Harvard Business School Case
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Harvard Business School Case
• P&G was a global leader in branded
consumer goods • The company managed two dozen $1
billion brands • The first company to advertise directly to
consumers • P&G was a seasoned marketer with
strong consumer research, a powerful innovation network, an evolving marketing strategy, strong marketing talent, and the world’s largest financial commitment to advertising
P&G’s Financial Commitment
to Advertising
ADVERTIZING BUDGET(2010): $ 8.68 billion
SALES(2010): $ 78.94 billion
NET INCOME(2010): $ 12.74 billion
MARKET CAPITALIZATION: 186.63
billion
Sales In 2010 Net Sales Segment wise
Beauty
Grooming
Health Care
Snacks and Pet Care
Fabric Care and Health Care
Baby Care and Family Care
Earnings in 2010 Net Earnings Segment Wise
Beauty
Grooming
Health Care
Snacks and Pet Care
Fabric Care and Home Care
Baby Care and Family Care
Net Sales
75 76 77 78 79 80
2008
2009
2010
Sales in $ billion
Sales in $ billion
To be recognized as
the best Consumer
Products and
Services company in
the World.
We will provide
branded products
and services of
superior quality
and value that
improve the lives
of consumers
across globe.
1837
Started
International
Expansion
in 1930s
Innovation and
R&D: P&G Marketing’s
Secret Sauce
• P&G established one of the first
corporate labs in the field of
consumer goods in 1887.
• This helped them replace the
trial-and-error method at that
time.
• Company took a scientific
approach and connected R&D
with sales and marketing.
Crest toothpaste(1955), the first toothpaste with fluoride
Head & Shoulders anti dandruff Shampoo
Pampers(1961) disposable diapers
Were some of the first-time products.
Connect And Develop: New Ways to Innovation
Connect and Develop is P&G’s idea of partnering externally to accelerate innovation. It forced P&G to adapt and develop new skills
Global Networks Under
Connect and Develop
’
P&G’s R&D productivity increased by nearly 60%, and the firm’s innovation success doubled, with a simultaneous drop in cost of innovation. R&D investment as a percentage of sales dropped from 4.8% in 2000 to 3.4% in 2006.
Marketing Strategies that have made
P&G The Worlds
Largest Marketer
QUALITATIVE • Group Discussions • Interviewed consumers at home • In Store Interviews
QUANTITATIVE • Gathered data on consumer utilizing blind tests • Concept and use test • Quality monitoring • Large scale studies of the habits and practices of
consumers
• P&G’s staple TV ads focused on P&G’s product superiority and the clear functional benefits of its products.
• Lately P&G has shifted towards more design- and emotion-driven advertising.
• Equity of great brands has to be something that a consumer finds inspirational and an organization finds inspirational.
Averaged 3.6 million viewers in its
season on BET
• 13.7 individual views on YouTube
• 2 billion media impressions
• A milestone in P&G’s transition
from a mass to one-to-one digitized
marketer
• Product based websites.
• Facebook page for more than 15 brands with more friends in 6 figure range.
• Capessa for women on Yahoo!
• Manofthehouse.com offered advice on household care to men. Rather than focusing on single men and heavy sex advice Manofthehouse.com aimed to “speak to the whole man.”
Interactive
Community Promotion
• P&G was a company with strong R&D and
consumer research, powerful innovation, evolving marketing strategy, strong marketing
talent, and strong commitment on media spending budget.
• P&G must be more focus on digital marketing trends and developing interactive brand communities because word of mouth through the social media and brand community becomes a powerful promotional tool to the consumers today.
This presentation is created by Anurag Kumar, IIT Roorkee during a
marketing internship under the guidance of Prof. Sameer Mathur, IIM
Lucknow
Related Documents
