1) Procter & Gamble is a global leader in consumer goods with over two dozen $1 billion brands. 2) In 1999, P&G struggled with slowing growth and high costs, but addressed this by reorganizing into 7 global business units and establishing 6 "connect-and-develop" hubs to improve innovation. 3) To reach unserved customers, P&G uses consumer-centric marketing, multibranding, design innovation, and advertising through various channels including digital, social media, and sponsorships.

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

3. William Procter and James Gambler
Founders:

6. We will provide branded products and services of
superior quality and value that improve the lives of the
world's consumers. As a result, consumers will reward
us with leadership sales, profit, and value creation,
allowing our people, our shareholders, and the
communities in which we live and work to prosper.

7. To be recognized as, the best
consumer products and Services
Company in the world.

9. • Global Leader in Branded Consumer goods
• Has 2 dozen $1bn brands known worldwide
• First company to advertise directly to
consumers.
• 2010, total sales=$78.94bn
• Net Income=$12 bn
• Market capitalization=$186.63bn

10. Current Picture of its success

11. Organizational Structure

12. Analysis of Net Sales
Source: Procter&Gamble,2010 Annual Report

14. 1)How firm struggled with
controlling costs and how
they fixed it?
2)How to build business with
unserved and underserved
customers?

18. How firm struggled with controlling costs
and how they fixed it?
• In 1999, Net sales slowed to 2.6% growth.
• Firm promised to deliver more innovation.
• 7 Global Business Units(GBU) replaced existing 4 Geographic
Business Units.
• This helped in achieving Innovation vitality- bigger innovations,
faster speed to market and greater growth.
• Started a “Connect-and-Develop” program.

20. • Under this program, 6 connect-and-develop hubs(in China, India,
Japan, Western Europe, Latin America and US) were established.
• Hubs focused on products and technologies specific to the
specialties of the hub’s region.
• Connect-and-develop helped P&G adapt and develop new skills.
• by 2006, P&G’s R&D productivity increased by 60% and firms
innovation success doubled.
• This also led to a simultaneous drop in cost of innovation.
• R&D investment as a percentage of sales dropped from 4.8% in
2000 to 3.4% in 2006.

21. How to build business with unserved and
underserved customers?
Building business with unserved and
underserved consumers through consumer-
centric, digital, direct and neuromarketing,
multibranding and interactive community
promotion.

23. • Multibrand Stratergy: Brands of different product lines got
individual support and satisfied a segment of the market.
• Design Innovation & Strategy unit: A culture of design
introduced in P&G which complemented function driven
process.
• Consumer centric marketing: keeping itself relevant and
customized with respect to the needs of people.
• Focused on two moments of truth-
1. On the store shelf.
2. customer satisfaction and feedback.

25. • Firm conducted various Qualitative and Quantitative
researches like interviews, ran focus group discussions, instore
interviews, etc.
• They started Personal Endorsement Approach.
VOCALPOINT, P&G’s word-of-mouth program was a huge
hit.
• Consumer interests, habits and satisfaction were measured by
online grocer sites and Neuromarketing, building one-to-one
relationship with customers.

27. • P&G relied on developing long standing partnerships with
advertising agencies to develop robust brand identities for its
portfolio of consumer goods.
• P&G advertised directly to consumers by passing the
established network of wholesalers, distributors and retailers.
• “Media Neutral” Advertised in different and relevant local
languages in less familiar markets.
• P&G advertised through innovative channels like dramas, T.V
commercials and Operas.
• Soon firm shifted its aim towards a more “Design and Emotion
driven advertising” along with the benefits and functionality.

29. • P&G sponsored the US Olympic team in 2010, 2012 and
2016 games.
• P&G was indulged in Fitness campaign through NFL
sponsorship.

31. • During the recession, P&G shifted to coupons and in-store
promotional activities to maintain the same media presence.
• P&G increased ad spending by $1 billion with a 20% increase
in media impressions.
• McDonald maintained same level of spending, while shifting
dollars to digital advertising and other new media to broaden the
audience.

33. • Niche Experimentation through online serials, video games and
YouTube channels for specific products.
• Mobile Marketing ad campaign, TV commercials and print
media advertisements had an online presence.
• “My Black is Beautiful” line of products showcased with 2 web
series attracted over 3 million views.
• Old Spice television commercial and YouTube sensation “The
Man Your Man Could Smell Like” gave P&G its greatest
exposure.
• It bridged the power of digital and social media.

35. • Launched two social media sites: Capessa for
women on Yahoo! Health and the People’s Choice
Community, associated with the People’s Choice
awards.
• Started using FACEBOOK as a marketing
supplement.
• In 2011, P&G rolled out Manofthehouse.com which
featured advice for men and aimed to “speak to the
whole man”.

37. • P&G started highly successful post Katrina campaign, “Loads of
Hope”.
• T-shirts having slogans “Be seen, not spotted” were endorsed
celebrities to promote tide and Febreze.
• A mass promotional activity held in Times Square targeted
holiday shoppers, generated YouTube ads and attracted youth.
• An innovative and including restrooms and spotless toilets used
to promote Charmin toilet paper, and tourists loved it.