Welcome to A Case Study

On

AND ITS MARKETING CAPABILITIES

Procter & Gamble is

a major U.S. manufacturer

of soaps, cleansers, and other household

products. 

Vision"Be, and be recognized as, the best consumer products and services in the world"Mission"Procter and Gamble will continue to serve consumers by continuously innovating products that will allow us to be leaders in household and personal care, health care, and food products. To produce products with the utmost care to give nothing but quality to our communities. And to continue to grow so that we can maximize our shareholder's wealth" (Procter & Gamble. 2010)

P&G- AN OVERVIEWFounded in Cincinnati, Ohio in 1837 by two relatives due to they married sisters

1) William Procter - Candlemaker2) James Gamble – Soapmaker

High quality products boosted the national reputation

Focus on innovation-

1879- Gamble's son -chemist- launched "Ivory“

1890- started the pay of dividends and R&D lab

1919- created /direct sales force department

1924- establish market research department

1931- institutionalized competitive brand management

1933- invented opera soup

1943- created product category division

1946- launched "Tide"

P&G have three main product lines:

•household and personal care,• food consumer •and health care

products.

Internal and External Analysis• Procter & Gamble has a strong internal and external

foundation.

• It has built its reputation on achieving the goals it sets forth

• The company has remained a front competitor in innovation by introducing new and improved products to consumers

• P&G realizes that in a competitive market speed of research and development is a key element.

Long Term Objectives

• Support the business strategy, organizational principles and culture.

• Attract and retain required talent• Accept financial responsibility to

shareholders• The goal of long term objectives is to

support the business strategy as change is implemented.

Plan Goals and Implementation

• should continue to monitor trends in the market and consumer requests for products

• implement a corporate retrenchment strategy to enable them to expand their product line

• to make their product available to other international locations based on market research.

• This can be implemented by P&G conducting a stakeholder management survey.

Controls and Evaluation

PRODUCTS

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

S A L E S

SWOT analysis of your plan's focus areas

• Strengths:

–Profitable–Adaptability of Product Line to meet consumer

needs.–One of Procter & Gamble's strengths is it remain

profitable in a struggling economy. 

• Weakness:

–Turnaround time for Research and Development products.–Complexity of organization structure

• Threats:– Ecological Factors– Economic Factors– Sales are dependent on consumer

spending

• Opportunities:– Global marketing– New Products, improvement in existing

products, manufacturing and marketing techniques.

• Goals: – Eliminate the overlap in management– Initiate the "hub & spoke" structure for competitive

intelligence operations– Expand sales of product line globally– International expansion to markets with potential for

growth and limited competition exits– Decrease turnaround time for research and development

products– Customer responsiveness– Product development cycles– Product or service improvements– Speed in delivery or distribution– Develop open Innovation Strategy– Emphasis on process innovation that permits low-cost

product design, manufacturing methods and distribution– Product cost reduction

COM

PETITORS

MARKETING STRATEGIES

• Designing & Innovation

• Consumer centric marketing approach

• Return on marketing investments (ROMI)

ADVERTISING STRATEGY

P&G reconsidered its advertising strategies to better meet 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 13.7 million people • Separate facebook page for each

product • Manofthehouse.com for house hold

advice to man • Capessa for women on youtube

Research Methods• Qualitative

Group discussions Interviewed consumers at home In store interviews

• Quantitatively Gathered data on consumers

utilizing blind test Concept and use test Quality monitoring Large scale studies of the habits and

practices of consumers

Critical Success Factors• Critical success factors are the steps that the

business, both management and employees, must take to bring the strategies into a reality.

• The factors may vary from time to time, but they must be addressed in order for the company to operate at optimal efficiency.

• A critical factor for Procter & Gamble is quality and innovation.

• The company must aggressively market new products and bring research technologies to customers quicker. 

CONCLUSION• Never give your consumer a product based reason

to switch away from your brand

• Think of every brand of P&G, and treat every brand that we have, as though it were our only brand.

• Always determine whether a product innovation is brand-specific or generic.

• Competition will always follow your technology, not your brand

• After you have defined your options, always test your worst-case scenario in the market.

DISCLAIMERCreated by Reeva Mishra, IIIT Bhubaneswar

Purpose of presentation: For Internship in Marketing

Guide:Prof. Sameer Mathur, IIM Lucknow

THANK YOU