Procter & Gamble : Marketing

Capabilities

What is

Procter & Gamble Co. , also known as P&G , is an American multinational consumer goods company headquartered in downtown Cincinnati , Ohio , the U.S. , founded by William Procter and James Gamble.

Who are the players?

•CEO A.G Lafley•CEO Bob McDonald•CEO Durk Jager•CEO Jim Stengel•Vice President Design Unit- Claudia Kotchka

SITUATION

ANALYSIS

Has good company

background

Enters new market with a mission and

decisions

Takes scientific approach to

connect with people

Brings in a design unit as a part of

marketing strategy

Shift from product based marketing to consumer-centric

marketing

Communication through direct & digital

marketing & sales promotion

Multibranding

Tries to move forward with an aim to reach 5 billion new consumers

Connect &

Develop

Know about the design , implementation & interpretation of product development & marketing strategies

Evaluate primary and unique communication strategies and money spending

Innovation , R&D and acquisition

ANALYSIS OF NET SALES AND EARNINGS

MAJORISSUES

1. Growth of P&G’s core brands & categories with an unrelenting focus on innovation & design.

2. Building business with unserved & underserved consumers through consumer-centric , digital & direct and neuromarketing , multibranding and interactive community promotion.

3. Continue to grow & develop faster-growing higher margin businesses with global leadership potential.

MARKETING STRATEGY

• Historically, 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.

• A new design unit was created for design innovation & strategy. A culture of design was introduced in P&G which complemented function-driven process.

• A consumer-centric marketing approach was followed which allowed customization on the basis of needs of people.

• The firm leveraged its products through multibranding , focused on “Return On Marketing Investment” and shopper marketing experience.

COMMITMENT TO

CONSUMER

• A lot of innovative approaches were introduced in product and market research that gained qualitative and quantitative information from the consumers , in-turn resulting in better products and positive buying behavior.

• Word-of-mouth advertising was followed , especially in relation with females through campaigns like “Thank you Mom” & “Loads of Hope” which acted as a means of emotional branding.

• The pre and post purchase behavior towards products were measured by online grocer sites & Neuromarketing which helped in building one-to-one relationship with customers.

ADVERTISING

• It was the first company to sell its products directly to consumers through dramas , T.V commercials and operas instead of including wholesalers and retailers in the chain.

• To compete in less familiar markets , it developed “Media neutral” idea that could be advertised in different and relevant local languages.

• Lafley , Stengel and Kotchka aimed towards design and emotion driven-advertising along with benefits and function driven one.

SPONSORSHIP

• It sponsored the U.S. Olympic team in 2010 and raised its visibility as a worldwide sponsor for 2012 winter games in Russia and 2016 summer games summer games in Brazil.

• It engaged its consumers in fitness campaign through NFL sponsorship whereas the major campaign “Thank you Mom” still remained the best in touching everyone’s heart.

CELEBRITY ENDORSEMENT

S

• P&G endorsed many celebrities and models for its acquired beauty companies and products like CoverGirl cosmetics and Pantene shampoo.

• Gillette and Head & Shoulders ads featuring sportspersons were advertised through YouTube, T.V. , online and print media.

• P&G also pursued a host of promotion, sponsorship, and endorsement relationships as well as other nontraditional outlets, such as product placement in television and film.

DIGITAL MARKETING

• Digital media enabled niche experimentation targeted to specific customers, including online serials , video games, and YouTube channels for specific products.

• P&G launched its first mobile marketing ad campaign in 2006 . The campaign also released TV commercials and print advertisements, and had an online presence.

• P&G’s line of “My Black is Beautiful” products, introduced two web series in 2010 to showcase its products. This attracted a lot of views online . Collection sales and market share increased.

• P&G’s Old Spice television commercial and YouTube sensation, “The Man Your Man Could Smell Like,” gave P&G its greatest exposure in the online community and bridged the power of digital and social media.

INTERACTIVE COMMUNITY PROMOTION

• P&G used T-shirts having slogans and endorsed celebrities like Katrina Kaif to promote sale of products like Tide. The T-shirts were worn by celebrities and were sold online and proceeds went to hurricane affected families.

• A similar mass promotional activity was held in Times Square in 2006 , targeting holiday shoppers. It generated YouTube ads and attracted a lot of viewers , mainly youth.

• A large blue neon sign in the middle of a Broadway block read “Restrooms” and led people up an escalator into a lounge with flat-screen TVs, leather couches, a fireplace, and 20 shiny, spotless toilets. The ad was used to promote Charmin toilet paper, and tourists loved it.

THE END