Proctor & Gamble Refocuses on Market Share12 Aug, 2009 Response This Week
BATAVIA, Ohio – Proctor & Gamble Co. missed its own and analysts’ sales growth forecasts with a 1-percent decline last quarter and as such, is renewing its focus on market share, reports AdAge.com.
The decline was the result of decreased marketing spending and a light new-product release schedule.
The company seeks to regain speed against its publicly traded competitors, who have each reported maintaining or increasing growth last quarter, by changing its focus.
Last year, P&G Chairman A.G. Lafley said its focus was on cash preservation and maintaining “investment grade” industry pricing structure.
Still, although P&G beat its target for earnings-per-share by a penny at $.80 on cost cuts, its unadjusted sales for currency fell 11 percent to $18.7 bill and net earnings fell 18 percent to $2.5 billion.
Robert McDonald, CEO of Proctor & Gamble, said that despite how the company tolerated some share losses last year, that “isn’t something we will accept this year.”
The capital needed to achieve P&G’s plan to increase marketing spending will result from its commodity costs, projected to be about $1 billion less and relief from the effects of a stronger dollar.