PROCTER & GAMBLE: MARKETING CAPABILITIES

(CASE ANALYSIS)Manjushree Yethirajyam

COMPANY BACKGROUND

IVORY One of P&G’s first product was Ivory, an inexpensive soap that floats on water.

P&G pursued international expansion since the 1930s. It expanded into new lines of

business through acquisitions.

PROCTER & GAMBLE TODAY

APPROACHES FOR GROWTH

P&G adopts three distinct methods to control their current businesses and grow into new forays.

APPROACHES FOR GROWTH

1 Design Innovation and Strategy, Research and Development

2 Rigorous Product and Market Testing

3Advertising, Commercials, Endorsements, Digital Marketing, Social Media

DESIGN INNOVATION AND STRATEGY, RESEARCH AND DEVELOPMENT

“to grow P&G’s core brands and categories with an unrelenting focus on innovation”

Four geographic business units

Seven global business units (GBUs)

CLAUDIA KOTCHKA• New Design Unit – Design Innovation

and Strategy • Claudia Kotchka – Vice President of

Design Innovation and Strategy• Aim: Make P&G top product-design

company

DESIGN TASTING • “bring design to every stop of product development and introduce a culture of design to P&G”• Design Tasting for top 200 executives• Design - a complement, helping consumers recognize,understand, and in some cases even imagine the functions of a given product

“design informed the innovation processand even changed the function of someproducts”

TWO MOMENTS OF TRUTHWhenever a customer buys a product, he experiences two moments of truth: •first, on the store shelf; and • second, when the consumer used the product and decided whether it delivered on its promise.

P&G’S WEBSITE

INNOVATION AND R&D

R&D INVESTMENTS

RIGOROUS PRODUCT AND MARKET

TESTING“to buildour business with unserved and underserved consumers”

VOCALPOINT.COMThe program crafted productmessages that mothers and other women shared with peers;

P&G also gave them samples, coupons, and opportunitiesto share their opinions with P&G.

This personal endorsement approach helpedadvertisers.

Tide is one of the few P&G products that was launched intothe market without the standardrigorous testing that all P&Gproducts usually undergo.

This is because testing would take about 2 years and there was fear that competitors would catch up with thetechnology.

ADVERTISING“to continue to grow and develop faster-growing, higher margin businesses with global leadership potential”

Daytime Radio Shows and Television Commercials

Advertising Campaigns customized by regions

U.S. Olympic Team Sponsor for 2010 GamesWinter Games, Russia – 2012Summer Games, Brazil - 2016National Football League (NFL) Sponsor

CelebrityEndorsements

Multi-branding:Campaigns

THE WAY AHEAD

WAY AHEAD “We focused on three specificchoices: to grow P&G’s core brands and categories with an unrelenting focus on innovation; to build our business with unserved and underserved consumers; and to continue to grow and developfaster-growing, higher margin businesses with global leadership potential.”

EXPENDITURES ON ADVERTISING

Crest Olay CoverGirl DayQuil Pampers Swiffer Febreze Tide Gillette020406080

100120140160180200

Biggest Spending Brands

Spendings (in million US Dollars)

OPTIMISING MARKETING EXPENDITURES

CHANGES IN MARKETING STRATEGIES using digital technology for production, pooling more production using open sourcing and creativity in our work to create advertising

CHANGES IN MARKETING STRATEGIES reduce the amount it spends on promotions by partnering with retail partners and combining their joint marketing programmes

increasing media continuity by bouncing spending more evenly across months and quarters on all brands to enable top of mind awareness year around.

optimise its medium mix by advertising based on when, where and how much time consumers spend engaging with ads on various media platforms

Thank you.