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PROCTER & GAMBLE: MARKETING CAPABILITIES
(CASE ANALYSIS)Manjushree Yethirajyam
COMPANY BACKGROUND
IVORY One of P&G’s first product was Ivory, an inexpensive soap that floats on water.
P&G pursued international expansion since the 1930s. It expanded into new lines of
business through acquisitions.
PROCTER & GAMBLE TODAY
APPROACHES FOR GROWTH
P&G adopts three distinct methods to control their current businesses and grow into new forays.
APPROACHES FOR GROWTH
1 Design Innovation and Strategy, Research and Development
2 Rigorous Product and Market Testing
3Advertising, Commercials, Endorsements, Digital Marketing, Social Media
DESIGN INNOVATION AND STRATEGY, RESEARCH AND DEVELOPMENT
“to grow P&G’s core brands and categories with an unrelenting focus on innovation”
Four geographic business units
Seven global business units (GBUs)
CLAUDIA KOTCHKA• New Design Unit – Design Innovation
and Strategy • Claudia Kotchka – Vice President of
Design Innovation and Strategy• Aim: Make P&G top product-design
company
DESIGN TASTING • “bring design to every stop of product development and introduce a culture of design to P&G”• Design Tasting for top 200 executives• Design - a complement, helping consumers recognize,understand, and in some cases even imagine the functions of a given product
“design informed the innovation processand even changed the function of someproducts”
TWO MOMENTS OF TRUTHWhenever a customer buys a product, he experiences two moments of truth: •first, on the store shelf; and • second, when the consumer used the product and decided whether it delivered on its promise.
P&G’S WEBSITE
INNOVATION AND R&D
R&D INVESTMENTS
RIGOROUS PRODUCT AND MARKET
TESTING“to buildour business with unserved and underserved consumers”
VOCALPOINT.COMThe program crafted productmessages that mothers and other women shared with peers;
P&G also gave them samples, coupons, and opportunitiesto share their opinions with P&G.
This personal endorsement approach helpedadvertisers.
Tide is one of the few P&G products that was launched intothe market without the standardrigorous testing that all P&Gproducts usually undergo.
This is because testing would take about 2 years and there was fear that competitors would catch up with thetechnology.
ADVERTISING“to continue to grow and develop faster-growing, higher margin businesses with global leadership potential”
Daytime Radio Shows and Television Commercials
Advertising Campaigns customized by regions
U.S. Olympic Team Sponsor for 2010 GamesWinter Games, Russia – 2012Summer Games, Brazil - 2016National Football League (NFL) Sponsor
CelebrityEndorsements
Multi-branding:Campaigns
THE WAY AHEAD
WAY AHEAD “We focused on three specificchoices: to grow P&G’s core brands and categories with an unrelenting focus on innovation; to build our business with unserved and underserved consumers; and to continue to grow and developfaster-growing, higher margin businesses with global leadership potential.”
EXPENDITURES ON ADVERTISING
Crest Olay CoverGirl DayQuil Pampers Swiffer Febreze Tide Gillette020406080
100120140160180200
Biggest Spending Brands
Spendings (in million US Dollars)
OPTIMISING MARKETING EXPENDITURES
CHANGES IN MARKETING STRATEGIES using digital technology for production, pooling more production using open sourcing and creativity in our work to create advertising
CHANGES IN MARKETING STRATEGIES reduce the amount it spends on promotions by partnering with retail partners and combining their joint marketing programmes
increasing media continuity by bouncing spending more evenly across months and quarters on all brands to enable top of mind awareness year around.
optimise its medium mix by advertising based on when, where and how much time consumers spend engaging with ads on various media platforms
Thank you.