Perhaps one of the most accurate descriptions of this year so far, The Procter & Gamble Company Chairman of the Board, President and CEO David S. Taylor, opens the CPG giant’s annual report saying, “Fiscal year 2020 will go down as one of the most challenging years for P&G in our 183-year history.”
However, that has not stopped the company from reporting 5% net sales growth in its latest financial filing, outlining long-term strategic growth plans and crediting its people for its results.
First, Taylor reinforced the three most immediate priorities carrying P&G through the pandemic include protecting the health and well-being of its employees; maximizing the availability of P&G products; and supporting the communities, relief agencies and people on the front lines of this global pandemic.
Notable of full-year results includes growth for nine of 10 product categories, growth for two of its largest and most profitable markets [U.S. and China], and a 40% increase in e-commerce organic sales.
What’s more? P&G hasn’t slowed down on technology investments.
In fact, according to a recent social media post by P&G CIO Vittorio Cretella, says, “In the U.S., Europe, Latin America and Asia, we’re using data and analytics to better ensure we’re in precisely the right stores — down to the neighborhood level — with the right shelf sets, placement, sampling and marketing — resulting in a better consumer experience and category growth.”
Cretella explained that this is just one of the ways Procter & Gamble is leading “Constructive Disruption,” which addresses a rapidly changing retail environment, quickly evolving consumer needs, media ecosystem transformation and changes in technology.
Investments in Constructive Disruption
P&G is embracing lean innovation so it can act with the speed of a startup for future products, by combining robust consumer insights, coupled with science.
The company is using precision tools like propensity modeling to help understand the consumer’s path-to-purchase. P&G is also bringing some advertising creation in-house to provide complete control of its media, as well as flexibility for less cost and faster execution.
The brand has advanced its supply chain in the face of COVID-19. This includes shipping directly to customers when needed and accelerating the use of data platforms and machine learning, to better understand consumer consumption and raw material availability.
Finally, it is investing in digitization and data analytics as previously explained by Cretella.
“We continue to believe our strategy — a portfolio of daily use brands; meaningful superiority across products, packages, communication, retail execution and value; driving productivity in everything we do; constructive disruption across all areas of our business; and a more empowered, agile, and accountable organization — is the right one, and it is delivering strong, balanced growth and value creation,” Taylor said.