Procter and gamble: Marketing Capabilities

Procter and Gamble

Marketing Capabilities

What is Procter and Gamble?

One of the biggest consumer good company in the world

Why is P&G the world’s largest marketer?

P&G has to be a big marketer to achieve it’s goal of serving every consumer possible.

Marketing strongly impacts market share as well as creates and develops brand awareness, image and

equity. •

Need to be a big marketer To communicate product innovations

First toothpaste with fluoride

Need to be a big marketer

To communicate product innovations

Single-handedly created the disposable diaper category

Pampers evolved out of P&G’s experiments in expanding its paper products line

Need to be a big marketer To introduce breakthrough products

New synthetic formula for detergent

Need to be a big marketer To introduce breakthrough products

First female hygiene product to be marketed

Introduced a range of products with a variety of innovations

It has to collect consumer information and position itself to achieve a competitive

edge over it’s rivals.

Focus on market research •20000 researches

ever year•$500 million in developing and executing the

research studies

Focus on market research

Innovative ways to learn from consumers:• Psychological surveys to understand how

consumers associate products depending on their feeling/state/situation

Focus on market research

Innovative ways to

learn from consumers:

•Word of mouth program with 600000 women to pitch it’s products. Gave them coupons, samples and opportunities to share their opinions and provided them with crafted product messages to share with their peers

Consumer centric marketing

Design being one of the criterion in product development helped consumers recognize,

understand and visualize the functions

of a given product

Consumer centric marketing

One of P&Gs websites allowed consumers to customize cosmetics and fragrances

Consumer centric marketing • In store promotions

•Focus on shopping experience

Community campaigns T shirt purchase proceeds went to families affected by hurricane Katrina

Laundromat to wash survivors’ clothes

It has to employ every possible and sensible communication strategy, campaign and action such as mass marketing, digital marketing and personal marketing to reach out to every segment of consumers.

Spent $8.68 billion on

advertising in 2010

Advertising •Started with daytime radio dramas •Practically created soap operas to target women consumers•Mostly TV commercials

Advertising

•Use of tailored advertising campaigns for specific market segments

Advertising • Use of media neutral ideas that can be translated across

a range of media channels.

Sponsorships

EndorsementsEllen DeGeneras Drew Barrymore Sofia Vergara

EndorsementsEva Mendes

Gisele Bundchen Taylor Swift

Endorsements Sebastian Vettel Roger Federer Theirry Henry Tiger

Woods

Digital marketing • Other than brand websites, P&G launched interactive forum type

websites for expectant mothers and teenage girls

• Also launched two web series

• Actor from television commercial became a youtube sensation, P&G capitalized on this by releasing more videos of the actor interacting with fans, bloggers and celebrities.

•Also launched two social media websites •Also launched a informational website providing household advice for men •Created facebook pages for its brands

References• Harvard Business school case study 9-311-117• https://

www.google.co.in/imghp?hl=en&tab=wi&ei=MlicWNKCNYrovgTZl7jwDQ&ved=0EKouCBQoAQ• https://en.wikipedia.org/wiki/Procter_%26_Gamble• https://en.wikipedia.org/wiki/List_of_Procter_%

26_Gamble_brands

DISCLAMERCreated by Udaibir Singh Sandhu, MIT Manipal, during a marketing internship under Professor Sameer Mathur, IIM Lucknow