It's about marketing strategy opted by Procter & Gamble for becoming more globalized, enhancing sales, improving their global leadership potential, connecting with customers to understand their needs and to market & develop their products accordingly.

1. Procter and Gamble
Marketing capabilities

2. Introduction
• Procter an d gam ble is th e larges t m an u factu rer of con s u m er
p rod u cts .
• On e of th e top 10 larges t com p an ies by m arket cap italiz ation .
• Fou n d ed in 1837, h ead qu artered in Cin cin n ati by William Procter
an d Jam es Gam ble.
• Main s tay in Am erica bu s in es s for over 150 years .
• Kn own for s u cces s fu l bran d s , in trod u cin g n ew p rod u cts an d
m ain tain in g p op u larity.

3. Timeline : Growth and development
New stage of
innovation
1891-1945
Dynamic
growth
1945-1999
2000- Today

4. Timeline : Growth and development
New stage of
innovation
1891-1945
Dynamic
growth
1945-1999
2000- Today
•Expanded its operations to across the
nations.
• In depth understanding of consumer
needs.
• Progress to develop new products
• Established overseas subsidiary
through acquisitions
• Expanded its product lines to
toothpaste, paper, diaper and foods.
• Started focussing on healthcare,
cosmetics and fragrances through
acquisitions.
• Established a worldwide research and
development network.
• Started changing strategies to create a
competitive advantage.
• Focussed on growing categories and
brands.
• Merged with Gillette to increase its
product mix to 22 brands.

5. Industries
• Beauty
• Grooming
• Healthcare
• Snacks and pet care
• Fabric care and home care
• Baby and Family Care

6. Marketing strategy analysis
P&G’s marketing strategy has four component as
follows :
•Consumer and market centric research and approach
• Mergers and acquisitions.
• Designing and innovation.
• Advertisements and promotions.

7. Consumer Centric Research
Research method
Qualitative
Quantitative
•Group Discussions
• Interviewed consumers at home
• In-store interview
• Employed psychological surveys to measure mood
• Gathered data on consumers utilizing blind tests
• Concept and use tests
• Quality monitoring
• Large scale studies of habits and practices of consumers

8. Acquisitions and Partnerships
Acquisitions
• Charmin Paper Mill (1957) : Opened up the household paper products market
(toilet paper, paper towels) for the company
• Folgers Coffee (1963) : Gave P&G a presence in the food category.
• Crush International Limited (1980) : Get them into the soft drink industry.
• Norwich Eaton Pharmaceuticals (1981) and Richardson-Vicks : Pharmaceutical
industry
• Noxell (CoverGirl and Noxzema) (1989) : Led them to the top cosmetic
company in US.
• Gillette (2005) : Made P&G the top consumer goods company .

9. Designing and Innovations
• Started doing partnerships and connections with non-P&G scientists and
engineers to increase the input researchers.
• Nurturing ideas created by the business development team that did not relate to
an existing brand.
• Emphasize designing process to help consumers recognize, understand, and in
some cases even imagine the functions of a given product.
• 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
Global
Business
Units
Market
Development
Organisation
Perform
intensive
market research
to ensure global
product’s
success
Focussed on
innovation in
existing areas

10. Advertisements and Promotions
P&G reconsidered its advertising strategies in a more direct form to better
meet the company’s global market and consumers
Celebrity Endorsements

11. Advertisements and Promotions
Sponsorships

12. Advertisements and Promotions
• Product based websites.
• Mobile add campaign “irrestibilty quiz”.
• Old Spice YouTube video campaign attracted 13.7 million people.
• Separate Facebook page for each product.
• Manofthehouse.com for house hold advice to the men.
• Capessa for women on YouTube.
Social media and Digital marketing

13. Financial Statement Highlights

14. Challenges and Problems faced
Competition
P&G has faced a lot of challenges in expanding and developing
their business in some unfamiliar region because of some existing
local and global level competitors.

15. Challenges and Problems faced
•Poor economic condition of the region to expand
in.
• Negative consumers reaction to its Ads.
• Challenges of using Information Systems.
• Challenge of managing marketing budget during
recession to lessen its impact over their sales figure

16. Swot Analysis
Strength :
Strong focus on research and
development.
Leading market position.
Diversified product portfolio.
Strong brand portfolio.
Acquisitions

17. Swot Analysis
Weakness :
•Increasing instances of product
recalls.
• Dependent on Walmart stores
for majority of revenues.
• Poor website.
• Environmental issues.
Opportunities :
•Expansion in developing market.
• Future growth plans.
• Growing Indian Fmcg market.
• Emerging men’s market .
• Interest in natural product.

18. Swot Analysis
Threats :
•Increasing price in raw material.
• Regulatory environment.
• Global economic conditions.
• Counterfeit goods.
• Intense competition.
• Mergers integration

19. Disclaimer
Created by Aditya Deva, IIT Ropar during the marketing
internship under Professor Sameer Mathur, IIM Lucknow