Procter and gamble

PROCTER AND GAMBLE :
MARKETING CAPABILITIES
HARVARD | BUSINESS | SCHOOL

 Procter & Gamble Co. , also known as P&G ,
is an American multinational consumer goods
company headquartered in downtown
Cincinnati , Ohio , the U.S. , founded by
William Procter and James Gamble.
 It holds one of the most powerful portfolios
of trusted brands.

•CEO A.G. Lafley
• CEO Bob McDonald
• CEO Durk Jager
• CEO Jim Stengel
• Claudia Kotchka,
o Vice-president, Design
unit
• Marc Pritchard,
o Global Brand Building
Officer

WHAT IS THE
CURRENT
SCANERIO -
2010

2010 Sales
Household Cares
Beauty &
Grooming
Health & well
being

1. Know about the design , implementation
& interpretation of product development &
marketing strategies
2. Evaluate primary and unique
communication strategies and money
spending
3. Innovation , R&D and acquisition
OBJECTIVES

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

P&G MARKETING
SECRET SAUCE :
 R&D
 INNOVATION

• In 1887 – nephew of one of the P&G’s founders – who had
chemistry degree – set up analytical lab - establishing one of
the first corporate lab.
• Replaced the trial and error method and took a scientific
approach – connected with company’s sales and marketing.
• First time products included Crest toothpaste (1995), Head
and shoulders dandruff shampoo, Pampers disposable
diapers (1961).

• 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.
• P&G’s approach to entering new markets was via
“acquisition or joint venture on a small scale, and through
trial and error, learn the formula for success before making a
major commitment.”
• In 2010, P&G’s stated corporate mission was to build on its
company purpose to improve the lives of its customers
through continued innovation to reach “More Consumers, In
More Parts of the World, More Completely.”
• Connect and Develop : A step towards innovation ,
research and development of products

(2) Firm struggled to
control costs, and its
stocks slid from $118
to $52 over 18
months

• Historically, P&G had pursued a multibrand strategy, and it
managed brands across a category carefully, with each getting
individual support and satisfying a segment of the market.
• A new design unit was created for design innovation &
strategy. A culture of design was introduced in P&G which
complemented function-driven process.
• A consumer-centric marketing approach was followed
which allowed customization on the basis of needs of people.
• The firm leveraged its products through multibranding ,
focused on “Return On Marketing Investment” and shopper
marketing experience.

• 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.

• It was the first company to sell its products directly
to consumers through dramas , T.V commercials and
operas instead of including wholesalers and retailers
in the chain.
• To compete in less familiar markets , it developed
“Media neutral” idea that could be advertised in
different and relevant local languages.
• Lafley , Stengel and Kotchka aimed towards design
and emotion driven-advertising along with benefits
and function driven one.

•It sponsored the U.S. Olympic team in 2010 and
raised its visibility as a worldwide sponsor for 2012
winter games in Russia and 2016 summer games
summer games in Brazil.
• It engaged its consumers in fitness campaign
through NFL sponsorship whereas the major
campaign “Thank you Mom” still remained the best
in touching everyone’s heart.

• 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.
• P&G also pursued a host of promotion, sponsorship,
and endorsement relationships as well as other
nontraditional outlets, such as product placement in
television and film.

• During recession in 2009 , P&G shifted to coupons
and in-store promotional activities to maintain its
media presence while shifting ad costs.
• In 2010, P&G increased ad spending by $1 billion,
with a 20% increase in media impressions; higher
revenues led to an increase in dollars spent.
McDonald, who became CEO in 2010, stated that
P&G would maintain the same level of spending,
while shifting dollars to digital advertising and
other new media to broaden the audience.

• Digital media enabled niche experimentation targeted to specific
customers, including online serials , video games, and YouTube
channels for specific products.
• P&G launched its first mobile marketing ad campaign in 2006 . The
campaign also released TV commercials and print advertisements, and
had an online presence.
• 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.
• 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.

• 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.
• P&G used Facebook as a marketing supplement, not a
replacement. It identified 2010 as the year to acquire
Facebook friends, but the years beyond that were for figuring
out how to use them.
• 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 .
• Social media was a way to speak to its audience virtually.

INTERACTIVE
COMMUNITY
PROMOTION

• 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.

Digital marketing with campaigns, Emotional, design and
function driven marketing, R&D, consumer research and
product performance.

DISCLAIMER
CREATED BY SWAROOP CHANDWASKAR, NIT
RAIPUR DURING MARKETING INTERNSHIP UNDER
PROFESSOR SAMEER MATHUR, IIM LUCKNOW

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