$65.06 billion (2017)
How they do it: Procter and Gamble partnered up with TV networks and radio outlets in order to exchange sponsoring or funding for the production of the entertainment content, for visibility and advertisement opportunities for its products. Until today, P&G is engaged in this sector, via its subsidiary P&G Entertainment.
How they do it: By initiating their Connect + Develop concept, Procter and Gamble invites people to submit their innovative ideas. According to their website, ”External collaboration plays a key role in nearly 50 percent of P&G’s products. We’ve collaborated with outside partners for generations but the importance of these alliances has never been greater.” Through this approach, the company is exploring solutions and innovations in packaging, design, marketing models, research methods, engineering, technology, etc.
How they do it: Procter and Gamble focusses on an ecosystem approach to develop innovations sourced externally, by leveraging its internal core competence of developing innovations and turning them into global brands. In this approach, it can achieve economies of scale.
How they do it: Procter & Gamble developed a lower-price diaper line with a reduced set of features for its Brazilian market in 2010. Customers who were unable to afford the company’s more expensive diapers were willing to pay for a solution that would keep babies dry overnight, given that many co-sleep with their children. The basic tier of products now exists around the world under different brand names (e.g. Simply Dry in Western Europe).
Target The Poor
How they do it: Procter and Gamble adopts a bottom-of-the-pyramid approach in targetting low-income customers in developing countries. An example are single-use packets of shampoos, sold for a few cents, which are purchased by customers on demand from local stores.