P&G is a global consumer goods company that manages over 300 brands. In the late 1990s and early 2000s, P&G faced challenges including decreased sales, high costs, and struggling to enter new markets. To drive innovation and growth, P&G reorganized into 7 global business units, partnered with external innovators, and shifted to more customer-centric and design-focused product development and marketing strategies. These changes helped P&G improve financial performance and expand into new regions.

1. Global leader in branded consumer good.

2. How many number
of brands company
managed?

4. What were the net
sales of P & G in
2008, 2009 and
2010?

6. What is the
organizational
structure of P&G
products?

8. What is the percentage
sales division of P&G
products in different
continents?

9.  North America – 48%
 Western Europe – 21%
 Asia – 15%
 Central and Eastern Europe and the Middle East
and Africa – 13%
 Latin America – 9%

10. What percentage
of sales existed in
developing
markets in 2010?

12. How many Global
Business Units are
there?

13. Seven global
business units are
there based on
product categories.

14. How did the
company
expanded
globally?

15. By acquisitions
and joint
ventures

16. Who are the
Players?

17.  CEO (1999) – Durk Jager
 CEO (2000) – Lafley
 CMO (2000) – Jim Stengel
 Vice president for Design innovation and Strategy
– Claudia Kotchka

18. Problems faced

19. Competition with the rival companies
as they followed the same technology.
Problem 1

20. Risk of cannibalizing P&G’s other
laundry soap products as Tide came
into the market.
Problem 2

21. Decrease in net sales in 1999 by 2.6%
from the previous year.
Problem 3

22. The firm struggled to control costs and
its stock slid from $118 to $52 over 18
months.
Problem 4

23. In 2002, it faced challenge in winning
new customers in less familiar markets
outside the Americas and Western
Europe
Problem 5

24. Maintaining the marketing budget
during recession in 2009.
Problem 6

26. Innovation and R & D

27. • P&G connected R&D with company’s sales and marketing
• Formation of seven global business units (GBUs) based on
product categories that would help with global product
development and quick-to-market strategies.
• Three new teams supported GBUs: a business
development team focused on innovating in existing
categories; a venture team tasked with acquiring brands
in new areas and nurturing ideas created by the business
development team that did not relate to an existing
brand; and market development organizations that would
perform intensive market research to ensure global
products’ success in local markets.

28. Connect and Develop

29. • Selected potential partnership products
• Located in six connect-and-develop hubs (in China,
India, Japan, Western Europe, Latin America, and the
U.S.), the technology entrepreneurs focused on
products and technologies specific to the specialties
of the hub’s region.
• Rather than eliminate R&D jobs internally, connect-
and-develop forced P&G to adapt and develop new
skills.
• By 2006, more than 35% of P&G’s new products had
elements that originated from outside the firm, and
45% of P&G’s initiatives had key elements discovered

30. Design based marketing

31. • Kotchka sought to bring design to every step of
product development.
• She hosted a “design tasting,” featuring design case
studies for P&G’s top 200 executives , created a P&G
design board and created the Clay Street Project,
bringing cross-functional teams from their jobs
elsewhere across the firm’s global footprint to
Cincinnati for 10 weeks to create new brands based on
design.
• P&G did not use design as an antidote to its function-
driven process but rather as a complement, helping
consumers recognize, understand, and in some cases
even imagine the functions of a given product.

32. Customer centric marketing

33. • P&G’s brands faced two moments of truth: first, on
the store shelf; and second, when the consumer used
the product and decided whether it delivered on its
promise.
• CMO Stengel moved P&G’s marketing approach away
from its traditionally process-oriented and template-
driven culture toward a deeper understanding of who
the product was for, what was different about that
consumer, and how that consumer expected to use
the product.

34. Marketing through
advertising

35. • Used sponsorship opportunities to connect with more
people.
• P&G brought a number of celebrity endorsers for the
endorsements.

36. Marketing through Media

37. • At the time of recession, though the firm’s marketing budget
was not directly cut, P&G shifted to coupons and in-store
promotional activities to maintain the same media presence,
while shifting ad costs.
• In 2010, P&G increased ad spending by $1 billion, with a 20%
increase in media impressions; higher revenues led to an
increase in dollars spent.

38. Digital marketing

39. • Launch of different websites like pampers.com and
BeingGirl.com to provide information to mothers and
girls respectively and served as an interactive forum.
• Launched its first mobile marketing ad campaign in
2006.
• In 2010, P&G started using facebook as a marketing
tool.