Recommendations
Improve the quality of pampers. Use cut price strategy to retain the customers. Provide frequency programs more and more. Increase its market share. Improve the packaging of Ariel more to compete the surf excel. Improve the quality of pamper. Provide tool free number for customer response.
13. Conclusion
Company is flourishing day by day but due to the recession in Pakistan it also suffering. Companys strategies are very suitable. Company should invest more on 20
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advertising to retain its customer. Company should pay more attention to its issues and should review very well. Procter and gamble using the tool of depositioning very well to attain its customers.
14. Appendixes
For information we went to P & G office in Gulistan colony Faisalabad. We visit METRO to get information about placement of P & G Products. We also visit different sites to get more information about P & G. 21
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We also visit EMS Marketing sales promotion advertising Direct Marketing and Marketing research.
References
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