This recent Advertising Age article by Matthew Creamer describes an important development at P&G. It illustrates the many ways in which the world's largest packaged-goods company is reinventing marketing and its fine-tuned TV advertising model. The idea of using a cohort segmentation, which is presented in the article, is great and makes a one-to-one marketing approach feasible for companies like Procter & Gamble.
Impressive are the numbers: P&G is targeting 60 million consumers – more than half of all American households.
However, I wonder why P&G just focuses on cohorts of consumers. There isn’t much change in the cohort for Tide or Pantene - these are products which can be used by a consumer for a long, long time. Yes, perhaps for Pampers, there is a stage in life where one enters the market as a parent of a user and where one leaves the market.
I think a much bigger opportunity for Procter & Gamble is to think of the 1,440 minutes in consumers’ everyday life and segment the market not by people, but by the activities, the projects, tasks and concerns in those moments we all live every day. For example, the company could focus on consumer moments like: daily chores when a new baby is in the home. This would focus P&G’s 86 brands around helping people, whether mom or dad or grand parents or nanny in taking care of those chores that take away from spending time with the new baby.
The idea behind this segmentation is not a segmentation of persons but a much more meaningful segmentation of activities, projects or tasks. I call this segmentation the development of “growth platforms” in my new book: Hidden in Plain Sight. By looking at the world, not from the traditional perspectives of brands or products, the 86 brands of Procter & Gamble in this case, and by also not just looking from the consumer perspective or any segment perspective, totally new opportunities in plain sights are revealed.
If Procter & Gamble can change their success model of mass marketing, how many other companies will be able to follow in their footsteps? Do you think this approach is only applicable to companies like Procter & Gamble with 86 brands?