About the case
As of 2006, Proctor & Gamble delivered products under 300 brands to nearly five billion
consumers in more than 140 countries around the world. P&G employed about 110,000
employees in approximately 80 countries worldwide. P&G is the number one U.S. maker of
household products, with nearly 300 brands in five main categories:
Feminine & family care,
Fabric & home care,
Health care and food & beverage.
Overtime P&G has proven to be an innovator in creating brands and understanding
consumers by making extensive use of marketing research. Building brands has been a
cornerstone of P&G’s success.
In the early days P&G would mass market through television and other sources because this
was effective at the time. They have charged their key strategy from mass marketing to
consumer targeting. Their market research is so extensive that they even develop new
product based on research to meet the demands of consumer. P&G’s innovative approach
puts the consumer at the centre of everything they do.
P&G marketing has been innovative and pioneering over the years and one would expect
the same from them in the future they are constantly using marketing to solve the problem
of today and to build brands that will be continue to be leader tomorrow.
P&G (Procter & Gamble)- At a Glance
Origin: William Procter, a candlemaker, and James Gamble, a soapmaker,
immigrated from England and Ireland respectively. They settled in Cincinnati
initially and met when they married sisters, Olivia and Elizabeth Norris.
Alexander Norris, their father-in-law, called a meeting in which he persuaded
his new sons-in-law to become business partners. On October 31, 1837, as a
result of the suggestion, Procter & Gamble was born.
Procter & Gamble (P&G) is a Fortune 500 American MNC headquartered in
downtown Cincinnati, Ohio and manufactures a wide range of consumer goods.
• In 2011, P&G made $82.6 billion dollars in sales. Fortune magazine ranked P&G
at fifth place of the "World's Most Admired Companies" list, which was up from
sixth place in 2010. Procter & Gamble is the only Fortune 500 company to issue
C Share common stock.
Focused on providing branded customer goods. Its goal is to provide products of
superior quality & improve the lives of the world’s consumer.
Its products are sold in more than 180 countries primarily through merchandisers,
grocery stores, membership club stores, drug stores and high frequency stores. It also
focuses on the expansion of department stores, perfumeries, pharmacies, saloons & ecommerce.
In 2007, it established five sustainability strategies and goals for 2012. In March 2009,
it increased its goals to reflect our progress and to demonstrate our ongoing
commitment to sustainable, responsible growth.
Strategies followed by P&G are:
Use the internet to determine the market shares of
the major toothpaste brands for the last
For decades Crest toothpaste was the leading brand in the market. When Crest was launched in
1955 it was a revolutionary brand—it was the first brand that would fight cavities. Such a USP gave
it a significant advantage over all other brands. Since that time, however, Crest has stayed with
pretty much the same story. But a few years ago Crest lost its leadership position to Colgate. Crest
did not keep pace with changes in the marketplace. Sitting on its laurels and relying on past
reputation is not a practice a brand leader should follow. Such a practice was permeating Procter &
Gamble, and consequently many of its big brands were suffering. Bad breath, stained teeth, and
sensitive gums have been issues in recent years. While other toothpaste makers moved in to cater
to these needs, Crest kept on fighting cavities. Arm & Hammer launched a baking soda formula,
Rembrandt Between 1987 and 1997, Crest’s market share dropped from 39 percent to 27 percent. In
1997, Colgate launched an innovative toothpaste product that seemed to do everything: it fought
cavities, tartar, plaque, bad breath, and introduced anti-aging and whitening formulas, and Aqua
Fresh offered a fresh breath formula. most importantly, gingivitis. Gingivitis is a gum disease that
all dentists harp about. By the end of 1998, Colgate had grabbed 30 percent of the market, mainly
due to the popularity of its Total brand. Crest’s share stood at 26 percent.
Market shares of the major toothpaste brands are given below:
Procter & Gamble
Arm & Hammer
Church & Dwight
What type of syndicate data will be useful in
addressing the marketing research problem?
Syndicated data are not collected for the purpose of marketing research problems specific to
individual clients, but the data and report supplied to client companies can be personalized to
fit particular needs.
Syndicated data offered by marketing research organizations that provide information from a
common database to different firms that subscribe to their services. Household/consumer data
will be useful in addressing the marketing research problem because we can directly collect
information from consumer and we will obtain exact & specific information that reduces the
error of marketing research problem.
Household data may be obtained from survey, purchase & media panels & electronic scanner
Survey mainly conducted at regular intervals. it is the most flexible way to obtaining data. It is
mainly uses in the sector of market segmentation, advertising theme selection advertising
In case of purchase panels households provide specific information regularly over an extended
period of time. Record purchase behavior can be linked to the demographic, psychographic
characteristics. It’s helpful to forecasting sales, market share & trends, brand loyalty &
switching, packaging & distribution.
In case of media panels electronic devices automatically recording behavior
supplemented by a diary. It helps to establishing advertising rates, selecting
media programs establishing viewer profile.
In case of scanner volume tracking data household purchases recorded through
electronic scanners in supermarket. Data reflect actuapurchases, timely data,
less expensive. It is helpful in price tracking, modeling, and effectiveness of instore promotion.
In case of scanner panels with cable TV scanner panels of households that
subscribe to cable TV. Data reflect actual purchases, link panel data to household
characteristics. It is helpful to copy testing, new product testing & positioning.
At last we say household data will be useful in addressing the marketing research
problem because it provides specific information & reliable, accurate information
it is also time consuming& less expensive that is helpful to reduce the error of
marketing research problem.
Discuss the role of qualitative research in helping P&G
to increase its share of the Toothpaste market.
Role of qualitative research to increase market share:
• Market share can be increased by the following way:
• Attractive advertisement.
• Promotion and campaign.
• Appropriate segmentation of market.
• Customized product solution.
• Focusing on consumer’s interest and preference on product.
• Increasing breadth & depth of the product in the market.
• Understanding consumers need and developing product to satisfy that need in
the best possible way.
• Attractive & affordable packaging.
• Linking cultural background with the product.
• Making product available to consumer with great efficiency but not increasing
• Continuous research of consumers need and continuous development of product
according to the need.
• Surveillance on competitor’s activities on the market and taking appropriate
• Providing consumers value added service related to use and consumption of
Now let’s consider the role of qualitative research to increase the market share of P & G in Toothpaste
Qualitative research is used to gain qualitative understanding of the values lying reasons and motivations.
There are several reasons to use qualitative research. It is not always possible or desirable, to use fully
structured or formal methods to obtain information from respondents. People may be unwilling or unable to
answer certain questions. People are unwilling to give thoughtful answers to the questions that invade their
privacy, embarrass them or have a negative impact on their ego or status.
Second, people may be unable to provide accurate answer to questions that tap their subconscious mind. The
value, emotional drives and emotional drives at the subconscious level and disguised from the outer world by
rationalization and other ego defense.
To overcome this problem qualitative research is more effective to find accurate information.
Qualitative research will help P & G to identify the customs preference customs need cultural combination of
toothpaste and them segmenting the market with appropriate base. For example marketing executives can
identify some of the following qualitative variable to identify consumer preference on tooth paste market:
1. Cavity & Gum protection
2. Whiteness of teeth.
4. Fresh breath
• Based on this variable he/she will design product with minimum
appeal to consume
• Then he will develop advertising strategy by conducting research on
the following qualitative variable
• Preference of color &contrast on add.
• Preference of advertising medium ( TV/ News paper)
• Preference of cultural elements.
• Preference of quality, quantity, fragrance, or other variable.
• Focus of consumer attention.
• By developing appropriate advertising strategy, he will be able to
communicate the presence of the product on the market place.
Then if these efforts are integrated with other marketing program,
toothpaste market share is likely to increase.
P & G has developed new toothpaste that provide
tooth and gum protection from 24 hours after each
brushing. It would like to determine consumer’s
response to this new toothpaste before introducing it
in the market place. If a survey is to be conducted to
determine consumers preferences, which survey
method should be used and why?
For determining consumer’s preference to new toothpaste, it is better to use personal
In case of personal interviewing, it is more effective to use in Home personal interview.
1. In Home
In personal in Home interviews, respondents are interviewed face to face in their home. The
interviewer’s task is to contract the responder. Ask the questions and record the responses.
By personal interviewing consumer’s preferences on different variable like color, fragrance
etc. can be determined. It is also important to specify how they prefer tooth and gum
protection in their consideration.
What sampling plan should be adopted for the
survey of tooth paste brand? How should the
sample size be determined?
• Sampling plan to be adopted:
Sampling Design Process
Target population: Middle class and high class people who used branded toothpaste.
Sampling frame: Sampling frame is the representation of the elements of the target
populations. Hence sampling frame includes people with different profession, like
teacher, doctor, engineer etc.
Sampling techniques: sampling technique should be sampling without replacement.
Sampling technique in which an element can not be included in the sample more
Here probability sampling technique is likely to be included. It is possible to pre
specify every potential sample of a given size that could be drawn from the
In this case simple random sampling is likely to be selected. It is a probability
sampling technique in which each element in the population has a known and equal
probability of selector. Every element is selected independently of every other
element and the sample is drawn by a random procedure from a sampling frame.
What charts would be useful in presenting your
results to P&G management?
Round or Pie charts: In a pie chart the area of
each section, as a percentage of the total
area of the circle, reflects the percentage
associated with the value of a specific
Pictograph: Pictograph uses small picture or
symbols to display the data.
Histogram & Bar chart: A bar chart display
data in various bars that may be positioned
horizontally or vertically. A histogram is a
vertical bar chart in which the height of the
bar represents the relative or cumulative