P&G revises advertising spending policy

Procter & Gamble (P&G), the producer of Ariel detergents, Pantene shampoos and Pampers nappies, and also the biggest advertising spender on the Romanian market, has announced a rethink of its marketing strategy in terms redistributing its TV budget from traditional advertising to alternative ways of using this communication channel. “The cost of traditional TV advertising have increased a great deal, which could lead to a more intensive search for communication alternatives, such as product placement in entertainment shows. This is even more likely to happen, since prices on the consumer goods market are tending to go down, while the increase in petroleum prices is pushing production costs up,” said Jose Medran (photo), the new Procter & Gamble Romania chief executive. Medran took over at P&G in April, replacing Matthew Price.P&G is known for being the company with the most powerful and innovative marketing in the world, as well as being the biggest advertising spender. P&G expects the fast moving consumer goods market in Romania to grow, with consumption per capita for most categories still half the level seen in Hungary and even lower than in Bulgaria. “We are investing to educate the market because consumption per capita in most categories is very low,” the P&G official said. ZF