To improve global market share and spend on their products, P&G is re-focusing its strategy under the new leadership of Bob McDonald from high-end products like Tide Total Care towards value tier products like Tide Basic (FT December 18th, 2009).
Does this mean the time is over for Lafley’s ‘value-based metrics’, as he did with products like Charmin and Swiffer? And what does this mean for the Golden Age of innovation and design management at P&G?
First design management in the FMCG sector has to improve its competencies in understanding the changes in consumer behavior. In times of crisis consumer behavior is much stronger driven by their basic needs like price and durability.
Second design must better manage the communication of the basic product values in the execution of pack, POS and advertisement.
This is essential for the FMCG value brands to sustain competitive against the private labels (who have caught up dramatically in delivering value based products with a good design).
Interesting challenges, which have already been proven to be successful in other industries. Companies like Flip and Dacia Cars have shown this!
Tags: crisis
