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...
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