CINCINNATI: Procter & Gamble, the consumer goods giant, is planning to invest in "high levels of marketing activity" as it seeks to support a range of new products that are being launched this year.
Speaking at the Consumer Analyst Group of New York 2010 Conference, Bob McDonald, P&G's chief executive, said "we are going to grow, and we are going to be the top of our peer group."
To achieve its objectives, the company is focusing on innovation and heightening its advertising expenditure, as it seeks to drive growth at a time when many consumers are displaying low levels of confidence.
"We have major initiatives in several of our biggest product categories and on some of our biggest brands," McDonald argued.
"We're going to support them at high levels of marketing activity to make sure we generate the awareness and the trial we need to grow market share profitability."
In terms of expanding its portfolio, the Cincinnati-based firm will improve a number of its existing offerings, as well as widening its activity across all prices ranges, sectors and geographies.
Among the examples provided by McDonald was the introduction of Pampers Dry Max in North America, which he described as the "biggest innovation it at least 25 years" as far as the nappy brand was concerned.
With regard to detergents, P&G has unveiled Sarasa in Japan, which carries a 15% premium, while simultaneously rolling out Tide Naturals in India, priced at 30% below the category average.
In the feminine hygiene segment, Naturella has been launched in China, with the aim of appealing to female shoppers on low incomes, while the Mach 3 razor is being targeted at more high-end male consumers in India.
Procter has also "overhauled" the entire Pantene range, from formulation to packaging and marketing, with the revamped haircare line due to hit store shelves in North America in June.
"We've got the strongest innovation programme that I can remember in my 30 year career with the company, and we're investing behind it to drive growth across our business," said McDonald.
"We have 30% more innovation in core categories and in core countries than we had in the previous year. As a result, our topline results are accelerating."
The FMCG titan pegged its advertising expenditure at $8 billion (€5.9bn; £5.2bn) a year, and expects to enjoy an uptick in its overall exposure going forward.
"We are investing in growth. This is roughly a 20% increase in consumer impressions compared to the last fiscal year. Most of that increase will be delivered in the next few months," McDonald continued.
"Putting these marketing plans in place takes advantage of Procter & Gamble's scale. Also, it takes advantage of the fact that we've been able to get lower rates, so we get more impressions, and more efficient cost for the impressions that we get."
The Winter Olympics in Vancouver is one recent event that has consumed considerable marketing resources.
A major part of this communications drive has been what McDonald called the "biggest multi-brand marketing programme Procter & Gamble has ever done," with 18 brands featuring overall.
This campaign has similarly operated across "multiple consumer touchpoints" from traditional media and online to its Brandsaver coupon scheme, with the aim of generating 4 billion consumer impressions.
Sponsorship is also playing a central part in all of these activities, and P&G has partnered with 16 athletes from Team USA, as well as their mothers, who have featured prominently in these efforts.
Speaking at the Consumer Analyst Group of New York 2010 Conference, Bob McDonald, P&G's chief executive, said "we are going to grow, and we are going to be the top of our peer group."
To achieve its objectives, the company is focusing on innovation and heightening its advertising expenditure, as it seeks to drive growth at a time when many consumers are displaying low levels of confidence.
"We have major initiatives in several of our biggest product categories and on some of our biggest brands," McDonald argued.
"We're going to support them at high levels of marketing activity to make sure we generate the awareness and the trial we need to grow market share profitability."
In terms of expanding its portfolio, the Cincinnati-based firm will improve a number of its existing offerings, as well as widening its activity across all prices ranges, sectors and geographies.
Among the examples provided by McDonald was the introduction of Pampers Dry Max in North America, which he described as the "biggest innovation it at least 25 years" as far as the nappy brand was concerned.
With regard to detergents, P&G has unveiled Sarasa in Japan, which carries a 15% premium, while simultaneously rolling out Tide Naturals in India, priced at 30% below the category average.
In the feminine hygiene segment, Naturella has been launched in China, with the aim of appealing to female shoppers on low incomes, while the Mach 3 razor is being targeted at more high-end male consumers in India.
Procter has also "overhauled" the entire Pantene range, from formulation to packaging and marketing, with the revamped haircare line due to hit store shelves in North America in June.
"We've got the strongest innovation programme that I can remember in my 30 year career with the company, and we're investing behind it to drive growth across our business," said McDonald.
"We have 30% more innovation in core categories and in core countries than we had in the previous year. As a result, our topline results are accelerating."
The FMCG titan pegged its advertising expenditure at $8 billion (€5.9bn; £5.2bn) a year, and expects to enjoy an uptick in its overall exposure going forward.
"We are investing in growth. This is roughly a 20% increase in consumer impressions compared to the last fiscal year. Most of that increase will be delivered in the next few months," McDonald continued.
"Putting these marketing plans in place takes advantage of Procter & Gamble's scale. Also, it takes advantage of the fact that we've been able to get lower rates, so we get more impressions, and more efficient cost for the impressions that we get."
The Winter Olympics in Vancouver is one recent event that has consumed considerable marketing resources.
A major part of this communications drive has been what McDonald called the "biggest multi-brand marketing programme Procter & Gamble has ever done," with 18 brands featuring overall.
This campaign has similarly operated across "multiple consumer touchpoints" from traditional media and online to its Brandsaver coupon scheme, with the aim of generating 4 billion consumer impressions.
Sponsorship is also playing a central part in all of these activities, and P&G has partnered with 16 athletes from Team USA, as well as their mothers, who have featured prominently in these efforts.
Data sourced from PG
