Friday, June 03, 2005

P&G Has One Simple Rule
for Doubling Share Value

Procter & Gambles CEO A.G.Lafley leads what has historically been the most powerful consumer marketing company in the world. It is a vastly complex company (and one I was proud to serve for 20 years when I owned my promotion marketing agency). But Wall Street Journal this week reports that despite the company's complexity, Lafley has one simple rule: Find out what she wants and give it to her. Take care of the customer and the customer will respond. With a touch of humor, Lafley notes that this simple rule has worked in his marriage for 35 years and it works just as well for laundry detergents.

His statement is about women consumers and, it reflects a philosophical shift on the part of P&G to look outside the company for solutions to problems. Now, P&G is spending hours watching women use their products to learn what women care about most. With such observations, P&G marketers become increasingly aware of the context in which their products get used ... it is the context that then increases product relevance.

The nice thing about context at P&G -- following Lafley's simple rule the company's stock has doubled since he took over the helm.

Maybe context pays off :-)

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