Procter & Gamble: Marketing Capabilities

Harvard Business case

why study this case?

To study how to develop marketing strategies and plans in a consumer oriented approach

Objectives

• To study varieties of marketing strategies adopted• Evaluation of outcomes• Strategies for maintaining Multiple

Brands

Evolution

key influencers

• Durk Jager – C.E.O(1999-2000)• A.G. Lafley – C.E.O(2000-2010)• Bob McDonald – C.E.O(2010-present)

Durk Jager

Reorganisation

• Seven global units replaced company’s four geographic

business units.

• New teams were created.

New teams were:

1. Business development team.2. Venture team.3. Market development organisations.

Connect

& Develop

Result

Successful product introductions 1. Swiffer dusters2. Olay regenerist3. Crest whitestrips & spinbrush.

But STRUGGLED to control costs on innovation

A.G. Lafley

Concentrated more on design Designs helped consumers to

imagine function of a given product.

This lead to a consumer-centric marketing approach.

Recission

lafley continued the same budget on marketing.

The marketing campaigns shifted the budget from traditional marketing strategies like advertising to coupon marketing and in-store promotions to increase sales.

Result Increased consumer relationship & emotional connection between consumers and the brand.Surveys resulted that people felt better about a brand if it is from P&G.

Bob McDonald

2010 winter Olympics campaign

Again Concentrated more on design.

Believed in Eye tracking and Neuro marketing strategies.

Brought out performance driven products as firm leveraged new and innovative ideas directly from consumers.

Using crowd sourcing as a tool and alternative for market research and thereby increasing sales.

Motivation

How did P&G maintain multiple brands at same time?

Each brand got individual support.The main idea was “one brand one purpose”.Each brand caters only to a segment of market

Sales

Celebrity endorsements were the most important part in advertising the beauty products which had the major sales and profits in company’s revenue.

Digital marketing was used to give consumers more information about the products and to build consumer interactions.

Social media was helpful in maintaining interactive community programs.

Market research helped in developing the right products according to the consumer needs.

Conclusion

Excellent company’s

need excellent Product but excellent product

Needs?

Marketing is a worthy investment which is used to increase the motivation for buyers and to preserve the Brand name.

DISCLAIMERCreated by Appili Vishnusai,

SASTRAUniversity during a marketing internship by Prof. Sameer Mathur, IIM

Lucknow