P&G A CASE STUDY

ABOUT• American multinational consumer goods company headquartered

in downtown Cincinnati, Ohio, United States• founded by William Procter and James Gamble• In 2014, P&G recorded $83.1 billion in sales• On August 1, 2014, P&G announced it was streamlining the company,

dropping around 100 brands and concentrating on the remaining 65 brands, which produced 95% of the company's profits.

• David Taylor became P&G CEO and president effective November 1, 2015

Some of P&G’s popular products

Company Background• P&G pursued international expansion as early as

the 1930s, and from 1945 to 1980 it began to enter markets in Latin America, Western Europe, and Japan.

• It expanded into new lines of business through acquisitions, such as Charmin Paper Mill, Folger’s Coffee etc.

• In the 1980s, P&G ramped up its global expansion and developed its first global brands, including Always/Whisper, Pringles, and Pantene

Innovation and R&D• In 1887, an analytical lab was set up, laing the

foundation for the first R&D division.• In 1999, seven global business units (GBUs) were

estabilished based on product categories replacing company’s four geographical units.

• A business development team, a venture team and market development organization.

P&G’s Open Innovation

What is open innovation??

It is a partnership with non P&G’s scientists and engineers to make better products.

For every P&G researcher there were 200 scientists or engineers elsewhere in the world who were just as good

This structure led to such successful product introductions as the Swiffer Dusters, Olay Regenerist, Crest Whitestrips etc.

Marketing strategy of p&G

MARKETING STRATEGIES • Includes design to every

step of product development

• Customization of products.

• Continuously monitoring ROMI

• Involved heavily in market/marketing research

• Leader in performing consumer behavior analysis

• Used personal endorsement effectively

• Used various medias like televisions and radios

Celebrity Endorsement

Sponsorships

Digital Marketing• Brand based websites were

launched• Launched its first mobile based

ad campaign in 2006 to promote Crest toothpaste

• Its campaign “My black is beautiful” targeting African American women was very successful

• Its Old Spice TV commercial became a huge hit on YouTube.

Social Media• Separate social media profiles of each

brand

• In 2007, P&G launched two social media sites: Capessa for women on Yahoo!

• In 2011, P&G launched Manofthehouse.com, targeting its male customers

P&GA SWOT Analysis

Strength1. P&G has over 300 brands globally which are available in over 180 countries2. Over 125,000 people are employed in P&G globally3. It has around 24 brands which have annual sales over a billion dollars4. Its brand have a high recall, high visibility due to excellent marketing and adveritisng5, P&G has operations in over 80 countries6. P&G brand has also contributed as sponsors in major sporting and entertainment events

Weakness1. Fake products sold under the name of their brands2. Its products have stiff competition from big domestic players and international brands like Unilever.

Opportunity1. Tap rural markets and increase penetration in urban areas2.Mergers and acquisitions to strengthen the brand3.Increasing purchasing power of people thereby increasing demand

Threats1. Intense and increasing competition amongst other FMCG companies2. FDI in retail thereby allowing international brands3. Competition from unbranded and local products

DISCLAIMERCreated by Ankit Anand, BITS Goa, during a Marketing Internship by Prof. Sameer Mathur, IIM Lucknow