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CASE STUDY
PROCTER AND GAMBLE:
MARKETING CAPABILITIES
CASE ANALYSIS BY :
NISHANT RAJ
IIT ROORKEE
UNDER THE GUIDANCE OF
PROF. SAMEER MATHUR
IIM LUCKNOW
P&G Marketing capabilities HBR case
PrOCTER AND GAMBLE
• Global leader in FMCG sector
• More than 2 dozen $1 billion brands
• First company to directly advertise to its consumers in 1880s
BRAND PORTFOLIO
Billion Dollar Brands
Organizational Control System
• Market Development
Organizations
• Global Business Services
• Corporate Finance
• Global Business Units
P&G Marketing capabilities HBR case
Situational Analysis(1)
SITUATIONAL ANALYSIS(2)
• Dominates FMCG sector through various sub-brands and a huge brand portfolio
• Strong focus on Consumer Research,innovation,marketing and advertisement
SITUATIONAL ANALYSIS(3)
• In 2010,P&G had a market capitalization of $186.63 billionwith net
income of $12.74 billionand sales of $12.74 billion
• P&G showed a global domination with more than 42% sales from
North America,21% from Western Europe and 15% from Asia
ORGANIZATIONAL STRUCTURE : LAG OR lEADS
P&G Marketing capabilities HBR case
HISTORY(2)
• Started its international expansion in 1930s
• 1945-1980 : Entered the markets of Latin America , Western Europe and Japan
• 1957:Charpin Paper Mill acquired and 1963 : Acquired Folgers Coffee
• 1980s : Extensive global expansion
HISTORY(3)
• 1991: P&G became US’s
top cosmetic company
with Noxell acquisition
• 2005 : Gillette’s
acquisition made P&G top
consumer company for
$57 billion
• Company stocks lagged
and senior managers left
at that time
P&G LOGO EVOLUTION
WHY STUDY THIS CASE ?
CASE OBJECTIVES :
STUDY OF USE
OF INTEGRATED
MARKETING
CHANNELS
CASE OBJECTIVES :
UNDERSTAND THE
MARKETING
STRATEGIES USED
BY P&G
CASE OBJECTIVES :
TO UNDERSTAND
THE SECRET SAUCE
TO MARKETING
SUCCESS:
INNOVATION
INNOVATION :THE SECRET SAUCE(1)
• Year 1887 marked the establishment of earliest marketing division
• Replaced the existing 4 geographical units with Global Business Units
• GBU :
A three team supported unit consisting of
1.Venture teams
2.Business Development Organization
3.Market Development Organization
• Company named the strategy : “Connect to Develop”
INNOVATION :THE SECRET SAUCE(2)
“50% new products in 90s developed in Labs and rest with non-P&G
scientists and engineers”
&
“Products like Swiffer Duster,Olay Regenerist,Crest Whitestrips etc
came into existence”
MARKETING AT P&G
MARKETING STRATEGY (1)
• Year 2000 : Lafleytook over as the new CEO of P&G
• Set up of a new product team…..and the focus shifted to
product design
THE NEW PRODUCT TEAM(1)
• Claudia Kotcha named as the VP for design innovation
• Jim Stangel appointed as the new CMO and shifted emphasis to consumer centric
marketing approach
THE NEW PRODUCT TEAM(2)
• Aim was to “design the purchasing experience” i.e. “the first moment of truth”
• P&G design board created on lines of Nike & Mattel
THE NEW PRODUCT TEAM(3)
• Focus laid on Return on MARKETING INVESTMENT(ROMI)-a technique to
evaluate the effectiveness of marketing strategies)
• Surveys designed, data collected and metrics developed to measure brand loyalty and
customer relationships
CONSUMER FOCUS
“P&G interacts with more than 5 million customers over 100 countries
and conducts more than 20,000 research studies investing more than
$500 million to execute these studies”
CONSUMER FOCUS
Key research outputs :
• Advocacy(word of mouth) was the most powerful marketing strategy as observed
under VocalPoint campaign
• Neuromarketing was the new research area identified
ADVERTISING
Media – neutral ideas used could be
translated across a range of media
In 2011,majority of the advertising was
still done through television
“A good brand equity is
that in which both the
consumers and the
organization feel
inspirational”
LEADERS OF OLYMPIC SPONSORSHIPS
SPONSORSHIPS
P&G has used sponsorships to market its product very
well. It has sponsored various award shows, games and
mega events across the globe
CELEB ENDORSEMENTS
CELEB ENDORSEMENTS
MARKETING DURING RECESSION
During 2009,the time of recession, P&G
maintained its budget for marketing . It resorted
to coupons and in-store promotional campaigns
to lure in consumers during recession
DIGITAL MARKETING AT P&G
Earliest activities limited to websites
of brand but it was only after launch
of pampers.comP&G was able
to provide an interactive platform….
Beinggirl.com was P&G’s
unique digital marketing
strategy to interact with
Girls
Mobile marketing became an integrated part
of P&G’s digital-marketing strategy. Crest
Whitening Plus marked an entry for P&G in
the mobile marketing place….
Because….
P&G won accolades for its TV series –
“My Black is beautiful” and this digital
marketing strategy grew its sales by 20%
in first half of 2010.
P&G’s OLD SPICE CAMPAIGN
P&G’s OLD SPICE CAMPAIGN
Campaign went viral on Youtube and adding as
many as 94,000 followers on twitter marking a
shift for P&G from mass marketer to one-on-one
digitized marketer
SIGNAL…Bringing powerful digital leaders together
SOCIAL MEDIA Campaigns
SOCIAL MEDIA CAMPAIGNS
Brand PHILANTHROPY
Brand Philanthropy helps in
creation of good image about the
brand as was the case in TIDE
whose sales got boosted after
Katrina campaign
ANALYSIS OF P&G’s ICONIC BRANDS
IVORY-MARKETING IN A RETRO STYLE
IVORY was the first directly marketed product to consumer by P&G. The soap has seen different types of marketing – from neo-
classical marketing to modern marketing.
TIDE
• TIDE was a breakthrough product and passed
several tests including the risk of P&G brand’s
cannibalization
• The risk of launching the product two year early
bore heavy returndsin terms of greater market
share.
PAMPERS – brand that created
the diaper market
P&G has managed to keep the costs of diapers low while it has launched “Luvs” diapers for its premium
customers…
CREST-The FIRST FLOURIDE
TOOTHPASTE
P&G worked with American Dental Association
Fluoride toothpastes got generic status in 80s and this made it
to slip out of the market
P&G responded to the threats by introducing Crest Whitestrips
ALWAYS
• Always was P&G’s first global brand….Always Infinity was another remarkable
example of P&G’s innovation
SALES
High potential for P&G in developing countries market for growth
SWOT ANALYSIS: STRENGHTS
• Strong focus on R&D
• Strong Brand Portfolio
• Strategic Acquisitions
• Consumer Focus
• Strong Marketing Team
WEAKNESSES
• Increasing instances of
product recalls
• Poor Website
• Environmental Issues
OPPORTUNITIES
• Growing Indian FMCG market
• Expansion especially in developing
markets
• Growing interest of people in green
products
THREATS
• Creation of generic product
might lower its value
• Change in younger
generation preferences
• Global economic conditions
• Intense competition in industry
•Case Basics
•Situational Analysis
•Marketing Channels
•Marketing Techniques
•SWOT Analysis
P&G Marketing capabilities HBR case

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P&G Marketing capabilities HBR case

  • 1. CASE STUDY PROCTER AND GAMBLE: MARKETING CAPABILITIES
  • 2. CASE ANALYSIS BY : NISHANT RAJ IIT ROORKEE UNDER THE GUIDANCE OF PROF. SAMEER MATHUR IIM LUCKNOW
  • 4. PrOCTER AND GAMBLE • Global leader in FMCG sector • More than 2 dozen $1 billion brands • First company to directly advertise to its consumers in 1880s
  • 7. Organizational Control System • Market Development Organizations • Global Business Services • Corporate Finance • Global Business Units
  • 10. SITUATIONAL ANALYSIS(2) • Dominates FMCG sector through various sub-brands and a huge brand portfolio • Strong focus on Consumer Research,innovation,marketing and advertisement
  • 11. SITUATIONAL ANALYSIS(3) • In 2010,P&G had a market capitalization of $186.63 billionwith net income of $12.74 billionand sales of $12.74 billion • P&G showed a global domination with more than 42% sales from North America,21% from Western Europe and 15% from Asia
  • 14. HISTORY(2) • Started its international expansion in 1930s • 1945-1980 : Entered the markets of Latin America , Western Europe and Japan • 1957:Charpin Paper Mill acquired and 1963 : Acquired Folgers Coffee • 1980s : Extensive global expansion
  • 15. HISTORY(3) • 1991: P&G became US’s top cosmetic company with Noxell acquisition • 2005 : Gillette’s acquisition made P&G top consumer company for $57 billion • Company stocks lagged and senior managers left at that time
  • 17. WHY STUDY THIS CASE ?
  • 18. CASE OBJECTIVES : STUDY OF USE OF INTEGRATED MARKETING CHANNELS
  • 19. CASE OBJECTIVES : UNDERSTAND THE MARKETING STRATEGIES USED BY P&G
  • 20. CASE OBJECTIVES : TO UNDERSTAND THE SECRET SAUCE TO MARKETING SUCCESS: INNOVATION
  • 21. INNOVATION :THE SECRET SAUCE(1) • Year 1887 marked the establishment of earliest marketing division • Replaced the existing 4 geographical units with Global Business Units • GBU : A three team supported unit consisting of 1.Venture teams 2.Business Development Organization 3.Market Development Organization • Company named the strategy : “Connect to Develop”
  • 22. INNOVATION :THE SECRET SAUCE(2) “50% new products in 90s developed in Labs and rest with non-P&G scientists and engineers” & “Products like Swiffer Duster,Olay Regenerist,Crest Whitestrips etc came into existence”
  • 24. MARKETING STRATEGY (1) • Year 2000 : Lafleytook over as the new CEO of P&G • Set up of a new product team…..and the focus shifted to product design
  • 25. THE NEW PRODUCT TEAM(1) • Claudia Kotcha named as the VP for design innovation • Jim Stangel appointed as the new CMO and shifted emphasis to consumer centric marketing approach
  • 26. THE NEW PRODUCT TEAM(2) • Aim was to “design the purchasing experience” i.e. “the first moment of truth” • P&G design board created on lines of Nike & Mattel
  • 27. THE NEW PRODUCT TEAM(3) • Focus laid on Return on MARKETING INVESTMENT(ROMI)-a technique to evaluate the effectiveness of marketing strategies) • Surveys designed, data collected and metrics developed to measure brand loyalty and customer relationships
  • 28. CONSUMER FOCUS “P&G interacts with more than 5 million customers over 100 countries and conducts more than 20,000 research studies investing more than $500 million to execute these studies”
  • 29. CONSUMER FOCUS Key research outputs : • Advocacy(word of mouth) was the most powerful marketing strategy as observed under VocalPoint campaign • Neuromarketing was the new research area identified
  • 30. ADVERTISING Media – neutral ideas used could be translated across a range of media In 2011,majority of the advertising was still done through television
  • 31. “A good brand equity is that in which both the consumers and the organization feel inspirational”
  • 32. LEADERS OF OLYMPIC SPONSORSHIPS
  • 33. SPONSORSHIPS P&G has used sponsorships to market its product very well. It has sponsored various award shows, games and mega events across the globe
  • 36. MARKETING DURING RECESSION During 2009,the time of recession, P&G maintained its budget for marketing . It resorted to coupons and in-store promotional campaigns to lure in consumers during recession
  • 37. DIGITAL MARKETING AT P&G Earliest activities limited to websites of brand but it was only after launch of pampers.comP&G was able to provide an interactive platform….
  • 38. Beinggirl.com was P&G’s unique digital marketing strategy to interact with Girls
  • 39. Mobile marketing became an integrated part of P&G’s digital-marketing strategy. Crest Whitening Plus marked an entry for P&G in the mobile marketing place….
  • 40. Because…. P&G won accolades for its TV series – “My Black is beautiful” and this digital marketing strategy grew its sales by 20% in first half of 2010.
  • 41. P&G’s OLD SPICE CAMPAIGN
  • 42. P&G’s OLD SPICE CAMPAIGN Campaign went viral on Youtube and adding as many as 94,000 followers on twitter marking a shift for P&G from mass marketer to one-on-one digitized marketer
  • 46. Brand PHILANTHROPY Brand Philanthropy helps in creation of good image about the brand as was the case in TIDE whose sales got boosted after Katrina campaign
  • 47. ANALYSIS OF P&G’s ICONIC BRANDS
  • 48. IVORY-MARKETING IN A RETRO STYLE IVORY was the first directly marketed product to consumer by P&G. The soap has seen different types of marketing – from neo- classical marketing to modern marketing.
  • 49. TIDE • TIDE was a breakthrough product and passed several tests including the risk of P&G brand’s cannibalization • The risk of launching the product two year early bore heavy returndsin terms of greater market share.
  • 50. PAMPERS – brand that created the diaper market P&G has managed to keep the costs of diapers low while it has launched “Luvs” diapers for its premium customers…
  • 51. CREST-The FIRST FLOURIDE TOOTHPASTE P&G worked with American Dental Association Fluoride toothpastes got generic status in 80s and this made it to slip out of the market P&G responded to the threats by introducing Crest Whitestrips
  • 52. ALWAYS • Always was P&G’s first global brand….Always Infinity was another remarkable example of P&G’s innovation
  • 53. SALES High potential for P&G in developing countries market for growth
  • 54. SWOT ANALYSIS: STRENGHTS • Strong focus on R&D • Strong Brand Portfolio • Strategic Acquisitions • Consumer Focus • Strong Marketing Team
  • 55. WEAKNESSES • Increasing instances of product recalls • Poor Website • Environmental Issues
  • 56. OPPORTUNITIES • Growing Indian FMCG market • Expansion especially in developing markets • Growing interest of people in green products
  • 57. THREATS • Creation of generic product might lower its value • Change in younger generation preferences • Global economic conditions • Intense competition in industry
  • 58. •Case Basics •Situational Analysis •Marketing Channels •Marketing Techniques •SWOT Analysis