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P&G targets US growth

October 3, 2011

Hispanic shoppers are a specific subject of focus.

Procter & Gamble is adopting a diversified approach to advertising and marketing as it seeks to drive sales in the US. The owner of Tide and Pampers derives 40% of revenue from the US, and estimates 99% of American households use at least one brand within its portfolio each year.

"In the last two years, we've added $1 billion in growth in North America. I think that's good in this environment; I want to do even better going forward," Melanie Healey, P&G's North America group president, told the Associated Press.

"It's still such a big part of the business that it has got to continue growing to fuel the growth for the rest of the world," she added. "We have some of our highest market shares in the world here in the US, and there's a lot more growth to be had."

A key strategy being pursued by P&G is to increase penetration in the US households already buying its goods. For example, if the 8-9% of homes purchasing between 10 and 11 brands bought a single extra line from its stable, that could be worth an additional $7 billion.

"Our mantra in North America is 'Just one more and a healthy core'," said Healey. "P&G has come a long way in the last three or four years in terms of ensuring that we have a portfolio that meets the needs of a full spectrum of consumers," said Healey.

Hispanic shoppers are a more specific subject of focus, with Gain dish soap and several Febreze fabric care products boasting scents thought to hold a stronger appeal for this audience.

Elsewhere, P&G has recently launched a website, Orgullosa, in both English and Spanish, and has issued coupon booklets solely for Hispanic consumers.

Similarly, P&G has put vouchers for various products in packs of Tide and Pampers, hoping to build trial by giving customers a reason to "buy into" its brands, a goal also linked to the firm's marketing activity.

"Our focus has to be all about communicating our value, the strength of performance, the value of our innovation [to consumers]," said Healey.

"In an economy like this, they're going to be tempted by the cheaper stuff if you're not communicating the value of the innovation."

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