With factories and branches in more than 80 countries around the world, more than 300 brands of products sell well 160 countries and regions, including fabrics and home care, hairdressing and beauty, baby and home care, health care, food and beverage, etc.
When we pay attention to Procter & Gamble, which has been unique for more than 100 years? Continue to do business? During the course, I actually want to answer three basic questions: First, what is the successful management of P&G? Second, why can P&G have such a strong brand? What is the secret of P&G brand management? Thirdly, how do entrepreneurs in China, especially those in the consumer goods industry, learn the skills of becoming bigger and stronger from the experience of P&G?
Why is P&G so successful? Ed, former chairman of Procter & Gamble? Hanis explained that although our greatest asset is our employees, it is the consistency of principles and ideas that guides our direction. ? This principle and idea are famous? Procter & Gamble? .
? Procter & Gamble? It includes three aspects:
Emphasize the values of high internal unity.
In order to ensure the unity of values, P&G even selects middle and high-level personnel from within. From CEO to general manager, P&G basically has no airborne troops.
Business philosophy of leading the consumption trend.
What is P&G's marketing philosophy? Find a development trend as soon as possible and lead it? . Procter & Gamble refuses to accept the traditional concept of product life cycle, and believes that as long as brand management and innovation are carried out continuously, consumers' loyalty can be maintained. For example, ivory soap has a history of 100 years, and Tide washing powder has a history of nearly 50 years, but each product is still the leader in the industry.
Enterprise management system based on being responsible to consumers.
The world's first brand manager came from Procter & Gamble, and the famous product manager management system was also the invention of Procter & Gamble. In Procter & Gamble, senior managers will personally participate in many major decisions, such as the launch of all new products, the investment in projects with more than100000 dollars, the appointment and promotion within three levels, and so on.
Are you online? Procter & Gamble? The core content is the unique understanding and grasp of consumer value. Otto said it well: Customer relationship is the most powerful source of competitive advantage for P&G, because our brand meets their needs one-on-one? Intensive cultivation? Set up. ? In Procter & Gamble, consumer value has risen to the height of corporate belief (Procter & Gamble's corporate purpose is to produce and provide world-class products and services to beautify consumers' lives). To this end, Procter & Gamble even made a rule for itself: before doing business around the world, consumers and markets must be investigated first.
In other words, what did P&G do to meet the needs of consumers? Intensive cultivation? And through the unique product manager system and product segmentation strategy, the customer value has been clearly realized? Quantify? . On this basis, P&G can successfully implement its famous multi-brand strategy: If there is still room in a certain market, what is the best? Other brands? It is also a brand of Procter & Gamble. What does P&G's hundreds of years' experience give us? In my opinion, the most important point of P&G's century-old glory is that P&G puts the future on understanding and grasping the value of consumers. P&G is well aware of a key point in the consumer goods industry, that is, the value of consumer goods is very high? Subjective? Or? Personalization? The concept of this concept will change with the changes of the times. The sustainable competitive advantage of P&G is not based on the product (although the product is also very important), but on the consumer value outside the product.
From this, we can clearly see the victory of P&G products, which has both the consistency of global strategy and the personalization of regional markets. The reason is that P&G's market advantage is based on consumer value, not products. Most of P&G's new products, such as? Sassoon? , usually launched worldwide. But as consumers in China, we also have a sense of belonging to these new products. This capability is far superior to the launch of P&G in Asia or China? Personalization? Products (such as? Whitening moisturizer? The success of) is more worth learning. Because the mechanism behind this is the secret of the continuous success of multinational companies such as Procter & Gamble for hundreds of years, and it is also the real gap between China companies and multinational companies in the consumer industry.
In this regard, I think that most of the failures of a considerable number of companies in China's consumer goods industry are not due to technology or scale, but to consumer value. Without establishing respect for consumer value from the heart, there will be no pursuit of consumer value from the system and organizational system. When the enterprise? Awe? Consumers, if they don't study the changes in consumer demand and regard competitors as partners to provide value to consumers, the result can only be abandoned by consumers.
A strong brand is very important, but P&G tells us that the process of brand management is actually to choose a business model, a model of how to become bigger and stronger for a long time (to obtain sustainable competitiveness). A number of multinational companies, such as Procter & Gamble, Coca-Cola and McDonald's, can continue to develop for decades and hundreds of years and gain a dominant position in the global market. The success behind this is by no means a simple move.
To become a strong and sustainable international brand, we must establish a set of basic strategic management methods, similar to those of world-class companies such as Procter & Gamble, Coca-Cola and McDonald's. This is not a process of imitation, but a process of truly knowing how to respect consumers from the bones. The reason is simple, because consumer value is the only source of sustainable competitive advantage for enterprises.