This presentation is based on the Harvard Business Case:Procter & Gamble: Marketing Capabilities.It was created by me during a marketing internship by Prof Sameer Mathur IIM-Lucknow
2. About
An American multinational consumer goods company, founded
by William Procter and James Gamble in 1837.
Headquarters:Cincinnati,Ohio,United States.
The company manages two dozen $1 billion brands known
worldwide including Gillette, Pampers etc.
A global leader in branded consumer goods, known for iconic
category-defining products.
3. Company’s Corporate mission
Bob McDonald, P&G’s CEO,2010
To improve the lives of its customers through continued
innovation to reach “More Consumers, In More Parts of the
World, More Completely”.
P&G focuses on three specific choices:
to grow P&G‟s core brands and categories with an unrelenting
focus on innovation
to build our business with unserved and underserved consumers
continue to grow and develop faster-growing, higher margin
businesses with global leadership potential.
6. Innovation and R&D: P&G
marketing’s seCret sauCe
P&G took a scientific approach and connected R&D with the
company‟s sales and marketing.
Seven GBUs were formed supported by three teams
Business development team which focused
on innovating in existing categories.
A venture team tasked with acquiring
brands in new areas.
A market development organizations that
would perform intensive market research.
7. Connect &
Develop
P&G started this strategy in which 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 structure led to successful
product introductions such as the
Swiffer Dusters, Olay Regenerist,
Crest Whitestrips, and Crest
Spinbrush.
8. Marketing
Strategy
Earlier 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.
Kotchka brought a design culture to every step of product
development and introduced it to P&G through a number of
actions such as "design tasting.”
Consumer-centric marketing approach.
Return On Marketing Investment
9. Research on
consumer
Qualitatively
Group discussions
Interviewed consumers at
home
performed in-context visits
in-store visits
Quantitatively
gathered data on consumers
utilizing blind tests
concept and use tests
quality monitoring
large-scale studies of the
habits and practices of
consumers
10. Digital Marketing
Began with the launch of
pampers.com.
Launched BEINGGIRL.com in
2000 to provide expert advice to
teenage girls and used it to
advertise P&G tampons and
offer free samples.
Launched a mobile marketing ad
campaign to promote Crest
Whitening Plus Scope
toothpaste.
11. „My Black is Beautiful‟ was
launched to target African
American women and it
introduced TV series which
gathered million of views
resulting in increase sales.
Old spice YouTube video
campaign attracted 13.7 million
people. The campaign was seen as
a milestone in P&G‟s transition
from a mass marketer to a one-on-
one digitized marketer.
12. Unique “Thank you mom”
campaign helped it to connect
with consumers emotionally.
13. Advertising
First company to advertise directly to its consumers and sell its
products through “soap operas” by sponsoring radio and TV
programming that targeted women.
To meet challenges in new markets P&G introduced a “media
neutral” idea, meaning customizing advertising campaigns for
different regions.
Lafley ,Stengel and Kotchka shifted towards design and emotion
driven-advertising to make the brands inspirational.
14. Sponsorships
P&G, initially a U.S. Olympic team sponsor for the 2010 Games,
became a worldwide sponsor, specifically to raise its visibility in
emerging markets, for the 2012 winter games to be held in Russia
and the 2016 summer games in Brazil.
Sponsored NFL and engaged with consumers through national
youth health and fitness campaign focused on fighting childhood
obesity and increasing wellness.
15. Social Media
In 2007, P&G launched two social media sites: Capessa for women on
Yahoo! Health and the People‟s Choice Community .
P&G began using Facebook as a marketing tool & used Facebook as a
marketing supplement, not a replacement. It identified 2010 as the
year to acquire Facebook friends, but the years beyond that were for
figuring out how to use them.
In 2011, when company research showed that men were going to
women‟s sites for information,P&G started Manofthehouse.com,
which featured household advice for men. In contrast to other
similar sites Manofthehouse.com aimed to “speak to the whole
man.”
16. Celebrity Endorsements
P&G received a no. of celebrity
endorsers for its acquired beauty
companies and products like
Pantene & Cover Girl Cosmetics.
Sports stars like Roger Federer
were hired to promote brands
like Gillette & Head & Shoulders
shampoo in TV commercials,
print and online ads .
19. Next for P&G
Building on its strengths in R&D
Consumer research
Product performance
Innovate as the world‟s
largest innovator
20. About P&G
Company‟s Corporate mission
Brands and Products
Innovation and R&D: P&G Marketing‟s Secret Sauce
Connect & Develop
Marketing Strategy
Research on consumer
Digital Marketing
Advertising
Sponsorships & Social Media
Celebrity Endorsements
P&G Sales and Earnings Percentage
Next for P&G