p&g: case study
TRANSCRIPT
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Procter & Gamble : Marketing Capabilities
Harvard Business School Case
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“We touch & improve Lives”
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We are
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Who are We ?
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- Consumer Goods Company
- Fortune 500 American Multi National Corporation
- Headquarters in downtown Cincinnati, Ohio, US
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History of P&G
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Candle maker William Procter and soap maker James Gamble, were born in the UK and Ireland respectively. They settled in Cincinnati and married sisters, Olivia and Elizabeth Norris.
Alexander Norris, their father-in-law, persuaded his sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was created.
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Our Range of Products
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Earning and sales analysis
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Sales analysis
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Analysis
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Has good company background
Enters new market with a mission and
decisions
Takes scientific approach to
connect with people
Brings in a design unit as a part of
marketing strategy
Shift from product based marketing to consumer-centric
marketing
Communication through direct &
digital marketing & sales promotion
Multibranding
Tries to move forward with an aim
to reach 5 billion new consumers
Connect &
Develop
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Objective
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Know about the design, implementation & interpretation
of product development & marketing strategies
Evaluate primary and unique communication strategies
and money spending
Innovation, R&D and acquisition
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Some Basic Issues1. Growth of P&G’s core brands & categories with an unrelenting focus on
innovation & design.
2. Building business with unserved & underserved consumers through consumer-
centric , digital & direct and neuromarketing , multibranding and interactive
community promotion.
3. Continue to grow & develop faster-growing higher margin businesses with
global leadership potential.
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Innovation and R&D
ISSUE 1
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- In 1887, P&G set up an analytical lablaying the foundation of R&D division
- Seven Global Business Units(GBU) were set up to prepare quick-to-market strategies.
- CEO Durk Jager introduced a new “permeable boundary” approach between and P&G scientists and other non P&G ones.
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Marketing Strategy
ISSUE 2
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Commitment to consumers
(A)
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Lot of innovative approaches were adopted in market research.
Word-of-mouth advertisements like “Thank you Mom” & “Loads of Hope” acted as means of emotional branding.
Neuromarketing which helped in one-to-one relationship with customers.
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Marketing
(B)
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Earlier P&G had pursued a multiband
New design unit was created for design innovation & strategy
A consumer-centric marketing approach was followed
Focus on “shopper marketing experience”
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Advertising
(C)
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First company to sell its products directly to consumers through dramas , T.V commercials and operas
Lafley , Stengel and Kotchka aimed towards design and emotion driven-advertising
To compete in less familiar markets , it developed “Media neutral” idea that could be advertised in relevant local languages.
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Sponsorship(D)
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It sponsored the U.S. Olympic team in 2010 and raised its visibility as a worldwide sponsor for 2012 winter games in Russia and 2016 summer games in Brazil.
It engaged its consumers in fitness campaign through NFL sponsorship whereas the major campaign “Thank you Mom” still remained the best in touching everyone’s heart.
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Celebrity Endorsement
(E)
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Gillette and Head & Shoulders ads featuring sportspersons were advertised through YouTube, T.V. , online and print media.
P&G endorsed many celebrities and spokesmodels for its acquired beauty companies and products like Cover Girl cosmetics and Pantene shampoo.
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Media Spending
(F)
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During recession in 2009 , P&G shifted to coupons and in-store promotional activities
In 2010, P&G increased ad spending by $1 billion, with a 20% increase in media impressions
McDonald, who became CEO in 2010, stated that P&G would maintain the same level of spending, while shifting dollars to digital advertising
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Social Media(G)
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In 2007, P&G launched two social media sites: Capessa for women on Yahoo!
P&G used Facebook as a marketing supplement, not a replacement
P&G rounded out its earlier social media efforts with Manofthehouse.com, which featured household advice for men
Social media was a way to speak to its audience virtually
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Interactive Community Promotions
(H)
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“Restrooms” neon signs led to spotless toilets. The ad was used to promote Charmin toilet paper, and tourists loved it
P&G used T-shirts having slogans and endorsed celebrities like Katrina Kaif to promote sale of products like Tide.
A similar mass promotional activity was held in Times Square in 2006 , targeting holiday shoppers
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Global LeadershipISSUE 3
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Digital marketing with campaigns, Emotional, design and function driven marketing , R&D , consumer research & product performance.
Moving Forward
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Summary
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DISCLAIMERCreated by Prateek Verma, NIT Raipur during Marketing Internship by Prof Sameer Mathur,
IIM Lucknow