P&G wants to fight for 10 new markets in Brazil until 2015
Valor Econômico
A more aggressive project of expansion of Procter & Gamble worldwide was presented to a group of foreign analysts nearly 15 days ago - and Brazil is included in the new analysis. In a closed meeting, held in the city of Boca Raton, Florida, USA, the company increased the number of segments in which it wants to operate in the emerging countries until 2015. That number went from 19 to 24 categories, and it should include segments in which are the "global billion brands" of P&G - lines of products that sell more than US$ 1 billion a year worldwide. The company is manufacturer of Pantene, Ariel, Always, and Gillete, in a total of 300 brands.
Of the more than 180 countries where the company operates, she mentioned only 12 countries, including Brazil, in the report. According to the data, the presence of the company in categories in the country would have to go from the current 14 to 24 within five years. That number of 14 segments currently in operation is lesser than the existing in five emerging countries, like China and Russia. But it is greater than in India, Egypt and Indonesia. That jump from 14 to 24 categories in Brazil until 2015 is therefore an average of two new categories of operation a year - in 2010, in less than three months, P&G launched three new brands in the country and entered the area of cosmetics with the Olay brand.
While analyzing the list of products sold by P&G in the world, with billionaire earnings, and that present in the country, it is possible to have an idea of the next steps of the company around here -something the group keeps under total secrecy. P&G has in its portfolio products with strong global presence, such as the softener Bounce, the toilet paper Charmin and the cosmetics brand CoverGirl. Also in that basket of brands with high acceptance abroad is the air freshener Febreze. The product has already started being sold in Brazil in 2010, but at a few retail chains, a kind of pilot project to test the strength of the line in the local market.
There is another segment, products of men care, in which P&G might have high growth potential in the country. The Old Spice brand, with 80 items such as liquid soap and perfume for men, is not for sale in the country, but there is information in the market P&G would already be thinking of bringing the line here in 2011. Besides that sector, P&G would have interest in entering with the CoverGirl brand in the area of cosmetic within three years. P&G does not confirm that. In three of the four segments mentioned above, there is no major competition. Two or three multinationals operate in the area of softeners and toilet papers in Brazil. But it is manufacturers of relevance like Unilever and Kimberly-Clark that react to any movement increasing investments.
P&G does not provide details on its next bets. Gabriela Onofre, Officer of Corporate Affairs of P&G Brasil, comments "the intention is to enter, more and more consistently, with the big brands of P&G in the main markets worldwide", he says. "The company has global brands with huge potential and it sees many opportunities in the Brazilian market in the coming years", she completes. In the meeting with analysts in Boca Raton, a cheerful Bob McDonald, International President of P&G, gave clear signs of confidence to the market on the plans of the group. "We need to touch more and improve the lives of the people. We have the stronger innovation program I recall in 30 years of company".