Procter & Gamble: Marketing Capabilities

Company Background

• A global leader brand in consumer goods, known for iconic-defining products.

• Manages 2 dozen $1 million brands known worldwide

• Pioneered marketing strategies that were considered standard industry

practice.

• The first company to advertise directly to consumers in 1880s, it invented soap

operas by sponsoring radio and TV programming that targeted women.

• Seasoned market with strong consumer research, a powerful innovation

network, evolving marketing strategy, etc. – the world’s largest financial

commitment to advertisement.

Brand Expansion

• Began to expand as early as 1930s and from 1945 to 1980 began to enter markets

in Latin America, Western Europe and Japan.

• Expanded into new lines of business through acquisitions.

• These acquisitions helped the company to enter different markets.

• Approach to enter new markets was through “acquisition or joint venture on a

small scale, and through trial and error, learn the formula for success before

making a major commitment.”

AcquisitionsCharmin

Paper Mills- Household

paper product market

Crush Int. Limited- Soft drink market

Folgers Coffee- Food Category

Disposable Diapers, Liquid fabric

softener

Noxell- Cosmetics

marketPharmaceut

icals

Iams- pet care

market

Gillette

SITUATION : P&G is the global leading brand in marketing and wants to maintain its top status while providing more to the consumers.QUESTIONS:1. How to enter the new markets and maintain the top status in the existing markets?2. How to know the consumers better and keep up to their expectations?3. Which audience to select for marketing and via what means?HYPOTHESIS: P&G has taken over the markets, firstly by innovations which were a result of constant research, secondly by, switching to a consumer- centric marketing, where they have looked upon the needs of the conusmers.PROOF AND ACTIONS:1. New acquisitions of the company to enter the markets.2. Innovation.3. Strong marketing system and huge investment in marketing and designing of

product.4. Advertisement and quick connections with consumers via- social media.

Innovation and R&D

1. First company to set-up an analytical lab. Shifted from trial-error method to

scientific approach.

2. Connected companies R&D with company’s sales and marketing.

3. Cut staff to deliver more innovations. Established Geographic Business Unit

(GBU).

4. Firm struggled in cost control but over came it through the constant

innovations.

Marketing at P&G1. Advertisement played the major role.2. Pursued a multi-brand strategy, and managed the brand across very carefully, considering each brand to be its only brand.

Marketing Strategy• Shifted the focus from function, performance and price to becoming top-product

design company.• Appointed Chief Marketing Officer, and president for design innovations.• Hosted design tasting.• Design informed the innovation process and also changed the function of some

products.

Marketing Strategy…

• Shifted company towards a more consumer-centric marketing.

• “Faux-Homes and Stores” where the buyers could physically experience the

“two moments of truth” everyday.

• Launched many websites which connected to people directly and helped

answer there questions.

• Separate websites focusing on different genders.

• In-store promotion- coupons, displays, special-offers and other promotional

materials.

Commitment to Consumer

• Huge investment in market research, covering 5 million consumers across

100 countries.

• Measured consumer habits and satisfaction through new technologies.

• Took the benefit of neuromarketing.

• Focused upon the psychological relationship of the consumers mind to the

satisfaction that a product can provide.

• Integrated these new technologies in an attempt to get more hard data on

consumers

dovetailed with P&G’s product culture.

Advertisement

• Started the advertisement through traditional methods, which is advertisement directly to the consumers.

• Sponsorship programs through radio dramas and television commercials.• Long-standing partnership with advertising agencies to build strong company

portfolio to customers.• Developed a media neutral idea.• Customized products according to the regions.

Sponsorship: Olympic games, winter games in Russia, summer games in Brazil.Celebrity endorsements: celebrity endorsements for beauty products, sports endorsements for products like Gillette.

Media Spending: Increased the ad spending by $1 billion, with 20% increase in media impressions.

Digital MarketingBrand Websites plus

websites for particular products-

pampers.com, BeingGirl.com

Mobile Marketing Ad-Campaign

Product lines targeting certain section – “My black is beautiful for

American African Women

Webseries, Bet.com.

Television commercials and Youtube

Sponsperships.Response Campaign

Social Media

Built Social Media Forays.

Facebook as a marketing tool.

ManoftheHouse.com for the men who looked up for helping at house and

cooking etc.

Interactive Community Promotions

• By sharing a message to society.

• “Loads of Hope”- Tide.

• “Be seen, not spotted”- lines on the T-shirts.

• “Restrooms”- which led to showrooms.

Building on its strengths in R&D, consumer research, and product performance, P&G continues to evolve and innovate as the world’s largest marketer.

Disclaimer:These slides were created by Manisha Arya (NLSIU, Bangalore), during an online marketing internship under the guidance of professor Sameer Mathur (IIM, Lucknow).