p&g marketing capabilities, hbr case study,anjali verma

P&GTouching Lives,Improving Life

WHAT IS P&G?

American multinational consumer goods company

Global leader in branded consumer goods,Known for iconic category defining products

More than 50 brands in 6 business segments

Founded by William Procter & James Gamble in 1837

WHAT IS P&G’S PURPOSE?

Improve lives of its customers through continued innovationTo reach

MORE CONSUMERS, IN MORE PARTS OF THE WORLD, MORE COMPLETELY

MISSION

BRANDS UNDER VARIOUS SEGMENTS

WHERE DOES P&G STAND?

BILLION DOLLAR BRANDS

HALF-BILLION DOLLAR BRANDS

ACTIONELLALWAYSARIELBOUNTYBRAUNCHARMINCRESTDAWNDOWNYDURACELLFEBREZEGAINGILLETTEHEAD&SHOULDERSIAMSKOLESTONOLAYORAL-BPAMPERS

ACEASACOL

BOLDBOSS FRAGRANCE

CASCADECOVERGIRL BLAST

DASHDOLCE&GABBANA FRAGRANCE

EUKANUBAGILLETTE VENUS

HERBAL ESSENCENYQUIL

PEARLPRILOSEC

REJOICESAFEGUARD

SK-IISWIFFER DUSTERS

TAMPAX

34%

14%4%30%

18%

% OF NET SALES

Beauty&Grooming Health Care Snacks&Pet Care

Fabric&Home Care Baby&Family Care

42%

21%

15%

13% 9%

% OF NET SALES

North AmericaWestern EuropeAsiaCentral&Eastern Europe,Middle East,AfricaLatin America

SEGMENTWISE DISTRIBUTION

REGIONWISE DISTRIBUTION

OBJECTIVES OF THE CASE STUDY

EXPLORE1. P&G’s powerful innovation network , strong consumer

research & evolving market strategy2.Expansion into new lines of business3.P&G’s transition from early marketing campaigns to recent

experiments with digital media

THROUGH AN OVERVIEW OF P&G’S ISSUES OF FOCUS

ISSUES OF FOCUSGrow core brands and categories with an unrelenting focus on innovation

Build business with unserved & underserved consumers

Develop faster growing, higher margin businesses with global leadership potential

1. GROWING CORE BRANDS THROUGH INNOVATION & R&D

(i) 7 Global Business Units(GBUs) based on product categories replaced company’s 4 geographic business units

(ii) 3 New teams supported GBUs

• Innovate in existing categories

BUSINESS DEVELOPMENT TEAM

• Acquire brands in new areas

• Nurture ideas created by business development team, not relating to existing brands

VENTURE TEAM

• Intensive market research to ensure global products’ success in local markets

MARKET DEVELOPMENT ORGANISATION

(iii) CONNECT AND DEVELOP

INNOVATION50% P&G’s Network of labs

50% Partnership & connections with non-P&G scientists and engineers

“Best ideas, wherever they

come from should rise to the surface”

Identification of proven technologies, packages, & products that could be improved, scaled up, and marketed on its own or through partnerships

•Build and maintain external connections with university & industry researchers & supplier networks

Network of 70 technology entrepreneurs

2. REACHING THE UNSERVED & UNDERSERVED CONSUMERS

CONSUMER CENTRIC MARKETING APPROACH

Create more DIRECT, ONE-TO-ONE relationships with target audiences

Deeper understanding of

WHO THE PRODUCT IS FOR?

WHAT IS DIFFERENT ABOUT THAT CONSUMER?

HOW THAT CONSUMER EXPECTS TO USE THE PRODUCT?Interaction with

more than 5 million

consumers in 100 countries

COMMITMENT TO CONSUMERS

Consumer Research Methods

QUALITATIVE

• Focus group discussions

• Consumer interviews at home

• In-context visits

• In-store interviews

QUANTITATIVE

• Large-scale studies of habits & practices of consumers

• Blind tests

• Concept & Use tests

NEUROMARKETING- Psychological surveys to measure mood & ECG technology to measure electrical activity in the brain as subjects were exposed to commercials

3. ENSURING GLOBAL PRESENCE

MULTIBRAND STRATEGY

Manage brands across a category with each getting individual support

& satisfying a segment of the market

EXAMPLE- P&G’S Detergent category

TIDE-Premium brand

CHEER- “Cleaned colours safely”

GAIN- “Had fresh scent”

OXYDOL- “Contained Bleach”

LEVERAGING P&G BRAND TO DRIVE SALES TO ITS SUB-BRANDS

USE OF DESIGN AS A COMPLEMENT TO P&G’S FUNCTION DRIVEN PROCESS

Creation of a new design unit with Claudia Kotchka as vice

president for design innovation

Intensified focus on design along with long-standing focus on

product functionality and price.Bring design to every step of product development

Help consumers RECOGNISE, UNDERSTAND & IMAGINE functions of a product

ADVERTISINGDeveloping ROBUST BRAND IDENTITY for its portfolio of consumer goods through long standing partnerships with advertising agencies

Developing a “ media neutral” idea that could be translated across a range of media

Focused on product superiority & functional benefits

Advertising campaigns customised by region

SPONSORSHIPSNational Football League

US Olympic team sponsor for 2012 games, raising its visibility in

emerging markets

Sponsored Sebastian Vettel, the “youngest ever” Formula one

champion

CELEBRITY ENDORSEMENTS

DIGITAL MEDIALaunch of

I. PAMPERS.COM- Contained product information.Provided information for new &expectant mothers.Served as an interactive forum.

ll. BEINGGIRL.COM- Information & expert advice on issues such as menstruation,eating disorders, acne & dating

lll. MANOFTHEHOUSE.COM- “SPEAK TO THE WHOLE MAN”Featured household advice for men .

TARGETED AFRICAN

AMERICAN WOMEN

Introduced 2 web series :

BUPPIESA scripted drama that integrated COVERGIRL’S Queen collection

MY BLACK IS BEAUTIFULA TV series showcasing the collection of P&G products in a makeover setting

WHAT CAN P&G BE?

MOVING FORWARD

Evolve marketing capabilities while pushing toward reaching 5 billion consumers served worldwide.

Build on its strengths in R&D , consumer research, and product performance while continuing to innovate & evolve as the world’s largest marketer

BRIEF ANALYSIS

Expansion through joint venture and acquisitionssuch as Charmin Paper Mill, Gillette, Folger’s Coffee & pet foods manufacture Iams, opened up household paper product market, men’s grooming, food & pet care markets respectively for P&G.

TOP CONSUMER GOODS COMPANY

EVOLVING MARKETING STRATEGY

Shifted from exclusive focus on function, performance & price to design, making the marketing approach more consumer centric. Shifted from sole focus on product superiority & functional benefits to a more emotion-driven advertising, connecting better with consumers

INNOVATION AND R&D

Increase in innovation productivity by 60%, drop in cost of innovation and doubling innovation success due to “CONNECT AND DEVELOP” through adaption of new skills. Collaboration with scientists & engineers across the globe and combatting internal focus resulted in successful product innovations such as Swiffer dusters, Olay regenerist, Crest whitestrips.

SUMMARY

THANK YOU

THIS PRESENTATION WAS CREATED BY ANJALI VERMA, RAMJAS COLLEGE, UNIVERSITY OF DELHI, DURING A MARKETING INTERNSHIP BY PROFESSOR SAMEER MATHUR, IIM LUCKNOW