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CASE STUDY
PROCTER AND GAMBLE: MARKETING CAPABILITIES
CASE ANALYSIS BY :NISHANT RAJIIT ROORKEE
UNDER THE GUIDANCE OF
PROF. SAMEER MATHURIIM LUCKNOW
PrOCTER AND GAMBLEGlobal leader in FMCG sector
More than 2 dozen $1 billion brands
First company to directly advertise to its consumers in 1880s
BRAND PORTFOLIO
Billion Dollar Brands
Organizational Control System
Market Development OrganizationsGlobal Business ServicesCorporate FinanceGlobal Business Units
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WHAT IS THE PRESENT SITUATION ??
Situational Analysis(1)P&G : Global brand with strong marketing capabilities
SITUATIONAL ANALYSIS(2)Dominates FMCG sector through various sub-brands and a huge brand portfolioStrong focus on Consumer Research,innovation,marketing and advertisement
SITUATIONAL ANALYSIS(3)
In 2010,P&G had a market capitalization of $186.63 billion with net income of $12.74 billion and sales of $12.74 billion
P&G showed a global domination with more than 42% sales from North America,21% from Western Europe and 15% from Asia
ORGANIZATIONAL STRUCTURE : LAG OR lEADS
P&G was founded by William Procter and James Gamble as a small family run business selling soaps & candlesHISTORY(1)
HISTORY(2)Started its international expansion in 1930s
1945-1980 : Entered the markets of Latin America , Western Europe and Japan
1957:Charpin Paper Mill acquired and 1963 : Acquired Folgers Coffee
1980s : Extensive global expansion
HISTORY(3)1991: P&G became USs top cosmetic company with Noxell acquisition2005 : Gillettes acquisition made P&G top consumer company for $57 billionCompany stocks lagged and senior managers left at that time
P&G LOGO EVOLUTION
WHY STUDY THIS CASE ?
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CASE OBJECTIVES :
STUDY OF USE OF INTEGRATED MARKETING CHANNELS
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CASE OBJECTIVES :
UNDERSTAND THE MARKETING STRATEGIES USED BY P&G
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CASE OBJECTIVES :
TO UNDERSTAND THE SECRET SAUCE TO MARKETING SUCCESS:INNOVATION
INNOVATION :THE SECRET SAUCE(1)Year 1887 marked the establishment of earliest marketing division
Replaced the existing 4 geographical units with Global Business Units
GBU : A three team supported unit consisting of 1.Venture teams 2.Business Development Organization 3.Market Development Organization
Company named the strategy : Connect to Develop
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INNOVATION :THE SECRET SAUCE(2)50% new products in 90s developed in Labs and rest with non-P&G scientists and engineers
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Products like Swiffer Duster,Olay Regenerist,Crest Whitestrips etc came into existence
MARKETING AT P&G
MARKETING STRATEGY (1)Year 2000 : Lafley took over as the new CEO of P&G
Set up of a new product team..and the focus shifted to product design
THE NEW PRODUCT TEAM(1)
Claudia Kotcha named as the VP for design innovation
Jim Stangel appointed as the new CMO and shifted emphasis to consumer centric marketing approach
THE NEW PRODUCT TEAM(2)
Aim was to design the purchasing experience i.e. the first moment of truth
P&G design board created on lines of Nike & Mattel
THE NEW PRODUCT TEAM(3)
Focus laid on Return on MARKETING INVESTMENT(ROMI)-a technique to evaluate the effectiveness of marketing strategies)
Surveys designed, data collected and metrics developed to measure brand loyalty and customer relationships
CONSUMER FOCUS
P&G interacts with more than 5 million customers over 100 countries and conducts more than 20,000 research studies investing more than $500 million to execute these studies
CONSUMER FOCUS Key research outputs :
Advocacy(word of mouth) was the most powerful marketing strategy as observed under VocalPoint campaign
Neuromarketing was the new research area identified
ADVERTISINGMedia neutral ideas used could be translated across a range of media
In 2011,majority of the advertising was still done through television
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A good brand equity is that in which both the consumers and the organization feel inspirational
LEADERS OF OLYMPIC SPONSORSHIPS
SPONSORSHIPS
P&G has used sponsorships to market its product very well. It has sponsored various award shows, games and mega events across the globe
CELEB ENDORSEMENTS
CELEB ENDORSEMENTS
MARKETING DURING RECESSION
During 2009,the time of recession, P&G maintained its budget for marketing . It resorted to coupons and in-store promotional campaigns to lure in consumers during recession
DIGITAL MARKETING AT P&GEarliest activities limited to websites of brand but it was only after launch of pampers.com P&G was able to provide an interactive platform.
Beinggirl.com was P&Gs unique digital marketing strategy to interact with Girls
Mobile marketing became an integrated part of P&Gs digital-marketing strategy. Crest Whitening Plus marked an entry for P&G in the mobile marketing place.
Because.
P&G won accolades for its TV series My Black is beautiful and this digital marketing strategy grew its sales by 20% in first half of 2010.
P&Gs OLD SPICE CAMPAIGN
P&Gs OLD SPICE CAMPAIGNCampaign went viral on Youtube and adding as many as 94,000 followers on twitter marking a shift for P&G from mass marketer to one-on-one digitized marketer
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SIGNALBringing powerful digital leaders together
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SOCIAL MEDIA Campaigns
SOCIAL MEDIA CAMPAIGNS
Brand PHILANTHROPY
Brand Philanthropy helps in creation of good image about the brand as was the case in TIDE whose sales got boosted after Katrina campaign
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ANALYSIS OF P&Gs ICONIC BRANDS
IVORY-MARKETING IN A RETRO STYLE
IVORY was the first directly marketed product to consumer by P&G. The soap has seen different types of marketing from neo-classical marketing to modern marketing.
TIDE
TIDE was a breakthrough product and passed several tests including the risk of P&G brands cannibalization
The risk of launching the product two year early bore heavy returndsin terms of greater market share.
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PAMPERS brand that created the diaper market
P&G has managed to keep the costs of diapers low while it has launched Luvs diapers for its premium customers
CREST-The FIRST FLOURIDETOOTHPASTE
P&G worked with American Dental Association
Fluoride toothpastes got generic status in 80s and this made it to slip out of the market
P&G responded to the threats by introducing Crest Whitestrips
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ALWAYS
Always was P&Gs first global brand.Always Infinity was another remarkable example of P&Gs innovation
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SALES
High potential for P&G in developing countries market for growth
SWOT ANALYSIS: STRENGHTS Strong focus on R&DStrong Brand PortfolioStrategic AcquisitionsConsumer FocusStrong Marketing Team
WEAKNESSES
Increasing instances of product recalls
Poor Website
Environmental Issues
OPPORTUNITIESGrowing Indian FMCG market
Expansion especially in developing markets
Growing interest of people in green products
THREATS
Creation of generic product might lower its value
Change in younger generation preferences
Global economic conditions
Intense competition in industry
Case BasicsSituational AnalysisMarketing ChannelsMarketing TechniquesSWOT Analysis