Simplify. Simplify. Those were the words of wisdom from The Elements of Style, EB White's classic work on effective editing. Apparently, Procter & Gamble is taking a page out of White's book.


Nearly a year ago, P&G CEO AG Lafley told shareholders that Procter would divest nearly 100 brands in order to focus on its best-selling names such as Tide and Crest. Just last month, Lafley reiterated the less is more strategy during a speech at the Consumer Goods Forum in New York City. Specifically, Lafley lamented the flankers that crowd store shelves with labels screaming, “new” and “improved.”


“I don’t think the shopper or consumer sees it as innovative—the innovation that matters is the innovation she buys,” he told Forum attendees.


Since Lafley made the announcement a year ago, P&G sold off smaller brands here and there like Zest and Camay. The really big move was made just last month, when Coty acquired Max Factor, Cover Girl and Wella for $12 billion. Thus far, it's the biggest move in P&G's plan to sell dozens of brands to focus on the top 80 to 90, which includes Pampers diapers and Tide detergent, that generated 90% of its $83 billion in 2014 sales.


In his presentation, Lafley wondered whether CPG companies introduced too many new products, pointing out the fact that the vast majority of launches add very little to sales, if any. some 20% of the consumer and packaged goods industry’s assortment generates 80% of sales. Besides, he noted, adding 20% to 30% to the assortment might only lift sales 1%, a poor return. And too much selection can impede sales: an overwhelmed customer will just give up, costing the company and retailers business.


“It’s too confusing,” said Lafley. “You’re wasting their time.”


As for the pace of innovation and changes in packaging, that is often more a reflection of executives’ desires than those of customers.

 

“In general, we can get tired of our brand, what it stands for, our product, our package, long before our consumer does,” Lafley said. “New isn’t the best product in the store, the best product in the store is the one she or he wants, purchase more often, uses more often and comes back to.”