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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Introduction Contd...

In 2003, the company marketed more than 300 brands to nearly five billion consumers in 160 countries across the globe. P&G had a significant market share in several product segments (Refer Exhibit II) including laundry and cleaning (Tide, Cascade, Dawn), paper goods (Bounty, Charmin, Pampers), beauty care (Pantene, Olay, Cover Girl), food and beverages (Folgers, Pringles, Duncan Hines), and health care (Crest, Scope, Metamucil). Commending P&G's exceptional growth, an analyst said, "Within a paternalistic corporate culture, P&G pioneered in brand management, in consumer surveys for marketing research and in new product research and development."3

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

A pioneer in introducing a formalized brand management system way back in the 1930s, P&G constantly modified its brand management strategies as and when the company expanded its product & brand portfolio and its business operations globally.

The company introduced the category management model in the 1980s, focused on the 'glocal' branding strategy in the early 1990s and made changes in its brand management system under the Organization 2005 restructuring exercise4 in the late 1990s. In 2000, P&G introduced the 'cohort management strategy' for managing brands. The strategy involved grouping of brands to appeal to similar consumer groups. Describing the future of cohort management strategy, Robert Rubin (Rubin), Director of Netquity at Forrester Research,5 said, "The days of reaching large audiences with generic messages and promotions will give way to a new era in which individuals will be targeted and measured based on their behavior...

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3] In the article, "Corporate Watch: Procter & Gamble," in www.corporatewatch.org.uk.

4] The detailed description about P&G's organizational restructuring under Organization 2005 and its implications is covered in the ICMR case study, "Restructuring P&G."

5] Based in Massachusetts (US), Forrester Research focuses on the implications of technological changes on business.

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