P&G Will Cut $2 Billion in Marketing but Spend Some Back to Become ‘Irresistible’

By jneff@adage.com (Jack Neff)


Procter & Gamble Co. wants to cut a whopping $2 billion in marketing spending over five years, and for the first time is providing details on a broader $10 billion cost-cutting plan launched a year ago.

That marketing spending cut comes amid a fiscal third-quarter earnings report where the company missed on sales-growth expectations and lost market-share in developing markets despite hiking ad spending.

While the cost cuts were the biggest takeaway, P&G also outlined how it plans to become “irresistibly superior” in the eyes of consumers.

Procter & Gamble Co. wants to cut a whopping $2 billion in marketing spending over five years, and for the first time is providing details on a broader $10 billion cost-cutting plan launched a year ago.

That marketing spending cut comes amid a fiscal third-quarter earnings report where the company missed on sales-growth expectations and lost market-share in developing markets despite hiking ad spending.

While the cost cuts were the biggest takeaway, P&G also outlined how it plans to become “irresistibly superior” in the eyes of consumers.

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Source:: Advertising Age – Digital