P&G Shedding off half of its
brands
Branding is very important for any company or any product to
succeed. Branding is the element that distinguishes a product from competitor’s
product. A strong brand enjoys many advantages and such a strong brand is P&G
which stands for Procter & Gamble. This is a brand known and bought in
every corner of the world. From beauty and health to home and beyond, P&G’s
brands make every day just a little better for billions of consumers around the
world.
Recently it has been declared that Procter
& Gamble Co. will shed more than half its brands, a drastic attempt by the
world's largest consumer-products company to become more nimble and speed up
its growth.
The move is a major strategy shift for
a company that expanded aggressively for years. It reflects concerns among
investors and top management that P&G has become too bloated to navigate an
increasingly competitive market.
But the problem is not with the brands,
it is rather the business model which is problematic. P&G has been selling
many of its iconic brands for a while but no improvement on the remaining
brands has been made as claimed by them.
J.M.
Smucker, buyer of P&G’s Jif peanut butter, Crisco shortening, and Folgers
coffee, has had nearly 50 percent sales growth since 2009. Other companies,
such as Innovative Brands (Pert Plus shampoo and sure deodorant), Pinnacle
Foods (Duncan Hines), and Prestige Brands (Chloraseptic) also have
done well with P&G’s orphaned products.
The problem seems to be failure to innovate and update its
product line and stay competitive. P&G is not being able to create Point of
Difference (POD) for the products and satisfy developing needs of customers.
So, a strong, influential brand is not the only thing to excel success of any
product.
