Harvard Business School Case

1. Procter & Gamble
Marketing Capabilities
Harvard Business School Case

3. Introduction
• The Procter and Gamble company also
known as P&G, is an American
Multinational consumer goods company
headquartered in downtown Cincinnati,
Ohio, USA.
• Its Products include pet foods, cleaning
agents and personal care products.

4. History
 1837: Brothers-in-law William Procter and James Gamble start a
partnership, making and selling candles and soap in
Cincinnati
 1859: P&G sales reach $1 Million
 1879: The inexpensive, but high Ivory soap is introduced.
 1924: P&G is one of the first to create a market research department
to study consumer preferences and buying habits.
 1955: Crest, the first toothpaste with fluoride clinically proven to
fight cavities, is introduced.
 1961: Pampers is introduced and eventually replaces diapers.
 2002: P&G develops Naturally feminine pads specifically to meet
the need of low-income women in Latin America.

5. Present Scenario
• P&G operates in 80 countries worldwide, employing more
than 100,000. Has a dozen $1 Billion brands in its portfolio.

6. 2010 P&G Statistics
• P&G Scales $78.94 Billion
• Net Income $12.74 Billion
• Market Capitalization $186.63 Billion
Developed Markets represent 66% of
total sales.

7. Market Distribution (Net Sales)
Business Segment Geographic Region
Sales
Beauty
(24%)
Grooming
(10%)
Health Care
(14%)
Snacks and
Pet Care
(4%)
Fabric Care
& Home
Care (30%)
Baby Care
& Family
Care (18%)
Sales
North
America
(42%)
Western
Europe
(21%)
Asia (15%)
Central and
Eastern
Europe
(13%)
Latin
America
(9%)

8. Core Strength of P&G
 Consumer Understanding
 Innovation

9.  Brand Building
 Go-to-Market Capabilities
 Scale

10. Ingredients of P&G’s Success
 Invests $2 Billion annually on R&D.
 Partners with third parties in over 80% of its innovation
activity.
 Connect & develop platform, set up in year 2000 with
the aim of gathering 50% of ideas from outside sources,
be it individuals, firms or universities.

11. Emphasis on Design
o Adopted consumer-centric marketing approach.
o Questions Like – “Who is your consumer & What’s
different about her” were analyzed.
o Worked on two moments of truth of consumers.

12. Sponsorships
- To increase its visibility in emerging markets.
• US Olympic Team sponsor of 2010 games.
• 2012 Winter games, Russia.

13. Celebrity Endorsements:
• Acquisition of several beauty companies led to a number
of celebrity endorsers.
• Tennis star Roger Federer in Gillele fusion products
advertisements.

14. Digital and Social Marketing
• Product based webistes
• Mobile ad campaign “Irresistibility Quiz”
• Old Spice youtube video campaign
attracted 13.7 Million People.
• Manofthehouse.com for threshold advice to
a Man.

15. SWOT Analysis
 Strength:
a) Strong Focus on Research and Development.
b) Leading Market position
c) Diversified product portfolio
d) Stromng brand portfolio
e) Acquisitions
 Weakness:
a) Does not divest its weak or poor brands
b) Environmental issues
c) Increasing instances of products recalls.

16.  Opportunities:
a) Emerging Men’s Market
b) Interest in Natural/Green Products
c) Pursue growth overseas
 Threats:
a) Intense Competition
b) Merger Integration
c) Many Substitutes are available.

17. P&G’s Brand Marketing
 Ivory:
o Product Details:
a. White and mildly scented bar soap.
b. Clear Liquid soap
c. Hair and body wash
o Salient Features:
a. Claim of Purity (99.25% Pure)
b. Floats in Water
o Marketing Strategies:
a. Mass mailing enclosing samples of Ivory.
b. Letters, sent to Women aimed at making them
“Patronesses”.
c. Ads in Magazine, targeted at Women in their 30s.

18.  Tide:
o Product Details:
a. New pulverized soaps as laundry products
b. Marketing line of laundry detergents
o Salient Features:
a. Class cleaning performance of laundry products
b. Green good house keeping seal for
c. “Tide Coldwater”
o Marketing Strategies:
a. Catchy logo with dayglo colors.
b. Compatibility of tide with top loading washing
machine.

19.  Gillette:
o Product Details:
a. Men’s safety razors and personal care products
b. Double-edged safety razors
o Salient Features:
a. High Performance Razors
b. Competitive Edge
c. Designed for men’s grooming
o Marketing Strategies:
a. Celebrity Endorsements such as Roger Federer in
Gillette Fusion products.

20. Major Competitors

21. Current Standing in Global Market
 Annual Revenue
 Developing Markets

22. Recap
 Introduction
 History
 Present Scenario
 2010 P&G statistics
 Market Distribution
 Ingredients of P&G’s success
 S.W.O.T. Analysis
 P&G’s Brand Marketing
 Major Competitors
 Current standing in global market

23. Disclaimer
Created by JINESH SURANA,
VNIT Nagpur during a marketing
internship by
Prof. SAMEER MATHUR,
IIM Lucknow.