Sunday, November 25, 2012
Always worth watching what P&G is doing
This week Procter & Gamble was discussing how it intends to spend its R&D budget. The company's version of the story is here. WARC also covered the announcement.
The bottom line is that P&G is going to divide its latest innovation output so that 60% helps it progress in large, established sectors and 40% creates entirely new categories.
The head honcho said: "Over 60% of our ideas would play in markets that are over $5bn in size today and about 40% of our ideas are single-product, disruptive solutions that create new categories and are pure 'new jobs to be done'."
Life is interesting for these mega companies. They have to get the split right between investing in developed, developing and hyper-developing countries. Within developed countries the consumer base is rapidly fragmenting between a few haves and a lot of 'have very little'.
On top of that of course one part of the world is buzzing with young people but the majority of the planet is getting old and doing it fast.
Complicated job to understand and react to these mega trends. Let's hope these are super-smart marketers. Dick Stroud