Slides prepared by Lokendra Verma

1. Procter & Gamble:
Marketing Capabilities

2. PROCTER & GAMBLE:
A BRIEF INTRODUCTION

3. • Founded by William Procter and
James Gamble in 1837
• Headquartered in Cincinnati,
Ohio, USA
• $76.27 billion dollar net revenue
as of 2015

4. BRANDS

5. Billion-Dollar Brands
Actionell
Ariel
Charmin
Crest
Dawn
Duracell
Febreze
Gillette
Head &
Shoulders
Olay
Oral-B
Pampers
Pantene
Tide

6. Major competitors
• ITC
• Unilever
• Marico
• L’Oreal
• Dabur

7. INNOVATIONS
&
r&D

8. Took scientific approach
very early than its
competitors

9. Methods used to innovate
and cost-cutting

10. Cut 15000 staff, promised more innovation

11. 7 Global Business units (GBUs) replaced 4
Geographic Business Unit

12. 3 new teams formed - Business development
team, venture team, market development
organizations

13. Then-CEO Durk Jager visions:
• 50% innovation from P&G’s labs
• Rest 50% from connections worldwide,
with non-P&G scientist
• This made a workforce of 7500 scientists
in P&G, and 1.5 million outside it
• This led to successful products like Swiffer
Dusters, Olay Regenerist, Crest
Whitestrips, and Crest Spinbrush

14. Marketing strategy
“P&G recognized that building brands is not exclusively or even
primarily a marketing activity. Rather it is a systems problem. Better
brands are based on innovation and continuous improvement
throughout the company’s operations and activities, starting with
developed or acquired products with performance features that
consumers value.”

15. P&G strove to develop metrics that measured brand
loyalty and customer relationships. A customer-centric
marketing strategy followed

16. Attention to Design
“We have an innovation process and we want to make sure
that design is plugged in at the front end” - Lafley

17. Alan Lafley took over as CEO in 2000, made major
reforms

18. He set a goal to make P&G the top product-
design company in the world.
P&G’s past focus on function, performance, and
price, now came with a design element.

19. New Design Unit was formed, its head Claudia
Kotchka given immense powers.

20. Design unit studied case studies, created a P&G
design board

21. Created the Clay Street Project, bringing cross-
functional teams from around the globe to
Cincinnati for 10 weeks to create new brands
based on design

22. Stronger focus to ROMI -
Return on Marketing
Investment

23. A shift from TV and print to digital and direct
marketing

24. Project Apollo tracked media habits of 30,000
households representing 70,000 consumers

25. These data along with surveys helped P&G
understand and decide marketing tactics

26. Commitment to the
Consumers

27. As part of ‘store-back approach’, P&G offered its
consumers discounts and promotions when the
market was down with recession

28. • Extensive consumer research undertaken
• Innovative approaches to consumer
engagement led to new marketing and
promotional opportunities, for example Vocal
Point

29. Through partnerships, P&G identified
visibility and attention that consumers gave
to packaging, displays, and advertising

30. Advertising

31. Earlier, direct consumer advertising was
practiced, like in case of Ivory

32. Innovations in advertising
–Sponsorships in daytime radio dramas
–Television commercials

33. Challenges faced in new markets
–Local and global competitors pose big
challenge for P&G
–P&G developed a ‘media-neutral’ idea to
showcase its messages across a range of
media
–Experimentation with new media, and radical
shift from traditional advertising

34. Sponsorships

35. US Olympic team sponsor for 2010 Olympics

36. Worldwide sponsor for 2012 winter games, Russia

37. Worldwide sponsor for 2016 summer
games, Brazil

38. Sponsored National Football League, attracting
consumers with Play-60 initiative

39. Celebrity Endorsements

40. CoverGirl spokespersons were all of P&G,
like Ellen DeGeneres, and Queen Latifah,
Sofia Vergara, Taylor Swift, Eva Mendes,
Naomi Watts

41. Pantene spokesperson included Gisele
Bündchen, Stacy London, and Teri Hatcher

42. Tennis star Roger Federer was featured in
Gillette Fusion Products ads

43. NHL player Alex Ovechkin was named a
Gillette Brand Ambassador in Russia and
Eastern Europe in 2010

44. Sebastian Vettel became a brand ambassador of
Head & Shoulders shampoo in 2010

45. Digital Marketing and
Social Media

46. With the launch of pampers.com in 1999,
the digital marketing also took a new rise
–Provided information to new and expectant
mothers
–Served as an interactive forum

47. BeingGirl.com was 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.”
–The site advertised P&G tampons and offered
free samples

48. In 2006, launched mobile marketing
campaign for Crest Whitening Plus Scope
toothpaste
–Encouraged customers to text ‘IQ’ or
‘EXTREME’ and take an ‘Irresistability IQ quiz’
to win iPods and other prizes

49. P&G launched ‘My Black is Beautiful’ campaign
for African American women
–Introduced 2 web series to promote this

50. P&G made YouTube sensation with Old
Spice’s commercial “The Man Your Man
Could Smell Like”
–The ‘Old Spice Guy’ Isaiah Mustafa answered
people’s tweets for 48 hours in real-time
–The video became huge online sencation

51. In 2007, P&G launched two social media
sites
–Capessa for women on Yahoo! Health
–The People’s Choice Community

52. Manofthehouse.com launched which featured
household advice for men, including tips on
grilling burgers, cleaning toilets, and disciplining
children

53. Interactive Community
Promotion

54. • Community service post 2005 cyclone
Katrina hit USA
• ‘Loads of Hope’ campaign launched

55. • Opened a Laundromat in New Orleans to
wash survivors’ clothes

56. • T-shirts with slogans such as “Be seen, not
spotted,” worn by celebrities
• The T-shirts could be purchased online
with all proceeds going towards families
affected by the hurricane