Digital Strategy of Procter & Gamble: Becoming More Agile and Efficient
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Case Details:
Case Code : ITSY069
Case Length : 19 Pages
Period : 2000-2012
Organization: The Procter & Gamble Company
Pub Date : 2012
Teaching Note : Not Available
Industry : Consumer Packaged Goods
Countries : US; Global
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Excerpts Contd...
Digitizing External Collaborations
In some emerging markets, P&G had developed wireless applications that enabled retailers to make product requisitions using smart devices. In these markets, retailers could employ smartphones to virtually view P&G's suggested store and product arrangement, and, make alterations...
Modeling & Simulation
From creating the blueprint for a product or a container through process manufacturing and the manufacturing unit's output, modeling and simulation played a crucial part in P&G's activities. The objective was to employ simulation to visualize to the maximum extent possible in all activities...
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Digitizing the Supply Chain
Sensing Demand
A significant portion of any manufacturing company's capital is locked up in its safety stocks / inventory and this had been the case with P&G too. P&G had earlier made huge investments in demand planning...
The Visibility Factor
P&G had installed 'control towers' to handle its distribution structures globally. A control tower, in the context of a supply chain, was a site that allowed a view of inward and outward movement of goods, akin to an airport control tower that directed the maneuver of an airplane...
Analytics - the Core
Business Sphere
At the heart of modeling and simulation was the analytics / operations research know-how. At P&G, analytics formed a vital component of all significant decisions which had a bearing on sales and margins. P&G started employing analytics in 1992 when it had an excess number of production units in USA and was required to cut down on the surplus production infrastructure and devise mechanisms to right-size its global supply chain...
Digital Marketing Initiatives
As part of its digitization strategy, P&G had increasingly invested in online social media. In December 2010, March Pritchard, the then P&G’s Global Marketing Officer, said, "Digital media has become very integrated with how we operate, it's become part of the way we do marketing, It's kind of the oldest form of marketing - word of mouth - with the newest form of technology." By 2009, P&G's digital marketing expenditure formed 4% of its entire marketing expenditure. This did not include paid search advertising and display ads...
Excerpts Contd...
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