Proctor & Gamble's Continued Marketing Success

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A close look at the marketing strategies that have ensured P&G's success over the last 150+ years.

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Proctor & Gamble's Continued Marketing Success

  1. 1. Roxene Edwards MPSM 600 October 15, 2016 Proctor & Gamble’s Continued Marketing Success
  2. 2. Proctor & Gamble ● Est. 1837 by William Proctor (candlemaker) & James Gamble (silkmaker) ● Cincinnati, OH headquarters ● “Touching lives, improving life for today and for generations to come” ● Has innovated & launched revolutionary products over the last 150 years ● Consumer Goods; 4 product categories ○ Beauty ○ Feminine & Baby Care ○ Health & Grooming ○ Fabric & Home Care
  3. 3. P&G’s Most Trusted Brands Beauty Baby, Family & Feminine Care Fabric & Home Care Health & Grooming
  4. 4. ● 4.8 billion consumers in 180 countries ● 121,000 employees in 80 countries; 1,000 sciences PhDs ● 25 billion dollar brands ● Spend $2 billion annually on R&D ● Spend more than $100 million on more than 10,000 formal consumer research & generates 3 million consumer contacts via its e-mail & phone center “At P&G, the consumer is at the center of all we do” Proctor & Gamble By the Numbers
  5. 5. 6 Keys to P&G’s Success 1. Product Innovation 2. Quality Strategy 3. Brand Extension Strategy 4. Multibrand Strategy 5. Manufacturing Efficiency & Cost Cutting 6. Brand Management System
  6. 6. 1. Product Innovation ● P&G values product innovation; “branded science company” ● Employs 1,000 PhDs; more than Harvard, MIT & Berkeley combined ● Applies for about 3,800 patents each year ● Recent innovations include: ○ Febreze - odor-eliminating fabric spray ○ Dryel - a product that helps “dry-clean” products at home in the dryer
  7. 7. 2. Quality Strategy ● P&G continually evolves & reformulates products & their quality Pantene 2-in-1 Shampoo & ConditionerTide Pods
  8. 8. 3. Brand Extension Strategy ● P&G produces brand product in multiple shapes & sizes, providing options for everyone ○ Prevents competition from moving in on unsatisfied consumer needs ● Use strong brand identity to launch new product lines ○ Ex. Old Spice
  9. 9. 4. Multibrand Strategy ● P&G markets several brands in the same product categories to leverage multiple target consumer groups
  10. 10. 5. Manufacturing Efficiency ● P&G is constantly improving it’s production operations ○ Keep costs to minimum; some of the lowest in the industry ○ Makes it possible to offer low prices for premium product 6. Brand Management System ● P&G originated the “brand management system” ● System in which one executive is responsible for each brand ○ Executive has volume & profit responsibility
  11. 11. Relation to Marketing Principles 4 Approaches to Marketing Research ● Prospector ○ innovator ● Analyzer ● Reactor ● Defender Brand Architecture ● Branded House ● Subbrands ● House of Brands ○ “allows firms to clearly position brands on functional benefits and to dominate niche segment”
  12. 12. Challenges ● Too many products in the same product category can create competition within brands ● How will they continue to keep costs at a minimum? ● Where to go when you’re at the top? ● Enhance digital strategy ○ Not many consumers know they can purchase directly from P&G’s website Opportunities
  13. 13. Questions? How would you apply P&G’s strategies to fashion companies? How can P&G leverage digital & social media to reach new/existing consumers? Is it necessary? What are other challenges or opportunities you identify?
  14. 14. References Aaker, D. A., & Joachimsthaler, E. (2000). The brand relationship spectrum: The key to the brand architecture challenge. California management review,42(4), 8-23. Kotler, Philip. & Keller, Kevin Lane. (2016). Marketing Management. Pearson 15th ed. Our Brands. Proctor & Gamble. (2016). Retrieved From http://us.pg.com/our-brands Who We Are. Proctor & Gamble. (2016). Retrieved From http://us.pg.com/who-we-are

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