Procter & Gamble Worldwide (P&G) is

Procter & Gamble Worldwide (P&G) is one of the largest manufacturers supplying grocery retailers and wholesalers and a leader in designing how branded consumer-goods manufacturers go to market. P&G's process innovations are driven by its focus on improving consumer value by eliminating nonvalue-added processes in the channel. Changes at P&G in organization, systems, procedures, and policies affected both the company and the entire channel. These changes were governed by the recognition that manufacturers, distributors, and retailers have to cooperate in creating industrywide approaches to drive inefficiency out of the grocery distribution system.
Many changes leading to organizational and channel transformation were initially viewed as information systems innovations (e.g., developing systems to automate existing practices). Breakthrough change came with the realization that the success of P&G brands depended on eliminating all processes that didn‘t deliver value to brand- loyal consumers. The promotional frenzy of the late 1970s and 1980s that characterized the retail industry had produced a backlash among brand-loyal consumers, who felt they weren't getting fair value day-in, day-out. P&G studies showed that less than half of their promotional dollars were passing through to the consumer and that swings in price were creating variability and massive inefficiency, not only in P&G‘s manufacturing and distribution systems but throughout the entire grocery supply chain.
As a result, P&G redesigned how it went market as a branded consumer-goods maker. Its actions fell into two broad categories: participation in industrywide efficiency improvements, and pricing policy changes, both necessary to improve the value of its brands. As its new pricing strategy was implemented, P&G also took a leadership role in working with the grocery industry- including other manufacturers—to significantly accelerate the adoption of more efficient systems, policies, and practices in the grocery channel (Exhibit 1). These industrywide changes resulted in dramatic improvements in P&G‘s and retailers’ effectiveness in delivering value to the consumer.

Procter & Gamble Worldwide (P&G) is one of the largest manufacturers supplying grocery retailers and wholesalers and a leader in designing how branded consumer-goods manufacturers go to market. P&G's process innovations are driven by its focus on improving consumer value by eliminating nonvalue-added processes in the channel. Changes at P&G in organization, systems, procedures, and policies affected both the company and the entire channel. These changes were governed by the recognition that manufacturers, distributors, and retailers have to cooperate in creating industrywide approaches to drive inefficiency out of the grocery distribution system.
Many changes leading to organizational and channel transformation were initially viewed as information systems innovations (e.g., developing systems to automate existing practices). Breakthrough change came with the realization that the success of P&G brands depended on eliminating all processes that didn‘t deliver value to brand- loyal consumers. The promotional frenzy of the late 1970s and 1980s that characterized the retail industry had produced a backlash among brand-loyal consumers, who felt they weren't getting fair value day-in, day-out. P&G studies showed that less than half of their promotional dollars were passing through to the consumer and that swings in price were creating variability and massive inefficiency, not only in P&G‘s manufacturing and distribution systems but throughout the entire grocery supply chain.
As a result, P&G redesigned how it went market as a branded consumer-goods maker. Its actions fell into two broad categories: participation in industrywide efficiency improvements, and pricing policy changes, both necessary to improve the value of its brands. As its new pricing strategy was implemented, P&G also took a leadership role in working with the grocery industry- including other manufacturers—to significantly accelerate the adoption of more efficient systems, policies, and practices in the grocery channel (Exhibit 1). These industrywide changes resulted in dramatic improvements in P&G‘s and retailers’ effectiveness in delivering value to the consumer.

Procter & Gamble Worldwide (P & G) is one of the largest manufacturers supplying grocery retailers and wholesalers and a. Leader in designing how branded consumer-goods manufacturers go to market. P & G 's process innovations are driven by its focus. On improving consumer value by eliminating nonvalue-added processes in the channel. Changes at P & G in organization systems,,, Procedures.And policies affected both the company and the entire channel. These changes were governed by the recognition, that manufacturers. Distributors and retailers, have to cooperate in creating industrywide approaches to drive inefficiency out of the grocery. Distribution system.
.Many changes leading to organizational and channel transformation were initially viewed as information systems innovations. (e.g, developing systems to automate existing practices). Breakthrough change came with the realization that the success. Of P & G brands depended on eliminating all processes that didn 't deliver value to brand - loyal consumers.The promotional frenzy of the late 1970s and 1980s that characterized the retail industry had produced a backlash among. Brand-loyal consumers who felt, they weren 't getting fair, value day-in day-out. P & G studies showed that less than half. Of their promotional dollars were passing through to the consumer and that swings in price were creating variability and. Massive, inefficiencyNot only in P & G 's manufacturing and distribution systems but throughout the entire grocery supply chain.
As, a result. P & G redesigned how it went market as a branded consumer-goods maker. Its actions fell into two broad categories: participation. In industrywide, efficiency improvements and pricing policy changes both necessary, to improve the value of its brands.As its new pricing strategy, was implemented P & G also took a leadership role in working with the grocery industry - including. Other manufacturers - to significantly accelerate the adoption of more, efficient systems policies and practices, in the grocery. Channel (Exhibit 1).These industrywide changes resulted in dramatic improvements in P & G 's and retailers effectiveness in delivering value.' To the consumer.
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