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Lessons from P&Gs story of Tide and Paper Products Business

Review: Rising Tide, Chapter 4 & 6 Group 2

Key Learning Continuous innovation of a product, along with innovations in marketing can extend the life cycle of a product. Tide Market Share in the United States

Product Share

Time So is the case with Maggi Marketing campaigns targeting kids and usage of sales promotions Line extension to Vegetable Multigrain, Atta Noodles, Cuppa Noodles Brand extension to Soups, Sauce, Pasta, Bhuna Masala.

Innovation extends the life cycle of a product


Product Innovation Tide Scented Unscented Tide Product X LiquidDetergent Tide Synthetic Tide with Compact Liquid Bleach

Tide to go Bleach bacteria Fabric Softner Tide Pods

1946

1950

1960

1970

1980

1990

2000

2010

Marketing Innovation

No more laundry Gold Circle Pin day Packed with Swaps Advertizing Washing Machines Campaign

Save on energy bill Loads of Hope Freshness Sport

Key Learning Persistence from top management with access to unlimited resources, individual initiative and experimentation plays a major role in success of a new product

Network Strategy Corporate Strategy Business Strategy Functional Strategy

As observed in the Amul story Dr. Verghese Kuriens role in Amul: Fighting against the bureaucracy of the government Experimenting with new technologies to produce powdered milk Improving productivity and operations with innovative models

Key Learning To capitalize on a new innovation in technology, speed to market is very important where the company has to plunge in with the product launch, sometimes at the cost of product testing stage

Exploration

Screening Business Analysis Development

Testing

Commercialisation

As observed in naukri.com, makemytrip.com, zomato.com When internet entered India, founders of online portals naukr.com and makemytrip.com launched their ideas without nay market testing to be the first mover. Later, zomato later adopted the same strategy

Key Learning
The partnership between several divisions of the company for developing a superior product (Pampers) gave P&G the competitive edge in the market

Key drivers for


Designing of pampers Automated high speed production process Sales and Distribution Top managements role Access to the companys most valuable technical and marketing personnel Firm Infrastructure Human Resource Management Technology Development Procurement Inbound Logistics Operations Outbound Logistics Marketing And Sales Service

Support Activities

Primary Activities

Porters value chain

As seen in Aurolab of Aravind Eyecare


Same quality eye-care for every patient High quality and low cost intraocular lens Priced at a price of Rs 80 Global market share of 7% and products present in more than 130 countries

Key drivers for Aurolabs success


Founders determination Engaged in technology development Own Manufacturing unit and resources Efficient operations Labour cost advantage

Key Learning Cost saving exercise led to high tech innovation of Pampers making it a mass product. Heavy capital expenditures and manufacturing expertise can communicate the product advantage and provide differentiation from competitors.

A critical success factor for NPD- Product advantage was creating by continuous innovation and affordable pricing. Create differentiated value by lowering buying cost and increasing buyer performance.

As seen in Samsungs strategy in India

Samsung s entry into the Indian market gave it the late mover advantage over Nokia: Focus on research and development Develop manufacturing expertise Affordable pricing for few mobile models

Summarizing the factors for new product success

Product Factors

Uniqueness High performance to cost ratio

Large and growing market Fewer competitors

Market Factors

New product success

Management Factors

Marketing synergy Technology synergy

Synergy Factors

Management commitment to project Good internal communication between departments