Procter & Gamble is a global leader in consumer goods with a focus on innovation and market expansion strategies, managing numerous billion-dollar brands. Under CEO A.G. Lafley, the company restructured to emphasize product design and consumer engagement, leading to significant marketing initiatives including digital and social media campaigns. Despite challenges in unfamiliar markets, P&G's commitment to innovation and consumer-centric approaches have contributed to sustained growth and revenue increases.

1. Procter & Gamble

2. About the Company
The company managed two dozen $1 billion brands known worldwide,
including Bounty, Crest, Downy/Lenor, Febreze, Gillette, Iams, and Pampers

3. P&G had
pioneered
marketing
strategies that
were considered
standard industry
practice

4. Global leader in Branded consumer goods
Goal

5. As of 2010……
• Sales –
$78.94 billion
• Net income –
$12.74 billion
• market
capitalization –
$186.63 billion

6. North America - 42%
Western Europe - 21%
Asia - 15%
Central and Eastern
Europe and the
Middle East and
Africa - 13%
Latin America - 9%
Sales Geographically

7. Company Background
P&G’s approach to entering new markets was via “acquisition or
joint venture on a small scale, and through trial and error, learn
the formula for success before making a major commitment”

8. P&G focused on three specific choices:
1. To grow P&G’s core brands and categories with an
unrelenting focus on innovation
2. To build our business with unserved and
underserved consumers
3. To continue to grow and develop faster-growing,
higher margin businesses with global leadership
potential

9. Steps taken for Innovation and R&D

10. • In June 1999, under
then-CEO Durk
Jager, P&G
reorganized to
boost growth after
net sales slowed to
2.6% growth from
the previous year
• P&G cut 15,000
staff and promised
to deliver more
innovation
Durk Jagger

11. Seven global
business units
(GBUs) based on
product
categories
replaced the
company’s four
geographic
business units

12. Three new teams supported the GBUs:
1. A business development team focused on innovating in
existing categories
2. 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
3. market development organizations that would perform
intensive market research to ensure global products’ success in
local markets

13. Result
• The firm struggled to
control costs, and its stock
slid from $118 to $52 over 18
months.
• Lafley, who took over as
CEO in 2000, remained
committed to the
reorganization and was
convinced it would deliver
the innovations promised

14. Analysing the Marketing Strategies

15. I. Overall Marketing strategy

16. When Lafley took over, he set a goal to make P&G the
top product-design company in the world
Lafley

17. She sought to bring design to every step of product
development and introduce a culture of design to
P&G through a number of actions

18. • The influx of design had a
strong impact on P&G’s
product development
• Design informed the
innovation process
• Changed the function of
some products, such as the
Tampax Pearl’s more
comfortable applicator
Result

19. Shift to a more consumer-centric marketing approach

20. Lafley’s shake-up and
design emphasis articulated
more clearly that P&G’s
brands faced two moments
of truth:
1. On the store shelf
2. When the consumer used
the product and decided
whether it delivered on its
promise

21. The lobby of P&G’s Cincinnati headquarters featured a faux
home and store, so that employees could physically view and
experience the “two moments of truth” every day

22. In 2008, P&G wooed recession-wary consumers with more
focused attention to in-store promotions such as coupons,
displays, special offers, and other promotional materials.

23. Pampers’ 2008
campaign, which
donated funds for one
tetanus vaccine in
developing markets
for each pack of
specially marked
diapers sold, was a
success story

24. II. Commitment to the Consumer

25. Innovative approach: VocalPoint, P&G’s word-of-mouth
program that enrolled more than 600,000 women to pitch its
products

26. June 2010, P&G announced a partnership with Tobii, a leader in
eye tracking, which objectively identified visibility and attention
that consumers gave to packaging, displays, and advertising

27. Result
The firm leveraged new and innovative ways to learn directly
from consumers, while also building the opportunity to create
more direct, one-on-one relationships with the target audiences

28. III. Advertising

29. One of the first examples was P&G’s successful advertising
campaign for the 2010 Winter Olympics, which combined 18 P&G
brands under a common message and featured a commercial
that thanked moms around the globe for their efforts.

30. Soap Operas
The daytime drama As the World Turns
was launched in 1956 to specifically target
women in their homes
Another World, The Young and the Restless,
and Guiding Light were other longtime
P&G-sponsored daytime dramas

31. A Hurdle
It faced challenges in winning new customers in less familiar markets
outside the Americas and Western Europe, where it encountered local
and global competitors

32. Overcame by…..
• Working with agencies, P&G began by first developing a
“media neutral” idea that could be translated across a range of
media
• With Tide, the idea was that the detergent “works wonders on
the fabrics that touch your life.” The story could then be
translated into locally relevant messages

33. III.a. Sponsorships

35. III.b. Celebrity Endorsements

36. Tennis star Roger Federer
was featured in Gillette
Fusion Products ads in the
U.K. in 2010
The YouTube version attracted over 2
million visitors to the Gillette YouTube
channel!

37. In 2010, Sebastian Vettel, the “youngest ever”61 Formula One
champion, secured a long-term sponsorship with P&G to promote
Head & Shoulders shampoo

38. The same year, P&G also had at least 16
U.S. Olympic athletes in individual
sponsorship deals!

39. IV. Media Spending

40. In early 2009, as the recession took hold, then-
CEO Lafley announced that despite the poor
economic climate, P&G would maintain its
marketing budget

41. 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

42. McDonald, who became CEO in 2010, stated that P&G would
maintain the same level of spending, while shifting dollars to
digital advertising and other new media to broaden the
audience

43. Result
Their media campaign has been successful and it
increased their revenues

44. V. Digital Marketing

45. Pampers.com: The website contained product information,
similar to the other brand websites under P&G, but also provided
information for new and expectant mothers and served as an
interactive forum

46. P&G slowed its digital push after the dot-com bubble burst, and
through the early 2000s focused its efforts primarily on television
and print advertisements

47. The company was back online when it undertook aggressive
marketing of its over-the-counter heartburn treatment Prilosec,
after a 2006 study found that most people dealing with
heartburn conduct research online before making a purchase

48. P&G launched its first mobile marketing ad campaign in 2006 to
promote Crest Whitening Plus Scope toothpaste

49. P&G’s line of “My Black is Beautiful” products, targeting African
American women, introduced two web series in 2010 to showcase
its products: Buppies and My Black is Beautiful, showcasing the
collection of P&G products in a makeover setting.

50. Buppies attracted over 2 million views online after its
launch, while My Black is Beautiful averaged 3.6 million
viewers in its second season on BET!

51. P&G’s Old Spice television commercial and YouTube sensation,
“The Man Your Man Could Smell Like,” gave P&G its greatest
exposure in the online community in 2010, and bridged the
power of digital and social media

52. Result
The digital marketing helped the company enter
the market in an innovative and way and
increased its brand equity!

53. VI. Social Media

54. In 2007, P&G launched two social media sites: Capessa for
women on Yahoo! Health and the People’s Choice Community,
associated with the People’s Choice awards

55. In 2010, P&G began using Facebook as a marketing tool and, by
2011, had 15 brands with “friends” in the six-figure range. Pringles
and Old Spice had 9 million and 1.3 million fans, respectively.

56. P&G rounded out its earlier social media efforts with
Manofthehouse.com, which featured household advice for men,
including tips on grilling burgers, cleaning toilets, and
disciplining children.

57. Result
The social media outreach helped P&G to increase their
customer base with minimal cost for advertising

58. About the
company
Innovation
and R&D
I. Overall Marketing strategy
II. Commitment to the consumer
III. Advertising
I. Sponsorships
II. Celebrity Endorsements
IV. Media Spending
V. Digital marketing
VI. Social media

59. Disclaimer
Created by Madhav Agrawal, BITS Pilani Goa Campus during a
marketing internship by Prof. Sameer Mathur,IIM Lucknow