Marketing Strategies of P&G - Essay Example

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 the 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).Leadership strategyThe 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.