Write a 2 pages paper on marketing strategies of p&g. Marketing strategies of P&G As America’s biggest manufacturer of household products, Procter & Gamble has not only pioneered in the line of products but has introduced novel marketing strategies into today’s business jargon. As Alan G Lafley, Chief executive P&G entered the scene after Jager, he brought with him great change that benefited both the company and its executives. The customers availed new products at lessened costs. While a mix of various marketing strategies was employed, the two strategies that starkly stand apart are discussed here.
Diversification through acquisitions:
One of the marketing strategies that worked wonders for P&G has been its strategy for diversification. When Lafley entered the scene in 2000, he stressed that the company must concentrate on what it sells well rather than build new products. However the company diversified and brought in novel brands into the market through various mergers and acquisitions. After Lafley entered the scene, P&G made the largest acquisitions ever in the year 2001 as it purchased Clairol for $5 billion. It also agreed to purchase Germany’s Wella. Other companies that joined P&G included Intuit Inc, Clorox Co., SpinBrush (brainchild of four entrepreneurs from Cleveland), Coke, Wrigley Co. to name a few. The old idea that all of P&Gs products come from its laboratories was challenged and Lafley brought in more products from outside, a strategy that did wonders for the company. As buying best-selling innovation is a difficult business P&G relied on testing products at Wal-Mart for customer response. With its feet firmly on ground with a range of brands, now P&G is likely to invest in businesses of pharmaceuticals and beauty care (considerably weak areas of P&G).
The leadership strategy of P&G reflects a lot of qualities of its leader, Lafley: strong, silent and pioneering. Whether the brand was made within P&G or acquired, it was ensured that it was not just good quality, but also novel in its line. Pampers was the first disposable diaper when it was introduced in 1961, giving the brand a leadership advantage. Liquid Tide was again a pioneer product when it was introduced in 1984. The company not just demonstrated leadership in bringing novel products into the market. it also introduced novel and innovative marketing techniques and new marketing media. In the 1880s, P&G was the first company to advertise nationally. Later on during the 1930s, this was again the first company responsible for inventing the soap opera when it sponsored the radio show of Ma Perkins followed by the Guiding Light. This was also the time when P&G developed the concept of brand management, another pioneering marketing strategy benchmark. Marketing teams were set for each brand and were pitched against each other in competition. To maintain leadership status, the company always pushed for cheaper formulations, lesser priced goods and cost cutting measures. The SpinBrush, introduced in 2001 was another leadership effort that allowed P&G to sell electric toothbrushes at $5 when other companies were charging $50. The manner of promoting SpinBrush was innovatively designed to cut down costs. The product was not advertised for the first year, but consumers were allowed to turn the brush on at the store. As a result, the brush outsold expectations and the product could sell at low costs without incurring advertising expenditures.