P&G Launches eStore, Tests Marketing Concepts

Procter & Gamble, maker of Head & Shoulders and Pampers, is launching a new ecommerce “learning lab” that the packaged goods giant says will test concepts and programs that, when successful, can be reapplied across P&G’s retail partners in the hopes of growing consumer affinity for P&G brands and ultimately increasing sales.

The eStore is rolling out in beta with 5,000 invited consumers; the store will roll out broadly in the U.S. in March or April, the company announced.

P&G will use the online store to experiment with tactics such as e-coupons, cross-selling, and various shipping options, to monitor how these impact results. For example, someone who is purchasing Tide online might be asked if they would also like to buy a fabric softener, a spokesperson for the company explained (via Brandweek). The site will allow for P&G to change tactics quickly, in real time, and to compare results across different campaigns.

Partnering with PFSweb

P&G is working with ecommerce services company PFSweb Inc. on the eStore.

“As the growth in consumer web commerce continues to evolve, we are seeing a strong trend towards the broadening of consumer purchase interests into more product categories,” said Mark Layton, PFSweb’s CEO. “With each new product category comes the opportunity to develop and test marketing, selling and retention concepts. In working with P&G on our eStore, we’re looking forward to uncovering new insights and innovations that deliver on the potential of e-commerce as a powerful sales channel for a wide range of consumer products.”

Pricing, promotion, shelving and distribution will be at the sole discretion of PFSweb. P&G will work closely with PFSweb to develop new concepts, programs and marketing efforts to test via the eStore.

Fiscal Q2 Results Beat Expectations

Procter & Gamble net income in the quarter ended Dec. 31 fell 7% to $4.66 billion, or $1.49 a share, from $5 billion, or $1.58, a share, a year earlier. Sales rose 6% to $21.03 billion from $19.76 billion. Organic sales, or sales minus the impact of acquisitions, divestitures and foreign exchange, rose 5%.

Unit volumes also rose 5%. Profit and sales exceeded analyst expectations for the quarter.

P&G raised its forecasts for fiscal 2010 organic sales and core earnings, the second time in three months the company raised its target for organic sales. Organic sales at P&G have lagged for the past year.