• Wall Street Journal, Thursday, August 19, 2010 11 AM

Consumers might be snapping up iPads, but their trips to the store to buy shampoo reflect ongoing frugality, reports Ellen Byron. In response, Proctor & Gamble is slashing prices even as it pushes into new territory, including Brazil, India and parts of Africa, where it has long lagged.

Among the premium brands P&G has been discounting in recent months are Tide detergent, Charmin toilet paper and Bounty paper towels. In the 12 weeks ended July 10, promotions by P&G and its retailers also knocked down the prices of hair conditioners by 7%, fabric softeners by 6% and liquid laundry detergents by 5%, according to Sanford Bernstein's analysis of U.S. data gathered by market research firm Nielsen Co.

CEO Robert McDonald says P&G will introduce more "significant innovation" this year than any other time in his 30 years at the company. That includes items like Gillette razors with a less irritating shave, Crest toothpaste with a "sensitive shield" and Downy fabric softener that promises to keep sheets smelling fresh for a week.

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