harvard business school case submitted to prof sameer mathur

1. Harvard Business School Case

5. • Procter & Gamble Co., also known as P&G, is an
American multinational consumer goods company
headquartered in downtown Cincinnati, Ohio,
United States.
• It is one of the most skillful marketer of consumer
goods and holds one of the most powerful
portfolios of trusted brands.
• It touches the lives of consumers in more than 180
countries.

10. Company
Background

11. • The company pursued international expansion in
1930s.
• It expanded into new lines of business through
brand acquisitions.
• It developed its first global brands
(Always,pantene,pringles) in 1980s.
• It acquired Gillette in 2005 to become top
consumer goods company.
• 2010 – “ More consumers ,In more parts of the
world ,more completely ”

12. Who are the key players?
• CEO Durk jager - (1999-2000)
• CEO A.G Lafley- (2000-2009)
• CEO Bob McDonald-(2009-2015)
• Jim Stengel (CMO)
• Claudia kotchka-(vice president for design, innovation and strategy)
• Marc Pritchard- (Global brand building officer)

14. Trial and error method
Scientific approach connected
sales and marketing with R&D
Emphasis on product design
Consumer centric marketing
approach
Connect and develop

16. To grow P&G’s core brands and
categories with an unrelenting focus on
innovation.
To build business with unserved and
underserved consumers.
To continue to grow and develop faster –
growing ,higher margin businesses with
global leadership potential.

17. objective 1:Growth of P&G’s
core brands & categories with
an unrelenting focus on
innovation & design.

18. Innovation and R&D: P & G
Marketing’s secret sauce

19. Key points
• Replaced the old trial and error method pursuing and
took a scientific approach and connected R&D with
company’s sales and marketing.
• Seven global business units replaced four geographic
units. Three new teams supported the GBU’s (business
development, venture team and market development
organization)
• The new structure and approach to innovation was
called connect and develop.
• Successful product introduction
• Problem :the firm struggled to control costs and sock
slid from $118 to $52 over 18 months.

21. ANALYSIS OF NET SALES AND EARNINGS

22. Objective 2:Building business with unserved &
underserved consumers through consumer-
centric , digital & direct and neuromarketing ,
multibranding and interactive community
promotion.

23. Marketing
Strategy

24. • Brand’s lay at the heart of P&G ‘s success. It has a
multibrand strategy.
• In 2000 focus shifted from function, promotion and
,price to product design company.
• Design tasting, clay street project were started
• Design was used as a complement to function,helping
consumers recognize,understand the product.
• It led to a more consumer centric approach.
• Sharper focus to return on market investing (ROMI)
• Focused on in the shopping experience.

25. Commitment
to consumer

26. • P&G invested more in market research than any company in the
world.20,000 research studies each year and $500 million into
developing and executing these studies. A lot of innovative
approaches were introduced in product and market research that
gained qualitative and quantitative information from the
consumers , in-turn resulting in better products and positive buying
behaviour.
• Word-of-mouth advertising was followed , especially in relation
with females through campaigns like “Thank you Mom” & “Loads of
Hope” which acted as a means of emotional branding.
• The pre and post purchase behavior towards products were
measured by online grocer sites & Neuromarketing which helped
in building one-to-one relationship with customers.

27. Advertising

28. • P&G had been a marketing trailblazer from the
outset.
• It was the first company to advertise directly to
consumers through radio dramas and television
commercials.
• P&G develop a “media neutral” that could be
translated across a range of media.
• Strong connection to functionality remained
central to P&G advertising ,Lafley,kotchka aimed
to shift it towards design and emotion driven
advertising.

29. Sponsorships

31. Celebrity
Endorsements

32. P&G endorsed many celebrities and spokesmodels for
its acquired beauty companies and products like
covergirl cosmetics and pantene shampoo.
Gillette and head & shoulders ads featuring
sportspersons were advertised through youtube, T.V. ,
Online and print media.

33. Digital
Marketing

34. • 1999 launched the pampers.com which provided information for new and
expectant mothers
• 2007 launched BeingGirl.com to provide information on issues related to
teenage girls.
• Digital media enabled niche experimentation targeted to specific
customers, including online serials , video games, and YouTube channels
for specific products.
• It launche d first mobile marketing campaign Crest whitening plus scope
toothpaste.
• P&G’s Old Spice television commercial and YouTube sensation, “The Man
Your Man Could Smell Like,” gave P&G its greatest exposure in the online
community and bridged the power of digital and social media.
• From mass marketer , P&G became one-to-one digitized marketer.

35. P&G’s line of “My Black is Beautiful” products, introduced two
web series in 2010 to showcase its products. This attracted a
lot of views online . Collection sales and market share
increased.

36. Social Media

37. In 2007, P&G launched two social media sites:
Capessa for women on Yahoo! Health and the
People’s Choice Community, associated with the
People’s Choice awards.
In 2011, when research
showed that men were
interested in work generally
done by women in houses ,
P&G rounded out its earlier
social media efforts with
Manofthehouse.com, which
featured household advice for
men .

38. Interactive
Community
Promotion

39. • P&G used T-shirts having slogans and endorsed celebrities
like Katrina Kaif to promote sale of products like Tide. The T-
shirts were worn by celebrities and were sold online and
proceeds went to hurricane affected families.
• A similar mass promotional activity was held in Times Square
in 2006 , targeting holiday shoppers. It generated YouTube ads
and attracted a lot of viewers , mainly youth.
• A large blue neon sign in the middle of a Broadway block read
“Restrooms” and led people up an escalator into a lounge
with flat-screen TVs, leather couches, a fireplace, and 20
shiny, spotless toilets. The ad was used to promote Charmin
toilet paper, and tourists loved it.

40. Objective 3:Continue to grow & develop
faster-growing higher margin businesses with
global leadership potential

41. Moving Forward

42. • It is pushing towards reaching 5 billion
consumers .
• It has proven its ability to navigate the
digital environment with efforts like “the
man your man could smell like”.
• Building its R&D, consumer research and
product performance it is continuously
evolving and innovating as world’slargest
marketer