decided to leave traditional shave clubs said they were getting
more blades than they needed. But the men’s grooming brand
contends that Gillette On Demand is the industry’s first as-needed ordering option.
“Ordering blades has never been easier than we’re making
it today,” said Mark Jeffreys, brand director, Gillette.“Gillette On
Demand’s as-needed ordering capabilities and its convenient
subscription options give guys smart choices, not trade-offs.
This new service puts them in control without having to choose
between convenience and flexibility, or between great quality
Health care volume and sales increased behind higher or-
ganic volume in both oral care and personal health care. Power
toothbrushes provided a lift.
Fabric and home care volume and organic sales were up 1%.
Home care organic sales fell low single digits as increased volume due to product innovation and increased customer support
was more than offset by unfavorable geographic mix. Fabric care
organic sales increased low single digits due to increased organic
volume and favorable product mix from premium forms in developed markets and increased pricing in developing markets.
The declines for the nine months ended March 31, 2017 were
modest and better than fiscal
2016 results when net sales
fell 8% to $65.3 billion, which
the company blamed primar-
ily on a strong dollar. Organic
sales rose 1% as increased
pricing more than offset a
3% decline in volume. Fabric
& Home Care accounted
for 32% of sales, followed
by Baby, Feminine & Family
Care (28%), Beauty (18%),
and Grooming and Health
Care (11% each). P&G has
more than 20 billion-dollar
brands and is the leader in re-
tail hair care with more than
a 20% share. In grooming,
P&G is the leader in blades and razors with a nearly 65% share.
In oral care, P&G is No. 2 (behind Colgate) with a 20% share.
Finally, in home care, P&G is No. 1 on the strength of Tide, Ariel
Taking a closer look at the categories, beauty sales fell 9%
to $11.4 billion. Hair care volume fell mid-single digits in both
developed and developing markets. Skin care and personal care
volume declined in the high single digits due, in part to the di-vestures of Camay and Zest and the Venezuelan deconsolidation.
Health care sales fell 5% to $7.4 billion due to a 2% decline in
unit volume and 6% decline on Forex. P&G noted that oral care
volume fell in the low single digits due to a high single-digit
decrease in developing regions caused by higher prices, more
competition and less customer inventory. Meanwhile, volume in
developed regions increased low single digits driven by product
innovation. Fabric and home care sales fell 7% on a 1% decline
in unit volume. Unfavorable foreign exchange reduced net sales
by 6%. Fabric care volume declined low single digits due to a
double-digit decrease in developing regions driven by increased
pricing, reduced distribution of less profitable brands, minor
brand divestitures and the Venezuela deconsolidation. Organic
volume in developing regions decreased high single digits.
Volume in developed markets increased mid-single digits due to
innovation and increased marketing. Global market share of the
fabric care category was flat. Home Care volume increased low
single digits, as developed market volume increased low single
digits as benefits from product innovation more than offset impacts from competitive activity. This was partially offset by a low
single-digit decrease in developing regions following increased
pricing. Global market share of the home care category was down
slightly, according to P&G.
As P&G continues to evolve, company executives insist productivity savings from fiscal 2017 through 2021 could reach $10
billion. They’ll come through a combination of a reduction of
manufacturing expenses, transportation and warehousing, and
raw and pack materials. Transforming its supply chain will link
P&G to its customers, according to the firm.
And yet, for all its efforts, some say P&G executives aren’t
doing enough to boost the
company’s and investors’ fortunes. Last month, P&G said
it is in“ongoing constructive,
active” talks with Trian Fund
about the future of its brands,
and is willing to take ideas
from the hedge fund about
how to improve its business.
Trian has been increasing its
stake in P&G, and an SEC filing last month showed it held
more than 36M shares. The
hedge fund, like investment
houses before it, is urging
P&G to consider a breakup
that would unlock the company’s value.
You can still do more with less with Dawn.
Lifestyle expert Whitney Port recently promoted Dawn’s various uses.