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Trade Marketing Finally Gets Some Respect (Well, at P&G)

Procter & Gamble Co.'s new retail strategy follows closely the centralized processes of Gillette, acquired in 2005, yet Gillette vet Ed Shirley, group president-North America, will cede some power to career P&G executives in the global business units.
Ed Shirley, group president-North America, Procter & Gamble Co.
Ed Shirley, group president-North America, Procter & Gamble Co.

The system is part of a broader overhaul of P&G's Market Development Organizations globally, led in North America by Steve Bishop, who becomes president-North America Market Operations, reporting to Mr. Shirley, effective July 1. Marc Pritchard, president-global strategy, reporting to Chairman-CEO A.G. Lafley, has spearheaded the project globally.

The overhaul apparently won't lead to marketers being pulled off P&G's retail account teams, but will more clearly define their roles as implementing strategy set by brand teams.

Administratively, marketers in P&G's market-development organizations who now oversee narrow categories, such as laundry detergent or cosmetics, would shift to its global business units and report to marketing directors there.

North American marketers who handle multiple categories, termed "spanners" internally, would remain in the MDO as part of a rechristened Market Strategy and Scale group, working strictly on multibrand programs that aim to leverage the scale P&G enjoys by virtue of its many brands and categories.
Marc Pritchard, president-global strategy, P&G
Marc Pritchard, president-global strategy, P&G

One possibility is that the new Market Strategy and Scale group will also get limited profit-and-loss authority, which now resides solely with managers who oversee brand teams. Rather than "tin cupping," or having to beg for funds from the brand teams, one person said, the group may get its own independent budget for multibrand programs. In return, it would be responsible for delivering measurable sales increases. Some expect this new unit to come under Mr. Bishop's authority starting July 1.

Apparently unchanged in the new system, the North American MDO and its counterparts globally will remain responsible for media buying and planning.
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