P&G is a global leader in FMCG with over 2 dozen $1 billion brands. It was the first company to directly advertise to consumers in the 1880s. P&G dominates through various sub-brands and a huge portfolio. It has a strong focus on consumer research, innovation, marketing, and advertisement. P&G shows global domination with over 42% of sales from North America. The case study analyzes P&G's marketing capabilities and strategies such as strategic acquisitions, consumer focus, branding, advertising, sponsorships, celebrity endorsements, and digital/social media marketing. A SWOT analysis finds strengths in R&D, branding, and marketing but weaknesses in recalls and website. Opport

1. CASE STUDY
PROCTER AND GAMBLE:
MARKETING CAPABILITIES

2. CASE ANALYSIS BY :
NISHANT RAJ
IIT ROORKEE
UNDER THE GUIDANCE OF
PROF. SAMEER MATHUR
IIM LUCKNOW

4. PrOCTER AND GAMBLE
• Global leader in FMCG sector
• More than 2 dozen $1 billion brands
• First company to directly advertise to its consumers
in 1880s

5. BRAND PORTFOLIO

6. Billion Dollar Brands

7. Organizational Control System
• Market Development
Organizations
• Global Business
Services
• Corporate Finance
• Global Business
Units

9. Situational
Analysis(1)

10. SITUATIONAL ANALYSIS(2)
• Dominates FMCG sector through various sub-brands and a huge
brand portfolio
• Strong focus on Consumer Research,innovation,marketing and
advertisement

11. SITUATIONAL ANALYSIS(3)
• In 2010,P&G had a market capitalization of
$186.63 billion with net income of
$12.74 billion and sales of $12.74
billion
• P&G showed a global domination with more than
42% sales from North America,21%
from Western Europe and 15% from Asia

12. ORGANIZATIONAL STRUCTURE : LAG OR
lEADS

14. HISTORY(2)
• Started its international expansion in 1930s
• 1945-1980 : Entered the markets of Latin America ,
Western Europe and Japan
• 1957:Charpin Paper Mill acquired and 1963 : Acquired
Folgers Coffee
• 1980s : Extensive global expansion

15. HISTORY(3)
• 1991: P&G became US’s
top cosmetic company with
Noxell acquisition
• 2005 : Gillette’s acquisition
made P&G top consumer
company for $57 billion
• Company stocks lagged
and senior managers left at
that time

16. P&G LOGO EVOLUTION

17. WHY STUDY THIS CASE ?

18. CASE
OBJECTIVES :
STUDY OF USE
OF INTEGRATED
MARKETING
CHANNELS

19. CASE OBJECTIVES :
UNDERSTAND THE
MARKETING
STRATEGIES USED
BY P&G

20. CASE OBJECTIVES :
TO UNDERSTAND
THE SECRET SAUCE
TO MARKETING
SUCCESS:
INNOVATION

21. INNOVATION :THE SECRET SAUCE(1)
• Year 1887 marked the establishment of earliest marketing division
• Replaced the existing 4 geographical units with Global Business Units
• GBU :
A three team supported unit consisting of
1.Venture teams
2.Business Development Organization
3.Market Development Organization
• Company named the strategy :“Connect to Develop”

22. INNOVATION :THE SECRET SAUCE(2)
“50% new products in 90s developed in Labs and rest
with non-P&G scientists and engineers”
&
“Products like Swiffer Duster,Olay Regenerist,Crest
Whitestrips etc came into existence”

23. MARKETING AT P&G

24. MARKETING STRATEGY (1)
• Year 2000 : Lafleytook over as the new CEO of P&G
• Set up of a new product team…..and the focus shifted to
product design

25. THE NEW PRODUCT TEAM(1)
• Claudia Kotcha named as the VP for design innovation
• Jim Stangel appointed as the new CMO and shifted
emphasis to consumer centric marketing approach

26. THE NEW PRODUCT TEAM(2)
• Aim was to“design the purchasing experience” i.e.“the first
moment of truth”
• P&G design board created on lines of Nike & Mattel

27. THE NEW PRODUCT TEAM(3)
• Focus laid on Return on MARKETING
INVESTMENT(ROMI)-a technique to evaluate the
effectiveness of marketing strategies)
• Surveys designed, data collected and metrics developed
to measure brand loyalty and customer relationships

28. CONSUMER FOCUS
“P&G interacts with more than 5 million
customers over 100 countries and conducts more
than 20,000 research studies investing more than
$500 million to execute these studies”

29. CONSUMER FOCUS
Key research outputs :
• Advocacy(word of mouth) was the most powerful
marketing strategy as observed under VocalPoint
campaign
• Neuromarketing was the new research area identified

30. ADVERTISING
Media – neutral ideas used
could be translated across
a range of media
In 2011,majority of the
advertising was still done
through television

31. “A good brand
equity is that in
which both the
consumers and
the organization
feel
inspirational”

32. LEADERS OF OLYMPIC SPONSORSHIPS

33. SPONSORSHIPS
P&G has used sponsorships to market
its product very well. It has sponsored
various award shows, games and mega
events across the globe

34. CELEB ENDORSEMENTS

35. CELEB ENDORSEMENTS

36. MARKETING DURING
RECESSION
During 2009,the time of
recession, P&G maintained its
budget for marketing . It
resorted to coupons and in-store
promotional campaigns to lure
in consumers during recession

37. DIGITAL MARKETING AT
P&G
Earliest activities
limited to websites of
brand but it was only
after launch of
pampers.com P&G
was able to provide an
interactive platform….

38. Beinggirl.com
was P&G’s unique
digital marketing
strategy to
interact with Girls

39. Mobile marketing became an
integrated part of P&G’s
digital-marketing strategy.
Crest Whitening Plus marked
an entry for P&G in the mobile
marketing place….

40. Because….
P&G won accolades for its
TV series –“My Black is
beautiful” and this digital
marketing strategy grew its
sales by 20% in first half
of 2010.

41. P&G’s OLD SPICE CAMPAIGN

42. P&G’s OLD SPICE CAMPAIGN
Campaign went viral on Youtube
and adding as many as 94,000
followers on twitter marking a
shift for P&G from mass marketer
to one-on-one digitized marketer

43. SIGNAL…Bringing powerful
digital leaders together

44. SOCIAL MEDIA Campaigns

45. SOCIAL MEDIA CAMPAIGNS

46. Brand PHILANTHROPY
Brand Philanthropy
helps in creation of
good image about the
brand as was the case
in TIDE whose sales
got boosted after
Katrina campaign

47. ANALYSIS OF P&G’s ICONIC BRANDS

48. IVORY-MARKETING IN A RETRO STYLE
IVORY was the first directly marketed product to consumer by P&G.The soap has seen
different types of marketing – from neo-classical marketing to modern marketing.

49. TIDE
• TIDE was a breakthrough product
and passed several tests including
the risk of P&G brand’s
cannibalization
• The risk of launching the product
two year early bore heavy
returndsin terms of greater market
share.

50. PAMPERS – brand that created
the diaper market
P&G has managed to keep the costs of diapers low while it has
launched“Luvs”diapers for its premium customers…

51. CREST-The FIRST FLOURIDE
TOOTHPASTE
P&G worked with American Dental
Association
Fluoride toothpastes got generic
status in 80s and this made it to slip
out of the market
P&G responded to the threats by
introducing Crest Whitestrips

52. ALWAYS
• Always was P&G’s first global brand….Always Infinity
was another remarkable example of P&G’s innovation

53. SALES
High potential for P&G in developing countries market for growth

54. SWOT ANALYSIS:
STRENGHTS
• Strong focus on R&D
• Strong Brand Portfolio
• Strategic Acquisitions
• Consumer Focus
• Strong Marketing Team

55. WEAKNESSES
• Increasing
instances of
product recalls
• Poor Website
• Environmental
Issues

56. OPPORTUNITIES
• Growing Indian FMCG
market
• Expansion especially in
developing markets
• Growing interest of people
in green products

57. THREATS
• Creation of generic
product might lower
its value
• Change in younger
generation
preferences
• Global economic
conditions
• Intense competition
in industry

58. •Case Basics
•Situational Analysis
•Marketing Channels
•Marketing Techniques
•SWOT Analysis