P&G markets consumer products ( i.e., Bounty paper towels, Dawn dish liquid, Tide laundry detergent, etc.) that possess more value than their cheaper rivals,No matter how much one cuts back, the smart consumers will always buy "quality" necessities. ... Investing in the stocks of high-valued consumer companies is not the "coolest" investment. However, it is quite steady regardless of the seasons.
Because of their historical branding and quality products, the P&G value will "rarely ever go down.
Cardinal Rule: Quality is value
#
Thursday, February 19, 2009 (AP)
P&G Chief Executive: We'll win on value
By DAN SEWELL, AP Business Writer
(02-19) 13:33 PST CINCINNATI (AP) --
Procter & Gamble Co.'s chief executive said Thursday the consumer products maker's emphasis on value will carry it through the recession.
P&G executives told analysts that they don't expect any major price rollbacks in the near future. However, they are telling consumers, in some 100 current promotions, that their products offer more for the dollar than competitors'.
"Right now, it's a consumer value play," said A.G. Lafley, P&G's chairman and CEO. "A big part of consumer value is trusted brands and products that deliver better value. ... P&G is winning the consumer value equation every day."
Products such as Tide laundry detergent, Dawn dish liquid and Bounty paper towels get more done than cheaper rivals, he said. Lafley also said P&G is increasing productivity and becoming more efficient, seeking out cost savings everywhere from energy to packaging.
"We are leaving no stone unturned," Lafley told analysts at the Consumer Analyst Group of New York conference in Boca Raton, Fla. "P&G is becoming more productive and we're making how we work much simpler."
Consumer goods and food makers are battling household belt-tightening and private-label competition. P&G recently lowered its earnings outlook for the year and forecast lower total sales for this quarter and possibly for its full year.
Companies are dropping some products. P&G last year sold its Folgers coffee business and Noxzema skin care brand and is moving away from pharmaceuticals.
"The garden's going to get weeded," Lafley said. "We're weeding our own garden, but our garden's pretty strong ... I think we're going to come through this in pretty good shape."
P&G stock rose 18 cents to end at $51.13. It had fallen to a 52-week low of $49.28 earlier this week and has traded as high as $73.57 in the past year.
----------------------------------------------------------------------
Copyright 2009 AP
----------------------------------------------------------------------
http://www.sfgate.com/cgi-bin/article.cgi?file=/n/a/2009/02/19/financial/f065858S09.DTL
---------------------------------------------------------------------
No comments:
Post a Comment