P&G has evolved its marketing strategy over the years to focus on unmet consumer needs. Its marketing budget grew from thousands to billions. Under Lafley in 2000, P&G aimed to be the top design company by understanding two moments of truth for consumers: on shelves and during product use. This shifted P&G's marketing from process-oriented to deeper consumer understanding. Through interactions with 5 million customers and $500 million in research, P&G adopted a more customer-centric approach starting with the consumer end in mind. P&G also increased its use of new technologies like digital marketing and sponsorships to appeal to audiences emotionally and gain consumer data to improve products.

1. P & G:Marketing capabilties

2. How has P&G’s marketing strategy evolved over the years?

3. Hypothesis
P&G’s marketing strategy has tried to focus on the unmet consumer needs and has
exploited the seemingly endless resources of the company to drive its marketing
campaign.

4. From a few thousand dollars spent in marketing

5. billion
marketing budget in 2010.
To

7. Lafley took over in 2000 and set a goal to make
P&G the “top design company”
in the world.

8. What did such emphaisis on desgin lead to?

9. Two moments of truth

10. 1.On the store shelf

11. 2.When the consumer used the product and decided whether it delivered its promise.

12. How did this change the marketing strategy of P&G?

13. Earlier
A marketing approach that was
a.process oriented
b.template driven culture

14. Now
A deeper understanding of :
a.who the product was for
b.what was different about the consumer
c.how that consumer expected to use the product.

15. Because of…...
a.Interaction with 5 million customers.
b.$500 million dollar investments for 20,000 research studies

16. P&G’s cincinnati headquarters faux home
To show the moment of truth

17. Customer centric marketing

18. Store back approach
a.Rather than adjust at late in the product’s development stage.
b.they began with the end in the mind.

19. Earlier,brands were
scattered

20. During the 2010 winter olympics the entire assembly was shown which consolidated the
mother brand.

21. Functionality emotion.

24. Sponsorships,
Endorsements
To appeal to the audience at an emotional level.

25. Soaps

26. Sponsorships to the entire US team

27. Commander safeguard

28. Celebrity endorsements

29. Move towards digital marketing.

30. Speciality Websites...

31. Web series
3.6 million views
My Black is beautiful

32. Old spice channel youtube
2 billion media
impressions

33. Worldwide olympic sponsorship in 2010 was one part of this effort.

34. T-shirts could be bought online

36. Hypothesis
Integrating new technology in an attempt
to gain more hand on data on consumers and give more
and more inputs
to improve design,induce innovation & boost production.

37. Earlier
Market research R&D Design Product
Now
Market research R&D Design Product

38. 1887 Nephew of one of the co-founders started one of the first corporate labs in the field of consumer goods.
From

39. To
“connect and develop”

40. Achieved….
a.7500 researchers in the firm and 1.5 million beyond.
b.R&D productivity increased nearly 60%.
c.Innovation success doubled.

41. Innovations due to connect and develop

42. Use of resources effectively
a.interaction with 5 million customers
b.$500 million dollar investments for 20,000 research studies

43. Use of high tech to study human responses to
advertisements.
Eye Tracking EEG

44. Results of so much
market research...

45. 1.Word of mouth: Vocal Point Program
1.6,00,000 women shared with peers.
2.P&G understood that
“the most powerful form of marketing is an advocacy message from a trusted friend.

46. 2.Renewed focus
Integrating 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 to one relationships with the target audience.

47. Reduced costs: Pampers
a.Postwar baby boom, led to a market segment of diapers.
b.Good market research product launch marketing inputs
affordable to large no of customers
manufacturing costs were reduced.

48. Thank you
These slides were prepared by Bhaveen Kumar,NIT GOA
as part of a marketing management internship
under Prof.Sameer Mathur,IIML.