P&G is a global consumer goods company with over 65 brands in beauty, grooming, healthcare, snacks, fabrics, and home care. It has become successful through international expansion, connecting with scientists worldwide through its R&D department, and shifting to more emotional consumer-centric marketing. Though P&G faced issues like rising costs and struggling against rivals, it overcame challenges by focusing on design thinking, creating iconic brands, innovative marketing like neuromarketing, tackling the recession through promotions, and leveraging social media. Going forward, P&G can further focus on major brands, digital marketing, and leveraging e-commerce.

1. Marketing Capabilities

2. COMPANY BACKGROUND
MULTI-BRAND COMPANY
OVER 65 BRANDS IN THE SEGMENTS
OF BEAUTY, GROOMING, HEALTHCARE,
SNACKS, FABRICS AND HOME CARE AND
BABY PRODUCTS
GLOBAL PRESENCE

3. THERE ARE THREE REASONS WHY P&G
IS WHAT IT IS TODAY
GLOBAL SALES
(billion dollars)
78.94

4. INTERNATIONAL EXPANSION
Only 42% revenue comes from
North America now
Whisper, Pantene and Pringles
became global brands in 1980s

5. CONNECT and DEVELOP
P&G’S R&D
department
includes 7500
employees inside
and 1.5 million
outside!
P&G has
connections
With scientists
and
Engineers all
around
the globe
Though this has led to successful product innovations,
Along came an uncontrollable rise in costs

6. CONSUMER CENTRIC MARKETING
THERE HAS BEEN A SHIFT FROM
FUNCTIONAL TO EMOTIONAL MARKETING

7. P&G’s MARKETING STRATEGIES
ADVERTISING
SPONSORSHIPS
CELEBRITY ENDORSEMENTS
MEDIA SPENDING
DIGITAL ADVERTISING
DIRECT MARKETING

8. So what problems
did P&G face
during its journey?

9. Uncontrolled rise in costs
Struggling behind rivals
Managing a plethora of brands
2009 Recession and slowdown in domestic sales

10. How did it overcome
these challenges?
Well, it changed itself.

11. DESIGN
Claudia Kotchka as VP of Design,
Innovation and Strategy brought
cross-functional teams
together to create new brands based
on design
Design was used as a
compliment to P&G’s
function- driven process

12. Creating self-sustaining ICONIC
BRANDS
Ivory = Purity
Retro Approach
Breakthrough Products
Social Media
Manufacturing Efficiencies
Mass-mailing
Learning from mistakes

13. Innovative Marketing Methods
NEUROMARKETING P&G announced a partnership
with Tobii, a leader in eye
tracking which objectively
identified visibility and attention
that consumers gave to
packaging, displays, and
advertising
Used women for word-of-mouth
marketing
Bad hair day Survey
Consumer Feedback

14. TACKLING RECESSION
Instead of cutting back on costs, P&G
smartly shifted its spending from
Advertising to promotional efforts such
as coupons and discounts
TARGET: GROW CUSTOMERS!

15. BRAND LOYALTY
Focus was shifted to more and
more Direct marketing to
generate Brand Loyalty
Functional+Emotional Appeal
The Aim:
5 Billion
customers
Worldwide
Repeat Purchases

16. SOCIAL MEDIA
manofthehouse.com
Facebook likes beinggirl.com
The Old Spice guy

17. CONNECT AND DEVELOP
THIS WAS A MOVE IN CONTRAST WITH THE
COMPANY’S CENTRALIZATION AND INTERNAL
FOCUS
BUT IT PRODUCED MAGNIFICENT RESULTS DUE
TO CLEAR ARTICULATION OF REQUIREMENTS
R&D
Costs 60% DOWN
Products UP
R&D as % of sales
2000 4.8%
2006 3.4%

18. So, what’s next?
P&G could put all its focus on
its major brands
Digital Marketing
can be the main
advertising
Resource
Leverage E-Commerce
Competitive Pricing
to stay ahead
of rivals.

19. SUMMARY
Company Background
Reason’s for P&G’s success
Marketing Strategies
Problems
Solutions
Connect and Develop
What’s next

20. Disclaimer
Created by Shravan Mundra, Hindu
College, during Marketing Internship under
Prof. Sameer Mathur, IIM Lucknow