BRAND - What is Changing the Brand Game?

No Name Merchandise and a Cohort of Buyers That Aren't Brand Conscious

The First Translucent Soap 1807

He needed a set of impact sockets. Picking up his smartphone he asked 'Google' for the best deal on impact sockets. What happened next amazed him. The first three entries were brands unknown to him but all  sold by Amazon.

Craftsman, a brand he trusted for lifetime warranty was near the bottom of the page. The rabbit hole got deeper as he was transferred from site to site. Eventually he read that Sears had sold Craftsman to Stanley Black and Decker early in 2017. He would need to find a retailer if he wanted to discover the price and acquire a Craftsman set.

Back to Amazon, he was able to order a full set of TekTon impact sockets with carrying case for C$88.00 with free delivery to his rural setting. Sure enough, two days later he picked up an Amazon box at Canada Post Office. The packaging was similar, the price was lower, the sockets worked fine and the convenience was surprising. This is an actual experience of InfoStream staff near Madden, Alberta.

This kind of episode is changing the retail game and moving buyers away from the well known brands and retailers to discover the best price and convenience they can find.

A brand or trademark has been highly valued by those who analyse and invest in businesses. This intangible asset is often recorded as 'goodwill' on the balance sheet. Here are the world's most valuable brands in 2017 as ranked by Forbes.

There are a number of reasons why the value of a brand has historically been very important: Brand reputation supported loyalty; Brand recognition influenced prospective buyers; and, Brand imaging differentiated competitors in a marketplace. However, it seems brand significance has changed for the empowered consumer. They are demonstrating they care more about discoverability, assistance, convenience and price.

Furthermore, name brands have far less influence than YouTube and other social media channels offering authentic story and DIY advice from the users of lesser known products and services. The impact of brand on the price and value complex has also diminished as Dollar Shave Club and Harry's have proven in the past 18 months. Gillette's pricing succumbed to stiff competition from these startups despite the 'recognized' value of the Procter and Gamble brand.

Another large impact is the rising cohort of buyers that do not seem brand conscious. Millennials have a different approach to jobs, education, money and buying. They are more likely to be skeptical of brand promises and more likely to buy without giving brand a second thought.

Just before Christmas, Bloomberg featured an article by Matthew Boyle, entitled 'The Retail Apocalypse Is Fueled by No-Name Clothes'. One of the revelations in the story was how the retailer is developing clothes for Amazon’s surging apparel business. 

Amazon representatives met with fashion designer Jackie Wilson. They wanted her to make a knit top for women that would be sold on Amazon. They wanted the fabric to feel heavy and high-quality just like name-brand attire.

“They are not concerned at all about how many units they sell, and they’re not focused on margins,” says Wilson, whose company in Syracuse, N.Y., makes clothing for Kohl’s, American Eagle Outfitters, and J.C. Penney Co. “They’re concerned about customer satisfaction. They want five-star reviews.”

The Google research we published earlier shows that customer assistance and satisfaction are the primary elements of the new battleground for retailers. Customer satisfaction seems to be the driving force at Amazon. And why not. They have the lead in discoverability, logistics, customer assistance, price and convenience. So why not go for customer satisfaction and have the whole enchilada.

BRAND - Gillette responds to Harry's and Dollar Shave Club

Gillette is rapidly moving to a more cost effective shave

In a "very different approach", Gillette said it will introduce lower-cost razors and beef up its disposable shaver collection.

Gillette will start selling new three-blade and five-blade razors in January that will cost less than $10. It will also start selling disposable razors that will feature the Gillette cooling technology.

This new approach appears to be Gillette's latest response to subscription competitors who have been very disruptive. Until now, Gillette had focused most attention on its expensive Fusion razors, marketing itself as a top-tier brand. That strategy and the rushed to market copycat, Gillette Shave Club, hasn't paid off.

Gillette's pricey razors opened the space for innovation in men's grooming

When Procter and Gamble purchased Gillette for $57 billion in 2005, then the largest acquisition in the company's history, Warren Buffett called it "a dream deal." However, a pack of innovative subscription services including Dollar Shave Club, Harry's and ShaveLogic, have chipped away Gillette's market position. "Gillette was poorly positioned to defend (market) share as consumers shifted to cheaper razors," said Joe Agnese, CFRA Research analyst to CNN.

According to Macquarie Research, Gillette now controls about 56% of the market meaning Gillette's share of the U.S. razor market has dropped 11% in the past two years. Sales at Procter and Gamble's grooming unit, which includes Gillette, slumped 6% in the most recent quarter. Yet Procter and Gamble had not launched a new razor line in 12 years. Their strategy seemed to be upgrading the Fusion series while betting on brand power to lure consumers to its higher-priced blades and slogan 'the best a man can be'.


WHY THIS IS IMPORTANT:
Unilever's purchase of Dollar Shave Club for a billion dollars and Target's partnership with Harry's is easier to understand in the light of the Gillette experience. It now seems evident that brand power is expensive and may not be successful for maintaining brand position in the face of innovation. Clearly there is a paradigm shift occurring that doesn't favour legacy brands of the large and powerful consumer directed organizations and retailers.

Spectrum Brands Buys P&G’s Remaining Pet Care Business

Spectrum Brands Acquires European Pet Care Business

Dateline: CINCINNATI

The Procter & Gamble Company (NYSE:PG) today announced last week, that Spectrum Brands has agreed to buy IAMS® and EUKANUBA® brands in Europe for an undisclosed amount.

In April, P&G announced the sale to Mars, Inc. of 80% of its global Pet Care business, including North America and Latin America. Europe was not included in that deal with the exception of Russia and Turkey. Mars later agreed to buy an additional 10% of the business in additional markets including Japan, Australia and South Africa. With the Spectrum transaction, P&G now has closed deals or reached agreements to sell 100% of its Pet Care business. The deal will close in 2015, subject to regulatory approvals.

P&G’s Chairman, President and Chief Executive Officer, A.G. Lafley, said: “Exiting Pet Care is an important step in our strategy to focus P&G’s portfolio on the core businesses where we can create the most value for consumers and shareowners. The transaction creates value for P&G shareowners, and we are confident that the European business will thrive at Spectrum, a leading company in pet care.” Spectrum has a strong Pet Care business with brands representing $600 million in global sales, including Tetra®, Furminator®, 8 in 1®, and Dingo®.

The geographic regions included in the acquisition, which account for approximately 10% of P&G’s former pet care global sales, include 42 markets throughout Europe.

Procter & Gamble focuses on the big brands

Procter and Gamble announced last week it plans to sell or discontinue as many as 100 brands in the next two years to cut costs and focus on its most important products. 

The company hasn't shown any attachment to some of its larger brand names in the past. It has entirely exited the food business, where it once owned big brands like Jif peanut butter, Folgers coffee and Pringles potato chips. Earlier this year, P&G announced it would also be exiting the pet food business, releasing IAMS and Eukanuba from its portfolio.

READ MORE: Mars to buy most of P&G's pet food business for $2.9 billion

The 70-80 brands that remain will have accounted for 90 per cent of the company's sales and more than 95 per cent of its profit in the past three years, said CEO A.G. Lafley.   

READ MORE: P&G Delivers Fiscal Year Commitments; Organic Sales Increase 3%, Core Earnings Per Share up 5%

"In summary, we are going to create a faster growing, more profitable company that is far simpler to manage and operate," said Lafley conference call to discuss fourth-quarter earnings, which beat analysts’ estimates. "This will enable P&G people to be more agile and responsive, more flexible and faster. Less will be much more." 

READ MORE: Procter and Gamble’s CEO is dismantling the behemoth he spent a decade building

READ MORE: P&G Plans to Shed 100 Brands to Focus on Top Performers

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Time to say thanks to Procter and Gamble/IAMS

The pace of change has quickened. Changes in communities, in industries, in organizations and in relationships occur constantly and often without a backward glance. But today, PetLynx pronounced  gratitude and recognition of a fruitful era, which has drawn to a close. 

IAMS Canada (Procter & Gamble), concluded its longstanding partnership with PetLynx and the Urban Animal™ programs as the company refocuses its commitments and affiliations. IAMS sponsored the PetLynx recovery system since its inception in May of 2006, PetLynx grew the recovery system to be Canada's best and only automated recovery service for animals. Today, the service is active in 341 communities across Canada and has recovered more than 295,000 animals. 

In addition, IAMS has proven a staunch supporter of Urban Animal™ programs by providing sponsorship investments for multiple events over the years. As Presenting Sponsor of programs for seven years, IAMS established its brand as an industry leader and collaborator.  

During the coming weeks, both programs will be re-factored and moved to other sponsors. However, both PetLynx and IAMS will have these accomplishments as elements of their service heritage. 

On behalf of hundreds of thousands of pet owners who were served across Canada, it is time to say Thank You! Thank you to Procter & Gamble's management team for supporting a new vision and thank you to the IAMS team who collaborated in the field to create successful recovery service. 

Mars to buy most of P&G's pet food business for $2.9 billion

Mars, Incorporated and the Procter & Gamble Company announced today that Mars has agreed to buy the IAMS®, EUKANUBA® and NATURA® brands in major markets for $2.9 billion U.S. This is a strategic move for Mars Petcare to complement its large and growing global Petcare business. 

"We view the addition of the IAMS®, EUKANUBA® and NATURA® brands as exceptionally strategic," said Mars Petcare Global President, Todd Lachman. "This acquisition is a perfect fit with our Mars Petcare vision of making A BETTER WORLD FOR PETS™. The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio."

The geographic regions included in the acquisition, which account for approximately 80% of P&G Pet Care's global sales, include North America, Latin America and other selected countries excluding most European markets. P&G said it is working on alternate plans to sell its Pet Care business in European Union countries. 

"Exiting Pet Care is an important step in our strategy to focus P&G's portfolio on the core businesses where we can create the most value for consumers and shareowners," said P&G Chairman, President and CEO, A.G. Lafley. "The transaction creates value for P&G share owners, and we are confident that the business will thrive at Mars, a leading company in pet care." 

The company is expected to complete the transaction in the second half of 2014, subject to regulatory approvals. 

Mars Petcare is one of the world's leading pet food and veterinary care providers and employs more than 35,000 associates across 50 countries. Upon completion of the transaction, IAMS®, EUKANUBA® and NATURA® brands will join Mars Petcare's billion dollar stable mates PEDIGREE®, WHISKAS®, BANFIELD® and ROYAL CANIN®. 

For further company and financial impact related information, READ THE NEW RELEASE.

Procter and Gamble announces organizational changes

Three long-standing P&G staffers have announced their retirement from the company effective in the New Year. 

Vice Chairman and Advisor to the Chairman and CEO, Dimitri Panayotopoulos, will retire effective January 2, 2014, after 37 years of service. Robert L. Fregolle, Jr. Global Business Development Officer, will retire on June 30, 2014 after more than 36 years with P&G and Chief Technology Officer, Bruce Brown, will retire effective August 31, 2014 after more than 34 years of service.

"These changes demonstrate the depth and strength of P&G's leadership bench," said A.G. Lafley, P&G Chairman of the Board, President and CEO. "Dimitri, Bruce and Bob have each served P&G for more than 34 years and have made a lasting, positive impact on the company." 

Carolyn M. Tastad has been elected Global Customer Business Development Officer in place of Fregolle and Kathleen B. Fish will succeed Brown as Chief Technology Officer. 

In addition, P&G announced that Kirk Perry, currently President-Global Family Care, will leave the company effective Dec. 2 to pursue other interests. Steven D. Bishop, currently Group President - Global Feminine Care, will be named Group President - Global Feminine and Family Care. 

READ THE NEWS RELEASE

P&G releases Annual Sustainability Report

Procter & Gamble released its 15th annual Sustainability Report, demonstrating its commitment to helping people around the world live better and more sustainably through an integrated approach to environmental and social responsibility. The report ncludes P&G's sustainability results from the past fiscal year and progress updates on the company's environmental and social responsibility goals for 2020. 

This year, P&G reported absolute reductions in waste, water, CO₂ and energy - all four of the company's major manufacturing footprints. 

READ THE NEWS RELEASE

VIEW THE FULL REPORT

Procter and Gamble - Touching Lives for 175 Years!

P&G HQ Lit Up in 2012 to celebrate 175th anniversary 

In 2013, the Procter and Gamble Company celebrates 175 years of bringing goodness to life. Each day the Company touches billions of people around the globe.

Moreover, Procter and Gamble shareholders have experienced regular quarterly dividends, constant earnings and a share price that has risen to more than 80.00 $US per share.

The future looks bright as the Company adds ethical investment in developing countries, moves to realize the benefit of digital channels for its value chain and secures direct conversations with its customers using social media.

P&G Expands Partnership with the American Red Cross Through the Disaster Responder Program

Procter & Gamble is expanding its partnership with the American Red Cross by joining the Disaster Responder Program to support Red Cross disaster response work nationwide. 

Joining the American Red Cross as an official Disaster Responder represents a milestone in P&G's commitment to bring the comforts of home to families impacted by natural disasters. For decades, P&G has responded to disasters all over the world through product and cash donations. Recently, the company has scaled its efforts to provide kits of a dozen P&G brands including Secret®, Gillette®, Ivory® and Iams®. Kits are packed by P&G employees then shared with families in the days after disasters through mobile relief units. 

READ THE NEWS RELEASE

P&G kicks off Sochi 2014 Olympic Winter Games 'Thank You Mom' Campaign

Procter & Gamble, a world-wide Olympic partner, kicked off the company's Thank You Mom campaign today with the Raising an Olympian series featuring global Olympians. 

The launch of the campaign marks 100 days until the start of the Sochi 2014 Olympic Winter games and is supported by more than 15 P&G brands around the globe. The Raising of an Olympian series pays tribute to moms by showcasing the journey of world-class athletes as seen through the eyes of their moms. 

As part of P&G's dedication to bringing the best to moms around the world, the Thank You Mom campaign will come to life through a variety of media channels and in store. Two million retailers throughout the world will feature P&G Olympic Games themed athlete packaging, end caps and displays. 

The first half of the Raising an Olympian films can be viewed at: P&G Raising an Olympian

READ THE NEWS RELEASE

About P&G

P&G servies approximately 4.8 billion people around the world with its brands. The company has one of the strongest portfolios of trusted, quality, leadership brands in cluding Ace®, Bounty®, Crest®, Duracell®, Gillette®, Head & Shoulders®, Iams®, Olay®, Pampers®, Tide®, Vicks® and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. 

Consumer and Shareowner Value Creation is Top Priority, P&G CEO Tells Shareowners

Procter & Gamble has established consumer and shareowner value creation as its top priority, chairman, president and CEO A.G. Lafley told the company's shareowners at its annual general meeting earlier this week. 

In a review of the business over the past year, Mr. Lafley said P&G had met or exceeded its key financial commitments, including organic sales growth, core earnings per share and free cash flow productivity. The company returned $12.5 billion in cash to share owners. However, he emphasized the company can do better. 

Lafley stressed that the company will focus on its core businesses, which include the leading most profitable brands, categories and countries. P&G must ensure its U.S. business is strong and growing while investing in developing markets that have the largest size of prize and where P&G has the highest likelihood of winning. Resources will be allocated to businesses where value can be created and the company will exit those that cannot deliver acceptable shareowner returns. 

"We have taken a hard look at what we need to do and how we need to change to perform better," said Lafley. "We're committed to do what it takes to get P&G back to balanced, consistent, reliable and sustainable growth and value creation for consumers, customers, and you, our shareholders."

READ THE NEWS RELEASE

P&G Announces Results for the Fourth Quarter of Fiscal 2013

The Procter & Gamble Company reported fiscal year 2013 diluted net earnings per share from continuing operations of $3.86, up 24% versus the previous year. Core earnings per share were $4.05, an increase of 5% versus the prior year. Net sales were $84.2 billion, an increase of 1% including a negative two point impact from foreign exchange. Organic sales grew 3% for the fiscal year. 

"The Company met its objectives for the 4th quarter and fiscal year, and we build on these results in fiscal 2014," said chairman, president and CEO A.G. Lafley. "With an overriding focus on value creation, we will strengthen and accelerate productivity plans."

For fiscal year 2014, P&G expects organic sales growth in the range of 3-4% compared to underlying global market growth of about 3.5%. All-in sales growth is forecast in the range of 1-2% including a negative foreign exchange impact of approximately 2%. Core earnings per share are expected to grow in the range of 5-7%, equal to the fiscal 2013 growth at the low end of the range and within the Company's long-term, annual growth objectives at the high end of the range. 

READ THE NEWS RELEASE

Procter and Gamble Best Company for Multicultural Women

Last week, P&G was included in Working Mother Magazine’s 2013 Best Companies for Multicultural Women for the third consecutive year.

Now in its tenth year, Working Mother’s Best Companies for Multicultural Women is part of Working Mother Media’s Research Initiative, with rankings based upon a company’s focus on hiring, attrition and promotion, recruitment, retention and advancement programs and company culture.

Read the Release

New campaign celebrates daily needs of P&G consumers

Procter and Gamble took to New York City streets Wednesday to promote its latest campaign: The Everyday Effect. 

Through the largest consumer event in the company's 175 year history, P&G served the daily needs of New Yorkers and demonstrated how P&G products make everyday life better. More than 40,000 products representing 25 P&G brands were distributed throughout Manhattan at the moments people needed them most, including Scope mouthwash for coffee drinkers, Febreze car vent clips for taxis and IAMS dog treats for pet lovers. 

READ THE NEWS RELEASE

P&G Declares a 7% Dividend Increase

The Procter and Gamble Company announced last week that its Board of Directors declared an increase of 7% over the prior quarterly dividend from $0.562 to $0.6015 per share on its Common Stock and on the Series A and Series B ESOP Convertible Class A Preferred Stock of the Company. 

P&G has been paying a dividend for 123 consecutive years since the incorporation in 1890. This marks the 57th consecutive year that the Company has increased the dividend. 

READ THE PRESS RELEASE 

IAMS Casting Call

IAMS recognizes importance of human animal bond in advertising 

Procter and Gamble Pet Care (IAMS) is looking for companion animals to star in its next advertisement. The Love Tails Contest launched 14 February 2013 and will run until 03 March 2013. IAMS is searching for unique stories (or 'tails') to feature through online and print advertisements. 

Building off the recently launched Keep Love Strong advertising campaign that was inspired by stories of the unique emotional bond people have with their pets, this contest also seeks to feature the special connections real people share with their animals. 

"The response we've received from our Keep Love Strong campaign has been wonderful," said Kristine Decker, director of marketing for IAMS. "This contest is the next chapter in the journey we're on about celebrating the strong emotional bond between people and their cats and dogs, and the important role IAMS plays in those relationships." 

READ THE PRESS RELEASE

Procter and Gamble partners with Verix

Procter and Gamble hopes to drive Business Intelligence with Verix partnership 

Procter and Gamble Company announced earlier this week it has formally initiated a strategic partnership with Verix Business Intelligence. 

The partership with Verix, a start-up technology company specializing in intelligent business alerts and pre-packaged analytical applications, is being pursued to further strengthen and build Procter and Gamble's capabilities and industry leadership in Business Intelligence.  

A Procter and Gamble press release notes the significance of collaboration with Verix with regards to business data analysis and identifying trend changes and insights. 

READ THE PRESS RELEASE

Procter and Gamble Places Fifth in Supply Chain Evaluation

P & G Leads Industry Peers

 

The Gartner Supply Chain Top 25 for 2012, which identifies global supply chain leaders and highlights their best practices, has revealed Apple took the No. 1 position, while Amazon followed in the No. 2 slot.

Rounding out the list at No. 5 was perennial winner, P&G (Procter & Gamble), viewed as a supply chain thought leader and a representative of brand management. 

The study showed P&G optimized decisions across the supply network using its world-class, open innovation platform, combined with an impressive new product organizational capability integrated within the supply chain. P&G continues to demonstrate a deep understanding of their consumers' "moments of truth" to deliver new products.

P&Gs peers also made the list in the following ranking and Composite Score ((Peer Opinion * 25%) + (Gartner Research Opinion * 25%) + (ROA * 25%) + (Inventory Turns * 15%) + (Revenue Growth * 10%)):

• No. 5: P&G - Composite Score - 5.05
• No. 10: Unilever - Composite Score - 4.21
• No. 11: Colgate/Palmolive - Composite Score - 4.17
• No. 18: Nestle - Composite Score - 3.06
• No. 22: Johnson & Johnson - Composite Score - 2.55

According to the study, many companies have exhausted easily gained efficiencies within their existing supply networks and products. Further improvement will require structural changes to streamline the flow of supply, and eliminate less profitable products. 

Supply chain leaders are continuing to adopt optimization strategies to eliminate rarely used product features, service offerings, suppliers and distribution network capacity that does not add value to customers. Supply chain segmentation has become a critical enabler of supply chain simplification, delivering only the level of service required by each customer type and nothing more. 

Segmenting the end-to-end supply chains to meet customer-driven needs, such as cost efficiency, personalization and speed to market, has been around for several years, but the study reveals the difference this year is that leading companies are adopting and executing on their segmentation strategies.

Why is this important to you?  Simplification of product and service offerings as well as delivering/management of the client experience has never been more important than it is right now.  

Read the Gartner Study

Procter and Gamble Earns Top Spots in New Products

Continuing a long history of leadership innovation, Procter and Gamble launched the two most successful new non-food products of 2011. 

• Pampers Swaddlers/Cruisers with Dry Max; and,
• Gillette Fusion ProGlide.

These products were the #1 and #2 non-food products, respectively, on the 2011 New Product Pacesetters list. Beyond the top two, Procter and Gamble earned eight of the top 25 spots on the list, including Tide plus Febreze Freshness (#8), Charmin Sensitive (#11), Gain Dishwashing Liquid (#15), COVERGIRL NatureLuxe (#17), Febreze Set and Refresh (#20) and COVERGIRL LashBlast Fusion Mascara (#21).

The New Product Pacesetters list is published by the independent analytics firm SymphonyIRI Group, Inc. Acknowledged as the industry benchmark for new product launches, the list recognizes consumer packaged goods that achieve at least $7.5 million dollars of sales in their first year of distribution.


Procter and Gamble NewsRoom