PROCTER & GAMBLEMA R K E T I N G   C A P A B I L I T I E S

ABOUT

Procter & Gamble(P&G) is a globalleader in brandedconsumer goods,known for iconiccategory-definingproducts.

FOCUS OF P&G A   B R I E F   C R I T I C A L   R E V I EW

P&G took a scientific approach andconnected R&D with the company’s salesand marketing

I N N O V A T I O N   A N D   R & D

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Reaching out to & trying to penetrate newmarkets.

S E RV IN G   UN S E RV E D   C U S TOME R S

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Promoting & positioning the business toto utilise its global leadership potential.

G ROW &   D EVELOP   THE   BU S INE S S

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ISSUES OF FOCUSP & G   I S   F O C U S E D   O N   3   I S S U E S

INNOVATIONAND

RESEARCH & DEVELOPMENT

Penetratingnew andlocalmarkets

Widen theR&D base, soas toencourageinnovation.

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GOALS

STEPS TAKEN FOR R&DCOMBINING R&D WITH SALES & MARKETING 

Initially, R&D division wasestablished as one of the firstcorporate labs in the field ofconsumer goods. Replacing thetrial-and-error methods commonlypursued at the time, P&G took ascientific approach and connectedR&D with the company’s sales andmarketing.

STEPS TAKEN FOR R&DTO BUILD GLOBAL PRODUCT DEVELOPMENT

AND QUICK­TO­MARKET STRATEGIES

7 global business units (GBUs) based onproduct categories replaced thecompany’s 4 GBUs.3 new teams supported the GBUs:

1.Business development team2.Venture team and market3.Development organizations.

P&G hoped for “bigger innovations, fasterspeed to market, greater growth—innovation vitality.”

STEPS TAKEN FOR R&DCONNECT­AND­DEVELOP WITH NON­P&G

SCIENTISTS

The new structure and approach toinnovation, called connect-and-develop, identified proventechnologies, packages, andproducts that P&G could improve,scale up, and market on its own orthrough partnerships

INNOVATIONAND

RESEARCH & DEVELOPMENT

Products likeCrest toothpaste,Head & Shouldersshampoo andPampers diaperswere successful

Wide R&D led to introductionof products like SwifferDusters, Olay Regenerist, CrestWhitestrips & Crest Spinbrush.However, the firm struggled tocontrol costs, and its stock slidfrom $118 to $52 over 18months

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RESULTS

REACHING OUT TO UNSERVED &UNDERSERVED MARKETS

To communicateto new &existingconsumers thatP&G is a pioneerin innovation

To reach outto consumersby conductingone-on-onemarketing

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GOALS

STEPS TAKEN TO REACH OUTVERY DETAILED BUILDING OF BRANDS

Market segments are identified andeach segment's need is catered toby building a brand for a segment.This is done to serve the unserved.

STEPS TAKEN TO REACH OUTEMPHASIS ON DESIGNING PRODUCTS

TO COMMUNICATE INNOVATIVENESS

Lafley (CEO in 2000s), set a goal tomake P&G the top product-designcompany in the world, a departurefrom P&G’s past focus on function,performance, and price. ClaudiaKotchka was VP for designinnovation and strategy,

P&G used design as a complementto its function-driven process.,

STEPS TAKEN TO REACH OUTCUSTOMER­CENTRIC MARKETING 

Large-scale market research usingtechnologically advanced modes

Reaching out to more customersthrough VocalPoint program(promoting advocacy messages topeers by women).

Catering to emotional &psychological aspects ofconsumers (e.g. effects of bad hairdays on consumer behaviour)

REACHING OUT TO UNSERVED &UNDERSERVED MARKETS

The influx ofdesign had astrong impacton P&G’sproductdevelopment

Design informedthe innovationprocess andeven changedthe function ofsome products.

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RESULTS

GROW & DEVELOP TO UTILISE

GLOBAL LEADERSHIP POTENTIAL

Have a goodbrand imageand hence,positioning thebrand well.

Making P&Glocally & globallyrelevant

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GOALS

STEPS TAKEN TO ENSUREGLOBAL PRESENCE

LOCAL ADVERTISING

Sponsoring soap operas

TV-commercials

Developed relationships with adagencies.

STEPS TAKEN TO ENSUREGLOBAL PRESENCE

SPONSORSHIPS

Sponsoring popular events &causes.

Celebrity endorsements

Media promotions-Digital media &social media.

SPONSORSHIPS

CELEBRITY ENDORSEMENTS

DIGITAL MEDIA & SOCIAL MEDIA MARKETING

CATCHY MARKETING OF P&G

MOVING AHEADWHA T   N E X T   F O R   P & G ?

As P&G continued to push towardreaching 5 billion consumers servedworldwide, its evolving marketingcapabilities took center stage.

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Building on its strengths in R&D,consumer research, and productperformance, P&G continued to evolveand innovate as the world’s largestmarketer.

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SUMMARY

THANK YOU!