Procter & Gamble Saved $370 Million in Agency-Related Costs Last Year

Jan. 26, 2016 11:26 a.m. ET

Procter & Gamble decided to closely select the number of agencies it works with. As a result, Procter & Gamble saved $500 million.

Jon Moller, Chief Financial Officer of Procter & Gamble said that last year; the company reduced the number of agencies it works with by 40%. This helped the company save around $370. This year, Procter & Gamble is expecting to save about $200 million. Jon Moeller also said that by carefully selecting and reducing the number of agencies they work with, they will be able to invest more in advertising.

In its fist December quarter, Procter & Gamble had a 2% increase in organic sales, while the company’s marketing expenditures stayed the same as the year before.

Procter & Gamble is planning on getting rid of 100 brands to just focus on its biggest and most important brands.

I think this article is very interesting because it is very related to marketing. Procter & Gamble is increasing its efficiency by strengthening marketing programs and at the same time reducing marketing costs.

http://www.wsj.com/articles/procter-gamble-saved-370-million-in-agency-related-costs-last-year-1453825581