Proctor and Gamble Case

Running Head: The Game Changer

The Game Changer

EDD 8102

Lezlie Gollab Lewis

Capella University

February 10, 2013

In the middle of 2000, Proctor and Gamble was losing in the marketplace, missing financial commitments to investors, and losing market share to key competitors (pg.31). One of the root causes is that Proctor and Gamble experience poor social interaction with their customers. Customers did not have enough interest with using P&G products. A.G. Lafley, the new CEO, made the decision to focus on innovation as the core strength throughout the company (pg.32).

Proctor and Gamble was a company that made a big impact on the way that businesses offered products to its customers by considering the wants, needs, and desires of their clients (pg.31). After meeting with each department head the CEO reviewed the vision, mission, and operational alignment statement. He decided that the company needed to put the consumer at the forefront making "the customer the boss". He also reviewed the quality of the products offered. In each of company's businesses, they were practicing some form of innovation improvement but they were not all improving at the same rate. New ideas had to be implemented to center on the needs of their customers. Lafley felt that the consumer should be elated when a product was purchased.

The company made sustainable organic growth a priority. Lafley and Charan 2010 stated, "Organic growth is less risky than acquired growth and more highly valued by investors". This strategy helped the company by increasing the emphasis on core brands like Tide and Crest. These brands gained a few points in the market share which resulted in increased revenue. To have continuing organic growth, the company needed to innovate. Innovation enables expansion into new categories.

P&G started an innovation program in which they created research departments to seek knowledge about the consumers. In the past there were many experiments which provided quantitative research data. Most of the company's consumers are women, and the focus was mostly on her mouth for oral care products, her hair for shampoo, and her loads of dirty clothes for laundry detergent. Proctor and Gamble recognized that it needed to look at consumers more broadly, and moved away from traditional focus groups to more immersive research techniques.

The worldwide demand for P&G's products and services has forced management to focus on global marketing and innovation. In 2001, P&G developed the consumer closeness program to create experiences which enables employees to live with lower income consumers for several days in their homes, eat meals with the family, and to go along on shopping trips. This gives them the insight into why shoppers buy or do not buy a product. It also shows how the grocery keeper stacks the shelves and what kind of business propositions is appealing.

Selected P&G employees were sent to Mexico to live among the people where lower class Mexican women take laundry seriously. Proctor and Gamble found that Mexican women spend more time on laundry than on the rest of their housework combined. The brand manager for Downy assess from the data analysis that Mexican women liked to use softener. Although doing laundry was difficult, time consuming, and large amounts of water which was scare in some parts of the country Mexican women wanted to continue using the softener.

P&G launched a large scale quantitative research. Identifying the problem in Mexico the company turned to the labs for answer. Their solution was single rinse instead of a six step process. Washing was reduced to three steps by adding softener, rinse saving enormous time, effort, and water. Proctor and Gamble had produced a low cost valuable product and high profit returns. The company has demonstrated that its success depended on its customers, employees, and new innovation. P&G recognized its diversity as a unique characteristics and strength. They have demonstrated that it is not just in the business to maximize shareholders wealth but it is also a social responsible company.

Similarly to the P&G initiative, Reedy Creek Elementary have examined how the low quartiles students can increase learning gains through improve interventions, professional development, new innovative technology labs, and organize leadership team. The leadership team reviewed