Marketing Capabilities HBS

1. CASE STUDY

3. PROCTOR and GAMBLE
1.Global leader in branded
consumer goods
2.Manages 2 dozen $1 Billion
brands(like Bounty, Iams, etc.)

4. A BRIEF HISTORY
Company Background:
1. 1887- Foundation of professional
R&D Division
2. 1930: Pursued International
expansion
3.1945-80: Entered markets in Latin
America, Japan, Western Europe
4. 1957: Expanded into new business
lines through acquisitions
5. 1980s- Created global brands
(Whisper, Pringles, Pantene)
6. 1999- & GBUs designed to replace
geographic business units; focused
more on innovation
7. 2010- Acquired Gillette

6. 1. Net Sales (2010)

7. Sales
Beauty and
Grooming
Health and Well-
Being
Household care
2. % Net Sales (Break-up)
Analysis reveals that House-hold care
contributes most to P&G sales

8. 2. Organizational Structure

9. 3. Organizational Structure
0 10 20 30 40
Beauty
Grooming
Health Care
Snacks and Pet care
Fabric care and Home care
Baby care and Family care
% Net Earnings
% Net Sales

10. 4. Sales- Area Wise (2010)
Sales
North America
Western Europe
Asia
Latin America
Rest

12. • 1999: CEO Durk Jager
• 2000: CEO Lafley
• CMO: Jim Stengel
• Vice-President: (Design
innovation and strategy)
Claudia Kotchka
• 2010: CEO Bob McDonald
PEOPLE CONCERNED

14. Objectives of the Case
Present Scenario:
CEO Bob McDonald wants to reach
out to 5 billion customers world-
wide
Objectives of the Case

15. Objectives of the Case
Primary Strategies to be employed:
• Unrelenting Focus on Innovation
• To build business with unserved and
undeserved customers
• To grow and develop faster growing ,
higher margin businesses

16. Issues to Focus on:
1. Marketing Strategies of P&G
till now
2. The most effective strategy
which would help achieve the
goals set by Bob McDonald

18. P&G Marketing Strategies
Innovation and Reorganization (1999)
• 7 Global Business Units
• 50 % innovations through P&G Labs +
50 % through connections with
scientists and engineers
• Focused on “Connect and Develop”

19. P&G Marketing Strategies
Results:
Successful
Introductions:
• Swiffer Dusters
• Olay Regenerist
• Crest Whitestrips
• Crest Spinbrush
However, Stock
slid from $118 to
$52

20. P&G Marketing Strategies
Design Innovation and Strategy
(2000)
• Introduced a culture of Design Innovation
to every step of Product Development
• Customer Centric Marketing
• Developed Metrics to measure Brand
Loyalty
• Shifted from traditional TV to Direct
Marketing
• Multi-branding and Brand Extension

21. P&G Marketing Strategies
Consumer
Invested $500 million
on 20,000 research
studies in 100
different countries
Word of Mouth
Marketing
Neuro-
Marketing

22. P&G Marketing Strategies
Advertising
• Trail-blazer in advertising with Ivory
• 1932- Daytime Radio Dramas
• 1939- TV Commercials
• 1956- Soap Operas
• As the World Turns
• The Young and the Restless
• Guiding Light
• Another World

23. P&G Marketing Strategies

24. P&G Marketing Strategies
Media
Neutral Idea

25. P&G Marketing Strategies

26. P&G Marketing Strategies
Emotional
Targeting
(2010)

27. P&G Marketing Strategies
2010:US Olympic Team
Sponsor
2012- Winter Games
Sponsor
2016- Brazil Olympic Games
Sponsor
National Football League
Sponsor

28. P&G Marketing Strategies

29. P&G Marketing Strategies
You Tube
Add
Attracted
over 2
million
Visitors

30. P&G Marketing Strategies
In the wake of
Recession shifted
to :
1.Coupons
2.In-Store
promotional
activities

31. P&G Marketing Strategies
Pampers.com My Black is Beautiful

32. P&G Marketing Strategies
Being
Girl.com
Sales
Growth:
1. 20 % in
First
Half in
2010
2. Pantene
growth
by 14%
3. Cover
Girl
growth
by 4%
4. Olay-
3%
growth

33. P&G Marketing Strategies
TV Commercial and You
Tube Sensation:
“The Man Your Man
Could Smell Like”
Generated huge Response
Campaign with million views
and on Twitter

34. P&G Marketing Strategies
• Capessa for Women (on Yahoo Health)
• People Choice Community
• Generated negative responses as well for its
adds
Social Media Sites
• Supplementary market tool
• Generated huge responses
• Millions of Fans
Facebook Marketing Tool
Rounding up of Social Media Efforts-
ManoftheHouse.com

35. P&G Marketing Strategies
1. “Loads of Hope”
2. “Be Seen not
Spotted”
3. Target- Holiday
Shoppers

37. Strategies to Focus on:
According to the figures:
• Emotional Marketing : P&Gs “Thank you Mom”
generated huge Response; Sales climbed up
drastically
• Innovation and Product Design: After
“Reorganization and Innovation” strategy failed,
“Design and Innovation” campaign pulled out P&G
from dropping sales puddle

38. • Social and Digital Media Campaign: Pampers.com,
BeingGirl.com, Facebook Handle generated
responses within hours of launching and helped
connect to millions of customers at once
• Celebrity Endorsements: Roger Federer’s “Gillette
Fusion Products” garnered 2 million views on You
Tube
Strategies to Focus on:

39. Strategies to Focus on:
Targeting Consumer Segments:
“My Black is Beautiful”
garnered huge Support from
the Black Community

40. Results:
The strategies led to unprecedented
growth in:
• Sales
• Expanded Market across regions
Bob McDonald (Current CEO) must focus on
:
1. Investing in Current Marketing Strategies
(Innovation,Targeting, Digital, Social
marketing, etc.)
2. Increase investment on Sustainability in the
Longer Run
To reach out to new customers