Procter & Gamble is the largest consumer goods company founded in 1837. It manages over two dozen $1 billion brands worldwide through extensive research and innovation. P&G pursues a consumer-centric marketing strategy involving over 20,000 consumer studies annually. It focuses on deep understanding of target consumers and uses various advertising approaches including sponsorships, celebrity endorsements, and digital/social media marketing to promote its major products like Tide, Pampers, and Crest. Moving forward, P&G aims to directly involve consumers in product development and brand building.

1. Procter & Gamble: Marketing Capabilities
Harvard Business School Case

2. What is P&G and
where does it come
from?

3. Procter and Gamble(P&G) is the largest manufacturer of
consumer products
P&G is best known for its Iconic category-defining products.
One of the top 10 largest companies by market
capitalization
Mainstay in American business for over 150 years.
$83.62 billion in sales and $14.48 billion profit by 2012

4. Founded in 1837, headquartered in Cincinnati, Ohio by William
Procter and James Gamble

6. P&G manages two dozen $1 billion brands
known worldwide

7. P&G rich brand heritage

8. P&G pursued international expansion as early as 1930’s
From 1945 to 1980, penetrated many markets in Latin America, Western
Europe and Japan
By the early 1990’s, the company had become the US’s top cosmetic
company with the acquisition of Noxell and Max Factor
The $57 billion acquisition of Gillette in 2005 made P&G the top
consumer goods company
IN 2010, P&G set the TARGET to reach 5 BILLION CONSUMERS across
globe

9. What is P&G’s
Marketing Secret
Sauce?

10. How did they become so successful?

11. Well there is no Secret Ingredient

12. P&G major Asset is their never
ending Innovation and
Impeccable R&D

14. In 1887,P&G established an analytical lab, making it the first corporate
labs in the field of consumer goods.
P&G took a scientific and connected R&D with the company’s sales and
marketing
In 1999, 7 GBU’s based on product categories replaced companies 4
geographic business units to help them in implementing quick to
market strategies
Connect-and-develop strategy was implemented expanding the
borders of innovation
P&G stock slid but they maintained their commitment towards
innovation

15. P&G’s Marketing Strategy?

16.  Historically, P&G had pursued a multi-brand strategy with each getting
individual support an satisfying a segment of the market.
 In 2000, P&G set its goal to become a top product-design company in
the world, a departure from P&G’s past focus on function, performance
and price.
 P&G did not use design as an antidote to its function-driven process but
rather as complement, helping consumer recognize, understand, and
sometimes even imagine the function of a given product
 New Emphasis shifted the company towards more consumer-centric
marketing approach

17. What is Consumer-centric marketing ?

18. It begins with ‘Who is your consumer, and
what’s different about her?’

19. The Common theme is a deep understanding of the consumers
who offer the potential for growth
P&G strove to develop metrics that measured brand loyalty
and customer relationship
In 2008, P&G wooed recession-wary consumers with more
focused attention to in-store promotions such as coupons,
displays etc.

22.  P&G conducted over 20,000 research studies each year, and invested
over $500 million into developing and executing these studies.
 Qualitatively, P&G ran focus group discussions, interviewed consumers at
home, and performed in-context visits and in-store interviews.
 Quantitatively, P&G gathered data on consumers utilizing blind tests,
concept and use tests, and quality monitoring.
 New technologies also continued to provide P&G with ways to engage
and measure consumer interests, habits and satisfaction.

24. P&G’s Advertising Strategy?

25. P&G had been a marketing trailblazer from the
outset

26. P&G have relied heavily on developing long-standing
partnerships with advertising agencies to develop robust
brand identities for its portfolio of consumer goods.
One of the first example of P&G’s successful advertising
campaign for the 2010 Winter Olympics which featured the
commercial that thanked moms around the globe for their
effort.

28. P&G’s advertising had been built around the idea that
functionality would sell over emotional connection. Also,
they believed that equity of great brands has to something
that a consumer finds inspirational and an organisation
finds inspirational.

29. Sponsorships
P&G, a U.S Olympic team sponsor for the 2010 Games .
Worldwide sponsor for 2012 winter games and also 2016
summer games in Brazil.
P&G sponsor NFL and tied in with the NFL’s Play 60 initiative.

32. Celebrity Endorsements
P&G brought a number of celebrity endorsers, including stars like
Ellen DeGeneres, Eva Mendes and Naomi Watts.
Tennis legend Roger Federer was featured in Gillette Fusion
products and soon became huge hit
 2010, Sebastian Vettel, the “youngest ever” Formula One
champion, secured a long-term sponsorship with P&G to
promote Head & Shoulders shampoo.

34. Digital Marketing and Social Media
Throughout the 1990s, P&G’s digital activity had been limited to its
operations of brand websites.
By 1999, P&G expanded its digital content with the launch of
pampers.com and expanded it to 49 countries till 2007
P&G launched its first mobile marketing ad campaigns in 2006
promoting Crest Whitening Plus Scope toothpaste
Segmented Campaigns such as “My Black is beautiful” and “ The Man
Your Man Could Smell Like” garnered huge success.

37. P&G used Facebook as a marketing supplement, not a
replacement.
Manofthehouse.com was P&G’s earlier social media effort which
featured household advice for men.
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.

40. What are future
opportunities for
P&G moving
forward?

41. Historically the giant told consumers what they needed and
wanted, but now it have shifted its focus directly on consumers
and asks for their input up front.
This new outlook drives all of P&G’s planning and strategy, which
includes broadcasting commercials created by consumers and
building online communities dedicated to consumers favourite
P&G products.
P&G has found that consumers will build the brand themselves.

42. Major Products
1. Ivory – is a soap
2. Tide- is a brand of laundry detergent.
3. Pampers- is a brand of disposable diaper
4. Crest- is a brand of toothpaste
5. Always- is a brand of sanitary pads

45. P&G had a network of 70 technology entrepreneurs to
maintain its pace with the latest research.
Its key strategy ,Connect-and-develop had to combat P&G’s
long-standing centralization and internal focus.
Over its Journey, P&G have been successful in keeping the
cost of innovation low as a percentage of sales.

47. Conclusions
 As we know this market, also known as FMCG market have many
competitors for P&G.
During its time in the arena, P&G have focussed and targeted the
middle class segment for increasing the sales as well as market
shares.