P&G starts global rejig
Global rationalisation plan sparks merger of health and beauty and cosmetics divisions in the UK
Procter & Gamble is merging its health and beauty care and cosmetic and fragrance products divisions in the UK as part of a wide-ranging rationalisation of its global business.
Tim Penner, vice-president and general manager health and beauty care – with responsibility across the UK and Ireland, Europe, Middle East and Africa – and Oscar Ubilluz, vice-president and general manager of cosmetic and fragrance products for the same divisions, have been replaced by a single vice president general manager, Madireddi Mohan.
According to sources close to the company, the move signals the decision to merge the management and marketing operations of the separate divisions.
“The UK is one of the first big markets to merge health and beauty and cosmetics,” he says. “It will be followed by the others as the rationalisation process takes place.”
The source says the mergers are a consequence of the appointment of Penner and Ubilluz last year (MW March 17), whose remit was to find economies across P&G markets. He says many more general managers will be moving around world markets as the rationalisations take place.
Two weeks ago, Marketing Week revealed P&G had slashed its year on year advertising budget by nine per cent in the calendar year 1995 (MW May 10). P&G’s health and beauty division cut its media advertising spend by ten per cent last year to 50m.
P&G has implemented a company-wide policy of reducing marketing support by 20 to 25 per cent of sales, revealed in a leaked internal memo (MW February 23).
P&G is also understood to be rationalising production costs across Europe, as part of this strategy.
The health and beauty care division includes brands such as Pantene Pro-V and Oil of Ulay. P&G’s cosmetics and fragrances include Cover Girl and Insignia.
Penner, who held the job for the past three years, has been appointed vice president and general manager of tissue and towels for P&G North America.
Ubilluz has been appointed vice president and managing director of strategic planning for paper products, P&G Latin America.
