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.
In the latest episode of Marketing Week’s podcast, two Procter & Gamble marketers at different stages of their careers share how they have benefitted from the company’s mentor programme and the constant exchange of ideas.
Promoting the value credentials of its brands and building in new pricing architecture is enabling P&G to navigate inflation without losing customers.
Two senior global marketers debate whether today’s marketing can drive a sustainable future.
Kicking off its biggest ever UK launch, the Procter & Gamble-owned brand is looking to “modernise” its image with a “high impact” campaign for the new Gillette Labs razor.
The FMCG giant has reduced marketing spend as a percentage of sales by 80 basis points, while driving a 6% increase in net sales.
P&G spent $130m (£94m) on marketing over the first quarter of its financial year, while also reporting a 5% boost in net sales to $20.3bn (£14.6bn).