Procter & Gamble: Marketing Capabilities Harvard Business School Case Study. This presentation is created during IIM Lucknow Marketing Internship under guidance of Prof. Sameer Mathur.
2. Procter & Gamble
Procter & Gamble Co., also known as P&G, is an American
multinational consumer goods company headquartered in
downtown Cincinnati, Ohio, United States, founded by William
Procter and James Gamble, both from the United Kingdom.
CEO : Alan G. Lafley
Headquarters : Cincinnati, Ohio, United States
Founded : October 31, 1837, Cincinnati, Ohio, United States
Subsidiaries : Wella, Braun, Max Factor, Clairol, Gillette India Ltd.,
more
Founders : James Gamble , William Procter
3. Mission
• To Provide branded products and services of superior
quality and value that improve the lives of the world’s
consumers, now and for generations to come.
Vision
• To be the best consumer products and services company in the
world.
Values
• Integrity
• Leadership
• Ownership
• Passion for winning
• Trust
4. Evaluate the marketing strategy
taken by P&G during its early
expansion in 1980s
Evaluate the current strategy of
global expansion mainly after 2010
when McDonald took over as CEO
of the company
Issues to be focused
7. 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
9. Has good
company
background
Enters new
market with a
mission and
decisions
Takes scientific
approach to
connect with
people
Brings in a
design unit as a
part of
marketing
strategy
Shift from
product based
marketing to
consumer-
centric
marketing
Communication
through direct
& digital
marketing &
sales promotion
Multibranding
Tries to move
forward with an
aim to reach 5
billion new
consumers
Connect
&
Develop
11. Percentage of Earning
• Sales
• Beauty
• Grooming
• Helth Care
• Snacks and Peet Care
• Fabric Care and Home
Care
12. SWOT Analysis of Marketing Strategy
Types of
factors
Location of
factor
Favorable Unfavorable
Internal Strengths:-
• Diversified Brand
portfolio
• Research and
Development
• Strong distribution
network
Weakness:-
• Online media and
leadership
• Media- social,
digital
External Opportunities:-
• Diversification if it’s
products
• Capitalization of
online media
• Growth in India
FMCG market
Threats:-
• No new
innovation
• Competition
• Government
regulation
16. 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
19. POTERS FIVE FORCES MODEL
• Buyers:- Low bargaining power
• Suppliers:- Low
• Potential Entrants:- Less as P&G itself is the
market leader
• Substitute:- Moderate threat
• Industry Rival:- High
20. • BRAND LOYALTY
• DISTRIBUTION CHANNEL
• INNOVATION
• PRICING STRATEGY
• QUALITY OF THE PRODUCT
How is P&G different from others?
21. WHAT’S NEXT
• Digital marketing with
campaigns
• Emotional, design and
function driven marketing
marketing
• R&D
• Consumer research &
product performance.
22. •Treat every brand special and do full
justice to it in every aspect including
advertisement, promotions etc.
•Never give your consumer any reason
to switch away from your brand.
•After defining your options, always test
worst case scenarios.
•Competition will always follow your
technology, not your brand.
Conclusion