p&g hbs case study : understanding market capabilities

MARKETING CAPABILITIES

HBS CASE STUDY

COMPANY

THE FOUNDERS OF

IT ALL STARTED WITH

SOAPS &CANDLES

IN 1837

HOW BIG A COMPANY IS TODAY?

OVER 300 BRANDS

140 COUNTRIES

OVER 5 BILLION

CONSUMERS

EMPLOYS OVER

138,000

MAIN BUSINESS SEGMENTS1. BEAUTY CARE 2. HOUSEHOLD CARE 3. BABY CARE & FAMILY CARE

23% Net Earnings 28% Net Earnings 17% Net Earnings

OTHER BUSINESS SEGMENTS4. HEALTH CARE 5. GROOMING 6. SNACKS & PET CARE

16% Net Earnings 13% Net Earnings 3% Net Earnings

SOME BIG & MAJOR BRANDS

WHAT ARE THE CORE STRENGTHS OF

WELL…HERE IT IS…….

IS THE LARGEST SPENDER ON MARKETING ACTIVITIES IN THE WORLD.

CUSTOMER-CENTRIC MARKETING

1. STRONG FOCUS ON PRODUCT-DESIGN

DESIGN DEFINES “THE FIRST MOMENT OF TRUTH” OF THE PRODUCT

2. PRODUCT FUNCTIONALITY

3. PRICE

SMALLER BRANDS OF RELY MAINLY ON DIGITAL MARKETING

IT MAY DEPEND ON BRAND POSITIONING WHICH TOO VARIES FROM MARKETS TO MARKETS

TIDE AND ARIEL BOTH BEING P&G BRANDS ARE POSITIONED DIFFERNTLY AS A WHITENER AND STAIN REMOVER RESPECTIVELY IN INDIA

P&G’s Old Spice television commercial and YouTube sensation, “The Man Your Man Could Smell Like,” gave P&G its greatest exposure in the online community in 2010, and bridged the power of digital and social media

The campaign was seen as a milestone in P&G’s transition from a mass marketer to a one-on-one digitized marketer

HAS BEEN A SPONSOR FOR MANY SPORTS EVENTS INCLUDING THE OLYMPICS AND NFL TO NAME A FEW.

has come to realize that the equity of great brands has to be something that a consumer finds inspirational and an organization finds inspirational.Thus pursuing an emotion-driven advertising through the “Thank-you Mom” campaign

THE ACQUISITION

BIGGEST MERGER IN THE HISTORY OF

CONSUMER GOODS.

ACQUIRED

FOR $57 BILLION TO BECOME THE WORLD’S LARGEST CONSUMER

GOODS COMPANY

WHY

STRENGTH

WOMEN PERSONAL CARE PRODUCTS

MEN GROOMING PRODUCTS

COMPLEMENTARY IN STRENGTH CULTURES & A VISION TO CREATE POTENTIAL FOR SUPERIOR

SUSTAINABLE GROWTH

R&D CONNECTED WITH SALES & MARKETING

PARTNERSHIPS & CONNECTIONS WITH NON-P&G RESEARCHERS

CONNECT & DEVELOP

Identify proven technologies, packages, and products that P&G could improve, scale up, and market on its own or through partnerships

TO MAKE THE MOST TECHNOLOGICALLY ENABLED BUSINESS IN THE WORLD

WHY DIGITALREVOLUTION?

1. BETTER INNOVATION 2. HIGHER PRODUCTIVITY

3. LOWER COSTS 4. PROMISE OF FASTER GROWTH

HOW WOULD DRIVE GROWTH IN THE FUTURE???

1. PRESENT PRODUCTS

COULD GENERATE NEW SALES WITH INCREASED EMPHASIS ON HEALTH CARE AND BEAUTY CARE PRODUCTS.

EXISTING BRANDS HAVE THE POTENTIAL TO GROW 4-6% A YEAR IN SALES.

2. NEW PRODUCTS

NEEDS NEW PRODUCTS TO ADD TO THEIR REVENUE.

THE EQUIVALENT OF 2 SWIFFER INTRODUCTIONS A YEAR WOULD MAKE THEIR GOAL

3. ACQUISITIONS

COULD PROBABLY USE SMALL TARGETED ACQUISITIONS LIKE THE ONE THAT PRODUCED $200 MILLION-A-YEARTHE CREST SPIN-BRUSH

CONCLUSION

This presentation is created by Aditya Chaturvedi, IIT Roorkee during a Marketing Internship under the guidance of Prof. Sameer Mathur, IIM Lucknow