Procter & Gamble: Marketing Capabilities

By Rajarshi Ghoshal

P&G Overview• Founded in Cincinnati, Ohio in 1837 by two relatives due to they married sisters

• William Procter - Candlemaker • James Gamble – Soapmaker

• Aggressive factory investment in 1850’s• High quality products based on national reputation

• Focus on innovation • 1879, Gamble's son -chemist- launched "Ivory“ • 1890, started the pay of dividends and R&D lab • 1919, created direct sales force department • 1924, establish market research department • 1931, institutionalized competitive brand management • 1933, invented opera soup • 1943, created product category division

• 1946, launched "Tide"

P&G Organization 2008

• Dismantling the Matrix structure replacing by: • 7 Global Business Units (Profit Responsible) • 7 Market Development Organizations (Market responsible and sales growth) • Global Business Services (Internal business processes)• Objective: Improve speed to innovate• High growth expectations • Sales Growth: 6 - 8% • Profit Growth: 13 - 15% • Looking for “Standardization and Globalization”

DISCLAIMER

Created by Rajarshi Ghoshal, Jadavpur University during a marketing internship under Prof. Sameer Mathur, IIM Lucknow