‘Our aim is to passionately deliver better solutions in cleaning and health & personal care to customers and consumers, wherever they may be, for the ultimate purpose of creating shareholder value.'
This vision defines both our purpose and our values as a company and encompasses our commitment to product quality and safety, customer service, innovation, global reach and corporate social responsibility.
Our core values are a set of guiding principles through which we think, behave and conduct our business in order to deliver on our vision; they are
* ACHIEVEMENT - Aim high and then deliver
* TEAMWORK - Individuals play the game, but teams win the championship
* ENTREPRENEURSHIP - The dreamer explores the idea; the entrepreneur goes ahead and makes it happen.
* COMMITMENT - A passionate personal determination to deliver
CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY
HealthGuard views corporate social responsibility (CSR) and sustainability as one and the same, and is committed to moving its business towards greater sustainability across the economic, social and environmental dimensions of its activities. We believe that a more sustainable business will not only better fulfill our responsibilities to society but also contribute to delivering our vision of better consumer solutions and greater long-term shareholder value. HealthGuard has in place a Corporate Responsibility Framework comprising of our Code of
Business Conduct and specific policies, control arrangements and reporting. This framework governs how we act in conducting the Company's business.
STRATEGIES AND OBJECTIVES
HealthGuard's objective is to generate above industry average profitable growth by:
* Focusing on building the power brands in high growth categories
* Geographic expansion of the portfolio
* Continuous innovation
* Higher investment in brand building
* Margin expansion and cash conversion to fund reinvestment in core brands and to grow returns to shareholders.
* Selective add-on acquisitions
* Healthguard soaps
* Healthguard handwash
* Healthguard prickly powder
MARKETING STRATEGY SITUATIONAL ANALYSIS
Soap is a major consumable item and there is a huge demand and potential in this market particularly the anti - bacterial segment. The anti bacterial market segment has grown year on year by more than 11 % percent due to increased consumer awareness and education on the benefits of anti-bacterial soaps. As a result, opportunity is growing bigger every year.
Some uncontrollable situational factors that are faced by the HealthGuard soap are as follows
Although the demand for HealthGuard products is very high but when we talk about the demand of the HealthGuard soap the demand is growing in the antibacterial category. The market share of HealthGuard soap is more than 10 % in Pakistan out of the Rs 11 billion soap market.
There was no direct competitor of HealthGuard soap at the time of launching but today; two brands are directly competing HealthGuard. Safeguard (P & G) and Lifeboy (Unilever) are direct competitors Legal/political
These are the uncertainties that are extremely variable in the political conditions of Pakistan. Constant political instability does affect the company in terms of building new relations with new governments all the time.
Social and Cultural factors
The company has to be very careful in the implementation of its promotional campaigns, since the social cultural environment of Pakistan is very conservative and any suggestive advertisements usually face a lot of negative reactions on the part of the consumer.
Like the government regulations and technological advancements have had no significant effect on the product and the company.
In the mind of the consumer, anti-bacterial soap should have the following:
A product whose core function is to clean skin, making it softer and smoother, while leaving a feeling of freshness behind. Good perfume and foam combine to deliver this freshness experience.
The key functional benefit is that it removes dirt, oiliness and other impurities from skin.
Germs are not top-of-mind for the average consumer, but are a function of dirt and disease. Research led us to know that consumers are largely unaware of the diverse nature of germs. They just know that Germs are the bad guys. They don't know that there are different types of germs.
Different antibacterial competitors are trying to own a higher ground by building on already present germ-kill equity. Like HealthGuard has given it's slogan of “Health and hygine always first”, including bacteria and viruses”
While safeguard is focusing on ‘Day and night continuous protection” which is more powerful in the mind of the consumer.
Lifeboy is following the “germ buster's” strategy.
The target market for HealthGuard soap is all households (primarily mothers) who can afford buying soap and who want to fulfill an everyday need (primarily bathing) that provides them and their family with a 100% anti-bacterial solution - complete protection from all germs/ bacteria and cleanliness from dirt / grime.
MARKET DEMOGRAPHICS (GEOGRAPHIC, DEMOGRAPHICS, BEHAVIORAL FACTORS)
The target markets analysis of HealthGuard soap is:-
Include almost all Urban; suburban; small town; and some rural areas of Pakistan
Gender Male; female mainly mothers
Age 18years to 45 years
Mainly targeting middle class and upper middle class in urban and sub-urban areas - primarily cities and surrounding areas. Rural market penetration is limited and is primarily driven through indirect channels (e.g. Wholesale)
Young housewives and mothers who care about the health and well being of her family.
MARKET NEEDS (QUALITY CRAFTSMANSHIP, INNOVATIVE DESIGNS, CUSTOMER SERVICE)
HEALTHGUARD is conscious of the changing consumer needs and trends and is constantly conducting market research to assess opportunities and threats. Quality of the product is the number 1 priority as well as research on new variants. The next planned variant is HealthGuard Herbal soap. In addition, a new customer hotline has also been added to get instant feedback on product use, problems and activities.
The soap market has been most affected by the recent sky rocketing price of palm oil which is the primary ingredient of soap noodles. This has caused the average price of soap noodles to increase by 20% - 25 % forcing producers (also HEALTHGUARD) to increase prices of their soap products by almost as much so as not to put excessive pressure on their margins. This will undoubtedly result in decrease in soap sales volumes (higher prices means less consumer off take) as well as disruption in the market due to several quoted prices of the same product available resulting in dissonance in the wholesale and retail markets as well as confusion in consumer buying decisions at the point of sale.
The overall soap market is growing by 10 % while the antibacterial segment is growing by 11%. Hence, there is a lot of potential in the market for growth and additional brand penetration and brand building.
* The brand's Germ-kill heritage (brown liquid) is seen as strong and adds on trustworthiness
* Excellent for treating skin irritations, cuts/bruises and seasonal applications
* Brand comes from a reputable (old) company
* Loyal following of ‘Original'
* Not perceived as an ‘everyday soap' due to:
* Smell - strongly associated with hospitals
* Is harsh on skin - makes skin dry
* Does not make satisfying lather
* Shape not user-friendly
* No awareness of variants
* No perceived as a dynamic, innovative and contemporary brand
* Low Top-of-Mind recall: Communication not engaging
Leverage the powerful brand equity associated with the HealthGuard Brand to make HealthGuard Soap an everyday use proposition.
Other main players in the antibacterial soap category (Safeguard and Lifebuoy) have positioned their brands for everyday use against bacteria - HealthGuard soap positioning lacks that desired everyday benefit and experience!
Here is a brief description about the antiseptic soap producing companies
HealthGuard soap is a brand of HealthGuard Pak Ltd and it has been operating in Pakistan since 1997 after taking over from John & Simons. Market share of HealthGuard soap in the soap market is around 10% at the end of December 2009.
The HealthGuard soap users have the perception that it is effective in germ kill with the medicinal smell of HealthGuard liquid which is used for Bruises & Cuts, Insect bites, washing of clothes, Mopping of floors, Shaving, Bathing and Cleansing of skin and used mostly during summers. Its functional core need is incidental antibacterial.
Safeguard® is the No. 1 antibacterial soap worldwide; it is the only bar soap registered with the FDA. Safeguard is designed to provide excellent germ protection for the whole family. Safeguard, launched in 1995 by Procter & Gamble has set new standards for defining "health & hygiene" in Pakistan. It is an anti-bacterial soap that provides germ protection for twice as long as ordinary soaps making it the doctors' number 1 recommended choice throughout the world. The market share of safeguard is the biggest in antiseptic soap category with 22 % share. Safeguard users have the perception that it is providing them with Continuous Germ Protection, Gentle on skin, Smells Good, has a easy to grasp shape and the functional needs portrayed is of an everyday soap with germ protection.
Lifebuoy is one of Unilever's oldest brands. Lifebuoy Royal Disinfectant Soap was launched in 1894 as an affordable new product in the UK, to support people in their mission for better personal hygiene. Lifebuoy soap aims to provide affordable and accessible hygiene solutions that enable people to lead a life free from hygiene related worries, everywhere, regardless of the boundaries of nationality, religion and socio-economic status. Lifebuoy has a market share of 16 %. Lifebuoy users see the soap as a decent quality, affordable germ protection agent containing carbolic acid as its germ protection agent and its functional need portrays that it is an everyday soap with germ protection for the middle and lower middle class.
Based on the competitive analysis, HealthGuard found out that there are a lot of opportunities which will help the New HealthGuard soap capitalize a greater market share. New HealthGuard Soap's ability to gain real consumer insights, to launch products and variants that consumers actually want, supported by insightful advertising that talks to consumers in their own language, are all vital elements, which will lead to success of HealthGuard and the New HealthGuard soap as a brand.
* Extensive Market Growth
* Market Penetration and Market Expansion.
* Achieving High Gross Margins
* High Customer Services and Satisfaction
* New Product Development and Entrepreneurship.
The product is offered in 5 variants (2 sizes - 115 gm and 70 gm):
• Original: Contains essence of the HealthGuard antiseptic solution
• Skincare: Contains moisturizer for Skin care.
• Active: Contains Active cleaning agent for Active cleaning.
• Fresh: Contains Fresh scent for a Fresh feeling.
• Sensitive: Contains Skin-friendly ingredients for Sensitive skin.
Positioning Against Competitors
HealthGuard is positioned as a premium brand which the mother chooses for 100% protection against all germs and bacteria for her family. The mother of the family is the focal point for HealthGuard Soap positioning compared to Safeguard and Lifebuoy which focuses on children.
Positioning In Relation To Product Attribute
The primary positioning with regard to product attribute is that HealthGuard Soap has the essence of HealthGuard Solution, the no. 1 antiseptic brand in the Pakistan trusted by families everywhere for over a decade - which its competitors do not posses. Hence, it is considered a premium brand in the anti-bacterial segment.
Positioning By Price And Quality
As HealthGuard is a premium brand, it is priced at a premium to its competitors (Safeguard and Lifebuoy). Being premium means there will be no compromise in quality as the link between price and quality exists and customer is always willing to pay more for perceived quality which in the case of HealthGuard soap, he/she does!
* Announce new & improved HealthGuard soap.
* Protection against a wide range of unseen germs (including bacteria & viruses).
* Better experience (lather / perfume / feel-on-skin).
* Show all 5 variants of new HealthGuard soap.