Transcript
Harvard Business School Case
WHAT IS P&G ?
Procter & Gamble Co. , also known as P&G , is an American multinational consumer
goods company headquartered in downtown Cincinnati , Ohio , U.S. , founded
by William Procter and James Gamble.
• CEO A.G. LAFLEY• CEO BOB MCDONALD• CEO DURK JAGER• CEO JIM STANGEL• CLAUDIA KOTCHA• VICE PRESIDENT• DESIGN UNIT• MARC PRITCHARD• GLOBAL BRAND BUILDING OFFICER
KEY PLAYERS
COMPANY BACKGROUND
1940 – 1980
• Business expansion internationally through acquisitions
• Divested brands that did not fit company profile.• First Global Brands- Always, Pringles & Pantene (in
1980s)• U.S.’s Top Cosmetics Company- acquisition of Noxell
(1989) and Max Factor (1991).• Entry into pet-care market: acquisition of Iams (for
$2.3 billion)• $57 billion acquisition of Gillette in 2005 made P&G
the Top Consumer Goods Company.
P&G’s Billion- and Half-Billion-Dollar Brands
BRANDS OF P&G
INNOVATION AND R&D
• P&G had pursued a multi-brand strategy.
• P&G managed its brands across a category carefully , with each getting individual support.
• A new design unit was introduced in P&G which complemented function-driven process .
• A consumer-centric marketing approach was followed.
• Customization is done on the basis of needs of people.
• Focused on “Return On Marketing Investment” and shopper marketing experience .
• As a whole the marketing strategy changed from Function, Performance and Price to Consumer-centric focus and Design.
• New strategies were implemented such as ROMI (return on market investment), Store back Approach.
• A lot of innovative approaches were introduced in product and market research which gained both qualitative and quantitative information from the consumers, in turn resulting better products and positive buying behavior.
Qualitative:• focus group
discussions• customer interviews• in-store interviews• in-context visits
Quantitative• Data acquisition - habits &
practices of consumers.• Personal endorsement
approach e.g. Vocal Point- P&G’s word-of-mouth program.
Word of mouth advertising was followed, especially in relation with women through interesting campaigns such as “Thank You Mom” & “Loads of Hope” which acted as a means of emotional branding.
Expenditure on consumer marketing
• $500 million spent • 20,000 market research studies• 5 million consumers• 100 countries
Technology
• Stake in Ocado (2008)• Partnership with Tobii (2010)• Neuromarketing (psychological surveys)
Day time radio Dramas
Soap Operas
• Products are advertised through dramas , T.V. Commercials and operas instead of including wholesalers and retailers in the chain. • Lafley, Stengel and Kotchka aimed
towards design and emotion-driven advertising along with benefits and functionality .
• Sponsored the U.S. Olympics in 2010, 2012 winter games, Russia and 2016 summer games and Brazil.
• Fitness Campaign through NFL sponsorship and major campaign “Thank You Mom” which gained over 17 million views on YouTube and earned 33.6 Billion in media impressions.
CELEBRITY ENDORSEMENTS
Covergirl Cosmetics
Gillette – Roger Federer
Pantene
MEDIA SPENDING
• During recession in 2009, P&G shifted to coupons and in-store promotional activities to maintain its media presence while shifting advertisement costs.
• In 2010, P&G increased its advertisement spending by $1 Billion with a 20% increase in media impressions and hence higher revenues led to an increase in dollars spent.
• Mc Donald, who became the CEO in 2010, stated that P&G would maintain same level of spending while shifting dollars to digital advertising and other new media to broaden the audience.
Web Series
“My Black is Beautiful”
“Buppies”
Web Sites
“BeingGirl.com”“pampers.com”
Television Commercials
• In 2007 two social media sites were launched namely “Capessa” and “People’s Choice” for women on Yahoo! Health and associated with People’s Choice award.
• Aquired huge number of friends on Facebook and learned how to use them.
• A website for household advice for men called Manofthehouse.com was started in 2011.
COMMUNITY PROMOTION
• T-shirts with slogans and endorsed celebrities used to promote sale of products like Tide . The t-shirts were worn by celebrities , sold online and proceeds went to hurricane affected people .
• A mass promotional activity held in Times Square targeted holiday shoppers , generated YouTube ads and attracted youths .
“Loads of Hope” Campaign - 2005
Laundromat to wash clothes of survivors of Katrina Hurricane by which Tide increased to the best of its sales in next 10 years.
“Times Square” Campaign - 2006
An innovative advertisement including restrooms and spotless toilets used to promote Charmin toilet paper which was then loved by tourists.
Campaign created 9 YouTube advertisements and generated 20 Million views in a month. .
What next for P&G?
With its proven ability to campaign in all the environments through traditional and non-traditional ways P&G continues to evolve and innovate as the World’s Largest Marketer with an aim to reach out to 5 Billion consumers worldwide with advancements in consumer research and product performance.
DISCLAIMER
Created by Kandukuri Sai Omkar, BITS Pilani K.K Birla Goa Campus during a Marketing Internship under Prof. Sameer Mathur, IIM Lucknow.
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