Proctor and Gamble 2008 Annual Report Download - page 23

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 
 
Great innovation ideas come from many places,
including consumers, customers, external partners,
and our own research. Many small investments are
made to test the viability of new ideas, focusing on
the long-term market potential of a new technology
or product concept. Each year, P G researchers
and business development professionals explore an
estimated 5,000 new innovation ideas.
 
With the data from the initial research phase,
our disciplined selection process allocates limited
resources — human and nancial — to the most
promising innovation opportunities. Projects are
sometimes combined to create even bigger con-
sumer opportunities while conserving resources.
PG spends over $2 billion each year on R D,
by far the most in the consumer products industry —
but each dollar of research funding and each hour
of research time is treated like a scarce commodity.
&
Next, multifunctional teams — including
professionals from product research, marketing,
manufacturing, engineering, nance, and other
functions — develop comprehensive plans to deliver
against challenging success criteria. They leverage
best-in-class tools, including virtual product and
package design and consumer testing, to qualify
each idea technically, conceptually and nancially
before it is approved for market launch. P&G has
built world-class expertise in 11 core technology
areas, each critical to creating and qualifying
winning innovations in our product categories.
&
Finally, an innovation is introduced to consumers
and retail customers along with a plan to help
deliver key business objectives, including retail
distribution, correct pricing, consumer trial,
repeat purchase, and ultimately sales and prot.
The performance of a new innovation is monitored
and measured against these goals. We routinely
modify plans to keep new innovations growing for
years after launch, and many new brands and
products are still building consumer trial after years
in the market.
TheProcter&GambleCompany 20