The recently appointed P&G CEO has announced his plans to rejuvenate the company, during a presentation held on Thursday, February 18.
David S. Taylor became the president and chief executive officer of the largest and most successful consumer goods company in the world on November 1, 2015.
Now, Procter & Gamble’s newly minted leader has had his first meeting with market research analysts during the 45th annual conference of the Consumer Analyst Group of New York (CAGNY), held in Boca Raton, Florida.
At the meeting, David Taylor shared his main strategies meant to counter the downward trend experienced recently by the Cincinnati-based manufacturer specializing in personal care products and household cleaning agents.
One of the aims is to achieve savings amounting to $10 billion in the following 5 years, according to Jon Moeller, Procter & Gamble’s chief financial officer.
Similar plans were also revealed back in 2012, and they materialized in cost reductions totaling $23 billion and in non-manufacturing personnel downsizing amounting to 12,600 office jobs that were eventually eliminated.
According to P&G representative Damon Jones, most of the upcoming “productivity improvements” will not be related to layoffs, retirements, buyouts and other job cutting measures.
Instead, the savings will emerge after streamlining processes so as to boost productivity, although there will be some downsizing involved also, depending on personnel needs corresponding to each business unit.
Another plan discussed by the P&G CEO during the CAGNY annual meeting referred to revamping human resources procedures, by adopting a new strategy called “Staff to Win”.
Basically, more outsiders will be brought in, so as to fill a wide variety of mid-level positions, including several marketing and sales jobs like that of brand director or brand manager, thus completely altering the company’s prior practices of only recruiting for such vacancies internally.
Also, executives will no longer be moved from one business unit to another, in order to learn about as many brands as possible.
Instead, they will be allowed to become more familiar with one particular division, in order to channel their entire expertise and experience into making a specific product line soar.
As revealed by the P&G CEO, efforts are also under way to make Procter & Gamble much more flexible and adaptable than it’s ever been, so that it can take advantage of all the opportunities available on the market.
Four of the company’s 10 main product categories will be highlighted: hair care (Head&Shoulders, Pantene, Olay), baby care (Pampers), fabric care (Ariel, Tide, Downy) and grooming (Gillette, Mach3, Fusion).
At the same time, corporate values will have be redefined, with a renewed focus on excellence, innovation and professionalism, so that more top-notch products can be provided to customers, while keeping business as sustainable as possible.
Increased emphasis will also be placed on advertising, with hundreds of millions dollars being allocated for this purpose by the time the last fiscal quarter concludes, on June 30.
More attention will also have to be given to boosting operations in China, where brand performance has remained subpar, despite the fact that this is Procter & Gamble’s second largest market, surpassed solely by the United States.
Hopefully, taking such steps will allow the company to finally experience a surge in sales once again, after the recent slump in revenues which has been going on for the last six quarters.
During the analysts’ conference, the zealous P&G CEO has also discussed one of the company’s upcoming products: Tide Purclean, especially designed to be not just highly effective, but also much more environmentally friendly than other detergents available nowadays.
65% of the ingredients of this new liquid laundry detergent originate from renewable bio-resources, and the product is manufactured thanks to eolian energy, based on a zero-waste policy, through which all the materials that would normally be discarded are reused instead of being dumped at landfill sites.
Tide Purclear will be commercially available starting from May, and the launch will likely be crowned with success, given the fact that just 3% of the detergents on the market are represented by “green” products, despite the growing need for such cleaning agents.
Image Source: YouTube