Issue 5   < Cover page TOP STORY & ANALYSIS Faster, Better and Cheaper - At £970, NPD Does Not Get Better Than This! Ah, Mr Bond, We’ve Been Expecting You. FMCG NEWS UPDATE P&G: Value Messaging Will Drive Growth The End Of Cheap Food Is Insight GlaxoSmithKline Cut 6,000 Jobs Globaly Dairy Firm Arla To Shed 130 Jobs And Create 100 New Jobs In Leeds Unilver's New CEO Faces Slow Down Down The Aisle... Additive Ban List Participants Out To Launch... Ginsters All Day Breakfast Roll Supermarket News... M&S See Improved Sales Beverage Bulletin... Portman Group Defends Baroness Coussins RETAIL Up The High Street... Subway Plans For 600 UK Shops Green Room... Green Claims Code In Advertising MARKETING Sales & Marketing... Birds Eye Makes Your Pound Go Further Movers & Groovers... Booting up Boots Facebook And Other Social Networking Sites Face A Critical Year CLICK AWAY Internet Retailing... Tesco Launch Online Fashion TRENDS How To DIY … Loyalty Programs Test Your Idea's For £970- Early Concept Testing   Find out more on how you can test your ideas from as little as £970 per concept.     [FULL STORY]   Video Of The Week The Smartest man in the world...Enjoy its tongue in cheek. [FULL STORY]   TEA BREAK Apologies to all you blondes out there...Oops that me   And Budweiser's Clydesdale Fell in Love       [FULL STORY]   EXTRAS Feedback Send to a colleague Unsubscribe SUBSCRIBE Email Address: First Name: Last Name: Title: Company: Add Remove Send As HTML SEARCH Search for articles containing: PRIVACY STATEMENT Privacy Statement ARCHIVE Issue 4 January 28, 2009 Vol. 2 Issue 39 Issue 3 January 21, 2009 Vol. 2 Issue2 January 14, 2009 Vol. 2 Issue 1 January 7, 2009 Vol. 2 Issue 71 December 17, 2008 Vol. 1 Issue 70 December 10, 2008 Vol. 1 Issue 69 December 3, 2008 Vol. 1 Issue 68 November 26, 2008 Vol. 1 Issue 67 November 19, 2008 Vol. 1 Issue 66 November 12, 2008 Vol. 1 Issue 65 November 5, 2008 Vol. 1 Issue 64 October 29, 2008 Vol. 1 Issue 63 October 22, 2008 Vol. 1 Issue 62 October 15, 2008 Vol. 1 Issue 61 October 8, 2008 Vol. 1 Issue 60 October 1, 2008 Vol. 1 Issue 59 September 23, 2008 Vol. 1 Issue 58 September 17, 2008 Vol. 1 Issue 57 September 10, 2008 Vol. 1 Issue56 September 3, 2008 Vol. 1 Issue 55 August 27, 2008 Vol. 1 Issue 54 August 20, 2008 Vol. 1 Issue 28 Issue 53 August 13, 2008 Vol. 1 Issue 52 August 6, 2008 Vol. 1 Issue 26 Issue 51 July 30, 2008 Vol. 1 Issue 25 Issue 50 July 23, 2008 Vol. 1 Issue 24 Issue 49 July 16, 2008 Vol. 1 Issue 23 Issue 48 July 9, 2008 Vol. 1 Issue 47 June 27, 2008 Vol. 1 Issue 21 Issue 46 June 25, 2008 Vol. 1 Issue 24 Issue 45 June 18, 2008 Vol. 1 Issue 23 Issue 44 June 11, 2008 Vol. 1 Issue 43 June 4, 2008 Vol. 1 Issue 42 May 28, 2008 Vol. 1 Issue 41 May 21, 2008 Vol. 1 Issue 40 May 14, 2008 Vol. 1 Issue 40 Issue 39 May 7, 2008 Vol. 1 Issue 39 Issue 38 April 29, 2008 Vol. 1 Issue 38 Issue 37 April 23, 2008 Vol. 1 Issue 37 Issue 5   June 10, 2011 P&G: Value Messaging Will Drive Growth The strategy involves purchasing more advertising at a lesser cost. P&G chief financial officer Jon Moeller said the packaged goods giant would continue focusing its advertising on the value message, while cutting costs internally to deal with current economic pressures. “We have strong plans at discount channels to win, [which includes] performance-based value messaging across all touch points, [such as] on air, on packaging and in-store,” as well as coupon offers, Moeller said. P&G has also implemented a cost-cutting strategy that involves eliminating senior management staff and reducing the colouring used in packaging to help the company save up to GBP 35m a year, said Moeller. For the second quarter ending Dec. 2008, the company saw net sales dip 3% to GBP14bn $20.4bn, compared to the year-ago period. While organic sales grew 2% due to price increases, the figure is still smaller than that posted by household goods rival Kimberly-Clark, which earlier this week reported an organic sales growth of about 5%. But while P&G is growing slower than rivals, it also has a larger portfolio to manage, said J.P. Morgan analyst John Faucher. “They need to figure out how to get some of their brand momentum back. In certain categories, they are doing well, but in general, they are growing at a slower rate,” Faucher said. Nielsen Monitor-Plus shows P&G’s ad spending is down 8% to GBP2bn $2.99b from January to November 2008, versus the same period in 2007. (This excludes online spend.) CEO A.G. Lafley said going forward the company would focus on maintaining its “share of voice.” The strategy involves purchasing more advertising at a lesser cost. “What matters is share of spending, but more importantly, share of delivery to consumers in the marketplace,” he said. On the retail front, P&G saw consumers trading down among brands within their portfolio: from Tide to Gain, from Pampers to Luvs, and from higher-priced Charmin and Bounty to basic versions of the products. “There is no doubt that in this environment, consumers are looking for value. In many cases, value comes with innovation and higher price points,” Lafley said. One example of innovation that consumers are willing to trade up to is Always Infinity, which has been on the market since October. The product gained a six percent value share, despite being priced at about 60 percent above premium. Private label continues to be a threat, but its penetration really depends on the category, said Loran Braverman, an equity analyst at Standard & Poor’s New York office. In segments like toothpaste, for instance, “it’s relatively low. In batteries, it’s very high,” she said. “As long as [consumers] believe [a product] is really doing something important for them, they’ll buy it." Story sourced from [PRINTER FRIENDLY VERSION] Published by diane@emailgatherers.co.uk - FMCGenews Copyright © 2009 FMCG. All rights reserved.

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