For
the past twenty years in Kenya, Procter & Gamble’s (P&G) growth
strategy has been to innovate and provide consumers with new products
that are a class above
their competitors.
However
with increasing competition and changing consumer consumption habits,
P&G is changing its tactics in a bid to significantly improve on its
performance
in the 2014 fiscal year.
The
new strategy will see the company, which produces Pampers diapers,
Always Sanitary pads, and Ariel detergent among others, focus on value
creation, productivity,
operation discipline and strategic investments will be the company’s
focus areas as it builds on its fourth quarter results.
Locally,
P&G will be up scaling its point of market entry activities through
which they first introduce their products to Kenyan consumers. The
company will
also seek to strengthen and accelerate its productivity and costs
savings efforts as a means of value creation to the end consumer.
“Our
new tactics will ensure that we win when the consumer chooses our
product at the shelf – and the second moment of truth – when the
consumer uses the product
at home and decides whether to buy it again. Winning with consumers is
a foundation of value creation,” said Ms. Irene Mwathi, Communications
Manager.
According
to a recent survey by Nielsen data conducted in Kenya, P&G is a
market leader in most of the categories its products play in with its
leadership brands
Pampers and Always. In the diaper category, Pampers holds a 79 per cent
market share ahead of its competitors Kimberly Clarks’ and
InterConsumer brands.t. In the detergent category, Ariel holds a 23.8
per cent market share a few points behind Unilever’s Omo
which has a 30.6 percent share while Always sanitary pads fights off
competition from locally produced pads with a 59 per cent market lead.
The
change in tactics were introduced with the coming of the ‘new’
P&G’s Chairman and CEO AG Lafley who is accredited for doubling
sales and growing P&G’s portfolio
of billion-dollar brands from 10 to 23 with a focus on consumer-driven
innovation and consistent, reliable, sustainable growth during his
tenure from 2000 to 2009.
Ms.
Mwathi adds that the company will try and focus more on low and middle
class Kenyans consumers with intentions of reallocating some of its
savings to make
strategic, focused investments in innovation and go-to-market
capabilities which are two important sources of P&G’s competitive
advantage.
Last
month, P&G announced its fourth quarter results which saw the
company reported fiscal year 2013 diluted net earnings per share from
continuing operations
of $3.86, up 24 percent versus the prior year. Net sales were $84.2
billion, with the Central Eastern Europe Middle East & Africa
contributing 15 per cent of the sales. The main sales came from the
Fabric and Home care with 32 percent followed by Baby and
Family care at 20 per cent of the global sales.
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