P&G previously employed a pan-Asian structure during the mid-90s, when current global CEO AG Lafley ran the region. The company is reportedly hoping that the rejig will result in a renewed focus on emerging consumers, a group where it continues to trail key rival Unilever in several Asian markets.
P&G is currently divided into three sub-regions: AAI (Asean, Australia and India), Greater China (China and Taiwan) and North Asia (Japan and Korea).
Development Organisations (MDOs) currently report to Global Business Units (GBUs), which define brand equity and are staffed by brand managers. The company now plans to merge GBUs for the three regional hubs into one and add another layer of management, whereby GBUs report to one central executive for each brand. P&G is making the changes to create greater efficiencies.
According to sources, the new structure will involve brand managers and strategy heads across Asia-Pacific being centralised in the Singapore office. One agency source noted that P&G is aiming to develop regional brand and media strategy for local execution. However, the possibility remains that Greater China will be excluded.
For agencies, the shift means they must each put forward one single point of contact for brand planning and for client servicing across Asia-Pacific. “The challenge for agencies is not to lose connection with the local consumers,” said an agency source familiar with the process. “If you start to do more at a regional level, you risk doing lowest common denominator work. The more local you can get it the better.”
The development has elicited widespread support from P&G’s roster agencies, despite the restructuring their own teams will need to make. “It will give P&G more consistency in its marketing and will facilitate better communication between brand teams from all over the region. P&G will be able to use its global learnings and target locally in a much better way,” said a source.
P&G declined to comment.
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P&G is currently divided into three sub-regions: AAI (Asean, Australia and India), Greater China (China and Taiwan) and North Asia (Japan and Korea).
Development Organisations (MDOs) currently report to Global Business Units (GBUs), which define brand equity and are staffed by brand managers. The company now plans to merge GBUs for the three regional hubs into one and add another layer of management, whereby GBUs report to one central executive for each brand. P&G is making the changes to create greater efficiencies.
According to sources, the new structure will involve brand managers and strategy heads across Asia-Pacific being centralised in the Singapore office. One agency source noted that P&G is aiming to develop regional brand and media strategy for local execution. However, the possibility remains that Greater China will be excluded.
For agencies, the shift means they must each put forward one single point of contact for brand planning and for client servicing across Asia-Pacific. “The challenge for agencies is not to lose connection with the local consumers,” said an agency source familiar with the process. “If you start to do more at a regional level, you risk doing lowest common denominator work. The more local you can get it the better.”
The development has elicited widespread support from P&G’s roster agencies, despite the restructuring their own teams will need to make. “It will give P&G more consistency in its marketing and will facilitate better communication between brand teams from all over the region. P&G will be able to use its global learnings and target locally in a much better way,” said a source.
P&G declined to comment.
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