p & g

New product Development for P& G

Strategic Marketing 1


Strategic Marketing ManagementFinal project

Development of new product

Prepared by

Waqas Nazir (053632-073)Khubaib Khan Shirwani (043432-031)

Rehan Iqbal Samad (043432-026)Kabir-uddin-Razi (043432-032)

Haroon Irshad Sulehri (043432-008)

For the consideration of

Mr. Mobin-ul- Haque

Submission Date

22.01.2007



University of management and technology

Table of ContentsParticulars Page no.

1. The need ------------------------------------------------- 12. Introduction to P&G ------------------------------------------------ 2 2.1 history of P&G ------------------------------------------------ 2 2.2 purpose of P&G ------------------------------------------------- 4 2.3 P&G value ------------------------------------------------- 4 2.4 principle of P&G ------------------------------------------------- 4 2.5 product line of P&G ------------------------------------------------- 43. Introduction to Ariel ------------------------------------------------- 5 3.1 product type and brand ------------------------------------------------ 5 3.2 production capacity of Ariel ------------------------------------------------- 6 3.3 customer market of Ariel ------------------------------------------------- 6 3.4 life style and pattern ------------------------------------------------- 6 3.5 marketing program ------------------------------------------------ 6 3.6 prices of Ariel ------------------------------------------------ 7 3.7 reltionship with whole seller ------------------------------------------------- 74. Detergent industry of Pakistan -------------------------------------------------- 8-175. problems faced by industry ------------------------------------------------ 18 5.1 local manufacturer ------------------------------------------------- 18 5.2 disposable income ------------------------------------------------- 18 5.3 parallel imports -------------------------------------------------- 18

5.4 future prospects (after WTO) -------------------------------------------------- 186. pest analysis -------------------------------------------------- 197. porter analysis -------------------------------------------------- 20 7.1 threats of new entrant -------------------------------------------------- 20 7.2 bargaining power of supplier -------------------------------------------------- 20 7.3 threats of substitute ---------------------------------------------------20 7.3.1 Bar soaps --------------------------------------------------- 21 7.3.2 sawaiyan ---------------------------------------------------- 21 7.4 bargaining power of buyer ----------------------------------------------------- 21 7.5 current competators in industry ---------------------------------------------------- 21 8. competitor analysis --------------------------------------------------- 22 8.1 unilever Pakistan --------------------------------------------------- 22 8.1.1 unilever Pakistan a glance ---------------------------------------------------22

8.1.2 introduction of unilever --------------------------------------------------- 23 8.1.3 accountable to our stakeholder --------------------------------------------------- 23 8.1.4 unillever values --------------------------------------------------- 23 8.1.5 living our values --------------------------------------------------- 23 8.1.6 impeccable integrity -------------------------------------------------- 23 8.1.7 demonstrating passion -------------------------------------------------- 24 8.1.8 wowing customer and consumers --------------------------------------------------- 24 8.1.9 bringing out the best --------------------------------------------------- 24 8.1.10 living enterprise culture --------------------------------------------------- 24 8.1.11 making abetter world ---------------------------------------------------24 8.1.12 our mission ---------------------------------------------------- 24 8.1.13 portfolio of catagaries ---------------------------------------------------- 25 8.1.14 scale and geographical reach ---------------------------------------------------- 25 8.1.15 finacial performance ------------------------------------------------------- 26 8.1.16 sales growth -------------------------------- -------------------- 26



8.1.17 market share of unilever ---------------------------------------------------- 27 8.1.18 surf exel ------------------------------------------------------ 27 8.1.18.1 dirt is good ------------------------------------------------------ 27

8.1.18.2 kids on bikes ------------------------------------------------------- 28 8.1.18.3 from our range ----------------------------------------------- 28 8.1.18.4 volume and value share ----------------------------------------------- 28 8.1.19. wheel ----------------------------------------------- 27 8.1.19.1 brand new white ----------------------------------------------- 29 8.1.19.2 volume and value share ----------------------------------------------- 29 8.2 colgate Palmolive Pakistan ---------------------------------------------- 30 8.2.1 launching ---------------------------------------------- 30 8.2.2 colgate re launch ----------------------------------------------- 30 8.2.3 brite re launch --------------------------------------------- 31 8.2.4 herbal white launch ---------------------------------------------31 8.2.5 environmental occupational health -------------------------------------------- 31 8.2.5.1 products -------------------------------------------- 31 8.2.5.2 packing -------------------------------------------- 31 8.2.5.3 facilities -------------------------------------------- 31 8.2.5.4 business ------------------------------------------- 32 8.2.6 consumer affairs -------------------------------------------32 8.2.7 code of conduct ------------------------------------------- 32 8.2.8 fabric care ------------------------------------------- 32 8.2.9 Brite total ----------------------------------------- 32 8.2.10 express power ----------------------------------------- 32 8.2.11 bonus ---------------------------------------- 32 8.2.9.1 launching of Brite total ----------------------------------------33 8.2.9.1.1 value and volume share ---------------------------------------- 33 8.2.9.2 express power ------------------------------------------34 8.2.9.2.1 volume and value share ------------------------------------------ 34 8.2.9.3 Bonus -------------------------------------------- 34 8.2.9.3.1 value and volume share ---------------------------------------------- 35

8.2.9.3.2 prices of bonus ------------------------------------------------ 359. competitor profile matrix - ------------------------------------------------- 36 9.1 explanation -------------------------------------------------- 37 10. IFE matrix --------------------------------------------------- 38 10.1 Steps ---------------------------------------------------38 10.2 IFE matrix --------------------------------------------------- 39 10.3 explanation ---------------------------------------------------- 3911. external factors evaluation matrix ---------------------------------------------------- 40 11.1 construction steps ---------------------------------------------------- 40 11.2 IFE matrix key ---------------------------------------------------- 4112. TWOS matrix ----------------------------------------------------- 42 12.1 major steps ----------------------------------------------------- 4213. IEM ---------------------------------------------------- 45 13.1 total weighted score ----------------------------------------------------- 4614. intensive strategies ----------------------------------------------------- 4715. stratetic GRID matrix ----------------------------------------------------- 48 15.1 explanation ----------------------------------------------------- 48

16. trend of industry ----------------------------------------------------- 4917. customer value analysis -------------------------------------------------- 50-5318. market plan for new product -------------------------------------------------- 54 18.1 current market ------------------------------------------------ 54 18.2 new market ----------------------------------------------------54 18.3 point of difference -------------------------------------------------- 54

18.4 target market ----------------------------------------------------54 18.5 marketing mix -------------------------------------------------- 54 18.5.1 product -------------------------------------------------- 54 18.5.2 packing --------------------------------------------------- 55 18.5.3 price of product ----------------------------------------------------55



18.5.4 positioning ---------------------------------------------------- 55 18.5.5 placement ------------------------------------------------------55 18.5.6 promotion -------------------------------------------------------5519. financial analysis of care detergent bar ----------------------------------------------------- 57 19.1 income statement for year one -----------------------------------------------------57 19.2 income statement for year two ---------------------------------------- 59 19.3 income statement for year tree ----------------------------------------- 6120. break even units ---------------------------------------- 6321. biblograpy ---------------------------------------- 64

Annexure --------------SPSS (cross tabs)



For whom who created us, fed us, brought us up and gave us

knowledge. Who is the most merciful, most beneficial and most

forgiver. "In the name of God, the Merciful, the Compassionate. Say

(O Muhammad) He is God the One God, the Everlasting Refuge, who

has not begotten, nor has been begotten, and equal to Him is not

anyone." For whom who is more loving and kinder than a mother to

her dear child? For whom who are the First and the Last?

We are very thankful to Mr. Mobbin-ul-Haque at UMT who gave us a

chance to prove ourselves, to gain something, to learn something,

to experience something and test ourselves. We really appreciate

our friend’s valuable suggestions and their initiative in our project.

We ( Waqas, Khubaib, Rehan, Kabir, Haroon) are desperately like to

thank Mr. Mobbin who gave us the opportunity to know the deep

complexities of market.



ذ

1. WHAT NEED IS BEING SATISFIED?

Need

Washing of clothes

Bar soap Detergent

Heavy duty detergent Low foam detergent House hold detergent Loose detergent packed detergent



2.

Introduction to the Proctor and Gamble Private Limited

Established in 1837 in Cincinnati, Ohio USA, P&G serves over 5 billion consumers in 140 countries worldwide. P&G invests US$ 1.77 billion (2000-2001) on research, holds more than 27,000 patents, and has invented many product categories. P&G markets more than 250 brands, has over 106,000 employees globally and worldwide sales of US$ 40 billion. In Pakistan, P&G sells 13 high quality brands to consumers (including shampoos, detergents, soaps, baby care and feminine protection products, Vick products and snacks).

2.1 History of Proctor and Gamble Private Limited

Today, P&G has global operations in nearly 80 countries and markets its brands in more than 160 countries around the world. Operations in Pakistan began in 1989.

1989 1991 1994 1995

Local partnership established.

Camay launched. P&G Pakistan incorporated.

H&S and Olay launched.



Pantene and Safeguard launched. Soap plant acquired.

1997 2000 2001 2004

Ariel and Pert launched. Pampers launched

Always launched.

PuR and Herbal essence launched



2.2 Purpose of P&G

We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.Consumers2.3 P&G Values



o Leadershipo Ownershipo Integrityo Passion for winningo Trust

P&G Brands and P&G People are the foundation of P&G’s success. P&G People bring the values to life as we focus on improving the lives of the world’s consumers.

2.4 Principles of P&G

We show respect for all individuals The interests of the Company and the individual are inseparable We are strategically focused in our work Innovation is the cornerstone of our success We are externally focused We value personal mastery We seek to be the best Mutual interdependency is a way of life

2.5 Product line of P&G

3 Introductions to ARIEL

New Ariel delivers against one of the key Pakistani consumer needs: a detergent that could give spotless cleaning to both colored and white clothes. This is because new Ariel contains a unique double action system, which gets fully dissolved unlike bar



soap. The green speckles penetrate deep into the fabric to help remove tough stains. The blue speckles give shine to your whites and brightness to your colored clothes.

Product Market:

3.1 Product Types and Brands:

P&G markets more than 250 brands, has over 106,000 employees globally and worldwide sales of US$ 40 billion. In Pakistan, P&G sells 13 high quality brands to consumers (including shampoos, detergents, soaps, baby care and feminine protection products, Vick products and snacks).Ariel is the mostly used detergent for high quality in washing clothes as they are using stain free technology. Below are the different types of packing of Ariel.

3.2 Production capacity of Ariel

To know the production of Ariel first of all we have to know the total production of detergent industry. Then we can figure out the total production of Ariel. The industry



production in tones is 220327. And the volume share of Ariel is 18% so simply multiply the percentage with the total production we get.

220327x18%= 39658.86 Tones

3.3 Customer market of Ariel

There are two types of potential customer of Ariel1. customer who use white clothes 2. customer who use color clothes

3.4 Life style and Patterns

The life style pattern of consumer is changing day by day and our product (Ariel) is product-market fit according to this factor.

3.5 Marketing Programs

Advertising and promotional programs

Ariel is using two types of advertising and promotional programs.

Above the line Below the line

Print media news paper

Magazines Television

ATL includes

o Print Media.o News Papers.



3.6 Prices of Ariel

Weight price

1 K.G 135 Rs

400 grams 62 Rs

3.7 Relationships with Whole Sellers and Retailers

The relationship with whole seller and retailer is very good. The entire whole sellers are tied up with the company. The retailers are tied up with the whole sellers. So indirectly company also tied up with the retailers.

4. Detergent industry of Pakistan (in Pakistan)



Product Specification

Stains removing FMCG (Fast Moving Consumer Good) Detergents are available in the market to satisfy two types of conditions. Hand Wash Machine Wash



Production Capacity:

In Pakistan the whole value share of market is of 26 billions of cleaning products.

Total consumption of detergents in Pakistan in Rs. per month is 12 billion.

Locations:

The production plant of Procter & Gamble is in Egypt; there head office is near RC Cola Factory.

The Production plant of Lever Brothers is in Rahim Yar Khan and there distribution office is in Gulberg, near RC cola Factory, opposite to a mosque, Lahore

Major Players:

Ariel Surf Excel Brite Express Bonus Wheel Loose



Volume Share:

Strategic Marketing

Ariel 18%

Surf 17%

Brite 12%

Express 10%

Bonus 18%

Wheel 9%

Loose 16%

21

Volume Share

0%2%4%6%8%

10%12%14%16%18%20%

Series1


Value Share

13.40%12.70%

5.70%4.80%

39%

6%

18.40%

00.050.1

0.150.2

0.250.3

0.350.4

0.45

Series1

Series2

Ariel

13.4 %

Surf 12.7%

Bite 5.7%

Express 4.8%

Bonus 39%

Wheel 6%

Loose 18.4%



Import and Export for last five years:

The production plant of Procter & Gamble is in Egypt. All the detergents are directly imported to Pakistan.

The production plant of Lever Brothers is in Rahim Yaar Khan, its production raw material of detergents is neither imported nor exported.

Raw Material:Basic raw materials for detergents are Linear Alkyl Benzene (LAB)Suffocates, Sodium Sulfate, Sodium Silicate, Bleaching powder, Rock salt, Causticsoda and Soda ash. The demand is on rise in the urban areas due to ease ofapplications and effectiveness.

Production Process:

Today, detergent surfactants are made from a variety of petrochemicals (derived from petroleum) and/or oleo chemicals (derived from fats and oils).

Production Capacity

Colgate-Palmolive is the leading manufacturer of Detergent Powders in the Country with present production capacity of 30,000 MTPY. They are the only manufacturer of Sulfuric acid in the country. The production capacity of Sulfuric acid based on SO3 Gas and Sulfur is 3,600 MTPY. This capacity is not sufficient to meet their present requirement and are importing around 3,000 ton of Sulfuric acid. The country’s total requirement for Sulfuric acid is estimated to be around 20,000 MTPY. Colgate-Palmolive (Pakistan) Ltd. has started work on a new plant to manufacture Sulfuric acid with an investment of Rs 200 million. With this expansion, they would have additional capacity of 20,000 tons of Sulfuric acid, which will be sufficient to meet the country’s demand. This plant can use both Branched Alkyl Benzene (BAB) and Linear Alkyl Benzene (LAB) to produce Sulfuric acid. The installed capacity of detergent of Unilever Pakistan Ltd is 9,000 MTPY. Their actual production is around 12,000 MTPY. The production of detergents in the form of powder, bar and liquid as reported by 66 units is given in table below.



5. Problems Faced by Industry:

5.1 Local Manufacturers:

The biggest problem faced by the industry is by local manufacturers, it’s also the biggest challenge for the industry.

5.2 Disposable Income:

In Pakistan the purchasing power of people is low as compared to developed countries.

5.3 Parallel Imports:

Parallel imports is one of the major problem for the industry, imported detergents are preferred by the people, they prefer their packaging, quality, e.t.c. and people now days has taken it as a status symbol of using imported goods.

5.4 Future Prospects (After WTO):

All the multinational companies believe that WTO will not have on their production as such, but the local manufacturers will surely be influenced by WTO.

Procter & Gamble is not earning any profit from detergents, due to some problems (mentioned in Problems Faced by the Industry), but in future they think that they would be able to earn the profit from detergents.



6. Pest analysis

Pest analysis is the analysis of political, economic, social and technological environment of the company

o The rapid change in the past two decades has affected the industry badly. Different governments with different policies and different benefits have different affects on the industry.

o As the manufacturing trend in the economy has changed from 4.5 to 8.6 during the last five years, also the maximum level reached at the 14.0 percent level. But still no positive and consistent change was seen.

o For the new entrants in the industry there are also some measures set by the government which are not completely in the favor of any investment activity with reference to the detergent industry.

o There are many groups in the country as well which have a very limited approach towards the advertisement policies of the industry. Such groups only perform activities for there own political interest.

o The GDP growth level in the country is very low; therefore the economy doesn’t have sufficient resources to meet the requirements in favor of investors.

o The purchasing power of the consumer in the economy is very low. The per capita income in the economy is not up to the average standards even

o Ariel is endorsed by 7 leading washing machine manufacturers of Pakistan

Factor & Trend Business implications Company response


Political & manufacturing trend in the manufacturing of detergent company shifts their businessLegal economy has changed 4.5 to no more in the country outside the country because of 8.6 For last 5 years govt. taxes.

Economic national income and GDP the infrastructure did not company did not like to do is growing support the industry business in this economic Situation

Social & people now much conscious detergent is now available company creates awareness Culture about branded products on different prices in people about detergent Uses

Company has intense

Technology using latest technology No technology transformation competition for using latest To attract customers technology


7. Porter analysis

7.1 Threats of new entrant:

o In detergent industry the production is on large scale. Here the fixed cost is same whether you produce one unit or thousand. The only thing that matters here is the variable cost. Like the marketing expenses to capture the share of unorganized sector or to get market of loose detergent. The research also requires heavy amount of investment, so barrier exist here.

o All the brands are well known and very mannerly identified by customer. o huge amount of capital is required in detergent industry because all firms are

well organized and expenses to new entrants like marketing and distribution expenses requires heavy investment.

7.2 Bargaining power of supplier

Strategic Marketing

Threat of new entrants

Threat of new entrants

Bargaining Power of customer

Bargaining Power of customer

Bargaining Power of supplier

Bargaining Power of supplier

Threat of substitute products or services

Threat of substitute products or services

Rivalry

Rivalry

27


o The bargaining power of supplier is LOW in detergent industry. Ariel is imported from Egypt and surf excel is assembled here and have supplier in different countries. Bonus, brite, wheel have different suppliers for different ingredients. So the bargaining power of supplier is zero.

7.3 Threats of substitute

The major substitutes for the industry are: bar soap Liquid soap Sawaiyan

7.3.1 Bar soaps

Following are the major brands of soap

Gai soap Ladoo soap Sufi soap

7.3.2 Sawaiyan

Following are the major brands of sawaiyan.

Gai Millan Sufi

7.4 Bargaining power of buyer

The bargaining power of buyer is high in detergent industry because

The detergents are equal in quality and standard for each segmented customers.

The numbers of substitute are in number and have switching cost in negative. Very less difference in price for each segmented customer so switching cost is

either in zero or in negative. Like customers of Ariel have zero switch cost if they switch to surf excel and negative switching cost if they switch to bonus or Brite.

7.5 Current Competitors Jockeying within the Industry:



There is intense competition within the industry to capture the market in terms of SOM. Major Key players in the industry and their SOM are given below:

1. Colgate Palmolive Pakistan…45%2. Procter and gamble ………..17%3. Unilever …………36%4. other………2%

Colgate Palmolive is catering to specified high class customers while Ariel is catering to same class. The technology used here is the stain free.

While bonus and brite total is catering to middle class and vastly used for white clothes.

The other 2% is the unorganized sector of detergent.

8 .Competitor analysis

The competitor analysis is of following key players in detergent industry.



8.1 Unilever Pakistan history:

By far the largest consumer products company in Pakistan, UPL is a part of the consumer products giant Unilever.

UPL was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL manufacturing facility developed.

Today, Unilever Pakistan is a force to reckon with. Its contribution to Pakistan's economic development cannot be overestimated. Now operating six factories at different locations around the country, the company contributes a significant proportion of the country's taxes. It employs a large number of local managers and workers. It provides a pool of well-trained and highly motivated manpower to other segments and has introduced new and innovative technologies into the country.

The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By this time the once dusty and sleepy village was the hub of activities for UPL. A residential estate situated near the factory is the home of UPL employees at Rahim Yar Khan.

8.1.1Unilever Pakistan a glance:

Unilever Pakistan (67% Unilever equity) is the largest FMCG Company in Pakistan, as well as one of the largest multinationals operating in the country.

8.1.2Introducing Unilever PakistanThe company had a turnover of Rs. 18.2 bn (Euro 329 mn) in 2004, and enjoys a leading position in most of its core Home and Personal Care and Foods categories, e.g. Personal Wash, Personal Care, Laundry, Beverages (Tea) and Ice Cream.

The company operates through 4 regional offices, as well as 4 wholly owned and 6 third party manufacturing sites across Pakistan.

8.1.3 Accountable to our stakeholdersSince the time Unilever Pakistan began its operations in 1948, the Company has been closely connected to the Pakistani people and its brands have been an integral feature in their daily lives. In fact, the nature of our business enables our brands to be the pulse and heartbeat of the 155 million people in Pakistan.



This is a huge commitment, which makes us responsible and accountable to all our stakeholders and society as a whole and strengthens our resolve to:

Make a positive difference to the lives of low income consumers Create new opportunities for growth Improve the overall quality of life in Pakistan, by promoting education,

nutrition, health and hygiene.

8.1.4 Unilever Pakistan values

Our adopted values were the result of a company-wide project, which used focus groups across the board to identify the values that were most important, for both sustained company growth, and development on a personal level.

8.1.5 Living our values

The Values Launch marked the culmination of a team journey to identifying the values we want to live by. Even more importantly however, it heralds a Cultural Revolution for Unilever Pakistan, marking the beginning of a new journey towards truly ‘Living our values.’

8.1.6 Impeccable integrity

We are honest, transparent and ethical in our dealings at all times.

8.1.7 Demonstrating a passion for winning

We deliver what we promise.

8.1.8Wowing our consumers and customers

We win the hearts and minds of our consumers and customers.

8.1.9 Bringing out the best in all of us

We are empowered leaders who are inspired by new challenges and have a bias for action.

8.1.10 Living an enterprise culture

We believe in trust, truth and outstanding teamwork. We value a creative and fun environment.

8.1.11Making a better world

We care about and actively contribute to the community in which we live



8.1.17 Market Share of Unilever:

Unilever has 36% Market share in organized sector of detergent industry. Unilever brands are

8.1.18 Surf Excel8.1.19 Wheel

Now we describe it briefly

It might sound strange for a leading laundry brand like Surf Excel to say that dirt is good, but healthy activities involving dirt are essential to development. It's how kids learn express their creativity and it bolsters their immune systems.

8.1.18.1 Dirt is goodSurf Excel is the oldest detergent brand to be present in Pakistan since 1960. We have always believed that dirt is a valuable way to enrich our lives, both young and old. To ensure that everyone, anywhere in the country, can share in this initiative, we're investing heavily in developing a range that suits the pockets of all income groups. This has included launching affordable skis that not only offer the top-clean advantages of Surf Excel, but also reduce the time, physical effort and amount of water needed to wash clothes by hand.

8.1.18.2 Kids on BikesKids on Bikes, the largest activation of its kind was run in the top 6 cities of the country with a vision of bringing the positioning of Modern Parenting to the life for millions of Pakistani and to clearly illustrate the link between getting dirty and kids learning and development.



8.1.18.3 from our range

8.1.18.4 Volume and Value Share of Surf Excel:

Volume share of Surf Excel is 17% in detergent industry and value share of Surf Excel is 12.7% in detergent industry.

Wheel knows that you are most confident when your clothes look, feel, and smell great. That’s why Wheel is committed to the best laundry experience, helping you reveal your true capabilities sporting spotless clean clothes.

Be your positive best

Wheel is synonymous with cleanliness and convenience. Dedicated to its consumers’ complete satisfaction, Wheel is available in two variants: the classic Wheel that removes the toughest stains with the least effort, and the new Wheel Power White that produces the purest of whites without any damage to your clothes, or your hands.

Both variants of Wheel are available in multiple pack sizes to suit the requirements of consumers from all income groups.

Superior results that I and others can see, feel, and smell

The long-running Wheel is renowned throughout Pakistan for its lasting fragrance, and removing the toughest stains with the least labour. With Wheel, washing clothes is no longer a time-consuming chore, leaving you free and energetic to express yourself, reveal your potential, and celebrate who you are.



8.1.19.1 Brand-new White

In 2005, Wheel Power White brought the brilliance of pure whiteness within everyone’s reach by delivering an immaculate clean at par with detergents twice as expensive. Now all our consumers are looking their best, enjoying the benefits of great-smelling clothes that shine white like new thanks to Wheel Power White.

From our range

Wheel 1kg pack Wheel 400g

8.1.19.2.Volume and Value Share of Wheel:

The volume share of Wheel in detergent industry is 9% and the value share of Wheel in detergent industry is 6%.



8.2

8.2.1 Softlan Fabric Softener Launch - October 2003 As part of the company's strategy of introducing second generation product concepts, Softlan, the fist fabric softener manufactured in Pakistan, was launched. Its test launch is expected to provide the company with first-to-market benefits in a segment expected to have significant potential in the future.

The product is currently in the trial stage and affordable sachet packs have been launched in an attempt to gain acceptance from various socio economic segments.

8.2.2 Colgate Re launch - October 2003 Leveraging our brands through the introduction of innovative new products and the restaging of our existing brands is a key determinant of our strong competitive position.

Colgate toothpaste is the main driving force behind the Oral Care business, contributing towards consistent and profitable growth. Colgate Maximum Cavity Protection toothpaste, a key equity driver, was relaunched last year with a new improved germ fighting formula containing micro particles of calcium and active fluoride that help keep teeth healthy and strong.

The re launch was accompanied with a hard hitting advertising campaign highlighting the importance of protection against cavities.

Colgate works hand in hand with the Pakistan Dental Association (PDA) to leverage its quality perceptions and oral health awareness in the masses. This is one of the many consumption building activities which have been pioneered by Colgate in Pakistan.



8.2.3 Brite re launch – April 2004

Since its introduction in 1981, Brite has become a powerful detergent brand with which consumers have a long standing familiarity. In April 2004, a new improved version of Brite, reinforced with an innovative formulation designed for enhanced stain removal and dirt cleaning action, was launched. Brite is the only detergent in Pakistan which has the benefit of colour brightness and fibre protection.

8.2.4 Colgate Herbal White Launch – July 2004

Colgate Herbal White was launched in July 2004. It safely polishes your teeth to help restore their natural whiteness and shine. It's unique formula combines the expert science of Colgate with nature's best ingredients. Colgate Herbal white contains: Lemon extracts; to remove dirt Saunf; for freshness in breath Fluoride and Calcium; for strong, healthy teeth Pearl Powder; for shining whiteness.

8.2.5

The protection of the environment and the health and safety of our customers, our people and the communities in which we live and operate is an integral part of Colgate-Palmolive's mission to become the best truly global consumer products company. We are committed to conducting ourselves in a socially responsible manner and to keeping our business operations environmentally sound. It is our worldwide policy to manufacture and market our products and operate our facilities so that we comply with or exceed applicable environmental rules and regulations. The health and safety of our customers, our employees, and the communities in which we operate must be paramount in all we do.

These concerns have been translated into the following guiding principles:

8.2.5.1Products Colgate-Palmolive will provide the public with safe and effective products and will strive to produce products that have the lowest practical impact on the environment.

8.2.5.2Packaging To reduce the impact of our product packaging on the environment, we will work to improve the environmental compatibility of all our packaging materials. Colgate endorses the worldwide hierarchy of solid waste management: source reduction; recycling (including reuse); incineration; and land filling.

8.2.5.3Facilities Colgate-Palmolive is committed to the health and safety of our employees and the communities in which we operate, as well as the protection of the environment. We



will establish and maintain programs for the operation and design of our facilities that meet or exceed applicable environmental, health and safety laws and regulations.

8.2.5.4Business Colgate-Palmolive will consider environmental, health and safety issues in all significant business transactions, including acquisitions, divestitures, discontinuance of operations, and entry into joint ventures. We will also act in a responsible manner with respect to the environmental protection of the lands under our management and ownership

8.2.6

Our business being consumer products based, our success depends on the satisfaction of our consumer. This can only be achieved by developing a clear understanding and awareness of what the consumers want from our products. That's why your input is so valuable to us, and you can be sure that we will listen.

The Consumer Affairs department is always available to address any of your comments, suggestions or concerns. Our commitment to our consumers is strong with the guarantee that your voice will be heard within Colgate.

8.2.7

Colgate people around the world have built a reputation as a successful company with the highest ethical standards. Through living our values of Caring, Global Teamwork, and Continuous Improvement, and adhering to the highest principles of integrity, honor, and concern for the environment and others, we seek to:

Provide safe and quality products of value to consumers Increase shareholder value Offer opportunities for personal and professional growth to all Colgate people Fulfill our corporate social responsibilities as a member of the global

community

8.2.8Fabric care:

Our complete line of detergents caters to the needs of every segment with a promise to keep your fabrics clean and fresh. Our brands are household names that have earned the confidence and trust of consumers all over Pakistan.



8.2.9 Brite Total8.2.10 Express Power8.2.11 Bonus

8.2.9.1 Brite Total

Launched in the year 1981, Brite Total is one of the leading branded detergents in the Pakistani market. Over the years, Brite has evolved together with the needs of the Pakistani housewife in order to better cater to her wants and lifestyle.

This premium quality detergent is now even better than before with the inclusion of globally recommended ingredients of Stain Lifters and Oil Eaters. The combined action of these ingredients lifts the toughest of stains of oil and grease in just 1 wash. Besides delivering unmatched performance on tough stains, Brite’s new

Formulation makes the colors even more vibrant while continuing to protect the fabric of the clothes.

It even has the seal of approval from some of the top fabric manufacturers of the country including Al Karam Textiles, Bonanza Garments, United Colors of Benetton and Mohd Farooq Textiles Mills Limited.

8.2.9.1.1 Value and Volume share of Brite:

Value share of Brite in detergent industry is 5.7% and the volume share of Brite in detergent industry is 12%.



8.2.9.2 Express Power

Express is the only brand in the popular price segment of laundry detergents. It has a loyal consumer base and from the year 1993, Express has effectively contributed towards the leadership of Colgate-Palmolive Co. in the overall detergent market. The quality and price fit perfectly into the consumer needs and affordability criteria.

8.2.9.2.1 Value and Volume share of Express Power:

The value share of Express in detergent industry is 4.8% and the volume share of Express Power is10%.

8.2.9.3 Bonus:



Bonus is the largest selling detergent in Pakistan, contributing towards the industry leadership of Colgate-Palmolive in the category. It is an affordable value detergent, which offers superior cleaning performance and stain and dirt removal as compared to traditional laundry aids. It is replacing the use of laundry soaps and loose detergents and helps in shaping up the penetration in downscale rural markets.

8.2.9.3.1 Volume and Value share of Bonus:

The volume share of Bonus in detergent industry is 18% and the value share of Bonus is 39% in detergent industry.

8.2.9.3.2 Prices of bonus

Weight price

1 K.G 37 Rs.

75 grams 15 Rs.



9. COMPETITIVE PROFILE MATRIX: The competitor profile matrix identifies the firm’s major competitors and its

particular strengths and weaknesses in relation to a sample firm’s strategic

position.

The critical success factors in the CPM include both internal and external

issues.

In a CPM, the ratings and total weighted scores for rival firms can be

compared with the sample firm.

Surf ExelBonus Brite

CRITICAL SUCCESS FACTORS:- WEIGHTS RATING SCORE RATING SCORE RATING SCORES

quality 0.4 5 2 31.2 2 0.8

Price 0.1 3 0.3 50.5 5 0.5

Availability 0.1 3 0.3 50.5 2 0.2

Promotional program 0.05 3 0.15 50.25 2 0.1

Good will 0.16 3 0.48 30.48 2 0.32

Packing 0.05 4 0.2 30.15 2 0.1

Distribution network 0.02 3 0.06 50.1 2 0.04

Washing machine 0.08 2 0.16 40.32 3 0.24

Ingredients 0.02 4 0.08 30.06 3 0.06

Raw material supply 0.02 3 0.06 40.08 3 0.06

TOTAL 1 3.793.64 2.42

The comparative analysis provides important internal strategic information



9.1 EXPLANATION:

Just because Surf Exel receive 3.79 rating, Bonus receive 3.64 score and third one that

has 2.42 in a competitive profile matrix. So it shows that overall Surf Exel is working

better as compare to other competitors Bonus and Brite.

Numbers reveal the relative strengths of firms, but their implied precision is an

illusion. Numbers are not magic. The aim is not to arrive at a single number, but

rather to assimilate and evaluate information in a meaningful way that aids in decision

making.



10. INTERNAL FACTOR EVALUATION MATRIX

For conducting internal strategic management audit IFE is constructed.

It summarizes and evaluates the major strengths and weaknesses in the functional areas (Management, Marketing, Finance, Production, Research and Development, and Management Information system) of the business.

But here we are interested in marketing according to the concerned course. This whole technique is based on intuitive judgments. Constructed in 5 steps

10.1 IFE MATRIX CONSTRUCTOIN STEPS

List down the key internal factors. Use a total of from 10 – 20 internal factors

including Strengths and Weakness.

Assign Weights to each factor that range from 0.0 to 1.0.

Assign a 1 – 4 rating to each factor to show whether the factor represents

major strength (rating =4) minor strength (rating=3), major weakness (rating

=1) or minor weakness (rating =2)

Multiply rates by weights to get weighted score

Sum the weighted score to get total weighted score



10.2 IFE MATRIX: -

KEY FACTORS WEIGHTS RATINGWEIGHTED SCORES

STRENGTHS: Quality product 0.2 5 1Good will 0.04 3 0.12Backward Integration 0.05 2 0.1Availability 0.04 4 0.16Advanced technology 0.01 3 0.03Packing 0.01 3 0.03Advertisement 0.1 2 0.2Trust of washing machine 0.05 3 0.15Total of strengths 1.79 WEAKNESSES:High price 0.3 4 0.12Less segmented 0.05 3 0.15Less profit 0.1 4 0.4Image for white clothes 0.03 4 0.12Dangerous for skin 0.02 2 0.04 Total of weakness 0.83TOTAL 1 2.62

10.3 EXPLANATION:

As the weighted score 2.62 is above average that is 2.5.so it show a strong internal position. And also that this renowned product (Ariel) is above average in its overall strengths. Its strengths are enough to overcome major weakness which is a good sign for Ariel in the path of success.



11. EXTERNAL FACTOR EVALUATION MATRIX

It summarizes and evaluates economic, social, cultural,demographic,environmental,

political,governmental,legal, technological, and competitiveinformation.Constructed

in 5 steps

11.1 EFE MATRIX CONSTRUCTOIN STEPS

List down the key external factors. Use a total of from 10 – 20 external factors

including Opportunities and Threats that affect the firm an its industry.

Assign Weights to each factor that range from 0.0 to 1.0.The weights indicates

the relative importance of that factor in the firm’s industry.

Assign a 1 – 4 rating to each factor to show how effectively the firm’s current

strategies respond to that factor

If rating =4 the response is superior

If rating =3 the response is above average

If rating =2 the response is average

If rating =1 the response is poor

Rating is company based whereas weights are industry based.

Multiply rates by weights to get weighted score

Sum the weighted score to get total weighted score



11.2 EFE MATRIX: -

KEY FACTORS WEIGHTS RATINGWEIGHTEDSCORES

OPPORTUNITIES

Manufacturing trend 0.05 4 0.2Per capita income 0.15 5 0.75Technological change 0.15 4 0.6Strong position 0.05 2 0.1Less import duty 0.03 4 0.12Life style pattern 0.02 3 0.06Total of opportunities 1.83

THREATS

Purchasing power 0.1 5 0.5Terrorism 0.05 2 0.1Strong competition 0.3 4 1.2Decrease in sales 0.05 2 0.1Less market share 0.05 4 0.2Total of threats 2.1

TOTAL: 1 3.93

EXPLANATION:

The total weighted score is above average that is 4.43.This is a very good score. It

shows product efforts to pursue strategies that capitalize on external opportunities and

avoid threats.

As it deals in many projects like less import duty, per capita which are good

opportunities for Ariel in future and it will surely reduce major threats which are

currently creating many hurdles in the path of success of achieving good goal that is

to maximize profit.



12. TOWS MATRIX

12.1 Major steps:

List the firms major external opportunities

List the firms major external threats

List the firms major internal threats

List the firms major internal weaknesses

Compare the product’ internal strengths with external opportunities and

forming the SO strategies.

Compare the product’s internal weaknesses with external opportunities and

forming the WO strategies.

Compare the product’s internal strengths with external threats and forming

the ST strategies.

Compare the product’s internal weaknesses with external opportunities and

forming the SO strategies.



12.2 TWOS Matrix

S S1. S6. S2. S7. S3. S8. S4 S5.

W1. W2. W3. W4 W5

O1. O2. O3. O4. O5. O6.

Match S-O

S1 – O4 S6 – O1 S2 – O4 S7 - __ S3 - O5 S8 – O6 S4 - ___ S5 – O3

Conversion W-O

W1 – O2 W2 - O3 W3 - O6

T1. T2. T3. T4. T5.

Match S-T

S1 – T1 __ – T2 S2 – T3 S7 – T4

New creative strategy


IFE

EFE

W:

Opp:

T:


13. THE INTERNAL AND EXTERNAL MATRIX(IE)

THE IE Matrix is based on two dimensions. The IFE total weighted score on x- axis

and the EFE total weighted score on y- axis. The IFE matrix and EFE matrix for each

division of the organization should be constructed. On the x- axis of the IE matrix, the

IFE total weighted score of 1.0 to 1.99 represents a weak internal position; a score of

2.0 to 2.99 is considered as average; and a score of 3.0 to 4.0 is strong. Similarly, on

the y- axis, an EFE total weighted score of 1.0 to 1.99 is considered low; a score of

2.0 to 2.99 is considered as medium; and a score of 3.0 to 4.0 is high

The IE MATRIX can be divided in to three major regions that have different strategy

implications.

First, the total fall into cells I, II, IV, can be described as GROW AND BUILD.

Second, the total fall in to cells III, IV, VII can be managed as HOLD AND

MAINTAIN.

Third, the total falls in to cells VI, VIII; IX can be described as HARVEST OR

DIVEST



13.1 THE IFE TOTAL WEIGHTED SCORES:

Strong Average weak 3.0 to 4.0 2.0 to 2.99 1.0 to 1.99 4.0 3.0 2.0 1.0

4.

0

HI

GH

3.0 TO 4.0

3.0

MEDIUM

2.0 TO 2.99

2.0

LOW

1.0 to 1.99

1.0

THE EFE TOTAL WEIGHTED SCORE

Strategic Marketing

III × III

IV V VI

VII VIII IX

54

THE

EFE

TOTA

L

WEIG

HTED


The total lie in GROW AND BUILD.

STRATEGIES:

14. INTENSIVE STRATEGIES:

Market Penetration

Market Development

Product Development



15. Strategic GRID matrix

The strategic group map shows us where r we standing and where is the space vacant

to go ahead. Let’s look at the following strategic group map by taking R&D and

Quality as variables and we stand.

15.1 Explanation

By taking the complete snap shot of strategic group map we concluded that we (Ariel) and surf Exel lies in the same spot while the major market share holder bonus is in medium spot.

Strategic Marketing

Quality

High R&D

Low

High Ariel, Surf Excel

Brite, Bonus, Express Power

Wheel, non brand detergent

56

Medium


16. TREND OF THE INDUSTRY

Consumers prefer soap as compare to detergent. Therefore advanced technology could play a major role for the usage of detergent.

The advancement of technology is making detergents industry more value added.

Major share of market lies with the local manufacturer like bonus and surf Exel.

The growth rate of demand of detergent is increasing day by day due to the change of life style pattern. The use of washing machines is playing a major role here. And in the industry Ariel has the good trust of washing machines.

Those firms who are preparing detergent locally has less price due to no import duty. The import duty is only on ingredients, which is less than packed detergent. (like Ariel is imported with packing)

In present scenario where customer is the king there is the need to minimize the price according to economic condition of Pakistan. And that’s why bonus has the major market share.



17. Customer value analysis

Below is the result of CVA that has been produced after the conduction of 50 samples from different location, gender, and income level individuals.

From 50 random samples 6% people are those who use detergent for the cleanness of clothes, 16% are those who use detergent for the purpose of shine, 24% are those who uses detergent for the easy to use, 6% are those who mention other things and 14& who don’t use the detergent.

24% people who use detergent powder have income less than 5000, 12% between 5000-10000, 16% between 10000-15000, 14% between 15000-20000, 20% lies in above 20000 salary.

18% people live in gulberg who use it, 12% in model town, 20% in ichra, 18% in allama iqbal town, 18% in town ship.

For the cleanness of clothes 18% have less than primary education, 6% primary to metric, 10% metric to graduation, and 10% graduation and above.

For the better shine in clothes 6%, 4%, 4% and 8% according to above pattern of education level.

For easy to use 6%, 8%, 4%, and 8% according to above pattern of education level.

8% are those people who mentioned other things. Preference factor for the selection of brand

People who prefer availability factor 6% live in gulberg, 4% live in model town, 4% live in ichra and 4% live in town ship.

People who prefer price factor are 6%, 4%, 2% and 4% according to te above pattern.

For packing the percentage is 4, 4, 6, 2, and 2. For the ingredients the percentage is 2, 2, 2, 8, and 4. For quality the percentage is 2, 6, 8, 2, and 4.

Value given by respondents to price while purchasing the detergent (respondents asked by their income level).

26% persons ranked price as very important factor who salary below 5000.



16% people ranked price as some what important and have salary between 5000-10000.

18% ranked as important and have income level between 10000-15000 18% ranked as less important and have income level between 15000-20000 22% ranked price as unimportant and have income level above 20000.

Importance given by respondents to packing wile purchasing the powder (data taken on the educational level.

Persons who rate packing as very much important have the following percentages. 12% have less than primary education, 6% primary to metric, 4% metric to graduation and 4% are above graduation.

Persons who rate packing as some what important have the following percentages. 2% have less than primary education, 2% primary to metric, 4% metric to graduation and 8% are above graduation.

Persons who rate packing as important have the following percentages. 2% have less than primary education, 6% primary to metric, 2% metric to graduation and 8% are above graduation.

Persons who rate packing as less important have the following percentages. 6% have less than primary education, 2% primary to metric, 2% metric to graduation and 8% are above graduation.

Persons who rate packing as very much important have the following percentages. 8% have less than primary education, 2% primary to metric, 6% metric to graduation and 6% are above graduation.

Respondents gave answer to different types of detergent they use according to their income level. 6, 10, 6, 4 and 8 percent are those persons who use heavy duty detergent and

have income level below 5000, between 5000- 10000, 1000-15000, 15000-20000 and above 20000 respectively. 12, 4, 4, 4 and 10 percent are those persons who use dish washing detergent

and have income level below 5000, between 5000- 10000, 1000-15000, 15000-20000 and above 20000 respectively. 6, 6, 6, 4 and 8 percent are those persons who use house hold detergent and

have income level below 5000, between , 1000-15000, 15000-20000 and above 20000 respectively.

2, 2, 2, 4 and 8 percent are those persons who mention any other detergent and have income level below 5000, between

5000- 10000, 1000-15000 and15000-20000 respectively.Quality respondents consider while buying detergent powder data taken on their educational level

12, 6, 4 and 4 percent people rate quality as very much important while buying the detergent powder and have less than primary, primary to metric, metric to graduation and above graduation education level respectively.



2, 2, 4 and 8 percent people rate quality as some what important while buying the detergent powder and have less than primary, primary to metric, metric to graduation and above graduation education level respectively.

2, 6, 2 and 8 percent people rate quality as important while buying the detergent powder and have less than primary, primary to metric, metric to graduation and above graduation education level respectively.

6, 2, 2 and 8 percent people rate quality as less important while buying the detergent powder and have less than primary, primary to metric, metric to graduation and above graduation education level respectively.

8, 2, 6 and 6 percent people rate quality as unimportant while buying the detergent powder and have less than primary, primary to metric, metric to graduation and above graduation education level respectively.

Value given to packing while purchasing powder data taken on gender.

24% male and 2% females gives packing as very much important factor, 12% and 4% to some what important, 16% and 2% to important, 14% and 4% to least important, 20% and 2% gave unimportance to packing.

Respondents gave importance to soap and detergent on their educational level

86% people say detergent produce better result as compared to soap. Out of this 26% have education level below primary, 16% primary to metric, 16% metric to graduation and 28% have education level above graduation.

14% people say soap produce better result as compared to detergent. Out of this 4% have education level below primary, 2% primary to metric, 2% metric to graduation and 4% have education level above graduation

Response of respondents to quality while purchasing detergent data is taken on their occupation level

26% respondents who are govt. servant rate quality as much important factor, 16% private employees rate it as some what important, 18% students and business men rate it important and 22% rate quality as least important who mentioned any other class.

Different types of brands used by respondents on different family income scale.

All income level people (below 5000, 5000-10000, 10000-15000, 15000-20000 and above 20000) used Ariel and they have following percentages. 6, 4, 6, 4, and 10 percent.

Express is used by below 50000, 10000-15000 and 15000-20000. The percentages are 6, 2, 6.



Surf Exel is also used by each family income responded and have 2, 4, 4, 6, 10 percentages.

Bonus is also used by each income level and have a symmetry of 2&.

Selection of selected brand among the high price high quality, low price low quality, low price low quality and low price with high quality.

12% people rate Ariel, 2% rate express, 8% rate surf Exel and 4% rate any other detergent as high price high quality.

6% people rate Ariel, 2% rate express, 4% rate surf Exel and 2% rate any other detergent as high price low quality.

8% people rate Ariel, 2% rate express, 4% rate surf Exel and 2% rate any

other detergent as low price high quality. 6% people rate Ariel, 8% rate express, 10% rate surf Exel, 4% rate any

other detergent, and 6% rate bonus any other detergent as low price low quality.



18. Marketing plan for new product

Below is the whole description of three year marketing plan for detergent bar (new product). This includes 4 P's or 4 C's (the new terminology used in marketing rated as marketing mix) and the financial analysis of the new product.

18.1 Current market

The product line of P&G will augment and the bar will bring innovation and cater the uplifting social changes in the environment due to bad economic factor.

18.2 New market

In the first year the product will launched in the rural areas. At the end of year one the company will introduce the product in the urban areas only in metropolitan cities.

18.3 Point of difference

The new product has uniqueness in its self because the product is new in Pakistan. The product has already been launched in India in 1988. The product was market fit depending on only two factors that is the economic condition of the concerned country and the social factor that plays a major role to make the product successful. Here in Pakistan the scenario is same and suits to the social and economic condition.

18.4 Target market

The target market of care detergent bar will be those people who have low income but want high quality. As in our CVA most of the respondents rate price as most valuable thing and want high quality with low price.



18.5 Marketing Mix.

18.5.1 Product

The product will be named as care detergent bar. There will be two types of packing of the product. The single detergent bar will be weighted 200 grams.

1. Single bar (for small family or low income level people) 200 grams.2. Family bar containing 3 bars (for big families) 400 grams.3. Economy bar containing 4 bars (for saving conscious people) 600 grams.

18.5.2 Packing

The first one will pack in one packet The family bar will be packed in packing like the OPAL soap packing.The economy pack will be packed similarly.

18.5.3 Price of the product

The price of bonus is 37 rupees. So the per gram price is 0.037 = 37/1000. Our major focus is on bonus that has the most volume share of the market. But for the value share it also comes bonus so the major competitor is bonus. The price of detergent bar will be 0.035 per gram. So the single bar will price to consumer at 7 rupees. 200 grams*0.035=7. 18.5.4 Positioning

The positioning of the product will be low price high quality. The positioning of detergent powder is merely based in the usage of washing machines or u can say easy to use or according to the new trend. But here the product will be positioned as " love for family" the chosen thing will justify the product 100% based by the social factor. As most households used the soap in order to show love to their husband and children.

18.5.5 Placement (Distribution)

The distribution channel will operate from major cities of Pakistan. That will cover the rural areas around them

18.5.6 Promotion30 percent of sales will be allotted to promotion of newly launched detergent

bar to create awareness in the minds of customers.



Electronic Media:

50% of advertisement budget should be allocated to electronic media.Rs.

Geo T.V 100000 per minute (prime time)PTV 175150 per minute (prime time)World Call cable network 2000 per minute Total 277150 per minute

Print Media:

50% will be allotted to print media.

Particulars Rs.Jung news paper- main page (4*4) c.m 100000Daily times – main page (4*4) c.m 135000Total 235000Source Haroon Irshad Sulehri Asst. marketing manager

Saiha communication



19. Financial analysis of Care detergent bar

19.1 Income statement for year one.

Let’s assumed that 100,000 thousands total bars will be sold in one month then total sales will be

Care detergent barIncome Statement

For the Year Ended December 31, 2007

Particulars Note Rs. Rs.

Sales 1 8400000

CGS 2 1296000

G.P 7014000

Indirect expenses

Admin.expenses 800000

Selling expenses 4 4800000

General expenses 3 55000

5655000

NOPBT 1359000

Taxation 5 407700



NOPAT 951300

Notes (for year one)

N-1

1200000* 7 (price of standard unit) = 8400000 total sales (in Pak Rs.)

N-2

Cost of Goods Sold

Direct material 1200000M.O.H 960000Total 1296000N-3

General Expenses (Pak Rs.)Stationary 10000Electricity 15000Telephone 20000Misc. 10000Total 55000

N-4

Advertising expenses 30 second add on geo T.V ones a week = (48*50000) = 2400000 Add on Jung news paper 4*4 inch in Sunday paper twice a month = (24*100000) = 2400000

N-5 Taxation 1359000*30= 407700



19.2 Income statement for year two

Let’s assumed that 1, 50,000 thousands total bars will be sold in one month then total sales will be




Sales 1 12600000

CGS 2 3240000

G.P 9360000

Indirect expenses




5655000

NOPBT 3705000

Taxation 5 1111500

NOPAT 2593500




N-1

1800000*7 = 12600000 total sales (in Pak Rs.)

N-2

Cost of Goods Sold

Direct material = 1800000M.O.H = 0.8*1800000= 1440000

N-3


N-4

Advertising expenses 30 second add on geo T.V ones a week = (48*50000) = 2400000 Add on Jung news paper 4*4 inch in Sunday paper twice a month = (24*100000) = 2400000

N-5

Taxation amount = 3705000*30%=



19.3 Income statement for year three

Let’s assumed that 2, 00,000 thousands total bars will be sold in one month then total sales will be




Sales 1 16800000

CGS 2 4320000

G.P 12480000

Indirect expenses




6060000

NOPBT 6420000

Taxation 5 1926000



NOPAT 44940000


N-1

2400000*7 = 16800000 total sales (in Pak Rs.)

N-2

Cost of Goods SoldDirect material = 2400000M.O.H = 1920000N-3


Advertising expenses 30 second add on geo T.V ones a week = (48*50000) = 2400000 Add on Jung news paper 4*4 inch in Sunday paper twice a month = (24*108000) = 2592000.

N-5

Taxation amount = 6420000*0.3=



20. BREAK EVEN UNITS

Rs.Sales 16800000Variable Cost 12480000Contribution Margin 4320000Fixed Cost 4320000Net income 0

(Break Even Point)

Break Even Units = Fixed Cost/price per unit – variable cost per unit= 4320000/7 – 3 = 4320000/4= 108000 units.



21. Bibliography

Federal bureau of Statistics government of Pakistan

www.Statepak.gov.pk

www.unilever.com

www.P&G.com.pk

www.colgate.com.pk

Stock exchange

General stores

Economic survey of Pakistan

www.finace.gov.pk

www.ask.com

Sindhu J. Bhattacharya P&G spoke person. New Delhi


http://www.ask.com/

http://www.finace.gov.pk/

http://www.colgate.com.pk/

http://www.unilever.com/

http://www.Statepak.gov.pk/


We are very thankful to Mr. Salman who gave us his precious time for the favor of our research and due to him we could able to complete this project successfully

Mr. Salman Marketing manager P&G Guru Mangat road Gulberg Lahore


p & g

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