Posted by Dale Buss on May 20, 2013 04:36 PM
Procter & Gamble remains far from out of the woods in its closely watched effort to goose sales in traditional western markets, bolster its biggest brands, rebuild its innovation mojo—and do all of that at a less expensive level. The company's newest such effort is to overhaul how it measures the impact of its $5 billion-plus annual marketing outlay, especially its digital aspects, in a major new review.
America's largest advertising spender just adopted a new system two years ago for measuring ROI on marketing spending because investors—led by activist shareholder Bill Ackman—had begun pressuring new P&G CEO Bob McDonald to get more efficient in that area. Of course, Ackman and like thinkers began putting pressure on McDonald all over the map in an effort to get him to move more aggressively on a strategy to put P&G's financial returns back to historical peaks and more in line with those of competitors such as Colgate and Reckitt Benckiser.Continue reading...
Posted by Dale Buss on April 29, 2013 10:33 AM
Because it's such a huge part of the US and global economies, it's difficult for Procter & Gamble to untether itself from general trends even when that would be expedient. So when consumers worldwide are feeling up, down or iffy—with tentative growth in the US, slowing growth in China and negative "growth" in Europe—P&G executives are bound to feel the same way.
Thus P&G CEO Bob McDonald is having to explain the company's latest quarterly report as a glass half-full, with top-line growth a bit higher than expected, and bottom-line growth a bit lower. The company's huge brand stables in developed economies were mostly a drag, while developing markets give P&G some reasons for near-term optimism—such as Brazil, where it's about to begin shipping Ariel Pods in an effort to turn that country's laundry-detergent market upside down the way Tide Pods have in the United States.
"The market itself is rather choppy," McDonald told investors this week on a conference call. "We're in the midst of a recovery. The market's heading in one direction, but it's choppy."Continue reading...
Posted by Dale Buss on April 5, 2013 11:32 AM
Tide Pods seem to be very good for Procter & Gamble, but some observers believe they're killing the rest of the detergent industry.
Naturally, P&G seems quite happy with how the pre-measured Pods are gobbling up market share in the U.S. detergent business, with expected fiscal-year sales of $500 million this year meaning that Tide Pods are well on their way to becoming yet another of the dozens of $1-billion-plus brands in the CPG giant's portfolio.
Moreover, this is a segment that P&G invented, as AP has noted, taking "eight years, 450 product sketches, 6,000 consumer tests and hundreds of millions of dollars." Despite imitators, Tide essentially has the category all to itself so far, with a market share of about 75 percent of unit doses, drawing customers from rivals without the technology. No wonder P&G plans to take Pods to Europe in the coming months.Continue reading...
Posted by Dale Buss on April 4, 2013 09:37 AM
Arthur Frommer buys back travel book brand from Google, which acquired it with big plans last August.
Facebook readies for rumored phone event today.
Apple's futuristic campus project runs late and $2 billion overbudget.
BlackBerry turns mobile website into "test drive" of new Z10 phone, kills off BBM music service.
CVS and Rite-Aid target allergy season.
ConAgra boosts ad spending as commodity costs drop.
Detroit Electric launches Tesla rival.Continue reading...
Posted by Dale Buss on February 13, 2013 01:37 PM
Procter & Gamble is redoubling efforts to tap into the emotions of consumers and the inventiveness of entrepreneurs as CEO Bob McDonald declares that he has brought the company through a rough patch and sees a brighter future.
The company has just launched a new front door for its vaunted open-innovation program, Connect + Develop. The new website aims to speed up and simplify external connections by linking would be innovators directly to top company needs, and P&G business leaders directly to external innovation submissions.
Connect + Develop, which the company describes as, "at the heart of how P&G innovates," has been responsible for a wide variety of game-changing innovations introduced by P&G over the last decade, ranging from Swiffer Dusters to Crest Whitestrips. The aim of the new site is to make the sorts of connections that lead to such innovations "easier and more effective," Laura Becker, general manager of Connect + Develop and of global business development for P&G, said in a press release. Continue reading...
in the spotlight
Posted by Dale Buss on January 25, 2013 10:59 AM
After spending the first couple years of his tenure falling short of expectations, Procter & Gamble CEO Bob McDonald now sees a big ray of sunshine — in the form of P&G's second fiscal quarter earnings report. Earnings and sales were well ahead of forecast thanks to the chief's recent aggressive actions to boost brand performance and cut costs.
Consumer and retailer response to new products such as Tide Pods and a high-price version of Pantene shampoo has been promising. P&G said it held or grew market share in businesses representing nearly 50 percent of sales in the October-December quarter. In the U.S. market, it met that pattern in businesses representing nearly 60 percent of sales.
The case of Tide Pods, an important new product, is an example of what P&G is aiming for. Marketing has been able to persuade some customers, even cost-conscious ones, that the premium-priced innovation, which is coming up on its first anniversary, is worth the higher outlay.Continue reading...
Posted by Dale Buss on January 7, 2013 04:11 PM
Leveraging its design chops in a whole new way, Target is launching a new multi-faceted marketing campaign behind its CPG products with a decidedly unique twist.
"The Everyday Collection" by Target isn't its latest limited edition designer collaboration. It's a minimalist campaign touting — wait for it — groceries, from cake mixes to laundry detergent, prenatal vitamins to cuts of steak. It's also applying its acknowledged sensibilities in fashion and design to promoting the, let's face it, more mundane SKUs in its inventory on behalf of its brand affiliates: consumer packaged goods.Continue reading...
Posted by Dale Buss on December 18, 2012 05:05 PM
Tide Pods are providing a robust helping of good news for Procter & Gamble in a year when its brands, products, strategy and even CEO have been taking a beating.
The company is projecting $500 million in first-year retail sales for pods, according to Ad Age. That's a major feat, given that of the 1,500 new consumer-packaged-goods launches tracked by SymphonyIRI in 2011, only 21 percent reached one-year sales of even $50 million.
Hungry for a big win at a time when nearly everything about its long-running formula for victory has been questioned, P&G has seen Tide Pods become a relatively rapid success since launching in February with a colorful campaign — with a few speed bumps along the way.Continue reading...