Download - HBS Case study
P & G:Marketing capabilties
How has P&G’s marketing strategy evolved over the years?
Hypothesis
P&G’s marketing strategy has tried to focus on the unmet consumer needs and has exploited the seemingly endless resources of the company to drive its marketing campaign.
From a few thousand dollars spent in marketing
billion
marketing budget in 2010.
To
Lafley took over in 2000 and set a goal to make P&G the “top design company” in the world.
What did such emphaisis on desgin lead to?
Two moments of truth
1.On the store shelf
2.When the consumer used the product and decided whether it delivered its promise.
How did this change the marketing strategy of P&G?
Earlier
A marketing approach that was a.process oriented b.template driven culture
NowA deeper understanding of :
a.who the product was for
b.what was different about the consumer
c.how that consumer expected to use the product.
Because of…...a.Interaction with 5 million customers.
b.$500 million dollar investments for 20,000 research studies
P&G’s cincinnati headquarters faux home
To show the moment of truth
Customer centric marketing
Store back approach
a.Rather than adjust at late in the product’s development stage.
b.they began with the end in the mind.
Earlier,brands were scattered
During the 2010 winter olympics the entire assembly was shown which consolidated the mother brand.
Functionality emotion.
Sponsorships,Endorsements
To appeal to the audience at an emotional level.
Soaps
Sponsorships to the entire US team
Commander safeguard
Celebrity endorsements
Move towards digital marketing.
Speciality Websites...
Web series3.6 million views
My Black is beautiful
Old spice channel youtube
2 billion media impressions
Worldwide olympic sponsorship in 2010 was one part of this effort.
T-shirts could be bought online
Hypothesis
Integrating new technology in an attempt
to gain more hand on data on consumers and give more
and more inputs
to improve design,induce innovation & boost production.
EarlierMarket research R&D Design Product
Now
Market research R&D Design Product
1887 Nephew of one of the co-founders started one of the first corporate labs in the field of consumer goods.
From
To“connect and develop”
Achieved….
a.7500 researchers in the firm and 1.5 million beyond.
b.R&D productivity increased nearly 60%.
c.Innovation success doubled.
Innovations due to connect and develop
Use of resources effectively
a.interaction with 5 million customersb.$500 million dollar investments for 20,000 research studies
Use of high tech to study human responses to advertisements.
Eye Tracking EEG
Results of so much market research...
1.Word of mouth: Vocal Point Program1.6,00,000 women shared with peers.
2.P&G understood that
“the most powerful form of marketing is an advocacy message from a trusted friend.
2.Renewed focus
Integrating new technologies in an attempt to gain more hard data on consumers dovetailed with P&G’s culture of performance driven products,as the firm leveraged new and innovative ways to learn directly from consumers,while also building the opportunity to create more direct,one to one relationships with the target audience.
Reduced costs: Pampers
a.Postwar baby boom, led to a market segment of diapers.
b.Good market research product launch marketing inputs
affordable to large no of customers
manufacturing costs were reduced.
Thank you
These slides were prepared by Bhaveen Kumar,NIT GOA
as part of a marketing management internship
under Prof.Sameer Mathur,IIML.