As a result, P&G redesigned how it went to market as a branded consumer-goods maker. Its
actions fell into two broad categories: participation in industrywide efficiency improvements, and
pricing policy changes, both necessary to improve the value of its brands. As its new pricing
strategy was implemented, P&G also took a leadership role in working with the grocery industry—
including other manufacturers—to significantly accelerate the adoption of more efficient systems,
policies, and practices in the grocery channel (Exhibit 1). These industrywide changes resulted in
dramatic improvements in P&G's and retailers' effectiveness in delivering value to the consumer.