To counter its slow U.S. revenue growth, Procter & Gamble
The Latino way
According to the U.S. Census Bureau, more than half of the U.S. population gain in the decade ending in 2010 consists of the Latino demographic. Their families tend to be larger and younger than average, and that's good news for the maker of Pampers, Charmin, and Bounty. According to Hispanic Business magazine, Hispanic shoppers had nearly $1 trillion in spending power as of 2010, and that figure is expected to rise to $1.3 trillion by 2015.
This trend is too big to have gone unnoticed, though, and when it comes to personal products, P&G isn't the first one to the party. Colgate-Palmolive
P&G is looking to put new fragrances in its air fresheners, fabric softeners, and dish soap to make them more appealing to this demographic, with scents sporting names such as "Brazilian Carnaval" and "Apple Mango Tango." It's launching a new website aimed at Hispanics, and it's also hired Latin superstars Jennifer Lopez and Eva Mendes as spokeswomen. Lopez will be the new face of Venus razors, while Mendes will be the representative for Pantene shampoo. Having these two highly recognizable faces at the helm should boost sales of their respective products.
The Foolish bottom line
P&G needs to correct its sluggish U.S. sales, and the focus on the Latino demographic should help. Just how well it will do, of course, remains to be seen. To stay up to date, add P&G to your Watchlist.
Fool contributor Shubh Datta owns no shares in the companies mentioned above. The Motley Fool owns shares of Clorox. Motley Fool newsletter services have recommended buying shares of McCormick, Clorox, and Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.