09/09/96 TABLE: How Procter & Gamble Is Paring Down

How Procter & Gamble Is Paring Down

STANDARDIZING product formulas and packages. P&G now uses just two basic packages for shampoo in the U.S., saving $25 million a year.

REDUCING trade promotions. P&G gives stores fewer discounts and rebates, and it bases them on sales volume. That means more stable prices.

EASING UP ON coupons. With redemption rates falling, Procter is issuing fewer coupons--and going cold turkey in an upstate New York test.

GETTING RID OF marginal brands. Selling off second-tier brands such as Bain de Soleil sun-care products lets P&G concentrate on its market leaders.

CUTTING product lines. Axing extraneous sizes, flavors, and other variants makes it easier for consumers to find what they're looking for.

REAPPLYING strategies that work. Always sanitary pads uses the same ads worldwide. A distribution system developed in Eastern Europe is being exported to Asia.

TRIMMING new-product launches. Only items with a strong chance of making the top half or third of their category in unit sales get the green light.