Procter & Gamble: Marketing Capabilities

What exactly is

P&G?

What is the case

all about?

How P&G evolved to adapt

to changing times and

how much of it is owed to

decisions taken by key

players

Brief Background (1980 - 1999)

1. Proctor & Gamble (P&G) had become a global leader in branded consumer goods.

2. It was the first company to advertise directly to consumers in the 1880’s, and

invented ‘soap operas’ that targeted women.

3. Through its continued efforts, P&G remained a global leader and this case elucidates

the strategies followed by P&G to adapt to the changing times.

1. In the 1980s, P&G ramped up its global expansion and developed its first global

brands, including Always/Whisper, Pringles, and Pantene.

2. P&G used the following approach to enter new market–

• Acquisition or joint venture on a small scale

• Through trial and error, learn the formula for success before making a major

commitment.

Who were the key players which guided P&G’s expansion?

Durk Jager (CEO) 1999 -

2000

Alan G. Lafley (CEO)

2000 - 15

Jim Stengel (CMO)

2001 - 08

Claudia Kotchka

(VP)Design

Innovation 2001 - 08

Key Decisions taken during Yager’s Term

1. P&G reorganised to boost growth after net sales had dropped to 2.6% growth. 2. P&G led a retrenchment of 15,000 staff. 3. 7 Global business units (GBUs) replaced company’s 4 Geographical business units, 4. To support GBUs following teams were commissioned:

• Business development team focusing on innovating in existing categories • Venture Team tasked with acquiring brands in new areas • Market development organisations tasked with performing intensive market

research

How successful were the decisions?

Led to the successful product introductions:

• Swiffer Dusters

• Olay Regenerist

• Crest Whitestrips

• Crest Spinbrush

BUT……………………………….

Firm struggled to control costs, and its stock slid from $118 to $52 over 18 months.

Alan G. Lafley had to take over.

Key Decisions taken during Lafley’s Term

1. Lafley named Jim Stengel as the Chief Marketing Officer.

2. Lafley created a new design unit and named Claudia Kotchka as Vice President for

design innovations and strategy.

3. Emphasis shifted to consumer-centric marketing.

4. P&G’s brands faced two moments of truth:

• On the store shelf

• When the consumers used the product and decided if it delivered on its promise

Key Decisions taken by Jim Stengel

1. Stengel brought a sharper focus to return on digital marketing investment (ROMI)

• Implying – shift from TV and print to digital and direct marketing

2. Stengel and P&G developed metrics to measure brand loyalty and consumer

relationships.

Key Decisions taken during Kotchka’s Term

1. Sought to bring design to every step of product development

• Hosted ‘design tasting’

• Created P&G design board similar to Mattel and Nike

• Created clay street project

2. P&G used design not as an antidote but as a complement

Marketing

Sponsorships

Celebrity Endorsements

A range of sponsorship opportunities were leveraged across P&G’s portfolio

Digital Marketing

P&G’s line “My Black is Beautiful” products targeted African American women with launch of two web series – ‘Buppies’ and ‘My Black is Beautiful’.

Disclaimer

This presentation was created by Vaibhav Parakh (Amity U, Noida), as part of the marketing internship by Prof. Sameer Mathur (IIM Lucknow)