Procter & Gamble Wins On Innovation.

Posted by: Bruce Nussbaum on August 5, 2008

Procter & Gamble is one of the 25 companies that make up the S&P/Business Week Global Innovation Index and it’s strong fiscal fourth quarter showing in sales and profits reflect it’s dedication to innovation.

When I last talked to CEO A.G. Lafley, he said P&G needed to raise prices for most of its products because of the soaring cost of oil and other commodities. P&G, in effect, is a chemical company that makes consumer products. Lafley said innovation, both incremental and major, helped P&G to raise prices. Consumers resist price hikes but are more willing to pay a bit more if they receive more. Innovation is part of that strategy.

Here’s what Lafley said on announcing great fourth quarter results:

“We’re leading innovations across the brand portfolio, building value for consumers and customers which is critical to delivering good results in a difficult economic environment. The strength of the portfolio and our focus on innovation and productivity give us confidence that we will continue to deliver sustained growth in the coming year and beyond.”

 

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Want to stop talking about innovation and learn how to make it work for you? Bruce Nussbaum takes you deep into the latest thinking about innovation and design with daily scoops, provocative perspectives and case studies. Nussbaum is at the center of a global conversation on the growing discipline of innovation and the deepening field of design thinking. Read him to discover what social networking works—and what doesn’t. Discover where service innovation is going and how experience design is shaping up. Learn which schools are graduating the most creative talent and which consulting firms are the hottest. And get his take on what the smartest companies are doing in the U.S., Asia and Europe, far ahead of the pack.

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