P&G marketing capabilities anuragkumar
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Transcript of P&G marketing capabilities anuragkumar
Marketing Capabilities
Harvard Business School Case
• P&G was a global leader in branded consumer goods
• The company managed two dozen $1 billion brands
• The first company to advertise directly to consumers
• P&G was a seasoned marketer with strong consumer research, a powerful innovation network, an evolving marketing strategy, strong marketing talent, and the world’s largest financial commitment to advertising
P&G’s Financial Commitment to Advertising
ADVERTIZING BUDGET(2010): $ 8.68 billion
SALES(2010): $ 78.94 billionNET INCOME(2010): $ 12.74 billionMARKET CAPITALIZATION: 186.63 billion
Sales In 2010Net Sales Segment wise
BeautyGroomingHealth CareSnacks and Pet CareFabric Care and Health CareBaby Care and Family Care
Earnings in 2010Net Earnings Segment Wise
BeautyGroomingHealth CareSnacks and Pet CareFabric Care and Home CareBaby Care and Family Care
Net Sales
2008
2009
2010
75 75.5 76 76.5 77 77.5 78 78.5 79 79.5 80
Sales in $ billion
Sales in $ billion
Company Background
To be recognized as the best Consumer Products and Services company in the World.
We will provide branded products and services of superior quality and value that improve the lives of consumers across globe.
1837
Started International Expansion
in 1930s
Innovation and
R&D:P&G Marketing’s Secret Sauce
• P&G established one of the first corporate labs in the field of consumer goods in 1887.
• This helped them replace the trial-and-error method at that time.
• Company took a scientific approach and connected R&D with sales and marketing.
Crest toothpaste(1955), the first toothpaste with fluoride
Head & Shoulders anti dandruff Shampoo
Pampers(1961) disposable diapers
Were some of the first-time products.
Connect And Develop: New Ways to Innovation
Connect and Develop is P&G’s idea of partnering externally to accelerate innovation. It forced P&G to adapt and develop new skills
Global Networks Under Connect and Develop
Connect & Develop’s Success
P&G’s R&D productivity increased by nearly 60%, and the firm’s innovation success doubled, with a simultaneous drop in cost of innovation. R&D investment as a percentage of sales dropped from 4.8% in 2000 to 3.4% in 2006.
Marketing Strategies that have made
P>he Worlds Largest Marketer
Product Innovation And
design
Customer centric marketing Approach
Return on
marketing
investment
Market and marketing research
Research methodsQUALITATIVE• Group Discussions• Interviewed consumers at home• In Store InterviewsQUANTITATIVE• Gathered data on consumer utilizing blind tests• Concept and use test• Quality monitoring• Large scale studies of the habits and practices of
consumers
• P&G’s staple TV ads focused on P&G’s product superiority and the clear functional benefits of its products.
• Lately P&G has shifted towards more design- and emotion-driven advertising.
• Equity of great brands has to be something that a consumer finds inspirational and an organization finds inspirational.
Celebrity Endorsements
Digital
marketing
Averaged 3.6 million viewers in its season on BET
• 13.7 individual views on YouTube• 2 billion media impressions• A milestone in P&G’s transition from a mass to one-to-one digitized marketer
• Product based websites.• Facebook page for more than 15 brands
with more friends in 6 figure range.• Capessa for women on Yahoo!• Manofthehouse.com offered advice on
household care to men. Rather than focusing on single men and heavy sex advice Manofthehouse.com aimed to “speak to the whole man.”
Interactive CommunityPromotion
Loads of hope
• P&G was a company with strong R&D and consumer research, powerful innovation, evolving marketing strategy, strong marketing talent, and strong commitment on media spending budget.
• P&G must be more focus on digital marketing trends and developing interactive brand communities because word of mouth through the social media and brand community becomes a powerful promotional tool to the consumers today.
This presentation is created by Anurag Kumar, IIT Roorkee during a marketing internship under the guidance of Prof.
Sameer Mathur, IIM Lucknow