ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Procter & Gamble Legacy on the Rise

Updated on October 29, 2012
No longer in currency, this former Procter & Gamble logo went by the wayside amidst claims of satanic symbolism, but it was an emblem of P&G's legacy in Cincinnati and nationally for a long time.
No longer in currency, this former Procter & Gamble logo went by the wayside amidst claims of satanic symbolism, but it was an emblem of P&G's legacy in Cincinnati and nationally for a long time.

Procter & Gamble is an Emerging Market Play

by Robb Hoff

October 26, 2012

Imagine if you will............no.....don't. Rod Serling's "Twilight Zone" intros are about as dead to this world as Procter & Gamble's defunct soap opera "As the World Turns" or the company's moribund logo.

And yet here remains P&G, its stock experiencing an unexpected bump in the wake of revenues and profits that weren't as bad as expected.

In fact, P&G stock hit its highest level over $70 per share since the financial markets collapse of late 2008. Combined with a dividend of $2.25, things may look as bright on the P&G horizon as a white sheet washed with a Tide Pod of laundry detergent in the River Ganges.

Or maybe not.

The P&G dividend has been a nice ride, even more so when the yield was higher due to lower stock price. But the looming fiscal cliff continues to hang the dividend guillotine over the heads of investors with the scepter of a tax slaughter that would raise the dividend tax rate from 15% up to 43%.

That combined with another bad omen -- inflationary increases in the cost of basic necessities and simple luxuries like those branded by P&G.

The question facing P&G -- at least in the U.S. -- is whether or not those branded basics from diapers and tampons to toothpaste, shampoo and laundry detergent will continue to command their marketplace among consumers who are quite frankly most likely to be the real victims of the fiscal cliff and the continued fallout of an economy that remains on a dead-cat bounce along the bottom of an economy that is still too lifeless overall.

Victims like those P&G employees who found themselves in the guillotine of a P&G restructuring that features 7,500 fewer jobs. I would expect that the generic versions of P&G brand names will be their shopping choice regardless of how many cellphone coupons are made available.

Now, the company restructuring and trimming of proverbial fat from the corporate gut might not work out so well for the recently P&G unemployed, but you can bet your last dollar that it's going to work out real well for P&G investors.

Why? Because the execution of the plan (and the careers of those P&G employees) is exactly what the P&G-invested activists have demanded -- a commitment to the 21st Century American calling card that "Less is More".

Savings like the $10 billion estimated by the restructuring plan won't alone make the bottom-line difference, but it will keep the activists at bay until P&G's current leadership proves it can really do the next thing on the list -- innovate.

In the case of P&G, innovate may be more akin to integrate, whereby one single product -- the Tide Pod single-dose of detergent -- may be asked to spark a worldwide cultural revolution unlike any seen in human history. Well, sort of.

The idea is simple enough -- the individual-use pods realize a much higher total revenue number than the same amount of detergent produces by the scoop or pour.

And it is already working. Will it work worldwide? Will the River Ganges be filled with Bhagavad Gita rejoicings whilst individual doses of Tide Pod detergent clean all manner of garb like it has never been cleaned before even as carcasses float by?

Perhaps. But there is no question that P&G's integration into the consumer product consciousness throughout the emerging market world will bring some measure of Nirvana to stockholders as annual revenues continue their climb toward $100 billion -- enough for about $14 worth of product spent by every human on the planet every year.


Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)