ABSTRACT
Procter & Gamble (P&G) has always been known as an innovative company where the business strategy is based on the idea that consumers will pay a premium price for cutting-edge products. Most P&G brands cost close to 20 percent more than their competitors, and this added revenue helps fuel a research-and-development (R&D) budget that exceeded $2 billion in 2012—twice the industry average. Historically, P&G did not just tweak existing products in small ways but invented entirely new product categories such as Crest fluoride toothpaste, Tide laundry detergent, Pampers disposable diapers, Pringles stackable potato chips, and Folger’s freeze-dried coffee.
