Harvard Case Study analysis: P&G
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P&G has grown to become a global leader in branded consumer goods known for iconic products through international expansion and acquisitions since 1945. It has transformed its marketing approach from focusing on functional benefits to becoming more consumer-centric and digital, leveraging successful campaigns like Old Spice on YouTube. Looking forward, P&G aims to continue innovating as the world's largest marketer and reach 5 billion consumers worldwide.
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Harvard Case Study analysis: P&G
- 2. Global Leader in branded consumer goods
- 3. Global Leader in branded consumer goods Known for iconic category- defining products (Crisco, Ivory, Tide)
- 5. 1945- 1980
- 6. 1945- 1980International Expansion expanded into new lines of business through acquisitions
- 7. 1945- 1980International Expansion expanded into new lines of business through acquisitions Divested brands that didn’t fit company profile
- 8. First Global Brands- Always, Pringles & Pantene (in 1980s)
- 9. First Global Brands- Always, Pringles & Pantene (in 1980s) U.S.’s Top Cosmetics Company- acquisition of Noxell (1989) and Max Factor (1991)
- 10. First Global Brands- Always, Pringles & Pantene (in 1980s) U.S.’s Top Cosmetics Company- acquisition of Noxell (1989) and Max Factor (1991) Entry into pet-care market: acquisition of Iams (for $2.3 billion)
- 11. First Global Brands- Always, Pringles & Pantene (in 1980s) U.S.’s Top Cosmetics Company- acquisition of Noxell (1989) and Max Factor (1991) Entry into pet-care market: acquisition of Iams (for $2.3 billion) $57 billion acquisition of Gillette in 2005 made P&G the Top Consumer Goods Company
- 13. Replacing Trial-and-Error methods R&D + Sale’s Marketing
- 14. Replacing Trial-and-Error methods R&D + Sale’s Marketing In 1999, 2.6% growth reduced
- 15. Replacing Trial-and-Error methods R&D + Sale’s Marketing In 1999, 2.6% growth reduced To boost growth 7 GBUs + 3 Teams (to support GBUs) replaced 4 demographic business units
- 16. Connect-and-Develop Innovation & new products
- 17. Connect-and-Develop 50% 50% Innovation & new products From P&G labs Non-P&G scientist & engineers
- 18. Connect-and-Develop 50% 50% Innovation & new products From P&G labs Non-P&G scientist & engineers Shift mindsets away from resistance to “not invented here”
- 19. Impact
- 20. Impact R&D production increase by 60%
- 21. Impact R&D production increase by 60% Innovation success doubled
- 22. Impact R&D production increase by 60% Innovation success doubled Cost of innovation dropped
- 23. Impact R&D production increase by 60% Innovation success doubled Cost of innovation dropped R&D investment (percentage of sales): 4.8% (2000) 3.4% (2006)
- 24. Impact R&D production increase by 60% Innovation success doubled Cost of innovation dropped R&D investment (percentage of sales): 4.8% (2000) 3.4% (2006) Firm struggled to control costs Stocks slid: $118 $52 (over 18 months)
- 25. MARKETING
- 28. ROMI (return on market investment) shift from TV & Print Digitize & Direct marketing e.g. Project Apollo
- 29. ROMI (return on market investment) shift from TV & Print Digitize & Direct marketing e.g. Project Apollo Pritchard’s “Store Back” approach shift PG’s mind-set to shopper marketing experience e.g. Pampers 2008 campaign
- 30. ROMI (return on market investment) shift from TV & Print Digitize & Direct marketing e.g. Project Apollo Pritchard’s “Store Back” approach shift PG’s mind-set to shopper marketing experience e.g. Pampers 2008 campaign Multi-brandingorleveragingP&G brand to derive sales to its sub-brands e.g. 2010 Winter Olympic campaign (18 brands under common message)
- 32. $500 million spent 20,000 market research studies 5 million consumers 100 countries 1
- 33. $500 million spent 20,000 market research studies 5 million consumers 100 countries Technology stake in Ocado (2008) partnership with Tobii (2010) Neuromarketing (psychological surveys) 1 2
- 34. Qualitative focus group discussions customer interviews in-store interviews in-context visits 3
- 35. Qualitative focus group discussions customer interviews in-store interviews in-context visits Quantitative data acquisition (habits & practices of consumers) personal endorsement approach (helped advertisers; e.g. VocalPoint- P&G’s word-of-mouth program) 3 4
- 37. Early innovations Daytime Radio Dramas
- 38. Early innovations Daytime Radio Dramas Soap Operas
- 39. Early innovations Daytime Radio Dramas Soap Operas Developed long-standing partnerships with advertising agencies to develop robust Brand Identities
- 41. “Thank You, Mom” campaign was one of the most successful campaigns of P&G
- 42. P&G’s staple advertisements focused on its product superiority and clear functional benefits “Thank You, Mom” campaign was one of the most successful campaigns of P&G
- 43. While maintaining its central advertising strategy, P&G shifted to more design- and emotion-driven advertising “Thank You, Mom” campaign was one of the most successful campaigns of P&G P&G’s staple advertisements focused on its product superiority and clear functional benefits
- 46. “Thank You, Mom” campaign Most successful campaign in P&G’s 175 year history
- 47. “Thank You, Mom” campaign Most successful campaign in P&G’s 175 year history Delivered + $200 million incremental sales (USA)
- 48. “Thank You, Mom” campaign Most successful campaign in P&G’s 175 year history Delivered + $200 million incremental sales (USA) 17 million views on YouTube
- 49. “Thank You, Mom” campaign Most successful campaign in P&G’s 175 year history Delivered + $200 million incremental sales (USA) 17 million views on YouTube Most shared videos of the Games
- 50. “Thank You, Mom” campaign Most successful campaign in P&G’s 175 year history Delivered + $200 million incremental sales (USA) 17 million views on YouTube Most shared videos of the Games 33.6 billion earned media impressions
- 54. COVERGIRL For 50 years, COVERGIRL has created must-have beauty products that bring out the best in women. GILLETTE Gillette YouTube channel featuring Roger Federer commercial attracted + 2 million viewers.
- 55. MEDIA SPENDING
- 56. P&G maintained its marketing budget in early 2009 recession
- 57. P&G maintained its marketing budget in early 2009 recession HOW?
- 58. P&G shifted to coupons and instore promotional activities. This maintained media pressure, while shifting all costs.
- 60. P&G expanded its digital offering with the launch of
- 61. P&G expanded its digital offering with the launch of papmers.com BeingGirl.com
- 65. The web series targeted African American women and was a huge success
- 66. The web series targeted African American women and was a huge success Collection sales grew 20% (in the first half of 2010)
- 67. The web series targeted African American women and was a huge success Collection sales grew 20% (in the first half of 2010) Second quarter dollar share for Pantene were up 14%
- 68. The web series targeted African American women and was a huge success Collection sales grew 20% (in the first half of 2010) Second quarter dollar share for Pantene were up 14% 4% for CoverGirl 3% for Olay
- 69. P&G’s Old Spice
- 72. The campaign was a MILESTONE in P&G’s transition from
- 73. The campaign was a MILESTONE in P&G’s transition from MASS MARKETER one-on-one DIGITIZED MARKETER
- 74. The campaign generated +2 billion media impressions
- 75. The campaign generated +2 billion media impressions 13.7 million individual views
- 76. The campaign generated +2 billion media impressions 13.7 million individual views 94,000 followers on Twitter
- 77. The campaign generated +2 billion media impressions 2,300 Twitter lists 13.7 million individual views 94,000 followers on Twitter
- 79. SOCIAL MEDIA
- 80. In 2007, P&G launched TWO social media sites
- 82. Capessa For women on Yahoo! People’s Choice Community associated with the People’s Choice Awards
- 83. In 2010, P&G started using Facebook as a marketing tool
- 84. 15 brands with “friends” in SIX-FIGURE range In 2010, P&G started using Facebook as a marketing tool
- 85. 15 brands with “friends” in SIX-FIGURE range In 2010, P&G started using Facebook as a marketing tool Manofthehouse.com launched in 2011
- 86. 15 brands with “friends” in SIX-FIGURE range In 2010, P&G started using Facebook as a marketing tool Manofthehouse.com launched in 2011 Aimed to “speak to the whole man”
- 88. Tide “Loads of Hope” campaign (2005)
- 89. Tide “Loads of Hope” campaign (2005) Opened Laundromat to wash Katrina hurricane survivors' clothes
- 90. Tide “Loads of Hope” campaign (2005) Opened Laundromat to wash Katrina hurricane survivors' clothes Tide had its best sales in +10 years
- 91. Times Square campaign 2006
- 92. Times Square campaign 2006 Targeted holiday shoppers aimed to attract customers for life
- 93. Times Square campaign 2006 Targeted holiday shoppers aimed to attract customers for life The campaign created 9 YouTube ads and generated 20 million views/month
- 95. MOVING FORWARD
- 96. MOVING FORWARD P&G has proven its ability to navigate digital environment as evident from its campaigns
- 97. MOVING FORWARD P&G continues to evolve & innovate as WORLD’S LARGEST MARKETER
- 98. MOVING FORWARD P&G continues to push towards reaching 5 BILLION CONSUMERS WORLDWIDE
- 100. DISCLAIMER Created by Harshit Gupta, IIT Roorkee, during marketing internship by Prof. Sameer Mathur, IIM Lucknow