- Procter & Gamble is a global leader in branded consumer goods known for iconic products across multiple categories. - Founded in 1837, P&G has grown significantly through acquisitions and innovation to become a top company with a wide portfolio of brands. - P&G has a strategic focus on innovation, growing existing brands through R&D, acquiring new brands, and intensive market research to ensure global success locally. - The company pioneered scientific marketing approaches and is known for significant investments in consumer insights to connect with customers globally.

1. Harvard Business School Case Study
Procter & Gamble : Marketing Capabilities
Procter & Gamble: Marketing Capabilities
Harvard Business School Case

2. Contents
Company Overview
Brief History
Brands & Company’s Vision
Objective of the Case Study
Marketing Strategies
Challenges Faced and Next Move

3. Company Overview
• Procter & Gamble is a global leader and skillful marketer of branded consumer
goods and known for iconic category defining products
• P&G was ranked 3rd on Barron's "World's Most Respected Companies 2010“
list and this marks the sixth consecutive year the company has been recognized
• Fortune Magazine ranked P&G 8th on its "America's Most Admired" list and
6th on its "Global Most Admired" list
• Its products includes sanitary products, consumer goods, pet foods, cleaning
agents and personal care products

4. A Brief History:
William Procter (Candlemaker) James Gamble (soapmaker)
GambleProcter +
= Procter & Gamble

5. Iconic Historical Events
• 1858 -1859 : AMERICAN CIVIL WAR
Procter and Gamble signed a contract with Union
Army
• 1880 : IVORY
An inexpensive soap that floats on water
• 1911 :
Factories were build in other locations in United States
• 1920:
Company sponsored a number of radio programs which is
why these shows were commonly called “Soap operas”

6. “SOAP OPERAS”
“IVORY SOAP”

7. COMPANY
BRANDS
FEMININE CARE BABY CARE HAIR CARE
The company is known for its impressive Brand Portfolio

8. FABRIC CARE HOME CARE GROOMING
SKIN AND
PERSONALCARE
PERSONAL
HEALTH CARE
ORAL CARE

9. Organizational Structure
GBU Reportable
Segment
%of Net Sales % of Net Earnings
Beauty and
Grooming
Beauty 24% 23%
Grooming 10% 13%
Health and Well-
Being
Health Care 14% 16%
Snacks and Pet
Care
4% 3%
Household care Fabric care and
Home Care
30% 28%
Baby Care and
Family care
18% 17%

10. COMPANY’S VISION
“More Consumers ,
In Most Parts of the World,
More Completely”

11. COMPANY’S MAIN FOCUS
• to grow P&G’s core brands and categories
with an unrelenting focus on innovation
• to build our business with unserved and
underserved consumers
• to continue to grow and develop faster-
growing , higher margin business with
global leadership potential

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

13. +
= P&G Marketing’s Secret Sauce

14. • P&G adopted scientific approach and connected R&D with the
company’s sale and marketing
• CEO Durk jager called for 50% innovation to come from P&G’s
labs and rest 50% through non-P&G scientists and engineers
• New strategy called ”Connect-and-develop” identified proven
technologies, packages and products that P&G could improve or
scale-up
• Seven global business units(GBUs) based on product categories
replaced the company’s four geographic business units

15. • Three new teams supported the GBUs:
- A business development team focused on innovating in existing
categories
- A venture team tasked with acquiring brands in new areas
- Market development organizations that would perform intensive
market research to ensure global products’ success in local markets

19. COMMITMENT TO THE
CONSUMER
• The company is especially known “Process-oriented”
• P&G invested more in market research , interacting more than
5million consumers in almost 100 countries
• The company ran Group discussions, interviews at home and
performed in-context visits and in-store interviews to connect to
its consumers
• P&G employed psychological surveys to measure mood and
EEG technology to measure brain activity subject to any
commercial

21. • P&G had been marketing trailblazer from the outset
• Early advertising included sponsorship of daytime radio dramas and television
commercials
• “Another World”, ”The Young and the Restless” , and “Guiding Light” were
longtime P&G sponsored daytime radio dramas
• In 2002,P&G decided to reconsider its advertising strategies after facing local
and global competitors
• The company developed “Media-Neutral” idea
• Later, region –wise customized products were introduced

22. “P&G Advertisements”

25. A Shift to
DIGITAL MARKETING

26. • Throughout 1990s , P&G’s digital
activity was limited to brand
websites which later expanded in
1999 with the launch of pampers.com
• BeingGirl.com was launched in 2000
targeted teenage girls
• P&G slowed its digital push after “.com
burst”
• McDonald who became the CEO in
2010 stated to shift from
traditional to Digital Marketing

27. • P&G launched its first mobile banking marketing
ad campaign to promote Crest Whitening Plus
toothpaste
• The company signed the Olympic Sponsorship in 2010
• P&G’s line of “My Black is Beautiful” products targeted
African American women and introduced two web series
to showcase its products: Buppies and My Black is
Beautiful
• The collection sales grew 20% in first half of 2010
• 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

28. • P&G maintained its marketing budget
despite recession and later added Social
Media as their new tool
• In 2007, company launched two social
media sites : Capessa for women and
The People’s Choice Community
• In 2010 , P&G began using Facebook
as their marketing supplement
• In 2011, company came up with
Manofthehouse.com which featured
household advices for men

29. • In 2005, Tide detergent had its best sales after highly successful
post-katrina Campaign ,”Loads of Hope”
• In 2006, P&G unveiled a major campaign in Times Square
targeting holiday shoppers
• The Times Square Campaign created nine Youtube ads and
generated 20 million views per month

31. CURRENT
SCENARIO

32. RECENT
CHALLENGES• stagnant growth, lagging productivity, and restless
shareholders
• P&G’s shares have trailed its rivals and the broader market
over the past three years
• continuous pressure to innovate
• decisions about which brands to retain
• customer satisfaction
• costs optimization

33. NEXT MOVE??

34. Few Points where Company
should Focus
• P&G needs more, better, faster product innovation
•P&G needs innovation in its business system—downstream,
upstream, internal, or all three
• P&G needs to be thinking about bigger, bolder strategic
innovation
• Strategic innovations in the Global–local operating model
• The company should optimize their costs and prices by looking at
customer’s desires

36. Created by Neha Byadwal, IIT Kanpur
during a Marketing Management
Internship under Prof. Sameer Mathur,
IIM Lucknow