Procter Gamble plans to eliminate up to 100 & brands

The consumer goods industry is offering people more products than they want, said Alan g. Lafley, Chief Executive of Procter Gamble & (P&G) by announcing on Friday the radical decision of the company to eliminate up to 100 marks.
Lafley announced the plan as a complement of an effort to revitalize the weakened financial performance of the company. The decision will be reflected in all companies in the consumer sector, which for years operated under the assumption that offer as many choices as possible is a good thing.
"There is much evidence in a number of categories of our business, that the consumer really doesn't want more variety and possibilities of choice ... The consumer wants to keep his life simple and convenient, "said the Chief Executive of P&G, one of the most respected professionals in the industry.
Lafley said that the largest manufacturer of consumer products in the world will sell or discontinue of 90 to 100 brands of personal care and household care, which account for about a tenth of its revenue. The goal is to focus on 70 to 80 marks in which the company is a market leader.
The P&G plans to make the cuts in the next 12 to 24 months, but did not reveal the names of the brands that will be discarded.
The brands that will be kept include the 23 who have annual global sales of $ 1 billion to $ 10 billion, including the shampoo Head & Shoulders, Pampers diapers, Crest toothpaste and the detergent Tide.
Lafley, who was rehired for the second time as Chief Executive in July last year, said that one of the biggest problems of the P&G is the "activity and complexity that hinders us". He stated that the descartes will simplify your operations and P&G to concentrate on selling products in markets where she can make more money.
"Let's create a company more profitable and faster-growing, it will be simpler to be administered and operated. This will provide greater flexibility and responsiveness to the staff of the P&G, "he said. Lafley said she didn't know exactly how many individual products the company will fall apart, but noted: "believe me, the reduction will be much greater than the 10% of the sales line".
He added that the way people are buying basic products over the internet, with automatic monthly deliveries increasingly popular, shows that consumers also want simplicity. "We've done a lot of analyses that show that ' more ' is not necessarily leads to increased sales."
The restructuring announcement was made while the P&G disclosed 38 high% in net income for the fiscal fourth quarter ended in June, to $ 2.6 billion, thanks in part to a substantial cost-cutting. Earnings per share was $ 0.89, against expectations of $ 0.91 on Wall Street. Net sales fell 1% over the same period last year, to $ 20.1 billion, while the market anticipated $ 20,5 billion.
At the end of his first year in charge of P&G since returned to revitalize the company, Lafley said that fulfilled the goals of sales and profits for the last 12 months. Joe Moeller, CFO of P&G, cited three main elements that composed a difficult operating scenario: the growth of the market of consumer products as a whole, which slowed to 3% to 4% between April and June 2013 to 2.5% to 3% in the same period this year, the appreciation of the US dollar and stiff competition.
The action of P&G went up 4% on Friday to $ 80,45, after the results were announced. (Translation by Mário Zamarian)