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“Looking at design as part of the total customer experience is critical.” -- Claudia Kotchka, VP Design Innovation & Strategy, P&G
As the president of a design firm, who wholeheartedly agrees that product and package design play a vital role in creating customer experiences, a recent article in ADWEEK really hit the mark.
Check out “Product Experience Drives Performance” to get a birds-eye view of the inner workings of the world’s largest consumer product company. This is a terrific interview between ADWEEK editor-at-large Noreen O’Leary and Claudia Kotchka.
The upshot of the article: Consumer product giant P&G has gone from being a company that looked at product performance first, to paying attention to product experience first. More interestingly, P&G has focused on designing the consumer’s experiences at every touch point.
A decade ago, the consumer product giant employed 30 staff designers; today they employ about 250. But that doesn’t mean the company can’t hire any outside design consultancies. It can and it does. Not only that: Procter & Gamble also hires designers from all over the world to gain new cultural perspectives... important for a global company.
Interestingly, most of the designers at P&G have been recruited from outside of the company; an unusual practice for a company that always prided itself on growing its own home-grown talent. The best part? “Design at P&G is not a centralized function”, stated Ms. Kotchka in the article.
She went on to say that: “All of the designers are in the business units. We have them sitting with our R&D working on innovation from the beginning, sitting with our marketing folks, working on branding from the beginning. That’s a big change from the historical approach of handing it over the wall at the end. . .Looking at design as part of the total consumer experience is critical.”
This new “designing of the total customer experience” mentality at P&G was a directive from the top. As soon as A.G. Lafley was appointed CEO, around the beginning of this decade, this became the new mandate at P&G. The article states that: ‘Lafley has set out to make P&G as much about design as technology or price point’.
Translating all of this: P&G’s push to put a new design approach to product and packaging for its Gain laundry detergent line in February 2006 has led to the company’s recent announcement that Gain had joined the company’s roster of billion dollar brands. Likewise, last year’s relaunch of the Herbal Essences hair care brand, has paid huge dividends. Herbal Essences is now the #3 hair care brand in the country.
What do you think of P&G’s approach of making every single product and packaging component part of an overall design experience for the consumer?
Do you think this approach gives Procter & Gamble the edge over its competitors? I’d love to hear from you.
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Comments
Ted, I am reminded of a quote I recently found from HBR regarding Amazon and Jeff Bezos. He says, "I am congenitally customer focused." I think that pretty much sums up what P&G is doing with design. They are not designing for design's sake, they're dialed into the customer in a deep way. Appealing and attractive design then, for P&G, is an output of their deliberate focus on customers.
Posted by: Paul Barsch | 12.20.07
The depth of influence of this approach is astounding - everything thought of from the customers point of view.
And of course, it makes sense - it is this sort of approach that ultimately leads to the level of differentiation that brands need in this day and age.
I must say, however, from a personal point of view, that I expect this level of attention to detail from companies. I'm not afraid to tell you that I am 23, and as such have grown up in a world where this level of customer focus is certainly not uncommon and is, indeed, expected.
I've never been able to experience the product-focussed days of old.. and it does make me wonder - where on earth can companies go next to differentiate and add value (or rather, more value than their competitors)?
Posted by: Anne Rogers | 12.20.07
Paul,
Another good example of successful design that is consumer-focused is Apple. And how about this quote from Michael Dell: “We believe that the quality and nature of the customer relationship and experience is going to be the next competitive battleground.” Dell, too, is design focused and for the same reasons P&G, Amazon and Apple are: their customer.
Thanks for adding your insights. They're right on the money.
Posted by: Ted Mininni | 12.20.07
Anne,
I'm impressed by your insights, based on personal experience. You're obviously very observant, thoughtful and informed.
The fact is that more and more companies are moving from inside-based product innovation to more of a customer-centric one. And I have to think that one of the most persuasive reasons they're doing this: more meaningful interface with their customers, and let's not forget, the performance results of the companies that already practice this. Consumer-based design innovations and ethnography are the present and future blueprint for all product companies and service providers.
Posted by: Ted Mininni | 12.20.07
i'm a strategist at a product development firm in cincinnati, and we've done well over 100 projects for P&G over the last 5 years, so we know their design process quite well.
it's really impressive to see a company that big change its culture so quickly (relatively speaking), and embrace design so wholeheartedly. it's a pleasure working with them, and their design function is only getting better. really, it's still in its infancy. they're not perfect, of course- they still aren't very good at certain things- but they're definitely getting better every day.
Posted by: Finn McKenty | 12.20.07
Hi Finn,
Thanks for adding very valuable insights to this post. As someone who works on the product development side, you've had a unique opportunity to see P&G's inner workings up close. I agree with you. It is impressive when a company of this size embraces a new M.O. and moves in that direction with commitment. That kind of thing starts at the top, and from all accounts, CEO Alan Lafley is the catalyst for this and is very committed to the integration of design in all of his business units. You're right: it takes time to work the bugs out of new systems, but what a pleasure it must be to see the plan unfolding. Thanks for adding so much to this post, Finn. I appreciate it.
Posted by: Ted Mininni | 12.21.07
In this age where mass retailers have built up exceptional supply chains to wring out costs, thus allowing for lower prices, CPG firms did the same and the best now focus on design as the differentiator.
With functionality, performance, and price taken for granted by shoppers, only features remain to tickle our emotions and persuade us to buy. So, to design for emotional appeal is an important element of any new product design strategy. Especially those for nascent categories and positions, so as to build a competitive advantage in design first (while continually seeking to tighten value chain costs and processes).
Similarly, the best retailers will focus on designing the 'total shopper experience' in order to grow and develop loyal customers who'll tell their friends. Design, for them, means store layout, product displays, endcaps, visually appealling merchandise, great return policies, friendly/knowledgeable staff, and other tangible & intangible elements of the 'experience'. I covered this aspect from a book review recently posted on my blog.
Thanks for the article; as a student of NPD and having worked for a couple small HBA and home decor manufacturers...this is how the world works once certain categories reach commoditization - design matters more than ever before.
Posted by: Mario Vellandi | 12.22.07
Mario,
You've made a number of very salient points in your remarks, and I thank you for expressing them so well.
Great design is a major differentiator today, and it should appeal equally to the consumer's intellectual and emotional sides. Both are important. I agree that ultimately, emotions do the most to motivate purchase and loyalty, provided the brand lives up to consumer expectations, that is.
Lastly, I agree that great design helps corporate and product brands set themselves apart from the competition. It also ensures escape from the dreaded "commodity" tag.
Thanks for writing, Mario.
Posted by: Ted Mininni | 12.28.07
P&G. Still the Big Dog after all these years. And the most strategy-driven company the world has ever seen. When they start putting all this effort behind the 'Product Experience,' you know something good is going on.
Granted, P&G might be a bit late to the party compared to Nordstrom, Starbucks, Apple and Nike. But when they do adopt a new strategy they get it right more often than not, and make a boatload of money in the process. And isn't that what it's all about?
I hope we get to see more companies from different industries making experiential marketing strategies work.
Posted by: Casey Davis | 12.31.07
Casey,
Thanks for your comments. The brands you've cited are very design-oriented. They have successfully leveraged design to make the customer's experiences much more memorable than their competitors have. I agree with your assessment that once P&G gets behind an idea, they work to make it happen. That takes commitment and consistent work, but the pay-off is worth it. A positive, vibrant brand image is even more important than making a "boatload of money" in the long run. Savvy companies know that and work tirelessly to achieve that goal. Great insights, Casey. Thanks for weighing in.
Posted by: Ted Mininni | 01.02.08