P&G is a global consumer goods company known for iconic brands like Tide, Crest, and Pampers. Through acquisitions and innovation, P&G expanded globally from 1945-1980. More recently, P&G focused on addressing brand dilution, product design, and rivals through appointing a chief marketing officer, creating a new design unit, and focusing on functionality and price. P&G also pioneered new marketing metrics, psychological consumer research, celebrity endorsements, digital/social media campaigns, and building on strengths in R&D to evolve as the world's largest marketer. However, P&G still faces challenges in winning consumers in sophisticated global markets.

1. Harvard Business School Case
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2. Who
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3. Global Leader in Branded Consumer Goods.
Iconic category defining products.
Two – dozen $1 billion brands known world-wide.
First to Advertise Directly to Consumers.
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5. 1945-80…Expanded in Latin America, Western
Europe, Japan.
Kept on acquisitioning companies such as
Charmin Paper Mill, and established its presence
in different markets.
Acquisition of Gillette made them top consumer
good company.
Innovation in products kept them blooming.
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6. Sales in Different Regions
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Sales
North America
Western Europe
Asia
Middle East
Europe, Africa,etc
Latin America
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7. Exhibit 1
• Ivory soap – its purity says it all. P&G spent about
$3 million on the promotion
• Tide - Originally developed during the height of
World War II, Tide (called Product X) was not just
a new soap, but a new synthetic formula for a
detergent—a breakthrough product .
• Tide’s two-year lead on the competition made
speed-to-market an ingrained imperative for the
firm, having an impact on all aspects of the P&G
system
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8. Exhibit 1
• Pampers - A blockbuster brand that almost single-
handedly created the disposable diaper category for
the mass market.
• Luvs, P&G’s “premium” disposable diaper
brand, gave P&G the chance to offer additional
features, but also forced the company to learn several
difficult lessons as the market became commoditized
and competitors matched Luvs’ premium feature
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9. Exhibit 1
• Crest - The first toothpaste with fluoride, Crest was also a
category-defining product that had gained iconic status along
with P&G’s other household names.
• Crest’s brand franchise beyond toothpaste, with Crest
Whitestrips and, through an acquisition, the Spinbrush, both in
2000.
• Always - Always sanitary pads, launched in 1984, became
P&G’s first truly global product, the first feminine hygiene
product ever marketed to consumers.
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13. Innovation and R&D
• Toothpaste with Fluoride (Crest)
• Anti-dandruff Shampoo (Head & Shoulders)
• Disposable diapers (Pampers)
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21. but…
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22. Issues to be addressed
Brand Dilution
Product Design
Increasing Rivals
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24. 3 changes to the company
Jim Stengel as chief marketing officer
Creating new design unit separate from
P&G’s other business units
Focus on product functionality and price
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25. What did design unit did ?
 Design-Tasting, design case studies for top 200
executives.
 P&G design board similar to Mattel and Nike
 Helping consumers imagining the functions of
products.
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26. Two
moments of
truth
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27. oFirst Moment of Truth – On the store
shelf
oSecond Moment of Truth – Decision of
customers on satisfaction on product’s
delivery
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28. Are they going to
measure the return on
marketing investment in
same traditional way in
the era of T.V. ads and
Direct Communication?
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29. surely not …
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30. SettingNew Metrics
Partnered with firms such as Project Apollo, a
joint venture between media and marketing
Research firm Arbitron Inc. and VNU, the
Dutch media company that owned Nielsen.
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31. Setting New Metrics
They collected tracked the media habits of 30,000
households representing 70,000 consumers.
The data collected, along with information about
online usage and grocery purchases, and frequent
surveys of attitudes and lifestyle choices, helped
subscribers such as P&G understand its
marketing tactics’ performance.
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32. Setting New Metrics
Measuring brand loyalty and Customer
relationship.
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36. Commitment to Consumers
Rigorous product and market testing
Process-oriented
Over 20000 research studies, invested $500
million
Gathered data on consumer’s habits and
practices who purchased P&G products.
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39. Psychological Surveys
Accurately measured the consumers need
Successfully identified the consumer’s need
Delivered the products satisfying the
consumers globally.
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40. EEG technology measured the electrical
activities in brain as subject were exposed to
the commercials.
This approach held that feelings affected
decisions and human behaviour.
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41. Example-
Pantene
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42. 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 same study found that users of a new
version of Pantene ―reported more joy than
those in the control group.‖
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43. What kind of
advertisement
did P&G did?
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45. P&G leading in advertisement
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46. However they face challenges in
wining consumers in
sophisticated globalizing market
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49. • P&G, a U.S. Olympic team sponsor for the 2010
Games, became a worldwide sponsor, exposing to
emerging markets.
• National Football League (NFL) sponsorship gave
consumers opportunities to engage with the
NFL, ―just for choosing P&G brands,‖
• NFL’s Play 60 initiative, a national youth health and
fitness campaign focused on fighting childhood obesity
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50. • P&G’s acquisitions of several beauty companies in
the 1990s had brought a number of celebrity
endorsers into the P&G stable, including CoverGirl
spokespersons Christie Brinkley, Drew
Barrymore, Ellen DeGeneres, and Queen
• Taylor Swift also joined the company for the
CoverGirl brand.57 Eva Mendes and Naomi Watts
were announced as new spokesmodels for Pantene
shampoo in the spring of 2011
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51. • The launch of pampers.com, served as an interactive
forum.
• BeingGirl.com, launched in 2000, provided
information and expert advice on embarrassing
issues.
• P&G launched its first mobile marketing ad
campaign in 2006 to promote Crest Whitening Plus
Scope toothpaste. 51

52. • P&G’s line of ―My Black is Beautiful‖
products, targeting African American
women, introduced two web series in 2010 to
showcase its products.
• Old Spice television commercial and YouTube
sensation, ―The Man Your Man Could Smell Like,‖
gave P&G its greatest exposure in the online
community in 2010 52

53. • 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.
• Manofthehouse.com, which featured
household advice for men, including tips.
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57. • P&G continued to push toward reaching 5 billion
consumers served worldwide, its evolving marketing
capabilities took center stage.
• Digital environment with efforts like ―The Man Your
Man Could Smell Like‖ and Manofthehouse.com
• Emotional efforts such as the ―Thank you, Mom‖ and
―Loads of Hope‖ campaigns.
• Building on its strengths in R&D.
• Evolve and innovate as the world’s largest marketer.57

58. DISCLAIMER
Created by Ritesh Ghorse, PICT Pune, during
a marketing internship, by Prof. Sameer
Mathur, IIM Lucknow.
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59. END 59