Image From: http://www.ohl.com/industries/consumer-packaged-goods The process of restructuring continuously flows like water down the waterfall of CPGs (Consumer Packaged Goods), and it washes away some marketing employees at the same time. An example would be Procter and Gamble, where it made the business decision to cut costs. It had a projected $10 billion worth of savings (a billion of that amount would be savings from non-advertising promotional expenses) in a span of half a decade. This move was designed to address the issue of sluggish sales, share losses to competitors, and mediocre earnings.
Other packaged consumer goods firms have followed suit, with the likes of Energizer Holdings, Kimberly-Clark, and Colgate-Palmolive coming up with their announcements regarding plans to take away some of their headcount. This is bad news for a lot of staff, since the corporate layoffs will affect more than a thousand people.
Going back to P & G, it is not enough that they would lay off some workers from the marketing department and other nonmanufacturing sectors. They even announced that they would continue to take away their labor force overhead by 2 or 4% per year for the following three years. Because P & G is being pressured by investors to cut more costs, the competition is also joining in to maintain their marketing expenses and competitive prices.
Now that all of this is happening, the key query is how the marketers will make use of whatever savings they get from reducing their number of employees. Will they invest in innovation and advertising, or will they just step on one another with their never ending price wars?
Based on information provided by P & G, they have utilized their packaged consumer goods and restructuring savings for promotional expenses instead of bringing it to the bottom line. They are still experiencing slow growth, so the company might not be able to keep the price gaps that they had before.
Other packaged consumer goods firms have followed suit, with the likes of Energizer Holdings, Kimberly-Clark, and Colgate-Palmolive coming up with their announcements regarding plans to take away some of their headcount. This is bad news for a lot of staff, since the corporate layoffs will affect more than a thousand people.
Going back to P & G, it is not enough that they would lay off some workers from the marketing department and other nonmanufacturing sectors. They even announced that they would continue to take away their labor force overhead by 2 or 4% per year for the following three years. Because P & G is being pressured by investors to cut more costs, the competition is also joining in to maintain their marketing expenses and competitive prices.
Now that all of this is happening, the key query is how the marketers will make use of whatever savings they get from reducing their number of employees. Will they invest in innovation and advertising, or will they just step on one another with their never ending price wars?
Based on information provided by P & G, they have utilized their packaged consumer goods and restructuring savings for promotional expenses instead of bringing it to the bottom line. They are still experiencing slow growth, so the company might not be able to keep the price gaps that they had before.
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