Technological Innovation and R&D
Management
Case Study – P&G
By 8711813 林榮俊
P.1
Outline
Company profile and history
Product portfolio
Strategy
 Example : Organization
 Strategy in Great China
Conclusion
P.2
P&G Profile (I)
Purpose :
We will provide branded products and services
of superior quality and value that improve the
lives of the world’s consumers. As a result,
consumers will reward us with leadership sales,
profit and value creation, allowing our people, our
shareholders, and the communities in which we
live and work to prosper.
P.3
P&G Profile (II)
Value :
 Leadership
 We are all leaders in our area of responsibility, with a deep
commitment to deliver leadership results.
 We have a clear vision of where we are going.
 We focus our resources to achieve leadership objectives and
strategies.
 We develop the capability to deliver our strategies and
eliminate organizational barriers.
 Ownership
 We accept personal accountability to meet the business needs,
improve our systems and help others improve their
effectiveness.
P.4
P&G Profile (III)
 We all act like owners, treating the Company’s assets as our
own and behaving with the Company’s long-term success in
mind.
 Integrity




We always try to do the right thing.
We are honest and straightforward with each other.
We operate within the letter and spirit of the law.
We uphold the values and principles of P&G in every action
and decision.
 We are data-based and intellectually honest in advocating
proposals, including recognizing risks.
 Passion for Winning
 We are determined to be the best at doing what matters most.
P.5
P&G Profile (IV)
 We have a healthy dissatisfaction with the status quo.
 We have a compelling desire to improve and to win in the
marketplace.
 Trust
 We respect our P&G colleagues, customers and consumers,
and treat them as we want to be treated.
 We have confidence in each other’s capabilities and intentions.
 We believe that people work best when there is a foundation
of trust.
P.6
P&G history
1837~1889 : The Partnership Year
1890~1945 : A Company Built on Innovation
1946~1979 : New Lands and Dynamic Growth
1980~1999 : A Global Company
Since 2000 : Today
P.7
1837~1889 : The Partnership Year
The Partnership Year
1837 was a difficult time to start a business.
Although Cincinnati was a bustling marketplace, the
U.S. was gripped by financial panic. Hundreds of
banks were closing across the country. There was
widespread concern that the United States was
bankrupt. Yet, William and James launched their new
enterprise, more concerned about how to compete
with the 14 other soap and candle makers in their city
than with the financial panic shaking their country.
P.8
1890~1945 : A Company Built on
Innovation
A Company Built on Innovation
By 1890, P&G was selling more than 30 different
types of soap, including Ivory. Fueled by full-color
print ads in national magazines, consumer demand
for P&G soaps continued to grow. To meet this
increasing demand, the Company expanded its
operations outside Cincinnati, with a plant in Kansas
City, Kansas, followed by a plant in Ontario, Canada.
As each new plant opened, P&G would embark on
plans for another.
P.9
1946~1979 : New Lands and Dynamic
Growth
New Lands and Dynamic Growth
In 1946, P&G introduced Tide, its most important new
product since Ivory. Tide was remarkably superior to
other products on the market, and it quickly became
an enormous success – so successful, in fact, that it
helped fund the Company’s rapid growth not just into
new product lines but also into new markets around
the world.
P.10
1980~1999 : A Global Company
A Global Company
As it approached its 150th anniversary in 1987, P&G
was poised for the most dramatic period of growth in
its history. The Company that began as a small
Midwestern partnership had grown into one of
America’s largest multinational corporations. Two
important changes marked this dynamic period. First,
the Company emerged as an important new player in
health care (through the acquisitions of Norwich
Eaton Pharmaceuticals and Richardson-Vicks and
the opening of the Health Care Research Center in
Cincinnati) and in cosmetics and fragrances (with the
acquisitions of Noxell, Max Factor, Ellen Betrix and
Giorgio of Beverly Hills).
P.11
1980~1999 : A Global Company
A Global Company
Second, P&G expanded its globalization plans. The
Company established a worldwide research and
development network, with research hubs in the
United States, Europe, Japan and Latin America, and
built a solid foundation of truly global brands. These
brands include Pantene Pro-V, Always/Whisper, Ariel
and Tide, Crest, Pampers, Vicks and Oil of Olay.
P.12
Product Portfolio (I)
以製造肥皂起家、具
有169年歷史的家庭用
品廠商寶僑（P&G），
在臺灣市場以幫寶適
尿布、潘婷洗髮乳、
好自在、SK II和歐蕾、
品客洋芋片等產品，
打進每一個家庭。
P.13
Product Portfolio (II)
Multi-Brands and variety of products
P.14
P&G Strategy
High –Tech Production
 To setup the product to be the first tier
 To keep the innovation in the commodity product
High-Tech Marketing
 Variety product management
 Customer Relationship Management
High-Tech Finance
 To keep the technology innovation and develop
 M&A (merge and acquire)
P.15
Engineering Function and
Information Function
 從1998年開始，寶僑進行世界性的組織變革：P＆G
2005組織改革方案
A.G. Lafley, who became CEO in June 2000, reaffirmed
P&G's Purpose and Values and refocused the Company on
the few choices necessary to get the business back on track:
growing its leading categories and brands with its largest
retail customers in its top geographic markets while
accelerating growth in health, beauty and personal care and
in fast-growing developing markets. In the five years that
followed, P&G increased sales more than 40%, doubled
profits, generated more than $30 billion in free cash flow,
and delivered more than $70 billion in shareholder value.
P.16
Example : Organization
GBS（Goble Business Service)
 IT、財會、訂單管理
GBU（Globe Business Unit）；
 攸關寶僑各種品牌相關策略和研發部門
MDO（Marketing Developing Organization）。
 產品真正推到市場上的業務行銷部門
P.17
Strategy in Great China
To start with the local Partner
 To reduce the learning cycle and fast to market
 To reduce the risk in new market
To be the leader with good advertisement
 To build up the brand image
 To be the fist choice of the customers
P.18
Summary
Focus on a product and to be the leader in that
field
 Technology Innovation
Growth with the series product in the relate field
and also to be leader
 Hi-Tech Marketing
Growth by product merged
 Hi-Tech Finance
Multi Brands management
 Information system and retail system management
P.19