P&G is a global consumer goods leader known for brands like Tide, Crest, and Pampers. It was founded in the 1800s and pursued international expansion starting in the 1930s. Through acquisitions, P&G expanded into new product categories. Today it manages over $1 billion brands and spends heavily on marketing, R&D, and consumer insights. P&G's success stems from innovation, strong brands, and marketing strategies that focus on design and building direct relationships with consumers.

1. Case Study Presentation
By Anurag Roy

2. Introduction
Procter & Gamble (P&G) is a global
leader in branded consumer goods
The company managed two dozen $1
billion brands known worldwide,
including Bounty, Crest, Downy/Lenor,
Febreze, Gillette, Iams, and Pampers.
It was the first company to advertise
directly to consumers, in the 1880s, and
it invented “soap operas” by sponsoring
radio and TV programming

3. Some of P&G’s Billion Dollar Brands

4. P&G Product Line

5. History
Started by William Procter and James
Gamble as a small business.
Pursued international expansion as early as
the 1930s, and from 1945 to 1980 it began to
enter markets in Latin America, Western
Europe, and Japan.
It expanded into new lines of business
through acquisitions, such as Charmin Paper
Mill (1957), which opened up the household
paper products market (toilet paper, paper
towels) for the company, and Folgers Coffee
(1963), giving P&G a presence in the food
category.

7. P&G Growth History
In the 1980s, P&G ramped up its global
expansion and developed its first global
brands, including Always/Whisper,
Pringles, and Pantene and it continued to
acquire brands.
By the early 1990s, the company had
become the U.S.’s top cosmetics company.
In 2003, the company entered the pet-care
market by acquiring pet food
manufacturer Iams (for $2.3 billion).

8. What is Current Situation?

9. P&G is a seasoned marketer with strong consumer research, a powerful innovation
network, an evolving marketing strategy, strong marketing talent.
World’s largest financial commitment to advertising, spending $8.68 billion in 2010.
2010 sales hit $78.94 billion; net income, $12.74 billion; and market capitalization,
$186.63 billion.2 Household care was 48% of P&G’s 2010 sales; beauty and grooming,
34%; and health and well-being, 18%. 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.

11. Innovation and R&D: P&G Marketing’s Secret Sauce
In 1887, a nephew of one of P&G’s
founders, who had a chemistry degree, set
up an analytical lab for the company,
laying the foundation for a professional
R&D division and establishing one of the
first corporate labs in the field of consumer
goods.
In June 1999, under then-CEO Durk Jager,
P&G reorganized to boost growth after net
sales slowed to 2.6% growth from the
previous year. P&G hoped the net result
would be “bigger innovations, faster speed
to market, greater growth—innovation
vitality.”

12. Innovation and R&D
Led to such successful product
introductions as the Swiffer
Dusters, Olay Regenerist, Crest
Whitestrips, and Crest
Spinbrush.
However, the firm struggled to
control costs, and its stock slid
from $118 to $52 over 18
months.

13. Marketing Strategy
When Lafley took over in 2000, he set a
goal to make P&G the top product-design
company in the world, a departure from
P&G’s past focus on function, performance,
and price.
Named Jim Stengel as chief marketing
officer (CMO). Lafley then created a new
design unit, separate from P&G’s other
business units, and named Claudia
Kotchka as vice president for design
innovation and strategy, giving her
decision-making responsibility equal to
that of P&G’s CMO and head of R&D.
It drove a new, intensified focus on design,
married to P&G’s long-standing focus on
product functionality and price.

14. Marketing Strategy
Sought to bring design to every step
of product development and
introduce a culture of design to
P&G.
The influx of design had a strong
impact on P&G’s product
development; design informed the
innovation process and even
changed the function of some
products, such as the Tampax
Pearl’s more comfortable applicator
P&G strove to develop metrics that
measured brand loyalty and
customer relationships.

15. Commitment to the Consumer
■ P&G had a long history of rigorous product and market testing
■ P&G invested more in market research than any company in the world,
interacting with more than 5 million consumers in almost 100 countries
■ Innovative approaches to consumer engagement led to new marketing and
promotional opportunities: one example was VocalPoint, P&G’s word-of-mouth
program that enrolled more than 600,000 women to pitch its products.
■ P&G’s culture of performance-driven products, as the firm leveraged new and
innovative ways to learn directly from consumers, while also building the
opportunity to create more direct, one-on-one relationships with the target
audiences.

16. Advertising
■ P&G had been a marketing trailblazer from the outset
■ 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.
■ In 2002, P&G reconsidered its advertising strategies to better meet the
company’s global markets and consumers. Working with agencies, P&G
began by first developing a “media neutral” idea47 that could be translated
across a range of media

17. Celebrity Endorsements
■ P&G’s acquisitions of several beauty
companies in the 1990s had brought a
number of celebrity endorsers into the P&G
stable
■ Examples- CoverGirl spokespersons Christie
Brinkley, Drew Barrymore, Ellen DeGeneres,
and Queen Latifah, television show Modern
Family actress Sofia Vergara, Taylor Swift,
Eva Mendes and Naomi Watts, Gisele
Bündchen, Stacy London, and Teri Hatcher.
■ Also feature sportspeople like tennis star
Roger Federer, Sebastian Vettel, the
“youngest ever”61 Formula One champion,
U.S. Olympic athletes.

18. Digital Marketing
■ Throughout the 1990s, P&G’s digital activity had
been limited to its operation of brand websites, but
the firm expanded its digital content offering in
1999
■ Launched its first mobile marketing ad campaign in
2006
■ It planned to reach a billion new customers by 2015
and it’s worldwide Olympic sponsorship, announced
in 2010, was one part of this effort.
■ P&G’s line of “My Black is Beautiful” products,
targeting African American women, introduced two
web series in 2010 to showcase its products
■ P&G’s Old Spice television commercial and
YouTube sensation gave P&G its greatest exposure
in the online community in 2010, and bridged the

20. Iconic Brands
Ivory
First product to be marketed directly to
consumers.
Relied heavily on magazine advertising
focused on a clear message of Ivory’s
purity.
Ads ran in magazines aimed at women in
their 30s with children, primarily The
Oprah Magazine, People, Parenting, and
Parents.
P&G spent about $3 million on the
promotion, including in-store
merchandising displays.

21. Iconic Brands
Tide
Originally developed during the height of World War II,
Tide (called Product X) was not just a new soap, but a
new synthetic formula for a detergent—a breakthrough
product.
To gain a two-year lead on the competition, the company
decided to risk going straight to market, despite the
chance Tide would cannibalize P&G’s other laundry soap
products.
With the introduction of top-loading washing machines,
P&G played up Tide’s compatibility with the new
appliances, which were enjoying huge popularity after
World War II.
Tide’s two-year lead on the competition made speed-to-
market an ingrained imperative for the firm, having an
impact on all aspects of the P&G system.

22. Iconic Brands
Pampers
A blockbuster brand that almost single-
handedly created the disposable diaper
category for the mass market, Pampers
evolved out of P&G’s experiments in
expanding its paper products line in the
1950s.
Pampers’ success, was the manufacturing
efficiencies P&G managed to achieve,
keeping up with demand while keeping costs
down and making the product affordable for
the average family.
Pampers.com, launched in 1999, created an
early online community for mothers and
other family members involved in child care
to find information, exchange tips and

23. Iconic Brands
Crest
The first toothpaste with fluoride, Crest was
also a category-defining product that had
gained iconic status along with P&G’s other
household names.
P&G worked with professional organizations
such as the American Dental Association
However, Crest’s success also helped ensure
the generic status of fluoride toothpaste, and in
the 1980s, Crest slipped in the market as
baking soda and whitening additives bolstered
competitors’ offerings.
P&G responded to these market threats by
expanding Crest’s brand franchise beyond
toothpaste.

24. Iconic Brands
Always
Always sanitary pads, launched in 1984, became P&G’s
first truly global product.
Was behind some of the biggest innovations in feminine
hygiene history, including the introduction of winged
pads in 1985 and ultra-thin pads in 1990.
As a global brand, P&G adapted Always (in size and
shape) to appeal to women across the globe, and in some
international markets, it was the first feminine hygiene
product ever marketed to consumers.

25. Summary
■ Introduction
■ Product Line
■ History
■ Growth
■ Current Situation
■ Innovation and R&D
■ Marketing Strategy
■ Connecting to the consumer
■ Advertising
■ Celebrity Endorsements
■ Digital Marketing
■ Iconic Brands

27. By Anurag Roy for Marketing Management Internship of
Prof. Sameer Mathur of IIM-L.
Anurag Roy Prof. Sameer Mathur