Procter & Gamble: Marketing Capabilities

Case Study Analysis

Sujay Agrawal

IIT Bombay

Evaluating P&G’s measures to reach

“More consumers in more parts of the world, more completely”

Which requires to create long-lasting & steadily growing brands

Situation Of The Case

1. Expanding product categories and product Lines

2. Understanding the changing market

3. Reaching the customers with new and old offerings

The long run deliverables to accomplish this are :

1. Expanding product categories and product lines

P&G achieves this through 2 methods :

1. Acquisition

By acquiring small businesses P&G enters new categories like household paper

products and food & beverages

• In-house labs developed all initial products

like Pampers and Downy

• External R&D units, labs and technology

consultants used later under the Connect-

and-Develop model.

• University labs, retired scientists and

independent researchers incorporated for

product development solutions.

2. Innovation

Innovation process successful; evident from facts:

• By 2006 more than 35% of P&G’s new products originated externally

• Pampers was an innovation success with phenomenal manufacturing

efficiency, which kept the price reasonable despite high demand

Also boosted internal R&D as well as decreased the cost of innovation

Evaluation of increasing product line

• Extensive market research for global products success in local markets

• Shifted focus from geographical business units to Global business units

(for global prod development + quick market strategies)

• Customer research conducted by

a. distributing free samples

b. conducting focus groups

c. in store interviews with potential customers

• Psychological methods and Neuromarketing techniques used to understand

consumer behavioral patterns.

2. Understand changing market

• In store Ads, promotions, TV Ads customized to regions

e.g. South Korea focused more on outdoor ads

while Japan focused on mobile advertisements

• Sponsorships – of television shows (soap operas) and

Olympics teams of some nations

3. Reaching Customers with New & Old offerings

• Recent shift to digital marketing

Websites, YouTube channels, social media and content based

online communities such as Manofthehouse.com

• Shift in marketing approach from functionality to design and an emotional appeal

• Developing media neutral messages to be adapt to old as well as upcoming new

media outlets

Evaluation of advertisements

Measure of Sales, ROMI (Return on Marketing Investment) and number

of successful brands are suitable to evaluate P&G’s reach to consumers

These parameters suggest the current strategy of digital & in-store

marketing is successful

Thank You

Credits

• http://www.pg.com/en_IN/

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