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based on precedent. In place of big television buys, P&G has pioneered the use of less obtrusive marketing techniques such as Vocalpoint, a word-of-mouth marketing program that enlists 600,000 mothers, among others, to promote its brands by giving positive testimonials, samples, and coupons to friends and neighbors.P&G still values the power of TV ads, but it also taps into the power of the Internet at the same time. Among the more successful of the 30-second ads (estimated to cost over $2.5 million) to run during the 2010 Super Bowl was one for Old Spice Body Wash that targeted women as well as men. The tongue-in-cheek ad featured rugged ex-NFL football player Isaiah Mustafa as “The Man Your Man Could Smell Like.” In one seamless take, Mustafa confidently strikes a variety of romantic poses while passing from a bathroom shower to a boat to a white horse. Uploaded onto YouTube and other social networking sites, the ad was viewed over 10 million additional times. Old Spice’s Facebook page included a Web application called “My Perpetual Love,” which featured Mustafa offering men the opportunity to be “more like him” by e-mailing and tweeting their sweethearts virtual love notes.New Research ApproachesP&G conducts approximately 10,000 consumer research projects each year, spending more than $100 million annually. The company significantly changed its research practice after Lafley became CEO by using qualitative observational research techniques to unlock consumer insights instead of relying heavily on quantitative analysis. Lafley referred to ethnographic research as the “best way to create value,” stating, “If you want to understand how a lion hunts, don’t go to the zoo. Go to the jungle.” In keeping with this view, Lafley required that the top 50 managers at P&G visit with consumers either in their homes or on shopping trips at least once per quarter.New Branding PhilosophyWhile it did launch successful new brands such as Swiffer, P&G began pursuing a strategy with less inherent risk: leveraging existing assets by investing in well-known “power brands.” The company now has 22 brands with more than $1 billion in annual sales and 19 with more than $500 million. In some
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