ABSTRACT PG) is a multinational corporation headquarter of
report is written to reflect the successful strategies of Procter and Gamble,
in terms of customer relationship management, loyalty program and retention
program , barriers for implementation as well as their success stories to
motivate and inspire small or prospect companies. This study will mainly focus
on the companies CRM strategies. However, to understand how the company has got
so immense all over the world and become a fortune 500 American multinational
corporation. A brief history of the firm will be provided at the beginning of
the report. The performance and vast variety the products of them are shown to
enlighten and guide other companies to become as affluent as Procter and
History of Procter & Gamble
& Gamble Co. (P&G, NYSE: PG) is a multinational corporation headquarter
of which is in Downtown Cincinnati, Ohio. It was founded by two
brother-in-law´s called William Procter who founded himself as a candle
producer, and James Gamble who was a soap maker. They could have never met each
other in business life if they had not married two sisters called Olivia and
Elizabeth whose father persuaded his son-in-law´s to establish a business on
partners. Upon their father-in-law´s suggestion a new enterprise called Procter
& Gamble was born in 1837. Although there was a financial crisis in America
where hundreds of banks were closing one by one and which was thought to go
bankrupt, William and James started their new enterprise competing with other
14 soap and candle makers in the market in their city.
the fact that the country was in economic storm, their calm proved how
forward-looking they were in the business world. This approach made them become
the hallmark of P&G. To illustrate, although there was a rumor of imminent
civil war in the United States, they built a new factory to continue their
growing business. By 1830 they became a multi-million dollar corporation,
selling 30 different types of soap including ivory. They had full-color
advertisements in national magazines and newspapers which enabled them to get
more and more consumers demand for P&G soaps. The demand was so extensive
that the company had to expand its operations outside Cincinnati starting with
Kansas City, Kansas, followed by a factory in Ontario, Canada.
had also research labs which were as busy as their factories. Year after year
the firm was gaining innovative new products. For instance, Ivory Flakes, Soap
Flakes Form for not just washing clothes but also dishes. More importantly the
company had Chipso the first ever soap for washing machines.
All these new products
came from P&G´s profound understanding of customer needs. Those days ‘soap
operas’ were also P&G`s innovating techniques for the radio.
most important product of P&G was Tide, which was introduced in the market
in 1946. This product made the firm mark in several new businesses. Crest was
the first fluoride toothpaste endorsed by American Dental Association. That was
followed by first toilet tissue and paper towel and many more. Up till now,
P&G has been the leading brand well-known al around the world.
of the Products of Procter & Gamble
Procter & Gamble is a leading
multinational American Corporation with 500 companies all over the world, which
sells a wide variety of consumer goods. It was in the 6th rank of World’s
Most Admired Companies in 2010.
big company has been using Right Now Technologies to enhance their online
customer experience across abundant products such as Crest, Downy, Folgers,
Olay, Pampers, and Pantene.
Right-now says that this technology helps P to
exponentially answer consumers` questions through Web Self-Service, E-mail, and
Chat. It also enables P to see the type of the questions that the
consumers are asking, therefore it can be quickly replied by any appearing
trends or topics.
Moreover, customers frequently check the P site
for information on some of the company’s products such as clues for make-up,
stain removal or other issues. With Right-Now Technology P&G can deliver
this information easily in many languages for the customers in 23 countries. P&G
also uses Right-Now surveys in a quick and cheap way among chosen group of users
who have opted into the corporation`s market research programs.
The obtained data base has been improved by Wegener
Direct Marketing, which has been working for Procter & Gamble in Belgium
for the last decade. It is using the details of about 380 million consumers all
In this way the data allows the company to perform
national and pan European campaigns to build relationship with the customers
collects data using numerous of methods like questionnaires and surveys about
the use of brands; in-store promotions, promotional packing, DM, and finally
online. P&G only uses the data which has been aggregated customers who have
attended the promotions.
Tremor, a marketing unit of this company builds
word-of-mouth campaigns among teenagers for P&G products and outside
The affecting network of P&G is only a part of the
battle against other companies. An item sells itself through viral marketing. A
user of the best adult product might be loyal to it, however, it is the package
which conveys the message ‘Get it First’.
having an emotional connection with their consumers are the ones which pursue
to thrive in the global and commoditized economy. P&G perfectly understands
the importance of building emotional brand connection with their customers.
They also do lots of research, so know a lot about their target customers, what
they need and what makes them happy. They know that emotional connection is a
vital part of branding to establish customer loyalty successfully. P&G
states that they believe that it is the loyalty which makes the consumers buy a
product. That is why P&G touch emotions of target users with a specific
product while advertising it. If the target consumers of the product are women
they make them cry knowing that a women`s sensitive feeling will be arisen in
this way which ultimately make them loyal to the product. Keeping this in mind
’emotions play a real big role in brand loyalty’. This firm really knows whom
they target and how they should emotionally engage them. They are really
experts at adds addressing their target users` emotions at a subconscious
main policy of P&G of sustainability is ‘working to make every day a little
P&G has devoted itself to touching and enhancing
lives in the best way that preserves and protects our planet.
The long term vision of P&G can only be attained
by setting short term goals to make sure that they are always on track. They
see continuity as chance to improve our lives, our own daily lives and
societies in which we live and work.
Environment and social responsibility are P&G´s
main sustainability principles which are inherent in their daily work and
The report prepared for the 2015 sustainability
program shows that what they focus on will always remain the same:
As last they state that
they are always focused on these areas and that they are protecting the world that
they are living.