procter and gamble - harvard business review case study
TRANSCRIPT
Procter and Gamble is an American multinational company headquartered
in downtown Cincinnati, Ohio, United States, founded by William Procter and James Gamble. Its products include cleaning agents & personal care products.
PRODUCTS
BRANDS
APPROACH“Acquisition or
joint venture on small scale through trial and error, learn the formula for success before making a major commitment.”
PURPOSE“Improve lives
of customers through continued innovation to reach more consumers, in more parts of world, more completely.”
FOCUS•Growth of core brands and categories with unrelenting focus on innovation.• Building business with unserved and undeserved consumers.• Continuous growth and development of faster growing , higher margin businesses with global leadership potential.
CASE FACTS
Expenditure (2010): $8.68 billionSales (2010): $78.94 billionNet Income: $12.74 billionMarket Capitalization: $186.63 billion
Product Percentage
Household Care
Beauty and Groming
Health and Wellbeing
Sales by RegionNorth AmericaWest EuropeAsiaLatin AmericaCentral and east Europe
ACQUISITIONS• 1957- Charmin Paper Mill• 1963- Folger’s Coffee• 1980- Crush International
Limited• 1981- Frost Proof• 1981- Norwich Eaton
Pharmaceuticals• 1985- Metamucil• 1989- Noxell• 1991- Maxfactor• 2003- Iams• 2005- Gillette
Contributors to Success:
• R & D and Innovation• Global Business Units• Connect and Develop• Marketing Strategy
Innovation and R & D• Marketing
Secret Sauce• 1887-
Analytical Lab• Replacement
of trial & error• Products:
Crest toothpste,
Head & Shoulders, Pampers.
Global Business Units (GBUs)• Based on
product category• Three new
teams: 1. Development Team 2. Venture Team 3. Market Development Team
Connect and Develop• 50% innovation
from P & G and 50% from non P & G scientists and engineers.
• 7500 inside firm and 1.5 million beyond with permeable boundaries.
• Products: Swiffer duster, Olay Regenerist,
Crest Whitestrip and Crest Spinbuds.
Marketing Strategies• Function,
performance & price.• Separate design
unit• Consumer
centric marketing• P & G website• Return on
marketing investment• Multi branding• Personal
endorsement• Psychological
Surveys
CUSTOMER RESEARCH STUDIES
Qualitative(GDs, Consumer interviews, in-context visits,
in-store interviews)
Quantitative (Blind, concept and use tests,
quality monitoring,
study of consumer
habits)
•Crafting messages by mothers•Samples•Coupons•Opportunities to share opinions•Personal endorsement
•Customized by region•Strong connection to functionality•Design and emotion driven•Sponsorships•Celebrity endorsements•Social Media •Digital
• Introduction• Approach• Purpose• Focus• Case Facts• Timeline• Product Percentage• Sales by region• Acquisitions• Contributors to success• Marketing Strategies• Customer Research
Studies• Special Promotions• Advertising• SWOT Analysis