P&G reported earnings down 5.1% to $1.1 billion, or 79 cents a share, for its fiscal first quarter as restructuring charges ate into higher operating profits. Sales were flat at $9.77 billion after foreign currency effects shaved two percentage points of growth.
"There is room for leading national brand growth and private-label growth at the same time," he said.
P&G has maintained total marketing spending as a percent of sales at levels similar to a year ago, Mr. Lafley said, but is demanding more from its money.
"We no longer tolerate advertising that's not building market share profitably," he said, adding that 13 of P&G's top 15 brands have advertising that scores in the top tier of the company's pre-market advertising test scoring system.
"The other two," he said, "will get better advertising soon."