Phase 1
Phase 1
Phase 1
Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company
headquartered in downtown Cincinnati, Ohio, United States, founded by William Procter and James
Gamble, both from the United Kingdom. Its products include cleaning agents and personal care
products. Prior to the sale of Pringles to the Kellogg Company, its product line also included foods and
beverages.
In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was streamlining the
company, dropping around 100 brands and concentrating on the remaining 65 brands, which produced
95% of the company's profits. A.G. Lafley, the company's chairman, president, and CEO until October 31,
2015, said the future P&G would be "a much simpler, much less complex company of leading brands
that's easier to manage and operate".
David Taylor became P&G CEO and President effective November 1, 2015
International history:
Since 1837, weve built a rich heritage of positively impacting consumers lives with brands that
make each day a little better.
Candlemaker William Procter and soapmaker James Gamble, both born in the United Kingdom
of Great Britain and Ireland, emigrated from England and Ireland, respectively. They settled in
Cincinnati initially and met when they married sisters, Olivia and Elizabeth Norris.Alexander
Norris, their father-in-law, called a meeting in which he persuaded his new sons-in-law to
become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble
was created.
In 18581859, sales reached $1 million. By that point, about 80 employees worked for Procter &
Gamble. During the American Civil War, the company won contracts to supply the Union Army
with soap and candles. In addition to the increased profits experienced during the war, the
military contracts introduced soldiers from all over the country to Procter & Gamble's products.
In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats
in water. The company called the soap Ivory. William Arnett Procter, William Procter's grandson,
began a profit-sharing program for the company's workforce in 1887. By giving the workers a
stake in the company, he correctly assumed that they would be less likely to go on strike.
The company began to build factories in other locations in the United States because the
demand for products had outgrown the capacity of the Cincinnati facilities. The company's
leaders began to diversify its products, as well, and in 1911, began producing Crisco, a
shortening made of vegetable oils rather than animal fats. As radio became more popular in the
1920s and 1930s, the company sponsored a number of radio programs. As a result, these shows
often became commonly known as "soap operas".
Procter & Gamble acquired a number of other companies that diversified its product line and
significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton
Pharmaceuticals (the makers of Pepto-Bismol), Richardson-Vicks, Noxell (Noxzema), Shulton's
Old Spice, Max Factor, the Iams Company, and Pantene, among others. In 1994, the company
made headlines for big losses resulting from levered positions in interest rate derivatives, and
subsequently sued Bankers Trust for fraud; this placed their management in the unusual
position of testifying in court that they had entered into transactions that they were not capable
of understanding. In 1996, P&G again made headlines when the Food and Drug Administration
approved a new product developed by the company, Olestra. Also known by its brand name
'Olean', Olestra is a lower-calorie substitute for fat in cooking potato chips and other snacks.
In January 2005, P&G announced the acquisition of Gillette, forming the largest consumer goods
company and placing Unilever into second place. This added brands such as Gillette razors,
Duracell, Braun, and Oral-B to their stable. The acquisition was approved by the European Union
and the Federal Trade Commission, with conditions to a spinoff of certain overlapping brands.
P&G agreed to sell its SpinBrush battery-operated electric toothbrush business to Church &
Dwight, and Gillette's Rembrandt toothpaste line to Johnson & Johnson. The deodorant brands
Right Guard, Soft and Dri, and Dry Idea were sold to Dial Corporation.The companies officially
merged on October 1, 2005. Liquid Paper and Gillette's stationery division, Paper Mate, were
sold to Newell Rubbermaid. In 2008, P&G branched into the record business with its
sponsorship of Tag Records, as an endorsement for TAG Body Spray.
P&G's dominance in many categories of consumer products makes its brand management
decisions worthy of study.[14] For example, P&G's corporate strategists must account for the
likelihood of one of their products cannibalizing the sales of another.
On August 25, 2009, the Ireland-based pharmaceutical company Warner Chilcott announced
they had bought P&G's prescription-drug business for $3.1 billion.
P&G exited the food business in 2012 when it sold its Pringles snack food business to Kellogg's
for $2.75 billion after the $2.35 billion deal with former suitor Diamond Foods fell short. The
company had previously sold Jif peanut butter, Crisco shortening and oils, and Folgers coffee in
separate transactions to Smucker's.
In April 2014, the company sold its Iams pet food business in all markets excluding Europe to
Mars, Inc. for $2.9 billion. It sold the European Iams business to Spectrum Brands in December
2014.
National history:
Procter & Gamble (P&G), one of the leading fast moving consumer goods (FMCG) companies in
the world, is celebrating 25 years of its presence in Pakistan. Since its first shipment of Head &
Shoulders shampoo in the country in 1991, P&G has won the trust and confidence of Pakistani
consumers through the introduction of premium quality brands and sustained investments in
the community, industry and human resource.
Sharing his thoughts on this milestone, Sami Ahmed, Vice President, P&G Pakistan, said: "This is
truly a historic occasion and a moment of great pride for P&G as we celebrate 25 years of
successful operations in Pakistan. Through these years we have remained steadfast in our
purpose to touch and improve the lives of Pakistan consumers. We've launched some of our
world-renowned brands such as Pampers, Always, Safeguard, Head & Shoulders and Pantene
which have since then become a special part of consumers' everyday lives and therefore are
amongst leading household names in their categories. Through our business growth, we have
invested in the country by building factories and a strong supply base. This has led to the
creation of thousands of jobs directly and indirectly. We are also improving lives of the
community with programs like P&G Children's Safe Drinking Water, Pampers Hospital Education
Program and Mobile Clinics, as well as Safeguard and Always School programs."
He further added, "Pakistan is an important market for P&G. With a large, growing population,
high urbanization, highly young population and evolving retail landscape, the country offers a
significant consumer base with huge potential. We're poised for future growth in Pakistan and
look forward to celebrating many more milestones here in the years ahead."
For 25 years, P&G has continued to touch and improve the lives of millions of Pakistanis in
meaningful ways, through premium quality brands, impactful social cause programs and the
development of local skills. The company's product offerings are a result of significant
investments in understanding the needs and aspirations of consumers in order to deliver
innovative products and campaigns that fulfil their needs and improve the quality of life.
Often described as a multinational success story in Pakistan, the company's string of
investments can be traced back to the time when P&G set up its first plant in 1994 in Hub,
Balochistan. The plant manufactures the anti-bacterial soap Safeguard. Building on its
investment profile, P&G inaugurated a state-of-the-art dry laundry detergent plant in Port
Qasim in December 2010. With this investment, P&G began local production of Ariel, its highly
successful detergent.
Through the years P&G has invested tens of millions of dollars in fixed assets. It has created
hundreds of millions of dollars in local value addition, resulting in significant development of a
local supplier base. It has also created around 5000 direct and indirect employment
opportunities across the country. P&G has a strong promote-from-within culture which focuses
on developing leaders by providing challenging assignments and nurturing the talent and skills
of individuals throughout the organization. It also conducts well-built student-focused activities
to help aspiring young professionals grow.
With strong business growth, P&G continues to fulfill its commitment towards helping families
in need across the country. Through its social-cause programs, P&G has provided clean drinking,
health and hygiene awareness and quality education, reaching over 40 million Pakistanis to
date.
P&G continues to maintain a positive long-term outlook on Pakistan and strongly believes in the
potential the country has to offer. Its history in the country is a testament to the great
partnership between P&G and Pakistan. P&G remains committed to the long-term prosperity
and well-being of Pakistanis and with this spirit, looks forward to fulfilling its purpose of
touching and improving Pakistani lives in the years to come.
Core Values:
Integrity:
We always try to do the right thing.
We are honest and straightforward with each other.
We operate within the letter and spirit of the law.
We uphold the values and principles of P&G in every action and decision.
We are data-based and intellectually honest in advocating proposals, including recognizing risks.
Leadership:
We are all leaders in our area of responsibility, with a deep commitment to delivering leadership
results.
We have a clear vision of where we are going.
We focus our resources to achieve leadership objectives and strategies.
We develop the capability to deliver our strategies and eliminate organizational barriers.
Ownership:
We accept personal accountability to meet our business needs, improve our systems and help
others improve their effectiveness.
We all act like owners, treating the Companys assets as our own and behaving with the Companys
long-term success in mind.
Trust:
We respect our P&G colleagues, customers and consumers, and treat them as we want to be
treated.
We have confidence in each others capabilities and intentions.
We believe that people work best when there is a foundation of trust.
Safeguard plant:
Safeguard Vision:
Safeguard Pakistan is a globally recognized Org driving customer value via E2E SC Synchronization &
Mfg. Excellence in a stewardship compliant manner. We excel in winning MOTs for consumers &
employees. We improve the community we operate IN every day.
About safeguard:
Safeguard empowers mothers by providing them with a simple, yet effective, defense against germs and
preventable illnesses. When it comes to germ protection. Safeguard is 100% recommended by global
health experts.
Safeguard has been helping Moms keep their family healthy for over 40 years. Today, our products -
including bar soap, body wash, liquid hand soap, and hand sanitizer - are available in more than 15
countries across Asia. Europe, Africa and Latin America.
Safeguard knows that clean hands save lives. Through innovative school education programs,
partnerships with respected local health organizations, and support for Global Hand washing Day, we're
fullling our mission to promote life-saving hygiene habits around the world.
Nature of business:
Making your day betterin small but meaningful ways.
We see big potential in lifes little moments. Brushing teeth. Washing hair. Showering. Shaving.
Caring for the baby. Cleaning the house. Doing the dishes, and the laundry. We make the
products that help make these moments a little easier.
Procter & Gamble Co., also known as P&G, is an American multinational consumer goods
company. cleaning agents business.
Protecting your kids from harmful germs is manageable enough at home. But what about
when they are at school? To help protect children throughout the year, Safeguard is proud
to support the Clean Hands, Healthy Kids School Education Program. This program was
created exclusively by Safeguard to help promote good hand-washing habits among
children, because hand washing is the single most important way to prevent the spread of
disease.
HISTORY OF SAFEGUARD:
In 1837, William Procter and James Gamble started making and selling soap and candles in
Cincinnati, Ohio. This marked the beginning of a rich heritage of soap making for Procter & Gamble.
For more than 50 years, Safeguard has delivered on the commitment to provide the best protection
against disease-causing germs of any antibacterial soap. With a presence in more than 15 countries,
Safeguard continues to introduce new innovations and education programs that help make families
smarter and stronger in the fight against harmful germs.
1963
Procter & Gamble launches Safeguard Deodorant and Antibacterial soap in the U.S. in
response to increasing consumer demands for odor and germ protection. Clinical tests
reveal that Safeguard reduces bacterial skin count by 99.3%.
1966
Safeguard launches in international markets, beginning in the Philippines.
1967
The first of many scientific studies proving the efficacy of Safeguard is published. The
research shows that Safeguard reduces skin infections by 44%.
For the rest of the decade, Safeguard continues to outperform leading soaps in the market
with its unique combination of effective germ protection and mildness.
1970
In the 1970s, Safeguard transforms into the perfect bar soap to protect the whole family:
Richer, Livelier Lather Safeguard The Perfect Family Soap with coconut oil.
1990
In the 1990s Safeguard reaches more families than ever around the world as the brand is
launched in international markets including China and Pakistan.
1992
Safeguard introduces its first Liquid Antibacterial Soap.
2004
Safeguard introduces its first body wash.
2008
Safeguard joins a group of partners to introduce the first Global Handwashing Day to help
spread the message that clean hands can save lives. Today, people from more than 100
countries come together to celebrate the event.
2008
After a major earthquake in Sichuan in 2008, Safeguard begins working with disaster relief
agencies around the world to provide soap and sanitation facilities to help families protect
themselves from disease.
2010
Safeguard introduces its first liquid hand soap.
2011
Safeguard introduces its first hand sanitizer.
2014
Safeguard introduces its new formula for protection, GermShield+, which protects against
more germs longer than any other antibacterial soap.
How the Clean Hands, Healthy Kids School Education Program Works
Safeguard strives to have a positive, lasting impact on schoolchildrens hand-washing habits. The
program teaches children when to wash their hands, how to properly wash their hands, and how
often to wash their hands, with the help of fun and engaging activities that include Commander
Safeguard, our own hand washing superhero who is dedicated to defeating harmful germs.
At the core of the message are the five most important hand washing moments:
1. After playing outside
2. When getting home from school
3. After sneezing or coughing
4. Before eating
5. After using the toilet
In addition, the program also teaches children the five hand washing steps:
1. Wet hands under clean, running water.
2. Create a full lather on hands with Safeguard soap.
3. Scrub hands for at least 20 seconds.
4. Rinse hands with clean water.
5. Completely dry hands with a clean towel, or air dry.
How Clean Hands, Healthy Kids Has Helped
Since it first began in 2008, the Clean Hands, Healthy Kids School Education Program has taught
proper hand washing to more than 50 million kids around the world. This includes:
1. The Philippines: Safeguard has partnered with the Department of Education and UNICEF to educate
more than 2 million children on the importance of hand washing.
2. China: Safeguard is helping to build a Great Wall of Health through hand-washing education and
hygiene infrastructure in schools. We are on our way to educating 100 million children by 2015.
3. Pakistan: More than 6 million children have received hand-washing education from Safeguard, with
a goal of reaching 15 million by 2015. One of our most recent initiatives is a partnership with Save
the Children to bring improved hand washing, toilet, and water supply facilities to 100 primary
schools
Types of ownership:
Public company with share price of 83.45 USD
2016
Reportable % of % of Net GBUs (Categories) Major Brands
Segment Net Earnings1
Sales1
Beauty 18% 20% Hair Care (Conditioner, Shampoo, Styling Head &
Aids, Treatments) Shoulders,
Pantene,
Skin and Personal Care (Antiperspirant Rejoice
and Deodorant, Personal Cleansing, Skin
Care) Olay, Old
Spice,
Safeguard,
SK-II
Grooming 11% 15% Grooming2 (Shave Care - Female Blades Braun, Fusion,
& Razors, Male Blades & Razors, Pre- Gillette,
and Post-Shave Products, Other Shave Mach3, Presto
Care; Appliances) Barba, Venus
Health Care 11% 12% Oral Care (Toothbrushes, Toothpaste, Crest, Oral-B
Other Oral Care)
By Business Segment:
Baby, Feminine and Family Care (28%),Beauty (18%),Fabric Care and Home Care
(32%),Health Care (11%),Grooming (11%),Ariel, Downy, Gain, Tide, Cascade, Dawn,
Febreze, Mr. Clean, Swiffer
By Geographic Region
Asia Pacific (9%), Europe (23%),Greater China (8%), India, Middle East and Africa (IMEA)
(8%),Latin America (8%),North America (44%).
By Market Maturity
HIERARCHY OF ORGANISATION
Products / Services (SAFEGUARD)
MARKETING MIX:
Safeguard is one of the most popular soap brands of Pakistan, which is popular with public because of its
appropriate marketing strategies and an excellent marketing mix. Discussed below are the tools of
marketing mix, used by Safeguard, to satisfy the needs and wants of its target market and for
maintaining its competitive advantage over its competitors.
PRODUCT:
As defined by the company, Safeguard is an anti-bacterial soap, based on clinical testing, that provides
both effective germ removal and deodorant protection. It provides effective germ removal, yet is mild
enough for the whole family.
Given below are its product attributes: Variety: it is available in a variety of colors and flavors like aloe
Vera, sandalwood, vitamin-e, menthol, lemon, beige, pure white, herbal (colors) It is also available in
two different sizes of 75grams and 125 grams with prices of Rs.14 and Rs.21 respectively.
Quality:
Safeguard is a high quality anti bacterial soap, which is approved by the PMA (Pakistan Medical
Association) and is clinically tested. Features: it offers germ removal and deodorant protection and is
available in eyecatching colors with pleasant fragrances. Brand name: its brand name, Safeguard,
promises protection against germs and diseases. Packaging: it is packaged in a well-designed pack with a
shield placed in the center, which highlights its effectiveness against germs. Its pack also contains a
certification by the PMA to ensure its good quality.
PRODUCT CLASSIFICATION:
Safeguard is a soap brand and is therefore classified as a consumer good, which falls in the category of
convenience goods or FMCG (fast moving consumer good). Because of being a convenience good that is
purchased frequently with little or no planning, it is available at an affordable price, is promoted heavily
through advertising, sales promotion and PR, is distributed widely and is available at convenient
locations. Types of consumer products
Convenience goods
The product line of Safeguard in terms of both flavors and sizes is given below:
2. Aloe Vera
3. Lemon
4. Herbal
5. Menthol
6. Sandalwood
SIZES:
1. 125 GRAMS
2. 75 GRAMS
PRODUCT LIFE CYCLE-PLC
INTRODUCTION:
According to the product life cycle, the introduction stage of Safeguard falls in the year 1995 when it
was introduced in the Pakistan market and its sales were very low.
GROWTH:
The growth stage for Safeguard started around the year 1998 and it has continued since then. Around
the year 2000, the sales growth of Safeguard was approaching the maturity level but due to some
modifications in the product attributes and good promotion strategies, Safeguard was able to maintain
its sales growth and is still reaping the benefits of its timely actions.
PRICE:
The pricing approach used by Safeguard is value-based and the price-quality strategy is premium
strategy, as it is available at a higher price than other antibacterial soaps like, treat and lifebuoy because
of its higher quality. Its pricing is done with respect to its product line, with different sizes of soap bars
having different prices. Given below is the list of prices for different sizes of soaps offered by Safeguard
Place:
It is a widely distributed soap, which is available in nearly all cities of Pakistan. it is distributed through a
complex distribution channel and is sold through retail stores at convenient locations and is easily
available. Promotion: It is a highly promoted product which is promoted through advertising, sales
promotion and public relations. It is advertised through electronic media and print media, for example;
the Commander Safeguard advertisement is aired on TV and radio and is printed in newspapers and
magazines and it is also advertised through billboards. For sales promotion, Safeguard has its own
website by the name of Commander Safeguard.com where they have lucky draws and other attractions
for kids. Safeguard also has its own public relations department where any queries,comments or
complaints from the public are registered. It was also involved in raising funds for the earthquake
victims and also started a safai program in schools all over the country. Currently, Safeguards mother
company, P&G, is involved in the Sehat-O-Safai campaign to educate school children about the
importance of personal hygiene, especially hand washing with soap.
BRAND POSITIONING:
The brand positioning of Safeguard is that of a good quality anti-bacterial soap. It is positioned in the
consumers mind as a reliable soap brand that protects them against germs and diseases, provides
cleanliness and helps you stay healthy.
Its positioning is benefit focused that highlights its brand attributes. But, Safeguard has now shifted its
positioning focus to beliefs and values by projecting itself as a Pakistan loving and cleanliness giving
brand.
Positioning statement:
The positioning of Safeguard is reflected by this positioning statement that emphasizes on the 24-hour
protection, from germs and diseases, provided by Safeguard. It also highlights the efficiency of
Safeguard that it keeps fighting germs all day and gives you protection for a longer period than other
anti-bacterial soaps.
BRAND STRATEGY:
The brand strategy of P&G for its brand, Safeguard, is line extension strategy. it is available in a variety
of flavors like pure white, herbal, sandalwood, vitamin-e, menthol and Aloe Vera. Besides this, it is also
offered in two different sizes of 125 grams and 75 grams.
CHANNEL OF DISTRIBUTION:
Safeguard is a fast moving consumer good or FMCG that is widely distributed and is available at
convenient locations. Therefore, the channel of distribution through which it is distributed is indirect.
So, it has to pass through different channel levels or intermediaries before reaching the final consumer.
Given below is a figure depicting the channel of distribution of Safeguard.
Channel of distribution:
Safeguard does not distribute the products itself but it uses the third party distribution channel headed
by ABU Dawood group and Agility in Pakistan.
Consumer
Manufacturer Wholesaler Jobber
Retailer
Safeguard is distributed through 4 different intermediaries before reaching the final consumer. The
manufacturer distributes it to the wholesaler who passes it forward to the jobber. From the jobbers, it is
distributed to the retailers and then it finally reaches the final consumer.
The various promotion tools used by P&G for Safeguard are the following:
Promotion
Advertising:
Safeguard is advertised through both print and electronic media. Safeguard commercials are aired on TV
and radio (electronic media) and its advertisements are also printed in newspapers and magazines (print
media). Besides this, one can also find Safeguard billboards placed on various roads across the country.
Sales promotion: Another tool used by P&G for promoting Safeguard is sales promotion. For this,
Safeguard has its own website which offers various attractions for children (target market of Safeguard),
including lucky draws. Besides this, Safeguard also sponsors different contests for children in weekly
newspaper magazines, where children can enter a contest by sending a wrapper of Safeguard along with
other details.
Public relation: Fro public relation, P&G has its own website which offers complete detail about its
products and full contact information for the public. P&G and Safeguard are also involved in many
societal activities such as raising funds for the earthquake victims. Also, Safeguard conducted numerous
campaigns, for promoting cleanliness and patriotism, in many schools across Pakistan.
CURRENT ADVERTISING CAMPAIGN The current advertising campaign of Safeguard is, Commander
Safeguard. Through this campaign, the company has tried to project intangible germs as tangible
characters having names like kachra rani, dirtoo, ghunsunna and algham who spread germs and diseases
in the entire country and are targeted and killed by Safeguard, projected as Commander Safeguard who
is a super hero.
The Commander Safeguard cartoon documentary is shown on different TV channels and is very popular
with kids. Besides being aired on TV, Commander Safeguards story is also aired on radio. Commander
Safeguard story strips are also published in certain newspapers (for children) and he has become a
household name.
The main idea communicated through the Commander Safeguard advertisement is its high-efficiency
germ removal action and quality. It is a persuasive advertisement that encourages kids to fight germs by
using Safeguard.
It has also created awareness amongst people about the dangers and threats posed by germs and the
projection of germs as tangible characters through this campaign has also become a huge hit.
Commander Safeguard has been established as childrens favorite super hero, so, dont be surprised if
you hear children singing,
Pak pak Pakistan, saaf saaf Pakistan har pal har dam azam hamara, safeguard Pakistan