P&G: brand cull or category cull?

News of P&G’s intention to cull up to 100 smaller brands - approx. 10% of its revenue - in the next one to two years to focus on 70-80 of its big or ‘leadership’ brands, inevitably caused a flurry of reaction in the market..

However, now that the dust has settled, NAMs can think through the ‘small-print’ and its implications…

• This is a cull of brands, not categories i.e. the sold-off brands will remain in the ‘over-crowded’ categories, confusing shoppers…
• These categories - including possibly hair care, make up, shaving and healthcare - will continue to be populated by brands that are under new, invigorated ownership, by companies with a need to justify the cost of acquisitions...
• P&G’s retained brands will have the benefits of increased resourcing and focus i.e. more competition from P&G in its ‘leadership’ categories
• Suppliers and retailers have yet to address the possibility that the savvy consumer is confused by excessive choice....

Meanwhile, suppliers in many categories have time (?) to anticipate the new competitive landscape - Buying Mix Analysis? - in order to re-assess and optimise the relative appeal of their brands before the ‘pre-owned’ brands arrive…. 

The Wall Street Journal offers a list of possible P&G disposals here
AdAge lists the advertising agencies affected here