Y




Gunjan Agarwal
Nidhi Upadhyay
Anjali Raj
Vasundhra Agarwal
Dimple Lalwani




6 n 1837 candle maker William Procter and his brother in law James
Gamble a soap maker merged there small businesses and
established P&G. there shop in Cincinnati was nicknamed
ë




6
y 1859 P&G had become one of the largest companies in

Cincinnati, with sales of 1million us$

6 1879 P&G introduced an all purpose soap


¶.

6
y 1880¶s P&G sold brands like  
  



 

6
y 1890 P&G was selling more than 30 different varieties of soap.

They advertised there products in full colour print ad¶s in national
magazine.
6 n 1920¶s when   
 were introduced by
P&G¶s competitors, P&G introduced .

6 Camay did not perform well, management felt that it did

not compete head on with ivory. This resulted in
development of a   

6 n 1924, P&G became one of the first companies in the

world to establish a  
 

6 n 1980¶s company introduced 
 


 

6 n early 1990¶s they focused on a 
 


6 à 
 !""# was a 6 year old
organizational restructuring exercise under which
P&G sought to reorganize its organizational
structure into  
  

  
 
 
 
 

6 n 2000 P&G introduced



 



6 n 2001, P&G launched a division named $


that engaged teenagers to promote brands through
the WOM route.

6 n 2002, P&G celebrated its 165th anniversary. 12 of

the brands in its portfolio were billion $ brands
6
y 2004 P&G marketed over 300 brands in more
than 160 countries.

6 The company had # 
  fabric and

home care, baby and family care, beauty care, health
care, and snacks and beverages which were
realigned on July 1st 2004 to  
 i.e., global beauty care, global household
care and global health, baby, and family care.

6 n 2005 P&G acquired % company.

6 As of 2005, P&G had almost 140000 employees

working in over 80 countries world wide.



6 Tremor was a marketing service launched in 2001 with

Steve Knox as the CEO

6 t was a WOM program aimed at 

6 They were selected based on the response to a 

&


6 Only '#( of the applicants got through the screening

process to become members.

6 Only between )(  '"( of the original applicants

went on to reach ë

 status.
6 The company provided Tremor members with
 

, surveys, music, sneak
peeks, etc. n return, the teens were expected to
share news about the company¶s brand with
there peers.

6 P&G also gave its connector members  

 
 


6 According to P&G for a product or service to be
talked about, it had to have two elements
i
  i 


6 Advocacy was what happened when a connector

experienced a product and liked it.

6 Amplification means that product message or

experience is easy to talk about.

6 The result was that tremor campaigns were



   without any
need for scripted dialogues.
6 Tremor limited its connectors to 20 campaigns a
year .

6
*  
solicited ideas from
the members during a products pre launch
phase as well as for existing products.

6 Campaigns were run for P&G products as well as

for external clients.

6 According to P&G after five years of running the

tremor program it had cracked the code on the
creation of predictable WOM advocacy.
6 Tremor was targeted at teenagers whereas most
of P&G products were designed for and targeted
at 

6 As a result around 80% of tremor campaigns

were for external clients such as music and
movie companies.

Y
$ +à 
  ,

6 t was launched in march 2006.

6 t presented P&G with the opportunity to run campaigns for

more of its own brands thus      
.

6 Vocalpoint used
 who have children aged 19yrs or

below unlike tremor which used teenagers.

6 Small scale recruitment of vocalpoint members started in mid

2005.

6 Large scale recruitment of members started in December

2005.
6 Recruiting these members for the program required
   
 as this segment was not as
tech- savvy as the teens.

6 Women were selected carefully through the internet

with ads on websites such as www.ivillage.com

6 nterested women were provided with more

information.

6 The screening process was similar to tremor.

6 Once selected, members receive   of the

latest P&G product.
6 Vocalpoint moms were also    
 on
latest ideas and products in home care, personal
finance, pharmaceuticals, and entertainment.

6 A -     called inside track

provided information about products and also

  
   

     
   



6 Members filled out surveys and participated in new


 

6 Members of vocalpoint were 

 to do or

say anything. They were welcome to share there
opinions with others whether it was positive or
negative.
6 The insights gained from tremor helped P&G tune
its WOM strategy to have more control over the buzz
created and increased its influence on sales.

6 The messages and packaging were & for the

vocalpoint members which made them feel  

6 As of may 2006 connecters of vocalpoint were

promoting more than '" P&G products.

6 Vocalpoint connecters  
   but, they

feel empowered because they get a voice with the
company.

6
y june 2006 P&G had enlisted around ."""""

members in its vocalpoint program
6 Success of P&G¶s WOM program was because of
4 characteristics:
- 
-

-
- 
  
Y
 

6 WOM marketing was a
  

 which
was estimated at 100 million us$ in a 150million us$ industry.

6 This type of marketing ranked amongst marketing¶s highest

growth areas.

6 More than 85% of US¶ top 1000 marketers were using some
form of WOM effort

6 They were many marketers who offered 
 

to companies which wish to design and implement WOM
marketing
6 n October 2005 a 
  was filed by the CA
(customer alert) with the FTC regarding such forms
of marketing.

6 They complained that people who were exposed to

such marketing were not aware that they were being
marketed and hence it was   .

6 They said it¶s deceptive because they are talking to a

regular person where as they are actually talking to a
.

6 nclusion of teenagers also was criticized because

teenagers are easy to deceive and tend to be more
impressionable.
6 Enlisting minors in such sophisticated marketing
programs and not requiring them to disclose their
affiliations were having    

 


6 They were using kids and asking them to engage in


 
 for the benefit of the firm

6 t led to 
 
 of human

relationships

6 t would make the public more  

 if they came to know they were being
deceived by their loved ones
6 P&G defended by saying that they were 

& 
 thus putting connectors in
full charge of what they want to say

6 They also said that since the connectors were 


  the complaints did not have any ground

6 They also said that they don¶t provide training to

talk to people and they also don¶t encourage or
discourage participants to talk about the product

6 n the end many consumers were annoyed but

another half of the population felt it was like a
person going to a supermarket ,  

   it to others if they liked it
X

6 P&G with its vocalpoint and tremor are far ahead of

other corporations as far as WOM marketing is
concerned

6 Mom¶s are the 
   among

buyers and from a business standpoint it¶s a huge
opportunity

6 Next big challenge for P&G would be to devise ways to

use WOM 
 
 


6 There is a major threat to WOM from the FTC which

 
  
  filed against it
6 FTC might even  the company in a civil court

6 The biggest problem with WOM marketing is that

it¶s a 
  
 because if the
consumers felt betrayed , their criticism would also
spread through the WOM hampering the image of
the company. N
   / 
  

 . So if a consumer
doesn¶t like a product , that word will spread faster
than if the customer was satisfied

6 On a brighter note , if vocalpoint and tremor

succeeds in the long run , it would  
+à   on the whole which
will open up many

 for smaller
marketing companies