Case Analysis of the Harvard Business Case: Procter & Gamble: Marketing Capabilities

1. PROCTER & GAMBLE:
MARKETING CAPABILITIES
(CASE ANALYSIS)
Manjushree Yethirajyam

2. COMPANY BACKGROUND

3. IVORY
One of P&G’s first product
was Ivory, an inexpensive
soap that floats on water.

4. P&G pursued international
expansion since the 1930s. It
expanded into new lines of
business through acquisitions.

5. PROCTER & GAMBLE TODAY

6. APPROACHES FOR
GROWTH
P&G adopts three distinct
methods to control their
current businesses and
grow into new forays.

7. APPROACHES FOR GROWTH
1 Design Innovation and Strategy, Research and Development
2 Rigorous Product and Market Testing
3 Advertising, Commercials, Endorsements, Digital Marketing, Social Media

8. DESIGN INNOVATION AND
STRATEGY, RESEARCH
AND DEVELOPMENT
“to grow P&G’s core brands
and categories with an
unrelenting focus on
innovation”

9. Four geographic
business units
Seven global
business units (GBUs)

10. CLAUDIA KOTCHKA
• New Design Unit – Design Innovation
and Strategy
• Claudia Kotchka – Vice President of
Design Innovation and Strategy
• Aim: Make P&G top product-design
company

11. DESIGN TASTING
• “bring design to every stop of
product development and
introduce a culture of design to
P&G”
• Design Tasting for top 200
executives
• Design - a complement, helping
consumers recognize,
understand, and in some cases
even imagine the functions of a
given product

12. “design informed the innovation process
and even changed the function of some
products”

13. TWO MOMENTS OF TRUTH
Whenever a customer buys a
product, he experiences two
moments of truth:
•first, on the store shelf; and
• second, when the consumer
used the product and decided
whether it delivered on its
promise.

14. P&G’S WEBSITE

15. INNOVATION AND R&D

16. R&D INVESTMENTS

17. RIGOROUS PRODUCT AND
MARKET TESTING
“to build
our business with
unserved and underserved
consumers”

19. VOCALPOINT.COM
The program crafted product
messages that mothers and other women shared with peers;
P&G also gave them samples, coupons, and opportunities
to share their opinions with P&G.
This personal endorsement approach helped
advertisers.

20. Tide is one of the few P&G
products that was launched
the market without the stand
rigorous testing that all P&G
products usually undergo.
This is because testing woul
take about 2 years and there
was fear that competitors
would catch up with the
technology.

21. ADVERTISING
“to continue to grow and
develop faster-growing,
higher margin businesses
with global leadership
potential”

22. Daytime Radio Shows and
Television Commercials

23. Advertising Campaigns customized by regions

24. U.S. Olympic Team Sponsor for 2010 Ga
Winter Games, Russia – 2012
Summer Games, Brazil - 2016National Football League (NFL) Sponsor

25. Celebrity
Endorsements

26. Multi-branding:
Campaigns

27. THE WAY AHEAD

28. WAY AHEAD
“We focused on three specific
choices: to grow P&G’s core
brands and categories with an
unrelenting focus on innovation;
to build our business with
unserved and underserved
consumers; and to continue to
grow and develop
faster-growing, higher margin
businesses with global
leadership potential.”

29. EXPENDITURES ON ADVERTISING
0
20
40
60
80
100
120
140
160
180
200
Crest Olay CoverGirl DayQuil Pampers Swiffer Febreze Tide Gillette
Biggest Spending Brands
Spendings (in million US Dollars)

30. OPTIMISING MARKETING
EXPENDITURES

31. CHANGES IN MARKETING
STRATEGIES
 using digital technology for
production,
 pooling more production
 using open sourcing and
creativity in our work to create
advertising

32. CHANGES IN MARKETING
STRATEGIES
 reduce the amount it spends
on promotions by partnering
with retail partners and
combining their joint marketing
programmes
increasing media continuity by
bouncing spending more evenly
across months and quarters on
all brands to enable top of mind
awareness year around.
 optimise its medium mix by
advertising based on when,
where and how much time
consumers spend engaging with
ads on various media platforms

33. Thank you.