CASE STUDY: Procter & Gamble

TITLE: We Make Every Day BetterIn Every Way We Can: Procter &
Gambles Domination of the Household Product Market
Tide, Tampax and Oil of Olay. Jif, Pampers, Crest and Cascade. From
toilet paper to peanut butter, from household cleaning aids to medical
products. There are over 300 Procter & Gamble brands sold to nearly
five billion consumers in 140 countries.
Two brothers-in-law, William Procter and James Gamble, started their
candle and soap-making business in 1837. The business immediately
bore the trademarks of innovation and enterprise when they branded
their candle boxes with a moon-and-stars moniker to distinguish them
from their competitors.
P&G was one of the first US companies to build research laboratories
and invest in product development. So, when the onset of electricity
rendered candles obsolete, nothing was wasted. Years of developing
pulp technologies for soap and candles paved the way for P&Gs
expansion into paper products. But most importantly, it was P&Gs indepth understanding of consumer needs, the result of pioneering
market research methods, which fuelled the companys successful
research and development program.
P&G first discovered the power of brand advertising in 1886 when it
spent $ 11,000 promoting the purity and long-lasting properties of
Ivory Soap. Within a decade P&G became advertising innovators,
regularly placing product advertisements in national newspapers and
magazines.
By the early 1930s, P&G has evolved a brand management system to
maintain its brands position in the market. A specialized marketing
team with its own separate marketing strategy was appointed to
manage each hand. P&G soaps sponsored the first radio serials, and as
these serials gained loyal followings, so their listeners extended their
loyalty to the brand that sponsored them. The programs subsequently
became known as soap operas. This consumer loyalty was
recognized and P&G continues this successful marketing strategy this
day. P&G now produces as well as sponsors the popular television soap
operas Guiding Light and As the World Turns.
P&G maintains that the interests of the company and the individual are
inseparable. So, the company uses sophisticated research techniques
to ensure it understands the consumers needs. John Pepper, the ninth
chairman of the board, describes P&G as first and foremost a research
Source: Click, Bricks and Brands: The Marriage of Online and Offline Business (Peppers and
Rogers)

and development company. But its P&Gs understanding of the

complex relationship between brand identity and consumer spending
that keeps it in the lead.
I.

Answer the following questions. Please try to be brief as

possible and only explain when needed.
1. What was the most important factor that enabled P&G to
adapt to change? Their marketing research and
innovation. They developed their products based on
the changing needs of their consumers.
2. Which product did they start using the power of
advertising? Ivory Soap.
3. Why were the programs are now referred to as soap
operas? P&G soaps became a sponsor to the first
ever radio serials. As these serials gained
audiences, these listeners extended their loyalty to
the product they promote.
4. Why P&G is first and foremost, a research and
development company? P&G was one of the first US
companies to invest in research laboratories and
build product development methods. The came
about as a company focusing on research before
their debut as a giant in the household product
market.
5. What kept P&G in the lead? It was in their thorough
understanding of the evolving needs of their
consumers, wherein they made sure that the
interests of the company and the targeted
consumers are inseparable.

II.

Identify the following:

1. Target market for P&Gs Household Product Market (i.e.
cleaners, hygiene)
a. Create a profile of your target market
i. Name your target market: Maricris Ayende
ii. Age: 35
iii. Social Economic Class: (Middle Class) Upper
to Lower B
iv. Occupation/Monthly Income: Housewife,
8,000-12,000php
v. Why is she a market for P&Gs Household
Product Market? As a mother, she is the one
who intuitively knows the basic
necessities inside the home and to ensure
the safety of the family from any form of

Source: Click, Bricks and Brands: The Marriage of Online and Offline Business (Peppers and
Rogers)

III.

untidiness, that might bring sickness or

disease.
2. Based on the case, state P&Gs goals
-To gain the trust every mother in terms of
household products and toiletries.
3. Based on the case, state P&Gs objectives
-To give an assurance to the consumers that P&G
products are well inclined to the needs of every
person of all ages.
-To prove to the consumers that P&G products are
well researched before produced, giving out an
assurance that their products are safe for personal
and household use.
-To make P&G products as consumer friendly as
possible, and to guarantee safety at an affordable
and reachable price by the masses.
Creative brief
Given:
Project title: Ivory Soap
Scenario: Philippines
Deadline: launch a campaign for Ivory soap in 3 months
Challenge: Ivory soap re-entering the Philippine market
Budget: Php 5M
1. What is the single most important message we want to
communicate? (Communication/Ad strategy) Ivory Soap
is still a leading soap suitable for a wide variety of
consumers, while it still retains its gentleness and
fragrant aroma after it has been in the market for a
long period of time.
2. Why should people believe this? Ivory Soap has been in
the market for the longest time, and it was already
tested by many generations.
3. What do we want people to think or feel after experiencing
the advertising?: Satisfaction and trust to the product
since it has been trusted through generations.
Soaps with a gentle touch and fragrant aroma dont
have to be harsh to the skin. It can come with the
most gentle of ingredients.
4. What does the client want to achieve?: To become the
new attraction to a wide variety of consumers for its
come back to the Philippine Market, retaining the
trust they once had to the product.
5. What is the best media channel for this message?:

Source: Click, Bricks and Brands: The Marriage of Online and Offline Business (Peppers and
Rogers)

-TV Commercials and sample products (soap in mini

sachets and kiosks in drugstores, supermarkets or
pharmacies)

Source: Click, Bricks and Brands: The Marriage of Online and Offline Business (Peppers and
Rogers)