PROCTOR & GAMBLE:MARKETING CAPABILITIES

A CASE STUDY

WHO ARE THEY

P&G, a global leader in branded consumer goods noted for its iconic category defining brands

which include two dozen 2 billion $ ones such as Bounty , Crest , Gillette and Pampers.

WHERE DO THEY STAND

Household Care 48%

Beauty & Grooming34%

Health & well being18%

North America42%

Western Europe21%

Asia15%

Europe & Middle East13%

Latin America9%

The charts below show P&G’s market share across its different segment of products and

also market share across continents.

A BRIEF HISTORYP&G WERE THE PIONEERS TO START

INTERNATIONAL EXPANSION AS EARLY AS IN THE 1930s AND FROM

1945 TO 1980 , IT HAD REACHED THE MARKETS OF LATIN AMERICA ,

WEST EUROPE AND JAPAN.CONSISTENT INNOVATIONS HELPED IT EXPAND TO NEW LINES

OF BUSINESS.

IN THE 1980s RAMPED UP ITS GLOBAL EXPANSION AND

DEVELOPED ITS FIRST GLOBAL BRANDS WHICH INCLUDES

ALWAYS/WHISPER, PRINGLES AND PANTENE.IT BECAME US’s

TOP COSMETIC COMPANY WITH SEVERAL OTHER ACQUISITIONS.

ORGANIZATIONAL STRUCTURE

P&G’s MISSION & VISION

IN 2010, P&G’s STATED CORPORATE MISSION WAS TO

BUILD ON ITS COMPANY PURPOSE TO IMPROVE THE LIVES

OF THE CUSTOMERS THROUGH CONTINUED INNOVATIONS TO

REACH OUT TO

“MORE CUSTOMERS , IN MORE PARTS OF THE WORLD, MORE COMPLETELY”

SO HOW TO

GO ABOUT THE CASE…

SITUATION

QUESTIONS

HYPOTHESIS

PROOFS &

ACTIONS

ALTERNATIVES

A FIVE-PHASE PROCESS FOR ANALYSIS

WE CAN DO A CRITICAL REVIEW OF THESE

FOLLOWINGPOINTS TO GET A BETTER UNDERSTANDING OF THE COMPANY AND HOW IT

WORKS.IT ALSO GIVES US AN OVERVIEW OF P&G’s

STRENGTH, WEAKNESS,OPPORTUNITIES

AND THREATS.

ANOTHER SIMPLE APPROACH CAN BE

ASKING A FEW QUESTIONS ON THE COMPANY’S RECENT STATUS AND THEN JUDGING WHAT IS HAPPENING AND

WHAT NEEDS TO BE DONE.

WHAT IS?

WHAT CAN BE?

SO WHAT?

WHY?

WHY NOT?

P&G’s CORE MARKETING INSIGHTS

THE FOLLOWING SLIDES ARE ABOUT TO SHOW THE TECHNIQUES P&G IMPLEMENTED FOR ITS SUCCESSFUL

RUN AT THE MARKETS. IT PROVIDES AN ENRICHING LOOK INTO THE COMPANY’S BUSINESS & MARKETING

STRATEGIES AND ANSWERSWHAT IT IS? AND WHY IS IT SO?

INNOVATING THROUGH RESEARCH & DEVELOPMENT

P&G WAS THE FIRST COMPANY WHO REPLACED TRIAL AND ERROR METHOD

PREVAILING AT THAT TIME AND TAKE UP A SCIENTIFIC APPROACH HENCE, CONNECTING

R&D WITH THE COMPANY’S SALES AND MARKETING.

SEVEN GLOBAL BUSINESS UNITS (GBUs) BASED ON PRODUCT CATEGORIES REPLACED

THE COMPANY’S FOUR GEOGRAPHIC BUSINESS UNITS.

THEY HOPED FOR“BIGGER INNOVATIONS,FASTER SPEED

TO MARKETS, GREATER GROWTH – INNOVATION VITALITY”

CONNECT-AND-DEVELOPP&G HAD A TOTAL OF ABOUT 1.5 MILLION RESEARCHERS, 7,500 WERE

P&G’s OWN AND OTHERS WERE FROM BEYOND

THE “CONNECT-AND-DEVELOP” PROGRAMME HELPED TO IDENTIFY PROVEN TECHNOLOGIES,PACKAGES AND PRODUCTS THAT IT COULD

IMPROVE,SCALE UP & MARKET ON ITS OWNOR THROUGH PARTNERSHIPS WHICH LED TO INTRODUCTION OF SOME SUCCESSFUL PRODUCTS

EFFECTIVE MARKET SEGMENTATIONP&G TOOK UP A MULTIBRAND STRATEGY AND IT MANAGED

BRANDS ACROSS A CATEGORY CAREFULLY WITH EACH GETIING INDIVIDUAL SUPPORT AND SATISFYING A PARTICULAR SEGMENT IN

THE MARKET.FOR EXAMPLE:

TIDE WAS THE PREMIUM BRAND.CHEER WAS DEDICATED TO CLEANING SENSITIVE COLOURS SAFELY.

GAIN HAD A FRESH SCENT.OXYDOL WAS USED FOR BLEACHING.

ADDED IMPORTANCE TO PRODUCT DESIGNING

P&G DID NOT USE DESIGN AS AN ANTIDOTE TO ITS FUNCTION DRIVEN PROCESS BUT RATHER AS A COMPLEMENT ,HELPING

CUSTOMERS RECOGNIZE, UNDERSTAND AND IN SOME CASES IMAGINE THE FUNCTIONS OF

THE PRODUCT.

“CONSUMERS ARE THE BOSS”A VERY POPULAR PHRASE USED BY P&G’s MARKETING TEAM AS THE COMPANY CLAIMS TO “CO-

CREATE” AND “CO-DESIGN” ALONG WITH ITS CUSTOMERS.INNOVATIVE APPROACHES OF

CONSUMER ENGAGEMENT LED TO NEWER MARKETING AND

PROMOTIONAL OPPORTUNITIES SUCH AS VocalPoint.

ADVERTISING THE PRODUCTSP&G WERE THE PIONEERS IN ADVERTISING THE PRODUCTS

DIRECTLY TO ITS CUSTOMERS WITHOUT CREATING A CHANNEL BETWEEN WHOLESELLERS,DISTRIBUTORS AND

RETAILERS.

IMPLEMENTATION OF STORIES THAT COULD BE EASILY TRANSLATED INTO LOCALLY RELEVANT MESSAGES HELPED

P&G GROW.

SPONSORSHIPS & ENDORSERSP&G’s BUSINESS GREW WITH SEVERAL SPONSORSHIP OPPORTUNITIES WHICH

INCLUDED THE OLYMPICS AS WELL AS THE NFL.

ACQUISITION OF SEVERAL BEAUTY BRANDS IN THE 1990s BROUGHT VARIOUS CELEBRITY

ENDORSERS WHICH INCLUDED NAMES LIKE ELLEN DeGENERES , TAYLOR SWIFT, NAOMI

WATTS & EVA MENDES.

STRATEGIES TO GROW AS A BRAND

A MORE FOCUSSED PRODUCT PORTFOLIO AND GETTING THINGS GROWING AGAIN

A MORE COMPELLING MARKETING STRATEGY

KEEPING IN MIND THE RECENT SHORTFALLS

GROWING OVERSEAS AND ADRESSING THE ISSUE OVER

GILLETTE.

RECENT MARKETING CHALLENGES : ASIA

THE NEXT FEW SLIDES PROVIDES A DEEPER LOOK INTO THE ASIAN MARKET SHOWING THE MARKETING CHALLENGES THEY ARE

FACING MAINLY IN CHINA & INDIA.

THEY ANSWER THE QUERIES WHY NOT? AND WHAT CAN BE DONE?

CHALLENGES IN CHINAP&G SAYS THAT IT IS INDEED VERY HOPEFUL ABOUT THE

VERY CHALLENGING CHINA MARKET.CHINA REMAINS A VERY TOUGH MARKET MAINLY DUE TO SLOWER CONSUMER

SPENDING,HEIGHTENED COMPETITION AND RAPID SHIFT TOWARDS ONLINE SHOPPING.

THERE ARE PLENTY OF SCOPES TO IMPROVE IN THIS TOUGH MARKET WHICH IS VERY DIFFICULT TO READ.

CHALLENGES IN INDIAIN INDIA, P&G ARE PRESENT IN 11 CATEGORIES

AND ARE MARKET LEADERS IN ONLY 6 OF THEM & DESPITE BEING LEADERS THEY ARE

NOT BEING ABLE TO COPE UP WITH HUL.

P&G ARE LOSING OUT TO HUL AND OTHER GIANT LOCAL COMPETITORS IN TERMS OF RELEVANT MARKETING STRATEGIES AND

BETTER DISTRIBUTION CHANNELS.

INDIA IS A MARKET WITH EXTREME POTENTIAL AND P&G’s SHARE IN THE COUNTRY’S

BUSINESS MUST IMPROVE.

SUMMARYP&G’s MISSION & VISIONA FIVE PHASE ANALYSIS

P&G’s MARKETING INSIGHTSSTRATEGIES TO GROW AS A BRAND

CHALLENGES OVERSEAS

DISCLAIMER

DISCLAIMERTHIS PRESENTATION WAS CREATED BY SUMANTRA GUHA UNDER DR.SAMEER

MATHUR,IIM LUCKNOW DURING A MARKETING INTERNSHIP