Marketing CAPABILITIES:Procter & Gamble Co

HARVARD BUSINESS SCHOOL CASE

Procter & Gamble

Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United States, founded by William Procter and James Gamble, both from the United Kingdom.

CEO : Alan G. Lafley Headquarters : Cincinnati, Ohio, United States Founded : October 31, 1837, Cincinnati, Ohio, United

States Subsidiaries : Wella, Braun, Max Factor, Clairol, Gillette

India Ltd., more Founders : James Gamble , William Procter

Mission• To Provide branded products and services of

superior quality and value that improve the lives of the world’s consumers, now and for generations to come.

Vision• To be the best consumer products and services

company in the world.

Values• Integrity• Leadership• Ownership• Passion for winning• Trust

Evaluate the marketing strategy taken by P&G during its early expansion in 1980s

Evaluate the current strategy of global expansion mainly after 2010 when McDonald took over as CEO of the company

Issues to be focused

Products

Brands

Case Facts

Global Leader in Branded Consumer goods Has 2 dozen $1bn brands known worldwide First company to advertise directly to

consumers. 2010, total sales=$78.94bn Net Income=$12 bn Market capitalization=$186.63bn

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

Sales Percentage

Sales

Beauty

Groomin

g

Helth

Care

Snacks and Pet Care

Fabric Care and Home Care

Percentage of Earning

• Sales

• Beauty

• Groomin

g

• Helth

Care

• Snacks and Peet Care

• Fabric Care and Home Care

SWOT Analysis of Marketing Strategy

Types of factorsLocation of factor

Favorable Unfavorable

Internal Strengths:-• Diversified Brand

portfolio• Research and

Development• Strong

distribution network

Weakness:-• Online media

and leadership

• Media- social, digital

External Opportunities:-• Diversification if

it’s products• Capitalization of

online media• Growth in India

FMCG market

Threats:-• No new

innovation• Competition• Government

regulation

Marketing Strategies

• Consumer centric approach• Designing and innovation• Return on marketing investments

Advertising• P&G reconsidered its advertising strategies to

bettermeet the company’s global market and consumers

Digital and social media marketing Product based web sites Mobile add campaign

“Irresistibility quiz” Old spice youtube video

campaign attracted 13.7million people

Separate facebook page for each product

Manofthehouse.com for house hold advice to man

Capessa for women on youtube

SPONSORSHIPS

CELEBRITY ENDORSEMENTS

POTERS FIVE FORCES MODEL

• Buyers:- Low bargaining power• Suppliers:- Low• Potential Entrants:- Less as P&G

itself is the market leader• Substitute:- Moderate threat• Industry Rival:- High

• BRAND LOYALTY• DISTRIBUTION

CHANNEL• INNOVATION• PRICING STRATEGY• QUALITY OF THE

PRODUCT

How is P&G different from others?

WHAT’S NEXT

• Digital marketing with campaigns

• Emotional, design and function driven marketing

• R&D

• Consumer research & product performance.

•Treat every brand special and do full justice to it in every aspect including advertisement, promotions etc.•Never give your consumer any reason to switch away from your brand.•After defining your options, always test worst case scenarios.•Competition will always follow your technology, not your brand.

Conclusion

DISCLAIMERCreated by Omkar Nawlakhe, NPTI Nagpur, during the Marketing Internship by Prof. Sameer Mathur, IIM Lucknow