Founded in 1837, Procter & Gamble is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio. P&G has over 120,000 employees and sells its products in over 180 countries. P&G's portfolio includes over 60 brands such as Tide, Pampers, Charmin, Bounty, Dawn, Febreze, Gillette, Olay, Old Spice, Pantene, and Crest. Throughout its history, P&G has grown significantly through acquisitions and innovation in product development, marketing, and operations. P&G remains focused on developing new products, expanding into new markets, and leveraging digital platforms to connect with consumers globally.

2. Company
Backgroundc

3. 1837 - P&G FOUNDER

4. Founded-1837*(American MNC)
Headquarters-Cincinnati,Ohio,Usa
Key People-A.G Lafley,(Chairman,President &Chief
executive)
Industry-Consumer goods
Revenue-US$ 84.7 billion(2013)
Employees-121,000(2013)
Website-www.pg.com
Products are available in 140 countries

5. P&G Vision & Mission
 Vision
To be recognized as,the best consumer products and Services Company in the world.
• Mission
We will provide branded products and services of superior quality and value that improves the lives of the
World’s consumers.
• Values
 Integrity
 Leadership
 Ownership
 Passionfor winning
 Trust

6. Products

7. Brands
 Expanded new lines of business through brand
acquisitions.

8. Company Timeline
Started International expansion---- 1930
First T.V commercial for Ivory soap---- 1930
First R&D Lab---- 1887
Began to enter markets in Latin America, Western Europe, & Japan---- 1945
Crest Toothpaste---- 1955
Charmin Paper Mill---- 1957
Pampers,Downy,Bounce---- 1961
Folger’s Coffee---- 1963
Crush International---- 1980
Citrus Foods(Frostproof),Norwich Eaton Pharmaceutical,Richardson-Vicks---- 1981
MetaMucil---- 1985
Noxell(Covergirl & Noxzen)----
1990
Maxfactor ---- 1991
Sales dropped by 2.6%Cutoff 15000 staff,7GBU to 4GBU----
A.G Laffley,C.E.O;Jim Stengel,CMO---- 2000
Sampling Program----
Pet Food----
Gillete---- 2005
McDonald as C.E.O---- 2010
Digital & Mobile Marketing,sponsorships to Olympics,NFL etc.,----

9. Case Facts
 Global leader in Branded ConsumerGoods
 Has 2 dozen $1 billion brands worldwide
 First company to advertise directly to consumers
 2010,netsales=$78.94 billion
 Net income=$12 billion
 Market Capitalization=$186.63 billion

10. % of net…0
10
20
30
40
50
Beauty&…
Health&well…
Householdcare
% of net sales
% of net
sales
% of net…0
10
20
30
40
50
Beauty&…
Health&Well-…
Householdcare
% of net earnings
% of net
earnings

12. Year Net Sales in Billions
of Dollars
2006 $64.4
2007 $72.4
2008 $79.3
2009 $76.7
2010 $78.9
75
75.5
76
76.5
77
77.5
78
78.5
79
79.5
2010 2009 2008
NET SALES(Bn
Dollars)
NET
SALES(Bn
Dollars)
Recession

13. 31
31.5
32
32.5
33
33.5
34
34.5
2010 20092008
DEVELOPING
MARKETS(% of net
sales)
DEVELOP
ING
MARKET
S(% of net
sales)

14. Financial Highlights
Amounts in millions,except
for share amounts
2010 2009 2008 2007
Net Sales $78,938 $76,694 $79,257 $72,441
Operating Income($) 16,021 15,374 15,979 14,485
Net Earnings($) 12,736 13,436 12,075 10,340
Net Earning Margin from
Continuing Operations*
13.9% 13.9% 14.2% 13.3%
Diluted Net Earnings per
Common Share from
Continuing Operations*
$3.53 $3.39 $3.40 $2.84
Diluted Net Earnings Per
Common Share*($)
4.11 4.26 3.64 3.04
Dividends Per Common
Share*
1.80 1.64 1.45 1.28

15. Strategies by Durk Jager
Year 1999.
Situation - Net sales slowed to 2.6% growth from previous year i.e.,1998.
What he did?
 Cut 15000 staffs-promisedto deliver more innovations.
 4 Geographic business units replaced by 7 global business units based on product category.
 50% innovations-inside P&G Labs
• 50% through the labs i.e., partnerships and connections with non-P&G scientists and engineers.
• Expanded it’s digital content offeringwith the launch of Pampers.com-an early online
community for mothers and family parents.
Who Supported?
• A business development team
• A venture team created by the business development team
• Market Development Organizations
Aim in mind
• Bigger innovation
• Faster speed to market
• Greater growth

16. Durk Jager

17. Insider‟s estimation
• For every P&G researcher(7500) inside,200 scientists and engineers elsewhere in the world
i.e.,1.5 million researchers beyond.
This new structure and approach to innovation—called „ Connect & Develop‟
Results:
Success
• Led to successful product introductions
such as Swiffer Dusters, Olay
Regenerist, Crest Whitestrips, And
Crest Spinbrush.
• Swiffer Dusters grew up to be half-
billion dollar brand
• Olay and crest grew up to be billion
dollar brands.
Glitches
• Firm struggled to control costs
• Stock slid from $118 to $52 over 18
months.

18. Strategies by A.G Lafley

19. Year 2000
Goal set by Lafley
To make P&G the top product-design company in the
world.
What he did?
• Named Jim Stengel as CMO(chief marketing officer)
• Created a new design unit,separate from other business
units
• Named Claudia Kotchka as vice president for design
innovation and strategy
• Acquisition of Gillette in 2005 for $57 billion.
Result
Acquisition of Gillette made P&G the top consumer good’s company.

20. What Claudia Kotchka did?
• Hosted a “design tasting”,featuring design case studies for P&G’s top 200
executives.
• Created a P&G design board similar to Mattel and Nike.
• Created Clay Steel Project which brought cross-sectional teams from their jobs to
create new brands based on design.
Results
• Design informed the innovation process and even changed the function of some
products such as Tampax Pearl’s more comfortable applicator.
• P&G’s brand faced two moments of truth-first on store shelf and second
when consumers used the product and decided whether it delivered on it’s
promise.

22. What CMO Stengel did?
• Started a more consumer centric marketing.
• (ex.,Website reflect.com which let customers customize P&G products,
• Sampling programs)
• Brought a sharper focus to return on marketing
investment(ROMI)
• (ex.,Project Apollo)
• Developed metrics that measured brand loyalty and customer
relationships.

24. 2008-early 2009
Recession
Company activities:
• P&G wooed recession-wary consumers with more focussed attention to in-store
promotions.
• P&G introduced store-back approach , intended to shift P&G’s mindset to the
shopper marketing experience( Pamper’s 2008 campaign donated funds for one
tetanus vaccine in developing markets for each pack of specially marked diapers sold.)
• Multibranding or leveraging the P&G brand to drive sales to it’s sub-brands.
• P&G took a stake in Ocado-a U.K based online grocer for mainly understanding
how consumers used the internet and engaged in e-retailing.
• Maintained it’s marketing budget, with more fraction of it being shifted to
coupons and in-store promotional activities.

25. Strategies by Bob McDonald
Year 2010 & onwards
Aim/focus
• Grow P&G’s core brands and categories with an unrelenting focus on
innovation.
• To build P&G’s business with unserved and undeserved consumers.
Reach
“More consumers, in more parts of the world, more completely”.

26. Bob McDonald

27. Initiatives taken
 A successful advertising campaign for the 2010 Winter Olympics,
which combined 18 P&G brands under a common message and
featured a commercial that thanked moms around the globe for
their efforts.
 P&G announced a partnership with Tobii; a leader in
eye tracking for their research.
• Sponsored 2012 winter games to be held in Russia.
• Sponsored 2016 summer games to be held in Brazil.
emotional
factor
innovation

28. • More Celebrity Endorsements
Sofia Vergara, Roger Federer, Alex Ovechkin, Sebestian Vettel, Eva Mendes, Naomi
Watts
• Increased Ad spending by $1 billion with 20% increase in media
impressions. More part of marketing budget shifted to digital
advertising & other new media.
• Began using Facebook as a marketing tool.

29. Results
• The collection sales grew 20% in the first half of 2010,74 and second-quarter
dollar share increases for Pantene were up 14%, 4% for CoverGirl, and 3% for
Olay.
• P&G’s Old Spice television commercial and YouTube sensation, “The Man Your
Man Could Smell Like,” gave P&G its greatest exposure in the online community
in 2010, and bridged the power of digital and social media.
• TV series & web series on the line of “My Black is Beautiful” products, targeting
African American women attracted more online consumers.

30. A Brief Overall Analysis

31. Market Segmentation
Each brand must be positioned for it’s target segment
and a single Proctor and Gamble brand cannot have one
positioning for all P&G ‘s segments.

32. SWOT Analysis
Strengths
1.Diversified brand portfolio
2.Research and development
3.Global Operation
4.Strong Distribution Network
Weaknesses
1.Online media & Leadership
2.Dependency
3. Brand cannibilazation
Opportunity
1.Diversification
2.Capitalizing on online media
3.Growth in Indian FMCG market
4.Environment concern
Threats
1.Competition
2.No new product innovation

34.  Commercial ads through broadcast media.
 Customized ads by region to enter company’s global market
 P&G TV ads focused on functionality and emotional
connection.
 P&G also pursued sponsorship and celebrity endorsements
 In 2010,P&G shifted marketing budget to digital
advertising and other online medias.

35. • According to the mission statement, delivering products that satisfy consumer needs.
The culture at P&G is also influenced by the brand management system.
• P&G wants to satisfy the consumer in a superior way to win the competition and
achieve leading positions in the market.
• Successful companies are better educated about consumers , competitors and
distibutors than their rivals.
• To acquire knowledge about consumers and competitors,P&G conduct monthly
analysis of nielsen data,regularly check stores to ‘feel the market’ and to pick up any
changes in consumer attitudes or the competitive context,organise qualitative
consumer testing,and running monthly evaluations of new product launch.

37. Advertising
Early innovations included sponsorship
of daytime radio dramas (1932) and
television commercials (first aired in
1939). Soap operas owed their existence
to P&G: the daytime drama As the
World Turns was launched in 1956 to
specifically target women in their
homes. Another World, The Young and
the Restless, and Guiding Light were
other longtime P&G-sponsored daytime
dramas.

38. Sponsorships
P&G, a U.S. Olympic team
sponsor for the 2010 Games,
became a worldwide sponsor,
specifically to raise its
visibility in emerging markets,
for the 2012 winter games to
be held in Russia and the 2016
summer games in Brazil. A
National Football League
(NFL) sponsorship gave
consumers opportunities to
engage with the NFL, “just for
choosing P&G brands,”

39. CoverGirl spokespersons Christie Brinkley,
Drew Barrymore, Ellen DeGeneres, and
Queen Latifah. P&G also developed
numerous celebrity endorsements. Most
recently, television show Modern Family
actress Sofia Vergara was named
spokesmodel for CoverGirl cosmetics in
May 2011 for an ad campaign launching in
January 2012. Taylor Swift also joined the
company for the CoverGirl brand.
Celebrity Endorsements

40. Sofia Vergara & Ellen Degeneres
Christie Brinkley
Queen Latifah

41. NHL player Alex
Ovechkin was named
a Gillette Brand
Ambassador.
Tennis star Roger
Federer was featured
in Gillette Fusion
Products ads in the
U.K. in 2010.

42. BeingGirl.com,
launched in 2000,
provided information
and expert adviceon
“issuesthat teenage
girlsmight be too
embarrassed toaska
parent or doctor about,
such as menstruation,
eating disorders, acne
and dating
P&G developed a
“response”
campaign, with
180 videos
featuring “The
Old Spice Guy”
responding to
questions posed
by fans, bloggers,
and celebrities.
These generated
over 2 billion
media
impressions.
Digital
marketing

43. Lessons learnt from long years of marketing
Five strategic lessons:
Never give your consumer a product-based reason to switch away from
your brand.
Think of every brand that we have, and treat every brand that we have,
as though it were our only brand.
Always determine whether a product innovation is brand-specific or
generic.
Competition will always follow your technology, not your brand.
After you have defined your options, always test your worst-case
scenario in the market. If you don’t, and if you have made the wrong move,
the market will be the worst-case scenario

44. Moving
forward
Building on its strengths in R&D, consumer research, and
product performance, P&G continued to evolve and
innovate as the world’s largest marketer.