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P&G Reallocates Spending
A.G. Lafley, chairman-CEO of Procter & Gamble Co., told a group of analysts that the company plans on “reallocating investments” to those areas of the communication plan that are working hardest.
MediaPost reports that P&G is said to be reducing television spending in favor of Internet and direct marketing initiatives.
In evaluating where to spend marketing dollars, P&G looks at which businesses can wring the most efficiency out of their ad and marketing budgets. Lafley suggested increased spending on the Gillette Fusion razor in order to persuade Mach 3 users to upgrade.
He said the company is experiencing growth in sales to its two biggest retail customers: Wal-Mart and Target. One of the reasons for the Gillette acquisition was to give P&G more leverage with the top retailers.