Strategies In Actions: P&G Essay

4644 words - 19 pages

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Procter & Gamble and No-frills are two firms competing on the same marketplace, through Innovation and Price respectively. The purpose of the assignment is to compare and contrast the two strategies used by the firms and to critically examine that one strategy is better than the other. The first part of assignment will brief about P&G’s Innovation strategy. It will be explained through Framework of Organisational Innovation; and the three Types of Innovation will be discussed. In which QFD is constructed as an example for P&G’s Process Innovation and discuss impact to organisation. Second part will present No-frills as a firm competing through price. It looks at organizational ...view middle of the document...

As a result, P&G has innovation in an unexpected way, toothpaste which helps prevent osteoporosis. (Procter & Gamble 2007)

1 Level of Innovation

Innovations are ranging from incremental to radical. P&G innovation focuses on both existing and entirely new products. Examples include Pantene, Vidal Sassoon and Pert Plus, improved two-in-one shampoo and conditioner products offering consumer innovative results. Creating entirely new categories include Febreze, an odor-eliminating fabric spray and Dryel, a product that allows consumers to clean and freshen "dry-clean only" clothes at home. (Procter & Gamble 2007)

2 Framework of Organizational Innovation

There are three main types of innovation (process, product/service, and strategy), each of which can vary in the degree of newness (incremental to radical) and impact.

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3 Product innovation

P&G is a producer of products in nearly 50 categories; from toothpaste to bone-disease therapies. Thus it allows connecting technology across categories in unexpected ways to create innovation in the marketplace. The calcium technology of Crest Tartar Control toothpaste is found that the key to stopping bone loss in women thus helps prevent osteoporosis. P&G has also built a solid business selling innovation formula of shampoo and conditioner in ones. Successful product innovation opens up avenue for competing that by-pass meeting or beating rival’s prices. (Procter & Gamble 2007)

4 Process Innovation

QFD of Hair Care

Process innovation reflects the rise of the quality and continuous improvement progress. Quality Function Deployment (QFD) is a structured approach to defining customer needs or requirements and translating them into specific plans to produce products to meet those needs. (School Of Management 2002) An example for hair care product delivered by P&G is shown.
Voice of consumer for a hair care product:
It involves easy steps to use, it shampoos and cleans effectively, conditioning, long lasting for a bottle and relatively cheap.
Technical features:
To leave shampoo surfactants clean the hair as they do with a conventional shampoo. To invent the ability to suspend conditioning agents during the lathering process in the lather. The conditioning agents are then released from suspension upon rinsing, while the oil and dirt are carried away. It makes no different from conventional conditioners, two-in-ones form a lubricious film on the hair that condition the hair for soft and combs easily. (Procter & Gamble 2007) Another feature is the size of the soap bubble in lather. Consumers has perception that larger the size of suds and bubble reflect the cleaning effectiveness of the shampoo.
A QFD constructed for Hair Care product innovation

| |Price |Syntheti|2 in 1 |Conditio|effectiv|customer|Competitive evaluation |
| | |c |formula |ning |e for |importan| |
| | ...

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