William Proctor & James Gamble formed a small Candle and Soap

company in 1837, Later known as P&G

So what made it so successful ?

Spends more than $100 million on

over 10,000 formal consumer research projects , generating more than 3 million contacts

Pringles potato chips struggled for almost 10 years . P&G analyzes product market ,affordability , awareness & distribution

via various channels

Invests $2 billion annually in R&D and

employs more PHDs than Berkeley , Harvard

and MIT combined . 3800 patents annually .

Ex – Dryel ( helps “dry cleaning” at home , Swifter , Febreze .

Designs products with above average quality & continuously improving them . Ex – Pampers Rash Guard , Tide compact detergents .

• Produces brands in several sizes & forms - gaining more shelf space & preventing competitors from moving to satisfy unmet market needs .

• Use parent brand to launch new products ex- Mr. Clean , Old Spice extended to new line of men’s deodorant

Markets several brands in same product category

Luvs Pampers

Oral-B Crest

Head & shoulders Pantene

Spending over $ 2.3 billion per year or

nearly twice as much as rival no. 2 General Motors

After Gillette acquisition , P&G - nation’s largest advertiser.

P&G’s sales force is in top 25 by “Sales and Marketing Management “magazine . Its sales force forms close ties with retailers .

• Great marketing matched by excellent manufacturing

• constant improvement in production processes

• One of lowest production costs in India

• Originated brand management system . • Has excellent administrators leading each

brand individually . • Changes their management system

periodically .

Risks & Challenges of being the Market Leader .

Brand Dilution

Preemptive Cannibalism

Scams like Price Fixing , Product Quality Test failures ( April 2011 P&G fined 211.2 million

euros in price fixing scam, tampons -toxic shock syndrome campaign )

Increased number of rival companies because of huge brand portfolio

Adapting to ever changing needs of consumers and making a profit reaping long term plans.

Breaking of Mergers or disagreement between company’s management leading to split-up.

Synchronization between all brands . Maintaining brand & costumer equity for all.

How to maintain strong brand image ?

Transparency within company's administration

Exploit modern methods of connectivity with creative advertisements using ex- Facebook

,YouTube , radio , WhatsApp

Rope in famous People for brand ambassadors which embody their brand values

Start more public welfare initiatives like SHIKSHA (India) , women empowerment etc.

Sponsoring more global events , Increase acquisitions of profitable firms/brands

So What

Now ?

Should focus on expansion as P&G failed to expand its volumes

in 1st 3 quarters of fiscal 2015 .

Restructuring its pricing strategy in lieu of market price hikes &the recent Brexit

Focus on emotional branding and customer loyalty with creative ads using all communication mix.

Look out for sponsoring more global events

History of P&G

10 Reasons for P&G ‘s market success

Risks & challenges of being a market leader

How can P&G maintain its strong brand image

What’s next for P&G in the coming years

Disclaimer

S U MM A R Y

DISCLAIMER Created by Esha Singh , Bits Pilani , during a Marketing Internship by Prof. Sameer Mathur ,IIM Lucknow