Let’s turn now to the strategies. The most important growth strategy of P&G is to consistently focus on innovation, which rewards the company with sales growth, market share leadership and strong company reputation. For example, the Laundry business in UK increased from 35% in 1970s to 50% now due to its stepped- up innovation of new products such as Daz automatic detergent (Picture 2) and Liquitabs (Picture 2). P&G always believes that ‘innovation wins decades’.
In addition, P&G places important emphasis on Research&Development to ensure its success of innovation. It invests about $ 2 billion a year in R&D, and this continues to pay off. One example is the successful market expansion innovation the Old Spice ‘Smell Like a Man, Man’ campaign (Picture 3)that generated consumer excitement and demand, that catapult the brand to market leadership.
Moreover, P&G’s global sponsorship of London Olympic provides an outstanding platform for integrated, multi-branded commercial innovation and brings about positive Olympic legcy. Achieving 2.5 billion Media impression during the games, P&G is predicted to obtain incremental sales of more than 1 million dollar in the next few years.
To sum up, P&G is a company with growth potential due to its stable financial performance and innovation strategies, which is a good choice to invest.
Figure 2... [continues]
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