P&G: Case study

Procter & Gamble : Marketing Capabilities

Harvard Business School Case

“We touch & improve Lives”

We are

Who are We ?

- Consumer Goods Company

- Fortune 500 American Multi National Corporation

- Headquarters in downtown Cincinnati, Ohio, US

History of P&G

Candle maker William Procter and soap maker James Gamble, were born in the UK and Ireland respectively. They settled in Cincinnati and married sisters, Olivia and Elizabeth Norris.

Alexander Norris, their father-in-law, persuaded his sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was created.

Our Range of Products

Earning and sales analysis

Sales analysis

Analysis

Has good company background

Enters new market with a mission and

decisions

Takes scientific approach to

connect with people

Brings in a design unit as a part of

marketing strategy

Shift from product based marketing to consumer-centric

marketing

Communication through direct &

digital marketing & sales promotion

Multibranding

Tries to move forward with an aim

to reach 5 billion new consumers

Connect &

Develop

Objective

Know about the design, implementation & interpretation

of product development & marketing strategies

Evaluate primary and unique communication strategies

and money spending

Innovation, R&D and acquisition

Some Basic Issues1. Growth of P&G’s core brands & categories with an unrelenting focus on

innovation & design.

2. Building business with unserved & underserved consumers through consumer-

centric , digital & direct and neuromarketing , multibranding and interactive

community promotion.

3. Continue to grow & develop faster-growing higher margin businesses with

global leadership potential.

Innovation and R&D

ISSUE 1

- In 1887, P&G set up an analytical lablaying the foundation of R&D division

- Seven Global Business Units(GBU) were set up to prepare quick-to-market strategies.

- CEO Durk Jager introduced a new “permeable boundary” approach between and P&G scientists and other non P&G ones.

Marketing Strategy

ISSUE 2

Commitment to consumers

(A)

Lot of innovative approaches were adopted in market research.

Word-of-mouth advertisements like “Thank you Mom” & “Loads of Hope” acted as means of emotional branding.

Neuromarketing which helped in one-to-one relationship with customers.

Marketing

(B)

Earlier P&G had pursued a multiband

New design unit was created for design innovation & strategy

A consumer-centric marketing approach was followed

Focus on “shopper marketing experience”

Advertising

(C)

First company to sell its products directly to consumers through dramas , T.V commercials and operas

Lafley , Stengel and Kotchka aimed towards design and emotion driven-advertising

To compete in less familiar markets , it developed “Media neutral” idea that could be advertised in relevant local languages.

Sponsorship(D)

It sponsored the U.S. Olympic team in 2010 and raised its visibility as a worldwide sponsor for 2012 winter games in Russia and 2016 summer games in Brazil.

It engaged its consumers in fitness campaign through NFL sponsorship whereas the major campaign “Thank you Mom” still remained the best in touching everyone’s heart.

Celebrity Endorsement

(E)

Gillette and Head & Shoulders ads featuring sportspersons were advertised through YouTube, T.V. , online and print media.

P&G endorsed many celebrities and spokesmodels for its acquired beauty companies and products like Cover Girl cosmetics and Pantene shampoo.

Media Spending

(F)

During recession in 2009 , P&G shifted to coupons and in-store promotional activities

In 2010, P&G increased ad spending by $1 billion, with a 20% increase in media impressions

McDonald, who became CEO in 2010, stated that P&G would maintain the same level of spending, while shifting dollars to digital advertising

Social Media(G)

In 2007, P&G launched two social media sites: Capessa for women on Yahoo!

P&G used Facebook as a marketing supplement, not a replacement

P&G rounded out its earlier social media efforts with Manofthehouse.com, which featured household advice for men

Social media was a way to speak to its audience virtually

Interactive Community Promotions

(H)

“Restrooms” neon signs led to spotless toilets. The ad was used to promote Charmin toilet paper, and tourists loved it

P&G used T-shirts having slogans and endorsed celebrities like Katrina Kaif to promote sale of products like Tide.

A similar mass promotional activity was held in Times Square in 2006 , targeting holiday shoppers

Global LeadershipISSUE 3

Digital marketing with campaigns, Emotional, design and function driven marketing , R&D , consumer research & product performance.

Moving Forward

Summary

DISCLAIMERCreated by Prateek Verma, NIT Raipur during Marketing Internship by Prof Sameer Mathur,

IIM Lucknow