One year after laying out plans to cut $10 billion in costs by fiscal 2016, the Procter & Gamble Co. said it is moving full steam ahead to improve productivity.
At the Consumer Analyst Group of New York Conference held in Boca Raton, Fla., on Thursday, the company’s chief financial officer, Jon Moeller, reiterated that the plan consists of trimming $6 billion from costs of goods sold, $3 billion in nonmanufacturing overhead and $1 million in marketing.
Change is well under way at P&G, said Moeller. The $84 billion company has surpassed plans to reduce head count by 5,700 by the end of fiscal 2013 by eliminating 5,850 roles by the end of January 2013. A number of those posts, or roughly 1,000, have come from streamlining its marketing organization from five tiers, “or five hand-offs of work” to three tiers — namely global concept, regional tailoring and local execution. The change gives the company “a better line of sights from design to execution,” said Moeller. He added that P&G, which spent $13.7 billion on advertising and marketing last year, is focusing its efforts on “fewer, bigger ideas that can travel around the world.”
The company also aims to stretch its dollars by shifting its spending from TV advertising toward digital media, which Moeller called a “higher return on investment.”
P&G’s hope is that the host of new products across hair care, makeup and skin care will give a jolt to its beauty sales, which, for the quarter ended Dec. 31, inched up 1 percent to $5.4 billion while unit volume was flat.
Moeller said the new Pantene Expert Collection, introduced in the U.S. last November, will expand to Latin America this quarter. Items in the collection are priced between 200 and 250 percent above Pantene’s base line. P&G’s introduction of Illumina Color by Wella has added 7,000 salons and will roll out to Latin America, and Australia and New Zealand in March. Other new products include Vidal Sassoon hair care, the reformulated Olay Regenerist, and a line tailored for young women called Olay Fresh Effects.
The company continues to train its sights on developing markets, which accounted for 38 percent of sales in 2012, or $32 billion. Moeller noted that in 2012, the company’s sales in Asia were $15 billion, up from $1.5 billion in 1991; in Latin America, sales were $8.3 billion, up from $1 billion in 1991, and in Central and Eastern Europe, Middle East and Africa, sales were $12.1 billion, up from less than $1 billion in 1991.
Moeller said, “We know there is significant more upside for trade up as the wealth across developing markets increases and as we continue to globalize premium innovation.”
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye