p&g hbr- siddhant mishra-nit patna

• Founded in 1837, headquartered inn Cincinnati, Ohio by a candy maker William Procter and a soap maker James Gamble

Timeline

P&G rich brand heritage

P&G manages over two dozen billion dollar brands

Brands! Brands! Brands!

How Big P&G actually is?

•P&G is the global leader in Branded consumer goods• In total sales were US$78.94 billion which helped it

earn a profit of US$12 billion in the year 2010.

Well, its quite big!

Sales Percentage

Sales

Beauty

Grooming

Helth Care

Snacks and Pet Care

Fabric Care and Home

Care

Percentage of Earning

Major Competitors

What is P&G’s Marketing Secret Sauce?

Well, there is no secret ingredient

One of the main reason is their success is their elaborate R&D spending

What is P&G’s marketing strategy?

Shift in approach

• Throughout its history, P&G had pursued a multi brand strategy and with each brand satisfying a segment of the market.

• In 2000, it challenged itself to become a top product design company in the world, with a departure from focus on Function, Performance and Price.

• Shifting to design complemented the earlier function driven process, helping consumer recognize, understand and even sometimes imagine the function of a product.

• New emphasis shifted the company towards more Consumer-centric approach.

What is Consumer-centric marketing?

Consumer Satisfaction

• The common theme is a deep understanding of the consumers which offered the potential for growth.

• P&G strove to develop the metrics that measured brand loyalty.

• In 2008, P&G wooed recession-wary consumers with more focused attention to in-store promotions such as coupons, displays, etc.

What is P&G’s advertising strategy?

• P&G have relied heavily on developing long standing partnerships with advertising agencies to develop robust brand identities for its portfolio of consumer goods.

• P&G’s advertising has been built around the idea that functionality would sell over emotional connection.

• For instance, 2010 Winter Olympics featured the commercial that thanked moms around the world for their effort.

Sponsorships• US Olympic team sponsor for the 2010 Games

• Worldwide sponsor for the 2012 winter games and also 2016 summer games in Brazil

• P&G sponsors NFL and is tied in with the NFL’s Play 60 initiative.

Celebrity Endorsments

P&G brought together a number of celebrity endorsers from Hollywood and Sports

Digital Marketing and Social Media

P&G’s line of “My Black is Beautiful” products, targeting African American women, introduced two web series in 2010 to showcase its products: Buppies, a scripted drama that integrated CoverGirl’s Queen collection on BET.com; and My Black is Beautiful, a TV series on BET (also available online) by the same name, showcasing the collection of P&G products in a makeover setting.

P&G’s Old Spice television commercial and YouTube sensation, “The Man Your Man Could Smell Like,” gave P&G its greatest exposure in the online community in 2010, and bridged the power of digital and social media.

Social Media

• P&G used Facebook as a marketing supplement, not a replacement.

• Manofthehouse.com was its one of the first social media effort which featured household advice for men

Operating Principles

• 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-specificor 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. If you don’t, and if you have made thewrong move, the market will be the worst case scenario.