P&G's Brand Management System

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Case Details:

Case Code : MKTG073
Case Length : 15 Pages
Period : 2003
Pub Date : 2003
Teaching Note : Not Available
Organization : Procter & Gamble
Industry : FMCG
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Procter & Gamble was established in 1837 when candle maker William Procter and his brother-in-law, soap maker James Gamble merged their small businesses. They set up a shop in Cincinnati and nicknamed it “porkopolis” because of its dependence on swine slaughterhouses...

The Brand Management System

The Initial Decades

The brand management system at P&G came into existence in 1931 when Neil H. McElroy (McElroy), P&G's Promotion Department Manager, formed a marketing division based on competing brands, controlled by a group of employees. The system enabled P&G to design and customize its marketing strategies for each brand...

The Category Management Model

Under the CMM, the brand managers did not compete against each other with similar product brands -contrary to the idea envisioned by McElroy. For instance, in the detergent product category, brands like Tide and Cheer shared the available marketing expenditure and other financial resources but were not allowed to compete for the same segment of customers.

Hence, while Tide was positioned as the premium brand, Cheer targeted the customers in the economy segment...

The 'Glocal' Branding Strategy

By the early 1990s, as P&G's operations expanded globally, the top management felt the need for further streamlining the brand management system. Earlier, P&G was known as "the one-page memo company." The brand managers of P&G were asked to offer their ideas, suggestions, or business plans in just one-page...

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