How P&G evolved to adapt
to changing times and
how much of it is owed to
decisions taken by key
Brief Background (1980 - 1999)
1. Proctor & Gamble (P&G) had become a global leader in branded consumer goods.
2. It was the first company to advertise directly to consumers in the 1880’s, and
invented ‘soap operas’ that targeted women.
3. Through its continued efforts, P&G remained a global leader and this case elucidates
the strategies followed by P&G to adapt to the changing times.
1. In the 1980s, P&G ramped up its global expansion and developed its first global
brands, including Always/Whisper, Pringles, and Pantene.
2. P&G used the following approach to enter new market–
• Acquisition or joint venture on a small scale
• Through trial and error, learn the formula for success before making a major
Who were the key players which guided P&G’s
Alan G. Lafley
2000 - 15
2001 - 08
2001 - 08
Key Decisions taken during Yager’s Term
1. P&G reorganised to boost growth after net sales had dropped to 2.6% growth.
2. P&G led a retrenchment of 15,000 staff.
3. 7 Global business units (GBUs) replaced company’s 4 Geographical business units,
4. To support GBUs following teams were commissioned:
• Business development team focusing on innovating in existing categories
• Venture Team tasked with acquiring brands in new areas
• Market development organisations tasked with performing intensive market
Led to the successful product introductions:
• Swiffer Dusters
• Olay Regenerist
• Crest Whitestrips
• Crest Spinbrush
Firm struggled to control costs, and its stock slid from $118 to $52 over 18 months.
Alan G. Lafley had to take over.
Key Decisions taken during Lafley’s Term
1. Lafley named Jim Stengel as the Chief Marketing Officer.
2. Lafley created a new design unit and named Claudia Kotchka as Vice President for
design innovations and strategy.
3. Emphasis shifted to consumer-centric marketing.
4. P&G’s brands faced two moments of truth:
• On the store shelf
• When the consumers used the product and decided if it delivered on its promise
Key Decisions taken by Jim Stengel
1. Stengel brought a sharper focus to return on digital marketing investment (ROMI)
• Implying – shift from TV and print to digital and direct marketing
2. Stengel and P&G developed metrics to measure brand loyalty and consumer
Key Decisions taken during Kotchka’s Term
1. Sought to bring design to every step of product development
• Hosted ‘design tasting’
• Created P&G design board similar to Mattel and Nike
• Created clay street project
2. P&G used design not as an antidote but as a complement