Upload
sumantra-guha
View
58
Download
2
Embed Size (px)
Citation preview
PROCTOR & GAMBLE:MARKETING CAPABILITIES
A CASE STUDY
WHO ARE THEY
P&G, a global leader in branded consumer goods noted for its iconic category defining brands
which include two dozen 2 billion $ ones such as Bounty , Crest , Gillette and Pampers.
WHERE DO THEY STAND
Household Care 48%
Beauty & Grooming34%
Health & well being18%
North America42%
Western Europe21%
Asia15%
Europe & Middle East13%
Latin America9%
The charts below show P&G’s market share across its different segment of products and
also market share across continents.
A BRIEF HISTORYP&G WERE THE PIONEERS TO START
INTERNATIONAL EXPANSION AS EARLY AS IN THE 1930s AND FROM
1945 TO 1980 , IT HAD REACHED THE MARKETS OF LATIN AMERICA ,
WEST EUROPE AND JAPAN.CONSISTENT INNOVATIONS HELPED IT EXPAND TO NEW LINES
OF BUSINESS.
IN THE 1980s RAMPED UP ITS GLOBAL EXPANSION AND
DEVELOPED ITS FIRST GLOBAL BRANDS WHICH INCLUDES
ALWAYS/WHISPER, PRINGLES AND PANTENE.IT BECAME US’s
TOP COSMETIC COMPANY WITH SEVERAL OTHER ACQUISITIONS.
ORGANIZATIONAL STRUCTURE
P&G’s MISSION & VISION
IN 2010, P&G’s STATED CORPORATE MISSION WAS TO
BUILD ON ITS COMPANY PURPOSE TO IMPROVE THE LIVES
OF THE CUSTOMERS THROUGH CONTINUED INNOVATIONS TO
REACH OUT TO
“MORE CUSTOMERS , IN MORE PARTS OF THE WORLD, MORE COMPLETELY”
SO HOW TO
GO ABOUT THE CASE…
SITUATION
QUESTIONS
HYPOTHESIS
PROOFS &
ACTIONS
ALTERNATIVES
A FIVE-PHASE PROCESS FOR ANALYSIS
WE CAN DO A CRITICAL REVIEW OF THESE
FOLLOWINGPOINTS TO GET A BETTER UNDERSTANDING OF THE COMPANY AND HOW IT
WORKS.IT ALSO GIVES US AN OVERVIEW OF P&G’s
STRENGTH, WEAKNESS,OPPORTUNITIES
AND THREATS.
ANOTHER SIMPLE APPROACH CAN BE
ASKING A FEW QUESTIONS ON THE COMPANY’S RECENT STATUS AND THEN JUDGING WHAT IS HAPPENING AND
WHAT NEEDS TO BE DONE.
WHAT IS?
WHAT CAN BE?
SO WHAT?
WHY?
WHY NOT?
P&G’s CORE MARKETING INSIGHTS
THE FOLLOWING SLIDES ARE ABOUT TO SHOW THE TECHNIQUES P&G IMPLEMENTED FOR ITS SUCCESSFUL
RUN AT THE MARKETS. IT PROVIDES AN ENRICHING LOOK INTO THE COMPANY’S BUSINESS & MARKETING
STRATEGIES AND ANSWERSWHAT IT IS? AND WHY IS IT SO?
INNOVATING THROUGH RESEARCH & DEVELOPMENT
P&G WAS THE FIRST COMPANY WHO REPLACED TRIAL AND ERROR METHOD
PREVAILING AT THAT TIME AND TAKE UP A SCIENTIFIC APPROACH HENCE, CONNECTING
R&D WITH THE COMPANY’S SALES AND MARKETING.
SEVEN GLOBAL BUSINESS UNITS (GBUs) BASED ON PRODUCT CATEGORIES REPLACED
THE COMPANY’S FOUR GEOGRAPHIC BUSINESS UNITS.
THEY HOPED FOR“BIGGER INNOVATIONS,FASTER SPEED
TO MARKETS, GREATER GROWTH – INNOVATION VITALITY”
CONNECT-AND-DEVELOPP&G HAD A TOTAL OF ABOUT 1.5 MILLION RESEARCHERS, 7,500 WERE
P&G’s OWN AND OTHERS WERE FROM BEYOND
THE “CONNECT-AND-DEVELOP” PROGRAMME HELPED TO IDENTIFY PROVEN TECHNOLOGIES,PACKAGES AND PRODUCTS THAT IT COULD
IMPROVE,SCALE UP & MARKET ON ITS OWNOR THROUGH PARTNERSHIPS WHICH LED TO INTRODUCTION OF SOME SUCCESSFUL PRODUCTS
EFFECTIVE MARKET SEGMENTATIONP&G TOOK UP A MULTIBRAND STRATEGY AND IT MANAGED
BRANDS ACROSS A CATEGORY CAREFULLY WITH EACH GETIING INDIVIDUAL SUPPORT AND SATISFYING A PARTICULAR SEGMENT IN
THE MARKET.FOR EXAMPLE:
TIDE WAS THE PREMIUM BRAND.CHEER WAS DEDICATED TO CLEANING SENSITIVE COLOURS SAFELY.
GAIN HAD A FRESH SCENT.OXYDOL WAS USED FOR BLEACHING.
ADDED IMPORTANCE TO PRODUCT DESIGNING
P&G DID NOT USE DESIGN AS AN ANTIDOTE TO ITS FUNCTION DRIVEN PROCESS BUT RATHER AS A COMPLEMENT ,HELPING
CUSTOMERS RECOGNIZE, UNDERSTAND AND IN SOME CASES IMAGINE THE FUNCTIONS OF
THE PRODUCT.
“CONSUMERS ARE THE BOSS”A VERY POPULAR PHRASE USED BY P&G’s MARKETING TEAM AS THE COMPANY CLAIMS TO “CO-
CREATE” AND “CO-DESIGN” ALONG WITH ITS CUSTOMERS.INNOVATIVE APPROACHES OF
CONSUMER ENGAGEMENT LED TO NEWER MARKETING AND
PROMOTIONAL OPPORTUNITIES SUCH AS VocalPoint.
ADVERTISING THE PRODUCTSP&G WERE THE PIONEERS IN ADVERTISING THE PRODUCTS
DIRECTLY TO ITS CUSTOMERS WITHOUT CREATING A CHANNEL BETWEEN WHOLESELLERS,DISTRIBUTORS AND
RETAILERS.
IMPLEMENTATION OF STORIES THAT COULD BE EASILY TRANSLATED INTO LOCALLY RELEVANT MESSAGES HELPED
P&G GROW.
SPONSORSHIPS & ENDORSERSP&G’s BUSINESS GREW WITH SEVERAL SPONSORSHIP OPPORTUNITIES WHICH
INCLUDED THE OLYMPICS AS WELL AS THE NFL.
ACQUISITION OF SEVERAL BEAUTY BRANDS IN THE 1990s BROUGHT VARIOUS CELEBRITY
ENDORSERS WHICH INCLUDED NAMES LIKE ELLEN DeGENERES , TAYLOR SWIFT, NAOMI
WATTS & EVA MENDES.
STRATEGIES TO GROW AS A BRAND
A MORE FOCUSSED PRODUCT PORTFOLIO AND GETTING THINGS GROWING AGAIN
A MORE COMPELLING MARKETING STRATEGY
KEEPING IN MIND THE RECENT SHORTFALLS
GROWING OVERSEAS AND ADRESSING THE ISSUE OVER
GILLETTE.
RECENT MARKETING CHALLENGES : ASIA
THE NEXT FEW SLIDES PROVIDES A DEEPER LOOK INTO THE ASIAN MARKET SHOWING THE MARKETING CHALLENGES THEY ARE
FACING MAINLY IN CHINA & INDIA.
THEY ANSWER THE QUERIES WHY NOT? AND WHAT CAN BE DONE?
CHALLENGES IN CHINAP&G SAYS THAT IT IS INDEED VERY HOPEFUL ABOUT THE
VERY CHALLENGING CHINA MARKET.CHINA REMAINS A VERY TOUGH MARKET MAINLY DUE TO SLOWER CONSUMER
SPENDING,HEIGHTENED COMPETITION AND RAPID SHIFT TOWARDS ONLINE SHOPPING.
THERE ARE PLENTY OF SCOPES TO IMPROVE IN THIS TOUGH MARKET WHICH IS VERY DIFFICULT TO READ.
CHALLENGES IN INDIAIN INDIA, P&G ARE PRESENT IN 11 CATEGORIES
AND ARE MARKET LEADERS IN ONLY 6 OF THEM & DESPITE BEING LEADERS THEY ARE
NOT BEING ABLE TO COPE UP WITH HUL.
P&G ARE LOSING OUT TO HUL AND OTHER GIANT LOCAL COMPETITORS IN TERMS OF RELEVANT MARKETING STRATEGIES AND
BETTER DISTRIBUTION CHANNELS.
INDIA IS A MARKET WITH EXTREME POTENTIAL AND P&G’s SHARE IN THE COUNTRY’S
BUSINESS MUST IMPROVE.
SUMMARYP&G’s MISSION & VISIONA FIVE PHASE ANALYSIS
P&G’s MARKETING INSIGHTSSTRATEGIES TO GROW AS A BRAND
CHALLENGES OVERSEAS
DISCLAIMER
DISCLAIMERTHIS PRESENTATION WAS CREATED BY SUMANTRA GUHA UNDER DR.SAMEER
MATHUR,IIM LUCKNOW DURING A MARKETING INTERNSHIP