Company Introduction

Establishment:

P&G is an American Global Corporation based on manufacturing a wide range of consumer goods. It was born on October 31 1837, headquartered in Cincinnati, Ohio, USA.

As of 2008, P&G is the 6th largest company Market capital, 14th largest by profit and 6th in Fortunes most admired companies list.

P&G Pakistan:

Procter & Gamble Pakistan, headquartered in Karachi, commenced operations in Pakistan in 1991. Our goal was to become the finest global consumer goods company operating locally in Pakistan. To fulfill this goal, we are serving Pakistani consumers with 12 high-quality brands locally that strive to make everyday lives better.

With commitment came growth, and in 1994 we acquired a soap-manufacturing facility sprawling seven acres of land at Hub, Baluchistan. In 2002, the plant tripled its soap-manufacturing capacity with an investment of $3 million. In 2004, with an initial investment of about half a million U.S. dollars, a PUR facility was set up with a production capacity of 50 million sachets of the water purifier annually. The P&G Hub plant is the single plant that produces PUR globally. Today, the Hub plant is equipped with state-of-the-art manufacturing technologies and quality assurance processes and systems, reflecting the company's values of safe, hygienic and ethical manufacturing practices.

P&G Pakistan headquarters are consistently upgraded to the company's progressive values. Investments of $1 million and a recent $600,000 investment have taken place in the work-space environment to date. The P&G Pakistan head office today hosts high-speed digital networks and advanced systems and facilities. As a company with vast global experience, P&G has believed in the potential Pakistan has as a country. Since 1989, the total amount invested by P&G Pakistan in assets, working capital and market development has exceeded RS. 6 billion. In addition, Procter & Gamble contributed RS. 3.1 billion to the national exchequer in the form of taxes and duties during 2005 and 2006, increasing 13 percent over the previous year.

P&G has attracted outstanding individuals since the day it began operations in Pakistan. The company employs more than 257 people and creates more than 4,000 jobs indirectly in Pakistan, 99 percent of which are held by Pakistanis. All this makes P&G a more locally focused company.

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ORGANIZATION PORTFOLIO

P&G is an American Global Corporation based on manufacturing a wide range of consumer goods. It was born on October 31 1837, headquartered in Cincinnati, Ohio, USA.

As of 2008, P&G is the 6th largest company Market capital, 14th largest by profit and 6th in Fortunes most admired companies list.

Company type: Public company

Brands:

P&G offers a variety of brands. P&G’s existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines.

The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.

P&G’s products are found in almost every product category. Following are the list of brands served in Pakistan for washing detergents:

Laundry Detergents:

 Agro (discontinued)  laundry detergent  Bonus laundry detergent (discontinued)  Bonux laundry detergent  Dash laundry detergents  laundry detergent  fabric softener  Gain laundry detergent  Ola laundry soap  PMC laundry soap  laundry detergent

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Tide

We are going to discuss tide laundry detergent with the respect of its opportunities and challenges in Pakistan. We will start our discussion with the introduction of tide washing detergent.

History:

The original Tide laundry detergent was a synthetic designed specifically for heavy-duty, machine cleaning. Tide was first introduced in U.S. test markets in 1946 as the world's first heavy-duty detergent, with nation-wide distribution accomplished in 1949. Tide claimed it was "America's Washday Favorite." Authority was quickly gained in the U.S. detergent market, dwarfing the sales of Snow; and accelerating the demise of two of its main competing products, and Gold Dust Washing Powder, both then Lever Brothers brands. These other brands came in the more familiar soap-powder and soap- flake forms. Tide, however, initially came shaped as a white powdered bead. The line was expanded to include an orange-tinted clear liquid form in 1984. Today, most formulations of liquid Tide, both ultra and non-ultra are dark blue, with the exception of "Tide Free", which is clear. Each year, Tide researchers duplicate the mineral content of water from all parts of the United States and wash 50,000 loads of laundry to test Tide detergent’s consistency and performance.

Brand

In a 2009 survey, consumers ranked Tide among the three brands they would be least likely to give up during the Great Recession. The Tide trademark is an easily recognized, distinctive orange-and-yellow bulls-eye. This original logo was designed by Donald Deskey, an architect and famous industrial designer. The logo was slightly modified for the product's fiftieth anniversary in 1996, and remains in use today.

Tide was the first product to be nationally packaged using Day-Glo colors—strikingly eye-catching when first introduced in 1959.

Currently, the Tide brand is on at least six powders and liquid detergents in the United States alone.

The Tide product-line

Tide is marketed under various sub-brands, such as 2x Ultra Tide. In the late 1960s and early 1970s, it was branded as Tide XK (the XK standing for Xtra Kleaning), but it was rebranded simply as Tide later.

An addition to the Tide family, Tide Coldwater was formulated to remove stains while saving energy because it does not require hot or even warm water. Tide Free was marketed as being environmentally friendly. Tide-To-Go is a product packaged in a pen-like format and intended to remove small stains on the spot, without further laundering.

Target Market:

 Women ages 18-54  Middle Class Market

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Positioning:

A Premium product which has all the qualities of a detergent in unique shapes and innovative ideas

Opportunities:

 Strong parent brand Image ensures its exclusivity in awareness.  Niche Target Market; like Tide-to-Go and will cover an untapped market.  Tide has a strong market presence all over the world and it can also help the customers to recognize it easily.

Challenges:

• Many Competitors in Market with same quality at affordable price. • Price sensitivity might come in the way of tide because cheaper products are easily available. • Only Niche Market is Target, it can affect sales: Low profit margins in detergent sector.

Price Comparison: (Ariel vs Tide)

Weight Ariel (Price) Tide (Price) 500 gram Rs. 110 Rs. 795 (Ultra Tide) 500 gram N/A (Rs.795/Packet) Tide Pods 1 kg Rs. 210 N/A 1.5 kg N/A Rs. 595 1.63 kg N/A Rs.1495 (Ultra Tide) 2.72 kg N/A Rs. 2595 (Ultra Tide) 3kg Rs. 695 Rs. 1145 7.2 kg Rs. 2695 (7.5kg) Rs.5295 (Tide Pods) 7.5 kg N/A Rs.2695 9 kg N/A Rs. 3495

References: http://www.mbaskool.com/brandguide/fmcg/818-tide.html http://en.wikipedia.org/wiki/List_of_Procter_%26_Gamble_brands http://www.pg.com/en_US/company/index.shtml http://en.wikipedia.org/wiki/Procter_%26_Gamble

Price Reference: Al-Fatah Super Market ( prices taken on 15 oct 2014 )

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