Procter & Gamble’s recent announcement that it will shed nearly 100 brands signals a dramatic change in strategy: Less is more. In this era of brand proliferation, narrowing a product portfolio is a rather unusual act, especially for a company known for its brand-management expertise.
Does the change indicate that brands are losing power? Not necessarily. P&G’s move toward a slimmer portfolio might not be as counterintuitive as it seems. In fact, it may be driven by the very fragmentation of the market that precipitated the proliferation of brands.