Procter & Gamble (P&G), one of the world’s largest consumer goods companies, has undergone a significant strategic makeover in recent years. The company has been focusing on combining marketing and digital transformation to drive growth and stay competitive in a rapidly changing market. This transformation is built around the concept of “Marketing Smartkarma,” which aims to create a more agile, data-driven, and consumer-centric marketing approach.
At the heart of P&G’s strategy is a shift towards digital marketing, with a focus on social media, e-commerce, and data analytics. The company has increased its digital advertising spend significantly, with a focus on platforms such as Facebook, Google, and Amazon. P&G has also invested heavily in data analytics, using tools such as machine learning and artificial intelligence to better understand consumer behavior and preferences.
Another key aspect of P&G’s strategy is its focus on consumer-centricity. The company has moved away from a traditional product-focused approach, instead emphasizing the needs and desires of its consumers. This has involved the development of new products and services that meet emerging consumer trends, such as sustainability and wellness. For example, P&G has launched a range of eco-friendly products, including a line of refillable and reusable packaging.
P&G has also been working to simplify its brand portfolio, focusing on a smaller number of core brands that have the greatest potential for growth. This has involved the sale of non-core brands, such as the company’s beauty business, and the acquisition of new brands that fit with its strategic priorities. For example, P&G acquired the Merck consumer health business in 2018, which added a range of consumer healthcare brands to its portfolio.
The results of P&G’s strategic makeover have been positive, with the company reporting increased sales and profitability in recent years. The company’s digital transformation has also enabled it to improve its marketing efficiency, with a focus on targeted and personalized advertising. However, P&G still faces significant challenges, including intense competition in the consumer goods market and the need to continue innovating and adapting to changing consumer trends.
Overall, P&G’s combination of marketing and digital transformation, built around the concept of Marketing Smartkarma, has positioned the company for success in a rapidly changing market. By focusing on consumer-centricity, digital marketing, and data analytics, P&G is well-placed to drive growth and stay ahead of the competition. As the company continues to evolve and adapt, it is likely to remain a leader in the consumer goods industry for years to come.