7. *In June 1999, P&G reorganized to boost growth
after net sales slowed to 2.6% growth from the
previous year.
*P&G cut staff and promised to deliver more
innovation . Seven global business units (GBUs)
based on product categories replaced the
company’s four geographic business units.
*Three new teams supported the GBUs: a
business development team ; a venture team; and
market development organizations
8. 50% of innovation and
new products to come
from P&G’s network of
labs.
50% of new products to
come through the labs.
9.
10. Building brands is not a marketing
activity.
P&G pursued a multi-brand strategy, and
it managed brands across a category
carefully, with each getting individual
support and satisfying a segment of the
market.
11.
12. A new, intensified focus on design,
married to P&G’s long-standing focus
on product functionality and price.
design
Functionality
and price
New
product
13. How was the culture of design
inculcated in PnG?
14. • A “design tasting,” featuring design case studies for
P&G’s top 200 executives
• A P&G design board, similar to Mattel and Nike,
both notoriously strong in design.
• The Clay Street Project, bringing cross-functional
teams from their jobs elsewhere across the firm’s
global footprint to Cincinnati for 10 weeks to create
new brands based on design.
22. PnG’s word-of-mouth program.
600,000 females enrolled.
Coupons , samples and
opportunities.
Most powerful form of marketing
is an advocacy message from a
trusted friend.