The Procter&Gamble Co., a bellwether of consumer spending, has shifted tactics in the chase for bargain-hunting shoppers with price cuts, promotions emphasizing value, and even a shakeup of its famed laundry business.

Some economic indicators have implied the economy is improving, but P&G says it’s not expecting consumers to start spending freely again. So it’s doing more courting of the frugal.

After watching sales drop all year as households cut spending and traded down to cheaper competitors, P&G officials said Thursday they expect sales to start bouncing back this fall because of new products, lower prices and more promotions.

The forecast sent P&G stock up, as investors saw signs of a turning point for the maker of Gillette shavers and Pampers diapers in its projection of a 1 to 4 percent increase in organic sales -a key gauge that excludes acquisitions and other such impacts on sales totals – for the October-December quarter. Shares jumped $2.29, or 4.2 percent, to $56.05 in Thursday afternoon trading.

“We firmly believe we’ve made the right choices in the past year to deal with the global economic crisis, but we also know that we can and must deliver better overall results,” Jon Moeller, P&G chief financial officer, said at an investor conference in Boston.

Robert Passikoff, who heads the customer research marketing firm Brand Keys Inc., said P&G has long been an innovation pacesetter but now also must follow shoppers, who are focusing on price and value in their decisions.

“We’ve seen this shift coming even before the economy went to hell,” he said. “With the economic downturn, more attention has been called to it.”

Bob McDonald, P&G’s CEO, said the company will continue to develop new premium-priced products like the recently launched Tide Stain Release additive, as well as expanding lower-tier offerings while adding to its presence in huge emerging markets led by China and India.

Company leaders say they are cutting prices across about 10 percent of their global product line, stepping up promotions such as coupons and other discounts, and making more “value” pitches to consumers – Moeller says the economy has meant that P&G can get more advertising for its dollar. He said it’s already seeing better sales for such products as Charmin toilet paper, Bounty paper towels and Tide laundry detergent.

P&G also announced a new plan for its laundry business, slashing the price of Cheer detergent by 13 percent next month and promoting it as a bargain brand. Besides market-leading Tide, which dates back more than six decades, P&G also sells Gain, a fast-growing, lower-priced detergent that has topped $1 billion in annual sales.

However, P&G sees strong opportunity for Cheer because of research that shows the detergent, introduced in 1951, has a significant gap between sales and approval ratings. P&G officials are also still testing a low-cost “basic” version of Tide.

Moeller on Thursday said P&G also expects “solid” earnings growth for its second quarter ending in December, but didn’t give any figures. Analysts surveyed by Thomson Reuters expect an average of 97 cents.

Organic sales fell the past two quarters, and P&G says it expects them to be flat or drop as much as 3 percent in the current quarter. The company stuck to earlier guidance for the current quarter of 95 cents to $1 – analysts say 97 cents.

P&G said the recently announced $3.1 billion sale of their prescription drug business to Ireland’s Warner Chilcott PLC should help bring annual earnings of $3.99 to $4.12. That’s up from $3.65 to $3.80 a share projected before the sale. The new total also reflects other gains.

Yellow Peaches and Nectarines – .77/lb
Red, Green or Romaine Lettuce – .88/ea
Cucumbers or Green Bell Peppers – 2/$1
5lb Bag of Russet Potatoes – 2/$3
All Natural Bone -In Ribeye Steak – $4.77/lb

Organic:
Cantaloupe – .99/lb
Cherries – $3.99/lb
Tropical Mangos – .99/ea
Hothouse Tomatoes – $1.69/lb