Case Analysis on P&G and its marketing capabilities....

1. CASE STUDY
PROCTER AND GAMBLE:
MARKETING CAPABILITIES

2. CASE ANALYSIS BY :
NISHANT RAJ
IIT ROORKEE
UNDER THE GUIDANCE OF
PROF. SAMEER MATHUR
IIM LUCKNOW

4. PrOCTER AND GAMBLE
• Global leader in FMCG sector
• More than 2 dozen $1 billion brands
• First company to directly advertise to its consumers in 1880s

5. BRAND PORTFOLIO

6. Billion Dollar Brands

7. Organizational Control System
• Market Development
Organizations
• Global Business Services
• Corporate Finance
• Global Business Units

9. Situational Analysis(1)

10. SITUATIONAL ANALYSIS(2)
• Dominates FMCG sector through various sub-brands and a huge brand portfolio
• Strong focus on Consumer Research,innovation,marketing and advertisement

11. SITUATIONAL ANALYSIS(3)
• In 2010,P&G had a market capitalization of $186.63 billionwith net
income of $12.74 billionand sales of $12.74 billion
• P&G showed a global domination with more than 42% sales from
North America,21% from Western Europe and 15% from Asia

12. ORGANIZATIONAL STRUCTURE : LAG OR lEADS

14. HISTORY(2)
• Started its international expansion in 1930s
• 1945-1980 : Entered the markets of Latin America , Western Europe and Japan
• 1957:Charpin Paper Mill acquired and 1963 : Acquired Folgers Coffee
• 1980s : Extensive global expansion

15. HISTORY(3)
• 1991: P&G became US’s
top cosmetic company
with Noxell acquisition
• 2005 : Gillette’s
acquisition made P&G top
consumer company for
$57 billion
• Company stocks lagged
and senior managers left
at that time

16. P&G LOGO EVOLUTION

17. WHY STUDY THIS CASE ?

18. CASE OBJECTIVES :
STUDY OF USE
OF INTEGRATED
MARKETING
CHANNELS

19. CASE OBJECTIVES :
UNDERSTAND THE
MARKETING
STRATEGIES USED
BY P&G

20. CASE OBJECTIVES :
TO UNDERSTAND
THE SECRET SAUCE
TO MARKETING
SUCCESS:
INNOVATION

21. INNOVATION :THE SECRET SAUCE(1)
• Year 1887 marked the establishment of earliest marketing division
• Replaced the existing 4 geographical units with Global Business Units
• GBU :
A three team supported unit consisting of
1.Venture teams
2.Business Development Organization
3.Market Development Organization
• Company named the strategy : “Connect to Develop”

22. INNOVATION :THE SECRET SAUCE(2)
“50% new products in 90s developed in Labs and rest with non-P&G
scientists and engineers”
&
“Products like Swiffer Duster,Olay Regenerist,Crest Whitestrips etc
came into existence”

23. MARKETING AT P&G

24. MARKETING STRATEGY (1)
• Year 2000 : Lafleytook over as the new CEO of P&G
• Set up of a new product team…..and the focus shifted to
product design

25. THE NEW PRODUCT TEAM(1)
• Claudia Kotcha named as the VP for design innovation
• Jim Stangel appointed as the new CMO and shifted emphasis to consumer centric
marketing approach

26. THE NEW PRODUCT TEAM(2)
• Aim was to “design the purchasing experience” i.e. “the first moment of truth”
• P&G design board created on lines of Nike & Mattel

27. THE NEW PRODUCT TEAM(3)
• Focus laid on Return on MARKETING INVESTMENT(ROMI)-a technique to
evaluate the effectiveness of marketing strategies)
• Surveys designed, data collected and metrics developed to measure brand loyalty and
customer relationships

28. CONSUMER FOCUS
“P&G interacts with more than 5 million customers over 100 countries
and conducts more than 20,000 research studies investing more than
$500 million to execute these studies”

29. CONSUMER FOCUS
Key research outputs :
• Advocacy(word of mouth) was the most powerful marketing strategy as observed
under VocalPoint campaign
• Neuromarketing was the new research area identified

30. ADVERTISING
Media – neutral ideas used could be
translated across a range of media
In 2011,majority of the advertising was
still done through television

31. “A good brand equity is
that in which both the
consumers and the
organization feel
inspirational”

32. LEADERS OF OLYMPIC SPONSORSHIPS

33. SPONSORSHIPS
P&G has used sponsorships to market its product very
well. It has sponsored various award shows, games and
mega events across the globe

34. CELEB ENDORSEMENTS

35. CELEB ENDORSEMENTS

36. MARKETING DURING RECESSION
During 2009,the time of recession, P&G
maintained its budget for marketing . It resorted
to coupons and in-store promotional campaigns
to lure in consumers during recession

37. DIGITAL MARKETING AT P&G
Earliest activities limited to websites
of brand but it was only after launch
of pampers.comP&G was able
to provide an interactive platform….

38. Beinggirl.com was P&G’s
unique digital marketing
strategy to interact with
Girls

39. Mobile marketing became an integrated part
of P&G’s digital-marketing strategy. Crest
Whitening Plus marked an entry for P&G in
the mobile marketing place….

40. Because….
P&G won accolades for its TV series –
“My Black is beautiful” and this digital
marketing strategy grew its sales by 20%
in first half of 2010.

41. P&G’s OLD SPICE CAMPAIGN

42. P&G’s OLD SPICE CAMPAIGN
Campaign went viral on Youtube and adding as
many as 94,000 followers on twitter marking a
shift for P&G from mass marketer to one-on-one
digitized marketer

43. SIGNAL…Bringing powerful digital leaders together

44. SOCIAL MEDIA Campaigns

45. SOCIAL MEDIA CAMPAIGNS

46. Brand PHILANTHROPY
Brand Philanthropy helps in
creation of good image about the
brand as was the case in TIDE
whose sales got boosted after
Katrina campaign

47. ANALYSIS OF P&G’s ICONIC BRANDS

48. IVORY-MARKETING IN A RETRO STYLE
IVORY was the first directly marketed product to consumer by P&G. The soap has seen different types of marketing – from neo-
classical marketing to modern marketing.

49. TIDE
• TIDE was a breakthrough product and passed
several tests including the risk of P&G brand’s
cannibalization
• The risk of launching the product two year early
bore heavy returndsin terms of greater market
share.

50. PAMPERS – brand that created
the diaper market
P&G has managed to keep the costs of diapers low while it has launched “Luvs” diapers for its premium
customers…

51. CREST-The FIRST FLOURIDE
TOOTHPASTE
P&G worked with American Dental Association
Fluoride toothpastes got generic status in 80s and this made it
to slip out of the market
P&G responded to the threats by introducing Crest Whitestrips

52. ALWAYS
• Always was P&G’s first global brand….Always Infinity was another remarkable
example of P&G’s innovation

53. SALES
High potential for P&G in developing countries market for growth

54. SWOT ANALYSIS: STRENGHTS
• Strong focus on R&D
• Strong Brand Portfolio
• Strategic Acquisitions
• Consumer Focus
• Strong Marketing Team

55. WEAKNESSES
• Increasing instances of
product recalls
• Poor Website
• Environmental Issues

56. OPPORTUNITIES
• Growing Indian FMCG market
• Expansion especially in developing
markets
• Growing interest of people in green
products

57. THREATS
• Creation of generic product
might lower its value
• Change in younger
generation preferences
• Global economic conditions
• Intense competition in industry

58. •Case Basics
•Situational Analysis
•Marketing Channels
•Marketing Techniques
•SWOT Analysis