Procter and Gamble, as a huge United States Corporation, has many arms. One of these other businesses from the corporation is the well known Kraft. Proctor and Gamble state that their entire business has 35 percent of innovative ideas come from outside of the company. It is these every day people that have been offering Kraft and other companies as part of Procter and Gamble their concepts. Sites like YouTube, MySpace, and others that ask for feedback regarding products gain consumer insight.
Kraft Foods announced in 2006 that they would be offering a new innovative outlook to get ideas from consumers. The new platform is asking for unsolicited ideas from consumers. One of the reasons for this new launch from Kraft is their falling product line. In the 20th century Kraft had numerous ideas that won the attention of American consumers. However, they have had issues since the launch of DiGiorno Frozen Pizza. This was their last successful product line, which came out a decade ago. Since then Kraft profits have been falling.
With the concept of open innovation the company is hoping to bring their product line back to the forefront and increase their sales again. The idea is sure to get meaningful results. Kraft will take the feedback, organizing it in order of importance and try to come out with new products. They may also be looking at their Whirlpool arm to see if there is innovation in that part of the company which can be used.