Procter & Gamble (P&G) has seen a 6% drop in overall marketing spend, shared its CFO Jon Moeller in a recent financial earnings call. According to AdAge, continued cuts in media, agency and production costs, along with reductions in headcount, also saved the company around US$130 million last quarter.
Moeller added that total reach and frequency had “probably increased” in the quarter, while total marketing spend required to deliver that increase was down â€“ resulting in efficiencies.
According to the FMCG giantâ€™s financials, its beauty segment organic sales saw a 7% increase when compared to one year ago. Skin and personal care organic sales had increased in double digits due to increased marketing investments and premium innovation. Disproportionate growth of SK-II and Olay Skin Care also contributed to this rise, each delivering mid-single-digit growth.
Meanwhile, personal care products, including Safeguard, Old Spice, Olay and Secret, delivered mid-single-digit growth. As for hair care organic sales, the company saw increased low single digits due to increased pricing, innovation and improved retail executions. Overall, P&G reported first quarter fiscal year 2019 net sales of US$16.7 billion, which was in-line with the year-ago level. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased 4%. Net sales in the first quarter of fiscal year 2019 were at US$16.7 billion, in-line with the prior year.
â€śWe generated strong consumption, organic volume and organic sales in the first quarter. This keeps us on track to deliver our top- and bottom-line targets for the fiscal year. Our focus on superiority, productivity and improving P&Gâ€™s organisation and culture is driving improved results,â€ť David Taylor, chairman, president and CEO, said.
In a previous earnings call, P&G said it saw â€śmore savings potentialâ€ť in areas such as advertising agency fees and production costs. This was after achieving nearly US$1 billion in these areas over the last four years, Taylor said. Overall, P&G planned to return to one-stop shops â€śwhere it makes senseâ€ť, and reunite its media and creative.
In July, Publicis Communications reorganised its production units at three of its creative agencies in New York as a result of P&GÂ cutting production workÂ on advertising campaigns,Â AdweekÂ reported. MarketingÂ understood that the time that the move does not affect Asia Pacific markets.
P&G brings Old Spice to Singapore via Shopeeâ€™s Super Brand Day initiative
P&G marketer Dominique Touchaudâ€™s take on the evolution of e-commerce
LOL! P&G to trademark social media acronyms in a bid to target Millennials
Join us at Digital Marketing Indonesia 2018 on 15 â€“ 16 November to learn how to create no-nonsense strategies and achieve omni-channel relevance using AR, social commerce, chatbots, gamification, data-driven marketing and more!