• Wall Street Journal, Friday, September 11, 2009 10:40 AM

Procter & Gamble CEO Robert McDonald says the company will cut prices, reach an additional billion consumers by 2015 primarily through overseas expansion, and reposition Cheer as a value brand, Ellen Byron reports. McDonald admits that P&G has fallen behind competitors and told attendees at a conference yesterday that it had "a sense of urgency" about delivering profitable market share growth.

P&G "has taken the gloves off," according to Deutsche Bank analyst Bill Schmitz. "People thought they had become complacent, waiting for the economy to turn, but this is a change in rhetoric for sure." Shares rose 4.2% in reaction to the news.

The company will reduce prices or increase promotional spending on about 10% of its business, including Tide and Cheer, which will be about 13% cheaper at retail. Tide will have "targeted interventions" on its larger sizes, the company says. It is also continuing its test of Tide Basic, which costs about 20% less than regular Tide.

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