P&G has a long history dating back to 1837 and is a global leader in consumer goods. It has a wide portfolio of brands and focuses on innovation through R&D. P&G reorganized into global business units in 2007 to boost growth. It emphasizes design-led innovation and a consumer-centric approach. P&G utilizes various marketing strategies like multi-branding, advertising, sponsorships, celebrity endorsements, and digital and social media marketing. It continues to focus on understanding consumer needs to develop new products and reach audiences through evolving channels.

1. P&G-Marketing
capabilities
HBS case study

2. Overview
History
Brands
Situation analysis
Objectives
Disclaimer
Some points where P&G should focus

3. ● Founded in 1837 by candlemaker William Procter and soapmaker James
Gamble.
● It is a company that makes mostly daily use products.
History of P&G

4. ● It was the first company to advertise directly to the consumers ,in the
1880’s.
● The company started it’s international expansion in the 1930’s and in 1945-
1980,it began to enter market in Latin America,Western Europe and Japan.
● It is considered to be a global leader in branded consumer goods and
known for category defining products.
History of P&G

5. ● The company is known for it’s impressive brand portfolio.
● The company also produces brands in several sizes and forms and use
their parent brands to launch new products.
● Some of the well known brands of P&G are Tide,Gillette,Vicks etc.
Brands

6. • Has two dozen 1 billion dollar brands known worldwide.
Brands

7. Brands

8. • P&G is a company with good company background and is also the market
leader in the Fast-Moving Consumer Goods(FMCG) sector.
• The company has a firm belief in innovating and constantly improving
their products & brands.
• The company aims to serve 5 Billion consumers worldwide.
• The company has very great brand portfolio and also,great application of
brand extension and multi branding strategy.
Situation Analysis

9. • Given below are the net sales and organisation structure.
• Net sales in developing countries has increased marginally from 2008 to
2010.
Situation Analysis

10. • North America represented 42% of net sales , Western Europe represented
21% of net sales,Asia 15%,Central and Eastern Europe and Middle East
and Africa 13% and Latin America 9%.
• Developed countries represent 66% of total sales in 2010.
Situation Analysis

11. Situation Analysis

12. • To know about the different marketing channels used by P&G.
• To know marketing strategies used by P & G .
• To know about the significance of innovation and R&D in success of P&G.
Objectives of case study

13. • P&G reorganised itself to boost growth after the net sales slowed down to
2.6% .
• P&G felt the GBUs would help with global product development and quick-
to-market strategies.
• Seven global business units (GBUs) based on product categories replaced
the company’s four geographic business units.
Innovation & R&D - The Secret Sauce

14. • Three new teams supported the GBU’s :
• Business development team focussed on innovating in existing categories.
• A venture team tasked with acquiring brands in new areas.
• Market development organisations to perform the intensive research to ensure global
products’ success in local markets.
• 50% of the innovation came from P&G’s labs and 50 % of innovation came
through the labs -partnership and connections with non P&G scientists.
Innovation & R&D - The Secret Sauce

15. • This strategy was called the “Connect & Develop “ strategy.
• However , firm struggled to control costs and it’s stock slid from $118 to
$52 in 18 months.
• But, CEO Lafley remained committed to reorganisation and believed that it
would deliver the innovations promised.
Innovation & R&D - The Secret Sauce

16. Innovation & R&D - The Secret Sauce

17. • Lafley created a new design unit different from other business units for
design innovation and strategy .
• Lafley made Claudia Kotchka as the Vice president for the design
innovation unit.
• Lafley also appointed Jim stangel as the new CMO.
The focus on design

18. • Claudia Kotchka tried to introduce a culture of design through a number of
steps such as-
• “Design tasting” featuring design case study for P&G’s top 200 marketing executives.
• Creation of “clay street “project bringing cross functional teams to create new brands
based on design.
• P&G used design as a complement helping consumers
recognize,understand and in some cases ,even imagine the functions of a
given product.
• The influx of design had a strong impact on product development of P&G.
The focus on design

19. Claudia Kotchka tried to introduce a culture of design through a number of
steps such as-
“Design tasting” featuring design case study for P&G’s top 200 marketing executives.
Creation of “clay street “project bringing cross functional teams to create new brands based
on design.
P&G used design as a complement helping consumers recognize,understand
and in some cases ,even imagine the functions of a given product.
The focus on design

20. • This kind of emphasis on design moved the P&G towards a more
consumer centric approach .
• Now , the focus of company shifted from product development to the
design innovation and consumer centric approach.
• Also brought their focus on Return on Marketing Investment(ROMI).
• Also associated themselves with “Project Apollo” which helped
themselves understand consumers better.
Consumer centric approach

21. • Qualitatively,it ran focus group discussions,interviews of customers at
home and in-store interviews.
• Quantitatively, they gathered data on consumers,did large scale study of
habits and practices of the consumers who purchased P&G products.
• Used the emotional branding .
Consumer centric approach

22. • The firm is well known for marketing several brands in the same product
category.
• Some examples are Head & shoulders and pantene, OralB and crest , Tide
& Ariel etc.
• They are also known for producing brands in several sizes and forms and
launching of new brands under the name of parent brand.
• They also used emotional branding which is evident from “Thank You
Mom” campaign.
Multi brand Strategy & Brand Extension

24. • P&G mostly relied on television commercials,dramas and operas to sell
their products .
• The ads were based on their product superiority and clear functional
benefits of the product.
• P&G ,with the help of other agencies tried to develop the media neutral
idea that could be translated across a range of media
• They created a brand character named “commander safeguard “ in
Pakistan “ for safeguard soap.
Advertising

25. • The firm aimed to shift their advertisement towards more design and
emotion driven advertising.
Advertising

26. Advertising

27. • P&G has been involved in many sponsorship activities.
• The firm was the US team sponsor in the 2010 games , also sponsored in
2012 winter games in Russia , and 2016 summer games in Brazil.
• This helped the firm to increase its visibility .
• They also tied in with NFL’s play 60 initiative.
Sponsorships

28. P&G has been involved in many sponsorship activities.
The firm was the US team sponsor in the 2010 games , also sponsored in
2012 winter games in Russia , and 2016 summer games in Brazil.
This helped the firm to increase its visibility .
They also tied in with NFL’s play 60 initiative.
Sponsorships

29. • The firm used the celebrity endorsements to promote their brands.
• This help them affect the opinion leaders which helps in the growth of
brands .
• Roger Federer featured in gillette fusion product ads .
• NHL player named Alex Ovechkin was named the brand ambassador of
Gillette and starred in TV commercials promoting gillette fusion razors
and other new products.
• Many similar kind of endorsements was done by P&G for different brands.
Celebrity endorsements

30. The firm used the celebrity endorsements to promote their brands.
This help them affect the opinion leaders which helps in the growth of brands
.
Roger Federer featured in gillette fusion product ads .
NHL player named Alex Ovechkin was named the brand ambassador of
Gillette and starred in TV commercials promoting gillette fusion razors and
other new products.
Many similar kind of endorsements was done by P&G for different brands.
Celebrity endorsements

31. • The firm launched websites such as pampers.com which provided
product information and also served as interacting forum.
• P&G also used mobile marketing campaigns to publicize crest whitening
plus toothpaste in 2006.
• Digital marketing enabled a raft of niche segmentation targeted to specific
consumers including online serials , video games and youtube channels
for specific products.
Digital Marketing

32. • Old spice television commercial “the man your man could smell like “
gave the greatest exposure to the company.
• It was a successful campaign and also the video was one of the most
viewed videos of youtube.
• This campaign was seen as a milestone in P&G’s transition from mass
marketer to one to one digitized marketer.
Digital Marketing

33. • P&G maintained it’s marketing budget despite the recession in 2009 .After
that , it also started advertising on the social media.
• P&G launched two campaigns, capessa for women on yahoo! Health and
People’s choice community associated with people’s choice awards.
• Facebook was used as marketing supplement .
• P&G is known for identifying the needs of their consumers and providing an
alternative for it.
• An example of this is “manofthehouse.com”.
Social Media

34. • P&G needs to get more active on social media and work out on more
effective ways to reach people through social media.
• They should also develop their website.
• They should monitor their consumers time to time and understand their
needs .They should also try to reduce their cost of products.
• They should also keep a close eye on their competitors and just be ready to
answer their any move.
Some points where P&G should focus

35. P&G maintained it’s marketing budget despite the recession in 2009 .After that
, it also started advertising on the social media.
P&G launched two campaigns, capessa for women on yahoo! Health and
People’s choice community associated with people’s choice awards.
Facebook was used as marketing supplement .
Social Media

36. Disclaimer
This presentation is made by Shivam,IIT Kanpur under the guidance of Professor Sameer Mathur,IIM
Lucknow during an internship of marketing management.