MARKETING CAPABILITIES
Global Leader in branded
consumer goods
Global Leader in branded
consumer goods
Known for iconic category-
defining products
(Crisco, Ivory, Tide)
COMPANY
BACKGROUND
1945-
1980
1945-
1980International Expansion
expanded into new lines of
business through acquisitions
1945-
1980International Expansion
expanded into new lines of
business through acquisitions
Divested brands that
didn’t fit company profile
First Global Brands- Always, Pringles &
Pantene (in 1980s)
First Global Brands- Always, Pringles &
Pantene (in 1980s)
U.S.’s Top Cosmetics Company- acquisition
of Noxell (1989) and Max Factor (1991)
First Global Brands- Always, Pringles &
Pantene (in 1980s)
U.S.’s Top Cosmetics Company- acquisition
of Noxell (1989) and Max Factor (1991)
Entry into pet-care market: acquisition of
Iams (for $2.3 billion)
First Global Brands- Always, Pringles &
Pantene (in 1980s)
U.S.’s Top Cosmetics Company- acquisition
of Noxell (1989) and Max Factor (1991)
Entry into pet-care market: acquisition of
Iams (for $2.3 billion)
$57 billion acquisition of Gillette in 2005 made
P&G the Top Consumer Goods Company
INNOVATION R&Dand
Company
Background
Replacing Trial-and-Error methods R&D + Sale’s Marketing
Replacing Trial-and-Error methods R&D + Sale’s Marketing
In 1999, 2.6% growth reduced
Replacing Trial-and-Error methods R&D + Sale’s Marketing
In 1999, 2.6% growth reduced
To boost growth
7 GBUs + 3 Teams (to support GBUs)
replaced 4 demographic business units
Connect-and-Develop
Innovation & new products
Connect-and-Develop
50% 50%
Innovation & new products
From
P&G labs
Non-P&G
scientist &
engineers
Connect-and-Develop
50% 50%
Innovation & new products
From
P&G labs
Non-P&G
scientist &
engineers
Shift mindsets away from
resistance to
“not invented here”
Impact
Impact
R&D production increase by 60%
Impact
R&D production increase by 60%
Innovation success doubled
Impact
R&D production increase by 60%
Innovation success doubled
Cost of innovation dropped
Impact
R&D production increase by 60%
Innovation success doubled
Cost of innovation dropped
R&D investment (percentage of sales): 4.8% (2000) 3.4% (2006)
Impact
R&D production increase by 60%
Innovation success doubled
Cost of innovation dropped
R&D investment (percentage of sales): 4.8% (2000) 3.4% (2006)
Firm struggled to control costs
Stocks slid: $118 $52 (over 18 months)
MARKETING
MARKETING
FROM
Function
Performance
Price
MARKETING
FROM TO
Function
Performance
Price
Consumer-centric
focus on design
ROMI (return on market investment)
shift from TV & Print Digitize & Direct marketing
e.g. Project Apollo
ROMI (return on market investment)
shift from TV & Print Digitize & Direct marketing
e.g. Project Apollo
Pritchard’s “Store Back” approach
shift PG’s mind-set to shopper marketing experience
e.g. Pampers 2008 campaign
ROMI (return on market investment)
shift from TV & Print Digitize & Direct marketing
e.g. Project Apollo
Pritchard’s “Store Back” approach
shift PG’s mind-set to shopper marketing experience
e.g. Pampers 2008 campaign
Multi-brandingorleveragingP&G brand to derive
sales to its sub-brands
e.g. 2010 Winter Olympic campaign (18 brands under
common message)
COMMITMENT
TO
CONSUMER
$500 million spent
20,000 market research studies
5 million consumers
100 countries
1
$500 million spent
20,000 market research studies
5 million consumers
100 countries
Technology
stake in Ocado (2008)
partnership with Tobii (2010)
Neuromarketing (psychological surveys)
1
2
Qualitative
focus group discussions
customer interviews
in-store interviews
in-context visits
3
Qualitative
focus group discussions
customer interviews
in-store interviews
in-context visits
Quantitative
data acquisition
(habits & practices of consumers)
personal endorsement approach
(helped advertisers; e.g. VocalPoint-
P&G’s word-of-mouth program)
3
4
Early innovations
Daytime Radio Dramas
Early innovations
Daytime Radio Dramas Soap Operas
Early innovations
Daytime Radio Dramas Soap Operas
Developed long-standing partnerships
with advertising agencies to develop robust
Brand Identities
“Thank You, Mom” campaign
was one of the most successful campaigns
of P&G
P&G’s staple advertisements focused on its product
superiority and clear functional benefits
“Thank You, Mom” campaign
was one of the most successful campaigns
of P&G
While maintaining its central advertising strategy, P&G
shifted to more design- and emotion-driven
advertising
“Thank You, Mom” campaign
was one of the most successful campaigns
of P&G
P&G’s staple advertisements focused on its product
superiority and clear functional benefits
“Thank You, Mom” campaign
Most successful campaign in P&G’s 175 year history
“Thank You, Mom” campaign
Most successful campaign in P&G’s 175 year history
Delivered + $200 million incremental sales (USA)
“Thank You, Mom” campaign
Most successful campaign in P&G’s 175 year history
Delivered + $200 million incremental sales (USA)
17 million views on YouTube
“Thank You, Mom” campaign
Most successful campaign in P&G’s 175 year history
Delivered + $200 million incremental sales (USA)
17 million views on YouTube
Most shared videos of the Games
“Thank You, Mom” campaign
Most successful campaign in P&G’s 175 year history
Delivered + $200 million incremental sales (USA)
17 million views on YouTube
Most shared videos of the Games
33.6 billion earned media impressions
COVERGIRL
For 50 years, COVERGIRL has
created must-have beauty products
that bring out the best in women.
GILLETTE
Gillette YouTube channel featuring
Roger Federer commercial attracted
+ 2 million viewers.
MEDIA SPENDING
P&G maintained its marketing budget
in early 2009 recession
P&G maintained its marketing budget
in early 2009 recession
HOW?
P&G shifted to coupons and
instore promotional activities.
This maintained media pressure,
while shifting all costs.
P&G expanded its digital offering
with the launch of
P&G expanded its digital offering
with the launch of
papmers.com BeingGirl.com
P&G introduced
TWO
in 2010
BUPPIES
MY BLACK IS
BEAUTIFUL
1
2
BUPPIES
MY BLACK IS
BEAUTIFUL
1
2
The web series targeted African American women and
was a huge success
The web series targeted African American women and
was a huge success
Collection sales grew 20% (in the first half of 2010)
The web series targeted African American women and
was a huge success
Collection sales grew 20% (in the first half of 2010)
Second quarter dollar share for
Pantene were up 14%
The web series targeted African American women and
was a huge success
Collection sales grew 20% (in the first half of 2010)
Second quarter dollar share for
Pantene were up 14%
4% for CoverGirl
3% for Olay
P&G’s Old Spice
P&G’s Old Spice
YouTube
sensation
P&G’s Old Spice
Television
commercial
YouTube
sensation
The campaign was a MILESTONE in P&G’s
transition from
The campaign was a MILESTONE in P&G’s
transition from
MASS MARKETER
one-on-one DIGITIZED MARKETER
The campaign generated +2 billion media impressions
The campaign generated +2 billion media impressions
13.7 million individual views
The campaign generated +2 billion media impressions
13.7 million individual views
94,000 followers on Twitter
The campaign generated +2 billion media impressions
2,300 Twitter lists
13.7 million individual views
94,000 followers on Twitter
SOCIAL
MEDIA
In 2007,
P&G launched
TWO
social media sites
Capessa
For women on
Yahoo!
People’s Choice Community
associated with the
People’s Choice Awards
In 2010,
P&G started using Facebook
as a marketing tool
15 brands with “friends” in
SIX-FIGURE range
In 2010,
P&G started using Facebook
as a marketing tool
15 brands with “friends” in
SIX-FIGURE range
In 2010,
P&G started using Facebook
as a marketing tool
Manofthehouse.com
launched in 2011
15 brands with “friends” in
SIX-FIGURE range
In 2010,
P&G started using Facebook
as a marketing tool
Manofthehouse.com
launched in 2011
Aimed to
“speak to the whole man”
Tide “Loads of Hope” campaign (2005)
Tide “Loads of Hope” campaign (2005)
Opened Laundromat to
wash Katrina hurricane
survivors' clothes
Tide “Loads of Hope” campaign (2005)
Opened Laundromat to
wash Katrina hurricane
survivors' clothes
Tide had its
best sales in
+10 years
Times Square campaign 2006
Times Square campaign 2006
Targeted holiday shoppers
aimed to attract customers
for life
Times Square campaign 2006
Targeted holiday shoppers
aimed to attract customers
for life
The campaign created
9 YouTube ads and
generated 20 million
views/month
MOVING FORWARD
MOVING FORWARD
P&G has proven its ability to
navigate digital environment as evident
from its campaigns
MOVING FORWARD
P&G continues to evolve & innovate
as
WORLD’S LARGEST MARKETER
MOVING FORWARD
P&G continues to push
towards reaching
5 BILLION CONSUMERS
WORLDWIDE
SUMMARY
MARKETING CAPABILITIES
COMPANY
BACKGROUND
MARKETING
MOVING FORWARD
DISCLAIMER
Created by Harshit Gupta,
IIT Roorkee,
during marketing internship
by
Prof. Sameer Mathur,
IIM Lucknow

Harvard Case Study analysis: P&G