Procter & Gamble

Marketing Capabilities

About

An American multinational consumer goods company, founded by William Procter and James Gamble in 1837.

Headquarters:Cincinnati,Ohio,United States.

The company manages two dozen $1 billion brands known worldwide including Gillette, Pampers etc.

A global leader in branded consumer goods, known for iconic category-defining products.

Company’s Corporate mission Bob McDonald, P&G’s CEO,2010

To improve the lives of its customers through continued innovation to reach “More Consumers, In More Parts of the

World, More Completely”.

P&G focuses on three specific choices:

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

to build our business with unserved and underserved consumers

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

Products

Brands

Innovation and R&D: P&G

marketing’s seCret sauCe

P&G took a scientific approach and connected R&D with the company‟s sales and marketing.

Seven GBUs were formed supported by three teams

Business development team which focused

on innovating in existing categories.

A venture team tasked with acquiring

brands in new areas.

A market development organizations that

would perform intensive market research.

Connect &

Develop

P&G started this strategy in which 50% of innovation and new products came from P&G‟s network of labs, and 50% through the labs—that is, through partnerships and connections with non-P&G scientists and engineers.

This structure led to successful

product introductions such as the

Swiffer Dusters, Olay Regenerist,

Crest Whitestrips, and Crest

Spinbrush.

Marketing

Strategy

Earlier P&G had pursued a multibrand strategy, and it managed brands across a category carefully, with each getting individual support and satisfying a segment of the market.

Kotchka brought a design culture to every step of product development and introduced it to P&G through a number of actions such as "design tasting.”

Consumer-centric marketing approach.

Return On Marketing Investment

Research on

consumer

Qualitatively Group discussions

Interviewed consumers at home

performed in-context visits

in-store visits

Quantitatively gathered data on consumers

utilizing blind tests

concept and use tests

quality monitoring

large-scale studies of the habits and practices of consumers

Digital Marketing

Began with the launch of pampers.com.

Launched BEINGGIRL.com in 2000 to provide expert advice to teenage girls and used it to advertise P&G tampons and offer free samples.

Launched a mobile marketing ad campaign to promote Crest Whitening Plus Scope toothpaste.

„My Black is Beautiful‟ was launched to target African American women and it introduced TV series which gathered million of views resulting in increase sales.

Old spice YouTube video campaign attracted 13.7 million people. The campaign was seen as a milestone in P&G‟s transition from a mass marketer to a one-on-one digitized marketer.

Unique “Thank you mom” campaign helped it to connect with consumers emotionally.

Advertising

First company to advertise directly to its consumers and sell its products through “soap operas” by sponsoring radio and TV programming that targeted women.

To meet challenges in new markets P&G introduced a “media neutral” idea, meaning customizing advertising campaigns for different regions.

Lafley ,Stengel and Kotchka shifted towards design and emotion driven-advertising to make the brands inspirational.

Sponsorships

P&G, initially a U.S. Olympic team sponsor for the 2010 Games, became a worldwide sponsor, specifically to raise its visibility in emerging markets, for the 2012 winter games to be held in Russia and the 2016 summer games in Brazil.

Sponsored NFL and engaged with consumers through national youth health and fitness campaign focused on fighting childhood obesity and increasing wellness.

Social Media

In 2007, P&G launched two social media sites: Capessa for women on Yahoo! Health and the People‟s Choice Community .

P&G began using Facebook as a marketing tool & used Facebook as a marketing supplement, not a replacement. It identified 2010 as the year to acquire Facebook friends, but the years beyond that were for figuring out how to use them.

In 2011, when company research showed that men were going to women‟s sites for information,P&G started Manofthehouse.com, which featured household advice for men. In contrast to other similar sites Manofthehouse.com aimed to “speak to the whole man.”

Celebrity Endorsements

P&G received a no. of celebrity endorsers for its acquired beauty companies and products like Pantene & Cover Girl Cosmetics.

Sports stars like Roger Federer were hired to promote brands like Gillette & Head & Shoulders shampoo in TV commercials, print and online ads .

P&G Sales Percentage

Sales

Fabric &Home Care

Beauty

Health Care

Grooming

Snacks and Pet Care

Baby &Family Care

P&G Earnings Percentage

Earnings

Fabric &Home Care

Beauty

Health Care

Grooming

Snacks and Pet Care

Baby &Family Care

Next for P&G

Building on its strengths in R&D

Consumer research

Product performance

Innovate as the world‟s

largest innovator

About P&G

Company‟s Corporate mission

Brands and Products

Innovation and R&D: P&G Marketing‟s Secret Sauce

Connect & Develop

Marketing Strategy

Research on consumer

Digital Marketing

Advertising

Sponsorships & Social Media

Celebrity Endorsements

P&G Sales and Earnings Percentage

Next for P&G

Disclaimer

Created by Vishal Gupta,IIT-BHU during a marketing Internship under Prof Sameer Mathur IIM Lucknow.