Problem
Evidence
Solution
Outcomes
Execution

Why P&G Is Heavy Core &
Losing Innovation Advantage

A Case Study for Procter & Gamble

By Christine Pamela

Legacy Built on Scale, Not Speed

Founded in 1837, P&G became one of the world's most powerful consumer companies by mastering mass production, brand marketing, and retail distribution.

180+
Years Old
$82B
FY2023 Revenue
~65
Major Brands
10
Core Categories
The business remains robust, but there is a huge problem brewing waiting to erupt. Its growth engine is showing fatigue. The innovation architecture is messy.

The Hidden Cost of Scale

What's Working

  • Global supply chain dominance
  • Brand trust and habitual consumer usage
  • Advertising scale across decades

What's Breaking

  • Innovation velocity slowing despite record R&D spend
  • Competitors catching up faster in performance claims
  • Consumers trading down to value alternatives
  • Growth increasingly reliant on internal restructuring
Innovation becomes expensive boringness. Lots of cost, not enough lift.

Innovation Used to Be Their Advantage

1990s–2000s

Swiffer. Crest Whitestrips. Febreze. Gillette premiumization. These were new systems, not just better products.

2020s

Tide evo, PowerMop, waterless SKUs, packaging advances... are format tweaks, not new consumer behaviors.

The last major P&G-created disruption was likely Swiffer in 1999.

But First: Where P&G Still Dominates

Let's be clear: P&G hasn't lost. They still have unmatched supply chain infrastructure, trusted brands across categories, and $82B in financial firepower. The question isn't capability — it's allocation. Where they place their bets determines whether scale becomes an advantage or an anchor.

Innovation Effectiveness Is Declining

↓
Innovation Spend ≠ Innovation Impact
Heavy reinvestment goes into incremental updates (new scents, formats, packaging) rather than new systems or categories.
Market Share Pressure
P&G is losing share in key categories.
Optimization Over Exploration
Operational fixes (supply chain, portfolio streamlining) dominate leadership focus but it is not true consumer-led innovation.
Consumer Behavior Shift
Private labels and small brands attract price-sensitive and sustainability-driven buyers.
Competitors Are Running Faster
Colgate leads in science-led oral care; Unilever in purpose-led sustainability; Church & Dwight in value-driven niches.

Strategic Diagnosis

P&G's innovation playbook worked when scale created separation.
Today, scale creates inertia.
Global TV reach built brands
→
Digital discovery fragments attention
Retail dominance ensured distribution
→
Retailers launch own private labels
Incremental R&D built superiority
→
Consumers no longer perceive "superiority"
Brand extensions meant growth
→
True category creation missing since Swiffer
THE SOLUTION

The Theta Framework

A strategic innovation map that rebalances portfolios so growth comes from new revenue systems — not just new SKUs.

The Core Problem: P&G overrotates on Core and waits too long to move into Edge and Beyond.

The Theta Fix: Rebalance the portfolio so innovation builds new consumer behaviors and business models — not endless product variations.

P&G Today vs. Ideal Balance

P&G Today

🟩 Core: ~85%
🟨 Edge: ~13%
🟥 Beyond: ~2%

Innovation = incremental. New SKUs, not new systems. Competitors catching up. Growth stalling.

Ideal Allocation

🟩 Core: 50-70%
🟨 Edge: 20-35%
🟥 Beyond: 10-15%

Innovation = transformation. New platforms, business models, and consumer behaviors. Future-ready portfolio.

P&G is not just Core-dominant. P&G is Core-addicted!
When 85% of resources go to defending what exists, there's no oxygen left to build what's next.

Strategic Risk

If Core superiority stops being visible to consumers (and it already is): P&G becomes a premium-priced commodity company. Competitors don't need to beat P&G — they only need to be "good enough" at a better price.

Context matters: P&G isn't losing to one competitor. They're being outmaneuvered across multiple fronts by companies that specialized where P&G stayed generalized.

Comparative Landscape

Company Innovation Focus Distinctive Strength P&G's Vulnerability
Unilever Purpose-driven brand ecosystems Sustainability + cultural relevance Loses Gen-Z engagement
Colgate-Palmolive Science-based premiumization Clinical authority in oral care Cedes tech/science narrative
Church & Dwight Fast, efficient niche scaling Value-driven execution Outpaced in affordability and speed
DTC Startups Consumer co-creation, rapid testing Speed, authenticity Bureaucratic slowness
L'Oréal AI & biotech R&D Beauty-tech leadership Behind on personalization and bio-materials

Three Obvious Gaps

1. Sustainability + Organic Segments

P&G sells sustainability, but doesn't live sustainability. Packaging tweaks ≠ Circular system.

2. Marketing & Cultural Relevance

They excel in: Sentimental storytelling (Always Like a Girl), Olympic hero narratives, broad audience messaging.

They struggle in: Gen-Z identity & authenticity, creator-driven brand building, subculture fluency (beauty, wellness, gender, gaming), social-first product discovery.

Their marketing wins hearts but rarely builds tribes.

3. Customer Loyalty Architecture

P&G thrives on habit, shelf dominance, and brand familiarity. But where they're weak: Direct data, digital memberships, personalization, everyday consumer interaction.

P&G's loyalty is default loyalty — not engaged loyalty.

If Amazon removed their search + shelf presence tomorrow? Many brands lose the relationship entirely.

What the "20% Edge Consumer" & Gen-Z Demand

🎯
Purpose
Why should I care?
→ Unilever
✨
Personalization
Fit my exact needs
→ L'Oréal Tech
🌱
Sustainability
Without paying more
→ Indie brands
🔬
Clean Science
Transparent formulations
→ The Ordinary
💫
Identity
Brand = me
→ Glossier, Ritual
⚡
Speed & Novelty
Constant iteration
→ DTC challengers
These consumers don't want one-size-for-everyone, legacy authority, or plastic-heavy, water-heavy systems. They want products that evolve with them, experiences not commodities, and brands that stand for something real.
The future consumer does not come to P&G. P&G must go to them.

Is P&G Capable of True Beyond Innovation?

Financially → YES

$82B revenue and strong cash generation = plenty of innovation oxygen.

Organizationally → NOT YET

Barriers:

  • Risk is throttled by Core governance
  • R&D = product science, not platform design
  • Beyond projects lack commercialization pathways
  • Innovation politics: Core always wins funding
  • P&G values certainty > velocity
Their superpower (scale) is also the bottleneck. They can afford it. They don't know how to systematize it.

Where P&G Could Actually Win in Edge + Beyond

Future Zone Why They Can Win What They Must Build
Smart Home Replenishment Household dominance + Alexa/IoT potential Convert Tide & Swiffer into services
Precision Oral & Skin Health Oral-B + Olay = latent diagnostic data Medical-grade partnerships + AI
Circular Packaging Ecosystems Unmatched distribution scale Refill + reuse infrastructure w/ retailers
Micro-Brand Accelerator Money + supply chain Startup acquisition model with speed, autonomy
Waterless & Waste-Reduced Platforms Tide evo early proof Treat waterless as a full category shift
Identity-driven Brands Zero cultural founders today Creator-led innovation pipeline

The Transformation Imperative

To sustain leadership, P&G must rebalance its innovation architecture.

Rebalancing Outcomes (24–36 months)

+15–20%
Topline Growth Acceleration
+30–40%
Edge Experimentation Speed
2–3
Beyond Initiatives Commercialized

What This Teaches Us

1. Balance the Portfolio

Optimize what works, but fund the future.

2. Unlock Edge Velocity

Dedicated Edge teams can move 3–5x faster without Core friction.

3. Build Translation Pathways

Turn lab research into consumer experiences, not white papers.

4. Reuse Strength Intelligently

Supply chain + brand trust = perfect base for circularity and smart-home ecosystems.

Enabling Execution Capability

Typically this is where I come in

Map Portfolio to Theta

Audit innovation distribution and friction points across all brands and categories.

Design Edge Fast-Lanes

Empower teams to test, learn, and scale outside Core governance structures.

Translate Beyond → Edge

Bring R&D, data labs, and AI pilots into commercial execution pathways.

Build Consumer Co-Creation

Establish direct consumer feedback loops and rapid prototyping mechanisms.

My goal is to focus on identifying what matters, testing fast, learning fast, and scaling what works, without the burden of endless meetings or shelfware decks.

Reimagining Everyday Innovation

The future of consumer goods will be built not on bigger ads or cheaper refills — but on faster systems of learning, consumer empathy, and scalable experimentation.

P&G hasn't launched the next Swiffer in 25 years, and the world is no longer waiting.
P&G mastered the last century's playbook.
The next century will belong to those who can turn trust into transformation.

Christine Pamela

Innovation Strategist | Author of The Innovation Underdog