Posted by Dale Buss on February 27, 2012 01:31 PM
Stagnation is a dirty word at Procter & Gamble, one of the world's most successful CPG companies. So P&G is making some strategic steps to re-accelerate growth, heighten profitability and combat what at least are perceptions that the company has slowed down as one of the industry's engines of innovation.
P&G CEO Bob McDonald told analysts last week at the annual CAGNY conference that the company will cut costs totaling more than $10 billion over the next five years, including $1 billion in external marketing spending and reduction of more than 4,000 additional jobs in non-manufacturing areas including marketing.
In his presentation, McDonald said the cuts also are meant to address a mismatch between where the company spends much of its money in developed markets such as the United States vs. emerging markets where sales are growing fastest. P&G also has been hit by rising commodities costs and consumer resistance to resulting price increases in some markets.
Appreciative investors immediately bid up P&G stock by more than $2 a share, to close at $66.71 a share on Friday. Among the sources of savings, McDonald said, will be having consolidating its marketing operation and using more lower-cost digital marketing, as well as launching more multibrand marketing initiatives such as a 30-brand P&G effort built around the 2012 Summer Olympics. Even so, McDonald stressed that he expects 2012 marketing spending to be "roughly" in line with the total last year.Continue reading...
chew on this
Posted by Dale Buss on February 15, 2012 02:40 PM
Don't look now, PepsiCo and Kraft, but a proven CPG rival is coming after your global snacks business in a big way. Kellogg's just-announced acquisition of the Pringles brand from Procter & Gamble signals the potentially significant elevation of Kellogg's ambitions in snacks.
Kellogg was able to pick up Pringle's from P&G for $2.7 billion, of course, only after Diamond Foods — which owns the Emerald Nut brand — had to back out after an investigation of accounting irregularities with the co-op's walnut growers resulted in the replacement of Diamond's CEO and CFO.
Kellogg executives were openly thrilled at the opportunity to triple their global snacks sales in one move and to become the world's second-largest maker of savory snacks after PepsiCo's Frito-Lay brand.Continue reading...
Posted by Dale Buss on February 15, 2012 09:04 AM
Apple slashes iAd pricing again as mobile ad share declines as its stock price and size cloud analysts' view of the rest of the economy.
Avon names new CFO to steer it through scandal and layoffs as it woos HSN CEO Mindy Grossman to take over.
Boeing locks in biggest order with Lion Air.
Carnival Cruise social-media strategy examined in wake of Italy disaster.
Embraer shows off Jackie Chan jet in China.
Heineken to cut costs, invest in emerging markets.Continue reading...
Posted by Dale Buss on February 10, 2012 09:04 AM
Apple, now worth more than Google and Microsoft combined, is hit with stores protest over Foxconn treatment of workers in China, while fans anticipate new iPad and iPhone models.
Barclays caps bonuses as profit falls.
Beyonce and Jay-Z move to trademark daughter's name.
Bing and Viggle partner for second-screen Grammy effort.
Citibank bill-pay app charged some users twice, bank concedes.
Continental pushes past Southwest in customer loyalty.Continue reading...
Posted by Dale Buss on February 9, 2012 04:56 PM
Procter & Gamble finally has begun rolling out to Walmart stores one of its biggest product introductions in recent history: Tide Pods. But delays in getting this innovation to market, along with headwinds from the general economy, have caught the CPG giant in the twin pincers of cost pressures and greater competition.
P&G CEO Bob McDonald recently explained the company's predicament to investors. "It was later than we hoped, but Pods is a game-changing innovation and with it came manufacturing challenges that set us back but have been overcome," he said. "To our knowledge, there will be nothing on store shelves that looks or performs like Pods, and if the demand we are seeing right now is any indication of success, we are confident that Pods will delive ron its promise to change the way people think about laundry."Continue reading...
Posted by Dale Buss on December 16, 2011 08:55 AM
Zynga prices IPO at $10/share (which CEO Mark Pincus played early). Its $7 billion valuation could lift all social gaming.
BlackBerry crisis mounts as troubled RIM co-CEOs announce they're deferring smartphone relaunch until late 2012.
Amazon reports selling more than 1 million Kindles a week.
Apple struggles to take a bigger bite of China.
Covidien to spin off pharmaceutical unit.
Dell abandons netbooks.
eBay counters Amazon's shopper incentive.Continue reading...
Posted by Dale Buss on December 12, 2011 09:01 AM
Amazon considers remedy for Kindle faults.
Anheuser-Busch InBev plans reality show for Budweiser brand.
Apple and HTC face judgment day on patent dispute, as Apple celebrates 100M apps from the Mac App Store and The Beatles' success on iTunes.
AT&T reportedly gets a break in its T-Mobile acquisition plan.
Auto Nation seeks new dealerships in existing Sun Belt markets, while U.S. auto dealers get creative with promotions.
Diamond Foods faces challenge over payments to walnut growers, complicating acquisition of Pringles from P&G.
Disney Four Seasons hotel begins construction.
General Mills takes G-WIN digital innovation initiative global.
GM faces potentially long investigation of Volt fires.Continue reading...
Posted by Mark J. Miller on November 11, 2011 10:01 AM
U-Haul was founded by World War II Navy vet L.S. "Sam" Shoen and his wife Anna Mary Carty Shoen. Even if there have been some major family troubles along the way, the company has never forgotten its roots.
The company will sponsor today’s Veterans Day Parade in New York City. It has “designed and dedicated five vibrant military SuperGraphics (to put on its parade trucks) to honor the five branches of the military — Army, Navy, Marine Corps, Air Force and Coast Guard, and to show our support for the men and women who have served and are still proudly serving in the armed services,” according to a company release.
The company will also pay tribute to those who died on Sept. 11, 2001, as well during the course of the parade. Spectators along the route will also receive small flags as well as “Support Our Troops” ribbon magnets, the release states.Continue reading...