New results ask for new techniques of improvement. Change is the only constant we known but the response to change can actually take things to another level. Procter & Gamble is planning to sell approximately 100 brands who are currently under performing. The estimated time for the beginning of this grand sale is this summer and the purpose of all these low performing brands that are being given a push is that the portfolio of each and every single brand should be consolidated as soon as possible, under the protective wings of the company.
However, the P&G Chief Financial Officer, Jon Moeller knows that the annual sales will be considerably affected by these very well organized sales: the decline would be of nearly 14 percent in comparison with the normal amount of money that the company succeeds in gaining every year. However, these less successful brands cover only 10 percent of the total revenue annually, so it won’t be such a great loss overall. The company expects that the brand sales will stop along with the end of 2016, if everything goes as planned.
Furthermore, starting with the year 2016 Warren Buffett’s Berkshire Hathaway will be the one who will sell the Duracell batteries, taking into consideration that P&G will be handling them to this very important company even if they brought into their accounts around $2.6 billion annually.
Procter & Gamble has always been selling a various brands that are often very different from one another, starting with pet food and all the way to healthcare and beauty products. As a matter of fact, the company plans on starting to sell Braun appliances and Wella salon professional.
CEO A.G. Lafley told analysts gathered in Boca Raton, Fla. that:
“We hope by July to turn all the cards over. We have had a lot of interest in the assets we want to dispose.”
The company management raises attention upon the fact that the brands that are being sold are not treated like this because they are bad business, but because their individual path has changed a lot since P&G has started collaborating with them and making things possible every day, or how Mr. Moeller said, they “simply do not play to our strengths.”
After the grandiose sale, P&G will be remaining with a core of 70 well-known, generous brands.
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