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“How shall freedom be defended? By arms when it is attacked by arms, by truth when it is attacked by lies, by faith when it is attacked by authoritarian dogma. Always, in the final act, by determination and faith.” ― Archibald MacLeish

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“When I despair, I remember that all through history the way of truth and love have always won. There have been tyrants and murderers, and for a time, they can seem invincible, but in the end, they always fall. Think of it--always.” ― Mahatma Gandhi

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“How shall freedom be defended? By arms when it is attacked by arms, by truth when it is attacked by lies, by faith when it is attacked by authoritarian dogma. Always, in the final act, by determination and faith.”

― Archibald MacLeish

Thursday, January 30, 2014

Procter and Gamble Philippines: Are Co-branding and Embellishments taking the place of Innovations?

P&G used to be THE Marketing Company  
in the world (pre-Apple time). If you were really good in college, they would quickly hire and  train you to be a damn good marketer.
World's Largest Consumer Products Company
Since 1837, P&G has built a rich heritage of touching consumers’ lives with brands that make life a little better every day. From P&G Website
Is Co-Branding taking the place of INNOVATION?
"As rising commodity prices have increased the cost of most basic household products, cash-strapped customers may still be willing to pay more for true innovations but not necessarily for the kind of product extensions and embellishments P&G has turned to." BloombergNews
One popular form of co-branding is same-company co-branding. This is when a company with more than one product promotes their own brands together simultaneously.
FromWikipedia
Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, or to combine the different perceived properties associated with these brands with a single product. From Wikipedia
There are many different sub-sections of co-branding. Companies can work with other companies to combine resources and leverage individual core competencies, or they can use current resources within one company to promote multiple products at once. The forms of co-branding include: ingredient co-branding, same-company co-branding, joint venture co-branding, and multiple sponsor co-branding. No matter which form a company chooses to use, the purpose is to respond to the changing marketplace, build one’s own core competencies, and work to increase product revenues.
One form of co-branding is ingredient co-branding. This involves creating brand equity for materials, components or parts that are contained within other products.
Examples:
• Betty Crocker’s brownie mix includes Hershey’s chocolate syrup
• Pillsbury Brownies with Nestle Chocolate
• Dell Computers with Intel Processors
• Kellogg Pop-tarts with Smucker’s fruit
Another form of co-branding is same-company co-branding. This is when a company with more than one product promotes their own brands together simultaneously.
Examples
• Kraft Lunchables and Oscar Mayer meats
Joint venture co-branding is another form of co-branding defined as two or more companies going for a strategic alliance to present a product to the target audience.
Example:
• British Airways and Citibank formed a partnership offering a credit card where the card owner will automatically become a member of the British Airways Executive club
Finally, there is multiple sponsor co-branding. This form of co-branding involves two or more companies working together to form a strategic alliance in technology, promotions, sales, etc.
Example:
• Citibank/American Airlines/Visa credit card partnership



Ariel and Tide Detergents with Downy Fabric Softener
Logical co-branding
Crest Toothpaste With Scope Mouthwash
Another logical co-branding
Tide with the power of Safeguard 
Is this a logical  co-branding?
Joy dishwashing liquid with the power of Safeguard
Is this a logical  co-branding?
Dawn Dishwashing liquid with Oil of Olay!
or
Joy Dishwashing liquid with Oil of Olay
Is this a logical  co-branding?
"Parang libre ang Downy dahil ang halos P50 na pwedeng matipid sa tubig at pwedeng pambili ng Downy!"
Believe it or not, this is a P&G claim! It is such a silly claim!

At Procter & Gamble, the Innovation Well Runs Dry
From Bloomberg News:
For much of its history, Procter & Gamble (PG) didn’t just launch new products, it created new product categories, from the first mass-produced disposable diapers to Crest teeth-whitening kits. That’s one reason P&G has more than 1,000 Ph.D.’s among the 8,000 employees at its 26 innovation facilities around the world. “P&G is largely a branded science company,” says Larry Huston, former innovation officer at P&G who’s now managing director of 4inno, a consulting firm.
Lately, though, there’s been a dearth of pioneering brands emerging from the world’s largest consumer-products company. Spending on research and development in fiscal 2012 ended June 30 was $2.03 billion, or 2.4 percent of sales, the same as the prior year and down from 3 percent of sales in 2006. P&G’s most recent homegrown blockbusters—Swiffer cleaning devices, Crest Whitestrips, and Febreze odor fresheners—were all launched at least a decade ago. Says Peter Golder, a professor at the Tuck School of Business at Dartmouth College: “P&G is built on creating new categories, and innovation is in its DNA, but they need to rediscover it.”
Regaining its new-product mojo is crucial because P&G’s business strategy has long been to charge premium prices for cutting-edge products. A 150-oz. container of liquid Tide detergent is $18 at Target (TGT), for instance, 20 percent more than the retailer’s house brand. 
As rising commodity prices have increased the cost of most basic household products, cash-strapped customers may still be willing to pay more for true innovations but not necessarily for the kind of product extensions and embellishments P&G has turned to.
Around the world, P&G and Unilever are fierce rivals in many fast-moving consumer product categories. They are always fearful of any hints of collusion or cooperation because of anti-trust implications.
Bizarro Supermarket Promotion in the Philippines 
Global Rivals
Marketing Partners in the Philippines?