Procter & Gamble: Marketing Capabilities Case Analysis by Sujay Agrawal

1. Procter & Gamble: Marketing Capabilities
Case Study Analysis
Sujay Agrawal
IIT Bombay

2. Evaluating P&G’s measures to reach
“More consumers in more parts of the world, more completely”
Which requires to create long-lasting & steadily growing brands
Situation Of The Case

3. 1. Expanding product categories and product Lines
2. Understanding the changing market
3. Reaching the customers with new and old offerings
The long run deliverables to accomplish this are :

4. 1. Expanding product categories and product lines
P&G achieves this through 2 methods :
1. Acquisition
By acquiring small businesses P&G enters new categories like household paper
products and food & beverages

5. • In-house labs developed all initial products
like Pampers and Downy
• External R&D units, labs and technology
consultants used later under the Connect-
and-Develop model.
• University labs, retired scientists and
independent researchers incorporated for
product development solutions.
2. Innovation

6. Innovation process successful; evident from facts:
• By 2006 more than 35% of P&G’s new products originated externally
• Pampers was an innovation success with phenomenal manufacturing
efficiency, which kept the price reasonable despite high demand
Also boosted internal R&D as well as decreased the cost of innovation
Evaluation of increasing product line

7. • Extensive market research for global products success in local markets
• Shifted focus from geographical business units to Global business units
(for global prod development + quick market strategies)
• Customer research conducted by
a. distributing free samples
b. conducting focus groups
c. in store interviews with potential customers
• Psychological methods and Neuromarketing techniques used to understand
consumer behavioral patterns.
2. Understand changing market

8. • In store Ads, promotions, TV Ads customized to regions
e.g. South Korea focused more on outdoor ads
while Japan focused on mobile advertisements
• Sponsorships – of television shows (soap operas) and
Olympics teams of some nations
3. Reaching Customers with New & Old offerings

9. • Recent shift to digital marketing
Websites, YouTube channels, social media and content based
online communities such as Manofthehouse.com
• Shift in marketing approach from functionality to design and an emotional appeal
• Developing media neutral messages to be adapt to old as well as upcoming new
media outlets
Evaluation of advertisements
Measure of Sales, ROMI (Return on Marketing Investment) and number
of successful brands are suitable to evaluate P&G’s reach to consumers
These parameters suggest the current strategy of digital & in-store
marketing is successful

10. Thank You

11. Credits
• http://www.pg.com/en_IN/
•
•
•
•