Proctor & Gamble Marketing Capabilities

Procter and Gamble: Marketing Capabilities

-By Akhil Vempali, NSIT

Some facts about P&G:➔ P&G was a global leader in branded consumer goods.➔ It has 22 >$1 billion brands as of 2017.➔ P&G is the first company to market directly to

customers.➔ P&G was a seasoned marketer with strong consumer

research, evolving strategy, a powerful innovation network and the world’s largest financial commitment to advertising.

P&G’s financial commitment to advertising.➔ Advertising budget (2010)- $8.68 billion➔ Sales (2010)- $78.94 billion➔ Net Income (2010)- $12.74 billion➔ Market Capitalization (2010)- $186.63 billion

COMPANY HISTORY

William ProctorJames Gamble

Founded on 31st October, 1837 by-

1945-1980: Global expansion

Western Europe Latin America

Japan

Global Expansion➔ Introduced several new products lines in the market, such as

Tide.➔ These product lines were incredibly successful.➔ Business started in Mexico, then Europe and Japan.➔ By 1980, the company was doing buisness with 23 different

countries all over the world.

What is the issue?

How P&G will execute the company’s marketing strategy?

Marketing strategy of P&G

Customer Relationship Management(CRM)

Customer Relationship Management➔ CRM is concerned with creation, development and enhancement

of individualised customer relationships with carefully targeted customers and consumer groups.

➔ Focus of CRM is on creating value for consumer and the company in the long run.

➔ Purpose of CRM: It enables organisations to gain “competitive advantage” over competitors in similar product categories.

➔ P&G wants to satisfy the consumer in a superior way to win the competition and achieving leading positions in the market.

➔ To acquire knowledge about consumer based on the company’s CRM model of marketing, P&G conducted monthly analysis of Nielsen data, regularly checking the market to get “the feel of the store” and learn about the changes in consumer behaviour to mold their product in such a way that it fits the consumers need and attitude.

➔ Successful companies are better educated about consumers, competitors and distributors than their rivals.

The Marketing Strategy➔ Heavy Investment in advertising.➔ Customized advertisements by region.➔ TV Ads focus on the functionality and design of the products

most.➔ TV ads also try to connect with the consumer on an emotional

level.➔ P&G also uses sponsorship and celebrity endorsements to

connect with its customers .

➔ The advertisement focuses on showcasing the contribution of mothers to the success of the athletes.

➔ In this way the company is trying to create an emotional connection with its target audience.

➔ In this case it’s the youth and the parents as well.

➔ Notice how the stains were removed as soon sa the product swooshed across the fabric.

➔ The brand is trying to show the functionality of the detergent.

➔ “Zaad nahi aadha lage gaa” showed that the brand was focusing on the budget consumer in that particular region.

➔ At the end of the advertisement the product itself was revealed with some special effects so that the consumer can have a lasting memory of the product.

STRENGTHS

➔ Strong focus on research and development ➔ Leading market position ➔ Strong brand portfolio ➔ High-quality product, quality processes and procedures.

WEAKNESS

➔ Not enough make a distribution channel. ➔ Lack of canning or packaging. ➔ Undifferentiated products or services with other

competitor

OPPORTUNITIES

➔ Brand which it concentrate for a healthy oral. ➔ Move into new market segment that offer improves profit. ➔ A developing market such as in the Internet. ➔ Future growth plans ➔ Expansion in developing markets

THREATS

➔ Too many competitors in this industry. ➔ Price wars with other competitors. ➔ Not patentable, competitor can attempt to duplicate a

product. ➔ Global economic conditions.

Potential outcomes Since the company has the mission to provide branded products and services of superior quality and value that

improve the lives of the world’s consumers. Therefore, the company should develop branding strategies to position their

products as ones have high perceived quality.In addition, since market values acquisitions that Procter & Gamble performs, in the future, the company may conduct other

mergers and acquisition that will strengthen the corporate brand image as the provider of home and personal care

products.

Company Structure

Corporate Functions (CF)

Global Business Services (GBS)

Market Development Organizations

(MDO)Global Business

Units (GBU)

Market Development Organizations (MDO)

➔ To better connect with their customers.➔ Deliver a strong marketing campaign.➔ Served as a core function in observing consumers and

applying that information to create a better marketing strategy.

Global Business Services (GBS)

➔ Serving to deliver business technology.➔ Focused more deeply on providing services that would

build consumer loyalty.➔ Connects the business with rest of the world allowing

partnerships with other companies.➔ Promotes efficiency in operations.

Corporate Functions (CF)

➔ Its Purpose was to balance both its functional operations and manage to stay on top of competition.

➔ Played an important role in keeping P&G’s reputation as the leader of having the best product line.

Global Business Units (GBU)

➔ Focused on making marketing strategies of the brand more global than local.

➔ Developing in making the brands more global.➔ Achieved their goals by making their marketing

strategies structured, and creating a strong brand image at a global level.

➔ Also helps in making brand strategies of local markets standardized.

THE GOAL

➔ To be market leader in every brand segment.➔ To venture into new market segments and also create

market segments that better serve customer needs.➔ Improve their global leadership potential.➔ Connect to customers in a more better way to create

products that fulfill customer needs and to deliver better service.

➔ Use the company's structure to make operations more efficient so as to decrease its operational costs hence increase profits.

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