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EVOLUTION OF BRAND MANAGEMENT AT P&G

Published on .

1931: P&G President Richard Deupree approves brand manager system proposed by Neil McElroy, then responsible for advertising of Camay soap and later to be P&G president (and U.S. Secretary of Defense).

1979: Business teams instituted for some brands, bringing manufacturing considerations into the brand marketing process.

1987: P&G begins implementing category management, creating a new layer of management over brands that once competed fiercely with each other.

1990: P&G begins implementing everyday low pricing, or value pricing, trimming trade promotion and couponing and eliminating slower-moving brands and stock-keeping units. Trade promotion dollars are funneled into customer business development funds, replacing what P&G sees as inefficient trade promotion practices, such as off-invoice allowances, which are eliminated.

1993-95: Through restructuring P&G cuts marketing staff by 30%, eliminating brand assistant and assistant brand manager positions for some smaller brands. Company seeks to weed out needless variations in products and packaging internationally.

1995: P&G begins planning for Marketing Breakthrough 2000, aiming to reduce marketing spending from 25% to 20% of net sales by fiscal 2000. P&G seeks to adopt "global success models" in ad copy and product development across regional boundaries and launches steps to improve cost effectiveness in media spending worldwide.

1997: After awarding centralized print ad planning and buying to Leo Burnett Co., P&G begins review of media buying and planning for TV, moving some planning functions of brand managers and agencies to TV buying agency of record (to be

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