The FMCG giant’s chief brand officer warned against embracing technology at the expense of human creativity – and encouraged marketers to find the creativity in the everyday.
P&G is seeking to grow the categories it operates in as it pursues volume growth, utilising its increased marketing spend to do so.
P&G is aiming to build its brands and the categories in which they operate through meaningful innovation, CEO Jon Moeller says.
The consumer goods giant is committing to further investment in marketing efficiency as it seeks to drive category growth in beauty and home care.
The consumer goods giant ‘reset’ its superior product portfolio, reducing the proportion of its products that are included in it, in order to fight ‘inertia’.
Consumer goods giant P&G is banking on its ‘product superiority’ to allow it to continue to raise prices as it returns to volume growth.
P&G decides its level of marketing investment based on how spend is performing to drive its strategy and create value, rather than a set budget to adhere to and will continue to even as economic conditions improve.
Growing markets should be the “highest order ambition” for marketers, Pritchard said, as it attracts more people, which in turn creates more value.
The barriers to introducing accessible advertising are relatively low, but the potential gains for brands are high, according to P&G Europe’s chief brand officer, Taide Guajardo.
CFO Andre Schulten says it would not be smart for P&G to be drawn into a price war with private label competitors.
P&G reported its first quarterly sales decline in five years during its most recent earnings, but is now targeting a return to its ‘balanced growth algorithm’.
Procter & Gamble increased ad spend by $140m (£113m) in the last quarter as it seeks to drive household penetration for its brands.
P&G reported a 4% drop in profits over the first quarter of its 2023 financial year, with gross profit reducing from $9.97bn (£8.86bn) in 2021 to $9.76bn (£8.67bn).
While promising continued brand investment, P&G is also making spend more efficient, with new targeting capabilities across both TV and digital.
Marketing is likely to face “increased scrutiny” as inflation continues to rise to record breaking levels, so marketers must focus on using creativity as a “power for growth”, Pritchard said.
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