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A Case study on
Who arethe key people...?
1 DurkJager (CEO)
2 Lafley(CEO)
3 Stengel(CMO)
4 Kotchka(Head of R&D & Design)
5 Pritchard (Multibrand manager)
6 McDonalds (Current CEO)
2
Businesses
Beauty Segment
Grooming Segment
Healthcare segment
Snacks& Pet care segment
Fabriccare &Homecare segment
Baby Care & Family Home care segment
3
Fabricand Homecare
Fabric and homecare segment is the most profitable division with
30 % of net sales
Billion Dollar Brands
•Ariel
•Dawn
•Downy
•Duracell
•Gain
•Tide
Half billion dollar brands
•Ace
4
Beauty andGrooming
This Division accounted for 24% of netsales and contributed
for 23% of netearnings
Billion Dollar Brands
•Head& Shoulders
•Olay
•Wella
•Pantene
5
Objectives
6
Global expansion
North America represented 42% of sales; Western Europe, 21%; Asia, 15%; Central
and Eastern Europe and the Middle East and Africa, 13%; and Latin America, 9%;
Developed markets represented 66% of 2010 sales.
7
Entering new markets
“P&G’s approach to entering new markets was via
“acquisition or joint venture on a small scale, and through trial and error,
Learn the formula for success before making a major commitment.”
8
Attaining Growth
9
Figures
10
What are the strategies taken up bythe
companyto Appeal to it‘s customers ?
11
WhyGeographicand Demographic marketing..?
Customized by region. In South Korea, P&G limited advertising to a few niche television
channels, with greater emphasis on huge outdoor displays at a Seoul shopping center
In Japan, the campaign focused on mobile devices.50 For Safeguard soap in Pakistan,
the firm created a superhero, Commander Safeguard, with his own television show,
music videos and website
12
Advertising through Television ..?
Daytime Dramas- As the World Turns, Soap operas, Another World,
The Young and the Restless, and Guiding Light(1956)
Web series - My Black is Beautiful, Buppies(2010)
Though conventional, mass marketing always helps to reach to wide range of customers
13
Why Sponsorships?
U.S. Olympic team sponsor for the 2010 Games, 2012 winter games in Russia,
2016 summer games in Brazil, National Football League (NFL) sponsorship gave
consumers opportunities to engage with the NFL
Sponsorships help in a way to enhance a more friendly image, increase the
word of mouth, reinforce the perception made by the customer and
expressing commitment on social issues
14
Digital marketing …?
BeingGirl.com: Launched in 2000, provided information and expert advice
on “issues that Teenage girls might be too embarrassed to ask a parent or doctor about,
such as menstruation, Eating disorders, acne and dating.
Pampers.com: The website contained product information, similar to the other brand
websites under P&G, but also provided information for new and expectant mothers and
served as an interactive forum.
Manofthehouse.com : Which featured household advice for men, including tips on grilling
burgers cleaning toilets, and disciplining children. In contrast to other similar sites focused
on single men and heavy on sex advice.
Reflect.com: Lets customers customize P&G cosmetics and fragrances.
Create awareness, show points of differences, product choices against competitive
Brands. Virtual marketing lowers the investment and proven to be efficient way of
marketing when selected in a particular geography.
15
Integrated marketing
communications(advertising,
promotion, sales, events and
public relations) : pampers, Pepto-Bismol, Braun, old spice,
Pantene, cover girl
Interactive Community Promotion : Tide, Charmin
(Ad campaigns which emphasizes
emotional branding)
(Thank you mom, Loads of hope)
Integrated marketing communications
16
17
Multi-Branding
Multi-Branding particularly helps in repositioning the company according to the
customer needs.
(1) Obtaining greater shelf space and leaving little for competitors' product
(2) Saturating a market by filling all price and quality gaps,
(3) Catering to brand-switchers users who like to experiment with different brands, and
(4) Keeping the firm's managers on their toes by generating internal competition.
Product developmentStrategies
•Connect and develop
•Customer centric marketing
18
Connect & develop
Replacing the trial-and-error methods commonly pursued at the time, P&G took a
scientific approach and connected R&D with the company’s sales and marketing.
First-time products included Crest toothpaste (1955),the first toothpaste with fluoride
,Head & Shoulders dandruff shampoo; and Pampers disposable diapers (1961).
(Durk Jager)
19
Customer-centric marketing
Customer centric marketing : Why customer experience is necessary
because it builds the brand equity and brand’s competitive edge
over the other companies
Two moments of truth: First, on the store shelf; and Second, when the consumer
used the product and decided whether it delivered on its promise.
“Consumer-centric marketing makes no assumptions. It begins with
‘Who is your consumer, and what’s different about her?’ It sounds like such a
simple question, but if you went to most companies and asked that question, you
wouldn’t get a very satisfactory answer.
(Lafley,Stengel)
20
21
Analysis
From the exhibits, we observe that P&G is a market leader in the fabric and home care
segment.
•The company is struggling to secure a position in the snacks and pet care segment(with
4% and 3% in the sales and earnings.
• While losing these markets is one such option,
P&G can tackle these challenges through ad campaigns
22
Strategies to upliftthe under performing markets
Events:
•Sponsorships
•Ad campaigns
23
Sponsorships
Sponsoring an event improves the perception of the market about their company.
It improves the visibility of the company and impacts the sales indirectly.
24
Ad campaigns
Ad campaigns include social activities, merchandise to
promote it’s products.
25
A Presentation by
S. Rahul Nanda,
VIT university,
Vellore.

P&G case study analysis

  • 1.
  • 2.
    Who arethe keypeople...? 1 DurkJager (CEO) 2 Lafley(CEO) 3 Stengel(CMO) 4 Kotchka(Head of R&D & Design) 5 Pritchard (Multibrand manager) 6 McDonalds (Current CEO) 2
  • 3.
    Businesses Beauty Segment Grooming Segment Healthcaresegment Snacks& Pet care segment Fabriccare &Homecare segment Baby Care & Family Home care segment 3
  • 4.
    Fabricand Homecare Fabric andhomecare segment is the most profitable division with 30 % of net sales Billion Dollar Brands •Ariel •Dawn •Downy •Duracell •Gain •Tide Half billion dollar brands •Ace 4
  • 5.
    Beauty andGrooming This Divisionaccounted for 24% of netsales and contributed for 23% of netearnings Billion Dollar Brands •Head& Shoulders •Olay •Wella •Pantene 5
  • 6.
  • 7.
    Global expansion North Americarepresented 42% of sales; Western Europe, 21%; Asia, 15%; Central and Eastern Europe and the Middle East and Africa, 13%; and Latin America, 9%; Developed markets represented 66% of 2010 sales. 7
  • 8.
    Entering new markets “P&G’sapproach to entering new markets was via “acquisition or joint venture on a small scale, and through trial and error, Learn the formula for success before making a major commitment.” 8
  • 9.
  • 10.
  • 11.
    What are thestrategies taken up bythe companyto Appeal to it‘s customers ? 11
  • 12.
    WhyGeographicand Demographic marketing..? Customizedby region. In South Korea, P&G limited advertising to a few niche television channels, with greater emphasis on huge outdoor displays at a Seoul shopping center In Japan, the campaign focused on mobile devices.50 For Safeguard soap in Pakistan, the firm created a superhero, Commander Safeguard, with his own television show, music videos and website 12
  • 13.
    Advertising through Television..? Daytime Dramas- As the World Turns, Soap operas, Another World, The Young and the Restless, and Guiding Light(1956) Web series - My Black is Beautiful, Buppies(2010) Though conventional, mass marketing always helps to reach to wide range of customers 13
  • 14.
    Why Sponsorships? U.S. Olympicteam sponsor for the 2010 Games, 2012 winter games in Russia, 2016 summer games in Brazil, National Football League (NFL) sponsorship gave consumers opportunities to engage with the NFL Sponsorships help in a way to enhance a more friendly image, increase the word of mouth, reinforce the perception made by the customer and expressing commitment on social issues 14
  • 15.
    Digital marketing …? BeingGirl.com:Launched in 2000, provided information and expert advice on “issues that Teenage girls might be too embarrassed to ask a parent or doctor about, such as menstruation, Eating disorders, acne and dating. Pampers.com: The website contained product information, similar to the other brand websites under P&G, but also provided information for new and expectant mothers and served as an interactive forum. Manofthehouse.com : Which featured household advice for men, including tips on grilling burgers cleaning toilets, and disciplining children. In contrast to other similar sites focused on single men and heavy on sex advice. Reflect.com: Lets customers customize P&G cosmetics and fragrances. Create awareness, show points of differences, product choices against competitive Brands. Virtual marketing lowers the investment and proven to be efficient way of marketing when selected in a particular geography. 15
  • 16.
    Integrated marketing communications(advertising, promotion, sales,events and public relations) : pampers, Pepto-Bismol, Braun, old spice, Pantene, cover girl Interactive Community Promotion : Tide, Charmin (Ad campaigns which emphasizes emotional branding) (Thank you mom, Loads of hope) Integrated marketing communications 16
  • 17.
    17 Multi-Branding Multi-Branding particularly helpsin repositioning the company according to the customer needs. (1) Obtaining greater shelf space and leaving little for competitors' product (2) Saturating a market by filling all price and quality gaps, (3) Catering to brand-switchers users who like to experiment with different brands, and (4) Keeping the firm's managers on their toes by generating internal competition.
  • 18.
    Product developmentStrategies •Connect anddevelop •Customer centric marketing 18
  • 19.
    Connect & develop Replacingthe trial-and-error methods commonly pursued at the time, P&G took a scientific approach and connected R&D with the company’s sales and marketing. First-time products included Crest toothpaste (1955),the first toothpaste with fluoride ,Head & Shoulders dandruff shampoo; and Pampers disposable diapers (1961). (Durk Jager) 19
  • 20.
    Customer-centric marketing Customer centricmarketing : Why customer experience is necessary because it builds the brand equity and brand’s competitive edge over the other companies Two moments of truth: First, on the store shelf; and Second, when the consumer used the product and decided whether it delivered on its promise. “Consumer-centric marketing makes no assumptions. It begins with ‘Who is your consumer, and what’s different about her?’ It sounds like such a simple question, but if you went to most companies and asked that question, you wouldn’t get a very satisfactory answer. (Lafley,Stengel) 20
  • 21.
    21 Analysis From the exhibits,we observe that P&G is a market leader in the fabric and home care segment. •The company is struggling to secure a position in the snacks and pet care segment(with 4% and 3% in the sales and earnings. • While losing these markets is one such option, P&G can tackle these challenges through ad campaigns
  • 22.
    22 Strategies to uplifttheunder performing markets Events: •Sponsorships •Ad campaigns
  • 23.
    23 Sponsorships Sponsoring an eventimproves the perception of the market about their company. It improves the visibility of the company and impacts the sales indirectly.
  • 24.
    24 Ad campaigns Ad campaignsinclude social activities, merchandise to promote it’s products.
  • 25.
    25 A Presentation by S.Rahul Nanda, VIT university, Vellore.