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Procter & Gamble's Sales Woes Will Not End With Sales Of Brands

August 13, 2014: 12:00 AM EST
Procter & Gamble’s decision to sell about half of its brands will not solve its revenue and market share problems. Based on its experience of selling more than 30 of its iconic brands, which failed to improve its bottom line performance, P&G will not be able to solve its sales problems with its latest divestiture move. Other companies, such as Innovative Brands, Pinnacle Foods, and Prestige Brands, have managed to grow sales of brands earlier sold by P&G. Apparently, the company’s problem lies not in its brands, but in its business model. What keeps P&G from achieving sales growth is its centralized planning and decision making, which hinders the company’s ability to keep pace with its rivals in today’s highly competitive and fast-paced market.
Larry Popelka , "P&G’s Problem Isn't Too Many Brands; It’s a Dated Business Model", Businessweek, August 13, 2014, © Bloomberg L.P.
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