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Post of the Day
December 16, 1998

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Procter & Gamble Folder

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Subject: Re: my "down 3+" post
Author: babyfrog

Procter & Gamble is one of, if not the, largest marketing companies in the world. However, at least in the United States, you almost -never- see "Procter & Gamble" in their advertising, except maybe in a little copyright at the bottom of a print ad. The company clearly focuses on -brand- loyalty and -brand- sales, not corporate sales. You see commercials for "the Intel Pentium II," "IBM's E-Commerce Solutions," "Coca Cola Classic," "Papa John's Perfect Pizza," "Gotta Be, Gotta Be, Domino's," etc. All those advertisements have the company's name embedded in them. However, in the U.S., commercials for Tide, Pringles, Ivory, Joy, Bounty, Cover Girl, Tampax, Charmin, or any other P&G product rarely, if ever, mention Procter & Gamble by name. The only place I have seen a conspicuous effort by the company to link its corporate name to its products is on the company's web site at http://www.pg.com/ . There, listings of the company's products can be found, as well as general corporate information.

"The brand, rather than corporate, focus of the company's advertising and news releases likely contributes to the lack of posts in this group."

The brand, rather than corporate, focus of the company's advertising and news releases likely contributes to the lack of posts in this group. It takes -no- effort to link Intel to "Look for the 'Intel Inside' sticker," but it takes reading some fine print on the back of a box of Tide to find out that "If it's got to be clean, it's got to be Tide" comes from P&G. That extra step probably causes a whole bunch of people to not notice the company behind the brands. I know I've used P&G products my entire life, but before I started following the company, I had -no- idea that they made all that stuff.

Even the Olestra roll out was attributed, in advertisements, to "The folks at Crisco," not to "The R&D lab at Procter & Gamble."

That, plus the fact that 20+% of the company is owned by employees and retirees means those owners are possibly fiercely loyal to the company, and are unlikely (or unable) to make major changes to their positions on a short-term dip or rise, so discussions are limited too by the owners that aren't going to do anything anyway.

"Or else, corporate news broadcasts focus on the amazingly low gas prices, the mega-mergers among oil companys, etc. Nobody is talking about soap in the news."

Also, the big thing in the news these days are the high-tech companies. The Microsoft Anti-Trust case, Netscape & AOL merging, the growth of the Web and E-Commerce... Or else, corporate news broadcasts focus on the amazingly low gas prices, the mega-mergers among oil companys, etc. Nobody is talking about soap in the news. I like the company and plan to hold it for the long haul. It is solid, stable, diversified, and growing, and many of its products still get bought regardless of economic conditions. It just isn't the type of company that makes for flashy news segments, and therefore it doesn't typically generate heated debates or discussions.


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