P&G’s Design Initiative Reaping Results


One of the traits of a good dividend paying company it is continuously evolving over time. What keeps such companies successful is their ability to recognize the changes in market place and adapting to the new needs. Last week, I highlighted Sysco’s initiative to adapt to changing market place. Today I am moving over to Proctor and Gamble’s industrial design initiatives that has enabled it to continuously increase its market footprint.

P&G has more than 200 plus brands of which approximately 30 bands rake in about billion dollar revenue every year. P&G sells shampoos, toothpaste, toothbrush, shaving razors, diapers, soaps and detergents, tissue papers, etc. The actual products itself are mature and does not have any path breaking innovation (e.g. Shampoo, what will be the path breaking innovation? at the most tweaks?). The challenge for P&G is not about selling these products to consumers. Instead, it is about how to grow continuously, it is about how to maintain the sustainability of its income, and it is about making consumers to pay same (or more) year after year. continue reading rest of the article….

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