p&g marketing capabilities, hbr case study,anjali verma
TRANSCRIPT
P>ouching Lives,Improving Life
WHAT IS P&G?
American multinational consumer goods company
Global leader in branded consumer goods,Known for iconic category defining products
More than 50 brands in 6 business segments
Founded by William Procter & James Gamble in 1837
WHAT IS P&G’S PURPOSE?
Improve lives of its customers through continued innovationTo reach
MORE CONSUMERS, IN MORE PARTS OF THE WORLD, MORE COMPLETELY
MISSION
BRANDS UNDER VARIOUS SEGMENTS
WHERE DOES P&G STAND?
BILLION DOLLAR BRANDS
HALF-BILLION DOLLAR BRANDS
ACTIONELLALWAYSARIELBOUNTYBRAUNCHARMINCRESTDAWNDOWNYDURACELLFEBREZEGAINGILLETTEHEAD&SHOULDERSIAMSKOLESTONOLAYORAL-BPAMPERS
ACEASACOL
BOLDBOSS FRAGRANCE
CASCADECOVERGIRL BLAST
DASHDOLCE&GABBANA FRAGRANCE
EUKANUBAGILLETTE VENUS
HERBAL ESSENCENYQUIL
PEARLPRILOSEC
REJOICESAFEGUARD
SK-IISWIFFER DUSTERS
TAMPAX
34%
14%4%30%
18%
% OF NET SALES
Beauty&Grooming Health Care Snacks&Pet Care
Fabric&Home Care Baby&Family Care
42%
21%
15%
13% 9%
% OF NET SALES
North AmericaWestern EuropeAsiaCentral&Eastern Europe,Middle East,AfricaLatin America
SEGMENTWISE DISTRIBUTION
REGIONWISE DISTRIBUTION
OBJECTIVES OF THE CASE STUDY
EXPLORE1. P&G’s powerful innovation network , strong consumer
research & evolving market strategy2.Expansion into new lines of business3.P&G’s transition from early marketing campaigns to recent
experiments with digital media
THROUGH AN OVERVIEW OF P&G’S ISSUES OF FOCUS
ISSUES OF FOCUSGrow core brands and categories with an unrelenting focus on innovation
Build business with unserved & underserved consumers
Develop faster growing, higher margin businesses with global leadership potential
1. GROWING CORE BRANDS THROUGH INNOVATION & R&D
(i) 7 Global Business Units(GBUs) based on product categories replaced company’s 4 geographic business units
(ii) 3 New teams supported GBUs
• Innovate in existing categories
BUSINESS DEVELOPMENT TEAM
• Acquire brands in new areas
• Nurture ideas created by business development team, not relating to existing brands
VENTURE TEAM
• Intensive market research to ensure global products’ success in local markets
MARKET DEVELOPMENT ORGANISATION
(iii) CONNECT AND DEVELOP
INNOVATION50% P&G’s Network of labs
50% Partnership & connections with non-P&G scientists and engineers
“Best ideas, wherever they
come from should rise to the surface”
Identification of proven technologies, packages, & products that could be improved, scaled up, and marketed on its own or through partnerships
•Build and maintain external connections with university & industry researchers & supplier networks
Network of 70 technology entrepreneurs
2. REACHING THE UNSERVED & UNDERSERVED CONSUMERS
CONSUMER CENTRIC MARKETING APPROACH
Create more DIRECT, ONE-TO-ONE relationships with target audiences
Deeper understanding of
WHO THE PRODUCT IS FOR?
WHAT IS DIFFERENT ABOUT THAT CONSUMER?
HOW THAT CONSUMER EXPECTS TO USE THE PRODUCT?Interaction with
more than 5 million
consumers in 100 countries
COMMITMENT TO CONSUMERS
Consumer Research Methods
QUALITATIVE
• Focus group discussions
• Consumer interviews at home
• In-context visits
• In-store interviews
QUANTITATIVE
• Large-scale studies of habits & practices of consumers
• Blind tests
• Concept & Use tests
NEUROMARKETING- Psychological surveys to measure mood & ECG technology to measure electrical activity in the brain as subjects were exposed to commercials
3. ENSURING GLOBAL PRESENCE
MULTIBRAND STRATEGY
Manage brands across a category with each getting individual support
& satisfying a segment of the market
EXAMPLE- P&G’S Detergent category
TIDE-Premium brand
CHEER- “Cleaned colours safely”
GAIN- “Had fresh scent”
OXYDOL- “Contained Bleach”
LEVERAGING P&G BRAND TO DRIVE SALES TO ITS SUB-BRANDS
USE OF DESIGN AS A COMPLEMENT TO P&G’S FUNCTION DRIVEN PROCESS
Creation of a new design unit with Claudia Kotchka as vice
president for design innovation
Intensified focus on design along with long-standing focus on
product functionality and price.Bring design to every step of product development
Help consumers RECOGNISE, UNDERSTAND & IMAGINE functions of a product
ADVERTISINGDeveloping ROBUST BRAND IDENTITY for its portfolio of consumer goods through long standing partnerships with advertising agencies
Developing a “ media neutral” idea that could be translated across a range of media
Focused on product superiority & functional benefits
Advertising campaigns customised by region
SPONSORSHIPSNational Football League
US Olympic team sponsor for 2012 games, raising its visibility in
emerging markets
Sponsored Sebastian Vettel, the “youngest ever” Formula one
champion
CELEBRITY ENDORSEMENTS
DIGITAL MEDIALaunch of
I. PAMPERS.COM- Contained product information.Provided information for new &expectant mothers.Served as an interactive forum.
ll. BEINGGIRL.COM- Information & expert advice on issues such as menstruation,eating disorders, acne & dating
lll. MANOFTHEHOUSE.COM- “SPEAK TO THE WHOLE MAN”Featured household advice for men .
TARGETED AFRICAN
AMERICAN WOMEN
Introduced 2 web series :
BUPPIESA scripted drama that integrated COVERGIRL’S Queen collection
MY BLACK IS BEAUTIFULA TV series showcasing the collection of P&G products in a makeover setting
WHAT CAN P&G BE?
MOVING FORWARD
Evolve marketing capabilities while pushing toward reaching 5 billion consumers served worldwide.
Build on its strengths in R&D , consumer research, and product performance while continuing to innovate & evolve as the world’s largest marketer
BRIEF ANALYSIS
Expansion through joint venture and acquisitionssuch as Charmin Paper Mill, Gillette, Folger’s Coffee & pet foods manufacture Iams, opened up household paper product market, men’s grooming, food & pet care markets respectively for P&G.
TOP CONSUMER GOODS COMPANY
EVOLVING MARKETING STRATEGY
Shifted from exclusive focus on function, performance & price to design, making the marketing approach more consumer centric. Shifted from sole focus on product superiority & functional benefits to a more emotion-driven advertising, connecting better with consumers
INNOVATION AND R&D
Increase in innovation productivity by 60%, drop in cost of innovation and doubling innovation success due to “CONNECT AND DEVELOP” through adaption of new skills. Collaboration with scientists & engineers across the globe and combatting internal focus resulted in successful product innovations such as Swiffer dusters, Olay regenerist, Crest whitestrips.
SUMMARY
THANK YOU
THIS PRESENTATION WAS CREATED BY ANJALI VERMA, RAMJAS COLLEGE, UNIVERSITY OF DELHI, DURING A MARKETING INTERNSHIP BY PROFESSOR SAMEER MATHUR, IIM LUCKNOW