procter & gamble: marketing capabilities case study
TRANSCRIPT
Marketing CAPABILITIES:Procter & Gamble Co
HARVARD BUSINESS SCHOOL CASE
Procter & Gamble
Procter & Gamble Co., also known as P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United States, founded by William Procter and James Gamble, both from the United Kingdom.
CEO : Alan G. Lafley Headquarters : Cincinnati, Ohio, United States Founded : October 31, 1837, Cincinnati, Ohio, United
States Subsidiaries : Wella, Braun, Max Factor, Clairol, Gillette
India Ltd., more Founders : James Gamble , William Procter
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 for winning• Trust
Evaluate the marketing strategy taken by P&G during its early expansion in 1980s
Evaluate the current strategy of global expansion mainly after 2010 when McDonald took over as CEO of the company
Issues to be focused
Products
Brands
Case Facts
Global Leader in Branded Consumer goods Has 2 dozen $1bn brands known worldwide First company to advertise directly to
consumers. 2010, total sales=$78.94bn Net Income=$12 bn Market capitalization=$186.63bn
SITUATION ANALYSIS
Has good company
background
Enters new market with a mission and
decisions
Takes scientific approach to connect with
people
Brings in a design unit as a
part of marketing strategy
Shift from product based marketing to consumer-
centric marketing
Communication through direct
& digital marketing &
sales promotion
Multibranding
Tries to move forward with an aim to reach 5
billion new consumers
Connect &
Develop
Sales Percentage
Sales
Beauty
Groomin
g
Helth
Care
Snacks and Pet Care
Fabric Care and Home Care
Percentage of Earning
• Sales
• Beauty
• Groomin
g
• Helth
Care
• Snacks and Peet Care
• Fabric Care and Home Care
SWOT Analysis of Marketing Strategy
Types of factorsLocation of factor
Favorable Unfavorable
Internal Strengths:-• Diversified Brand
portfolio• Research and
Development• Strong
distribution network
Weakness:-• Online media
and leadership
• Media- social, digital
External Opportunities:-• Diversification if
it’s products• Capitalization of
online media• Growth in India
FMCG market
Threats:-• No new
innovation• Competition• Government
regulation
Marketing Strategies
• Consumer centric approach• Designing and innovation• Return on marketing investments
Advertising• P&G reconsidered its advertising strategies to
bettermeet the company’s global market and consumers
Digital and social media marketing Product based web sites Mobile add campaign
“Irresistibility quiz” Old spice youtube video
campaign attracted 13.7million people
Separate facebook page for each product
Manofthehouse.com for house hold advice to man
Capessa for women on youtube
SPONSORSHIPS
CELEBRITY ENDORSEMENTS
POTERS FIVE FORCES MODEL
• Buyers:- Low bargaining power• Suppliers:- Low• Potential Entrants:- Less as P&G
itself is the market leader• Substitute:- Moderate threat• Industry Rival:- High
• BRAND LOYALTY• DISTRIBUTION
CHANNEL• INNOVATION• PRICING STRATEGY• QUALITY OF THE
PRODUCT
How is P&G different from others?
WHAT’S NEXT
• Digital marketing with campaigns
• Emotional, design and function driven marketing
• R&D
• Consumer research & product performance.
•Treat every brand special and do full justice to it in every aspect including advertisement, promotions etc.•Never give your consumer any reason to switch away from your brand.•After defining your options, always test worst case scenarios.•Competition will always follow your technology, not your brand.
Conclusion
DISCLAIMERCreated by Omkar Nawlakhe, NPTI Nagpur, during the Marketing Internship by Prof. Sameer Mathur, IIM Lucknow