made under guidance from prof sameer mathur

1. Procter &
Gamble:
Marketing
Capabilities

2. WHAT IS P&g?
Procter & Gamble Co. , also known as P&G , is an American
multinational consumer goods company headquartered in downtown
Cincinnati , Ohio , the U.S. , founded by William Procter and James
Gamble.
It was the first company to advertise directly to consumers, in the
1880s, and it invented “soap operas” by sponsoring radio and TV
programming that targeted women. From early marketing campaigns to
recent experiments in digital media for its men’s hygiene brand, Old
Spice, P&G was a seasoned marketer with strong consumer research, a
powerful innovation network, an evolving marketing strategy, strong
marketing talent, and the world’s largest financial commitment to
advertising, spending $8.68 billion in 2010.

3. WHO ARE THE
PLAYERS?
• A.G. Lafley, CEO
• Bob McDonald, CEO
• Durk Jager, CEO
• Jim Stengel, CMO
• Claudia Kotchka, Vice-president, Design unit
• Marc Pritchard, Global Brand Building Officer

5. P&G’s 2010 sales hit $78.94 billion; net income, $12.74 billion; and
market capitalization, $186.63 billion. Household care was 48% of
P&G’s 2010 sales; beauty and grooming, 34%; and health and well-
being, 18%. North America represented 42% of sales; Western Europe,
21%; Asia, 15%; Central and Eastern Europe and the Middle East and
Africa, 13%; and Latin America, 9%; developed markets represented
66% of 2010 sales.
P&G’s approach to entering new markets was via “acquisition or joint
venture on a small scale, and through trial and error, learn the formula
for success before making a major commitment.”

9. SITUATION
ANALYSIS

13. MAIN GROWTH
FACTOR• P&G’s core brands and categories with an
unrelenting focus on innovation.
• to build business with unserved and underserved
consumers through consumer-centric , digital &
direct and neuromarketing , multibranding and
interactive community promotion.
• to continue to grow and develop faster-growing,
higher margin businesses with global leadership
potential.

14. Innovation and R&D: P&G
Marketing’s Secret Sauce
• Four geographic business units were set up that would help with
global product development and quick-to-market strategies.16
Three new teams supported the GBUs: a business development
team focused on innovating in existing categories; a venture
team tasked with acquiring brands in new areas and nurturing
ideas created by the business development team that did not
relate to an existing brand; and market development
organizations that would perform intensive market research to
ensure global products’ success in local markets.
• 50% of innovation and new products came from P&G’s network
of labs, and 50% through the labs—that is, through partnerships
and connections with non-P&G scientists and engineers. This
approach was called Connect and Develop.

16. MARKETING STRATEGY

17. Brands lay at the heart of P&G’s success. On their own, most of P&G’s biggest brands
are category killers run by industry leaders with seemingly endless resources at their
disposal to exploit unmet consumer needs to drive category growth and market share
expansion.
P&G ideology is that Better brands are based on innovation and continuous
improvement throughout the company’s operations and activities, starting with
developed or acquired products with performance features that consumers value.
In 2000’s company intensified its focus on Design as an additional complement to its
better quality product. The new emphasis shifted the company toward a more
consumer-centric marketing approach as well. Lafley’s shake-up and design emphasis
articulated more clearly that P&G’s brands faced two moments of truth: first, on the
store shelf; and second, when the consumer used the product and decided whether it
delivered on its promise. It gave the company a deep understanding of the
consumers who offer the potential for growth.
Apart from this, company shifted from TV and print to digital and direct marketing.
Customer-centric marketing also focused P&G on what happened in the shopping
experience. In 2008, P&G wooed recession-wary consumers with more focused
attention to in-store promotions such as coupons, displays, special offers, and other
promotional materials.

19. P&G had a long history of rigorous product and market testing; the firm was well known as
especially process-oriented.
The firm conducted over 20,000 research studies each year, and invested nearly $500
million into developing and executing studies
P&G believed in word of mouth advertisement as they considered it the most powerful
form of advertisement.
P&G with its partnership with Tobii did Neuromarketing employed psychological surveys
to measure mood and electroencephalography (EEG) technology to measure electrical
activity in the brain as subjects were exposed to commercials. The approach held that
feelings affected decisions and human behaviour and P&G sought to better understand
how its customers .
Integrating these new technologies in an attempt to gain more hard data on consumers
dovetailed with P&G’s culture of performance-driven products, as the firm leveraged new
and innovative ways to learn directly from consumers, while also building the opportunity
to create more direct, one-on-one relationships with the target audiences.

21. • For many years, P&G’s staple TV ads focused on P&G’s product
superiority and the clear functional benefits of its products. P&G
marketing had been built around the idea that functionality
would sell over emotional connection
• To compete in less familiar markets , it developed “Media
neutral” idea that could be advertised in different and relevant
local languages.
• Lafley , Stengel and Kotchka aimed towards design and
emotion driven-advertising along with benefits and function
driven one.

23. • It sponsored the U.S. Olympic team in 2010 and raised its
visibility as a worldwide sponsor for 2012 winter games in
Russia and 2016 summer games summer games in Brazil.
• It engaged its consumers in fitness campaign through NFL
sponsorship whereas the major campaign “Thank you Mom”
still remained the best in touching everyone’s heart.

25. • P&G endorsed many celebrities and spokesmodels for its acquired
beauty companies and products like CoverGirl cosmetics and
Pantene shampoo.
• Gillette and Head & Shoulders ads featuring sportspersons were
advertised through YouTube, T.V. , online and print media.
• P&G also pursued a host of promotion, sponsorship, and
endorsement relationships as well as other nontraditional outlets,
such as product placement in television and film.

27. • Digital media enabled niche experimentation targeted to specific
customers, including online serials , video games, and YouTube
channels for specific products.
• P&G launched its first mobile marketing ad campaign in 2006 . The
campaign also released TV commercials and print advertisements, and
had an online presence.
• P&G’s line of “My Black is Beautiful” products, introduced two web
series in 2010 to showcase its products. This attracted a lot of views online
. Collection sales and market share increased.
• P&G’s Old Spice television commercial and YouTube sensation, “The
Man Your Man Could Smell Like,” gave P&G its greatest exposure in the
online community and bridged the power of digital and social media.
• From mass marketer , P&G became one-to-one digitized marketer.

29. • During recession in 2009 , P&G shifted to coupons and in-
store promotional activities to maintain its media presence
while shifting ad costs.
• In 2010, P&G increased ad spending by $1 billion, with a 20%
increase in media impressions; higher revenues led to an
increase in dollars spent. McDonald, who became CEO in 2010,
stated that P&G would maintain the same level of spending,
while shifting dollars to digital advertising and other new
media to broaden the audience.

30. GLOBAL LEADERSHIP

31. MOVING FORWARD
Digital marketing with campaigns,
Emotional, design and function driven marketing ,
R&D , consumer research & product performance.
Reach its dream of 5 Billion customers.