LAUNCH OF ZEST SOAP IN PAKISTAN

Marketing Management Term Report

GROUP MEMBERS

Muneeb Hussain Syed Taha Shah Syed Zakir Shah Kashif Ali Zahid

INTRODUCTION

Zest is a global soap brand made by P&G, and created in 1958 with the debut of Aqua Pure bar. The overall brand portfolio includes Bar soaps Liquid soap Body wash Liquid hair wash Shower gelsin more than five variants with winning innovationbeing their exotic scent.

COMPANY PROFILE

Procter and Gamble Corporation is the leading consumer goods company with a mission to improve the lives of consumer wherever it operates. P&G is an international company reaching out to almost entire world population with more than 250 brands in 130 countries. Many of these world brands (Ariel, Tide, Pert Plus, and Pentene, Head n Shoulders, Pamper and Always) have become famous household names and are found in almost in every home.

P&G commenced operations in Pakistan in 1991. Headquartered in Karachi, its goal is to become the finest global consumer goods company operating locally in Pakistan

COMPANY BRANDS

SITUATION ANALYSIS

Major segments of the soap market in Pakistan.

Market share for leading soap brands in Pakistan.

Soap Market Segments Urban Rural

Skin care & Moisturizing 90% 10%

Health & Hygiene 45% 55%

Sweat Odor 22% 78%

Lux Capri Lifebuoy Dettol Safe Guard

Others

29.7% 9.8% 13.5% 12.9% 20.4% 1.7%

COMPANY SWOT ANALYSIS Strengths Opportunities

Procter & Gamble is one of the largest organizations in the Pakistan.

Population expanding at a rapid rate.

The company has advanced technology and well skilled professionals.

Consumers are becoming more quality conscious.

The target all the social class with different product and different brands.

Other Cities are a large prospective market where they can introduce Pert Plus3 in 1.

Company totally owned, systematic distribution network, transparent communication system.

Increasing need for healthy products.

Participative management style. Changing consumer preferences.

Very good distribution network. Huge profits also.

Strong relationship with retailers. People becoming more health conscious.

Customer base is increasing with effective marketing.

Weakness Threats

Competitor has strong promotional activities. Political and Economic factors.Inability in maximize acquisition Recession of the world.

Imported brands also available in the market. Smuggling is another threat. High rate of competition.

Competitor has very strong hands on anti bacterial soap industries too.

Local and Foreign competition.

TARGET MARKET

In Target Marketing, we will be segmenting towards geographic, demographic, psychographic and behavioral.

Geographic KARACHI LAHORE ISLAMABAD PESHAWAR QUETTA FAISALABAD MULTAN

TARGET MARKET

Demographic Age : 15-40 Gender :Male & Female Social Class : Upper Middle & Middle

Psychographics By using ZEST Soap, the consumer will think that he/she

is feeling refreshed. Behavioral

The primary benefit of the product is providing the hygienic refreshment. So the people who lived in the urban areas and inhale the pollution of environment can take the benefit form it by it fragrance.

MARKETING STRATEGY

Marketing Strategy for promotions can be done on both ways of ATL & BTL

ATL In ATL we can make attractive and meaning full advertisements which

can be shown on electronic media like Television Channels & Radio. BTL

In BTL there are many ways by which we can direct encounter our consumers and can convert into loyal consumers. Different techniques effects effectively on a consumer but countable consumers are affected by it. We can use channels like

Floats Stalls Arena Home Gathering Moving Banners Mystery Shoppers etc

ZEST FLOAT

MARKETING STRATEGY

Free Sampling In the beginning company has plan to free

distribute the samples for product orientation. Twenty thousand samples of each product are ready.

Unique Selling Proposition

Recognition The product is recognized by the ministry of

health. These are the good and hygienic products and work as the company committed.

HYGENIC REFRESHNESS

SALES

The Sales are the main perspective of any business. As P&G is also doing very good business in a Pakistani Market & its market ratio is in very good position so the qualified and experienced sales team of P&G give a great support to its sales part.

SALES

Where to Play Main cities of PAKISTAN like Karachi, Lahore ,

Islamabad etc.Store Type Size Of

TradeNo. Of Stores

Products Variants

Top End Retail (Makro, Metro) 30% 500 Soap & Shower Gel Aqua, Ocean Breeze, Marathon, Hint of Honey

Walk in Store (Utility Store, General Store)

35% 1500 Soap & Shower Gel Aqua, Ocean Breeze, Marathon, Hint of Honey

Cosmetics Stores(Color Collection, Gulf Cosmetics, Mascara)

20% 10000 Soap & Shower Gel Aqua, Ocean Breeze, Marathon, Hint of Honey

Kiryana Store & Bakeries 15% 100,000 Soap only Aqua, Ocean Breeze, Marathon, Hint of Honey

SALES

How to Win The strategy is to create full hype before launch by the

advertisements and billboards to make people curious about zest. As we have an experienced P&G sales staff so there is no problem to make a position in a shop of our product. As our price is normal as compared to quality and product it also attracts the brand loyal consumers.

Packaging It must be attractive and give a feeling of freshness as it

is shown in our Brand pamphlet. We will pack the bar in a colorful card box and the shower gel will be packed in the plastic bottle.

SALES REPRESENTATIVES- CONSTRAINT

Distribution We will use the same distribution channel by which whole P&G is working. We willprovide a zest brief booklet fortime saving so that he can read easily and can also explain to consumers also. In this booklet all purchasing schemes are scheduled so that retailer can easily make decision that how we can make the most profit.

SALES REPRESENTATIVES- CONSTRAINT

Right Pricing We are introducing zest soap at Rs. 50 & Body Wash at Rs.170.

Shelving/Placement Now a day’s shelving and product placements plays very important role ina selling and buying process. It must beeasy reach to consumer means upon 4 feet height shelf must be occupied by Zest with its branding.

Merchandising: We use all type of merchandising for visibility purposes like Buntings Posters Flyers etc

MARKETING MIX

ProductProduct Variant Price Volume

Soap Aqua, Ocean Breeze, Marathon, Hint of Honey

Rs.50 100 gm

Shower Gel Aqua, Ocean Breeze, Marathon, Hint of Honey

Rs.170 170 ml

MARKETING MIX

PricingPricing of Soap Bar

Manufacturing price Rs.25.93

Profit 25% Rs.6.48

Corporate tax 35% Rs.2.27

Company selling price Rs.34.69

Distribution margin 12% Rs.4.16

Distributer selling price Rs.38.85

Retailer margin 10% Rs.3.89

Retail price Rs.42.74

Sales tax 17% Rs.7.26

Consumer price Rs.50.00

MARKETING MIX

PricingPricing of Body Wash

Manufacturing price Rs.88.18

Profit 25% Rs.22.04

Corporate tax 35% Rs.7.72

Company selling price Rs.117.94

Distribution margin 12% Rs.14.15

Distributer selling price Rs.132.09

Retailer margin 10% Rs.13.21

Retail price Rs.145.30

Sales tax 17% Rs.24.70

Consumer price Rs.170.00

MARKETING MIX

Placement Procter & Gamble has very vast distribution

channel in all over the Pakistan. By using the current resources the company can save distribution cost and can easily reach to the targeted stores.

Promotion The promotion of the brand will be done

through using all the latest and effective tools.