MULTI-BILLION MULTI-BRAND

UNIVERSE

1837

Procter & Gamble began in 1837 when brothers-in-law William Proctor & James Gamble formed a small candle and soap company in The United Kingdom.

Today

P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United States.

Brand PowerGlobal leader in branded consumer goods

Owns 25 billion-dollar brands$84 billion annual worldwide sales

Used and trusted by 4.8 billion peopleIn over 180 countries

Employs over 121,000 people in 80 over countries

A progressive company Pioneer of marketing plans seen as STANDARD INDUSTRIAL

PRACTICES. First company to DIRECTLY advertise to consumersPursued EXPANSION as early as the 1930-decadeUsed ACQUISITIONS to expand into NEW markets

Powerful INNOVATION network WORLD’S LARGEST financial commitment to ADVERTISING

Adopting NEW media for brand PROMOTION, consumer RESEARCH

“acquisition or joint venture on a small scale, and through trial and error, learn the formula for success before making a major

commitment..”

Values• Integrity• Leadership• Ownership• Passion for

winning• Trust

Corporate mission “to build on its company purpose to improve the lives of its

customers through continued innovation”“to reach More Consumers, In More Parts of the World, More

Completely.”“to build our business with unserved and underserved customers”

“to develop faster-growing, higher margin businesses with global leadership potential”

Product Categories

Innovation and R&D

P&G Marketing’s Secret Sauce…

Replacing the trial-and-error methods commonly pursued in earlier times, P&G took a scientific approach and connected R&D with the

company’s sales and marketing.

First time products included……

CREST toothpaste(1955) – FIRST toothpaste with FlourideHEAD & SHOULDERS dandruff shampoo

,and PAMPERS disposable diapers

Bigger innovations, faster speed to market, greater growth-innovation vitality.

REORGANIZATION in 1999 LEAD TO

1. 7 Global Business Units replacing 4 Geographic Units

2. New teams – Business Development (innovation), Venture(acquisitions), Market

Development(research) 3. Innovation partnerships with non-P&G engineers

and scientists.

Marketing at P&G

Certain observations………

“on their own, most of the brands are category killers run by industry leaders with seamlessly endless resources at their disposal to exploit unmet consumer needs to drive category

growth and market expansion..”

“P&G recognized that building brands is not exclusively or even primarily a marketing

activity. Rather it is a systems problem”

“Steadily lowering the costs of manufacturing and distribution ensured a brands success”

P&G had a MULTIBRAND STRATEGY ,and it managed brands across carefully, with each getting

individual support and satisfying a segment of the market

Alan Lafley Era (2000-) Goal to make the company #1 product-designer in the world, a departure from past focus on FUNCTION, PERFORMANCE and

PRICE. Lafley’s ambitions drove a new, intensified focus on design,

married to P&G’s long-standing focus on function, performance and price.

The new emphasis shifted the company towards a more consumer-centric marketing approach as well.

Lafley’s shake-up and design push articulated more clearly that P&G’s brands faced TWO MOMENTS OF TRUTH..

FIRST MOMENT OF TRUTH – On the store shelf

SECOND MOMENT OF TRUTH – Buying Decision of customers on

satisfaction delivered by the product.

Customer Commitment Long history of rigorous product and market testing, being process-

oriented. New technologies also continued to provide P&G with ways to

engage & measure consumer interests, habits and satisfaction.

Gain customer data + Process-driven = direct, one-on-one relationships

Over 20000 research studies, invested $500 million

Advertising Advertising

Earliest method – Soap Operas

While P&G constantly built on its experience with broadcast media, it also relied on developing long-standing partnerships with

advertising agencies to develop robust brand identities for its consumer goods portfolio.

Specific to regional markets…

Sponsorships

Celebrity EndorsementsP&G’s acquisitions of several beauty companies in

the 1990s had brought a number of celebrity endorsers including CoverGirl spokespersons

Christie Brinkley, Drew Barrymore, Ellen DeGeneres, and Queen, Sophia Vergara & Katy

Perry

Digital Marketing

Earlier, digital activity was limited to brand websites.

Such campaigns were seen as a milestone in P&G’s transition from a MASS MARKETER to a ONE-ON-ONE

DIGITIZED MARKETER

Digital media enabled a raft of niche experimentations targeted to specific customers.

Improvements lead websites to be INTERACTIVE FORUMS.

Social MediaIn 2010, began using Facebook as a marketing tool

By 2011, had 15 brands with “friends” in 6-figure range.

Facebook was used as SUPPLEMENT, not a REPLACEMENT

Rounded out its earlier social media efforts with ManOFTheHouse.com aimed to “speak to the whole

man”

Interactive Community Promotion

“Loads Of Hope”

In 2005, Tide laundry detergent had its best sales in a decade after a highly successful post-Katrina campaign.

Tide opened a Laundromat in New Orleans to wash survivors’ clothes and sold T-shirts woth various slogan as

“Be Seen, not Spotted”

Select Iconic Brand Case…TIDE

Originally developed during the world war 2, Tide was not just a new soap, but a new synthetic formula for a detergent- a BREAKTHROUGH product.

To stay ahead of competition, tried-and-tested strategy was replaced with RUSH-to-the-market…skipping major testing mechanisms, market and

consumer analysis.Risk 1

The product might cannibalise the brand’s laundry soap market.Risk 2

Not enough testing Opportunity

With the introduction of top-loading washing machines, P&G played up Tide’s compatibility with new appliances becoming hugely popular.

Marketing Lessons from P&G…ONE

Never give the consumer a product-based reason to switch away from your brand.

TWOThink of every brand that you have and treat them as it as your ONLY brand.

THREEAlways determine whether product innovation is brand-specific or generic.

FOURCompetition will always follow your technology, not your brand.

FIVE Always test your worst-case scenario in the market. If you don’t, and if you

make a wrong move, the market will be the worsdt-case scenario.

Competition

Connect-and-DevelopInstitute top ten need list one for each brandInclude advantages of brand for consumers

Convert these into science problems for scientists, researchers and engineers.

P&G’s R&D productivity increased by nearly 60%, and the firm’s innovation success doubled, with a simultaneous drop in cost of innovation. R&D investment as a percentage of sales dropped from 4.8% in 2000 to 3.4% in 2006.

North Amer-

ica42%

Western Europe

21%

Asia 15%

Other 22%

SALES

Other statistics…..

Summary- Company background

- Corporate Mission- P&G Marketing Secret Sauce

- Marketing at P&G- Marketing Strategy

- Commitment to the customer- Advertising

- Digital Marketing- Social Media

- Interactive Community Promotion- Brand Case Study

- Marketing Lessons from P&G- Competition

- Connect-and-Develop

Disclaimer

Created by PRATYUSH SINGH, MIT Manipal, during the Marketing Internship by Prof. Sameer Mathur, IIM Lucknow