A brief analysis of an HBR case on p&g

1. PROCTER & GAMBLE
M A R K E T I N G C A P A B I L I T I E S

2. ABOUT
Procter & Gamble
(P&G) is a global
leader in branded
consumer goods,
known for iconic
category-defining
products.

3. FOCUS OF P&G
A B R I E F C R I T I C A L R E V I E W

4. P&G took a scientific approach and
connected R&D with the company’s sales
and marketing
I N N O V A T I O N A N D R & D
1
Reaching out to & trying to penetrate new
markets.
S E R V I N G U N S E R V E D C U S T O M E R S
2
Promoting & positioning the business to
to utilise its global leadership potential.
G R O W & D E V E L O P T H E B U S I N E S S
3
ISSUES OF FOCUS
P & G I S F O C U S E D O N 3 I S S U E S

5. INNOVATION
AND
RESEARCH & DEVELOPMENT
Penetrating
new and
local
markets
Widen the
R&D base, so
as to
encourage
innovation.
1 2
GOALS

6. STEPS TAKEN FOR R&D
COMBINING R&D WITH SALES & MARKETING
Initially, R&D division was
established as one of the first
corporate labs in the field of
consumer goods. 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.

7. STEPS TAKEN FOR R&D
TO BUILD GLOBAL PRODUCT DEVELOPMENT
AND QUICK­TO­MARKET STRATEGIES
7 global business units (GBUs) based on
product categories replaced the
company’s 4 GBUs.
3 new teams supported the GBUs:
1.Business development team
2.Venture team and market
3.Development organizations.
P&G hoped for “bigger innovations, faster
speed to market, greater growth
—innovation vitality.”

8. STEPS TAKEN FOR R&D
CONNECT­AND­DEVELOP WITH NON­P&G
SCIENTISTS
The new structure and approach to
innovation, called connect-and-
develop, identified proven
technologies, packages, and
products that P&G could improve,
scale up, and market on its own or
through partnerships

9. INNOVATION
AND
RESEARCH & DEVELOPMENT
Products like
Crest toothpaste,
Head & Shoulders
shampoo and
Pampers diapers
were successful
Wide R&D led to introduction
of products like Swiffer
Dusters, Olay Regenerist, Crest
Whitestrips & Crest Spinbrush.
However, the firm struggled to
control costs, and its stock slid
from $118 to $52 over 18
months
1 2
RESULTS

10. REACHING OUT TO UNSERVED &
UNDERSERVED MARKETS
To communicate
to new &
existing
consumers that
P&G is a pioneer
in innovation
To reach out
to consumers
by conducting
one-on-one
marketing
1 2
GOALS

11. STEPS TAKEN TO REACH OUT
VERY DETAILED BUILDING OF BRANDS
Market segments are identified and
each segment's need is catered to
by building a brand for a segment.
This is done to serve the unserved.

12. STEPS TAKEN TO REACH OUT
EMPHASIS ON DESIGNING PRODUCTS
TO COMMUNICATE INNOVATIVENESS
Lafley (CEO in 2000s), set a goal to
make P&G the top product-design
company in the world, a departure
from P&G’s past focus on function,
performance, and price. Claudia
Kotchka was VP for design
innovation and strategy,
P&G used design as a complement
to its function-driven process.,

13. STEPS TAKEN TO REACH OUT
CUSTOMER­CENTRIC MARKETING
Large-scale market research using
technologically advanced modes
Reaching out to more customers
through VocalPoint program
(promoting advocacy messages to
peers by women).
Catering to emotional &
psychological aspects of
consumers (e.g. effects of bad hair
days on consumer behaviour)

14. REACHING OUT TO UNSERVED &
UNDERSERVED MARKETS
The influx of
design had a
strong impact
on P&G’s
product
development
Design informed
the innovation
process and
even changed
the function of
some products.
1 2
RESULTS

15. GROW & DEVELOP
TO UTILISE
GLOBAL LEADERSHIP POTENTIAL
Have a good
brand image
and hence,
positioning the
brand well.
Making P&G
locally & globally
relevant
1 2
GOALS

16. STEPS TAKEN TO ENSURE
GLOBAL PRESENCE
LOCAL ADVERTISING
Sponsoring soap operas
TV-commercials
Developed relationships with ad
agencies.

17. STEPS TAKEN TO ENSURE
GLOBAL PRESENCE
SPONSORSHIPS
Sponsoring popular events &
causes.
Celebrity endorsements
Media promotions-Digital media &
social media.

18. SPONSORSHIPS

19. CELEBRITY ENDORSEMENTS

20. DIGITAL MEDIA & SOCIAL MEDIA MARKETING

21. CATCHY MARKETING OF P&G

22. MOVING AHEAD
W H A T N E X T F O R P & G ?

23. As P&G continued to push toward
reaching 5 billion consumers served
worldwide, its evolving marketing
capabilities took center stage.
1
Building on its strengths in R&D,
consumer research, and product
performance, P&G continued to evolve
and innovate as the world’s largest
marketer.
2MOVING AHEAD

24. SUMMARY

25. THANK YOU!