Proctor and Gamble: Marketing Capabilities
Transcript of Proctor and Gamble: Marketing Capabilities
Welcome to A Case Study
On
AND ITS MARKETING CAPABILITIES
Procter & Gamble is
a major U.S. manufacturer
of soaps, cleansers, and other household
products.
Vision"Be, and be recognized as, the best consumer products and services in the world"Mission"Procter and Gamble will continue to serve consumers by continuously innovating products that will allow us to be leaders in household and personal care, health care, and food products. To produce products with the utmost care to give nothing but quality to our communities. And to continue to grow so that we can maximize our shareholder's wealth" (Procter & Gamble. 2010)
P&G- AN OVERVIEWFounded in Cincinnati, Ohio in 1837 by two relatives due to they married sisters
1) William Procter - Candlemaker2) James Gamble – Soapmaker
High quality products boosted the national reputation
Focus on innovation-
1879- Gamble's son -chemist- launched "Ivory“
1890- started the pay of dividends and R&D lab
1919- created /direct sales force department
1924- establish market research department
1931- institutionalized competitive brand management
1933- invented opera soup
1943- created product category division
1946- launched "Tide"
P&G have three main product lines:
•household and personal care,• food consumer •and health care
products.
Internal and External Analysis• Procter & Gamble has a strong internal and external
foundation.
• It has built its reputation on achieving the goals it sets forth
• The company has remained a front competitor in innovation by introducing new and improved products to consumers
• P&G realizes that in a competitive market speed of research and development is a key element.
Long Term Objectives
• Support the business strategy, organizational principles and culture.
• Attract and retain required talent• Accept financial responsibility to
shareholders• The goal of long term objectives is to
support the business strategy as change is implemented.
Plan Goals and Implementation
• should continue to monitor trends in the market and consumer requests for products
• implement a corporate retrenchment strategy to enable them to expand their product line
• to make their product available to other international locations based on market research.
• This can be implemented by P&G conducting a stakeholder management survey.
Controls and Evaluation
PRODUCTS
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
S A L E S
SWOT analysis of your plan's focus areas
• Strengths:
–Profitable–Adaptability of Product Line to meet consumer
needs.–One of Procter & Gamble's strengths is it remain
profitable in a struggling economy.
• Weakness:
–Turnaround time for Research and Development products.–Complexity of organization structure
• Threats:– Ecological Factors– Economic Factors– Sales are dependent on consumer
spending
• Opportunities:– Global marketing– New Products, improvement in existing
products, manufacturing and marketing techniques.
• Goals: – Eliminate the overlap in management– Initiate the "hub & spoke" structure for competitive
intelligence operations– Expand sales of product line globally– International expansion to markets with potential for
growth and limited competition exits– Decrease turnaround time for research and development
products– Customer responsiveness– Product development cycles– Product or service improvements– Speed in delivery or distribution– Develop open Innovation Strategy– Emphasis on process innovation that permits low-cost
product design, manufacturing methods and distribution– Product cost reduction
COM
PETITORS
MARKETING STRATEGIES
• Designing & Innovation
• Consumer centric marketing approach
• Return on marketing investments (ROMI)
ADVERTISING STRATEGY
P&G reconsidered its advertising strategies to better meet 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 13.7 million people • Separate facebook page for each
product • Manofthehouse.com for house hold
advice to man • Capessa for women on youtube
Research Methods• Qualitative
Group discussions Interviewed consumers at home In store interviews
• Quantitatively Gathered data on consumers
utilizing blind test Concept and use test Quality monitoring Large scale studies of the habits and
practices of consumers
Critical Success Factors• Critical success factors are the steps that the
business, both management and employees, must take to bring the strategies into a reality.
• The factors may vary from time to time, but they must be addressed in order for the company to operate at optimal efficiency.
• A critical factor for Procter & Gamble is quality and innovation.
• The company must aggressively market new products and bring research technologies to customers quicker.
CONCLUSION• Never give your consumer a product based reason
to switch away from your brand
• Think of every brand of P&G, and treat every brand that we have, as though it were our only brand.
• Always determine whether a product innovation is brand-specific or generic.
• Competition will always follow your technology, not your brand
• After you have defined your options, always test your worst-case scenario in the market.
DISCLAIMERCreated by Reeva Mishra, IIIT Bhubaneswar
Purpose of presentation: For Internship in Marketing
Guide:Prof. Sameer Mathur, IIM Lucknow
THANK YOU