procter & gamble.pptx

40
Procter & Gamble : Marketing Capabilities Harvard Business School Case

Upload: ayush-shandilya

Post on 13-Feb-2017

34 views

Category:

Marketing


1 download

TRANSCRIPT

Page 1: Procter & gamble.pptx

Procter & Gamble : Marketing Capabilities

Harvard Business School Case

Page 2: Procter & gamble.pptx
Page 3: Procter & gamble.pptx

P G&

What is

?

Page 4: Procter & gamble.pptx

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.

It holds one of the most powerful portfolios of trusted brands.

Page 5: Procter & gamble.pptx
Page 6: Procter & gamble.pptx
Page 7: Procter & gamble.pptx

Who are the players ?

• CEO A.G. Lafley • CEO Bob McDonald• CEO Durk Jager• CEO Jim Stengel• Claudia Kotchka, o Vice-president, Design unit• Marc Pritchard, o Global Brand Building Officer

Page 8: Procter & gamble.pptx

SITUATION

ANALYSIS

Page 9: Procter & gamble.pptx

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

Page 10: Procter & gamble.pptx
Page 11: Procter & gamble.pptx

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

Page 12: Procter & gamble.pptx

ANALYSIS OF NET SALES AND EARNINGS

Page 13: Procter & gamble.pptx
Page 14: Procter & gamble.pptx

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.

Page 15: Procter & gamble.pptx

ONE

MAJOR QUESTION

Page 16: Procter & gamble.pptx

Is “INNOVATION and R&D” The Secret Sauce

of Marketing for P&G ?

Page 17: Procter & gamble.pptx

Growth of P&G’s core brands & categories with

an unrelenting focus on innovation & design.

1st ISSUE

Page 18: Procter & gamble.pptx

• P&G pursued international expansion as early as the 1930s, and from 1945 to 1980 it began to enter markets in Latin America, Western Europe, and Japan.

• P&G’s approach to entering new markets was via “acquisition or joint venture on a small scale, and through trial and error, learn the formula for success before making a major commitment.”

• In 2010, P&G’s stated corporate mission was to build on its company purpose to improve the lives of its customers through continued innovation to reach “More Consumers, In More Parts of the World, More Completely.”

• Connect and Develop : A step towards innovation , research and development of products

Page 19: Procter & gamble.pptx
Page 20: Procter & gamble.pptx

Building business with unserved & underserved

consumers through consumer-centric , digital

& direct and neuromarketing , multibranding

and interactive community promotion.

2nd ISSUE

Page 21: Procter & gamble.pptx

MARKETING STRATEGY

Page 22: Procter & gamble.pptx

• 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.

Page 23: Procter & gamble.pptx

COMMITMENT TO THE

CONSUMER

Page 24: Procter & gamble.pptx

• 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 behaviour.

• 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.

Page 25: Procter & gamble.pptx

ADVERTISING

Page 26: Procter & gamble.pptx

• 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.

Page 27: Procter & gamble.pptx

SPONSORSHIP

Page 28: Procter & gamble.pptx

• 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.

Page 29: Procter & gamble.pptx

CELEBRITY ENDORSEMENTS

Page 30: Procter & gamble.pptx

• P&G endorsed many celebrities and spokesmodels 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.

Page 31: Procter & gamble.pptx

MEDIA SPENDING

Page 32: Procter & gamble.pptx

• During recession in 2009 , P&G shifted to coupons and in-store promotional activities to maintain its media presence while shifting ad costs.

• In 2010, P&G increased ad spending by $1 billion, with a 20% increase in media impressions; higher revenues led to an increase in dollars spent. McDonald, who became CEO in 2010, stated that P&G would maintain the same level of spending, while shifting dollars to digital advertising and other new media to broaden the audience.

Page 33: Procter & gamble.pptx

DIGITAL MARKETING

Page 34: Procter & gamble.pptx

• 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.

• From mass marketer , P&G became one-to-one digitized marketer.

Page 35: Procter & gamble.pptx

SOCIAL MEDIA

Page 36: Procter & gamble.pptx

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

• P&G 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 research showed that men were interested in work generally done by women in houses , P&G rounded out its earlier social media efforts with Manofthehouse.com, which featured household advice for men .

• Social media was a way to speak to its audience virtually.

Page 37: Procter & gamble.pptx

INTERACTIVE COMMUNITY PROMOTION

Page 38: Procter & gamble.pptx

• 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.

Page 39: Procter & gamble.pptx

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

3rd ISSUE

Page 40: Procter & gamble.pptx

MOVING FORWARD

Digital marketing with campaigns,Emotional, design and function driven marketing , R&D , consumer research & product performance.