2. Procter & Gamble
✓ Procter & Gamble Co., also known as P&G, is an American
multinational consumer goods company founded by William
Procter and James Gamble, both from the United Kingdom.
✓ Headquarters : Cincinnati, Ohio, United States
✓ Founded : October 31, 1837, Cincinnati, Ohio, United States
✓ Current CEO : Alan G. Lafley
✓ Subsidiaries : Wella, Braun, Max Factor, Clairol, Gillette India
Ltd., more
✓ Founders : James Gamble , William Procter
Procter & Gamble
3. Mission
★ To Provide branded
products and services
of superior quality and
value that improve the
lives of the world’s
consumers, now and for
generations to come.
Vision
★ To be the best consumer
products and services
company in the world.
Values
★ Integrity
★ Leadership
★ Ownership
★ Passion for winning
★ Trust
5. Case Facts
★Global Leader in Branded Consumer goods
★Has 2 dozen $1bn brands known worldwide
★First company to advertise directly to consumers.
★2010, total sales=$78.94bn
★Net Income=$12 bn
★Market capitalization=$186.63bn
6. SITUATION ANALYSIS
A consumer goods company with
good background enters new market
with a mission and decisions.
Takes scientific approach to connect
with people by bringing in a design
unit as a part of marketing strategy.
Shift from product based marketing to
consumer-centric marketing and follows
Communication through direct & digital
marketing & sales promotion
Tries to move forward with an aim to
reach 5 billion new consumers and finally
is able to CONNECT and DEVELOP
7. Objectives of the Analysis
★ To explore the design, implementation & interpretation of
product development & marketing strategies implemented by P&G.
★ Evaluate primary and unique communication strategies and
money spending by the company.
★ The company’s efforts to ultimately fulfil its vision: Connect & Develop
9. ★In 1887 first analytical lab was set up for the company,
laying a professional R&D division: CREST toothpaste was its
first product
★Under CEO Durk Jager, P&G reorganized that net sales
slowed to 2.6% growth from the previous year. So, P&G cut
15,000 staff and promised to deliver more innovation.
★14 Seven global business units (GBUs) based on product
categories replaced the company’s four geographic business
units.
★Jager called for 50% of innovation and new products to
come from P&G’s network of labs, and 50% through the labs.
11. ★P&G had pursued a multibrand strategy, and it managed brands across a category
carefully, with each getting individual support and satisfying a segment of the market.
★Tide was offered as the premium brand; next came Cheer, which “cleaned colors
safely”; Gain “had fresh scent”; at the bottom sat Oxydol, which “contained bleach.”
★Jim Stengel and Claudia Kotchka became chief marketing officer (CMO) and vice
president for the new design unit, separate from P&G’s other business units.
★Kotchka hosted a “design tasting,” featuring design case studies for P&G’s top 200
executives; she created a P&G design board; and she created the Clay Street Project,
bringing cross-functional teams from their jobs elsewhere across the firm’s global
footprint to Cincinnati for 10 weeks to create new brands based on design.
★The new emphasis shifted the company toward a more consumer-centric marketing
approach as well.
HARVARD BUSINESS SCHOOL CASE
13. ★P&G invested more in market research than any company in the world,
interacting with more than 5 million consumers in almost 100 countries.
★Innovative approaches to consumer engagement led to new marketing
and promotional opportunities: For example, VocalPoint: P&G’s word-
of-mouth program that enrolled more than 600,000 women to pitch its
products.
★In June 2010, P&G announced a partnership with Tobii, a leader in
eye tracking, which objectively identified visibility and attention that
consumers gave to packaging, displays, and advertising.
HARVARD BUSINESS SCHOOL CASE
14. ★Neuromarketing also played an increasingly important role. P&G
employed psychological surveys to measure mood and
electroencephalography (EEG) technology to measure electrical
activity in the brain as subjects were exposed to commercials.
How its customers felt—not about a product such as Pantene, but
about having a “bad hair day.”
★The psychological surveys discovered that women felt less
“hostile,” “ashamed,” “nervous,” “guilty,” or “jittery,” depending
on the hair product they used, while at other times they said they
felt more “excited,” “proud,” and “interested.” The
HARVARD BUSINESS SCHOOL CASE
16. ★P&G had been a marketing trailblazer from the outset: Ivory, the first product to be
advertised directly to consumers and sold directly to them. Other brands such as
Crisco, Camay, and Oxydol soon followed.
★In 2002, P&G reconsidered its advertising strategies to better meet the company’s
global markets and consumers. P&G began by first developing a “media neutral”
idea that could be translated across a range of media. With Tide, for example, the
idea was that the detergent “works wonders on the fabrics that touch your life.”
★Sponsorships : For example, P&G, a U.S. Olympic team sponsor for the 2010
Games, became a worldwide sponsor, and for the 2012 winter games to be held in
Russia and the 2016 summer games in Brazil.
★Celebrity endorsements: CoverGirl spokespersons Christie Brinkley, Drew
Barrymore, Ellen DeGeneres, and Queen Latifah. Tennis star Roger Federer was
featured in Gillette Fusion Products ads in the U.K. in 2010.
HARVARD BUSINESS SCHOOL CASE
18. Customer knowledge
Spends more
Than $100 million on over 10,000
Formal consumer research projects,
Generating more than 3 million
Contacts.
Product Innovation
Invests $2 billion
Annually in R&D and employs more
Than PHDs than Berkeley ,Harvard
And MIT combined.3800 patents
Annually .
Ex- Dryel ( helps “dry cleaning” at home,
Swifter , Febreze.
19. Quality Strategy
Designs products
With above average quality &
continuously Improving them . Ex-
Pampers Rash Guard ,Tide compact
detergents.
Brand Extension
Strategy
Produces
Brands in several sizes & forms -gaining
More shelf space & preventing
Competitors from moving to satisfy
Unmet market needs.
20. “If You Go back at Procter And Gamble, and in a lot of the
industry, we often thought of our brands in terms of
functional benefits. But the equity of great brands has to be
something that a consumer finds inspirational and an
organisation finds Inspirational.”
- Jim Stengel, CMO, P&G
21. Introduction
Mission and Vision
Case Facts
Situation Analysis
Objectives
Innovation and r&d
Marketing at P&G
Commitment to consumers
Advertising Strategies
How is P&G Different
22. DISCLAIMER
Created by Rishabh Singh, IIT (ISM) Dhanbad, during a Marketing
Internship under the guidance of Prof Sameer Mathur, IIM Lucknow.
Prof. Sameer Mathur
IIM Lucknow
Rishabh Singh
IIT (ISM) Dhanbad
