Case Analysis of the Business case provided by Harvard business school; on the well-known consumer goods brand named Procter and Gamble (P&G).This case study shows how P&G excelled in reaching out to customers by various methods and advanced techniques. Further, the presentation tells about the journey of marketing progress made by P&G.

1. PROCTER &
GAMBLE: Marketing
capabilities

2. WHAT IS
1
??

3. P&G is one of the largest
and amongst the fastest
growing consumer goods
companies in the world, P&G
touches and improves the
lives of about 4.4 billion
people around the world with
its portfolio of trusted, quality
brands.

4. PORTFOLIO OF P&G

5. P&G INFO AND FACTS
◦ P&G was a global leader in branded
consumer goods.
◦ Manages 2 dozen of 1$ billion brands
known worldwide.
◦ The first company to advertise directly to
consumers, invented soap operas.
◦ P&G was a seasoned marketer with strong
consumer research, a powerful innovation
network, an evolving marketing strategy,
strong marketing talent, and the world’s
largest financial commitment to advertising.

6. WANT BIG IMPACT?
Use big image.
OVER THE YEARS P&G HAS GROWN INTO
A:

7. P&G WAS FOUNDED BY JAMES GAMBLE AND WILLIAM
PROCTER
◦ P&G pursued international expansion as early as the
1930s, and from 1945 to 1980 it began to enter
markets in Latin America, Western Europe, and
Japan
◦ Expanded into new lines of business through
acquisitions,
◦ Entered new markets was via acquisition or joint
venture on a small scale, and through trial and error.

8. NOW…
• PROCTER AND GAMBLE TODAY IS ONE
THE MST SKILFUL MARKETERS OF
CONSUMER PACKAGED GOODS IN THE
WORLD AND HOLD ONE OF THE MOST
POWERFUL PORTFOLIOS OF TRUSTED
BRANDS.
• IT SUSTAINED MARKET LEADERSHIP ON
A NUMBER OF DIFFERENT CAPABILITIES
AND PHILOSOPHIES.

9. CASE ANAYSIS

10. OBJECTIVES OF CASE ANALYSIS
1.
To deduce the and
learn the many and
best marketing
practices used by
P&G
2.
To understand the
marketing strategies
◦ how to develop
marketing
innovation
◦ How to apply it
across different
categories.
◦ How strategies
changes with
culture and
geography.
3.
To analyse nad
suggest some
improvements and
understand some
risks in the future
developments.

11. 1.
Established the foundation for a professional R&D
division in the company.
SOME DEVELOPMENTS IN THE EXPANSION WERE:
TRIAL AND ERROR
METHODS FOR
NEW PRODUCTS
P&G took a scientific
approach and connected
R&D with the company’s
sales and marketing
P&G hoped the net result would be “bigger
innovations, faster speed to market, greater growth—
innovation vitality.

12. SOME DEVELOPMENTS IN THE EXPANSION WERE:
2.
Seven global business units (GBUs) based on
product categories replaced the company’s four
geographic business units. P&G felt the GBUs would
help with global product development and quick-to-
market strategies.

13. SOME DEVELOPMENTS IN THE EXPANSION WERE:
3.
Few roles which GBU’s focused on:
◦ business development team focused on
innovating in existing categories
◦ A venture team tasked with acquiring brands in
new areas and nurturing ideas created by the
business development team that did not relate
to an existing brand
◦ Market development organizations that would
perform intensive market research to ensure
global products’ success in local markets

14. SOME DEVELOPMENTS IN THE EXPANSION WERE:
4.
P&G’S NEW APPROACH “CONNECT AND
DEVELOP”
• P&G aims to partner with the world’s most
innovative minds.
• Connect and develop helps inventors and patent
holders to meet needs across P&G business.

15. RESULTS OF CONNECT AND DEVELOP
◦ More than 35% of P&G’s new products had
elements that originated from outside the
firm.
◦ 45% of P&G’s initiatives had key elements
discovered externally.
◦ P&G’s R&D productivity increased by
nearly 60%
◦ Innovation success doubled
◦ Drop in cost of innovation

16. Markeing Strategies
Cleaned colours safely
Contained bleach
P&G had pursued a multi-brand strategy, and it managed brands
across a category carefully, with each getting individual support and
satisfying a segment of the market. P&G’s detergent category
illustrated this:
Fresh scentPremium brand

17. Markeing Strategies
• Function
• Performance
• Price
Intensified focus was put into the design
aspect of the product along with the above
aspects of a finished product.

18. DESIGN
“THE FIRST MOMENT OF TRUTH”

19. ◦ Designed the
communication
experience .
◦ Designed the user
experience.
DESIGNED EVERY COMPONENT OF THEPRODUCT
The influx of design had a strong
impact on P&G’s product
development; design informed
the innovation process and even
changed the function of some
products.

20. The new emphasis shifted he company toward a more
consumer centric marketing approach.

21. SHIFTED FROM TRADITIONAL TO DIGITAL
MARKETING.BUT WHY??
To measure ROMI
(return on market
investment)

22. P&G shifted from TV, Print

23. Soap Operas,Radio and TV broadcasts

24. TO Digital and Direct Marketing

25. How Digital marketing helps?
The data colllected
along with information
about online usage and
grocery purchases, and
frequent surveys of
attitudes and lifestyle,
helped P&G understand
its marketing tactics
performance.

26. Social Cause Marketing
P&G’s Tide Loads of love team
providing relief services by
washing laundry for families
impacted by Texas floods

27. Leveraging secondary associations by
sponsorship

28. EMOTIONAL BRANDING

29. CELEBRITY
ENDORSEMENTS….

30. YOUTUBE CHANNEL….

31. NEW TECHNOLOGIES ALSO CONTINUED TO
PROVIDE WAYS TO ENGAGE AND MEASURE
CONSUMER INTRESTS HABITS AND SATISFACTION.

32. SOME ADVANCED TECHNOLOGICAL APPLICATIONS WERE
EYE TRACKING
NEUROMARKETING EEG
• Integrating these new technologies in an attempt to gain more
hard data on consumers dovetailed with P&G’s culture of
performance-driven products, as the firm leveraged new and
innovative ways to learn directly from consumers, while also
building the opportunity to create more direct, one-on-one
relationships with the target audiences.

33. MORE ON TV
P&G slowed its
digital promotions
and focused its
efforts primarily on
television and print
advertisements,
along with its product
websites.
LESS ON SOCIAL
MEDIA
Digital marketing
efforts were a large
part Of P&G. But, In
2010, only 5 percent
of P&G’s $3.2 billion
was spent on online
marketing.
SOME GAPS IN THE MARKETING STRATEGIES

34. Some improvement points might be:
• P&G should increase its presence online by collaboration with e
commerce websites.
• Should do more promotions on Facebook, twitter, and other
social media websites.
• Should do live promotions and should do more sponsorship.
• Should maintain a strong brand in which it is a market leader.
• Should the maintain the spirit and aim behind the company
which it is buying.
• Online quizzes and flash sales would be very helpful and
handy.

35. Some Risks might be:
• Competition from local products which may be cheaper.
• Limited growth for innovation may not satisfy consumer’s
expectations.
• Marketing a large number of products may lead to less effective
promotions.
• Brand dilution
• May lead to less identification of a brand due to many products
in many different categories.
• The failure of a brand extension may lead to harming the parent
brand.

37. DISCLAMER
Created by Sarthak Rahate,
VNIT Nagpur during a marketing
internship by Prof Sameer
Mathur, IIM Lucknow.
(see www.IIMInternship.com)
Sarthak Rahate
Prof. Sameer Mathur