PowerPoint Presentation

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

7

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 ?

17

CASE OBJECTIVES :

STUDY OF USE OF INTEGRATED MARKETING CHANNELS

18

CASE OBJECTIVES :

UNDERSTAND THE MARKETING STRATEGIES USED BY P&G

19

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

21

INNOVATION :THE SECRET SAUCE(2)50% new products in 90s developed in Labs and rest with non-P&G scientists and engineers

&

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

30

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

42

SIGNALBringing powerful digital leaders together

43

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

46

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.

49

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

51

ALWAYS

Always was P&Gs first global brand.Always Infinity was another remarkable example of P&Gs innovation

52

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