Co-Founders : William Procter( Candlemaker )

James Gamble( Soapmaker)

Date :  October 31, 1837

The company won contracts to supply the Union Army with soap and candles during American Civil War

Headquarters : Cincinnati, Ohio, United States

CEO : David S. Taylor

Subsidiaries : Gillette India Ltd., Wella, Barun, Clairol

Procter & Gamble Co., ( P&G) : American multinational consumer goods company headquartered in downtown Cincinnati, Ohio.

Products : Cleaning agents and personal care products.

The company moves into other countries in terms of manufacturing and product sales.

Thus becoming an international corporation .

To provide branded product & services of superior quality and value that improves lives of the world’s consumers, now and for Generations to come.Consumers will reward with leadership sales, profit, and value creation, allowing our shareholders, and the communities in which we live and work to prosper. 

To be recognized as, the best consumer products and services company in the world.

Loss due to closure of brands – Prior to 2014, P&G had close to 300 brands but it pruned its brand portfolio to include only 65 brands which were driving 95% of its overall profits.

Organization structure causes slow decision making

Low organic growth – Rate of Increase in customer base is slow as saturation curve is reached and lower innovation is happening.

Opportunities Threats

Rural markets – A major challenge for all companies is penetrating the rural markets, which are price sensitive and impervious to advertisements.

Increased purchasing power – Purchasing power of consumers is going to increase in the near future .

Intense competition – P&G has to constantly worry about competition especially from HUL.

Increased local / Unbranded competition

Operator Earnings Growth Rate

P&G follows a Pull Strategy

Heavy Advertising & Media Pioneer

Consistent Digital & Social marketing

Celebrity Endorsements

Understand how companies find a set of prices that maximizes the profit from the total product mix.

Adjusting the prices to take into account different types of customers.

Competitive Pricing

Product-line pricing

Procter & Gamble deals in goods whose product range is closely related.

Continuous Designing & Innovation.

Consumer centric marketing approach.

Distribution process is extensive : Intensive distribution, Specialty distribution and Extensive distribution.

Developing long-standing partnerships with Advertising Agencies.

More Design & Emotion-driven advertising.

Vivid distribution of advertising.

P&G, a U.S. Olympic team sponsor for the 2010 Games, became a worldwide sponsor, specifically to raise its visibility in emerging markets

Sponsorship gave consumers opportunities to engage with the NFL just for choosing P&G brands

P&G also had at least 16 U.S. Olympic athletes in individual sponsorship deals

CELEBRITY ENDORSEMENTS

P&G developed numerous celebrity endorsements.

NHL player Alex Ovechkin was named a Gillette Brand Ambassador and starred in TV commercials.

Sebastian Vettel, the Formula One champion, secured a long-term sponsorship with P&G to promote Head & Shoulders .

Sofia Vergara was named spokesmodel for CoverGirl cosmetics in May 2011 for an ad campaign launching .

DIGITAL & SOCIAL MEDIA MARKETING

The firm expanded its digital content offering (1999) with the launch of pampers.com.

Product based websites

“Old Spice” youtube video attracted 13.7 million people across the globe.

Involves Aggressive marketing

Separate page on facebook for each product

Launched first mobile marketing ad campaign, promoting Scope toothpaste

Mobile ad campaign Irresistibility quiz”

P&G’s line of “My Black is Beautiful” products introduced two web series in 2010 to showcase its products : Buppies and My Black is Beautiful

Is it Working ?

+35% of new products have elements that originated from outside P&G.

Up from 15% in 2000

R&D productivity has increased by nearly 60%

R&D investment as a percentage of sales is down From 4.8% in 2000 to 3.4% today

Since 2000 stock collapse Share price has doubled Our portfolio has grown to 22 billion-dollar brands

Intense and fierce Competition

Expansion requires major investment into creating new products and brands.

Brand Cannibalisation

Lack of presence in the industries

Competition has more industry focused product – lines.

Focusing more on Men’s productsoGrooming in men’s section account for 13% of net earnings.

Improve Productivity in all Areas Cost of Goods• Reduce RM costs

o Long-term contractsResearch & Development :• Continuous improvement• Product Innovation

Created by Suhani N. Shrivastava, NIT GOA, during a Marketing Internship

by Prof Sameer Mathur, IIM Lucknow.