P&G plans to cut prices in bid for growth

CONSUMER goods giant Procter &amp; Gamble said yesterday that it plans to cut prices and increase promotions, and that it expects to return to organic sales growth by the end of the year.<br /><br />P&amp;G shares rose after its chief financial officer Jon Moeller said the company expects organic sales to rise one per cent to four per cent in the second quarter, which starts in October, after being down as much as three per cent in the first quarter.<br /><br />P&amp;G chief executive Bob McDonald added that P&amp;G wants to expand the number of consumers that use its products to 5bn by fiscal 2015, from about 4bn in the current fiscal year.<br /><br />It plans to do this by offering more items at lower prices, especially in parts of the developing world like India, where McDonald said the company is focused on switching consumers from cloth nappies to a version of its disposable brand Pampers.<br /><br />The maker of Gillette razors has faced major pressure from cheaper store brands and also felt the pinch as retailers cut back on goods they keep in stock.<br /><br />&ldquo;We clearly see that we are approaching an inflection point in P&amp;G&rsquo;s organic sales trends,&rdquo; Moeller said.