The company has linked with MTV, Galaxy and Kiss FM and performers such as Joe and Sway to create workshops, events and TV and radio programmes.
Created by the branded content agency Hubbub, the music social network Xtaster and Spring PR, the campaign encourages budding rappers and bands to create their own demos and upload them to www.hugofragrances.com.
The best performers will be invited to workshops in London, Manchester and Birmingham and one winner will be selected from each to perform at a series of events where they will share the stage with well-known artists.
MTV is filming each event and will create a programme to be broadcast on MTV UK and MTV Base. Galaxy will broadcast a show from the Birmingham and Manchester concerts, while Kiss will cover the London show. The winners will also record a track to be featured on a branded CD.
Chris Chinaloy, the brand manager for Hugo Fragrances at P&G, said: "Hugo wanted to invest in urban culture by creating Hugo Urban Rules to discover new talent."
Anna Watkins, the managing director of Hubbub, added: "It's a real sign of the shift in emphasis from content sponsorship to content creation that P&G has committed to such and ambitious programme of events, music releases and advertiser-funded programming."