case study : procter and gamble (p&g) marketing capabilities
TRANSCRIPT
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PROCTER & GAMBLE: Marketing capabilities
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WHAT IS1 ??
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P&G is one of the largest and amongst the fastest growing consumer goods companies in the world, P&G touches and improves the lives of about 4.4 billion people around the world with its portfolio of trusted, quality brands.
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PORTFOLIO OF P&G
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P&G INFO AND FACTS◦P&G was a global leader in branded consumer goods.
◦Manages 2 dozen of 1$ billion brands known worldwide.
◦The first company to advertise directly to consumers, invented soap operas.
◦P&G was a seasoned marketer with strong consumer research, a powerful innovation network, an evolving marketing strategy, strong marketing talent, and the world’s largest financial commitment to advertising.
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WANT BIG IMPACT?Use big image.
OVER THE YEARS P&G HAS GROWN INTO A:
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P&G WAS FOUNDED BY JAMES GAMBLE AND WILLIAM PROCTER
◦ P&G pursued international expansion as early as the 1930s, and from 1945 to 1980 it began to enter markets in Latin America, Western Europe, and Japan
◦ Expanded into new lines of business through acquisitions,
◦ Entered new markets was via acquisition or joint venture on a small scale, and through trial and error.
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NOW…
• PROCTER AND GAMBLE TODAY IS ONE THE MST SKILFUL MARKETERS OF CONSUMER PACKAGED GOODS IN THE WORLD AND HOLD ONE OF THE MOST POWERFUL PORTFOLIOS OF TRUSTED BRANDS.
• IT SUSTAINED MARKET LEADERSHIP ON A NUMBER OF DIFFERENT CAPABILITIES AND PHILOSOPHIES.
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CASE ANAYSIS
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OBJECTIVES OF CASE ANALYSIS
1.To deduce the and learn the many and best marketing practices used by P&G
2.To understand the marketing strategies◦ how to
develop marketing innovation
◦ How to apply it across different categories.
◦ How strategies changes with culture and geography.
3.To analyse nad suggest some improvements and understand some risks in the future developments.
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1.Established the foundation for a professional R&D division in the company.
SOME DEVELOPMENTS IN THE EXPANSION WERE:
TRIAL AND ERROR METHODS FOR NEW PRODUCTS
P&G took a scientific approach and connected R&D with the company’s sales and marketing
P&G hoped the net result would be “bigger innovations, faster speed to market, greater growth—innovation vitality.
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SOME DEVELOPMENTS IN THE EXPANSION WERE:
2.Seven global business units (GBUs) based on product categories replaced the company’s four geographic business units. P&G felt the GBUs would help with global product development and quick-to-market strategies.
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SOME DEVELOPMENTS IN THE EXPANSION WERE:
3.Few roles which GBU’s focused on:◦ business development team focused on
innovating in existing categories◦ A venture team tasked with acquiring
brands in new areas and nurturing ideas created by the business development team that did not relate to an existing brand
◦ Market development organizations that would perform intensive market research to ensure global products’ success in local markets
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SOME DEVELOPMENTS IN THE EXPANSION WERE:
4.P&G’S NEW APPROACH “CONNECT AND DEVELOP”
• P&G aims to partner with the world’s most innovative minds.
• Connect and develop helps inventors and patent holders to meet needs across P&G business.
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RESULTS OF CONNECT AND DEVELOP◦More than 35% of P&G’s new products had elements that originated from outside the firm.
◦45% of P&G’s initiatives had key elements discovered externally.
◦P&G’s R&D productivity increased by nearly 60%
◦Innovation success doubled◦Drop in cost of innovation
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Markeing Strategies
Cleaned colours safely
Contained bleach
P&G had pursued a multi-brand strategy, and it managed brands across a category carefully, with each getting individual support and satisfying a segment of the market. P&G’s detergent category illustrated this:
Fresh scent Premium brand
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Markeing Strategies • Function • Performance • PriceIntensified focus was put into the design aspect of the product along with the above aspects of a finished product.
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DESIGN
“THE FIRST MOMENT OF TRUTH”
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◦ Designed the communication experience .
◦ Designed the user experience.
DESIGNED EVERY COMPONENT OF THEPRODUCT
The influx of design had a strong impact on P&G’s product development; design informed the innovation process and even changed the function of some products.
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The new emphasis shifted he company toward a more consumer centric marketing approach.
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SHIFTED FROM TRADITIONAL TO DIGITAL MARKETING.BUT WHY??
To measure ROMI (return on market investment)
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P&G shifted from TV, Print
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Soap Operas,Radio and TV broadcasts
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TO Digital and Direct Marketing
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How Digital marketing helps?The data colllected along with information about online usage and grocery purchases, and frequent surveys of attitudes and lifestyle, helped P&G understand its marketing tactics performance.
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Social Cause Marketing
P&G’s Tide Loads of love team providing relief services by washing laundry for families impacted by Texas floods
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Leveraging secondary associations by sponsorship
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EMOTIONAL BRANDING
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CELEBRITY ENDORSEMENTS….
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YOUTUBE CHANNEL….
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NEW TECHNOLOGIES ALSO CONTINUED TO PROVIDE WAYS TO ENGAGE AND MEASURE CONSUMER INTRESTS HABITS AND SATISFACTION.
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SOME ADVANCED TECHNOLOGICAL APPLICATIONS WERE
EYE TRACKING
NEUROMARKETING EEG
• Integrating these new technologies in an attempt to gain more hard data on consumers dovetailed with P&G’s culture of performance-driven products, as the firm leveraged new and innovative ways to learn directly from consumers, while also building the opportunity to create more direct, one-on-one relationships with the target audiences.
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MORE ON TV P&G slowed its digital promotions and focused its efforts primarily on television and print advertisements, along with its product websites.
LESS ON SOCIAL MEDIADigital marketing efforts were a large part Of P&G. But, In 2010, only 5 percent of P&G’s $3.2 billion was spent on online marketing.
SOME GAPS IN THE MARKETING STRATEGIES
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Some improvement points might be:
• P&G should increase its presence online by collaboration with e commerce websites.
• Should do more promotions on Facebook, twitter, and other social media websites.
• Should do live promotions and should do more sponsorship.
• Should maintain a strong brand in which it is a market leader.
• Should the maintain the spirit and aim behind the company which it is buying.
• Online quizzes and flash sales would be very helpful and handy.
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Some Risks might be:
• Competition from local products which may be cheaper.• Limited growth for innovation may not satisfy
consumer’s expectations.• Marketing a large number of products may lead to less
effective promotions.• Brand dilution• May lead to less identification of a brand due to many
products in many different categories.• The failure of a brand extension may lead to harming
the parent brand.
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DISCLAMER
Created by Sarthak Rahate, VNIT Nagpur during a marketing internship by Prof Sameer Mathur, IIM Lucknow.(see www.IIMInternship.com)
Sarthak Rahate
Prof. Sameer Mathur