P&G sees growth opportunities in grooming market despite poor results

Organic sales of grooming products were down 1% in its third quarter results, marking another tough period for the category, but the world’s largest advertiser believes all is still to play for.

Procter & Gamble (P&G) believes there is still room to invest and grow in the grooming category despite its ongoing poor performance and the impact this is having on overall business results.

Organic sales of grooming products at P&G, which owns grooming brands including Gillette, Venus and Braun, decreased 1% in its third quarter results, while net sales were down 8%.

Speaking on a call to investors today (23 April), P&G’s vice chairman and chief financial officer Jon Moeller, said while the company is not where it wants to be in terms of growth in the category, it is “not a disaster by any means”.

Where P&G does see a big opportunity to improve its performance, and where it is “investing more”, is through its new Gillette Skinguard product for sensitive skin.

“We have the potential to increase usage, bring men back into the category who have left, or increase shave frequency,” Moeller said, adding that it is already seeing this in Europe especially.

“But we probably do need to invest more to get significant awareness,” he admitted. And while Moeller said it would be “very unusual in an industry as competitive as this” that P&G will always win against its competitors, “if we can win two-thirds of those encounters we are likely to drive disproportionate top and bottom line growth”.

P&G performed well in other categories, with beauty sales up 9%; fabric and home care sales up 7%, largely driven by a significant reduction in promotional activity; health care up 5%; and baby, feminine and family care up 2%.

This contributed to overall net sales of $16.5bn (£12.7bn), an increase of 1% versus the previous year.

Moeller said P&G will continue to invest in “smart opportunities” it believes will increase its “superiority advantage”.

“Where we find smart opportunities to invest, we are going to invest,” he said. “We really believe in these categories where performance drives brand choice we need to be superior and we are very determined to deliver that. That doesn’t mean we’re going to do super things, we are very focused on return. But we know superiority delivers return in categories.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here