MARKETING CAPABILITIES

Global Leader in branded consumer goods

Global Leader in branded consumer goods

Known for iconic category-defining products (Crisco, Ivory, Tide)

COMPANY BACKGROUND

1945-1980

1945-1980International Expansion

expanded into new lines of business through acquisitions

1945-1980International Expansion

expanded into new lines of business through acquisitions

Divested brands that didn’t fit company profile

First Global Brands- Always, Pringles & Pantene (in 1980s)

First Global Brands- Always, Pringles & Pantene (in 1980s)

U.S.’s Top Cosmetics Company- acquisition of Noxell (1989) and Max Factor (1991)

First Global Brands- Always, Pringles & Pantene (in 1980s)

U.S.’s Top Cosmetics Company- acquisition of Noxell (1989) and Max Factor (1991)

Entry into pet-care market: acquisition of Iams (for $2.3 billion)

First Global Brands- Always, Pringles & Pantene (in 1980s)

U.S.’s Top Cosmetics Company- acquisition of Noxell (1989) and Max Factor (1991)

Entry into pet-care market: acquisition of Iams (for $2.3 billion)

$57 billion acquisition of Gillette in 2005 made P&G the Top Consumer Goods Company

INNOVATION

R&Dand

Company Background

Replacing Trial-and-Error methods R&D + Sale’s Marketing

Replacing Trial-and-Error methods R&D + Sale’s Marketing

In 1999, 2.6% growth reduced

Replacing Trial-and-Error methods R&D + Sale’s Marketing

In 1999, 2.6% growth reduced

To boost growth 7 GBUs + 3 Teams (to support GBUs) replaced 4 demographic business units

Connect-and-DevelopInnovation & new products

Connect-and-Develop50% 50%Innovation & new products

From P&G labs

Non-P&G scientist & engineers

Connect-and-Develop50% 50%Innovation & new products

From P&G labs

Non-P&G scientist & engineers

Shift mindsets away from resistance to

“not invented here”

Impact

ImpactR&D production increase by 60%

ImpactR&D production increase by 60%

Innovation success doubled

ImpactR&D production increase by 60%

Innovation success doubledCost of innovation dropped

ImpactR&D production increase by 60%

Innovation success doubledCost of innovation droppedR&D investment (percentage of sales): 4.8% (2000) 3.4% (2006)

ImpactR&D production increase by 60%

Innovation success doubledCost of innovation droppedR&D investment (percentage of sales): 4.8% (2000) 3.4% (2006)

Firm struggled to control costsStocks slid: $118 $52 (over 18 months)

MARKETING

MARKETING FRO

M

FunctionPerformancePrice

MARKETING FRO

MTO

FunctionPerformancePrice

Consumer-centricfocus on design

ROMI (return on market investment)shift from TV & Print Digitize & Direct marketinge.g. Project Apollo

ROMI (return on market investment)shift from TV & Print Digitize & Direct marketinge.g. Project Apollo

Pritchard’s “Store Back” approach shift PG’s mind-set to shopper marketing experiencee.g. Pampers 2008 campaign

ROMI (return on market investment)shift from TV & Print Digitize & Direct marketinge.g. Project Apollo

Pritchard’s “Store Back” approach shift PG’s mind-set to shopper marketing experiencee.g. Pampers 2008 campaign

Multi-branding or leveraging P&G brand to derive sales to its sub-brands e.g. 2010 Winter Olympic campaign (18 brands under common message)

COMMITMENT TO

CONSUMER

$500 million spent 20,000 market research studies5 million consumers100 countries

1

$500 million spent 20,000 market research studies5 million consumers100 countries

Technologystake in Ocado (2008)partnership with Tobii (2010)Neuromarketing (psychological surveys)

1

2

Qualitativefocus group discussionscustomer interviewsin-store interviewsin-context visits

3

Qualitativefocus group discussionscustomer interviewsin-store interviewsin-context visits

Quantitativedata acquisition(habits & practices of consumers)personal endorsement approach(helped advertisers; e.g. VocalPoint- P&G’s word-of-mouth program)

3

4

Membership benefits

ADVERTISING

Early innovations

Daytime Radio Dramas

Early innovations

Daytime Radio Dramas Soap Operas

Early innovations

Daytime Radio Dramas Soap Operas

Developed long-standing partnerships with advertising agencies to develop robust

Brand Identities

“Thank You, Mom” campaign was one of the most successful campaigns of P&G

P&G’s staple advertisements focused on its product superiority and clear functional benefits

“Thank You, Mom” campaign was one of the most successful campaigns of P&G

While maintaining its central advertising strategy, P&G shifted to more design- and emotion-driven advertising

“Thank You, Mom” campaign was one of the most successful campaigns of P&G

P&G’s staple advertisements focused on its product superiority and clear functional benefits

SPONSORPHIPS

“Thank You, Mom” campaignMost successful campaign in P&G’s 175 year history

“Thank You, Mom” campaignMost successful campaign in P&G’s 175 year history

Delivered + $200 million incremental sales (USA)

“Thank You, Mom” campaignMost successful campaign in P&G’s 175 year history

Delivered + $200 million incremental sales (USA)

17 million views on YouTube

“Thank You, Mom” campaignMost successful campaign in P&G’s 175 year history

Delivered + $200 million incremental sales (USA)

17 million views on YouTube

Most shared videos of the Games

“Thank You, Mom” campaignMost successful campaign in P&G’s 175 year history

Delivered + $200 million incremental sales (USA)

17 million views on YouTube

Most shared videos of the Games

33.6 billion earned media impressions

CELEBRITY ENDORSEMENT

COVERGIRLFor 50 years, COVERGIRL has created must-have beauty products that bring out the best in women.

GILLETTE Gillette YouTube channel featuringRoger Federer commercial attracted+ 2 million viewers.

MEDIA SPENDING

P&G maintained its marketing budget in early 2009 recession

P&G maintained its marketing budget in early 2009 recession

HOW?

P&G shifted to coupons and instore promotional activities.

This maintained media pressure, while shifting all costs.

P&G expanded its digital offering with the launch of

P&G expanded its digital offering with the launch of

papmers.com BeingGirl.com

P&G introducedTWO

in 2010

BUPPIES

MY BLACK IS BEAUTIFUL

1

2

3.6 million views

+2 million views

BUPPIES

MY BLACK IS BEAUTIFUL

1

2

The web series targeted African American women and was a huge success

The web series targeted African American women and was a huge success

Collection sales grew 20% (in the first half of 2010)

The web series targeted African American women and was a huge success

Collection sales grew 20% (in the first half of 2010)

Second quarter dollar share forPantene were up 14%

The web series targeted African American women and was a huge success

Collection sales grew 20% (in the first half of 2010)

Second quarter dollar share forPantene were up 14%4% for CoverGirl3% for Olay

P&G’s Old Spice

P&G’s Old Spice

YouTube sensation

P&G’s Old Spice

Televisioncommercial

YouTube sensation

The campaign was a MILESTONE in P&G’s transition from

The campaign was a MILESTONE in P&G’s transition from

MASS MARKETER

one-on-one DIGITIZED MARKETER

The campaign generated +2 billion media impressions

The campaign generated +2 billion media impressions

13.7 million individual views

The campaign generated +2 billion media impressions

13.7 million individual views

94,000 followers on Twitter

The campaign generated +2 billion media impressions

2,300 Twitter lists

13.7 million individual views

94,000 followers on Twitter

SOCIALMEDIA

In 2007,P&G launched

TWOsocial media sites

Capessa For women on Yahoo!

People’s Choice Community associated with thePeople’s Choice Awards

In 2010,P&G started using Facebook

as a marketing tool

15 brands with “friends” in SIX-FIGURE range

In 2010,P&G started using Facebook

as a marketing tool

15 brands with “friends” in SIX-FIGURE range

In 2010,P&G started using Facebook

as a marketing tool

Manofthehouse.com launched in 2011

15 brands with “friends” in SIX-FIGURE range

In 2010,P&G started using Facebook

as a marketing tool

Manofthehouse.com launched in 2011

Aimed to“speak to the whole man”

INTERACTIVE COMMUNITY PROMOTION

Tide “Loads of Hope” campaign (2005)

Tide “Loads of Hope” campaign (2005)

Opened Laundromat to wash Katrina hurricane

survivors' clothes

Tide “Loads of Hope” campaign (2005)

Opened Laundromat to wash Katrina hurricane

survivors' clothes

Tide had its best sales in

+10 years

Times Square campaign 2006

Times Square campaign 2006

Targeted holiday shoppersaimed to attract customers

for life

Times Square campaign 2006

Targeted holiday shoppersaimed to attract customers

for life

The campaign created 9 YouTube ads and

generated 20 million views/month

MOVING FORWARD

MOVING FORWARD

P&G has proven its ability to navigate digital environment as evident

from its campaigns

MOVING FORWARD

P&G continues to evolve & innovateas

WORLD’S LARGEST MARKETER

MOVING FORWARD

P&G continues to push towards reaching

5 BILLION CONSUMERS WORLDWIDE

SUMMARY

MARKETING CAPABILITIES

COMPANY BACKGROUND

MARKETING

SPONSORPHIPS

MOVING FORWARD

DISCLAIMERCreated by Harshit Gupta, IIT Roorkee, during marketing internship by Prof. Sameer Mathur, IIM Lucknow