IBM TASK

Name: Umair Khan Lodhi (BBA-2k16(B))

Q. Identify a country, business and industry. Conduct a foreign market expansion

analysis.

Country: Pakistan Company: P&G

P&G community consists of over 138,000 employees working in over 80 countries worldwide.
The analysis for expansion in Pakistani markets is given below:

Market Potential: The potential of Pakistani market is very high because of the fast pace of
its growth and urbanization in the country which may help the company sell its products in
huge amounts. Pakistan also has a large population which raises the number of buyers for P&Gs
consumer products. The market to be tapped should mainly be of consumer products because
they have a higher demand. The selling point for P&Gs products is their ease of access, quality
and less cost. P&G can really match their capabilities in Pakistan.

Level of Competition:
In the grooming segment, Procter & Gamble's Gillette brand is the dominant market player. Bic
is a major competitor with a large international presence. This segment accounts for one-fifth
of Procter & Gamble's net earnings. In the health care segment, major competitors include
Colgate-Palmolive, this segment accounts for about a tenth of Procter & Gamble's net earnings.
Another main competitor of P&G is another consumer products company Unilever along with
some other food producer, detergent producers and consumer goods companies.

Legal and Political Environment:

As far as legal and political environment is concerned, Pakistan has a smooth and welcoming
environment which encourages foreign investment to help their economy grow as the state
itself is in rapidly growing phase. Government of Pakistan is ensuring legal protection and
removing all the trade barriers to each and every foreign investment to fuel growth. The law
enforcement is also effective and efficient to ensure safe and reliable business environment.
Intellectual Property Protection laws are also strong enough to avoid any hassle. Hence, P&G
have a huge scope of expansion with suitable political and legal environment.

Socio-cultural Influence: P&G produces consumer products which are used by a large
number of consumers and hence they become well known around. Pakistani culture has zero
issues with the products they are producing instead the culture supports cleanliness while P&G
produces soaps and shampoos which are used to take care of the hygiene and hence the
culture would welcome P&G with such products. Pakistani population is well educated mainly
in urban areas while the uneducated from rural areas are moving towards cities to improve
their standard of living which is also growing the size of market and its potential gradually.
Pakistani consumers also prefer foreign brands over local ones.

COSTS: Manufacturing, Advertising, Distribution.

BENEFITS: Large consumer base, higher demand, huge profits.

RISKS: Local competition, Imitation or counterfeiting of products.