Procter & Gamble : Marketing CapabilitiesHarvard Business School Case

Company Overview

A FMCG GIANT

The Humble Beginning Back in 1837 the story began with a simple handshake between two men: William Procter and James Gamble. As partners, they put their soap and candle business on the map, spawning a period of steady growth. It was during these formative years the Procter & Gamble Company was born.

& Today,

Just numbers speak it all !!

Approach

Since 1837, they have built a rich heritage of positively impacting consumers’ lives with Brands that make each day a little better.

What is P&G’s

marketing secret?

How did they

become so successful

?

Is there any secret?

Well

remember,

P&G’s major asset is their never ending innovation and R&D.

What are P&G’s

marketing

strategies?

1. MULTIBRAND STRATEGY

2. EFFECTIVE MARKET SEGMENTATION

• TIDE was a premium brand• CHEER was for cleaning sensitive colors.• GAIN had afresh scent.• OXYDOL was used for bleaching.

3. FOCUSED ON PRODUCT DESIGNP&G didn’t use design as an antidote to its function driven process but rather as a compliment to help customers to recognize, understand and imagine the functions of the product.

4. CUSTOMER CENTRIC MARKETING

Invested $500 million , more than any company in the world in market research interacting with more than 5 million consumers in almost 100 countries.

COCREATE & CODESIGN along with customers . “ CONSUMERS

ARE THE BOSS”

5. NEUROMARKETING • Psychological surveys to measure mood of consumers.• Identified the visibility & attention consumers gave to packaging & advertising.• Understood how consumers used internet and engaged in e-retailing.

What are P&G’s

advertising

strategies?

Blend of both functional and

emotional driven advertising

1. SPONSORSHIPS

2. CELEBRITY ENDORSEMENTS

3. DIGITAL MARKETING

What might be the

challenges?

1. CHALLENGES OVERSEAS : CHINA

• Fierce competition• Slow consumer spending• Online shopping• Highly volatile market• Much to improve• Substitutes easily available

2. CHALLENGES OVERSEAS : INDIA

• Biggest threat from HUL• Market leaders in 6/11 categories• Lack of distribution channels• Targeting less income group• Wide scope of improvement

FUTURE PREFERENCE

P&G overview Brand Portfolio P&G’s approach Its marketing secret Marketing strategies Advertising strategies Challenges Future scope

CREATED by Sumedh Choudhari, Nirma University, Ahmedabad during marketing

internship under Prof. Sameer Mathur, IIM Lucknow.