"The consumer is boss," Procter & Gamble Chief Executive A. G. Lafley says simply of the business mantra he endlessly repeated to his employees. These four words speak volumes about his keep-it-simple strategy for leading the world's largest consumer products company: Find out what the consumer wants, and give it to her. (Drucker: What the people in the business think they know about customer and market is more likely to be wrong than right. There is only one person who really knows: the customer. Only by asking the customer, by watching him, by trying to understand his behavior can one find out who he is, what he does, how he buys, how he uses what he buys, what he expects, what he values, and so on, pg. 113) (http://www.usnews.com/usnews/news/articles/061022/30lafley_print.htm)

There are two types of research that Procter and Gamble (P&G) employed to gather information from consumers on their needs and product feedback: qualitative and quantitative.

Qualitative Research

Qualitative research is used to generate ideas. It involves small groups of people, and requires in-depth interaction between the researcher and the participants.

Focus Group Discussions:
A relatively small group of people (6 - 12) is brought together and asked to talk about certain topics for exploring ideas and making initial evaluations. The advantage of the group interaction is that people can build on one another's ideas and comments. (http://www.pgbeautygroomingscience.com/index.php?id=128)

In-Home Visits:
People who use the product are interviewed at home. They are asked questions about the task they use the product for, the product, the desired end result, how they judge the end result and which improvements they would like. Being in the home provides an opportunity to understand the actual conditions under which the task is performed and what the constraints are from the user's point of view. (http://www.pgbeautygroomingscience.com/index.php?id=128) P&G has a bevy of statistics to suggest that improved insights and assumptions have led to more effective innovations – including laundry detergent with more noticeable suds. (http://blogs.harvardbusiness.org/cs/2009/03/how_google_and_pg_approach_new.html)

In-Context Visits:

People who use the products are interviewed while they are performing the task or using the product. The task may be anything related to the product, such as, applying a skin care lotion or shampooing. This type of research provides valuable insight into the details of how people use a product, how they judge the end result, and which improvements they desire (http://www.pgbeautygroomingscience.com/index.php?id=128)

In-Store Interviews:

One-on-one interviews with customers while they shop allow P&G researchers to better understand how the actual purchase decisions are made at the point of sales. (http://www.pgbeautygroomingscience.com/index.php?id=128)

Quantitative Research

Quantitative research is used to generate quantitative habits data or to evaluate new ideas or prototypes. It involves larger groups of people and statistical analysis of data.
(http://www.pgbeautygroomingscience.com/index.php?id=128)

Habits and Practices:

This requires large-scale studies. Respondents are asked to keep written records of the details of product usage for an extended period of time by making hand-written notes in a product diary or by completing a diary on the computer. (http://www.pgbeautygroomingscience.com/index.php?id=128)

Blind Tests:

Blind tests are product usage tests in which a new or upgraded product is given to participants who do not know the brand of the product. The benchmark is either the current product or the key competitor's product. Virtually every product upgrade or new product launch by P&G is supported by blind testing. (http://www.pgbeautygroomingscience.com/index.php?id=128)

Concept Aided Usage Test/Concept & Use Test:

People are first presented with the product or brand's concept (which will later be the basis for advertising) and then given the product for usage. This helps P&G learn if the product delivers as promised and whether the whole consumer proposition (including packaging, artwork and pricing) is appealing. (http://www.pgbeautygroomingscience.com/index.php?id=128)

Quality Monitoring:

This is testing done to evaluate whether a product as purchased meets both consumer requirements and product design criteria. (http://www.pgbeautygroomingscience.com/index.php?id=128)

Predictive Analytics:

The Procter & Gamble Co. is leveraging predictive analytics in an effort to gain a complete view of customer attitudes and preferences about its products. Predictive Analytics Software (PASW) is instrumental in understanding of how consumers think about and interacts with P&G products, how consumer make purchase decisions, and how they respond to new ideas. P&G uses PASW data collection software to manage the entire research lifecycle by authoring and conducting surveys, and then sending feedback to analysts for improving process efficiencies. PASW data collection was designed to provide an open, scalable and customizable solution for multi-channel survey research and reporting needs. This has enabled P&G to improve on and execute research with consistent standards, quality and comparability across the globe resulting in considerable savings to the organization and value to its consumers.

( http://www.progressivegrocer.com/progressivegrocer/content_display/features/supermarket-technology/e3idad2bb8d4869dcd6fa1ac86c6006942a) intelligence gathering on P&G’s own new consumer Web sites, such as www.homemadesimple.com and www.vocalpoint.com.