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P&G - A Marketing Pioneer

This presentation is about the American goods sales company Procter and Gamble and its marketing capabilities.

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P&G - A Marketing Pioneer

  1. 1. A Pioneer in Marketing Procter & Gamble Co
  2. 2. Procter & Gamble ✓ Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company founded by William Procter and James Gamble, both from the United Kingdom. ✓ Headquarters : Cincinnati, Ohio, United States ✓ Founded : October 31, 1837, Cincinnati, Ohio, United States ✓ Current CEO : Alan G. Lafley ✓ Subsidiaries : Wella, Braun, Max Factor, Clairol, Gillette India Ltd., more ✓ Founders : James Gamble , William Procter Procter & Gamble
  3. 3. Mission ★ To Provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. Vision ★ To be the best consumer products and services company in the world. Values ★ Integrity ★ Leadership ★ Ownership ★ Passion for winning ★ Trust
  4. 4. HARVARD BUSINESS SCHOOL CASE Products and Brands
  5. 5. Case Facts ★Global Leader in Branded Consumer goods ★Has 2 dozen $1bn brands known worldwide ★First company to advertise directly to consumers. ★2010, total sales=$78.94bn ★Net Income=$12 bn ★Market capitalization=$186.63bn
  6. 6. SITUATION ANALYSIS A consumer goods company with good background enters new market with a mission and decisions. Takes scientific approach to connect with people by bringing in a design unit as a part of marketing strategy. Shift from product based marketing to consumer-centric marketing and follows Communication through direct & digital marketing & sales promotion Tries to move forward with an aim to reach 5 billion new consumers and finally is able to CONNECT and DEVELOP
  7. 7. Objectives of the Analysis ★ To explore the design, implementation & interpretation of product development & marketing strategies implemented by P&G. ★ Evaluate primary and unique communication strategies and money spending by the company. ★ The company’s efforts to ultimately fulfil its vision: Connect & Develop
  8. 8. Innovation and R&D: P&G Marketing’s Secret Sauce
  9. 9. ★In 1887 first analytical lab was set up for the company, laying a professional R&D division: CREST toothpaste was its first product ★Under CEO Durk Jager, P&G reorganized that net sales slowed to 2.6% growth from the previous year. So, P&G cut 15,000 staff and promised to deliver more innovation. ★14 Seven global business units (GBUs) based on product categories replaced the company’s four geographic business units. ★Jager called for 50% of innovation and new products to come from P&G’s network of labs, and 50% through the labs.
  11. 11. ★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. ★Tide was offered as the premium brand; next came Cheer, which “cleaned colors safely”; Gain “had fresh scent”; at the bottom sat Oxydol, which “contained bleach.” ★Jim Stengel and Claudia Kotchka became chief marketing officer (CMO) and vice president for the new design unit, separate from P&G’s other business units. ★Kotchka hosted a “design tasting,” featuring design case studies for P&G’s top 200 executives; she created a P&G design board; and she created the Clay Street Project, bringing cross-functional teams from their jobs elsewhere across the firm’s global footprint to Cincinnati for 10 weeks to create new brands based on design. ★The new emphasis shifted the company toward a more consumer-centric marketing approach as well. HARVARD BUSINESS SCHOOL CASE
  12. 12. Commitment to Consumers
  13. 13. ★P&G invested more in market research than any company in the world, interacting with more than 5 million consumers in almost 100 countries. ★Innovative approaches to consumer engagement led to new marketing and promotional opportunities: For example, VocalPoint: P&G’s word- of-mouth program that enrolled more than 600,000 women to pitch its products. ★In June 2010, P&G announced a partnership with Tobii, a leader in eye tracking, which objectively identified visibility and attention that consumers gave to packaging, displays, and advertising. HARVARD BUSINESS SCHOOL CASE
  14. 14. ★Neuromarketing also played an increasingly important role. P&G employed psychological surveys to measure mood and electroencephalography (EEG) technology to measure electrical activity in the brain as subjects were exposed to commercials. How its customers felt—not about a product such as Pantene, but about having a “bad hair day.” ★The psychological surveys discovered that women felt less “hostile,” “ashamed,” “nervous,” “guilty,” or “jittery,” depending on the hair product they used, while at other times they said they felt more “excited,” “proud,” and “interested.” The HARVARD BUSINESS SCHOOL CASE
  16. 16. ★P&G had been a marketing trailblazer from the outset: Ivory, the first product to be advertised directly to consumers and sold directly to them. Other brands such as Crisco, Camay, and Oxydol soon followed. ★In 2002, P&G reconsidered its advertising strategies to better meet the company’s global markets and consumers. P&G began by first developing a “media neutral” idea that could be translated across a range of media. With Tide, for example, the idea was that the detergent “works wonders on the fabrics that touch your life.” ★Sponsorships : For example, P&G, a U.S. Olympic team sponsor for the 2010 Games, became a worldwide sponsor, and for the 2012 winter games to be held in Russia and the 2016 summer games in Brazil. ★Celebrity endorsements: CoverGirl spokespersons Christie Brinkley, Drew Barrymore, Ellen DeGeneres, and Queen Latifah. Tennis star Roger Federer was featured in Gillette Fusion Products ads in the U.K. in 2010. HARVARD BUSINESS SCHOOL CASE
  18. 18. Customer knowledge Spends more Than $100 million on over 10,000 Formal consumer research projects, Generating more than 3 million Contacts. Product Innovation Invests $2 billion Annually in R&D and employs more Than PHDs than Berkeley ,Harvard And MIT combined.3800 patents Annually . Ex- Dryel ( helps “dry cleaning” at home, Swifter , Febreze.
  19. 19. Quality Strategy Designs products With above average quality & continuously Improving them . Ex- Pampers Rash Guard ,Tide compact detergents. Brand Extension Strategy Produces Brands in several sizes & forms -gaining More shelf space & preventing Competitors from moving to satisfy Unmet market needs.
  20. 20. “If You Go back at Procter And Gamble, and in a lot of the industry, we often thought of our brands in terms of functional benefits. But the equity of great brands has to be something that a consumer finds inspirational and an organisation finds Inspirational.” - Jim Stengel, CMO, P&G
  21. 21. Introduction Mission and Vision Case Facts Situation Analysis Objectives Innovation and r&d Marketing at P&G Commitment to consumers Advertising Strategies How is P&G Different
  22. 22. DISCLAIMER Created by Rishabh Singh, IIT (ISM) Dhanbad, during a Marketing Internship under the guidance of Prof Sameer Mathur, IIM Lucknow. Prof. Sameer Mathur IIM Lucknow Rishabh Singh IIT (ISM) Dhanbad