p&g hbr- siddhant mishra-nit patna

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Page 1: P&G  hbr- siddhant mishra-nit patna
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• Founded in 1837, headquartered inn Cincinnati, Ohio by a candy maker William Procter and a soap maker James Gamble

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Timeline

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P&G rich brand heritage

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P&G manages over two dozen billion dollar brands

Brands! Brands! Brands!

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How Big P&G actually is?

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•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!

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Sales Percentage

Sales

Beauty

Grooming

Helth Care

Snacks and Pet Care

Fabric Care and Home

Care

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Percentage of Earning

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Major Competitors

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What is P&G’s Marketing Secret Sauce?

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Well, there is no secret ingredient

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

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What is P&G’s marketing strategy?

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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.

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What is Consumer-centric marketing?

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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.

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What is P&G’s advertising strategy?

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• 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.

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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.

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Celebrity Endorsments

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

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Digital Marketing and Social Media

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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.

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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.

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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

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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.

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