Peltz’s critique of the company, which earned him a slim majority support of shareholders, focused on P&G’s brand-building strategy and loss of market share.
But P&G has gotten some investor pushback on its marketing cuts, which some investors think has improved quarterly balance sheets at the expense of ceding market share to startup brands.
“It wouldn’t make sense to dial back on support for brand creation, and we haven’t done that,” CFO Jon Moeller told one investor who was concerned about the long-term viability of such deep cuts to advertising.
Some costs won’t return, like the company’s old agency model with high fees and retainers, but working media spend bounced back 4% year over year, Moeller said, and there isn’t a contradiction in continuing to increase paid media with reduced supply chain costs.
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