P&G Streamlines Operations by Selling Off Brands

Procter & Gamble (P&G), a major player in the consumer goods industry, undertook a strategic initiative to streamline its operations by divesting from a significant portion of its brand portfolio. The company announced plans to sell off approximately 100 brands, focusing instead on 65 core brands that were responsible for generating 95% of its profits. This decision was part of a broader effort to simplify the company's structure and enhance operational efficiency. A.G. Lafley, who served as chairman and CEO during this period, emphasized the need for P&G to become a more manageable and less complex organization. The move aimed to allow the company to concentrate its resources and efforts on its leading brands, thereby improving overall performance and profitability. The impact of this strategic shift was notable, as it allowed P&G to streamline its operations and focus on its most profitable segments. By reducing the number of brands, the company aimed to enhance its marketing effectiveness and operational efficiencies. This decision also reflected a broader trend in the consumer goods sector, where companies are increasingly focusing on core competencies and divesting non-core assets to improve financial performance. The divestiture of brands was expected to free up resources that could be reinvested into innovation and marketing for the remaining brands, ultimately positioning P&G for sustained growth in a competitive market.