Product details

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 (Chief Executive Officer) 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. This case study details Lafley''s renewed focus on innovation to improve the sales and profits of the company. The case also outlines the different strategies adopted by Lafley to accelerate the innovation process. It offers scope to discuss which strategy for growth is better - focusing on the incremental innovation of existing products or taking a radical approach to innovation and introducing new products that can create growth opportunities for the company. A structured assignment ''304-599-4'' is available to accompany this case.