A.G. Lafley is back.
Last week P&G’s board appointed Lafley CEO after Bob McDonald stepped down. This isn’t a new assignment for Lafley; he was CEO from 2000 to 2009.
A look at P&G’s May, 2013 Brand Saver coupon booklet suggests he has some work to do. A few questions to consider:
-Is investing in the P&G brand really a good idea?
P&G is spending a lot of money and time promoting its corporate brand. The May Brand Saver includes a huge ad for P&G. The headline: “Thank you, mom, for seeing the potential in every child.” The ad goes on to proclaim that P&G is the “proud sponsor of moms.”
This just can’t be a good use of money. Do consumers in the U.S. know or care what brands P&G owns? Do you?
A quick test: which of these are P&G brands?
Charmin
Pedigree
Pantene
Windex
Irish Spring
Secret
Sure
Huggies
Prilosec
Claritin
I’ll put the answers below. If you didn’t get most of them correct, then you really have to question the P&G branding initiative.
-Why launch a Fusion disposable razor?
Gillette has had a consistent formula for building profits: introduce a series of high-end razors, each with outstanding quality and higher prices. Then count on refills to drive profits. Play in disposable razors but focus on the reusable segment.
Now, however, Gillette is changing course and embracing disposable razors. P&G is currently rolling out a disposable version of Fusion, its premium product. The headline: “Upgrade to Gillette’s 5-Blade Disposable.”
I haven’t studied recent trends in razors but this feels like a desperation move. When there aren’t any big ideas around, it is easy to launch a cheap version of a premium brand.
This usually does not end well; there is a short-term profit jump and then the brand erodes.
-Do brand mashups really make sense?
P&G has fully embraced the concept of a brand mashup. The May Brand Saver includes the following products:
Gain + Mr. Clean
Gain + Febreeze
Gain + Swiffer
Head & Shoulders + Old Spice
Gillette Venus + Olay
There is logic to some of these pairings. But it gets confusing.
What is the combination of Head & Shoulders + Old Spice? Is that a deodorant that prevents dandruff? Is arm pit dandruff a big issue for people? Or is it a shampoo that smells like a deodorant? That seems unappealing.
A brand mashup can work but taken too far mashups lead to confused consumers and weak brands.
P&G is one of the world’s great marketing companies but some of these recent moves appear focused on driving short-term profits more than building great brands.
It is good to have A.G. Lafley back at the helm.
Here are the results to the quiz:
Charmin: Yes
Pedigree: No
Pantene: Yes
Windex: No
Irish Spring: No
Secret: Yes
Sure: No
Huggies: No
Prilosec: Yes
Claritin: No
Let me know how you did!