CASE STUDY

PROCTER & GAMBLE

MARKETING

CAPABILITIES

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

 On October 31, 1837 Procter & Gamble was created by William Procter and James Gamble, both born in the United Kingdom of Great Britain and Ireland

Global leader in FMCG sector. More than 2 dozen $1 Billion

brands. First company to directly advertise to

its consumers in 1880s.

PRODUCTS

BILLION $ BRANDS

ORGANISATIONAL STRUCTURE

COMPETITORS

SITUATION ANALYSIS(1)

Domintes FMCG sector through a huge brand portfolio

SITUATION ANALYSIS(2)P&G’s economic achievements in

2010:• Sales $78.94 billion• Net income $12.74

billion• Market

capitalization $186.63 billion

SITUATION ANALYSIS(3)

P&G showed global domination with more than

42% sales in North America. 21% from Western Europe and 15% from Asia

CASE HIGHLIGHTS

P&G’s Marketing

Secret Sauce:INNOVATION

P&G’s Marketing Strategy

INNOVATION: THE SECRET SAUCE(1)

• In 1887 established one of the first corporate labs.

• Set up GLOBAL BUSINESS UNITS(GBUs) replacing Geographic Business Units

• GBU: Business Development Teams Venture teams Market Development organizations

• Strategy was named Connect to Develop

INNOVATION: THE SECRET SAUCE(2)

• 50% of innovation and new products in 90s come from P&G’s own labs and rest from associate labs.

• Successful products such as SWIFFER DUSTERS, Olay Regenerist, Crest came into existence.

CONSUMER FOCUS

P&G interacts with more than 5 million customers

in more than 100 countries and conducts more than

20000 researches each year, spending more than $500

million.

CONSUMER FOCUS

Observations from researches:

• Advocacy( word of mouth) was the most effective way of marketing, found under company’s Vocal Point campaign.

• Neuromarketing helped them understand how feelings affected decisions and human behavior.

• P&G has always been advertising trailblazer.

• Developed “media neutral” idea that can be translated

across range of media.

• Shifted towards more design and emotion driven advertising.

.

SPONSORSHIPS

CELEBRITY ENDORSMENTS

DIGITAL & SOCIAL MEDIA MARKETING

Product based websites Mobile add campaign “Irresistibility IQ Quiz” Separate Facebook page for each product Manofthehouse.com for household advice for men. Capeesa foe women on Youtube. Old spice Youtube video campaign attracted 13.7 million views

COMMUNITY PROGRAMS

sales

Huge opportunities in developing markets

STRENGTHS Focus on R&DStrong Brand portfolioConsumer FocusStrong marketing team

OPPURTUNITIESExpansion opportunities

in developing marketsGrowing interests of

consumers in organic products

WEAKNESS Increasing product recalls Environmental issues

THREATSGlobal economic

conditions Increasing competitions. Quick change in younger

generation’s preferences

WHAT’S NEXT Digital marketing along with campaigns R&D improvement Consumer research and product

performance Emotion, design and function driven

marketing strategies.

SUMMARY• Case Basics• Situational Analysis• Markeying Channels• Marketing Techniques• SWOT Analysis

Created by Ravi Prakash Singh, NIT Patna

During a marketing internship byProf. Sameer Mathur, IIM Lucknow