Questions1. P&G’s impressive portfolio includes some of thestrongest brand names in the world. What are someof the challenges and risks associated with being themarket leader in so many categories?2. With social media becoming increasingly importantand fewer people watching traditional commercialson television, what does P&G need to do to maintainits strong brand images?3. What risks do you feel P&G will face going forward? Case study P&G: Brand powerP&GADLESProcter & Gamble (P&G) began in 1837 when brothers-in-law William Procter and James Gamble, whose wives were sisters,formed a small candle and soap company. From there, P&G innovated and launched scores of revolutionary products of superiorquality and value, including Ivory soap in 1882, Tide laundry detergent in 1946, Crest toothpaste with fluoride in 1955, and Pampersdisposable diapers in 1961. P&G also acquired a number of companies to open the doors to new product categories. Among thesewere Richardson-Vicks (makers of personal care products like Pantene, Olay, and Vicks), Norwich Eaton Pharmaceuticals (makersof Pepto-Bismol), Gillette, Noxell (makers of Noxzema), Shulton's Old Spice, Max Factor, and the lams Company.Today, P&G is one of the most skillful marketers of consumer packaged goods in the world and holds one of the most powerfulportfolios of trusted brands. The company employs 138,000 people in more than 80 countries worldwide and has total worldwidesales of more than $79 billion a year. It is the leader in 15 of the 21 product categories in which it competes, has 23 billion-dollarglobal brands, spends more than $2 billion annually on R&D, and serves more than 4 billion people in 180 different countries. Itssustained market leadership rests on a number of capabilities and philosophies:ehoterstone• Customer knowledge. P&G studies its customers- both end consumers and trade partners-through continuous marketingresearch and intelligence gathering. It spends more than $100 million on over 10,000 formal consumer research projectsevery year and generates more than 3 million consumer contacts via its e-mail and phone center. It also emphasizesgetting its marketers and researchers out into the field, where they can interact with consumers and retailers in theirnatural environment.Long-term outlook. P&G takes the time to analyze each opportunity carefully and prepare the best product, then commits itselfistutersto making this product a success. It struggled with Pringles potato chips for almost a decade before achieving marketsuccess. Recently, P&G has focused on increasing its presence in developing markets by concentrating on affordability,brand awareness, and distribution through e-commerce and high frequency stores.Product innovation. P&G is an active product innovator, devoting $2 billion annually to research and development, animpressively high amount for a packaged- goods company. It employs more science PhDs than Harvard, Berkeley, andMIT combined and applies for roughly 3,800 patents each year. Part of its innovation process is to develop brands thatoffer new consumer benefits. Recent innovations that created entirely new categories include Febreze, anodor-eliminating fabric spray; Dryel, a product that helps "dry-clean" clothes at home in the dryer; and Swiffer, a cleaningsystem that more effectively removes dust, dirt, and hair from floors and other hard surfaces.• Quality strategy. P&G designs products of above-average quality and continuously improves them in ways that matter toconsumers, including Tide compact detergents, Pampers Rash Guard (a diaper that treats and prevents diaper rash), andimproved two-in-one shampoo and conditioner products for Pantene, Vidal Sassoon, and Pert Plus.This study source was downloaded by 100000822225267 from CourseHero.com on 08-28-2021 03:26:38 GMT -05:00https://www.coursehero.com/file/20080957/PG-case-study-Branding-strategy/ • Brand extension strategy. P&G produces its brands in several sizes and forms. This strategy gains more shelf space andprevents competitors from moving in to satisfy unmet market needs. P&G also uses its strong brand names to launch newproducts with instant recognition and much less advertising outlay. The Mr. Clean brand has been extended fromhousehold cleaner to bathroom cleaner, and even to a carwash system. Old Spice extended its brand from men's fra-grances to deodorant. Crest successfully extended into a tooth-whitening system called Crest Whitestrips that removessurface stains from teeth in 14 days.Multibrand strategy. P&G markets several brands in the same product category, such as Luvs and Pampers diapers and Oral-Band Crest toothbrushes. Each brand meets a different consumer want and competes against specific competitors'brands. At the same time, P&G is careful not to sell too many brands and has reduced its vast array of products, sizes,flavors, and varieties in re- cent years to assemble a stronger brand portfolio.Communication pioneer. With its acquisition of Gillette, P&G became the nation's largest advertiser, spending over $2.3 billion ayear or nearly twice as much as the number two company, General Motors Corp. P&G pioneered the power of televisionto create strong consumer awareness and preference. In recent years, the company has shifted more of its advertisingbudget to online marketing efforts and social media such as Facebook, Twitter, and blogs. These efforts help infusestronger emotional appeals into its communications and create deeper consumer connections.• Aggressive sales force. P&G's sales force has been named one of the top 25 by Sales & Marketing Management magazine. Akey to its success is the close ties its sales force forms with retailers, notably Walmart. The 150-person team that servesthe retail giant works closely with Walmart to improve both theres and the process by whichHeterstothey get there.Manufacturing efficiency and cost cutting. P&G's reputationgreat marketing company is matched by its excellence as amanufacturing company. P&G spends significant amounts developing and improving production operations to keep itsreouthotocosts among the lowest in the industry, allowing it to reduce the premium prices at which some of its goods sell.Brand-management system. P&G originated the brand-management system, in which one executive is responsible for eachbrand. The system has been copied by many competitors but not often with P&G's success. Recently, P&G modified itsgeneral management structure so each brand category is now run by a category manager with volume and profitresponsibility. Although this new organization does not replace the brand-management system, it helps to sharpenstrategic focus on key consumer needs and competition in the category. P&G's accomplishments over the past 175 yearshave come from successfully orchestrating the myriad factors that contribute to market leadership.Questions1. P&G's impressive portfolio includes some of the strongest brand names in the world. What are some of the challenges and risksshartsassociated with being the market leader in so many categories?2. With social media becoming increasingly important and fewer people watching traditional commercials on television, what doesP&G need to do to maintain its strong brand images?3. What risks do you feel P&G will face going forward?Source: P. Kotler, K. L. Keller, Marketing Management, 14th ed., Prentice Hall, New Jersey 2012, pp. 269-270.This study source was downloaded by 100000822225267 from CourseHero.com on 08-28-2021 03:26:38 GMT -05:00https://www.coursehero.com/file/20080957/PG-case-study-Branding-strategy/

Question

Questions1. P&G’s impressive portfolio includes some of thestrongest brand names in the world. What are someof the challenges and risks associated with being themarket leader in so many categories?2. With social media becoming increasingly importantand fewer people watching traditional commercialson television, what does P&G need to do to maintainits strong brand images?3. What risks do you feel P&G will face going forward? Case study P&G: Brand powerP&GADLESProcter & Gamble (P&G) began in 1837 when brothers-in-law William Procter and James Gamble, whose wives were sisters,formed a small candle and soap company. From there, P&G innovated and launched scores of revolutionary products of superiorquality and value, including Ivory soap in 1882, Tide laundry detergent in 1946, Crest toothpaste with fluoride in 1955, and Pampersdisposable diapers in 1961. P&G also acquired a number of companies to open the doors to new product categories. Among thesewere Richardson-Vicks (makers of personal care products like Pantene, Olay, and Vicks), Norwich Eaton Pharmaceuticals (makersof Pepto-Bismol), Gillette, Noxell (makers of Noxzema), Shulton's Old Spice, Max Factor, and the lams Company.Today, P&G is one of the most skillful marketers of consumer packaged goods in the world and holds one of the most powerfulportfolios of trusted brands. The company employs 138,000 people in more than 80 countries worldwide and has total worldwidesales of more than $79 billion a year. It is the leader in 15 of the 21 product categories in which it competes, has 23 billion-dollarglobal brands, spends more than $2 billion annually on R&D, and serves more than 4 billion people in 180 different countries. Itssustained market leadership rests on a number of capabilities and philosophies:ehoterstone• Customer knowledge. P&G studies its customers- both end consumers and trade partners-through continuous marketingresearch and intelligence gathering. It spends more than $100 million on over 10,000 formal consumer research projectsevery year and generates more than 3 million consumer contacts via its e-mail and phone center. It also emphasizesgetting its marketers and researchers out into the field, where they can interact with consumers and retailers in theirnatural environment.Long-term outlook. P&G takes the time to analyze each opportunity carefully and prepare the best product, then commits itselfistutersto making this product a success. It struggled with Pringles potato chips for almost a decade before achieving marketsuccess. Recently, P&G has focused on increasing its presence in developing markets by concentrating on affordability,brand awareness, and distribution through e-commerce and high frequency stores.Product innovation. P&G is an active product innovator, devoting $2 billion annually to research and development, animpressively high amount for a packaged- goods company. It employs more science PhDs than Harvard, Berkeley, andMIT combined and applies for roughly 3,800 patents each year. Part of its innovation process is to develop brands thatoffer new consumer benefits. Recent innovations that created entirely new categories include Febreze, anodor-eliminating fabric spray; Dryel, a product that helps &#34;dry-clean&#34; clothes at home in the dryer; and Swiffer, a cleaningsystem that more effectively removes dust, dirt, and hair from floors and other hard surfaces.• Quality strategy. P&G designs products of above-average quality and continuously improves them in ways that matter toconsumers, including Tide compact detergents, Pampers Rash Guard (a diaper that treats and prevents diaper rash), andimproved two-in-one shampoo and conditioner products for Pantene, Vidal Sassoon, and Pert Plus.This study source was downloaded by 100000822225267 from CourseHero.com on 08-28-2021 03:26:38 GMT -05:00https://www.coursehero.com/file/20080957/PG-case-study-Branding-strategy/ • Brand extension strategy. P&G produces its brands in several sizes and forms. This strategy gains more shelf space andprevents competitors from moving in to satisfy unmet market needs. P&G also uses its strong brand names to launch newproducts with instant recognition and much less advertising outlay. The Mr. Clean brand has been extended fromhousehold cleaner to bathroom cleaner, and even to a carwash system. Old Spice extended its brand from men's fra-grances to deodorant. Crest successfully extended into a tooth-whitening system called Crest Whitestrips that removessurface stains from teeth in 14 days.Multibrand strategy. P&G markets several brands in the same product category, such as Luvs and Pampers diapers and Oral-Band Crest toothbrushes. Each brand meets a different consumer want and competes against specific competitors'brands. At the same time, P&G is careful not to sell too many brands and has reduced its vast array of products, sizes,flavors, and varieties in re- cent years to assemble a stronger brand portfolio.Communication pioneer. With its acquisition of Gillette, P&G became the nation's largest advertiser, spending over $2.3 billion ayear or nearly twice as much as the number two company, General Motors Corp. P&G pioneered the power of televisionto create strong consumer awareness and preference. In recent years, the company has shifted more of its advertisingbudget to online marketing efforts and social media such as Facebook, Twitter, and blogs. These efforts help infusestronger emotional appeals into its communications and create deeper consumer connections.• Aggressive sales force. P&G's sales force has been named one of the top 25 by Sales & Marketing Management magazine. Akey to its success is the close ties its sales force forms with retailers, notably Walmart. The 150-person team that servesthe retail giant works closely with Walmart to improve both theres and the process by whichHeterstothey get there.Manufacturing efficiency and cost cutting. P&G's reputationgreat marketing company is matched by its excellence as amanufacturing company. P&G spends significant amounts developing and improving production operations to keep itsreouthotocosts among the lowest in the industry, allowing it to reduce the premium prices at which some of its goods sell.Brand-management system. P&G originated the brand-management system, in which one executive is responsible for eachbrand. The system has been copied by many competitors but not often with P&G's success. Recently, P&G modified itsgeneral management structure so each brand category is now run by a category manager with volume and profitresponsibility. Although this new organization does not replace the brand-management system, it helps to sharpenstrategic focus on key consumer needs and competition in the category. P&G's accomplishments over the past 175 yearshave come from successfully orchestrating the myriad factors that contribute to market leadership.Questions1. P&G's impressive portfolio includes some of the strongest brand names in the world. What are some of the challenges and risksshartsassociated with being the market leader in so many categories?2. With social media becoming increasingly important and fewer people watching traditional commercials on television, what doesP&G need to do to maintain its strong brand images?3. What risks do you feel P&G will face going forward?Source: P. Kotler, K. L. Keller, Marketing Management, 14th ed., Prentice Hall, New Jersey 2012, pp. 269-270.This study source was downloaded by 100000822225267 from CourseHero.com on 08-28-2021 03:26:38 GMT -05:00https://www.coursehero.com/file/20080957/PG-case-study-Branding-strategy/

Accepted Answer

Procter & Gamble, a company that originated in 1837 is a renowned world-famous brand name that…