p&g hbs case study : understanding market capabilities
TRANSCRIPT
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