Procter & Gamble in 2004: Managing Product Innovation
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTA102 |
Electronic Format: Rs.
500;
Courier (within India):Rs. 25 Extra
Themes- |
| Case Length |
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20 Pages |
| Period |
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1837-2004 |
| Organization |
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Procter & Gamble (P&G) |
| Pub Date |
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2004 |
| Teaching Note |
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Not Available |
| Countries
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Global, USA |
| Industry |
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Consumer Goods |
Abstract:
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Procter & Gamble (P&G) is one of the most well known consumer goods marketing companies in the world. When Alan Lafley became the CEO of P&G in the summer of 2000, things were not looking good. Under his predecessor, Dirk Jager, costs had gone up, volumes stagnated and profit margins had shrunk on P&G's biggest brands like Pampers, Tide, and Crest. The case explains how P&G manage product innovation and how it streamlines the idea generation, test marketing and new product development processes. In the process, P&G has improved its new-product hit rate (the percentage of new entries that deliver a return above the cost of capital) from 70% to 90%.
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Contents:
Keywords:
Procter & Gamble (P&G), Product innovation, Alan Lafley, Dirk Jager, Pampers, Tide, Product hit rate, Brand management, Crest, Market research, Fabric and home care, Beauty care, Health care, Baby and family care
Procter & Gamble in 2004: Managing Product Innovation
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