Harvard Business School Case

“Acquisition or joint venture on a small scale, and through trial & error, learn scale, and through trial & error, learn the formula for success before making a major commitment.”

“To build on its company purpose to improve the lives of its customers through continued the lives of its customers through continued innovation to reach “More Consumers, In More Parts of the World, More Completely.”

In 1887,P&G set up an analytical lab laying the foundation for a professional R&D foundation for a professional R&D division and establishing one of the first corporate labs in the field of consumer goods

3 teams supported the GBUs: business development business development team venture team tasked market development organizations

50% of innovation and new products to come from P&G’s network of labs, and 50% through partnerships and connections with non-P&G scientists and engineersnon-P&G scientists and engineers

identified proven technologies, packages, and products that P&G could improve ,scale up & market on its own or through partnerships.

Marketing Strategy• “We want to design the purchasing experience—what we call the ‘first moment of truth’; we want to design every component of design every component of the product; and we want to design the communication experience and the user experience. I mean, it’s all design. And I think that’s been hard for people to come to grips with.”

Commitment to the Consumer

• P&G interacted with more than 5 million consumers in almost 100 countries.

• 38 The firm conducted over 20,000 research studies each year, and invested nearly $500 million into developing and executing these studies.

group discussions interviewed consumers at home performed in-context visits in- store interviews in- store interviews gathered data on consumers utilizing blind tests

“We know that the most powerful form of marketing is an advocacy message from a trusted friend.”

Early innovations included sponsorship of daytime radio dramas (1932) and television commercials (first aired in 1939). Soap operas : the daytime drama As the Soap operas : the daytime drama As the World Turns was launched in 1956 to specifically target women in their homes. Another World, The Young and the Restless, and Guiding Light were other longtime P&G-sponsored daytime dramas.

Working with agencies, P&G began by first developing a “media neutral” idea that could be translated across a range of media . With Tide , the idea was that the detergent With Tide , the idea was that the detergent “works wonders on the fabrics that touch your life.”

P&G’s advertising campaigns for Vidal Sassoon hair-care products were customized by region In South Korea, P&G limited advertising to a few niche television channels, with greater emphasis niche television channels, with greater emphasis on huge outdoor displays at a Seoul shopping center. In Japan, the campaign focused on mobile devices.

Sponsorships • U.S. Olympic team sponsor for the 2010 Games, for the 2012 winter games to be held in Russia and the 2016 summer games in Brazil• A National Football League (NFL) sponsorship gave consumers opportunities to engage with the NFL, “just for choosing P&G brands,” and tied in with the NFL’s Play 60 initiative, 60 initiative,

In 2010, P&G increased ad spending by $1 billion, with a 20% increase in media increase in media impressions;higher revenues led to an increase in dollars spent

Created By Utkarsh Kumar Sahu , NIT Raipur,during a Marketing Internship with Prof. Sameer Mathur , IIM Lucknow.