MARKETING/SOCIAL MEDIA

Facebook, RB partner for direct-to-consumer sales

BY Dan Berthiaume

Parsippany, N.J. – Facebook and RB, a provider of health and hygiene products, have entered into a multi-year, nine-figure global partnership. The two companies have committed to integrating members of their global sales, marketing and creative teams to connect RB brands like Lysol, Mucinex, MegaRed and Air Wick with consumers on Facebook.

Rapid expansion of the relationship is planned during the next three years. Facebook and RB dedicated teams will work together initially in the U.S., UK, Canada, Italy, Brazil, India and Australia. In addition, RB and Facebook will hold joint recruiting events at key universities and have committed to investing in bringing in the best talent for both companies.

“In 2013, we laid the ground work,” said Carolyn Everson, VP of global marketing solutions at Facebook. “This year, we are implementing a radical new way of working together. And, by 2015, we will have uncovered even more innovative ways of driving our businesses together."

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
News

P&G to focus on core brands

BY CSA STAFF

In a move to streamline and simplify Procter & Gamble’s business and brand portfolio, the company will trim its brand portfolio to focus on 70 to 80 of its largest and best-performing brands, A. G. Lafley, president and CEO, told analysts on Friday during its fourth quarter conference call.

In the next 12 to 24 months, P&G will “harvest, partner, discontinue or divest” 90 to 100 brands, whose sales have been declining 3% per year over the past three years. Profits have been declining 16%.

“The strategic narrowing and refocusing of the brand portfolio will have a number of significant benefits mutually reinforcing. Seventy to 80 brands will bring clarity, focus and prioritization and simplicity to a smaller, more integrated, better coordinated organization,” Lafley said.

At least one industry observer viewed the moved as “a long-term positive.”

“While it seems like a sea change given P&G will only be left with 70 to 80 brands, these divested brands represent only 10% of sales and 5% of profits, and P&G had already indicated it would divest up to 10% of sales,” said Morgan Stanley analyst Dara Mohsenian in a research note. “Still, we view this move as a positive, as it will result in simplification for P&G when completed over the next 12 to 24 months, and a higher growth/higher margin portfolio as the remaining brands have outgrown P&G’s portfolio by 100 bps on the top-line and 100 bps in pre-tax margins over the last three years.”

Mohsenian noted that P&G is divesting a broader portfolio of brands than expected and that, while other companies could buy some brands, most potential divested brands are small and declining, which could limit the interest.

In looking to Euromonitor’s data, leading brands that will remain in P&G’s portfolio, according to Mohsenian, include Tide, Gillette, Olay, Crest, Pantene and Pampers.

As Lafley told analysts, the remaining 70 to 80 core brands are leaders in their industry category or segment, with 23 of them bringing in sales of $1 billion to $10 billion, another 14 with sales of $0.5 billion to $1 billion, and the remaining 30 to 40 with strong brand equities in sales of $100 million to $500 million.

“These brands are well positioned with consumers and customers and well-positioned competitively. These brands have strong equities in differentiated products and a track record of growth and value creation driven by product innovation and brand preference,” said Lafley. “These brands are core strategic and have very real potential to grow and deliver meaningful value creation.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
FINANCE

Publix net earnings edge up in Q2

BY Dan Berthiaume

Lakeland, Fla. – Net earnings at Publix Super Markets slightly increased to $404.1 million in the second quarter of fiscal 2014 from $400.1 million in the year-ago period.

Net sales rose about 7% to $7.5 billion from $7 billion, aided by the shift of the Easter holiday to the second quarter of the current fiscal year from the first quarter of the previous fiscal year. Same-store sales rose 6.3%.

Effective Aug. 1, 2014, Publix’s stock price increased from $32.50 per share to $33.85 per share. (Publix stock is not publicly traded and is made available for sale only to current Publix associates and members of its board of directors.)

“This is our eighth consecutive quarter with an increase in our stock price,” stated Publix CEO Ed Crenshaw. “Our associate owners deserve the credit for continuing to make us a leader in our industry.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...