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C+D in LA / Open Innovation Days

Case Studies

GLOBAL

Olay® Regenerist
• In-Licensing Technology Agreement with French SME: Sederma
• Leveraged a leading P&G brand, marketing and scale
• Delivered category-changing anti-wrinkle cream, followed by an entire line of anti-wrinkle products
• Additional upstream projects are underway

Olay Regenerist is now the number one beauty wrinkle treatment on the market and is a leading brand in LA, especially
in Mexico. We ran into a discontinuous technology in France from a small company called Sederma. They run a
skin/wound institute and had found an animo peptide that affects the level of collagen and elastin in the skin. They
demonstrated that these proteins made wounds heal much faster and reduced the level of scarring. We were able to
collaborate with them, formulate this into Olay Regenerist, utilize all of our formulation, packaging, and our experience
around how to get the actives into the skin. The result: our new product achieved number-one market share in just eight
weeks and led to double digit growth for the Olay brand….and an array of additional products in the Olay Regenerist
line.

Table will feature a range of resulting Regenerist products.

Olay® Definity
• Design Partnership with family-owned California Company: Thibiant International, Inc.
• Patented packaging design delivered marketing and point-of-purchase “wow”
• Olay Definity Eye Illuminator became top-selling skin-care eye product in mass channels; design
now used across the Olay Definity brand

As sales of multi-phase (“swirl”) skin-care products were growing in alternate channels –


specialty/prestige/spa/dermatology, P&G saw opportunity for our brands. We partnered with Thibiant International,
which had a patented design process to fill a container with 2+ ingredients, creating a swirl in the product and a high
visability impact for the retail shelf. The partnership began Olay Definity Eye Illuminator®,
which further distinguished the product in the global marketplace. It has grown to include several products in the Olay
Definity line.

Table will feature a range of resulting swirled Definity products.

Swiffer Dusters®
• Out Licensing Agreement with competitor in Japan: Unicharm
• Three-way win for: consumers, both partner companies
• Turned a Japanese product into a global hot-seller

P&G engineers were working on a dusting tool to expand the Swiffer® mop line when C+D teams came across a
hand-held product being sold in Japan. They liked the sleekness and user-ease of the Japanese product – as did
consumers in market testing. The company, UniCharm, did not have the manufacturing, distribution or marketing might
to take their product into other markets. The resulting partnership enabled P&G to launch the Japanese innovation in the
US in just 18 months under P&G’s established Swiffer brand. Now a market leader, Swiffer Dusters are sold in 15
global markets…and now include brand extensions: 360-degree Dusters and Dusters with Extendable Handles.

Table will feature boxed and open Dusters…plus the 360-degree Duster and Extendable Handles.
Oral-B® Pulsonic® Toothbrush
• Development Sourcing Relationship with confidential Japanese company
• Delivered a category-advancing product in one year
• Ongoing, expanded relationship, including Master Joint Development Agreements

P&G Oral Care was looking for a strategic expansion of its dental care line. A pulsating toothbrush was on the
drawing board, but still had up to 5 years in development. Through C+D, the company found a Japanese firm with a
product matching P&G’s vision. The partnership, coupled with additional P&G R&D, resulted in the Oral-B
Pulsonic Toothbrush. It launched in less than a year.

Dunkin’ Donuts Coffee


• In-Licensing Partnership with retail giant Dunkin’ Donuts
• Delivered a new home-roast brew direct to retail consumers
• 2nd most successful new product introduction in ’08

Dunkin’ Donuts is the largest coffee and baked goods franchise chain in the world, with more than 7,000 stores
worldwide (including in LA: Mexico, Chile, Columbia, Panama). Their coffee was a competitive market leader in
franchise coffee sales. But because Dunkin’ did not have the needed distribution network or retail business model,
its coffee was not sold as a packaged product in food, drug or mass stores directly to consumers – thus Dunkin’ was
missing a tremendous sales and branding opportunity. Another hurdle was that Dunkin’s winning coffee was
designed for commercial, and not home-brewing. P&G R&D developed a roast that delivered the same, superior
taste of a commercially brewed cup of Dunkin’ Donuts coffee when used in home brewers – and at a value price
point. Then, P&G distributed the new product in stores across North America, leveraging Dunkin’ Donuts equity and
national brand marketing, and P&G’s distribution channels.

Glad
• Joint Venture with competitor: The Clorox Company
• Market-changing products with a strong innovation pipeline
• Glad sales have nearly doubled since the formation of the joint venture, making
Glad the second Clorox billion-dollar brand

P&G researchers, in their work with diapers, developed technologies that would deliver superior
non-tear and adhesive properties for trashbags and food wrap (ForceFlex® and Pressn’Seal®).
These markets were outside of P&G’s strategic focus and existing manufacturing capabilities.
So a Joint Venture with Clorox emerged, resulting in a solid win-win for both companies,
with Glad sales doubling, making it Clorox’s second billion-dollar brand.
In August, Glad introduced in NA another joint innovation: Glad trashbags with Febreze odor shield.

Table will feature Forceflex (boxed and open), PressnSeal and OdorShield).

Bounce® Dryer Bar

• In-Licensing relationship with competitor company, Ecolab


• Delivered category innovation launched Summer 2009

P&G R&D partnered to create an in-home version of a commercial dryer bar invented and sold by Ecolabs.
A market innovation, the Bounce Dryer Bar delivers fabric softener, static guard and freshness in the
Dryer – and lasts for 2-4 months. Winner of the 2010 Edison Silver Award for new product innovations.

Bounce® Lint & Freshness Roller


• Out-Licensing relationship with Private Equity-owned company: oneCARE
• +20% increase in brand sales at launch; ongoing partnership

P&G developed a lint roller with a scent transfer technology to add freshness to clothes. This was a new category for
P&G, so we partnered with oneCARE to launch and market Bounce Lint & Freshness Roller. oneCARE now
manufactures, distributes and markets the Bounce Roller.
LOCAL

Sugarcane Packaging
• Supplier partnership directed at sustainable innovation
• Working with Braskem, SA, of Brazil
• Introducing with three leading beauty brands by 2011

P&G is working in partnership with Brazilian company, Braskem SA, to use a renewable, sustainable,
sugarcane-derived plastic for packaging on three leading brands: Pantene Pro-V®, COVERGIRL®
and Max Factor®. The packaging pilot will be rolled out globally and be on shelf in 2011. The new
material is being made in an innovative process that transforms sustainably harvested sugarcane
into a high-density polyethylene plastic – that is 100% recyclable.
The innovative solution, announced in August, advances and supports P&G’s commitment to
sustainability and development of sustainable innovation products.

• The sugarcane is sustainably grown and harvested in Brazil


• The production facilities run almost exclusively on renewable energy from sugarcane byproducts; excess
energy is captured and reused in the manufacturing process.

“As we talk to women around the world, they tell us that they want to make themselves more beautiful without making
their environment less beautiful.”

Vick Miel
• Consumer partnership: tapping the ideas and desires of the LA health consumer
• Collaboration partnership: with SymRise, global supplier of flavorings, fragrances and raw materials
• Category-expanding new product introduced in Mexico, then across LA, and WE

Consumer research showed that the LA consumer prized honey as a natural cough remedy, moving to OTC
products only when symptoms worsen. Working in partnership with local consumers and regional experts at SymRise,
the Vicks team developed a cough syrup specific for the LA market that used natural honey rather than artificial flavors.
The result was a product that provided the coating, soothing benefits of honey – along with the look, taste and smell of
nature’s own – with the efficacy of an OTC product. Called Vick Miel, the product was launched in Mexico in 2003,
exceeding year-one sales in just six months. Today, it is sold across LA, and in WE (where it is called Honey Cough).

Operational Acceleration in LA
• Consultation partnership with Masipack-Brazil
• Business need called for increasing production rates, without compromising reliability
• Result: 57% more bags/minutes with 15% cost savings

At three main P&G manufacturing plants, the call came to increase the packaging rate on our powdered detergent lines – for
Ace and Ariel. Reliability and quality were key. When upgrades to existing technology was not delivering adequate results,
P&G partnered with Masipack-Brazil.

After an extensive review of our processes and facilities, P&G and Masipack together designed custom equipment lines that
now are delivering a 57% increase in line speed, while also delivering about 15% in cost savings. (Ace just became P&G’s
23rd Billion Dollar Brand).

Ariel LA -- Packaging that Pleases


• Production partnership with Fol-Mex (Mexico)
• Delivered breakthrough product appearance on shelf
• Led to a larger partnership, saving 2-12 months on new technology deployments
Ariel was looking for a high-impact shelf presence so that it could meet -- and exceed -- competitor packaging designs.
Following a global needs-request, the Ariel team partnered with Fol-Mex, and delivered a high-gloss film that created a
visually appealing and durable package. In a highly competitive market, consumers said the new packaging created a key
FMOT distinction.

Then, P&G and Fol-Mex took the partnership a step further. They formed a Technology Transfer Agreement that enables
Fol-Mex to serve as “lead supplier,” and thus transfer new P&G technology simultaneously to multiple suppliers across the
globe, reducing both time and resource needs for P&G. Now, deploying new technology takes 8-12 months vs the previous
10-24.

Downy Single Rinse


• Partnership with Consumers, Academia, Physicians, Mexican Environmental Ministry
• Delivered a technology breakthrough, reducing the need to rinse from 3-4 times to once
• A consumer and environmental win that grew market share and distribution across LA -- and beyond

Through ongoing interaction with consumers, P&G teams learned that nearly 90% of women in Mexico were using fabric
softeners. For most, who were either hand washing or using semi-automatic machines, that meant repeated rinsing – and
more water, often in scarce supply. In an effort to improve the process for Mexican mothers, P&G teams developed Downy
Single Rinse, delivering the same performance, in only one rinse. They then partnered with groups across Mexico to deliver
the innovation.

P&G teams partnered with the National Polytechnic Institute for performance and water conservation testing; with the
Mexican Environmental Ministry to promote adoption, making it part of the “Forest and Water Protection Campaign;” and
with the Mexican Dermatology Institute for an additional endorsement of quality.

Downy Single Rinse was a market success, increasing sales by 62% in the first six months with consumers saving 37-50%
on water usage. After launch in Mexico in 2004, it was quickly expanded across LA, Asia and the Middle East.

Naturella
• Partnerships with our local Mexican consumers and suppliers
• Led to a category breakthrough in feminine protection
• Naturella is now a category leader, sold in more than 30 countries

Working with consumers in Mexico, P&G teams learned that women were looking for more in their feminine protection
pads. They wanted a product that would protect their skin, not just their clothing, and were particularly drawn to natural
ingredients.

The resulting product was Naturella, a new line in pad protection that combined the technical benefits of a petrolatum and
zinc oxide formula with the addition of a chamomile extract. Designers added chamomile lotion on the topsheet, delivering
significant protection from irritation and odor. The ongoing work with consumers and researchers delivered a new product
now sold in 30 markets. The introduction of chamomile is now being used across other P&G brands (Vicks, Pampers, Pepto-
Bismol).
 

Ace Naturals
• Consumer understanding and technological partnership with Brazilian firm, Firmenich
• Led to a category expansion now being sold in Saudi Arabia, China, India
• Grew Ariel in Brazil and delivered on a consumer need

Research in Brazil showed that consumers wanted natural, regional fragrances and ingredients in their laundry. P&G teams
partnered with Firmenich-Brazil, developing a consumer-winning combination of natural ingredients and compounds that
led to Ace Naturals. The partnership delivered a new product that grew the Ace brand in Brazil and across Latin America.
Ace Naturals now is sold in developing markets across the globe.