Procter & GambleCase Study

Did you knowProcter & Gamble is an American multinational consumer goods founded by William Procter and James Gamble.Its products include cleaning agents and personal care products.

Who are the players•CEO A.G. Lafley

• CEO Bob McDonald• CEO Durk Jager• CEO Jim Stengel• Claudia Kotchka, o Vice-president, Design unit• Marc Pritchard, o Global Brand Building Officer

OBJECTIVES

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

SITUATION ANALYSIS

Has good company

background

Enters new market with a mission and

decisions

Takes scientific approach to connect with

people

Brings in a design unit as a

part of marketing strategy

Shift from product based marketing to consumer-

centric marketing

Communication through direct &

digital marketing &

sales promotion

Multibranding

Tries to move forward with an aim to reach 5

billion new consumers

Connect &

Develop

MAJOR ISSUES

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

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

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

MARKETING STRATEGY

•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.

CONSUUMER RELATIONSHIPS

• A lot of innovative approaches were introduced in product and market research that gained qualitative and quantitative information from the consumers , in-turn resulting in better products and positive buying behaviour.

• Word-of-mouth advertising was followed , especially in relation with females through campaigns like “Thank you Mom” & “Loads of Hope” which acted as a means of emotional branding.

• The pre and post purchase behavior towards products were measured by online grocer sites & Neuromarketing which helped in building one-to-one relationship with customers.

ADVERTISING•It was the first company to sell its products directly to consumers through dramas , T.V commercials and operas instead of including wholesalers and retailers in the chain.

• To compete in less familiar markets , it developed “Media neutral” idea that could be advertised in different and relevant local languages.

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

SPONSORSHIP• It sponsored the U.S. Olympic team in 2010 and raised its visibility as a worldwide sponsor for 2012 winter games in Russia and 2016 summer games summer games in Brazil.

• It engaged its consumers in fitness campaign through NFL sponsorship whereas the major campaign “Thank you Mom” still remained the best in touching everyone’s heart.

CELEBRITY ENDORSEMENTS• P&G endorsed many celebrities and spokes models for its acquired beauty companies and products like Cover Girl cosmetics and Pantene shampoo.

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

DIGITAL MARKETING• P&G launched its first mobile marketing ad campaign in 2006 . The campaign also released TV commercials and print advertisements, and had an online presence.

• P&G’s line of “My Black is Beautiful” products, introduced two web series in 2010 to showcase its products. This attracted a lot of views online . Collection sales and market share increased.

• P&G’s Old Spice television commercial and YouTube sensation, “The Man Your Man Could Smell Like,” gave P&G its greatest exposure in the online community and bridged the power of digital and social media.

SOCIAL MEDIA•In 2007, P&G launched two social media sites: Capessa for women on Yahoo! Health and the People’s Choice Community, associated with the People’s Choice awards.

• P&G used Facebook as a marketing supplement, not a replacement. It identified 2010 as the year to acquire Facebook friends, but the years beyond that were for figuring out how to use them.

• In 2011, when research showed that men were interested in work generally done by women in houses , P&G rounded out its earlier social media efforts with Manofthehouse.com, which featured household advice for men .

WHAT’S NEXT• Digital marketing with

campaigns

• Emotional, design and function driven marketing

• R&D

• Consumer research & product performance.

SUMMARY• Introduction• CEO• Objectives• Situation Analysis• Major Issues• Consumer

Relationship• Marketing Strategies Advertising Sponsorship Digital Marketing Social Media• What’s Next

DISCLAIMERCreated By Vikash Kumar,NIT RAIPUR during A marketing internship by Prof Sameer Mathur IIM LUCKNOW

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