Procter and Gamble: Marketing Capabilities HBS case analysis

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Procter & Gamble Marketing Capabilities

Transcript of Procter and Gamble: Marketing Capabilities HBS case analysis

Procter & GambleMarketing Capabilities

Procter and Gamble

Company : Procter and Gamble ( P&G )

Overview : Procter & Gamble Co., also known as P&G, is an American multinational

consumer goods company headquartered in downtown Cincinnati, Ohio,

United States.Products : Products include cleaning agents and personal care products. Before the

sale of Pringles to the Kellogg Company, its product line included foods

and beverages.

Founders of Procter & Gamble

Mission Statement : Who we are ? What We Value ?

Vision Statement : What we want to become?

Strategy: How we will achieve our vision.

Goals & Objective: How we gauge our degree of success ?

Mission

To Provide branded products and services of superior

quality and value that improve the lives of the world’s

consumers, now and for generations to come.

Vision

To be the best consumer products and services company in

the world

Values

Integrity

Leadership

Ownership

Passion of winning

Trust

Products

Brands

Billion-Dollar Brands Half-Billion-Dollar Brands

Always Ace

Ariel Bold

Bounty CoverGirl

Braun Pearl

Crest Safeguard

Duracell Tampax

Iams SK-II

Gillette Cascade

Olay Asacol

Oral-B Rejoice

Timeline

Case Facts

Case facts

Global Leader in Branded Consumer Goods

Has two Dozen Billion dollar brands known worldwide

First company to advertise directly to consumers.

In 2010, Total sales = $78.94 bn

Net Income = $12 bn

Market capitalization = $186.63 bn

Largest spending company on R&D of their products.

Strength Weakness Opportunities Threats

Large Scale

Strong Branding

Diverse Brand

Portfolio

Customer Loyalty

Beauty and Health

products are only for

women.

Doesn’t Divest its

weak or poor brands.

Technological

advancement

Pursue growth

overseas

Doubled its

environmental goals

Acquisitions.

Many substitute are

available

Cut throat competition

Competitors are making

their product portfolios

diverse

AT

Sales

Organizational Structure

Organizational Structure

Market Development

Organizations(MDO).

Global Business Services(GBS).

Corporate Functions(CF).

Global Business Unit(GBU).

Market Development Organization(MDO)

To better connect and understand their

consumers.

Deliver a stronger marketing campaign.

Served as Core function in observing

consumers and applying that information

to create a suitable marketing strategy.

Global Business Services(GBS)

Served to deliver business technology.

Focused more deeply on providing services

that would built consumer loyalty.

Connects the business to the rest of the

world allowing the partnership with other

companies.

Promotes efficiency in operation and their

work force.

Corporate Functions(CF)

Purpose was to balance both its

functional operation and manage to stay

on top of the competitions.

Played an important role in keeping

P&G’s reputation as the leader with best

products to sell

Global Business Unit(GBU)

Focused on making more of a global move responsible

for developing business strategies that worked towards

emphasizing their main global brands.

This unit is divided into 5 smaller units.

• Baby/Family Care

• Fabric/Home Care

• Snacks and Beverage

• Health Care

• Beauty/Feminine Care

Advertising at

The First product to

be advertised to consumer directly.

Advertising

P&G reconsidered its advertising strategies

to better meet the company’s global market

and consumers.

It is divided into more types:

• Celebrity Endorsements

• Sponsorships

• Digital Marketing Campaigns

Celebrity Endorsements

Sponsorships

Digital Marketing

BeingGirl.com

• Launched in 2000

• By 2007, site was translated for 49

countries.

• Related to teenage girl issues.

1st Mobile marketing Ad Campaign launched

for

Introduction of new TV Series

targeting African American

Women by

“The Man Your Man could

smell Like.”- Ad Campaign

Campaign for 2010 Winter Olympics.

In 2005,campaign for TIDE

Conclusion

Never give your consumer a product based reason to switch away from your

brand.

Think of every brand of P&G, and treat every brand that we have, as though it

were our only brand.

Always determine whether a product innovation is brand-specific or generic.

Competition will always follow your technology, not your brand.

After you have defined your options, always test your worst-case scenario in

the market. If it doesn’t work than you know what’s the worst thing going

to happen.

DISCLAIMER

Created by Parth Desai, National Institute of Technology, Agartala,

during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.