This presentation is based on the Harvard Business Case:Procter & Gamble: Marketing Capabilities.It was created by me during a marketing internship by Prof Sameer Mathur IIM-Lucknow

1. Procter & Gamble
Marketing Capabilities

2. About
 An American multinational consumer goods company, founded
by William Procter and James Gamble in 1837.
 Headquarters:Cincinnati,Ohio,United States.
 The company manages two dozen $1 billion brands known
worldwide including Gillette, Pampers etc.
 A global leader in branded consumer goods, known for iconic
category-defining products.

3. Company’s Corporate mission
Bob McDonald, P&G’s CEO,2010
To improve the lives of its customers through continued
innovation to reach “More Consumers, In More Parts of the
World, More Completely”.
P&G focuses on three specific choices:
 to grow P&G‟s core brands and categories with an unrelenting
focus on innovation
 to build our business with unserved and underserved consumers
 continue to grow and develop faster-growing, higher margin
businesses with global leadership potential.

4. Products

5. Brands

6. Innovation and R&D: P&G
marketing’s seCret sauCe
 P&G took a scientific approach and connected R&D with the
company‟s sales and marketing.
 Seven GBUs were formed supported by three teams
 Business development team which focused
on innovating in existing categories.
 A venture team tasked with acquiring
brands in new areas.
 A market development organizations that
would perform intensive market research.

7. Connect &
Develop
 P&G started this strategy in which 50% of innovation and new
products came from P&G‟s network of labs, and 50% through the
labs—that is, through partnerships and connections with non-P&G
scientists and engineers.
This structure led to successful
product introductions such as the
Swiffer Dusters, Olay Regenerist,
Crest Whitestrips, and Crest
Spinbrush.

8. Marketing
Strategy
 Earlier P&G had pursued a multibrand strategy, and it managed
brands across a category carefully, with each getting individual
support and satisfying a segment of the market.
 Kotchka brought a design culture to every step of product
development and introduced it to P&G through a number of
actions such as "design tasting.”
 Consumer-centric marketing approach.
 Return On Marketing Investment

9. Research on
consumer
Qualitatively
 Group discussions
 Interviewed consumers at
home
 performed in-context visits
 in-store visits
Quantitatively
 gathered data on consumers
utilizing blind tests
 concept and use tests
 quality monitoring
 large-scale studies of the
habits and practices of
consumers

10. Digital Marketing
 Began with the launch of
pampers.com.
 Launched BEINGGIRL.com in
2000 to provide expert advice to
teenage girls and used it to
advertise P&G tampons and
offer free samples.
 Launched a mobile marketing ad
campaign to promote Crest
Whitening Plus Scope
toothpaste.

11.  „My Black is Beautiful‟ was
launched to target African
American women and it
introduced TV series which
gathered million of views
resulting in increase sales.
 Old spice YouTube video
campaign attracted 13.7 million
people. The campaign was seen as
a milestone in P&G‟s transition
from a mass marketer to a one-on-
one digitized marketer.

12.  Unique “Thank you mom”
campaign helped it to connect
with consumers emotionally.

13. Advertising
 First company to advertise directly to its consumers and sell its
products through “soap operas” by sponsoring radio and TV
programming that targeted women.
 To meet challenges in new markets P&G introduced a “media
neutral” idea, meaning customizing advertising campaigns for
different regions.
 Lafley ,Stengel and Kotchka shifted towards design and emotion
driven-advertising to make the brands inspirational.

14. Sponsorships
 P&G, initially a U.S. Olympic team sponsor for the 2010 Games,
became a worldwide sponsor, specifically to raise its visibility in
emerging markets, for the 2012 winter games to be held in Russia
and the 2016 summer games in Brazil.
 Sponsored NFL and engaged with consumers through national
youth health and fitness campaign focused on fighting childhood
obesity and increasing wellness.

15. Social Media
 In 2007, P&G launched two social media sites: Capessa for women on
Yahoo! Health and the People‟s Choice Community .
 P&G began using Facebook as a marketing tool & used Facebook as a
marketing supplement, not a replacement. It identified 2010 as the
year to acquire Facebook friends, but the years beyond that were for
figuring out how to use them.
 In 2011, when company research showed that men were going to
women‟s sites for information,P&G started Manofthehouse.com,
which featured household advice for men. In contrast to other
similar sites Manofthehouse.com aimed to “speak to the whole
man.”

16. Celebrity Endorsements
 P&G received a no. of celebrity
endorsers for its acquired beauty
companies and products like
Pantene & Cover Girl Cosmetics.
 Sports stars like Roger Federer
were hired to promote brands
like Gillette & Head & Shoulders
shampoo in TV commercials,
print and online ads .

17. P&G Sales Percentage
Sales
Fabric &Home Care
Beauty
Health Care
Grooming
Snacks and Pet Care
Baby &Family Care

18. P&G Earnings Percentage
Earnings
Fabric &Home Care
Beauty
Health Care
Grooming
Snacks and Pet Care
Baby &Family Care

19. Next for P&G
 Building on its strengths in R&D
 Consumer research
 Product performance
 Innovate as the world‟s
largest innovator

20.  About P&G
 Company‟s Corporate mission
 Brands and Products
 Innovation and R&D: P&G Marketing‟s Secret Sauce
 Connect & Develop
 Marketing Strategy
 Research on consumer
 Digital Marketing
 Advertising
 Sponsorships & Social Media
 Celebrity Endorsements
 P&G Sales and Earnings Percentage
 Next for P&G

21. Disclaimer
Created by Vishal Gupta,IIT-BHU during a marketing
Internship under Prof Sameer Mathur IIM Lucknow.