Minding the Gaps
Did Clairol suit P&G? Yes, says Carrie Mellage, because the company filled a big gap in P&G's line of hair products. Mellage has been following P&G for years as the director of consumer products at the Kline Group, a New Jersey-based management consulting and market research company.
Looking back, was the purchase of Clairol good for P&G?
I do think it was a good idea. Buying Clairol put P&G into a blank space — hair coloring — they had not participated in before. This was the only major personal-care category they had not participated in. Clairol also gave them their first foot into the salon hair-care industry, where it is now the second-largest player in the world, after L'Oreal. So overall, yes, it was a good acquisition.
How important a move was this?
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For them to have this gap in their portfolio was a clear weakness. They did not have as much leverage going to retailers; there was a whole aisle they were missing.
How will P&G be different, post-Lafley?
Right now, P&G, like other companies, has to focus on emerging from the recession in a strong position. All companies have suffered to some extent, and P&G is no different. It is going to be more about the core brands that Lafley worked so hard to develop, communicating with consumers who have tightened their budgets, supporting the brands and keeping a strong relationship with retailers. I think so this will be a time of continuity, where they develop what they have. It is no time to shake things up significantly.
Was Lafley a good CEO?
The nine years he was CEO were definitely a prosperous period for P&G. Revenues were higher, and he made key acquisitions that have brought the company into new territory. There has also been a lot of channel diversification. P&G is still largely a mass company, but it has done well to expand into prestige outlets such as spas and salons. With acquisitions like the Art of Shaving and Frederic Fekkai, it has gone into a lot of uncharted spaces.
Was Lafley a good CEO?
The nine years he was CEO were definitely a prosperous period for P&G. Revenues were higher, and he made key acquisitions that have brought the company into new territory. There has also been a lot of channel diversification. P&G is still largely a mass company, but it has done well to expand into prestige outlets such as spas and salons. With acquisitions like the Art of Shaving and Frederic Fekkai, it has gone into a lot of uncharted spaces.
-As told to Cait Murphy
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