Inspiring talk from Procter and Gamble CEO

Without a doubt, Procter & Gamble are masters at the FMCG game. With a new product success rate of close to 50% (versus an industry average of 15-20%) and with strong brands and a premium positioning in most categories they play in, there is much to learn from their approach. The CEO of P&G, AG Lafley recently spoke to BusinessWeek in the US about managing through the recession (and beyond). His view is that continuing to invest in their core competencies will be key to their success in the economic downturn. And those core competencies are (in order): 1) understanding the consumer, 2) innovating and 3) branding. How refreshing to hear consumer understanding coming first in this list and to hear Mr Lafley talk about putting consumers at the centre of everything they do. You can see this philosophy in his description of innovation, describing it as linking creativity and invention to a product or service which meaningfully changes consumers lives. Brands are also essential to P&G’s success and their ability to ward off the threat from private label and competitors. And Mr Lafley contends that brands are built on understanding what represents value to the consumer. It is clear that the consumer sits at the heart of this organisation, and that this is not just fluffy business speak. P&G seem to take the time to listen to their consumers and actively seek to meet their needs and exceed their expectations. Read the full summary of the interview or watch the video on the BusinessWeek website by clicking on the following link: click here