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P>ouching Lives,Improving Life
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WHAT IS P&G?
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American multinational consumer goods company
Global leader in branded consumer goods,Known for iconic category defining products
More than 50 brands in 6 business segments
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Founded by William Procter & James Gamble in 1837
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WHAT IS P&G’S PURPOSE?
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Improve lives of its customers through continued innovationTo reach
MORE CONSUMERS, IN MORE PARTS OF THE WORLD, MORE COMPLETELY
MISSION
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BRANDS UNDER VARIOUS SEGMENTS
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WHERE DOES P&G STAND?
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BILLION DOLLAR BRANDS
HALF-BILLION DOLLAR BRANDS
ACTIONELLALWAYSARIELBOUNTYBRAUNCHARMINCRESTDAWNDOWNYDURACELLFEBREZEGAINGILLETTEHEAD&SHOULDERSIAMSKOLESTONOLAYORAL-BPAMPERS
ACEASACOL
BOLDBOSS FRAGRANCE
CASCADECOVERGIRL BLAST
DASHDOLCE&GABBANA FRAGRANCE
EUKANUBAGILLETTE VENUS
HERBAL ESSENCENYQUIL
PEARLPRILOSEC
REJOICESAFEGUARD
SK-IISWIFFER DUSTERS
TAMPAX
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34%
14%4%30%
18%
% OF NET SALES
Beauty&Grooming Health Care Snacks&Pet Care
Fabric&Home Care Baby&Family Care
42%
21%
15%
13% 9%
% OF NET SALES
North AmericaWestern EuropeAsiaCentral&Eastern Europe,Middle East,AfricaLatin America
SEGMENTWISE DISTRIBUTION
REGIONWISE DISTRIBUTION
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OBJECTIVES OF THE CASE STUDY
EXPLORE1. P&G’s powerful innovation network , strong consumer
research & evolving market strategy2.Expansion into new lines of business3.P&G’s transition from early marketing campaigns to recent
experiments with digital media
THROUGH AN OVERVIEW OF P&G’S ISSUES OF FOCUS
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ISSUES OF FOCUSGrow core brands and categories with an unrelenting focus on innovation
Build business with unserved & underserved consumers
Develop faster growing, higher margin businesses with global leadership potential
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1. GROWING CORE BRANDS THROUGH INNOVATION & R&D
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(i) 7 Global Business Units(GBUs) based on product categories replaced company’s 4 geographic business units
(ii) 3 New teams supported GBUs
• Innovate in existing categories
BUSINESS DEVELOPMENT TEAM
• Acquire brands in new areas
• Nurture ideas created by business development team, not relating to existing brands
VENTURE TEAM
• Intensive market research to ensure global products’ success in local markets
MARKET DEVELOPMENT ORGANISATION
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(iii) CONNECT AND DEVELOP
INNOVATION50% P&G’s Network of labs
50% Partnership & connections with non-P&G scientists and engineers
“Best ideas, wherever they
come from should rise to the surface”
Identification of proven technologies, packages, & products that could be improved, scaled up, and marketed on its own or through partnerships
•Build and maintain external connections with university & industry researchers & supplier networks
Network of 70 technology entrepreneurs
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2. REACHING THE UNSERVED & UNDERSERVED CONSUMERS
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CONSUMER CENTRIC MARKETING APPROACH
Create more DIRECT, ONE-TO-ONE relationships with target audiences
Deeper understanding of
WHO THE PRODUCT IS FOR?
WHAT IS DIFFERENT ABOUT THAT CONSUMER?
HOW THAT CONSUMER EXPECTS TO USE THE PRODUCT?Interaction with
more than 5 million
consumers in 100 countries
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COMMITMENT TO CONSUMERS
Consumer Research Methods
QUALITATIVE
• Focus group discussions
• Consumer interviews at home
• In-context visits
• In-store interviews
QUANTITATIVE
• Large-scale studies of habits & practices of consumers
• Blind tests
• Concept & Use tests
NEUROMARKETING- Psychological surveys to measure mood & ECG technology to measure electrical activity in the brain as subjects were exposed to commercials
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3. ENSURING GLOBAL PRESENCE
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MULTIBRAND STRATEGY
Manage brands across a category with each getting individual support
& satisfying a segment of the market
EXAMPLE- P&G’S Detergent category
TIDE-Premium brand
CHEER- “Cleaned colours safely”
GAIN- “Had fresh scent”
OXYDOL- “Contained Bleach”
LEVERAGING P&G BRAND TO DRIVE SALES TO ITS SUB-BRANDS
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USE OF DESIGN AS A COMPLEMENT TO P&G’S FUNCTION DRIVEN PROCESS
Creation of a new design unit with Claudia Kotchka as vice
president for design innovation
Intensified focus on design along with long-standing focus on
product functionality and price.Bring design to every step of product development
Help consumers RECOGNISE, UNDERSTAND & IMAGINE functions of a product
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ADVERTISINGDeveloping ROBUST BRAND IDENTITY for its portfolio of consumer goods through long standing partnerships with advertising agencies
Developing a “ media neutral” idea that could be translated across a range of media
Focused on product superiority & functional benefits
Advertising campaigns customised by region
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SPONSORSHIPSNational Football League
US Olympic team sponsor for 2012 games, raising its visibility in
emerging markets
Sponsored Sebastian Vettel, the “youngest ever” Formula one
champion
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CELEBRITY ENDORSEMENTS
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DIGITAL MEDIALaunch of
I. PAMPERS.COM- Contained product information.Provided information for new &expectant mothers.Served as an interactive forum.
ll. BEINGGIRL.COM- Information & expert advice on issues such as menstruation,eating disorders, acne & dating
lll. MANOFTHEHOUSE.COM- “SPEAK TO THE WHOLE MAN”Featured household advice for men .
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TARGETED AFRICAN
AMERICAN WOMEN
Introduced 2 web series :
BUPPIESA scripted drama that integrated COVERGIRL’S Queen collection
MY BLACK IS BEAUTIFULA TV series showcasing the collection of P&G products in a makeover setting
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WHAT CAN P&G BE?
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MOVING FORWARD
Evolve marketing capabilities while pushing toward reaching 5 billion consumers served worldwide.
Build on its strengths in R&D , consumer research, and product performance while continuing to innovate & evolve as the world’s largest marketer
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BRIEF ANALYSIS
Expansion through joint venture and acquisitionssuch as Charmin Paper Mill, Gillette, Folger’s Coffee & pet foods manufacture Iams, opened up household paper product market, men’s grooming, food & pet care markets respectively for P&G.
TOP CONSUMER GOODS COMPANY
EVOLVING MARKETING STRATEGY
Shifted from exclusive focus on function, performance & price to design, making the marketing approach more consumer centric. Shifted from sole focus on product superiority & functional benefits to a more emotion-driven advertising, connecting better with consumers
INNOVATION AND R&D
Increase in innovation productivity by 60%, drop in cost of innovation and doubling innovation success due to “CONNECT AND DEVELOP” through adaption of new skills. Collaboration with scientists & engineers across the globe and combatting internal focus resulted in successful product innovations such as Swiffer dusters, Olay regenerist, Crest whitestrips.
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SUMMARY
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THANK YOU
THIS PRESENTATION WAS CREATED BY ANJALI VERMA, RAMJAS COLLEGE, UNIVERSITY OF DELHI, DURING A MARKETING INTERNSHIP BY PROFESSOR SAMEER MATHUR, IIM LUCKNOW