HOW DOES RAVAN MANAGE LIVING WITH SO MANY HEADS?

WELL, P&G HAS ATLEAST 10 BRANDS SERVING EACH HEAD.

MEET THE FOUNDERS – WILLIAM PROCTER AND JAMES GAMBLE

What does P&G do?

CATOGERY DEFINING PRODUCTS

STRONG CONSUMER RESEARCH

POWERFUL INNOVATIONS

EXCELLENT MARKETING STRATEGY

Innovation, R&D :

P&G’s Secret Marketing Sauce

• Global units replaced geographic units after the sales slowed down to 2.6% growth.• New product innovations from both P&G

labs and non P&G network partnerships.• Stocks dropped due to poor management

of costs.• Yet the reorganization continued. • They focused more on creating new

products than selling them.

Marketing at P&G

Marketing Strategy

• Shift to product-design oriented approach

• Designing purchasing experience• Two moments of truth – on the shelf and

after the consumer uses the product.• Customer centric marketing.• This approach led to better

functionalities of products, which the consumers prefer.

• Focus on ROMI by using different metrics and surveys.

• Customer centric marketing by instore promotions during recession.

• “Store back” approach to understand the customer needs.

• Developing trust among consumers for each individual brand and therefore P&G.

Commitment to the consumer

• Rigorous product and market testing.• Constant surveys, in house interviews,

focus group discussions as a part of market research

• Consumer engagement through programs like VocalPoint.

• Using different platforms to understand the purchasing behavior.

• Neuromarketing to appeal the emotional side of the consumer.

Advertising

• Ivory is the first product to which is sold directly to the customer

• P&G launched soap operas to feature their products.

Here the target audience is women and it worked pretty well• Global products in different markets are

advertised differently to appeal the cultural and regional aspects.

• In TV ads, the goal was shifted from communicating functionality to more emotion-driven advertising.

• P&G sponsored the U.S. Olympic team in 2010 which increased the visibility in emerging markets.

• P&G made celebrities a spokesperson for different brands.

• Rodger Federer was the spokesperson for Gilette and the ad videos had 2 million visitors.

• Celebrity endorsements always work. But, a company like P&G should be careful in choosing the celebrity.

Media Spending And Digital Advertising

• P&G never compromises on its marketing budget. It increased its budget by 1 billion dollars to broaden the audience

• Digital marketing through websites for each brand.

• Due to the dot com burst, it slowed down its online presence. But, it went back online with Prilosec.

• To reach its goal of reaching 1 billion new customer, it targeted specific audience and continued producing TV series.

• The “Old Spice Guy” was a big milestone that P&G reached to strengthen its one-to-one relationships.

Social Media

Interactive Community Promotions

• Marketing through TV shows has risks. It can garner negative views.

• P&G used Facebook as a marketing supplement.

• It created Manofthehouse.com to further enhance its online presence.

• After Katrina, it launched ‘Loads of hope’ campaign to help new visitors.

• Time square campaign to promote Charmin toilet paper to communicate directly with the consumers.

• This marks the transition of a mass marketer to one-to-on marketer.

What’s next?

• The firm established that it is the marketing giant.

• It can further enhance its online presence with new social media platforms.

• It can use listicles and blogs to promote its products.

• More quirky ad campaigns like the ‘Old Spice Guy’ will definitely increase number of consumers.

• With good R&D, great consumer research, P&G will be the world’s largest marketer.

DISCLAIMERCREATED BY VSV SRAVYA,BITS PILANI DURING A MARKETING INTERNSHIP BY PROF. SAMEER MATHUR,IIM LUCKNOW