On the Call: P&G CEO Bob McDonald
Friday, August 7, 2009
The Procter & Gamble Co. uses a slogan that its consumer products touch and improve lives. Traditionally, that’s meant with “new and improved” innovations of Tide detergent and Crest toothpaste and other products.
But the company is pushing to increase sales in developing countries where per capita incomes are far below U.S. consumers, in a global recession. Bob McDonald, who took over July 1 as CEO, discussed the challenge in P&G’s fourth-quarter earnings conference call with analysts.
I know you want to change lives, but what if people can’t afford to change their lives?
One of the things we’ve learned is that, in order to improve the lives of people that tend to be toward the bottom of the economic pyramid, you have to innovate for the best consumer experience for those people. It’s not a matter of trickling down higher-tier technology.