Kim Benjamin
Aug 5, 2014

Procter & Gamble wields axe on up to 100 of its least profitable brands

Procter & Gamble announced today that up to 100 of its least profitable brands will be axed as it looks to streamline its costs and focus on its core brands

AG Lafley
AG Lafley

The FMCG giant, whose brands include Pampers, Ariel and Gillette, said that it will shed about 90 to 100 brands around the globe over the next year or two, leaving it with about 70 to 80 brands. It did not name which products it intends to keep but they will be organised into up to a dozen business units under "four focused industry areas".

According to P&G, its 70 to 80 leading brands accounted for 90 per cent of its sales and 90 per cent of its profit in the year to 30 June. 

On a call with analysts, CEO AG Lafley said the strategy would create a new streamlined P&G "that will continue to grow faster and more sustainably, reliably create more value".

In June, P&G announced that it was axing the marketing director role across its entire portfolio of brands, and replacing this with brand directors. 

This article was first published on marketingmagazine.co.uk

Source:
Brand Republic

Related Articles

Just Published

15 hours ago

Singapore introduces new laws to curb harmful ...

Singapore's parliament will debate the bill at the second reading in November.

16 hours ago

Kiwi life insurer raises the dead for a last ...

The work by Special New Zealand gives knocked-off drama series characters one last shot at acting, put to good use plugging Partners Life insurance.

16 hours ago

Women to Watch 2022: Emma Campbell, Tourism Fiji

Playing a key part in the revival of Fiji’s tourism, Campbell has built commercial success and a team of leaders while operating in a new country during the pandemic.

16 hours ago

CirclesLife's marketing lead on building a ...

The telco has moved past vanity metrics for its campaigns—such as clicks and viewable impressions—in favour of metrics that show a clear path to business outcomes, such as sales.