P&G case study analysis

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A Case study on

Who are the key people...?

1 Durk Jager (CEO)2 Lafley (CEO)3 Stengel(CMO)4 Kotchka (Head of R&D & Design)5 Pritchard (Multi brand manager)6 McDonalds (Current CEO)

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BusinessesBeauty SegmentGrooming SegmentHealth care segmentSnacks & Pet care segmentFabric care &Home care segmentBaby Care & Family Home care segment

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Fabric and HomecareFabric and home care segment is the most profitable division with 30 % of net sales

Billion Dollar Brands•Ariel•Dawn•Downy•Duracell•Gain•Tide

Half billion dollar brands•Ace

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Beauty and GroomingThis Division accounted for 24% of net sales and contributed for 23% of net earnings

Billion Dollar Brands•Head & Shoulders•Olay•Wella•Pantene

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Objectives

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Global expansion

North America represented 42% of sales; Western Europe, 21%; Asia, 15%; Centraland Eastern Europe and the Middle East and Africa, 13%; and Latin America, 9%; Developed markets represented 66% of 2010 sales.

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Entering new markets

“P&G’s approach to entering new markets was via “acquisition or joint venture on a small scale, and through trial and error, Learn the formula for success before making a major commitment.”

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Attaining Growth

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Figures

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What are the strategies taken up by the company to Appeal to it‘s customers ?

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Why Geographic and Demographic marketing..?

Customized by region. In South Korea, P&G limited advertising to a few niche television channels, with greater emphasis on huge outdoor displays at a Seoul shopping centerIn Japan, the campaign focused on mobile devices.50 For Safeguard soap in Pakistan,the firm created a superhero, Commander Safeguard, with his own television show, music videos and website

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Advertising through Television ..?

Daytime Dramas- As the World Turns, Soap operas, Another World, The Young and the Restless, and Guiding Light(1956)

Web series - My Black is Beautiful, Buppies(2010)

Though conventional, mass marketing always helps to reach to wide range of customers

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Why Sponsorships ?

U.S. Olympic team sponsor for the 2010 Games, 2012 winter games in Russia, 2016 summer games in Brazil, National Football League (NFL) sponsorship gaveconsumers opportunities to engage with the NFL

Sponsorships help in a way to enhance a more friendly image, increase the word of mouth, reinforce the perception made by the customer and expressing commitment on social issues

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Digital marketing …?

BeingGirl.com: Launched in 2000, provided information and expert advice on “issues that Teenage girls might be too embarrassed to ask a parent or doctor about, such as menstruation, Eating disorders, acne and dating.Pampers.com: The website contained product information, similar to the other brandwebsites under P&G, but also provided information for new and expectant mothers and served as an interactive forum.Manofthehouse.com : Which featured household advice for men, including tips on grillingburgers cleaning toilets, and disciplining children. In contrast to other similar sites focusedon single men and heavy on sex advice.Reflect.com: Lets customers customize P&G cosmetics and fragrances.

Create awareness, show points of differences, product choices against competitiveBrands. Virtual marketing lowers the investment and proven to be efficient way of marketing when selected in a particular geography.

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Integrated marketing communications(advertising,promotion, sales, events and public relations) : pampers, Pepto-Bismol, Braun, old spice, Pantene, cover girl

Interactive Community Promotion : Tide, Charmin(Ad campaigns which emphasizesemotional branding)(Thank you mom, Loads of hope)

Integrated marketing communications

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Multi-Branding

Multi-Branding particularly helps in repositioning the company according to thecustomer needs.

(1)Obtaining greater shelf space and leaving little for competitors' product(2) Saturating a market by filling all price and quality gaps, (3) Catering to brand-switchers users who like to experiment with different brands, and (4) Keeping the firm's managers on their toes by generating internal competition.

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Product development Strategies

•Connect and develop•Customer centric marketing

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Connect & develop

Replacing the trial-and-error methods commonly pursued at the time, P&G took a scientific approach and connected R&D with the company’s sales and marketing.First-time products included Crest toothpaste (1955),the first toothpaste with fluoride,Head & Shoulders dandruff shampoo; and Pampers disposable diapers (1961).

(Durk Jager)

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Customer-centric marketing

Customer centric marketing : Why customer experience is necessarybecause it builds the brand equity and brand’s competitive edgeover the other companiesTwo moments of truth: First, on the store shelf; and Second, when the consumer used the product and decided whether it delivered on its promise.

“Consumer-centric marketing makes no assumptions. It begins with‘Who is your consumer, and what’s different about her?’ It sounds like such a simple question, but if you went to most companies and asked that question, you wouldn’t get a very satisfactory answer.

(Lafley,Stengel)

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AnalysisFrom the exhibits, we observe that P&G is a market leader in the fabric and home caresegment.•The company is struggling to secure a position in the snacks and pet care segment(with 4% and 3% in the sales and earnings.• While losing these markets is one such option, P&G can tackle these challenges through ad campaigns

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Strategies to uplift the under performing markets

Events:•Sponsorships•Ad campaigns

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Sponsorships

Sponsoring an event improves the perception of the market about their company.It improves the visibility of the company and impacts the sales indirectly.

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Ad campaignsAd campaigns include social activities, merchandise topromote it’s products.

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A Presentation byS. Rahul Nanda,VIT university,Vellore.