Procter & Gamble : Marketing Capabilities

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A dozen $1 billion brands.Overall Sales: $78.94 billion.Net Income: $12.74 billion.Market Capitalization: $186.63 billion.Developed markets represent 66% of total sales.

Current Situation

Adding emotional quotient to the product

Eye-Tracking and Neuromarketing

Hypothesis

• Focus more on developing markets.• Be more environmentally focused.• Focusing more on men’s products.• Better Commerce practices.

Focusing more on developing markets

In 2009, net sales decreased ($76.7 billion from $76 billion)while the share of emerging markets increased. (32% to 33%)

Thus the loss incurred was from the developed markets.

Thus P&G should focus more on developing and emerging markets rather than developed markets.

Be more environmentally focused

Focusing more on Men’s products.

Grooming in men’s section accounts for 13% of net earnings and 10% of net sales, this could generate more revenue.

Thus focusing less on food industry (snacks and pet care) and giving more attention to grooming and health care would generate more revenue.

Better commerce practices

• Open P&G stores exclusively for P&G products, like apple does.

• Create a e – store exclusively for P&G products like amazon , etc.

• Focus less on walmarts , etc and focus more on its own supermarkets.

Created by, A ANKIT RAO, NIT Raipur, during a marketing internship by Prof.

SAMEER MATHUR, IIM Lucknow.

Disclaimer