Verified Document

P&G Branding Strategy And Advertising Recently Installed Essay

P&G Branding Strategy and Advertising Recently installed Proctor & Gamble (P&G) CEO Bob McDonald spoke to shareholders recently and articulated the vision of the company, "to touch and improve lives" (Leader's Interviews. N.D.). In this context the indefatigable CEO has set out a bold initiative of adding one billion consumers of its products within five years, adding to the existing four billion customers who already are P&G customers (Sewell, D. March 6, 2010). Accomplishing this goal however, requires a carefully crafted mix of marketing strategy which allows for reaching a differential of customers across demographic variances including: socioeconomic, age, technological awareness, and geography. McDonald, points to the "hundreds of millions of people who have yet to buy their first bottle of Tide, their first Pampers diaper or a Gillette shaver" (Sewell, D. March 6, 2010). In implementing this global strategy of reaching existing and new consumers, P&G utilizes a diverse range of advertising and marketing options which in the last year accounted for nine billion dollars of corporate spend (Sewell, D. December 17, 2010). How best to utilize these financial resources in order to build brand equity is of critical concern for the company.

Summary of the Case

The P&G case study looks at how the 55 billion in annual revenues organization, (now 79 billion as of 2010) (CNBC) has garnered market share and extensive growth via multiple advertising streams both traditional and in the last two decades the internet and digital media. The company has for years been at the forefront of experimentation and utilization of advertising mediums, and their perfervid focus on reaching customers through web access has allowed them to pursue their objectives of "developing brand awareness and brand equity; collecting valuable data from consumers; cutting down on advertising costs, and conducting one-to-one advertising" (P&G case study). The case study posits an important question of whether P&G "the leading consumer packaged- goods company on the Net because they're willing to try everything" (P&G case study) will continue to adroitly adapt...

For P&G brand equity concerns not just the individual products; Tide, Pampers etc. But the corporate name itself. Bob McDonald pointed to this fact stating that "there is some advantage to making Proctor and Gamble as a company more like a brand. If you look at investors, they buy our company; you look at the various lists out there- Most Admired, Most Respected companies-they're about the company, not about the brands" (Sewell, D. March 6, 2010). At the time of the case study (2004) P&G was experimenting with new online approaches: "developing market partnerships, investing in promising start-ups, and joining a B2B marketplace consortium" (P&G case study).
Since the case study the company has continued to move aggressively in reaching customers and strengthening brand equity through innovative online and digital media approaches. In order for an advertising medium to be successful it must trigger one of three components of brand equity: financial (the premium on a product that the firm can charge), extensions (the ability of the company to launch additional products off of others), and consumer attitude (the strength of customer conviction in the brand) (NetMBA, N.D.). Yet, for P&G the dollars spent on advertising may strengthen brand equity but not increase revenues to the degree requisite to justify the cash outlays; finding that correct balance is critical for long-term success in the highly competitive industry.

Proposing a Solution

Since 2004 the advent and rise of digital media has allowed P&G to aggressively spend advertising dollars in mediums such as Facebook, Twitter, and YouTube which fulfills their major objective; building around each major product a community of users" (P&G case study). As P&G Marketing Chief Marc Pritchard indicates "digital media has pretty much exploded, it's become very integrated with how we operate,…

Sources used in this document:
References

Leaders Magazine (October 2010). Leaders Interviews. The Power of Purpose: An

Interview with Bob McDonald. Leaders Magazine. Retrieved December 29, 2010 from http://www.leadersmag.com/issues/2010.4_Oct/ROB/LEADERS-Bob-McDonald-Procter-Gamble.html

NetMBA. (N.D.). Brand Equity. Retrieved December 29, 2010 from http://www.netmba.com/marketing/brand/equity/

P&G Case Study.
Sewell, D. (December 17, 2010). Procter & Gamble Embraces Social Media for Promotion. Green Bay Press Gazette. Retrieved December 29, 2010 from http://www.greenbaypressgazette.com/article/20101217/GPG03/12170523/Procter-Gamble-embraces-social-media-for-promotion
Sewell, D. (March 6, 2010). P&G Chief Explains Company's Growth Strategy. Miami Herald. Retrieved December 29, 2010 from http://www.miamiherald.com/2010/03/06/1515319/pg-chief-explains-companys-growth.html
Cite this Document:
Copy Bibliography Citation

Related Documents

P, a Car Salesman, Is Advertising One
Words: 1655 Length: 6 Document Type: Essay

P, a car salesman, is advertising one of his cars, made by Ferrari for sale at the price of € 50000 in the newspaper. N see the advertisement and calls to P. offering him €40000. P rejects N's offer and tell N. that he would be willing to discuss an offer for 45000. N agrees on the price but under the condition that P. proves to her that the car

P.T.S.D Influence Family a Solder Returning Home
Words: 2369 Length: 7 Document Type: Essay

P.T.S.D Influence Family a Solder Returning Home Deployment The consequences of P.T.S.D (Post Traumatic Stress Disorder) are limited to varied scales of human behavior and experiences in life. Several avenues of performance and human interaction are related to the development of stress avenues among people. Childhood experiences are part of the mechanistic influences that have a larger share of what people go through in their lives. The experiences developed within the

Lesson Plan Amp; Reflection I Didn't Know
Words: 857 Length: 3 Document Type: Essay

Lesson Plan Amp; Reflection I didn't know what state you are in so was unable to do state/district standards! Lesson Plan Age/Grade Range; Developmental Level(s): 7-8/2nd Grade; Below grade level Anticipated Lesson Duration: 45 Minutes Lesson Foundations Pre-assessment (including cognitive and noncognitive measures): All students are reading below grade level (5-7 months) as measured by standardized assessments and teacher observation Curricular Focus, Theme, or Subject Area: Reading: Fluency, word recognition, and comprehension State/District Standards: Learning Objectives: Students will develop

Branding New Service Dominant Logic
Words: 12522 Length: 50 Document Type: Dissertation

Branding in Service Markets Amp Aim And Objectives Themes for AMP Characteristics Composing Branding Concept Branding Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Categories and Themes Branding Theory Evolution S-D Logic and Service Markets Branding Challenges in Service Markets Considerations for Effective Service Branding Branding Concept Characteristics Characteristics Composing Branding Concept Sampling of Studies Reviewed Evolution of Branding Theory Evolution of Marketing Service-Brand-Relationship-Value Triangle Brand Identity, Position & Image Just as marketing increasingly influences most aspects of the consumer's lives, brands

G.F. Handel George Frideric Handel
Words: 1857 Length: 6 Document Type: Term Paper

On the other extreme, some held up Handel's music, especially his religious English oratorios, as the absolute embodiment of English musical style. As a result, English music and Handel in particular gained a false reputation on the European continent as being overly moral and religious. This has been a difficult reputation for Handel to shake, even in the 20th and 21st centuries. Because his most significant contribution to the development

G.M. Goes, So Goes the
Words: 731 Length: 2 Document Type: Thesis

Both American and international consumers, fearing for their jobs as the unemployment rate continues to escalate, are unwilling to make major purchases such as new cars, particularly from a company that is perceived as making 'gas guzzling' vehicles like G.M. Credit also remains difficult to obtain from banks, and few consumers can afford to buy a new car with cash. Even consumers with secure jobs are concerned about the

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now