P&G has been conducting market research since 1837 to understand customer needs and preferences. It established a dedicated market research department in 1924 and developed both qualitative and quantitative research tools. Through the extensive use of tools like blind tests, concept testing, and surveys, P&G gains insights into new product ideas and ensures existing products meet customer needs. The company also diversified its product portfolio across multiple categories and geographic regions based on market research findings.

1. MARKET
RESEARCH
AT P&G
-THE ART OF UNDERSTANDING THE MARKET
BY DEV CHANDAN
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2. BACKGROUND
• Procter & Gamble was established
in 1837 at Cincinnati.
• P&G’s foray into MR was a mere
coincidence.
• From its inception, it sought product
response from customers.
• P&G used several innovative market
tools for research such as “MARKET
TESTING”.
• In late 1990’s, the extensive use of IT
helped its MR operations, which
resulted in greater efficiency and
savings in time and cost.
2

3. • Emphasis on PRODUCT.
• It emphasizes on quality, safety, investment in new
technology.
• Failed to understand the changing needs of their
customers.
3PRODUCT ORIENTED FIRMS

4. • Emphasis on MARKET.
• It organises its activities, products and services.
• Focusses on wants and needs of its customers.
4MARKET ORIENTED FIRMS

5. MARKET RESEARCH TOOLS
USED BY P&G
QUALITATIVE
RESEARCH
TOOLS
QUANTITATIVE
RESEARCH
TOOLS
ONLINE
RESEARCH
• P&G had set up its MR
department in 1924.
• The company had two
independent in-house
research groups.
• The were responsible for
organizing customer
interviews.
• Developed set of qualitative
and quantitative research
tools and then switched to
online research.
5

6. QUANITATIVE RESEARCH
ANALYSIS
• It refers to the systematic
investigation of social
phenomenon via statistical,
mathematical or numerical
data
• Helped in generating new
product ideas for P&G.
• The major tools used are:
• Blind tests
• Concept aided usage test
• Habits and Practices
• Quality monitoring
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7. BLIND TESTS:
• Used whenever items are to be
compared without influences
from testers preferences or
expectations.
• Comparative testing of
commercial products to asses
user preference without being
influenced by branding.
CONCEPT AIDED USAGE TEST:
• To evaluate consumer response
before the introduction of the
product.
• Consumers were pre educated
about a product and then their
reactions are recorded.
7QUANITATIVE TOOLS

8. HABITS AND PRACTICES:
• To capture user’s unmet needs.
• It uses opportunity index scores
which identifies key areas of
unmet needs.
QUALITY MONITORING:
• To check whether the products
bought by the customers
actually met their needs and the
product design criteria.
8QUANITATIVE TOOLS

9. Bar Graph
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10. Line Graph
Page Layout
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11. SWOT ANALYSIS
• Diversification
• Strong market
penetration
• Use of it
• Product availability
• Premium pricing
• Tap rural market
• Mergers and
acquisitions
• Stiff market
competition
• Saturation of
demand
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS

12. 12
24%
9%
14%
4%
30%
19%
Beauty Grooming
Health Care Snacks and Pet Care
Fabric and Home care Baby Care and Family Care
41%
20%
14%
9%
16%
North America
Western America
Central & Eastern Europe, Middle East and Africa
Latin America
Asia
P&G’s GEOGRAPHICAL
DIVERSIFICATION
P&G’s PRODUCT
DIVERSIFICATION

13. • Growing competition between all the leading
FMCG companies of the world.
• Diversification into different sectors apart from
healthcare and personal products.
• Revenues generated using market research has
been huge.
• They need to keep a count on the amount of
prominent law suits being filed against them.
ROADS AHEAD

14. THANK YOU