This presentation takes into account the analysis of the marketing strategy, product strategy and pricing strategy followed by P&G and how it led to the creation of million dollar brands. The presentation concludes with the recommendations for P&G to strive in the market.

2. Co-Founders : William Procter( Candlemaker )
James Gamble( Soapmaker)
Date : October 31, 1837
The company won contracts to supply the Union Army with soap and
candles during American Civil War
Headquarters : Cincinnati, Ohio, United States
CEO : David S. Taylor
Subsidiaries : Gillette India Ltd., Wella, Barun, Clairol

4. Procter & Gamble Co., (
P&G) :
American multinational consu
mer goods company
headquartered in downtown
Cincinnati, Ohio.
Products : Cleaning
agents and personal
care products.
The company moves into
other countries in terms of
manufacturing and product
sales.

5. To provide branded product &
services of superior quality and value
that improves lives of the world’s
consumers, now and for Generations
to come.
Consumers will reward with
leadership sales, profit, and value
creation, allowing our shareholders,

6. To be
recognized as,
the best
consumer
products and
services
company in the
world.

11. Loss due to closure of brands – Prior to 2014, P&G had close
to 300 brands but it pruned its brand portfolio to include only
65 brands which were driving 95% of its overall profits.
Organization structure causes slow decision making
Low organic growth – Rate of Increase in customer base is
slow as saturation curve is reached and lower innovation is
happening.

12. Opportunities Threats
Rural markets – A major
challenge for all companies
is penetrating the rural
markets, which are price
sensitive and impervious to
advertisements.
Increased purchasing
power – Purchasing power
of consumers is going to
increase in the near future .
Intense competition – P&G
has to constantly worry about
competition especially from
HUL.
Increased local / Unbranded
competition

13. Operator Earnings Growth Rate

14. P&G follows a Pull Strategy
Heavy Advertising & Media Pioneer
Consistent Digital & Social marketing
Celebrity Endorsements

15. Understand how companies find a set of prices that maximizes the
profit from the total product mix.
Adjusting the prices to take into account different types of
customers.
Competitive Pricing
Product-line pricing

16. Procter & Gamble deals in goods whose product range is closely
related.
Continuous Designing & Innovation.
Consumer centric marketing approach.
Distribution process is extensive : Intensive distribution, Specialty
distribution and Extensive distribution.

18. Developing long-standing partnerships
with Advertising Agencies.
More Design & Emotion-driven
advertising.
Vivid distribution of advertising.

19. P&G, a U.S. Olympic team sponsor for the
2010 Games, became a worldwide sponsor,
specifically to raise its visibility in
emerging markets
Sponsorship gave consumers opportunities
to engage with the NFL just for choosing
P&G brands
P&G also had at least 16 U.S. Olympic
athletes in individual sponsorship deals

20. CELEBRITY ENDORSEMENTS
P&G developed numerous celebrity
endorsements.
NHL player Alex Ovechkin was named
a Gillette Brand Ambassador and starred
in TV commercials.
Sebastian Vettel, the Formula One champion,
secured a long-term sponsorship with P&G to promote
Head & Shoulders .
Sofia Vergara was named spokesmodel for CoverGirl
cosmetics in May 2011 for an ad campaign launching .

21. DIGITAL & SOCIAL MEDIA MARKETING
The firm expanded its digital content offering (1999) with
the launch of pampers.com.
Product based websites
“Old Spice” youtube video attracted 13.7 million people
across the globe.
Involves Aggressive marketing

22. Separate page on facebook for each product
Launched first mobile marketing ad campaign, promoting
Scope toothpaste
Mobile ad campaign Irresistibility quiz”
P&G’s line of “My Black is Beautiful” products introduced two
web series in 2010 to showcase its products : Buppies and
My Black is Beautiful

24. Is it Working ?
 +35% of new products have elements that originated from outside
P&G.
Up from 15% in 2000
 R&D productivity has increased by nearly 60%
R&D investment as a percentage of sales is down
From 4.8% in 2000 to 3.4% today
Since 2000 stock collapse
Share price has doubled
Our portfolio has grown to 22 billion-dollar brands

25. Intense and fierce Competition
Expansion requires major investment into
creating new products and brands.
Brand Cannibalisation
Lack of presence in the industries
Competition has more industry focused product –
lines.

26. Focusing more on Men’s
products
oGrooming in men’s
section account for 13%
of net earnings.

27. Improve Productivity in all Areas
 Cost of Goods
• Reduce RM costs
o Long-term contracts
Research & Development :
•Continuous improvement
•Product Innovation

29. Created by Suhani N. Shrivastava, NIT GOA,
during a Marketing Internship by Prof Sameer
Mathur, IIM Lucknow.