GLOBAL BRIEF: Optimistic P&G to up adspend - Procter & Gamble wants to invest in launching a host of products. By Karen Yates

Last week, Procter & Gamble North America finally admitted that, after only two years, it had ditched one of the most controversial elements of its Marketing Breakthrough 2000 programme.

Last week, Procter & Gamble North America finally admitted that,

after only two years, it had ditched one of the most controversial

elements of its Marketing Breakthrough 2000 programme.



Despite troubles in the Far East, P&G is so upbeat about the feelgood

factor in the US that it has abandoned its declared aim of slashing its

marketing spend to 20 per cent from its average 25 per cent. This was a

key tenet of Marketing 2000 and has provoked a great deal of angst among

advertising agencies since its inception in December 1995.



Last week P&G’s headquarters in Cincinnati admitted it had ’disengaged’

from the practice. ’We are still looking for efficiencies but we are not

measuring them in the same strict way,’ one source said.



The reason for this change is clear. Put simply, it is because P&G is

about to bring out some of its most exciting new products in decades -

and it cannot afford to get it wrong.



These include a revolutionary edible fat, for example, that can pass

through the body without contributing calories and a formulation that

will allow people to dry-clean at home using their washing machines.

There is also a reformulated Tide in the pipeline and a new fabric

deodoriser. In fact, some analysts predict that the company will

introduce up to 100 new products over the next few years.



’It’s a happy coincidence, from P&G’s point of view, that it has a lot

of genuinely new products coming through at a time when consumers are

feeling quite receptive to trying out new things,’ John Elston, an

analyst at Panmure Gordon, explains.



This optimism is also backed by P&G. A company spokesman says: ’We’ve

got such a good flow of new brands coming down the pipeline that we want

to support them with as much advertising as possible.’



And that support will be forthcoming, even though sales might not

strictly justify expenditure under the old rules of Marketing 2000. As

P&G puts it: ’With new products, advertising support just has to be

solid.’



Become a member of Campaign from just £45 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content

Share

1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).