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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
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