Innovation framework on P&G-Consulting Project

1. Input Slides. Innovation.
Alex Hodgson Sunil Gupta Dilip Chatulingath Mark Morgan Divyan Gupta Wei Tak Nyou

2. Where is P&G now and Where is it Going?
Company Context Strategic Thrust
• Development of new business portfolio
• Company Size (Revenues/ Employees):
• Value proposition: providing products with
– $83 B/ 138,000
superior quality and value that improves the
• Offering (products):
lives of the world’s consumers
– Personal and beauty, house and
• Looking to expand into premium market
home, health and wellness, baby and
family, pet nutrition and care • Enrich product portfolio
• Geographic Scope: • Long term customer relationships
– Multinational - 180 countries
• Market Position:
– Industry leader in specific verticals
Drivers Barriers
•
• Consumer acceptance for premium products
Saturation in current markets
• P&G traditional image as mid-market player
• Diverse product catalogue
• Potential for cannibalization of existing
• Multinational distribution and
products
multichannel capabilities
• Highly correlated to recessions
• Searching for new innovative product

3. Where is the Industry Going?
Macro Trends Competitors
• Beauty for Men • Unisex products
• Portfolio Diversification • Mineral based cosmetics
• Fashion Conscious • Mid Segment Focus
• Anti -Ageing Products • Green and Organic Product Lines
• Status Spending
• Organic cosmetics
Consumer Trends Technology
• Price Sensitive • Multifunctional products
• Natural Ingredients • Durable products
• Brand Conscious • Innovative Packaging
• Customization of Products and Services • Long lasting cosmetics
• High Personal Care Focus
• Pampering
• Beauty for Dogs

4. Trend Mapping and P&G
1.Beauty for Dogs
1
4 5 2. Beauty for Men
High
3. Unisex
9 4. Fashion
5. Anti-Ageing
6. Organic Cosmetics
3 7. Price Sensitive
8. Brand Conscious
6
9. Long Lasting
10. Innovative Packaging
Impact
2
10
7
8
Low
Low Uncertainty High

5. Overall Business Opportunity Map
Competitors Partners P&G Future
Health Care Personal Premium products
Markets Health Care Personal
Beauty Channels Multi-purpose Pets Niche
Home care Pet nutrition and
Home care Pet nutrition
Consumers care Beauty Health care Wellness Beauty for men Teen make-up
Beauty Health and wellness Stage make-up
Health and wellness Baby Baby and family
Customers Baby and family Industrial products
and family
Health Care Personal Trendy and fashionable
Value for money Functional
Wide range Nutrition
Home care Pet nutrition and
Accessible in market Reliability Accessible
Needs and benefits care Beauty Multipurpose Basic products
Readily available Safe Easy to use
available Easier
Health and wellness Baby Readily available
Care for pets
and family
GNC Online Catalogues
CVS
CVS APPA – American Pet products Business /Fashion magazines
Pharmacies Pharmacies
association
Channels Speciality stores Spas Gyms
Retail outlets Supermarkets Retail outlets Supermarkets
Dog grooming parlours High end clubs Exclusive Vets
Online web pages Online web pages
Macy’s etc Salons
Health Care Personal All-in-one Fashionable
Products/ Health Care Beauty Personal
Beauty Channels
Home care Pet nutrition and Beauty consultants
Home care Pet nutrition
Health care Wellness
care Beauty Fashion advisory Beauty
Services Health and wellness Baby and
Target 45+ generation
Health and wellness Baby Baby and family
family Singles Functional
Make-up counters
and family
Unique designs, trendy
Competencies Infrastructure Technology
Organic Manufacturing
Stylish Creative
All-in-one
R&D facilities Innovation labs
Technology Unique designs in packaging Innovative Designers Durable All-in-one
Packaging Capabilities
Trendy High Quality Pet grooming Anti-ageing
Make-up labs and R&D facility
Distribution centres
Know How I-robot technology
High end stores Exclusive
Multinational Multinational Multi-national
Training centres Global facility
Physical Assets R&D facilities Brand presence and DC’s R&D facilities
Teenage exclusive stores
DC’s acceptability Gillette

6. Identifying Field of Play: Beauty for Men
Competitors Partners P&G Future
Health Care Personal
Markets Health Care Personal
Premium products
Beauty Channels
Home care Pet nutrition and
Home care Pet nutrition Multi-purpose Pets Niche
Consumers care Beauty Health care Wellness
Beauty Health and wellness Beauty for men Teen make-up Stage
Health and wellness Baby Baby and family
Customers Baby and family make-up Industrial products
and family
Health Care Personal Trendy and fashionable
Value for money Functional
Home care Pet nutrition and Wide range Nutrition
Accessible in market Reliability Accessible
Needs and benefits Multipurpose Basic products
care Beauty
Readily available Safe Easy to use
available Easier
Health and wellness Baby Readily available
and family Care for pets
GNC Online Catalogues
CVS
CVS APPA – American Pet products
Magazines Salons Macy’s
Pharmacies Pharmacies
association
Channels Spas Gyms
Retail outlets Supermarkets Retail outlets Supermarkets Speciality stores
Dog grooming parlours
Online web pages Online web pages High end clubs Vets
Health Care Personal All-in-one Fashionable
Products/ Health Care Beauty Personal
Beauty Channels
Home care Pet nutrition and Beauty consultants
Home care Pet nutrition
Health care Wellness
care Beauty
Services Fashion advisory Beauty
Health and wellness Baby and
Health and wellness Baby Baby and family Target 45+ generation
family Singles Functional
and family Make-up counters
Infrastructure Unique designs, trendy
Competencies
Organic Manufacturing
Stylish Creative
All-in-one Technology Innovation labs
Technology Unique designs in packaging Innovative Designers Durable All-in-one
Packaging Capabilities
Trendy High Quality Pet grooming Anti-ageing
Make-up labs and R&D facility R&D facilities
Know How I-robot technology
Distribution centres
High end stores Exclusive
Multinational Multinational
Multi-national Training centres Global facility
Physical Assets R&D facilities Brand presence and
DC’s R&D facilities Teenage exclusive stores
DC’s acceptability

7. Identifying Field of Play: Wellness for Baby Boomers
Competitors Partners P&G Future
Health Care Personal Premium products
Markets Health Care Personal
Beauty Channels Multi-purpose Nutrition
Home care Pet nutrition and
Home care Pet nutrition
Consumers care Beauty Health care Wellness Niche Beauty for men
Beauty Health and wellness Wellbeing Stage make-up
Health and wellness Baby Baby and family
Customers Baby and family Industrial products
and family
Health Care Personal Trendy and fashionable
Value for money Functional
Wide range Nutrition
Home care Pet nutrition and Accessible in market Reliability Accessible
Needs and benefits care Beauty Multipurpose Basic products
Readily available Safe Easy to use
available Easier
Health and wellness Baby Readily available
Care for pets
and family
CVS GNC Online Catalogues
APPA – American Pet products CVS Pharmacies
Pharmacies Business /Fashion magazines
association
Channels Retail outlets Supermarkets Speciality stores Spas Gyms
Retail outlets Supermarkets
Dog grooming parlours Online web pages High end clubs Exclusive Vets
Online web pages Macy’s etc Salons
Health Care Personal
Products/ Health Care Beauty Personal All-in-one Fashionable
Beauty Channels
Home care Pet nutrition and
Home care Pet nutrition Beauty consultants Fashion advisory
Health care Wellness
care Beauty
Services Health and wellness Baby and Target 45+ generation
Health and wellness Baby Baby and family
family Singles Functional Make-up counters Beauty
and family
Competencies Unique designs, trendy
Infrastructure Technology
Stylish Creative
All-in-one Organic Manufacturing Durable All-
R&D facilities Innovation labs
Technology Unique designs in packaging Innovative Designers Anti-
in-one Pet grooming
Packaging Capabilities
Trendy High Quality Make-up labs and R&D facility
ageing I-robot technology
Distribution centres
Know How
High end stores Exclusive
Multinational Multinational
Multi-national Training centres Global facility
Physical Assets R&D facilities Brand presence and
DC’s R&D facilities Teenage exclusive stores
DC’s acceptability

8. Identifying Field of Play: Beauty for Dogs
Competitors Partners P&G Future
Health Care Personal
Markets Health Care Personal Premium products Niche
Beauty Channels
Home care Pet nutrition and
Multi-purpose Pets Teen make-
Home care Pet nutrition
Consumers care Beauty Health care Wellness
Beauty Health and wellness up Stage make-up Beauty for men
Health and wellness Baby Baby and family Industrial products
Customers Baby and family
and family
Health Care Personal Trendy and fashionable
Value for money Functional
Wide range Nutrition
Home care Pet nutrition and
Accessible in market Reliability Accessible
Needs and benefits care Beauty Multipurpose Basic products
Safe Easy to use
Readily available
available Easier
Health and wellness Baby Readily available
Care for pets
and family
GNC Online Catalogues
CVS
CVS APPA – American Pet products Business /Fashion magazines
Pharmacies Pharmacies
association
Channels Dog Spas
Speciality stores
Retail outlets Supermarkets Retail outlets Supermarkets
Dog grooming parlours Gyms High end clubs Vets
Online web pages Online web pages
Dog Salons
Macy’s etc
Health Care Personal
Products/ Health Care Beauty Personal All-in-one
Beauty Channels
Home care Pet nutrition and Fashionable Beauty
Home care Pet nutrition consultants Fashion advisory Beauty
Health care Wellness
care Beauty
Services Health and wellness Baby and Target 45+ generation
Health and wellness Baby Baby and family Make-up counters
family Singles Functional
and family
Unique designs, trendy
Competencies Technology
Infrastructure
Organic Manufacturing
Stylish Creative
All-in-one
R&D facilities Innovation labs
Technology Unique designs in packaging Innovative Designers Durable All-in-one
Packaging Capabilities Distribution
Trendy High Quality Pet grooming Anti-ageing
Make-up labs and R&D facility
Know How centres
I-robot technology
High end stores Exclusive
Multinational Multinational Multi-national Training centres Global facility
Physical Assets R&D facilities Brand presence and
Exclusive stores
DC’s R&D facilities Teenage
DC’s acceptability

9. Examining Field of Play – Beauty for Men
• White space; growing interest by men in beauty products
Insights/Drivers • Men have 15% more oilier skin than women
• 89% of men consider grooming adds to professional success
Key Market • Men aged 18 and older
• Professionals, middle to high-income
Segments • For men on the go
Competitive • Consolidation in unorganized sector
• Potential for new entrants
Dynamics • Diversification of traditional P&G competitors
• Huge distribution network in place
Assets • Existing R & D facilities
• Global Manufacturing facilities
• High Quality
Value Propositions • Multi purpose
• Easy to use and fast results
• Global Distribution Network
Why We Will Win • Experience in cosmetics and wellbeing
• Global leader in innovative products

10. Examining Field of Play – Wellbeing for Baby Boomers
• Wellbeing products for people aged 45+, white space
Insights/Drivers • Only few products available for this age group
• Promotion of energy, vitality and wellbeing
Key Market • Adults aged 45+
Segments
Competitive • Consolidation in unexplored sector
• Potential for new entrants
Dynamics • Diversification of traditional P&G competitors
• Huge distribution network in place
Assets • Existing R & D facilities
• Global Manufacturing facilities
• High Quality
Value Propositions • Products made for your active lifestyle
• Focusing on your wellness
• Global Distribution Network
Why We Will Win • Experience in wellbeing
• Global leader in innovative products

11. Examining Field of Play – Beauty for Dogs
• Growing Market; US dog population of 70 million
Insights/Drivers • Increasing trend in emotional engagement resulting in
increased spending
Key Market • Pet care and grooming
Segments • Across all income segment
Competitive • Consolidation in unorganized sector
• Potential for new entrants
Dynamics • Diversification of traditional P&G competitors
• Huge distribution network in place
Assets • Existing R & D facilities
• Global Manufacturing facilities
• High Quality
Value Propositions • Safe and Easy to Use
• Convenience and Accessible
• Global Distribution Network
Why We Will Win • Experience in Pet Industry through IAMS
• Global leader in innovative products

12. Fields of Play Screening Matrix
High 2 3
Differentiation on Market
1
Low
Impact on Company
Low High
1. Beauty for Men
2. Wellbeing for Baby-boomers
3. Beauty for Dogs

13. Focus on Field of Play: Beauty for Dogs
For pet owners who are
emotionally attached to their
• Increasing Emotional Engagement with
Trends Pets dogs and view them as family
For pet owners who are
members and need easily
emotionally attached to
accessible, safe, high quality and
Key Market reliabledogs andgrooming and
their dog view them as
• Pet Care and Grooming
Segments lifestyle members management
family and need
products,accessible, safe, high
easily P&G will offer these at
attractive and reliable dog
prices in stylish, but
quality
• High Quality Pet Grooming Products
functional packaging. lifestyle
Need grooming and
• Accessible
management products, P&G
will offer these at attractive
• Multifunctional pet products
price points and stylish
Offer • Reliable, Safe and Accessible
packaging.
• Global leader in innovation and R&D
• $21 billion spent on grooming products in
Size of the US
Market

14. Identifying the Concepts from the Focused FOPs
Enhanced Look
- Multi purpose - Pets seen as family
- Quick - Image importance
- Easy to use products - Spend unlimited for
- Fragrances pets
Hygiene
Minimal
- Status quo’s - Wash and go
- No specialty products - People on the move
- Easy to use, accessible - Clean pets, non stylish
Natural Look

15. ... And they are:
• Multifunctional for easy use
5-in-1 • E.g., Shampoo, Conditioner, Flea Control, Moisturizer &
Deodorant
• For fashion conscious owners
Accessories • E.g., Breathe Easy Muzzle, Coats, Shoes, Warmers
• For the people on the go
Easy • E.g., Cry no more shampoo , Roll-on cleaner, Powder
cleaner
• Make-up products for the image conscious owners for
Beauty their pets
• E.g., Nail polish, Hair color, Perfumes, Powder

16. Concept Alignment to P&G
1. 5-in-1
High 2 41
2. Accessories
3.Easy
Attractiveness
4.Beauty
.
3
Low
Fit
Low High
Due to the high level of fit and attractiveness for both concept 1 and
4, we recommend that P&G enter the Pet Grooming market with a line of
multipurpose (5 in 1) beauty and grooming products.

17. Recommendations for Go-Ahead
New product development group for designing Simplicity™ products for
pet care and grouping
New partnership group for identifying partners pet care products and
goods technology
Project management team to establish ‘Dog Care Program’ to internally
launch and manage this initiative.
Create prototype products for beta market testing.
Analyze results from the beta testing to validate field of play and product
line.
Create and launch marketing campaign.
Launch the product in market.

18. Innovation. Simplified.
Alex Hodgson Sunil Gupta Dilip Chatulingath Mark Morgan Divyan Gupta Wei Tak Nyou

19. Situational Analysis:
Can P&G achieve sustainable growth through innovation?
Situation
• P&G is a global leader in consumer products with more than 300 brands
• P&G products in over 180 countries
• Has a breadth of expertise in innovation and R&D
• Is always on the lookout for new business areas to get into
Complication
• P&G facing competitor pressures across its product lines
• Nothing in R&D pipeline for the next 3-5 years which can be considered a ‘game
changing’ product/ service
• Consumer behavior is changing and cosmetics are becoming commoditized which
could affect the company's longevity in the future term
• Increasing innovation in bio-sciences is pushing cosmetics towards multi-
functionality usage and P&G doesn’t have a market beating line of products in this
space
Question
• Can P&G achieve sustainable growth through innovation?

20. Key Issues Analysis:
Can P&G achieve sustainable growth through innovation?
Do we have an innovation Do we understand the Do we have a Field-of-Play
linked growth strategy? future market trends? and a specific concept?
• Can we identify multiple FOP’s?
Can we identify:
Can we identify:
• Macro trends •Do these FOP’s leverage existing
• The growth target?
• Customer trends
• Investment threshold? competencies?
• Competition trends • Can we develop specific high impact
• Innovation space?
• Technology and capability trends
• Innovation timeline? concepts from these FOP’s?

21. WE UNDERSTAND THE FUTURE MARKET TRENDS.
Trend Analysis
1.Beauty for Dogs
1
4 5 2. Beauty for Men
High
3. Unisex
9 4. Fashion
5. Anti-Ageing
6. Organic Cosmetics
3 7. Price Sensitive
8. Brand Conscious
6
9. Long Lasting
10. Innovative Packaging
Impact
2
10
7
8
Low
Low Uncertainty High

22. WE HAVE AN INNOVATION LINKED GROWTH STRATEGY.
Emerging Growth Gap
Estimated Target Numbers
Time for closing
growth gap? _8 Months_
Earnings Gap _ 8%_____
Expected Contribution
from innovation : _12%_____
Stretch Earnings Target
for Big and Bold Ideas: _ 17%_____
What Does Your Projects Portfolio Look Like
TACTICAL STRATEGIC
Local Global
Short Term Long Term
Breakthrough
Incremental
Small Investment Big Investment
Existing New Opportunities
Far from Core
Near Core
Transformer Pathfinder

23. WE HAVE IDENTIFIED A FIELD OF PLAY AND A SPECIFIC CONCEPT
Examining Field of Play: Beauty for Dogs
Competitors Partners P&G Future
Health Care Personal
Markets Health Care Personal
Beauty Channels Premium products Niche
Home care Pet nutrition and
Multi-purpose Pets Teen make-up
Home care Pet nutrition
Consumers care Beauty Health care Wellness
Stage make-up Beauty for men
Beauty Health and wellness
Health and wellness Baby Baby and family Industrial products
Customers Baby and family
and family
Health Care Personal Trendy and fashionable
Value for money Functional
Wide range Nutrition
Home care Pet nutrition and
Accessible in market Reliability Accessible
Needs and benefits care Beauty Multipurpose Basic products
Safe Easy to use
Readily available
available Easier
Health and wellness Baby Readily available
Care for pets
and family
GNC Online Catalogues
CVS
CVS APPA – American Pet products Business /Fashion magazines
Pharmacies Pharmacies
association
Channels Dog Spas
Speciality stores
Retail outlets Supermarkets Retail outlets Supermarkets
Dog grooming parlours Gyms High end clubs Vets
Online web pages Online web pages
Dog Salons
Macy’s etc
Health Care Personal
Products/ All-in-one
Health Care Beauty Personal Fashionable
Beauty Channels
Home care Pet nutrition and Beauty consultants
Home care Pet nutrition
Health care Wellness
care Beauty
Services Fashion advisory Beauty
Health and wellness Baby and
Health and wellness Baby Baby and family Target 45+ generation
family Singles Functional Make-up counters
and family
Competencies Technology Unique designs, trendy
Infrastructure
Stylish Creative
All-in-one Organic Manufacturing Durable All-
R&D facilities Innovation labs
Technology Unique designs in packaging Innovative Designers Pet grooming Anti-
in-one
Packaging Capabilities Distribution
Trendy High Quality Make-up labs and R&D facility ageing I-robot technology
Know How centres
High end stores Exclusive
Multinational Multinational Multi-national
Training centres Global facility
Physical Assets R&D facilities Brand presence and DC’s R&D facilities
Teenage Exclusive stores
DC’s acceptability Gillette

24. WE HAVE IDENTIFIED A FIELD OF PLAY AND A SPECIFIC CONCEPT
Integrated Product Platform
Pet
Personal House Health Baby
Nutrition
& & & &
&
Beauty Home Wellness Family
Care
Simplicity™ Products

25. WE HAVE IDENTIFIED A FIELD OF PLAY AND SPECIFIC CONCEPT
The Pet Nutrition & Care market is the most attractive entry market
• No clear segment leader
• Rapidly growing market $41 billion with 10% increase annually
• P&G has experience in pet markets after acquiring Iams/Eukanuba
• Minimal entry barrier
• Existing relationships with distributors
• Competitive manufacturing advantage
According to the 2007-2008 National Pet Owners Survey, 63% of
U.S. Households own a pet, which equates to 71.1 million homes
It is estimated for 2009 that pet-owners will spend $43.5 billion
on their pets
-American Association of Pet Products

26. WE HAVE IDENTIFIED A FIELD OF PLAY AND A SPECIFIC CONCEPT
Focused Field of Play: Beauty for Dogs
For pet owners who are
• Increasing Emotional Engagement with
Trends Pets emotionally attached to their
dogs and view them as family
members and need easily
Key accessible, safe, high quality and
Market • Pet Care and Grooming reliable dog grooming and
Segments lifestyle management
products, P&G will offer these at
attractive prices in stylish, but
• High Quality Pet Grooming Products
Need functional packaging.
• Accessible
• Multifunctional pet products
Offer • Reliable and Safe and Accessible
• Global leader in innovation and R&D
• $21 billion spent on grooming products
Size of in the US
Market

27. WE HAVE IDENTIFIED A FIELD OF PLAY AND A SPECIFIC CONCEPT
Concepts
5-in-1
• Increasing Emotional Engagement with Pets
Accessories
• Pet Care and Grooming
Simplicity™ Product Line
accessible, safe, high quality and
Easy
reliable dog grooming and lifestyle
•High Quality Pet Grooming Products management products
•Accessible
•For People on the Go
Beauty
• Multifunctional pet products
• Reliable and Safe and Accessible
• From a global leader in innovation and R&D

28. WE HAVE IDENTIFIED A FIELD OF PLAY AND A SPECIFIC CONCEPT
We can develop specific high impact concepts from these FOP’s
High 2 41
1. 5-in-1
2. Accessories
Attractiveness
3.Easy
3 4.Beauty
.
Low
Fit
Low High
Due to the high level of fit and attractiveness for both concept 1 and
4, we recommend that P&G enter the Pet Grooming market with a line of
multipurpose (5 in 1) beauty and grooming products.

29. P&G can achieve sustainable growth through innovation
We have an innovation We understand the We have a Field-of-Play
linked growth strategy future market trends and a specific concept