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Lack Of The Human Touch Often Affects U.S. Internet Purchasing

September 1, 2009: 04:05 AM EST
Americans are shopping and buying on the Internet, but would probably buy even more if live human help was more available. The problem seems especially critical in more complicated online purchases, such as insurance, automobiles, and real estate, and less so in simpler online purchases of books and music. Nevertheless, nearly four out of five Internet buyers in the last six months, no matter what they bought, said they would like to have had some help from a live human being. Half of shoppers who said they could not obtain human assistance online decided not to buy.
"Online Shoppers Want Human Helping Hand", eMarketer, September 01, 2009, © eMarketer Inc
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Burt’s Bees: Using New Social Media To Advance A “Caring” Product Line

September 1, 2009: 01:31 AM EST
Natural personal care products company Burt’s Bees has never been aggressive in its advertising, preferring not to “push” products with TV or newspaper ads. Instead, it educates like-valued consumers at the point of sale and on the Web site, a form of “pull” marketing that reflects a “culture of caring,” according to the author of this case study. So Twitter and Facebook, the new social media – and especially their “openness, dialogue, creativity, the sense of caring” – fit perfectly. And if company growth – 18% last year – is any measure, it’s working very well indeed.
Dori Molitor, "Burt’s Buzz", Hub Magazine, September 01, 2009, © Marketing Hub
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Unilever Promotes Personal Hygiene – And Soap – In Bangladesh

September 1, 2009: 02:05 AM EST
The use of toothpaste and hand soap in a personal hygiene program is critical to oral health and the prevention of communicable intestinal and respiratory disorders. That is the message being conveyed to the schoolchildren of Bangladesh by representatives of Unilever’s Lifebuoy hand soap and Pepsodent toothpaste. According to Unilever, in a land where mothers are aware that preventive health care is at least as important as medical infrastructure, the company’s reps have visited 5,000 schools and more than 9,000 rural villages to drive the soap and toothpaste message home.
"Unilever's awareness on hygiene ", The Financial Express , September 01, 2009, © The Financial Express
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Using Perceptual Maps To Strengthen A Product’s Market Positioning

September 1, 2009: 02:12 AM EST
A consumer’s perception of how a company’s brand stands in relation to others in a market category is critically important to planning brand strategy. To help them analyze brand positioning, marketers often use “perceptual maps” that plot the perceived importance and strength of a brand’s benefits – e.g., attractive price, high comfort, prestige, etc. – relative to the competition’s. Perceptual maps help identify a brand’s competitive advantages and market opportunities. And they provide some guidance on how to fix positioning problems to better compete in the marketplace.
"Brand Positioning and Perceptual Maps", Branding Strategy Insider, September 01, 2009, © The Blake Project
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For Company Innovation To Succeed, Build It Into The Structure

September 1, 2009: 04:15 AM EST
Successful innovation is difficult, even futile, for some large companies because they try to graft new processes onto existing, albeit thriving, methodologies, according to innovation expert Jeffrey Phillips. In effect, innovative practices conflict with the routine ways of getting the job done. But there are firms that innovate well, including personal-care giant Procter & Gamble, which now splits R&D activity between internal and external idea generators. Phillips argues that innovation shouldn’t be layered over the ongoing operations of a company, but should be incorporated into the structure at every level.
Jeffrey Phillips, "Design Driven Innovation ", Business Strategy Innovation, September 01, 2009, © Business Strategy
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Unilever Links Sustainability Initiative With Coupon Marketing

September 1, 2009: 02:04 AM EST
Front-of-store recycling machines in grocery stores on the U.S. east and west coasts are being tested as a coupon distribution vehicle for soap packs in a program that uniquely couples a green initiative with a promotional campaign. When shoppers deposit recyclable beverage containers in a Tomra of North America “reverse vending” machine as they enter the store, coupons for Unilever’s Lever 2000 soap packs are printed out. The idea is to award the coupons just as consumers begin their shopping experience. “We expect to see strong conversion from this program," said a Unilever marketing exec.
"Unilever, Tomra Launch Front-of-Store Promotion That Makes Use of Recycling Machines as Advertising and Couponing Vehicles", PR Web, September 01, 2009, © Vocus PRW Holdings, LLC.
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Thai Firm’s Shampoo Line Targets P&G, Unilever In East Asia

September 1, 2009: 01:58 AM EST
The Thailand subsidiary of Japan’s Kao Corporation is falling in line strategically with its parent company by unveiling a new line of shampoos to the East Asian marketplace. Kao Commercial is focusing on capturing market share from Procter & Gamble and Unilever with its hair-care and skin-care products, which apparently have already done well in Japan, Taiwan, and Hong Kong, and are expected to succeed also in Thailand. Kao will spend about 150 million baht (US$4.5 million) to promote its new premium hair-care line for damaged hair.
Pitsinee Jitpleecheep, "Split ends offer future gains", Bangkok Post, September 01, 2009, © The Post Publishing Public Company Limited
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P&G’s New CEO Is Aggressive, But Is He Too Optimistic?

September 1, 2009: 04:03 AM EST
The new captain at the helm of Procter & Gamble has an ambitious 10-year strategic plan for the huge personal-care company, despite a weakened global economy and poor corporate financial performance. Newly installed CEO Bob McDonald, a 30-year P&G veteran, promises to double annual sales by attracting a billion new customers in emerging markets and by adjusting pricing schemes to meet pressure from private-label products. Will the approach work? Some observers are skeptical. "They are underestimating the difficulties of getting into the emerging markets at that scale," says one analyst.
"P&G takes it higher ", ICN-International Cosmetic News, September 01, 2009, © Reed Business Information
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Sports Detergent Maker Overcomes Packaging Obstacles To Come Up A Winner

September 1, 2009: 02:27 AM EST
A detergent designed to clean sweat-embedded sports clothing needed to overcome a major promotional hurdle: getting the product into the hands – and washing machines – of top athletes. The makers wanted a single-use package that conveyed the look and feel of the real 21-oz. bottle. With the help of a specialty manufacturer, Win Products developed a thermoformed blister pack just in time for the 2008 Beijing Olympics. The award-winning sample packs, distributed at other sporting events since then, have worked well as promotional items, converting product samplers to buyers of the real thing, the company says.
Linda Casey, "Sports detergent in single-use blister packs for Olympics", Packaging Digest, September 01, 2009, © Reed Business Information
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Philips Targets U.S. Kids With Sonic Toothbrush

August 27, 2009: 04:02 AM EST
An effective toothbrush that also gets American kids involved in their tooth brushing experience is the strategy behind the recently unveiled Philips Sonicare For Kids toothbrush. According to Philips, U.S. kids aged 4–10 years miss a lot of school because of dental problems. To help solve that, Philips designed a sonic toothbrush that features two power modes, an ergonomic handle, musical tones that signal when to move to another area of the mouth, and front panels that kids can change themselves. And, at $69.99 SRP, it does a good job of preventing plaque formation, according to the company.
"Keep Oral Health in Check This School Year With the New Philips Sonicare for Kids Power Toothbrush", PR Newswire, August 27, 2009, © PR Newswire
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P&G Battles Serious Dental Health Problems In Malaysia

August 24, 2009: 02:10 AM EST
According to a recent survey, tooth decay and oral diseases afflict ninety percent of Malaysians. That makes the country fertile marketing ground for dental health product companies. At the root of the problem, of course, is an apparent lack of awareness by Malaysians of the benefits of ongoing oral hygiene practices. With that in mind, P&G Malaysia’s Oral-B toothbrush unit has embarked on a road show campaign designed to educate Malaysians about the benefits of tooth brushing and other oral care techniques. The campaign includes dental check-ups and photo exhibitions showing harmful bacteria and their effects.
Anu Venugopal, "Caring for the teeth", Malay Mail, August 24, 2009, © Malay Mail Sdn. Bhd.
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Cavity Protection May Be Easier With Antimicrobial Mouthwash

August 18, 2009: 03:46 PM EST
Tooth-binding particles called micelles formulated into mouth rinses could protect teeth from cavities because they stick to tooth surfaces and gradually release encapsulated antimicrobials, according to researchers in Florida writing in Antimicrobial Agents and Chemotherapy. A mouthwash could simplify application of micelles and make it easy for people to keep their teeth clean and healthy. In the study, tooth-binding micelles were encapsulated with an antimicrobial effective against the cavity-causing bacterium Streptococcus mutans UA159. The micelles were able to inhibit S. mutans better than untreated micel. “Simple application, cultural acceptance, and improved patient compliance” would be the main benefits, researchers said.
F. Chen, X.M. Liu, et al., "Tooth-binding micelles for dental carries prevention", Antimicrobial Agents and Chemotherapy, August 18, 2009, © American Society for Microbiology
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Move Over Abrasive Toothpastes, Here Come Soothing, Effective, Aloe Vera Tooth Gels

July 17, 2009: 04:51 AM EST
Will traditional toothpastes someday have to cede shelf space to abrasive-free tooth gels whose main ingredient is aloe vera? That depends on whether gel marketers can convince consumers of the gel’s benefits. That job was made a little easier recently when a dental medicine journal published a study showing that aloe vera, used since ancient times for its soothing and healing abilities, does indeed make a very good tooth gel. In testing against two commercial pastes, an aloe vera gel was shown at least as effective in curbing cavity-causing micro-organisms, without irritating teeth or gums.
"Healing power of aloe vera proves beneficial for teeth and gums, too", Science Blog, July 17, 2009, © Science Blog
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French Food Ingredient Maker Describes Trial Results For Prebiotic Fiber

July 16, 2009: 11:38 AM EST
Representatives of Roquette Freres (France) told recent probiotics and dietary fiber gatherings in Europe that daily doses of its soluble prebiotic fiber Nutriose decreased body weight, body mass index, and body fat percentage, and provided other benefits, in a clinical trial involving overweight adult males. The company says its product, with 85 percent fiber content, shows promise in battling the global obesity epidemic.
"Further Scientific Support Emerging for Nutriose Soluble Fiber", Food Ingredients First, July 16, 2009, © CNS Media BV
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American Kitchen Hygiene Faulted in International Survey

July 16, 2009: 01:42 AM EST
America's personal hygiene habits are getting worse, says an international study by the Hygiene Council sponsored by Lysol. The findings show that 60 percent of kitchen faucets are unsatisfactory, despite homeowners professing that they clean them at least once a week. In 2008 only a quarter of faucets were found to be unsanitary. Of the eight countries studied, the UK, Germany, South Africa and Saudi Arabia were all cleaner in the kitchen , although the US did better than the others in other areas of the home. 70 percent of American sponges were found to harbor e.coli bacteria.
"American Hygiene Habits Getting Worse: International Study Reveals More Illness-Causing Germs Than Ever in American Kitchens_07-16-09", Forbes.com, July 16, 2009, via PR Newswire (U.S.), © PR Newswire
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Hungary Cracks Down on Misleading Advertising

July 15, 2009: 01:13 AM EST
Avon in Hungary has been fined $200,000 for misleading advertising. The country's Competition Office said there were a number of false or misleading claims in catalogues between December 2007 and September 2008, such as "body tightening spray", which could not be proved. L'Oreal was fined $700,000 for ads "liable to mislead consumers." In 2009, total fines for misleading ads in Hungary have reached $2.5 million, while the total for 2008 was $4 million.
"Avon fined for misleading Hungarian consumers on cosmetic products", Earth Times, July 15, 2009, © Deutsche Presse-Agentur
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Unilever France Trims 153 More HQ Jobs in Paris

July 7, 2009: 02:37 AM EST
Unilever France plans to cut a further 153 jobs at its Paris headquarters, bringing the total number of axed jobs to 700 in the past five years, according to a union official. The union puts the actual number of new redundancies at 136, after taking account of new posts and vacant non-fixed term contracts. Unilever France president Claudio Colzani said “It is imperative that we streamline our organisation and reduce running costs in order to give maximum support to our brands” as the company strives to strip costs. The cuts will be across the board.
"Unilever to axe Paris HQ jobs_07-08-09", Just-Food, July 07, 2009, © just-food.com
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“Lipstick Index” Rises as Economy Falters

July 6, 2009: 03:03 AM EST
The Australian cosmetics market is repeating the pattern of previous economic downturns: Sales of lipstick are up as consumers turn to smaller, more affordable luxuries. The overall cosmetics market, however, is experiencing tougher times, and many companies, including L’Oreal, Chanel, Christian Dior and Napoleon Perdis, are responding by introducing new lines of smaller, cheaper products. Men are not immune from the desire to pamper themselves a little, prompting Diesel, L'Oreal, Clinique, Clarins and Nivea to release male-specific cleansers, moisturisers and post-shave products.
Eli Greenblat, "In a pouting economy, lipstick booms_07-06-09", Business Day, July 06, 2009, © Fairfax Digital
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Kilit Tasi's New Toothbrush Promotes Hygiene, Brushing Comfort

July 1, 2009: 06:34 AM EST
Turkish product design firm Kilit Tasi has unveiled a new toothbrush whose unique construction offers several advantages. The company says the patented “Banat Acrobat” promotes better hygiene because it rests on the toothbrush holder rather than in a cup with other brushes. And its bendable head keeps bristle-to-gum pressure to a minimum.
"Banat Acrobat: The New Patented Toothbrush Designed by Kilit Tasi Design_07-03-09", Dexigner, July 01, 2009, © Dexigner Network
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Big Companies Shift Focus to Future as Recession Continues

June 29, 2009: 02:03 AM EST
Companies are beginning to come out of their bunkers and think longer term to take advantage of the opportunities offered by the recession. Walmart US chief marketing officer Stephen Quinn said that the recession was causing the company to “think about things like loyalty and lifetime value of the customer and how do we use this opportunity to keep these folks with us for the long haul." All the usual markers of a rising economy are down, and big-name companies such as Unilever, L'Oreal, Henkel, Clorox and Procter & Gamble have taken numerous measures to protect their positions, such as stopping the release of earnings guidances and dropping monthly sales reporting in favor of longer terms. But they are also now looking ahead. P&G says 2010 could be its biggest year in a decade for innovation. Unilever is boosting support for some of its products. Wal-Mart is pinning faith on its analytics to back an increase in US ad spending.
Jack Neff, "Unilever, Walmart, P&G Buck the Short-Term Trend_06-29-09", Advertising Age, June 29, 2009, © Crain Communications
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GSK to Market Anti-Acid Mouthwash in UK

June 28, 2009: 01:36 AM EST
GSK plans to launch an anti-acid mouthwash in the UK in September to complement its recent boost for its Cordosyl brand, which targets healthy gums. The new Sensodyne Pronamel product counteracts acid erosion on tooth enamel. GSK says this will become an increasing problem. The national television campaign will be handled by Grey, after GSK shook up its advertising and marketing arrangements, dumping Arnold and WCRS. TBWA now looks after weight loss brand Alli and nicotine replacement products Nicorette, NicoDerm, CQ and Commit.
Mary-Louise Clews, "GSK launches anti-acid mouthwash_06-29-09", Marketingweek.co.uk, June 28, 2009, © Centaur
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Recession-Caused Change In Consumer Attitude Spells Loss For Companies

June 26, 2009: 01:47 AM EST
As the recession drags on, consumers have become more conscientious about their purchases, carefully considering how much they are paying for goods and holding off buying new supplies until their pantry is empty. They are now more receptive to bargains, coupons, and free samples, which translate to savings, and increasingly patronize private labels over more expensive brand names. This has adversely affected sales performance of many companies, forcing them to cut jobs and come up with low-priced goods. With the consumer attitude change, companies are trying to create products that will entice consumers back to spending. William McComb, chief executive officer of Liz Claiborne Inc., calls the phenomenon the “savvy shopper syndrome”.
Paul Waldie, "The pantry recession", The Globe and Mail, June 26, 2009, © CTVglobemedia Publishing Inc
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Less is More, as Retailers Cut Back on Variety

June 26, 2009: 02:40 AM EST
Retailers are cutting back on variety, particularly on the number of different brands of the same item. Walgreen Co, for example, is cutting its range of superglues from 25 to 11,and Wal-Mart has slashed its range of tape measures from 24 to 4. Experts say that, over the next year or so, retailers will cut their ranges by at least 15 percent. This is expected to pose challenges for manufacturers used to constantly making slight changes to their products to keep them in the public eye. Retailers are trying to make shopping simpler for increasingly budget-conscious customers sticking to familiar products. Making more room for house brands is also on their agenda.
ILAN BRAT, ELLEN BYRON and ANN ZIMMERMAN , "Retailers Cut Back on Variety, Once the Spice of Marketing_06-26-09 ", Wall Street Journal, June 26, 2009, © Dow Jones & Company, Inc
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Marketers Need to Watch Consumer Strategies

June 25, 2009: 07:12 AM EST
Marketers need to tap into strategies being adopted by consumers if they are to keep their market share, according to UK Media agency Arena BLM. Its second “Crunchonomics” report, released in April, shows that people are beginning to blame the government for the way it is handling the crisis, and renewing trust in institutions, particularly banks. Despite this, 39 percent of the people surveyed said the economy would get worse. Consumer strategies identified in the report include reducing purchases of non-food items, suggesting a reduction in impulse buying. Food sales were up. More than 50 percent are considering own-label food and grocery products, brand loyalty is being questioned, and price is becoming more important.
Joe Fernandez , "Consumers are slowly learning how to cope_06-25-09", Marketingweek.co.uk, June 25, 2009, © Centaur
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Crest Adds Enamel Protection to Arabian Toothpaste Range

June 24, 2009: 05:02 AM EST
Crest has launched its Complete 7 Expert Enamel Protection toothpaste across the Arabian Peninsula. The paste contains fluoride to protect against demineralization of tooth enamel, silicas to aid cleaning and remove enamel stains, and pyrophosphate to prevent discoloration by tartar and stain formation. Demineralization can be caused by excessive brushing, sugary foods and acid erosion, and result in discoloration and sensitivity. Also available in the Complete 7 Expert range are Expert Gums Protection and Expert Sensitive.
"Crest launches new Complete 7 Expert toothpaste_06-24-09", AME Info, June 24, 2009, © AME Info FZ LLC / Emap Limited.
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Online Marketing Expanding in China to Counter Recession

June 22, 2009: 03:23 AM EST

Online advertising is taking off in China as marketers look for ways to boost the profile of brands and products in a tight economy. China has more than 300 million internet users, 100 million of them online gamers. Online advertising revenue reached $2.5 billion in the past year, according to an iResearch Inc report in February. Companies such as Coca-Cola, Unilever, Intel and Nike are increasingly associating their products with online games, and taking advantage of new websites that encourage interaction between consumers and producers.

Zhu Shenshen and Ding Yining, "New online tactics target consumers", Shanghai Daily, June 22, 2009, © Shanghai Daily Publishing House
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Brands Lose “Loyalists” as Consumers Seek to Cut Costs

June 22, 2009: 02:34 AM EST
Most brands lost more “loyalists” than they gained last year, because of the recession, says a study from Catalina Marketing and the CMO Council. More than half of consumers switched brands from 2007 to 2008, the study shows. Several factors seemed to influence people to stay loyal. Brands with strong advertising and marketing support; brands that contribute to home-prepared meals; brands that dominate their categories, and superpremium brands held on to more customers than others. The cost of defections can be high: Coke Classic revenue dropped 6 percent because of defections, while P&G's Cheer detergent dropped 19 percent. The study did not show if people were switching to rival brands or to private labels.
Jack Neff , "Package-Goods Brands Lose Loyalists in Recession", AdAge.com, June 22, 2009, © Crain Communications
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New Treatment for Grey Hair to Restore Original Color

June 22, 2009: 02:28 AM EST
Scientists say they have found a way to get rid of grey hairs and restore original hair color. The researchers at L'Oreal say the grey comes through when melanocytes die or no longer work properly, and that the cells lack the enzyme TRP-2. The scientists hope to re-create the enzyme's action and say the treatment could be available within two years as a shampoo or conditioner. Reaction from the market has been one of universal approval.
Dana Gloger, "SHAMPOO TO WASH THE GREY OUT OF YOUR HAIR", Daily Express, June 22, 2009, © Northern and Shell Media Publications
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Discounters Feel Effects as Retail Sales Slow

June 21, 2009: 02:56 AM EST
Low prices and convenience are drawing people to discount retailers as the recession continues to bite. Despite this, the discounters are also feeling the effects of the downturn. Nationally, retail sales dropped in nine of the past 11 months, says the US Department of Commerce. In May, department store sales were 4.6 percent less than the previous year. Despite the trend toward discounters, Wal-Mart is slowing new store openings and focusing on remodeling existing stores, and has shelved plans for new stores in Florida. Sears Holdings plans to close another Kmart outlet in Florida in August. On the other hand, Dollar General is planning to open five new stores in the region, and Aldi is planning 10 more.
BOB KOSLOW , "Recession nails retail", News-Journal Corporation , June 21, 2009, © News-Journal Corporation
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P&G Shifts Focus to Cost-Conscious Buyers, But Is it Too Late?

June 10, 2009: 04:28 AM EST
Procter & Gamble has taken a step back from its strategy of focusing on charging more for higher-quality products as it continues to perform poorly in comparison to key rivals Colgate-Palmolive and Clorox. CEO A.G. Lafley, tipped to be replaced in the near future, did a U-turn May 28 by announcing an intention to focus more on the “cost-conscious” consumer. Lafley expects this to be a lasting trend in the market, but observers are worried that it may be too little, too late for the company that practically invented consumer goods marketing.
John Jannarone , "Procter's Gamble: Down-Market Move", Wall Street Journal, June 10, 2009, © Dow Jones & Company, Inc
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P&G Hands Reins to McDonald Amid Concerns over Recession

June 10, 2009: 04:10 AM EST
Procter & Gamble innovation guru and chief executive A.G. Lafley is tipped to be replaced on July 1 by another company veteran he has been mentoring, current chief operating officer Robert McDonald. Lafley has been criticized in some quarters for the way he has handled the recession, but other insiders say he has been wanting to move on for the past two years or so, and the transition was planned. Lafley made his name by turning the ailing company around, based on premium products and acquisitions.
Ellen Byron , "P&G Chooses a New CEO as It Adapts to Era of Thrift_06-10-09", Wall Street Journal, June 10, 2009, © Dow Jones & Company, Inc.
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Lafley Takes Novel Approach to Beating the Recession

June 8, 2009: 02:33 AM EST
The recession is putting pressure on innovation guru A.G. Lafley to practice what he preaches in the company he runs, Procter & Gamble. P&G is losing ground to store brands, and commentators are wondering if it can claw back the customers it is losing. Lafley’s 1st quarter response was to raise prices, drawing support from some and skepticism from others. He also raised eyebrows by raising dividends. Figures suggest P&G’s spend on research and development is dropping, while advertising is holding its own. An unruffled P&G spokeswoman said that the dollars weren’t as important as the fact that a lot of innovation was still reaching the consumer. Sales of premium-priced products appear to be strong, and P&G says it has “a viable stable of cheaper brands”.
Christopher Steiner, "The Tide Changes", Forbes Asia, June 08, 2009, © Forbes.com LLC
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GSK Pins Hopes on Consumer Healthcare Expansion

June 6, 2009: 05:43 AM EST
GlaxoSmithKline’s new CEO, Andrew Witty, is promoting the company’s consumer healthcare business as its mainstream pharmaceuticals face increasing competition from generics. The healthcare unit had sales of $6.4 billion last year, producing six of GSK’s 25 top-performing brands. Sales rose 3 percent in 2008, boosted by Aquafresh ($725 million), Lucozade ($613m) and Sensodyne ($582m). Another big seller, Ribena, continued to do well in the UK, but not so well overseas. Division head John Clarke is now eyeing overseas markets, and looking to develop partnerships with established players, including Coca-Cola and Pepsi. Science-based product innovation and acquisitions are also part of the development plans.
Graham Ruddick , "GSK Helping Aquafresh to earn its stripes_06-08-09", The Daily Telegraph, June 06, 2009, © Telegraph Media Group Limited
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Organic Producers Seek New Ways to Differentiate Products

June 3, 2009: 10:08 AM EST
Sales of organic products in the UK appear to be slowing as the recession takes hold. The Soil Association Organic Market Report says that sales of organic products grew 1.7 percent by value in 2008, mostly in the first six to nine months of the year, after “spectacular” growth in recent years. “Organic” has become a generic term, shared by niche and private label products and everything in between, and brands now have to find new ways to differentiate themselves. Claims such as “responsible sourcing” and “free range” are also competing for consumers’ attention. Focusing on a product’s natural and wholesome qualities is a good strategy, and this can be reflected in packaging to attract buyers.
Simeon Goldstein, "Organics: Tempting shoppers back to nature", Packaging News, June 03, 2009, © Haymarket Media Group Publication
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Recession Frugality May Become Ingrained, Pundits Say

June 1, 2009: 09:19 AM EST
Frugality may be here to stay, according to a number of commentators. The view is backed by research: between one third and one half of consumers say they will continue their money-saving strategies even after the recession ends, according to retail consulting firm Retail Forward. Consumers were beginning to place more emphasis on value and relationships before the recession hit, and this will continue, as will the desire to “do good” with purchases, for example by buying “environmentally friendly” products. Heavy discounts are here to stay, say some retailers, including Home Depot. Some voices, however, say that people adapt quickly, and will return to pre-recession habits as the economy improves.
Nat Ives, "Marketers Fear Frugality May Just Be Here to Stay_06-01-09", AdAge.com, June 01, 2009, © Crain Communications
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Boom in Naturals Offers Scope for Multinationals

June 1, 2009: 06:24 AM EST
Marketers across the spectrum are pulling out all the stops to ensure their products are “green”, to capitalize on surging consumer interest in natural products. Major companies such as Unilever and Colgate are well positioned to take advantage of growth in the sector, riding on the backs of niche players who developed the market, says Carrie Mellage, director of Kline & Company’s Consumer Products practice. But it might not be a smooth path. The natural ingredients market is characterised by concerns about efficacy, traceability, authentication of ingredients, regulatory issues and ambiguity in the definition of “natural”, according to Dr. Lakshmi Prakash, Ph.D., vice president of innovation and business development, Sabinsa. Joshua Onysko, founder and chief executive officer of Pangea Organics, says it is “rare to find an organic or natural product that actually stands up to its claims”. Global standards have yet to be agreed, meaning consumers can be confused because countries, and even companies, have differing definitions of “organic” and “natural”.
Melissa Meisel, "Green Is the New Black", Happi.com, June 01, 2009, © Rodman Publishing / HAPPI
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Organic “Bioneers” Respond to Market Downturn

May 29, 2009: 12:50 PM EST
The global recession is hitting organic products as consumers cope with reduced spending power and the level of industry investment declines. This year could be the first in more than a decade where growth is in single-digits only. The UK market appears to be one of the hardest hit, recording 2 percent growth in 2008. Consumers are also demanding more from organic products, including ethical sourcing, traceability, the carbon footprint, sustainability and corporate social responsibility. “Bioneers” (organic food pioneers) are responding in numerous ways in a trend now tagged as “Organic Plus”. Strategies being employed include ethical and fairtrade sourcing, investing in the poorest (and often war-ravaged) parts of the world, offsetting carbon emissions, ensuring that products can be traced to the grower, more emphasis on sustainability, and more wide-ranging certification.
"Global Organic Market: Time for Organic Plus Strategies...", Organic Monitor, May 29, 2009, © Organic Monitor
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Store Brands Surge as Buyers Seek Cheaper Deals

May 26, 2009: 11:16 AM EST
Cash-conscious consumers are seeking out store brands as the economy stays in the doldrums. The Nielsen Co. said that store brand sales rose 8.5 percent year-on-year to reach $54.7 billion. The Food Marketing Institute said that store brands now make up 9.7 percent of items carried in a typical store, compared with 8.1 percent and 7.5 percent in the two previous years. Store brands are usually cheaper than name-brand products, partly because they don’t carry the same national distribution and marketing costs. Name brands have also been reluctant to drop prices despite falling commodity and transport costs. Some industry leaders are predicting that premium store brands will do better in future as baby boomers trade down but still seek higher quality.
Sandra Pedicini , "In tough economy, store brands are in demand", Orlando Sentinel , May 26, 2009, © Orlando Sentinel
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Herbal Shampoo Maker Claims to Control Hair Loss

May 26, 2009: 06:19 AM EST
Zulvera claims in a media release that its new shampoo, Zulvera, can prevent hair loss, enable hair growth and strengthen hair follicles. Based on herbs and herbal extracts, its main ingredient is Saw Palmetto, which blocks the action of Dihydrotestosterone (DHT), a natural metabolite that is thought to be responsible for 95 percent of hair loss in both men and women. The product was treated on animals and people before being released. However, many consumers have reported the product, sourced from India, to be a scam.
Victory Elissabeth , "Zulvera Shampoo has been created from herbs to fight hair loss_05-27-09", Pitch Engine, May 26, 2009, © PR Friend Press Releases
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North Korean Toothpaste also Treats Bites, Eczema and Burns

May 25, 2009: 07:45 AM EST
A natural toothpaste that helps to prevent paradentitis, periodontitis and caries, and can be used on insect bites, eczema and burns, has been developed in North Korea (DPRK). The paste is made from microelements that treat stomatitis, and includes 10 pharmaceuticals made by traditional methods. According to an article published in North Korea, the toothpaste “increases salivation so as to immediately disintegrate and absorb carbohydrate, removes mouth smell and stimulates the digestion, thus keeping the mouth clean and making people feel fresh”.
"Natural Toothpaste with Special Remedial Result Developed in North Korea (DPRK) _05-26-09", Mathaba, May 25, 2009
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Go Back to Basics in Retailing, says Asda Chief

May 22, 2009: 09:31 AM EST
The era of abundance is over, and customers are now shaping businesses rather than businesses shaping customers, says Asda chief executive Andy Bond. It is time to get back to basics and offer the best possible value at a given price, he said. This means minimizing waste and excess at all levels of the retail operation. Asda had noticed three key trends emerging from the downturn. First, consumers were more aware of “need versus want”. Second, they now have less trust in major institutions than previously. Third, there has been a “rebirth of families and local communities”. "We’re starting to see the birth of consumer power – where big institutions will need to form a new bond with ‘consumer communities’ by exercising empowerment,” he said.
Daniel Palmer , "UK supermarket boss takes swipe at “premium” products_05-22-09", ausfoodnews.com.au, May 22, 2009, © Australian Food News
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GSK Plans Major Media Push for Mouthwash, Gum and Toothpaste

May 21, 2009: 05:49 AM EST
GlaxoSmithKline plans to promote its mouthwash brand Corsodyl in a campaign that covers online media, television and press. Celebrity health experts will be used in public relations campaigns, and print ads will feature facts about gum disease and point to a website with information on causes, symptoms and treatments. The website will also promote a 21-day challenge based on using the company’s Consumer Healthcare arm’s Corsodyl Daily Gum & Tooth Paste. TV ads will also promote the company’s mint mouthwash. The promotion begins in June.
Camille Alarcon, "GSK pushes healthy gum message with Corsodyl_05-22-09", marketingweek.co.uk, May 21, 2009, © Centaur Media plc
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Shoppers Starting To Shun Search Engines, Go Direct To Sites

May 13, 2009: 04:06 AM EST
Online shoppers are ignoring search engines and going directly to favorite websites, according to Redshift research and Maxymiser. Their report says money is being wasted on search engine optimization and marketing should shift to improve website functionality. Seventy percent of respondents said they would not return to a site if the buying process was unsatisfactory and 80 percent have abandoned the shopping basket method because systems are too slow.
Elizabeth Clifford-Marsh, "Online shoppers bypass search engines in hunt for deals", Revolutionmagazine.com, May 13, 2009
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EU Worries over Detergent Phosphates

May 13, 2009: 04:01 AM EST
The EU is gearing up to restrict phosphates in detergents in 2009, following a study in Spain that the chemicals are causing worse eutrophication (excessive and unwanted organism growth in fresh water) than previously thought. Norway wants to lower the maximum permissible phosphorus content of household dish washing detergents from 3.8 to 0.2 per cent. Other EU countries have already adopted or are planning further phosphate restrictions.
"EU to consider further phosphate detergent controls", ENDS Europe, May 13, 2009, © Haymarket
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Helen of Troy Loses some Luster

May 13, 2009: 03:46 AM EST
Helen of Troy sales in the year to the end of February 2009 fell 5 percent to $620 million, while earnings fell 6.5 percent to $83 million. The personal care and household goods maker said the market continues to be difficult and will continue that way for a time. Results from Global Fusion, bought from Procter & Gamble, will be included in the current year's accounts.
"Helen of Troy Ltd Reports FY2009 Earnings", Prnewswire.com, May 13, 2009, © Prnewswire
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Jergens Sets Foot in UK with Moisturisers

May 12, 2009: 05:25 AM EST
US bodycare company Jergens, owned by Kao of Japan, has entered the UK market with a moisturizer range. Jergens is backing the launch with a £5 million campaign, making it the country's second biggest bodycare advertiser, behind Dove. It is targeting the women's 18-45 age group, offering an alternative to more expensive natural products with the strapline ‘95% natural for 100% performance'. The company hopes to win over newly price sensitive consumers impacted by the recession. The products are available in Superdrug, Morrisons, Sainsbury's, Asda and Tesco.
Amy Golding, "Jergens to launch first range in the UK ", marketingmagazine.co.uk, May 12, 2009, © Haymarket
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Woman Want to be Younger All Over

May 12, 2009: 04:08 AM EST
Women now want anti-aging for their whole body and not just their face, and the market is changing to cater for this trend. But, as the recession continues, consumers might try to save money by going for multi-purpose rather than specialist products. The woman's body care sector in the UK grew £297 million in 2008 - up 23% since 2003 - according to Mintel, pushed partly by added interest in products with tanning properties, created by the launch of Johnson & Johnson's Holiday Skin in 2005. Mintel predicts the market will grow 2% a year to reach £332 million, largely driven by foot care. The over 45 sector is likely to grow and Dove is one of the few mass market groups targeting this. Unilever dominates the body care market.
Jane Bainbridge, "Sector Insight: Women's bodycare", marketingmagazine.co.uk, May 12, 2009, © Haymarket
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Shiseido Gets Busy in China with New Outlets

May 11, 2009: 05:27 AM EST

Japanese cosmetics and beauty specialist Shiseido plans to open 700 new outlets in China this year, bringing the total to 4,000. The Maquillage brand will also be promoted this year. The company plans to increase sales by more than 20 percent in 2010 to $100 million and the number of customers to 5 million. China's cosmetics market is estimated to be worth about $900 million, with L'Oreal the biggest seller.

"Shiseido to open 700 stores in China ", Nikkei Weekly, May 11, 2009
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Skintimate,Edge Shave Brands up for Sale

May 7, 2009: 05:50 AM EST
SC Johnson is said to be wanting to sell its Edge and Skintimate shave gels business, which is valued around $200 million. The mostly likely buyer is Energizer, which sells the same-name household batteries and owns the Schick shave brands.
Julie MacIntosh , "SC Johnson looks to cut shaving business", The Financial Times, May 07, 2009, © The Financial Times Ltd.
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Home Laundry Sales Down the Drain

May 7, 2009: 05:39 AM EST
US sales of home laundry products will fall 0.2 percent in 2009, according to Mintel, compared with an earlier prediction of a 2 percent rise. The agency says the economic downturn has made consumers buy products that cost less per ounce. Procter and Gamble says that consumers are switching to its cheaper products, while Whirlpool has suffered a 36 percent drop in sales as consumers are cutting down on purchases.
Teresa F. Lindeman, "Economic crunch is changing people's laundry habits", Pittsburgh Post-Gazette, May 07, 2009, © PG Publishing Co.
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