PROCTER & GAMBLE:

MARKETING CAPABILITIES

NOT JUST STRATEGY BUT ORGANISATION

P&G: History & Background

• Founded by William Proctor and James Gamble in 1837

• 1930’s- International Expansion

• New lines of business

– Acquisitions

– Innovation

• U.S.’s top cosmetics company

What P&G focussed

on?

• Innovation

• Business with unserved and underserved consumers

• Global leadership potential

MISSION “We will provide branded products and services of superior quality and value that improve the lives of the world's consumers.”

P&G Marketing’s Secret Sauce

Innovation and R&D

“Connect And Develop”

• First R&D lab-1887

• To boost growth- 7 Global units replaced 4 geographical units Result: ”Bigger innovations, fast speed to market, greater growth – innovation vitality”

• 50% innovation and new products- P&G’s network labs

•

GLOBAL MATRIX

ORGANISATION in 2005

PRODUCT PRICE

PLACE PROMOTION

4 P’s of Marketing

PRODUCTS OFFERED BY P&G

PRICE • P&G has been priced the least with respect to its book value. Its

competitors Kimberly Clark and Unilever have been priced at 137 and 7.5 times the book value respectively.

• P&G is better placed in terms of debt, price-to-book and EPS as compared to most of its peers. It is also going through a portfolio transformation which might further help in improving the financials of the company in the long run

PLACE

• P&G products are available almost all over the world. P&G

distributes the products in about 140 countries to approximate 5

billion consumers.

• DHL courier is a service provider to the company through which

it ensures its logistical efficiency.

• Company has manufacturing and distribution networks in all

major countries where it runs its operations like China, USA, UK

and India.

PROMOTIONS •

•

•

•

•

Advertising

• Marketing trailblazer from the outset • Soap operas • Advertising strategies to better meet the

company’s global markets and consumers- media neutral

• Sponsorship- Olympic team sponsor • Celebrity Endorsements- beauty

companies, CoverGirl, sports person

DIGITAL MARKETING

• Operation of brand websites- pampers.com,

BeingGirl.com

• Mobile marketing ad campaign

• Targeting African American- “My Black is

Beautiful”

• Social Media- Capessa for women on yahoo,

People’s choice

• Interactive community promotion

Strengths

1. P&G has over 300 brands globally which are available in over 180 countries, over

100,000+ people are employed in P&G globally

2. It has around 24 brands which have annual sales over a billion dollars

3. Its brand have a high recall, high visibility due to excellent marketing and advertisng

4. P&G has operations in over 80 countries

5. P&G brand has also contributed as sponsors in major sporting and entertainment

events

6. Several of its brands like Gillette, Duracell, Ariel, Olay etc are prominent global

brands, recognized through several awards across brands, sectors globally

7. Sponsorships of lifestyle events, competitions etc have helped the brand to build a

connect with the people, Excellent distribution and availability of P&G products through

supermarkets, groceries, online etc

Weaknesses

1. Fake products sold under the name of their brand name is a big concern for P&G

2. Its products have stiff competition from big domestic players and international

brands

SWOT Analysis

Opportunities

1. P&G can tap rural markets and increase penetration in urban areas

2. Mergers and acquisitions can be done to strengthen the brand

3. Increasing purchasing power of people thereby increasing demand

4. P&G can leverage its strong name and powerful brands to diversify into

more consumer products

Threats

1. Intense and increasing competition amongst other FMCG companies can

affect the market share of Procter and Gamble

2. FDI in retail thereby allowing international brands worldwide

3. Competition from unbranded and local products

4. Since P&G is a global brand, recessions, fluctuating dollar prices,

economic crisis etc can affect its business operations

SUMMARY • Introduction

• History & Background

• Mission

• Organizational structure

• 4 P’s of Marketing and

advertising

• SWOT analysis

DISCLAIMER Created by Vaibhav, NSIT New Delhi, during marketing internship under the guidance of

Prof. Sameer Mathur