Transcript JPEAMA talk-w-video-2

The Consumer Is Boss!
AMA Collegiate Conference
March 14, 2003
Jamie Egasti
Vice President NA Snacks
The Procter & Gamble Company
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Objective
 Share some insights into the
marketing challenges you will
all face as you launch into
your business careers
 Keep you awake after your
night in New Orleans
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Background
 Graduate of Harvard University
 22 years with P&G
 Variety of sales, marketing and
general management assignments
 VP NA Snacks 2002
 The Best Marketing Job in the world!
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P&G – A Company of Brands
 $40 Billion in Sales Worldwide
- 7% volume growth
- 5% sales growth
 Market 250 brands
- to 5 billion consumers
- in over 130 different countries
 Operations in 80 countries
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Statement of Purpose
“We will provide brands of
superior quality and value
that improve the lives of
the world’s consumers…”
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The Changing World
 Consumers . . .
- More dynamic than ever
- Higher expectations than ever
 Performance
 Quality
 Value
- Demand brand relevance
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Change of Power
 Consumers have more choice
- Brands, Retail, Media
 1960’s
- 3 spots could reach 70% hsh’s
- One of 30 “messages” a day
 Today…
- 30 spots to reach 70% hsh’s
- One of 600 messages
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Change of Control
 Consumers are demanding
more control
- Health Care
- Tivo
 Consumer believe they….not
manufacturers are the
“owners” of brands…(they’re
right!)
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The Consumer is
Boss!
 Coca-Cola
- New Coke…Coke Classic
 e-bay
- “as members of the e-bay
community… together we are
building the people’s most
abundant and efficient
marketplace”
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The New World Of Marketing
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Functional
product benefits
Consumer
solutions
Shopping and
product use
Consumer
experiences
Transactions
Consumer
relationships
The New World Of Marketing
Functional
product benefits
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Consumer
solutions
Consumer Solutions
 Tide
- Superior Cleaning plus:
Tide Kick
Tide Stain Detective
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Consumer Solutions
 Tide
- Superior Cleaning plus:
Tide Kick
Tide Stain Detective
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Consumer Solutions
 Iams
- From Pet Food to Pet Health
- Pet Services
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Consumer Solutions
 Iams
- From Pet Food to Pet Health
- Pet Services
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Consumer Solutions
Impact on Marketing
 Moving away from messages about
product benefit
 Moving toward multi-dimensional
marketing about solutions and
brand experience
 Think holistically about your
consumers’ needs
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The New World Of Marketing
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Functional
product benefits
Consumer
solutions
Shopping and
product use
Consumer
experiences
Consumer Experiences
 Creating new and better
experiences that make
“the Boss” happy
- Consistent experiences at
all consumer touch points:
in-store, in-home, via key
influencers . . . and beyond
- Rewards beyond product
functionality
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Consumer Experiences
 1. The first key moment of truth
…. in the store
- Retail environment is as much
a communications medium
as TV, radio, print or the
Internet
- More than 100MM people shop
Walmart each week
- Leverage the store to create
unexpected value and a more
enjoyable shopping trip
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Consumer Experiences
 Speaking of Women’s Health
- Wal-Mart
- National Sponsorship with the
Foundation
- In-store activity + out-of-store
components
 Information
 Education
 Entertainment
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Consumer Experiences
 Speaking of Women’s Health
- Wal-Mart
- National Sponsorship with the
Foundation
- In-store activity + out-of-store
components
 Information
 Education
 Entertainment
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Consumer Experiences
 2.Role of Design
- First Moment of Truth
 Easy identification of product
 “Pop” on shelf
 Simple, easy to read packaging
- Second Moment of Truth
 Experience that supports the equity
of the brand
 Delivers on demanding consumer
expectations
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Consumer Experiences
 Pampers: The Consumer Opportunity
- Highly concentrated group of users: 80% of Sales
come from 3.7% of total households
- High per consumer dollar ring: approx. $500/year
- Behavior/condition predicates entry into the
category, not attitude (presence of children vs.
“hair involved”)
 Short product lifecycle
 Specific points in time where Mom’s
purchase and preference were most in-play
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Consumer Experiences
 Consumer Insight:
- Interested in anything that enhances child’s
development
- Raising kids to be prepared for the “real world”
- Product choices based on ability to help child’s
development
 Brand Equity
- Pampers helps me uniquely meet and celebrate my
child’s development as we grow together
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Consumer Experiences
 Consumer Insight:
- Interested in anything that enhances child’s
development
- Raising kids to be prepared for the “real world”
- Product choices based on ability to help child’s
development
 Brand Equity
- Pampers helps me uniquely meet and celebrate my
child’s development as we grow together
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Direct Mail
The New World Of Marketing
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Functional
product benefits
Consumer
solutions
Shopping and
product use
Consumer
experiences
Transactions
Consumer
relationships
Consumer Relationships
 Targeted Marketing vs. Mass
Marketing
- Prime Prospects - Group of consumers who
will drive a brand’s growth now and in the
future
- Fundamental Objectives
 Understand them and their needs deeply
 Find more consumers like them
 Direct marketing activity towards them
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Consumer Relationships
 Crest Whitestrips
- Sold over the internet for one year
- Great appeal among:
 Brides to be
 Teen Girls
 Hispanics
 Gay Men
- Continued to create a lot of buzz
- 35% awareness before we shipped a
case!!
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A Short Story- Febreze
 A $250MM new brand for P&G
 The first successful new
“category” launch in over 25
years.
 A brand that safely cleans
odors on fabrics
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Febreze
 Launched in July 96
 Positioning on a
clothing/smoke focus
 Failed miserably..25% of trial
objective…many trial barriers
- Not relevant to me
- New behaviors
- How does it work
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Febreze
 Launched in July 96
 Positioning on a
clothing/smoke focus
 Failed miserably..25% of trial
objective…many trial barriers
- Not relevant to me
- New behaviors
- How does it work
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Febreze
 Spent a week with loyal/heavy
users in test mkt.
- Diverse lower income
- Passionate insights about the
versatility..how it works
- How it fits in my life..increased
relevance & appeal
 Restaged as an Everyday, AllPurpose Odor Neutralizer
 “Discover the Uses”
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Febreze
 Spent a week with loyal/heavy
users in test mkt.
- Diverse lower income
- Passionate insights about the
versatility..how it works
- How it fits in my life..increased
relevance & appeal
 Restaged as an Everyday, AllPurpose Odor Neutralizer
 “Discover the Uses”
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Discover the Uses
 Quadrupled trial, doubled
awareness
 But..we needed to create a
higher order benefit
 Zaltman/Emotional research
with users/non-users
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Higher Order benefit
 Odors are have deep emotional
response..elicit strong memories
 Gold standard….cleaning
- “What my mother taught me”
 Reposition as “the only Spray
that cleans odors away”
 Fabrics need Febreze
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Higher Order benefit
 Odors are have deep emotional
response..elicit strong memories
 Gold standard….cleaning
- “What my mother taught me”
 Reposition as “the only Spray
that cleans odors away”
 Fabrics need Febreze
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Fabrics Need Febreeze
 Doubled trial…drove heavier
everday use.
- The emotional needs hierarchy
provided the functional & emotional
barriers to trial & use.
- Strongest Verbatims…”changed my
life”
 Launched National in May 98
 $150MM in year one sales
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Fabrics Need Febreeze
 Doubled trial…drove heavier
everday use.
- The emotional needs hierarchy
provided the functional & emotional
barriers to trial & use.
- Strongest Verbatims…”changed my
life”
 Launched National in May 98
 $150MM in year one sales
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Key Learnings
 At every step…going back to
the Boss moved us forward
 Consumers had a much
better understanding of how
to use…& why
 You must build relevance &
emotion to sustain the
relationship
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The Consumer Is Boss!
If brand marketing is a symphony . . .
 The consumer is the conductor
 Marketers are the musicians
 Marketing tools and media are the instruments
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P&G’s Principles
 Recognizing “The Consumer is
Boss” and living ALL its
implications in our business
 Commitment to advancing the
craft of marketing
 Commitment to
creating/sustaining the
world’s pre-eminent
marketing community
 Recognizing that brand
building and marketing is the
core competency of our
organization . . . We are first
and foremost a company of
brands
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