P&G focused on growing its core brands and categories through innovation, building relationships with unserved consumers, and growing higher-margin businesses. Some iconic early innovations included Crest toothpaste, Pampers diapers, and Head & Shoulders shampoo. Over time, P&G introduced new structures like business development teams to speed innovation. It also worked to reach more consumers through strategies like celebrity endorsements and digital marketing. P&G's leadership emphasized the importance of design in connecting with consumers. While facing challenges, P&G grew its sales and market share through sustained focus on innovation, design, and serving more customer needs over decades.

1. Procter & Gamble:
Marketing Capabilities
Harvard Business School Case
HARVARD BUSINESS SCHOOL

2. Overview
P&G till now…….
• P&G was a global leader in branded consumer good.
• It’s known for defining iconic products in various segments.
• Also company has managed two dozen $1 billion brand know worldwide.

3. Overview
P&G’s approach -
Entering new markets was via “acquisition or joint venture on a small scale, and through trail
and error, learn the formula for success before making major commitment.”

4. Few Words From CEO
We focused 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; and to grow and develop faster-growing, higher margin business with global
leadership potential.
Bob McDonald

5. GROW AND
DEVELOP OVER
TIME
BUILDING
RELATIONS
WITH
UNSERVED
INNOVATE
Key Process

6. really

7. Innovative

8. Were they INNOVATIVE enough?
Crest Toothpaste (1955)
The first toothpaste with fluoride.
Pampers (1961)
The first disposable diapers.
Head & Shoulders
The anti-dandruff shampoo.
These are way back in 1950s and 1960s…The point is about being consistent.

9. Global Product
Development &
Quick-to-
Market
Strategies
Market
Development
Organizations
Business
Development
Team
Venture Team
Were they INNOVATIVE enough?
P&G introduced new units, as they hoped net results would be “ Bigger innovations, faster speed to market,
greater growth-innovation vitality ”

10. Were they INNOVATIVE enough?
Finally the strategies and structure and approach to innovation called,
“connect-and-develop” altogether worked out.
It lead to successful introduction of the products as follows -

11. Were they INNOVATIVE enough?
Hence…
The firm struggle to control costs and stock slid from $118 to $52 over 18 months.
As it turns out, P&G was strongly focused on innovation and they kept
innovating products which were good at value creation…
Every coin has two sides…

12. Unserved

13. Did they got connected with UNSERVED
consumers?
Specifically target
women in their
homes.
P&G‟s early innovations included
sponsorship of daytime radio dramas and
television commercials.

14. Did they got connected with UNSERVED
consumers?
They faced challenge in winning new
customers in less familiar markets
outside the Americans and Western
Europe.
Media NeutralLed to thought of

15. Did they got connected with UNSERVED
consumers?
A. G. Lafley (CEO)
Claudia Kotchka
(VP of Design & Innovation) Jim Stengel‟s (CMO)
Design- and Emotion-
driven advertising
The equity of great brand has to be something that consumer finds inspirational and an
organization finds inspirational.

16. Sponsorships
Celebrity
Endorsements
Media Spending
Digital
Marketing
Did they got connected with UNSERVED
consumers?
P&G
Decent market
growth

17. 31% 32% 33% 34% 35%
2008
2009
2010 DEVELOPING
MARKETS (% of net
sales)
P&G has worked hard to reach as much consumer as possible through strong strategies behind them.
But…
They still lack in Digital marketing, as only 5% of $3.2 billion was spent on online marketing which has led to
decent growth in market shares.
Did they got connected with UNSERVED
consumers?

18. Grew
Developed

19. Did they GREW and DEVELOPED over time?
A. G. Lafley
„First moment of truth‟.
Design every component of the product.
Communication Experience
User Experience
2.
3.
4.
1.
• Intensified focus
on Design
• P&G‟s long-
standing focus on
product
functionality and
price
P&G went through redefining itself over time…

20. Did they GREW and DEVELOPED over time?
Lafley defined P&G‟s brands faced two moments of truth…
1. On the store shelf 2. When consumer used the product

21. Did they GREW and DEVELOPED over time?
Introduce ImpactP&G Board
Design
1. Product
Development
2. Innovation
Process
3. Changed
function of
some
products.Claudia Kotchka
(VP of Design & Innovation)

22. Did they GREW and DEVELOPED over time?
Stengel‟s important questions…
What the product was for?
What was different about that consumer?
How that consumer expected to use the product?
Traditional Process
Oriented
Template driven cultureMoving towards
Jim Stengel‟s (CMO)

23. 74 76 78 80
2008
2009
2010
NET SALES ($
Billions)
Did they GREW and DEVELOPED over time?
And finally focusing on bustle of activities & not on few things that drive growth of brand gave good results
as whole…
Despite of poor economic climate, P&G did adequate business to ensure its growth
and development…

24. Created by Utkarsh Rajesh Dighe, VIT Pune, during a marketing internship by
Prof. Sameer Mathur, IIM Lucknow.
Disclaimer