SlideShare a Scribd company logo
To provide branded products and
services of superior quality and value
that improve the lives of the world’s
consumers, now and for generations to
come.
 On October 31, 1837 Procter & Gamble
was created by William Procter and James
Gamble, both born in the United Kingdom
of Great Britain and Ireland
 Global leader in FMCG sector.
 More than 2 dozen $1 Billion brands.
 First company to directly advertise to its
consumers in 1880s.
PRODUCTS
BILLION $ BRANDS
ORGANISATIONAL
STRUCTURE
COMPETITORS
P&G’s Marketing
Strategy
INNOVATION: THE SECRET SAUCE(1)
INNOVATION: THE SECRET SAUCE(2)
CONSUMER FOCUS
P&G interacts with more than 5 million
customers in more than 100 countries and conducts
more than 20000 researches each year, spending
more than $500 million.
CONSUMER FOCUS
Observations from researches:
• Advocacy( word of mouth) was the most effective
way of marketing, found under company’s Vocal
Point campaign.
• Neuromarketing helped them understand how
feelings affected decisions and human behavior.
• P&G has always been
advertising trailblazer.
• Developed “media neutral”
idea that can be translated
across range of media.
• Shifted towards more design
and emotion driven advertising.
.
SPONSORSHIPS
CELEBRITY
ENDORSMENTS
DIGITAL & SOCIAL MEDIA
MARKETING
COMMUNITY PROGRAMS
sales
STRENGTHS
Focus on R&D
Strong Brand portfolio
Consumer Focus
Strong marketing team
OPPURTUNITIES
Expansion opportunities
in developing markets
Growing interests of
consumers in
organic products
WEAKNESS
 Increasing product recalls
 Environmental issues
THREATS
Global economic
conditions
 Increasing competitions.
 Quick change in younger
generation’s preferences
WHAT’S NEXT
SUMMARY
Created by Ravi Prakash Singh, NIT Patna
During a marketing internship by
Prof. Sameer Mathur, IIM Lucknow

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Procter & Gamble: Marketing Capabilities HBR Case

Editor's Notes

  1.  On October 31, 1837 Procter & Gamble was created by William Procter and soapmaker James Gamble, both born in the United Kingdom of Great Britain and Ireland. In 1858–1859, sales reached $1 million.
  2.  On October 31, 1837 Procter & Gamble was created by William Procter and soapmaker James Gamble, both born in the United Kingdom of Great Britain and Ireland. In 1858–1859, sales reached $1 million.
  3.  SITUATIONAL ANALYSIS(1)
  4. CASE HIGHLIGHTS
  5. PNGs marketing secret sauce: innovation
  6. PNGs marketing secret sauce: innovation
  7. In 1887 established one of the first coorporate labs. Set up GLOBAL BUSINESS UNITS(GBUs) replacing geographic business units GBU: BUSINESS DEVELOPMENT teams Venture teams market development organisations Strategy named Connect to develop
  8. 50% of innovation and new products in 90s come from pngs own labs and rest from associate labs Successful products such as SWIFFER DUSTERS, Olay Regenerist, Crest came into exisitance.
  9. Consumer focus P&G interactes with more than 5 million customers in more than 100 countries and and conducts more than 20000 researches each year, spending more than $500 million.
  10. Consumer focus: Observations from researches Advocacy( word of mouth) was the most effective way of marketing, found under company’s VocalPoint campaign. Neuromarketing helped them understand how feelings affected decisions and human behaviour.
  11. Advertising: P&G has always been advertising trailblazer
  12. Advertising: P&G has always been advertising trailblazer Developed “media neutral” idea that can be translated across range of media. P&G shifted towards more design and emotion driven advertising.
  13. Product based websites Mobile add campaign “Irresistibility IQ Quiz” SepFacebook page for each product arate Manof thehouse.com for household advice for men. Capeesa foe women on Youtube. Old spice Youtube video campaign attracted 13.7 million views
  14. Community promotion:
  15. sales
  16. Whats next: Digital marketing along with campaigns R&D improvement Consumer research and product performance Emotion, desiign and function driven marketing strategies.
  17. SUMMARY: Case Basics Situational Analysis Marketing Channels Marketing Techniques SWOT Analysis
  18. Fuel prices: Losses more due to falling fuel prices. As thry have to reduce prices and the local fliers based on oil economy also cuts flying experience. So in order to stay in competition they have to slash the prices which in the end leads to losses