Procter And Gamble : Marketing capabilities

1. HARVARD BUISNESS CASE STUDY
MARKETING CAPABILITIES

2. Procter & Gamble

3. •Procter & Gamble (P&G) is a global leader in branded
consumer goods.
•Known for iconic category-defining products such as
Ivory soap, Crisco shortening, and Tide laundry
detergent.
•It was the first company to advertise directly to
consumers, in the 1880s, and it invented“soap operas”
by sponsoring radio and TV programming that targeted
women.

5. 1945-80…Expanded in Latin America,
Western Europe, Japan.
Kept on acquisitioning companies such as
Charmin Paper Mill, and established its
presence in different markets.
Acquisition of Gillette made them top
consumer good company.
Innovation in products kept them blooming.

6. •P&Gs 2010 sales hit $78.94 billion and
net income $12.74 billion
•Market capitalization, $186.63 billion
• Household care was 48% of P&Gs 2010 sales
• Beauty and grooming 34%
•Health and well-being, 18%

7.  Procter and Gamble's original logo was created in 1851
as a large crude cross. This later changed to a man in
the moon overlooking 13 stars which is said to
remember the 13 colonies. This logo caused a lot of
media publicity in the 1980's when rumours spread
that the moon and stars logo was a satanic symbol.

8.  There is a passage in the Bible which states "And there
appeared a great wonder in heaven; a woman clothed
with the sun, and the moon under her feet, and upon
her head a crown of 12 stars which also caused a lot of
media publicity.
 The company officials denied this as there was no
evidence that it was linked to the Church of Satan or
any other organisation.

9.  From 1995 to 2003 Procter & Gamble unsuccessfully
sued Amway over these rumours. Then in 2011 the
company successfully sued individual Amway
distributors for reviving and propagating the false
rumours.

10. P&G’s

11.  Toothpaste with Fluoride (Crest)
 Anti-dandruff Shampoo (Head & Shoulders)
 Disposable diapers (Pampers)

12. •The $57 billion acquisition of Gillette in 2005
made P&G the top consumer goods company.
P&G focused on three specific choices:
•to grow P&Gs core brands and categories with
an unrelenting focus on innovation,
•to build our business with unserved and
underserved consumers,
•to continue to grow and develop faster-growing,
higher margin businesses with global leadership
potential

13. Marketing
at P&G

14.  Endless resources at their disposal to
exploit unmet consumer needs to drive
category growth
 P&G recognized that building brands is not
exclusively or even primarily a marketing
activity. Rather it is a systems problem

15.  Steadily lowering the costs of manufacturing
and distribution ensured a brands success
 P&G had a multibrand strategy,and it managed
brands across carefully, with each getting
individual support and satisfying a segment
of the market

17. Became a worldwide sponsor,
specifically to raise its
visibility in emerging markets,
WORLDWIDE PARTNER
For the 2012 winter games
held in Russia
And For 2016 summer games
held in Brazil

18. National Football
League (NFL)
sponsorship gave
consumers
opportunities to
engage with the
NFL, “just for
choosing P&G
brands,”

19. Celebrity Endorsements
P&G’s acquisitions of several beauty companies in the 1990s had brought
a number of celebrity endorsers including CoverGirl spokespersons
Christie Brinkley, Drew Barrymore, Ellen DeGeneres, and Queen
Taylor Swift also joined the company for the CoverGirl brand. Eva
Mendes and Naomi Watts were announced as new spokes models for
Pantene shampoo in the spring of 2011

20. Social Media
Manofthehouse.com, whichfeatured household advice
for men,including tips.
In2007, P&G launched twosocial media sites: Capessa
for womenonYahoo! Health andthe People’s Choice
Community, associated withthe People’s Choice awards.

21. Exhibit 1
Ivory soap – its purity says it all. P&G spent
about $3 million on the promotion
Tide - Originally developedduring the height of
World War II, Tide (called Product X) was not
just a newsoap, but a newsynthetic formula for
a detergent—a breakthroughproduct
Tide’s two-year lead on the competition made
speed-to-marketan ingrained imperative for the
firm, having an impact on all aspects of the P&G
system

22. Exhibit 1
Pampers - A blockbuster brand that almost single-
handedly created the disposable diaper category
for the mass market.
Luvs, P&G’s “premium” disposable diaper brand, gave
P&G the chanceto offer additional features, but
also forced the company to learn several difficult
lessons asthe market became commoditized and
competitors matched Luvs’ premium feature

23. Exhibit 1
Crest -The first toothpaste with fluoride, Crest was also a category-defining
product that had gained iconic status along with P&G’s other household
names.
Crest’s brand franchise beyondtoothpaste, with Crest Whitestrips and,
through an acquisition, the Spinbrush, both in 2000

25. Institute top ten
need listone for
each brand
Includeadvantages
of
brandfor
consumers
Converttheseinto
science problems
for scientists

26. P&G’sR&Dproductivityincreasedbynearly60%,andthefirm’sinnovationsuccess
doubled,witha simultaneousdropincostofinnovation.R&Dinvestmentas a
percentageofsalesdroppedfrom 4.8%in2000to3.4%in2006.

28. North
America
42%
Western
Europe
21%
Asia
15%
Other
Developed
Nations 22%
SALES

30. Comprised ofthree teams-
A. Business Development team focused on innovation in existing
categories.
B. Venture teamacquiring brands in newareas and nurturingideas of
business development team.
C. Market Development Organizationperforms Market Research that
ensure success of global product inlocal market.

31. Issues to be addressed
Brand Dilution
Research and
Innovation
Increasing Rivals

33. Important Changes:P&G
JimStengelas chief marketingofficer
Creating newdesign unitseparate fromP&G’s
other businessunits
Focus on product functionalityand price

34.  Design-Tasting, design case studies for top200
executives.
 P&G design boardsimilar to Mattel andNike
 Helpingconsumers imaginingthe functions of
products.

36. oFirst Moment of Truth –
On the store shelf
oSecondMoment of Truth– Decision of customers
on satisfaction on product’s delivery

39. Partnered with firms such as ProjectApollo,a joint
venture betweenmedia andmarketing research
firm Arbitron Inc.andVNU,the Dutch media
company
that ownedNielsen.

40. They collected tracked themedia habits of 30,000
households representing 70,000 consumers.
The data collected, alongwith informationabout online
usage and grocery purchases, and frequentsurveys of
attitudesand lifestyle choices, helped subscribers such as
P&G understandits marketingtactics’ performance.

41. Measuring brandloyalty and
Customer relationship

42. Did
they stop?

43. Promotedin-store promotionssuch as coupons,
displays,specialoffers, and other promotional
materials.
Advertising campaignfor the 2010 Winter Olympics , a
message thanking moms across the globe.

44. Rigorous product and market testing
Process-oriented
Over 20000research studies, invested $500
million
Gathered data on consumer’s habits and practices
who purchased P&G products.

46. Accuratelymeasuredtheconsumers need
Successfully identifiedtheconsumer’s need
Delivered theproducts satisfyingthe consumers globally.

47. EEG technologymeasured the electrical activities
in brainas subjectwere exposedto the
commercials.
This approach heldthat feelingsaffected
decisionsand humanbehaviour.

50. WHAT'S AHEAD
FOR
P&G???

51.  P&G continued to push toward reaching 5 billion consumers served
worldwide,its evolving marketing capabilities took center stage.
 Digital environment with efforts like “The Man Your Man Could Smell
Like” and Manofthehouse.com
 Emotional efforts such as the “Thank you, Mom” and “Loads of Hope”
campaigns.
 Building on its strengths in R&D.
 Evolve and innovate as the world’s largest marketer.