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Procter and Gamble:Marketing Capabilities
- 2. THEY FOUND P & G IN 1837 WILLIAM PROCTER JAMES GAMBLE
- 3. P & G was the global Leader In consumer goods #1 More than 5 million Consumers in almost 100 countries
- 6. Their marketing Strategies are Considered standard Industry practice
- 7. Core Values Integrity Leadership Ownership Passion for winning Trust
- 8. North America, 42% Western Europe, 21% Asia, 15% Central and Eastern Europe and the Middle East and Africa, 13% Latin America, 9%SALES Started expansion in mid 90s and by 1980 entered Latin America, Western Europe and Japan
- 9. 24 10 4 30 18 23 13 3 28 17 0 5 10 15 20 25 30 35 Beauty Grooming Health Care Fabric Care and Home care Baby Care and family Care PERCENTAGE% SEGMENT Organizational Structure % of Net Sales % of Net earnings
- 10. Started acquisitions to increase market share
- 11. The $57 Billion breakthrough acquisition of Gillette made P & G the top consumer goods company
- 12. What is the SECRET of their Success
- 13. P & G heavily relies on Innovation and R&D Followed a scientific Approach to connect company’s Sales and marketing
- 14. Owing to the dip in Sales in 1999,they Decided to change their Global structure by establishing 7 Global Business Units GBUs A business development team Focusing on innovation A Venture team Acquiring new brands and nurturing ideas Market development organizations Intensive market research
- 15. Researched the top 10 Needs of people Converted them into science problems Looked for new products And concepts Leveraged the brand’s Equity for sales Connect + Develop
- 17. Connect & Develop success stats >35% products developed Outside of firm 45% of key initiatives Discovered externally R & D – 60% Innovation success- 2X 1.4%drop in R & D Investment from 2000 To 2006
- 18. P & G decided to shift Their focus to DESIGN After 2000 It used design as a Complement to its Innovation process
- 19. 2 Moments of Truth: 1. Store shelf (Sales) 2. Product performance delivery review from consumer
- 20. 2 Moments of Truth: 1. Store shelf (Sales) 2. Product performance delivery review from consumer This led to a Deeper understanding Of The consumer Consumer-centric approach
- 22. ROMI - Return On Marketing Investment Direct Marketing
- 23. ROMI - Return On Marketing Investment Direct Marketing Project Apollo Tracked the media habits Of 30000 consumers Helped P & G understand Its marketing tactics
- 24. ROMI - Return On Marketing Investment Direct Marketing Project Apollo Tracked the media habits Of 30000 consumers Helped P & G understand Its marketing tactics Measurement of Brand Loyalty And Customer Relationships
- 25. Recession of 2008 did not Affect the marketing tactics Of P & G They started focusing on Shopping experience
- 26. Focused on having the END In mind when first conceiving The Marketing idea
- 29. When people know a brand is from P&G, they feel better about the brand. P & G respected the appreciation and trust received from consumers P & G thanked their Consumers
- 31. Vocal Point helped P & G connect 600,000 women Across the world
- 33. ADVERTISING
- 34. P & G was the first Company which started Television commercials And sponsored radio and Soap Operas
- 35. P & G was the first Company which started Television commercials And sponsored radio and Soap Operas They focused in developing Long standing partnerships With ad agencies Develop robust brand Identities For the portfolio Of Consumer goods
- 38. Found difficult to establish Itself in less familiar markets
- 39. Challenges from Competitors for market share
- 40. Challenge in maintaining sustainability Challenges of Innovation
- 41. How did P & G overcome the Challenges ?
- 42. Translation of brand Taglines into locally Relevant messages Media Neutrality
- 43. Now P & G Also started Focusing on Emotion of its consumers
- 45. Sponsorships Helps spread awareness About the brand Contributes brand equity
- 48. Celebrities have a Great fan following Endorsing a brand Attracts views Brand awareness
- 50. During recession P & G Didn’t shift its marketing budget Media Spending
- 51. During recession P & G Didn’t shift its marketing budget They increased their Ad spending by $1 Billion + 20% increase in media presence Media Spending
- 52. During recession P & G Didn’t shift its marketing budget They increased their Ad spending by $1 Billion + 20% increase in media presence Media Spending Shifted dollars to Digital advertising
- 53. During recession P & G Didn’t shift its marketing budget They increased their Ad spending by $1 Billion + 20% increase in media presence Media Spending Shifted dollars to Digital advertising Broaden their Audience
- 55. Websites help to share General information BeingGirl.com provided Information Regarding the Problems Girls Found Embarrassing or difficult to share
- 56. As P & G struggled Behind rivals It decided to reach 1 Billion more consumers By 2015
- 57. It also started 2 web series Targeting African Black women Attracted around 2 million viewers
- 58. It averaged 3.6 million viewers Net sales up by 20% Pantene 14% CoverGirl 4%% Olay 3%
- 59. Started using Facebook In 2010
- 60. Started using Facebook In 2010 Used it as a marketing supplement
- 61. Started using Facebook In 2010 Used it as a marketing supplement Started Manofthehouse.com To support men in Household work and Much more
- 62. Tide started ‘Loads of Hope’ campaign Interactive Community Promotion To support people after Katrina Hurricane
- 63. LAUNDROMATS
- 64. Moving Forward
- 65. Moving Forward P & G looks to reach 5 Billion Consumers
- 66. P & G continues to build On its strength of innovation, Consumer research and Product performance
- 67. P & G continues to build On its strength of innovation, Consumer research and Product performance It has come a long Way in evolving as The World’s Greatest market Leader
- 68. SUMMARY • BACKGROUND • MARKETING AND INNOVATION • ADVERTISEMENTS • PROMOTIONS • CHALLENGES • SUCCESS
- 70. Created this Presentation During the marketing internship Under Prof. Sameer Mathur Acknowledgement