P&G Sheds Pringles

Proctor and Gamble Co. settled on a $1.5 billion deal with Diamond Food Inc. This deal marks P&G's exit from the food business, while Diamond inherits $850 million worth of Pringles debt. this deal will be structured to minimize the tax impact on the Proctor and Gamble share holders. The company will split of an entity to own the Pringles business and merge it with Diamond. This deal should solidify P&G standing in the Household industry as now it is completely out of the food industry and could focus more of its products towards its strong point, Household nondurables.

Marketing

A key factor in getting a product known by the consumers is knowing what the consumers like and what they don't like. In recent years, the house hold and personal product industry has seen a shift in sales from brand name products to generic ones. This is due mostly because of the cheaper prices. Since the generic products don't need to advertise they don't have to pay the cost of marketing for the product and it ultimately brings a cheaper price. Companies in this industry try to tailor their advertisements, placement and pricing of the product to the consumer's desired needs. The major differences between companies in this industry would be price, and product advertisement. If a company can manage to advertise their company to prove the consumer their product is superior than the competition, and will ultimately sell more products.

Investors Want Firms to Come Clean

Due to the recent condition of our economy, investors are putting pressure on the Household Industry to make more price cuts in order to make their products more affordable. On Thursday, chief executives from the industry's top companies will meet in Boca Raton Fl in order for the executives to showcase their new ideas for growth strategies and talk about new products. One important thing to watch out for on Thursday is what plans these industries have in order to cut costs and tighten their belts or even being firings/layoffs. Although many companies are willing to make the necessary sacrifices for the investors, Proctor & Gamble is still resisting large-scale cost cuts or layoffs. It is important to see what will come of this conference on Thursday.