BACKGROUND

Procter & Gamble (P&G) was a globall leader in branded consumer goods,
known for iconic category-defining product such as Ivory soap, Crisco shortening and
Tide laundry detergent. P&G had many brands known around the world including
Bounty, Crest, Downy/Lenor, Febreze, Gillete, Lams, Pampers, and it was the first
company to advertise directly to consumers. P&G was a seasoned marketer with
strong consumer research, a powerful innovation network, an evolving marketing
strategy, strong marketing talent, and the worlds largest financial commitment to
advertising.
Milestone of P&G :
1930

: P&G pursued international expansion

1957

: Acquisition of Carmin Paper Mill which opened up the household

paper products market.

1963

: Acquisitions of Folgers Coffe

1980

: Expansion and developed its first global brand including Whisper,

Pringles, Pantene, soft drink producer crush international limited

1981

: Acquisitions of the citrus processing company frostproof

1985

: Acquisitions of Richardson Vicks and G.D Searles nonprescription drug

divison

1989

: The company had become the USs top cosmetics company with the
acquisition of Noxell

1991

: Acquisition of Max Factor

2003

: The company entered the pet care with the acquisition of pet food
manufacturer lams.

2005

: Acquisition of Gillete and made P&G become top consumer goods

company.

2010

: P&G stated corporate mission was to build on its company purpose to

improve the lives of its customer through continued innovation to reach,
More Consumers, In More Parts of the World, More Completely.

MAIN ISSUE
1. How P&G could become a global leader in branded consumer goods?
2. What P&G do to increase their brand loyalty and customer relationship in global
marketing?

DISCUSSION
P&G took a scientific approach and connected R&D with the companys sales
and marketing. In June 1999, under the CEO Durk Jager, P&G cut the employes and
promised to deliver more innovation to boost growth after net sales slowed from the
previous year. P&G also restructured seven global business units (GBUs) replaced the
companys four geographic business units. GBU supported by business development
team, a venture team, and market development team. P&G hoped the net result would
be bigger innovation, faster speed to market, and greater growth. 50% of Innovation
and new product P&Gs are come from the own labs and 50% others are from outside
the company. This structure lead to such successful products.
P&G recognized that building brands is not exclusively or even primarily a
marketing activity but also the whole activity from produce the product which the
consumer want until distribution activity. Stengel (CMO, 2000) moved P&G
marketing approach from focus on sales into focus on consumer. He said, it
begins with who is your consumer, and what different about her?. He also thought
that sales are important but we cant just focus on it, but also we should look
measured brand loyalty and customer relationships. So, He analyzed all the data from
its store until the online data to understand what the best strategy for the customers.
The P&Gs marketing strategy are :
1. Commitment to the customers
P&G invested more in market research than any company in the world. Every
product that P&Gs produce is created from a series of rigorous long process involved
20.000 research studies each year. New technologies also continued to provide P&G
with ways to engage and measure consumer interest, habits, and satisfaction.
Neuromarketing also played an increasingly important role. P&G employed
psychological surveys to measure mood and electroencephalography (EEG)
technology to measure electrical activity in the brain as subject were exposed to
commercials. The approach held that feelings affected decision and human berhavior.
2. Advertising
P&G constantly built on its experience with broadcast media, it also relied
heavily on developing long standing partnerships with advertising agencies to develop
robust brand identities for its portfolio of consumer goods.

In 2002, P&G reconsidered its advertising strategies to better meet the

companys global markets and consumers. Working with agencies, P&G began by
first developing a media neutral idea. P&G marketing had been built around the
idea that functionality would sell over emotional connection.
3. Sponsorship
P&G become a sponsor for the US Olympic 2010, and also became a
sponsorship for National Football League. P&G focus for campaign on fighting
childhood obesity and increasing wellness by encouraging youths to be active an hour
a day.
4. Celebrity Endorsements
P&Gs acquisitions of several beauty companies in the 1990s had brought a
number of celebrity endorsers into the P&G stable. P&G also developed numerous
celebrity endorsement for the advertising or campaign. P&G also pursued a host of
promotion, sponsorship and endorsement relationships as well as other non traditional
outlets such as product placement in television and film.
5. Media Spending
P&G shifted to coupons and in store promotional activities to maintain the
same media presence while shifting ad costs. In 2010, P&G increased ad spending by
$1 billion with a 20% increase in media impressions, higher revenues led to an
increase in dollar spent.
6. Digital Marketing
Throughout the 1990s, P&Gs digital activity had been limited to its operation
of brand websites, but the firm expanded its digital content offering in 1999 with the
launch of pampers.com. But when the dotcom bubble burst, P&G slowed the digital
marketing and focus on proven media such as television, and print advertisement. In
2006, the company was back online after the study found that most people dealing
with heartburn conduct research online before making a purchase. In every website,
advertisement design adjusted with the campaign that purpose for target markets.
7. Social Media
In 2007, P&G launched two social media sotes: Capessa for women on
Yahoo! Health and the peoples choice community, associated with the peoples
choice awards.

8. Interactive Community Promotion

P&G make a merchandise like a T-shirt with slogan Be Seen, not spotted
worn by celebrities to interact with their customer in order to promote a new product
of Tide Laundry Detergent Tide with Febreze and it distribute by online purchase.
This promotion bring Tide Laundry detergent become a best seller product over a
decade. In 2006, P&G unveiled a major campaign in Times Square targeting holiday
shoppers by designing a Broadway block read Restrooms with a large blue neon
sign in the middle of it and led people up an escalator into a lounge with flat screen
TVs, leather couches, a fireplace, and 20 shiny, spotless toilets. The ad was used to
promote Charmin toilet paper and the tourist loved it.
SOLUTION
P&G knows that marketing is one of the tools to achieve the goals. So, P&G
keep focus on building the strengths in R&D, consumer research, product
performance, and continues improvement to make many innovation to satisfy the
consumers.

GROUP PAPER

CASE ANALYSIS
Procter & Gamble : Marketing Capabilities

Pengajar:

Ike Janita Dewi, S.E., MBA., Ph.D

Disusun oleh:
Hairin Nisa
Retno Diyan Prawitasari
REGULER 36

PROGRAM STUDI MAGISTER MANAJEMEN

FAKULTAS EKONOMIKA DAN BISNIS
UNIVERSITAS GADJAH MADA
JAKARTA
2015