procter and gamble - harvard business review case study

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Page 1: Procter and Gamble - Harvard Business Review Case Study
Page 2: Procter and Gamble - Harvard Business Review Case Study

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.

Page 3: Procter and Gamble - Harvard Business Review Case Study
Page 4: Procter and Gamble - Harvard Business Review Case Study

PRODUCTS

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BRANDS

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APPROACH“Acquisition or

joint venture on small scale through trial and error, learn the formula for success before making a major commitment.”

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PURPOSE“Improve lives

of customers through continued innovation to reach more consumers, in more parts of world, more completely.”

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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.

Page 9: Procter and Gamble - Harvard Business Review Case Study

CASE FACTS

Expenditure (2010): $8.68 billionSales (2010): $78.94 billionNet Income: $12.74 billionMarket Capitalization: $186.63 billion

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Product Percentage

Household Care

Beauty and Groming

Health and Wellbeing

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Sales by RegionNorth AmericaWest EuropeAsiaLatin AmericaCentral and east Europe

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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

Page 14: Procter and Gamble - Harvard Business Review Case Study

Contributors to Success:

• R & D and Innovation• Global Business Units• Connect and Develop• Marketing Strategy

Page 15: Procter and Gamble - Harvard Business Review Case Study

Innovation and R & D• Marketing

Secret Sauce• 1887-

Analytical Lab• Replacement

of trial & error• Products:

Crest toothpste,

Head & Shoulders, Pampers.

Page 16: Procter and Gamble - Harvard Business Review Case Study

Global Business Units (GBUs)• Based on

product category• Three new

teams: 1. Development Team 2. Venture Team 3. Market Development Team

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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.

Page 18: Procter and Gamble - Harvard Business Review Case Study

Marketing Strategies• Function,

performance & price.• Separate design

unit• Consumer

centric marketing• P & G website• Return on

marketing investment• Multi branding• Personal

endorsement• Psychological

Surveys

Page 19: Procter and Gamble - Harvard Business Review Case Study
Page 20: Procter and Gamble - Harvard Business Review Case Study

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)

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•Crafting messages by mothers•Samples•Coupons•Opportunities to share opinions•Personal endorsement

Page 22: Procter and Gamble - Harvard Business Review Case Study

•Customized by region•Strong connection to functionality•Design and emotion driven•Sponsorships•Celebrity endorsements•Social Media •Digital

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Page 28: Procter and Gamble - Harvard Business Review Case Study

• 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

Page 29: Procter and Gamble - Harvard Business Review Case Study