Thursday, November 13, 2014

P&G Cuts Brands to Focus on Four Categories

Procter & Gamble's long-term marketing strategy is to focus on its core brands, and divest as many as 100 others that aren't as profitable or don't fit with the categories it wants to dominate: (1) global beauty, (2) global baby, feminine, and family care, (3) global fabric and home care, (4) global health and grooming. Currently, P&G has 25 brands that each ring up more than $1 billion in annual sales worldwide.

Today P&G sold Duracell to Berkshire Hathaway in a complex financial deal. Earlier, it had divested 2 dozen other brands, including fragrances (Naomi Campbell, Iman, Avril Lavigne) and laundry products available in limited geographic markets (Lavasan, Essex, Magia Blanca, Rol, Perla, Neoblanc).

You can follow P&G's strategy announcements here and see P&G's comments on its core strengths (consumer understanding, brand-building, go-to-market capabilities, and innovation) here. What other brands will P&G divest? Stay tuned.

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