7/30/2019 ACE - Adapted From Lafley

1/3

Delighting customers

Building brands

Anticipatory change

Fit all individual disciplines into a coherent whole. 80% of the worlds firms failed to meet a growth

threshold of 5 percent in real terms from 1994 to 2004.

Eight areas

1. Purpose and Value

Innovation and execution are team sports

High level of collaboration

Collaboration requires trust

Our purpose is to improve consumers everyday lives

Values- Integrity, Trust, Leadership, Ownership and Passion for serving & winning with customers

2. Get the growth goals right

Dont over-promise to investors with stretch goals

Internally, benchmark the goals based on market realities. If you are 1% of market share and

customers can switch, then 2% is realistic given the company also give enough resources. But if the

market share is 30%, then its not realistic to expect 50% or if the market growth is negative or if

people are not purchasing.

Growth goals can be

Increase market share

Expand to new segments or gegraphies

Create new brands and categories

Consistent margin expansion

People inside and outside the company have to accept these goals. It takes clear, persistent, compelling

and frequent communication.

Use blogs, use letters to employees, cutting edge monthly newsletter written by the CEO

3. Strategy

Its about making choices which business to be in and which business to move out of

P&G business model is driven by creation of loyal customers from point of entry to point of exit. To

get loyal customers, provide greater consumer value and deliver greater customer delight.

Delight can I partner with some company? E.g. Ritz Carlton with Mercedes, we do it with hospitals,

can I prepare a booklet, charity program every month, we spend 10 baht to some charity institution;

thank you from charity group for sending monies through mail or SMS; what ACE is doing for

Thailand like immunization drive, tree plantation,

A delightful customer experience takes individual preferences into account. CRM system which when

person calls can be greeted as Good morning Mr. XYZ, how can I help you today?

a) P&G focused on its core 4 businesses. ACE needs to understand its core 4 businesses where

investments can be made and double digit growth is possible. This will mean robbing market share

from other players. We have to segment the market, understand customer needs and develop products

in a more systematic manner. We have to look to widen the gap between us and the competitors.

b) Migrate portfolio towards faster-growing, higher-margin, more asset efficient business

7/30/2019 ACE - Adapted From Lafley

2/3

Find out which are they

c) Win with lower-income consumers in the fastest growing regions

Greater household penetration, broader deeper retail distribution, a wider mix of brands and products

targeted at a range of income levels

Make the Where to Play choice.

Review, make choice, set and then reset priorities

Create a cycle of strategic commitment

4. Core Strength

Which capability matters most in winning customers in our industry?

Does ACE has meaningful competitive advantage in those areas?

Look at our portfolio where are we doing well, where we were not doing well, and why

Brands, innovation and strong partnerships with mass-market retailers

Are these businesses where we can leverage our scale?

ACE success has less to do with the structural characteristics of the industry and more to do with our

ability to leverage a few core strengths

5 strengths that matter the most in consumer products

a) consumer understanding

b) branding

c) innovation

d) go-to-market capability

e) global learning and scale

P&G was strong in these but didnt have clear competitive advantage in any of these.

Like consumer understanding what was going on in the consumers mind when he bought insurance?

Was he thinking about this traveling habits, or his age, or his dependents? If you know the answer of

that, then TM can structure the discussion that way and penetrate more. The customer will stay longer

with us.

Immersion research

Defining a brands target market is more than demographics and psychographics. It requires a deep

understanding of what drives their emotion. Not only understand the needs but also her aspirations.With this knowledge, develop communications precisely to target them.

This clarity about our core strength will help us manage our back-office operations easily like

facilities, IT, back-office services, employee services etc. Outsourcing partners can give ACE best-in-

class service at best-in-industry costs.

5. Organizational structure and supporting work systems

The common support are ops, finance, TM, HR

New : Marketing consisting of consumer market research, product development, go-to-market launch,

organize marketing events, data-mining etc. the classical marketing functions. The marketing teamshall work for all sponsors and non-sponsor business.

7/30/2019 ACE - Adapted From Lafley

3/3

The account managers will be the key focal point of the relationship and shall be responsible for

building the partnership, seeking more business and route all information to ops, marketing, finance

etc.

90 day rule from concept to market

This will allow more information-sharing between teams and more importantly, we will be leveraging

economies of scale. The marketing team will hence be involved from the ideation to the launch stage,and will not be working in the silos they currently work on. E.g. market research (is quite minimal)

doesnt speak to product development or telemarketing.

Template based approach to product launch and product development is important.

Performance based meritocracy balanced scorecard approach

6. Innovation

Ongoing investment in consumer and shopping behaviour, technical capability and technology

development, innovation systems, concept and market testing and consumer trial generation.

Concept innovation

Design innovation

Communication innovation

Go-to-market innovation

Supply chain innovation

Cost innovation

Everyone has to see innovation as his or her job.

Seed capital

7. Leadership

CEO is personally involved in the career planning of the top 500 development candidates at P&G.

Review their assignment plans, assess their strength and weaknesses and determine where I can help

them grow.

Engaged in succession planning

Diversity is very important and it doesnt relate to just gender or nationality etc. Its more emotional

you need people with differing thoughts in a team critical thinking, logical reasoning, strategic,

perspectives of all.

Training and development and more importantly, coaching.

8. Courageous and collaborative culture

Why do people come to ACE?

What culture does ACE provide for people to stay in and do their work with passion how to get their

commitment for the long-term.