Wednesday, December 21, 2016

P&G''s portfolio falls by half in two years

The option to have fewer products to simplify the Administration, was taken by the P&G matrix in 2014. At the time the company sold Duracell to Berkshire Hathaway; downloaded 43 brands of products for hair to Coty, including Wella Koleston and. And in Brazil, Hipoglós ointment was sold to Johnson & Johnson.
In the hands of Alberto Carvalho, President of the company, in Brazil, the portfolio fell by half in two years, 650 items. Female Naturella absorber, for example, out of business, leaving room for the brand Always known. Pantene, which had 14 types of different products to clean and treat hair, 6 to 8 now. The company reduced the promotions, increased focus on higher-price brands and expanded the presence within the point of sale-with products arranged in different spaces, not just in the gondola for the category-and in greater number of stores. The P&G is currently in more than 7000 shops in the Brazilian market.
Focus on strong brands
Oak, although it has to deal with a portfolio of more than 600 items, focuses on 10 strongest brands. Pantene hair care products, is one of them. This brand has grown more than 30% in the fiscal year ended in June. Australian Aussie consumer scopes that wants to spend more to take care of the hair. Despite the Exchange, who left the items imported from Aussie pricier sales growing at such a pace that Carvalho is considering starting his production in Brazil-the hammer will be beaten at the end of 2017. The shampoo of Ausiie reached cost R$ 54.90 this year due to the strong dollar. Today it costs R$ 39.90.
Diaper market, the competition is fierce. According to Nielsen, Pampers, P&G, kept the market leadership of diapers in 2015, with 29.1% of sales, while the Huggies had 28.5%. To the Euromonitor, Kimberly-Clark has P&G in 2015, with 27.3%. The Pampers would have stayed with 25.9%.
Carvalho says that this year Pampers won market with a new diaper, which contains a gel for more uniform absorption.
The Group of ten major P&G brands, Gillette occupies special place. Is the market leader in Brazil with more than 80% of sales of shaving appliances-must grow more than 20% in the current fiscal year. The Downy fabric softener and SOAP Ariel are the focus in cleaning clothes and Oral-B oral care in.
Manufacture of Ariel will be interrupted
The factory in São Bernardo do Campo (SP), which produces laundry detergent and fabric softener, will be closed in four months. The laundry detergent Ariel ceases to be produced in December, replaced by the liquid version; the row of Downy fabric softener sheets will be produced until April at the unit, before being relocated to Louveira. In Brazil, the detergent is 59% of the market of detergents for clothes. The liquid type accounts for 19%. The market leader is Unilever, manufacturer of Omo, you want to keep the focus on laundry detergent on the fall of consumer income.
Future
"We remain positive about the deal because the model we adopt come running for three years," says Carvalho, who is now working on the budget for 2017. Is already set to the factory that produces toothpastes Oral-B brand, in Seropédica (RJ), will be expanded. Inaugurated in 2015, it has 14000 square meters of constructed area and employs 200 people.
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