Procter & Gamble in 2004: Managing Product Innovation

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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.

Case Details:


Case Code : BSTA102 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges


Case Length : 20 Pages
Period : 1837-2004
Organization : Procter & Gamble (P&G)
Pub Date : 2004
Teaching Note : Not Available
Countries : Global, USA
Industry : Consumer Goods


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%.


  Page No.
Introduction 1
Background Note 2
Business Segments 4
Market Research 7
Developing New Products 9
Brand Management 11
The Road Ahead 12
Exhibits -


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

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