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Procter & Gamble: Marketing
Capabilities
Harvard Business case
why
study
this
case?
To study how to
develop
marketing
strategies and
plans in a
consumer
oriented approach
Objectives
• To study varieties of marketing
strategies adopted
• Evaluation of outcomes
• Strategies for maintaining Multiple
Brands
Evolution
key influencers
• Durk Jager – C.E.O(1999-2000)
• A.G. Lafley – C.E.O(2000-2010)
• Bob McDonald – C.E.O(2010-present)
Durk Jager
Reorganisation
• Seven global units replaced
company’s four geographic
business units.
• New teams were created.
New teams were:
1. Business development team.
2. Venture team.
3. Market development organisations.
Connect
& Develop
Result
Successful product introductions
1. Swiffer dusters
2. Olay regenerist
3. Crest whitestrips & spinbrush.
But STRUGGLED to control
costs on innovation
A.G. Lafley
 Concentrated more on design
 Designs helped consumers to
imagine function of a given
product.
 This lead to a consumer-centric
marketing approach.
Recission
 lafley continued the same budget
on marketing.
 The marketing campaigns shifted
the budget from traditional
marketing strategies like
advertising to coupon marketing
and in-store promotions to increase
sales.
Result
Increased consumer relationship
& emotional connection between
consumers and the brand.
Surveys resulted that people felt
better about a brand if it is from
P&G.
Bob McDonald
2010 winter
Olympics
campaign
 Again Concentrated more on
design.
 Believed in Eye tracking and Neuro
marketing strategies.
 Brought out performance driven
products as firm leveraged new and
innovative ideas directly from
consumers.
Using crowd sourcing as a tool
and alternative for market
research and thereby increasing
sales.
Motivation
How did P&G
maintain
multiple brands
at same time?
Each brand got individual
support.
The main idea was “one brand
one purpose”.
Each brand caters only to a
segment of market
Sales
Celebrity
endorsements were the
most important part in advertising the
beauty products which had the major
sales and profits in company’s
revenue.
Digital
marketing was used to
give consumers more information about
the products and to build consumer
interactions.
Social
media was helpful in
maintaining interactive community
programs.
Market
researchhelped in
developing the right products
according to the consumer needs.
Conclusion
Excellentcompany’s
need excellent Product
but excellent product
Needs?
Marketing is a worthy
investment which is used to increase the
motivation for buyers and to preserve
the Brand name.
DISCLAIMER
Created by Appili Vishnusai, SASTRAUniversity
during a marketing internship by Prof. Sameer
Mathur, IIM Lucknow

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