Procter & Gamble :Marketing Capabilities

Harvard Business School Case

WHAT IS P&G ?

Procter & Gamble Co. , also known as P&G , is an American multinational consumer goods company

headquartered in downtown Cincinnati , Ohio , U.S. , founded by William Procter and James Gamble.

It holds one of the most powerful portfolios of trusted brands.

P&G’s Billion- and Half-Billion-Dollar Brands

KEY PLAYERS• CEO A.G. LAFLEY• CEO BOB MCDONALD• CEO DURK JAGER• CEO JIM STANGEL• CLAUDIA KOTCHA • VICE PRESIDENT• DESIGN UNIT• MARC PRITCHARD• GLOBAL BRAND BUILDING OFFICER

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.

WHAT IS THE CURRENT

SCENARIO - 2010

2010 Sales

Household CaresBeauty & Groom-ingHealth & well be-ing

CASE STUDY

1. Growth of P&G’s core brands & categories with an unrelenting focus on innovation & design .

2. Building business with unserved & undeserved consumers through consumer-centric , digital & direct and neuromarketing , multibranding & interactive community promotion .

3. Continue to grow & develop faster-growing higher margin businesses with global leadership potential .

ONE MAJOR

IS “INNOVATION AND R&D” THE SECRET

SAUCE OF MARKETING FOR P&G

?

• Historically , P&G had pursued a multibrand strategy , and it managed brands across a category carefully , with each getting individual support and satisfying a segment of the market .

• A new design unit was created for design innovation & strategy . A culture of design was introduced in P&G which complemented function-driven process .

• A consumer-centric marketing approach was followed which allowed customization on the basis of needs of people .

•The firm leveraged its products through multibranding , focused on “Return On Marketing Investment” and shopper marketing experience .

• Products sold directly through dramas , T.V. Commercials and operas instead of including wholesalers and retailers in the chain .

• “Media Neutral” advertised in different and relevant local languages in less familiar markets .

• Lafley , Stengel and Kotchka aimed towards design and emotion-driven advertising along with benefits and functionality .

• Sponsored the U.S. Olympics in 2010 , 2012 winter games , Russia and 2016 summer games , Brazil .

• Fitness Campaign through NFL sponsorship and major campaign “Thank You Mom” touched everyone’s heart .

• Endorsement of celebrities and spokesmodels for beauty companies and product like CoverGirl cosmetics and Pantene shampoo .

• Gillette and Head & Shoulders ads featuring sportspersons were advertised through Youtube , T.V. , online and print media .

• Promotion , sponsorship and endorsement relationships and nontradition outlets such as product placement in television and film .

MEDIA SPENDING

• Niche experimentation through online serials , video games and Youtube channels for secific products .

• Mobile marketing and campaign , TV commercials and print advertisements had an online presence .

• “My Black Is Beautiful” products – two web series showcased products and attracted views online . Collection sales and market shares increased .

• Old Spice television commercial and Youtube sensation , “The Man Your Man Could Smell Like” bridged the power of digital and social media .

• One-to-one digitized marketer .

• Launched two social media sites : Capessa for women on Yahoo! Health and the people’s choice community , associated with the People’s Choice Award .

• Facebook as a marketing suppliment : Acquired facebook friends and figured out how to use them .

• In 2011 , 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 audiance virtually .

• T-shirts having slogans and endorsed celebrities used to promote sale of products like Tide . The t-shirts were worn by celebrities , sold online and proceeds went to hurricane affected people .

• A mass promotional activity held in Times Square targeted holiday shoppers , generated Youtube ads and attracted youths .

• An innovative ad including restrooms and spotless toilets used to promote Charmin toilet paper , and tourists loved it .

DISCLAIMER

CREATED BY SWARANG CHANDWASKAR , NIT SURAT DURING MARKETING MANAGEMENT INTERNSHIP

UNDER PROFESSOR SAMEER MATHUR , IIM LUCKNOW