P&G, in Search of New Markets, Is Going After Bugs

By Sharon Terlep | Jul 09, 2019

TOPICS: New Product Development; Marketing

SUMMARY: It took changes in the P&G culture for the company to successfully develop bug sprays and products that are safe for children and pets. The company brand, Zevo, offers bug-killing sprays and an indoor trap for winged insects. The company believes there is a market for the product as people try to find ways to kill insects without causing potential harm to children or pets. Zevo products are sold at Target and Home Depot. They are also sold online. Demand for insecticides is growing quickly outside the U.S., and the company focuses research on bugs that live in overseas markets. A challenge was changing the company culture. P&G took the complexity out of the decision-making process, so decisions were made in 24 hours. Two hundred people worked on the company's last breakthrough but only 20 on the Zevo team. Zevo started as an online-only brand, so the company could quickly get consumer feedback. Another unique aspect of product development involved renting lab space from a university and using entomologists from there for their bug expertise.

CLASSROOM APPLICATION: Students can identify the hurdles P&G overcame or will have to overcome to succeed with its new products that kill bugs without harming children and pets. They can also discuss how successfully creating this product required a cultural shift.

QUESTIONS:

	1. Describe the new product P&G developed and tell us about its unique characteristics.
	2. What was different about the way this product and brand were developed at the company
	3. What challenges does P&G face in its distribution channels when trying to sell this new product?
	4. Why would P&G develop a product in a segment that is different from its core businesses?
	5. Global markets are important to many US companies like Procter and Gamble. Does this product appeal to global markets? Explain. End