Roxene EdwardsMPSM 600October 15, 2016

Proctor & Gamble’s Continued Marketing Success

Proctor & Gamble● Est. 1837 by William Proctor (candlemaker) & James Gamble (silkmaker)

● Cincinnati, OH headquarters

● “Touching lives, improving life for today and for generations to come”

● Has innovated & launched revolutionary products over the last 150 years

● Consumer Goods; 4 product categories

○ Beauty

○ Feminine & Baby Care

○ Health & Grooming

○ Fabric & Home Care

P&G’s Most Trusted BrandsBeauty Baby, Family &

Feminine CareFabric &

Home CareHealth &

Grooming

● 4.8 billion consumers in 180 countries

● 121,000 employees in 80 countries; 1,000 sciences PhDs

● 25 billion dollar brands

● Spend $2 billion annually on R&D

● Spend more than $100 million on more than 10,000 formal consumer research & generates 3 million consumer contacts via its e-mail & phone center

“At P&G, the consumer is at the center of all we do”

Proctor & Gamble By the Numbers

6 Keys to P&G’s Success1. Product Innovation

2. Quality Strategy

3. Brand Extension Strategy

4. Multibrand Strategy

5. Manufacturing Efficiency & Cost Cutting

6. Brand Management System

1. Product Innovation● P&G values product innovation; “branded science company”

● Employs 1,000 PhDs; more than Harvard, MIT & Berkeley combined

● Applies for about 3,800 patents each year

● Recent innovations include:

○ Febreze - odor-eliminating fabric spray

○ Dryel - a product that helps “dry-clean” products at home in the dryer

2. Quality Strategy● P&G continually evolves & reformulates products & their quality

Pantene 2-in-1 Shampoo & ConditionerTide Pods

3. Brand Extension Strategy ● P&G produces brand product in

multiple shapes & sizes, providing options for everyone

○ Prevents competition from moving in on

unsatisfied consumer needs

● Use strong brand identity to launch new product lines

○ Ex. Old Spice

4. Multibrand Strategy

● P&G markets several brands in the same product categories to leverage multiple target consumer groups

5. Manufacturing Efficiency

● P&G is constantly improving it’s production operations○ Keep costs to minimum; some

of the lowest in the industry○ Makes it possible to offer low

prices for premium product

6. Brand Management System

● P&G originated the “brand management system”

● System in which one executive is responsible for each brand○ Executive has volume & profit

responsibility

Relation to Marketing Principles

4 Approaches to Marketing Research ● Prospector

○ innovator● Analyzer● Reactor● Defender

Brand Architecture● Branded House● Subbrands● House of Brands

○ “allows firms to clearly

position brands on functional benefits and to dominate niche segment”

Challenges

● Too many products in the same product category can create competition within brands

● How will they continue to keep costs at a minimum?

● Where to go when you’re at the top?

● Enhance digital strategy○ Not many consumers

know they can purchase directly from P&G’s website

Opportunities

Questions?

How would you apply P&G’s strategies to fashion companies?

How can P&G leverage digital & social media to reach new/existing consumers? Is it necessary?

What are other challenges or opportunities you identify?

ReferencesAaker, D. A., & Joachimsthaler, E. (2000). The brand relationship spectrum: The key to the brand architecture challenge. California management review,42(4), 8-23.

Kotler, Philip. & Keller, Kevin Lane. (2016). Marketing Management. Pearson 15th ed.

Our Brands. Proctor & Gamble. (2016). Retrieved From http://us.pg.com/our-brands

Who We Are. Proctor & Gamble. (2016). Retrieved From http://us.pg.com/who-we-are