Neil McElroy

Neil McElroy (1904–1972) was a Procter & Gamble (P&G) executive credited with formalizing modern brand/product management through his 1931 memo. His concept revolved around decentralized decision-making, empowering brands to function as independent entities. Later, as P&G’s president and U.S. Secretary of Defense (Office of the Secretary of Defense), he championed scalable organizational structures. In 1958 he contributed in the establishment of NASA (Office of Historian).

In 1931, McElroy worked at Procter & Gamble (P&G). As a junior executive he was managing the advertising campaign for the Camay brand of soap. McElroy was frustrated by internal competition between P&G’s Camay and Ivory soap brands. He proposed creating dedicated “brand men” to oversee not more than two brands. They were early brand/product managers responsible for overseeing specific product lines. This innovative system would eventually be adopted by consumer product companies across the U.S. He quickly climbed the corporate ladder, becoming president of P&G in 1948. (Wikipedia).

Neil McElroy’s 1931 Brand Man Memo (Wikipedia).¹

Camay Soap achieved global success for Procter & Gamble, with sales in over 60 countries. McElroy’s contributions had a major impact on marketing strategies and product management both domestically and internationally. What lessons can we derive from them?

Responsibility	Details
Study shipments of his brands by units	Analyze distribution trends and guarantee smooth supply chain operations.
Where brand development is heavy and progressing	Examine the success factors in thriving territories and apply them to similar regions.
Where brand development is light	(a) Study past advertising and promotional efforts. (b) Personally investigate the region’s weaknesses by engaging with dealers and consumers. (c) Develop actionable plans tailored to underperforming areas. (d) Collaborate with division managers to implement corrective actions.

The Role of the Brand Man

Neil McElroy wrote this memo to outline the need for extra manpower in the Promotion Department. He sought to clarify the duties of “Brand Men,” focusing them exclusively on the management of specific brands.

Tiered Product Team

“In past years the brand men have been forced to do work that should have been passed on to assistant brand men, if they had been available and equal to the job.

The brand men in the past have unfortunately been tied up too closely to their office work because their assistants have had to be out of the office on field check-ups a large share of the time. A great majority of these checking jobs could be handled by less responsible men than assistant brand men.

We believe that we can relieve the entire situation by adding to our organization two men – and perhaps more as their need is felt – whose duties would be field checking on all products. These men would relieve the assistant brand men of good share of their traveling. This, in turn, would allow the brand men to pass over to their assistants office work which is keeping them from their more important field studies.”

—McElroy, 1931.

These statements highlight the inefficiencies caused by the lack of resources, skills, proper delegation and support within the organization. He emphasized the need for assistant brand men, group products check-up men, and advocated for a tiered structure. This structure allowed senior brand managers to focus on strategic decision-making and delegate operational tasks to the team members. This approach ensures that critical resources are optimally skilled, utilized and that the workload is appropriately distributed.

From this quote, modern product and revenue teams can derive several actionable insights:

Lessons Learned	Modern Best Practices	Description
Delegation: Senior roles should focus on strategy rather than tasks better handled by others.	Empower Strategic Focus: Delegate operational tasks to specialized team members.	✅ Strategic Leadership: Senior roles focus on high-level decision-making. ✅ Task Delegation: Routine and operational tasks are assigned to team members with the right expertise. ✅ Enhanced Efficiency: This division of labor improves overall team performance.
Scalability: Teams must expand with clear hierarchies to avoid inefficiency.	Establish Clear Structures: Define roles and reporting lines as the team grows.	✅ Organizational Design: Create and maintain an organizational chart that supports growth. ✅ Clear Reporting: Define clear lines of authority to prevent overlap. ✅ Efficiency: A structured hierarchy minimizes confusion and streamlines decision-making processes.
Skills and Talent Development: Structure teams based on skills and responsibilities to ensure ownership and alignment with business goals.	Align Roles with Competencies: Develop teams by matching individual skills to specific responsibilities.	✅ Skill Assessment: Regularly evaluate team members’ strengths and areas for development. ✅ Role Clarity: Assign responsibilities that align with each member’s expertise. ✅ Continuous Development: Encourage ongoing learning to keep skills aligned with evolving business needs.

Responsibilities of the Brand Man

“Study carefully shipments of his brands by units.”

—McElroy, 1931.

This directive emphasizes the need to monitor brand performance quantitatively. By tracking shipments in terms of units, managers gain insight into product demand and market dynamics. This metric can signal successes or issues in the brand’s distribution and overall performance.

Lessons Learned	Modern Best Practices	Description
Monitor Quantitative Metrics	Implement Real-Time Analytics	✅ Dashboard Setup: Use Analytics and BI tools to track unit shipments and sales in real time. ✅ KPI Tracking: Monitor key performance indicators related to sales. ✅ Cohort Analysis: Use cohort analysis for understanding long-term customer behavior.
Analyze Trends and Variations	Utilize Data Visualization Tools	✅ Historical Analysis: Compare current shipments against historical data. ✅ Identify Patterns: Detect seasonal or regional trends to forecast demand.
Integrate Data into Decision-Making	Foster Cross-Functional Collaboration	✅ Holistic Insights: Share shipment data with sales, marketing, and supply chain teams. ✅ Informed Strategy: Use insights to adjust marketing and operational plans.

“Where brand development is heavy and where it is progressing, examine carefully the combination of effort that seems to be clicking and try to apply this same treatment to other territories that are comparable.”

—McElroy, 1931.

McElroy directs managers to focus on markets with strong brand development. He advises that leaders should analyze the mix of efforts driving success in these areas. Once the winning strategies are understood, they should be replicated in other similar territories to stimulate growth.

Lessons Learned	Modern Best Practices	Description
Identify Successful Markets	Utilize Data Analytics for Market Segmentation	✅ Segment markets: Use analytical tools to identify high-performing regions. ✅ Benchmark metrics: Compare performance indicators across territories.
Analyze Winning Strategies	Conduct Detailed Performance and Root-Cause Reviews	✅ Review campaigns: Evaluate marketing and operational tactics that drive success. ✅ Document key factors: Identify elements that contribute to high performance.
Replicate Proven Efforts	Implement Pilot Projects in Similar Territories	✅ Test replication: Launch controlled pilots in comparable markets. ✅ Monitor outcomes: Adjust strategies based on pilot feedback and measurable results.

“Where brand development is light:

• Study the past advertising and promotional history of the brand; study the territory personally at first hand – both dealers and consumers – in order to find out the trouble.
• After uncovering our weakness, develop a plan that can be applied to this local sore spot. It is necessary, of course, not simply to work out the plan but also to be sure that the amount of money proposed can be expected to produce results at a reasonable cost per case.
• Outline this plan in detail to the Division Manager under whose jurisdiction the weak territory is, obtain his authority and support for the corrective action.”

—McElroy, 1931.

In weak markets, McElroy urges managers to conduct a thorough review of past advertising and promotional efforts. He advises studying territories firsthand by engaging with both partners and consumers to uncover underlying issues. After identifying weaknesses, managers must develop a tailored corrective plan that includes detailed cost analysis. Finally, the plan should be clearly outlined to local leadership to secure the necessary authority and support for corrective actions.

Many of the concepts McElroy developed for the “Brand Men” are now commonly referred to as “Customer or Solution Discovery” or “Voice of the Customer.”

Lessons Learned	Modern Best Practices	Description
Thorough Market Analysis	Implement Comprehensive Field Research	✅Gather Historical Data: Review past advertising campaigns and promotions. ✅Direct Engagement: Conduct in-person interviews with dealers and consumers.
Develop Cost-Efficient Corrective Plans	Adopt Agile, Data-Driven Planning	✅Tailor Strategies: Create plans that tackle specific product issues. ✅Budget Forecasting: Use planning tools to estimate costs and expected ROI accurately. ✅Integrate Unit Economics: Analyze cost per unit or per case to make sure investments yield efficient operational and scalable results.
Secure Local Stakeholder Support	Enhance Communication with Regional Leaders	✅Detailed Presentations: Clearly outline corrective actions and expected results to the leadership. ✅Obtain Buy-In: Secure approval and support from key decision-makers.

Key Idea: Want your product to succeed?

“Get out of the building.”

—Steve Blank.

“Take full responsibility, not simply for criticizing individual pieces of printed word copy, but also for the general printed word plans for his brands.

Take full responsibility for all other advertising expenditures – Field, D.C.A, ete. – on his brands.

Experiment with and recommend wrapper revisions.”

—McElroy, 1931.

McElroy instructs brand men to take complete ownership of their brands’ advertising. He insists they oversee not just individual printed pieces, but the overall printed word plans (strategic blueprints). He also expects them to manage all advertising expenditures, including field and Direct Consumer Advertising costs. Additionally, he encourages experimentation with packaging, such as wrapper revisions, to refresh the brand’s image.

Lessons Learned	Modern Best Practices	Description
Comprehensive Ownership	Adopt Holistic Brand/Product Management	✅Oversee all awareness channels: Manage printed, digital, and field advertising and demand generation. ✅Ensure consistency: Align all efforts with the overall product strategy.
Accountability	Implement Integrated Budget Management	✅Centralize tracking: Use metrics and dashboards to monitor spending and performance in real time. ✅Optimize Unit Economics and ROI: Regularly evaluate expenditures to guarantee cost efficiency.
Continuous Innovation	Foster a Culture of Creative Experimentation	✅Test new designs: Regularly experiment with the user experience, packaging and wrapper revisions. ✅Iterate quickly: Use consumer feedback to refine and improve creative elements.

See each District Manager a number of times a year to discuss with him any possible faults in our promotion plans for that territory.”

—McElroy, 1931.

McElroy emphasizes the importance of regular, face-to-face interactions between brand men and district managers. These meetings aim to identify and address any shortcomings in promotional strategies within specific territories. By fostering open communication, managers can collaboratively refine and optimize promotional plans to better suit local market conditions.

Lessons Learned	Modern Best Practices	Description
Regular Communication with Field Teams	Management System and Cadence	✅Regular Meetings: Establish a regular cadence for discussions between brand and district managers. ✅Feedback Loops: Create channels for continuous feedback and reporting on promotional activities.
Collaborative Problem-Solving	Engage in Joint Strategy Sessions	✅Shared Analysis: Work together to assess effectiveness and identify areas for improvement. ✅Co-Develop Solutions: Leverage combined insights to tailor strategies for specific territories.
Adaptation to Local Markets	Customize Growth Activities Based on Regional Insights	✅Local Intelligence: Utilize local managers’ knowledge of their territories to inform promotional tactics. ✅Flexibility: Be willing to adjust plans to better align with local consumer behaviors and preferences.

“In short, when the brand men have approached their fullest responsibilities, they should be able to take from the shoulders of the Division Managers and of the District Managers a very heavy share of individual brand responsibility. This would leave the sales heads in a much freer position to administer the sales policies of the Company and apply general volume pressure without having to give such a large proportion of their time to thought on how to bring up volume on a certain brand in a certain part of the territory.”

—McElroy, 1931.

McElroy emphasizes that as brand managers fully embrace their responsibilities, they should alleviate the burden on Division and District Managers. This shift allows sales leaders to focus on overarching company sales policies and strategies, rather than concentrating on boosting specific brand volumes in particular regions.

Lessons Learned	Modern Best Practices	Description
Empower Product Managers	Delegate Comprehensive Oversight	✅Full Accountability: Assign managers complete responsibility for their brands/products’ performance. ✅Strategic Autonomy: Enable managers to make decisions that drive growth.
Relieve Upper Management Workload	Streamline Managerial Focus	✅Operational Efficiency: Allow senior managers to concentrate on company-wide sales strategies. ✅Reduced Micro-Management: Minimize the need for senior managers to intervene in individual product issues.
Enhance Organizational Effectiveness	Foster Specialized Roles and Separation of Duties	✅Role Clarity: Define clear responsibilities for brand managers and sales leaders. ✅Improved Performance: Encourage each role to focus on their strengths, leading to overall organizational success.

Responsibilities of the Assistant Brand Man

McElroy outlines the key responsibilities of the Assistant Brand Man, emphasizing their role in supporting the Brand Man.

“Take care of the office work which will have been laid out by the brand man, which must be followed through, checked and edited,

Make field studies as directed by the brand man.

Keep in touch with all printed word, field and D.C.A. plans.

Finally, be able to step into the shoes of his superior at a moment’s notice.”

—McElroy, 1931.

Lessons Learned	Modern Best Practices	Description
Effective Delegation and Oversight	Implement Robust Task Management Systems	✅Task Tracking: Utilize project management tools to assign, monitor, and review tasks. ✅Quality Assurance: Establish protocols for checking and editing work to maintain high standards.
Leadership Preparedness	Develop Succession Planning Programs	✅Skill Development: Engage in continuous learning and professional development. ✅Mentorship Opportunities: Participate in mentorship to prepare for potential leadership roles.

Enduring Legacy

Neil McElroy’s 1931 memo laid the foundation for modern brand, product, and revenue management. His approach to structured team management remain highly relevant. By fostering full accountability, delegation, structured mentorship, and workload balance, organizations can drive product efficiency and innovation.

How do such principles influence your product management strategies? Share your insights and best practices in the comments below. For more product management content, subscribe to our newsletter.

1. McElroy, Neil. “Neil McElroy’s 1931 Brand Man Memo.” Procter & Gamble, 1931. URL: https://upload.wikimedia.org/wikipedia/commons/7/70/Neil_Mcelroy%27s_1931_Brand_Man_Memo.pdf. ↩︎