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Case Title:

A G Lafley: Innovating P&G's Innovations

Publication Year : 2004

Authors: Dakshi Mohanty, T Phani Madhav

Industry: Home Appliances and Personal Care Products


Case Code: IPD0010

Teaching Note: Available

Structured Assignment: Available

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Procter & Gamble Co. (P&G), one of the world's largest consumer products companies, failed to double its sales between 1990 and 2000 – a goal that it had met in each decade since 1940. During that period, the company reported a slump in the growth of its sales and its market value plunged. By all accounts, the then CEO of the company, Durk I. Jager had tried to implement too many changes too quickly. He had introduced a slew of new products that failed to generate revenues. Jager was ousted after only 17 months at the top – the shortest tenure of a CEO ever at P&G. In June 2000, Alan George Lafley, a P&G veteran for 23 years, took over the reins of the company. In contrast to Jager, Lafley directed the company's focus on the established brands such as Pampers, Crest and Tide.

Pedagogical Objectives:

  • To discuss Lafley's renewed focus on innovation to improve the sales and profits of the company
  • To discuss the different strategies adopted by Lafley to accelerate the innovation process
  • To discuss as to which strategy for growth is better - focusing on incremental innovation of existing products or taking a radical approach to innovation and introducing new products that can create growth opportunities for the company.

Keywords : Procter & Gamble (P&G); AG Lafley; Durk I. Jager; Organisation 2005; 360-degree innovation; Connect and develop; Billion-dollar brands; Tide; Crest; Pampers; Kimberley-Clark Corp.; Innovation Management Case Study; Colgate-Palmolive Co; Unilever


  • Introduction
  • The early in innovations
  • Lafley and "The Innovation-Focus"

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