07.01.21
Cincinnati, OH
www.pg.com
Sales: $47.6 billion (estimated) for home, personal and oral care products
Corporate sales: $71 billion
Key Personnel
David S. Taylor, chairman, president and chief executive officer; Jon R. Moeller, vice chairman and chief operating officer; Steven D. Bishop, chief executive officer, health care; Gary Coombe, chief executive officer, grooming; Mary Lynn Ferguson-McHugh, chief executive officer, family care and P&G Ventures; Ma. Fatima D. Francisco, chief executive officer, baby and feminine care; Shailesh G. Jejurikar, chief executive officer, global fabric and home care, and executive sponsor global sustainability; R. Alexandra Keith, chief executive officer, beauty
Major products
Fabric Care: Tide, Ariel, Bounce, Cheer, Downy, Dreft, Era, Gain, Ace, Rindex. Grooming: Gillette, Venus, Art of Shaving. Hair Care: Head & Shoulders, Aussie, Herbal Essences, Pantene. Home Care: Cascade, Dawn, Febreze, Gain, Joy, Mr. Clean, Swiffer, Salvo, Ambi Pur, Comet. Microban, Swiffer, Zevo. Oral Care: Crest, Fixodent, Oral-B, Scope. Skin & Personal Care: Gillette, Ivory, Olay, Old Spice, Safeguard, Secret, Native, Snowberry, SK-II
New products
Fabric Care: Tide Power Pods, Gain Ultra Flings, Tide Hygienic Clean Heavy Duty 10X Power Pods Spring Meadow, Tide Pods Free and Gentle, Tide One Wash Miracle Solution, Bounce Mega dryer sheets, Dreft plant-based formulas. Skin Care: Olay Cleansing & Renewing Body Care Duo with Retinol, Olay Premium Exfoliating Body Wash Collection, and the Olay Dermatologist Designed Collection. Grooming: Pure by Gillette shave cream. Hair Care: Head & Shoulders Clinical, Royal Oils and Supreme; Pantene Nutrient Blend. Air Care: Febreze Light; Home Care: Mr. Clean Magic Eraser Sheets, Dawn Powerwash, Febreze Small Spaces. P&G Ventures: Opte beauty device
Comments: Even during a global pandemic, Procter & Gamble flourished. Its lineup of detergents, cleaners and personal care products proved to be essential as consumers stayed home and cared for themselves and their families. Organic sales rose 6% for the year ended June 30, 2020 and corporate sales rose 5%. Unit volume rose 4%. E-commerce organic sales soared 40% and accounted for more than 10% of P&G’s sales. Walmart represented 15% of sales. The company said volume increased mid-single digits in fabric and home care and increased low single digits in beauty. Volume decreased low single digits in grooming.
P&G expects sales to remain strong in an environment focused on health, hygiene and cleaning. The company notes that back in 2017, it assessed its entire portfolio and found that 30% to be superior across all measures. Today, that percentage is 70%. Kathy Fish retired a year ago as chief research, development and innovation officer. During her six years at the helm of RD&I, Fish launched GrowthWorks, an initiative to bring lean innovation to scale. The business unit-led, corporately-supported idea eventually produced more than 130 projects. Fish was replaced by Victor Aguilar in October. Aguilar has spent more than 20 years at P&G. Most recently, he served as VP-corporate innovation and open innovation.
NPD and new technology may drive innovation, but marketing drives sales.
A Marketing Titan
P&G practically invented modern-day marketing and last year, The Cannes Lions Festival of Creativity named it the Brand Marketer of the Decade. In the past year, P&G began using propensity modeling to help understand where the consumer is on her path to purchase, letting Procter reduce spending while increasing its reach. In a nutshell, propensity marketing looks specifically at the variables that drive consumers to take certain actions or hold specific opinion; i.e., become followers of a specific brand or product. Of course, to successfully build propensity models, a brand needs robust first party data, as well as access to second- or third-party data.
In an advertising move, P&G brought some creative and media planning in-house for Secret and other brands. The company said in-sourcing of certain media planning and other services, along with business growth added 2% to the employee roster, which was about 99,000 at the end of fiscal 2020. CEO David Taylor proudly noted that P&G employees stepped up in the early days of the pandemic by producing PPE and hand sanitizer. Since then, P&G donated significant amounts of products, cash and PPE to families and communities around the world through relief partners such as International Federation of the Red Cross, Feeding America and Matthew 25: Ministries. This year, P&G launched Lead with Love, a program to commit 2,021 acts of good for communities, each other and the planet.
No promises, of course, but good deeds often lead to good things. That was certainly the case for P&G in fiscal 2020. Fabric and home care sales rose 7% to more than $23.7 billion on a 6% increase in unit volume. P&G maintains that, since 2018, it has driven about 60% of global category market growth and raised organic sales growth to double digits last year. Fabric care volume increased mid-single digits as volume grew double digits in North America and Latin America, grew mid-single digits in Greater China, and grew low single digits in Europe. Home care volume increased double digits. Volume increased in all regions, led by double digit growth in North America and Europe, high single digits growth in Asia-Pacific, mid-single digits growth in Latin America and low single digits growth in IMEA.
Beauty sales increased 4% to $13.4 billion on a 3% increase in unit volume. P&G credited the gain to disproportionate growth of the skin and personal care category, including Olay, which had higher than segment average selling prices. Hair care volume increased low single digits, and volume in skin and personal care increased mid-single digits.
Grooming sales declined 2% about $6.1 billion. Shave care volume fell low single digits, but appliance volume increased low single digits.
Oral care volume increased low single digits. Gains in IMEA, Latin America, North America and Asia Pacific were partially offset by volume declines in Europe and Greater China.
By region, North America accounted for 47% of sales, with Europe far behind at 22%. Elsewhere, Asia-Pacific represented 10% of sales, followed by Greater China (9%), and Latin America and India, Middle East and Africa (IMEA), each with 6%.
For the nine months of fiscal 2021, sales increased 7% to $57.2 billion, driven by a double-digit increase in fabric and home care, high single-digit increases in beauty and health care and mid-single digit increases in grooming. Specifically, beauty care sales rose 7% to nearly $11 billion. Grooming sales increased 5% to $4.7 billion, and fabric and home care sales jumped 12.5% to $19.4 billion.
In April, Olay launched three new premium body care collections, including two new wash-off formulations featuring retinol. The new launches—Olay Cleansing & Renewing Body Care Duo with Retinol, Olay Premium Exfoliating Body Wash Collection, and the Olay Dermatologist Designed Collection—were designed by dermatologists with dermatologist-recommended ingredients to address specific dry skin concerns.
As parts of the world begin to emerge from the pandemic, P&G executives insist the company is well positioned to overcome any headwinds.
Last month, Vice Chairman and COO Jon Moeller took part in Deutsche Bank’s dBAccess Global Consumer Conference. He noted that in the six quarters proceeding COVID, P&G grew its top line an average of 5%, which was ahead of market growth. That momentum continued during the past five quarters with plus 7% organic sales growth, despite significant challenges, including the lockdown in China, closure of the travel, retail, specialty beauty and away-from-home channels. Moreover, growth is broad-based.
“Nine of 10 categories are growing organic sales through Q3,” observed Moeller.
www.pg.com
Sales: $47.6 billion (estimated) for home, personal and oral care products
Corporate sales: $71 billion
Key Personnel
David S. Taylor, chairman, president and chief executive officer; Jon R. Moeller, vice chairman and chief operating officer; Steven D. Bishop, chief executive officer, health care; Gary Coombe, chief executive officer, grooming; Mary Lynn Ferguson-McHugh, chief executive officer, family care and P&G Ventures; Ma. Fatima D. Francisco, chief executive officer, baby and feminine care; Shailesh G. Jejurikar, chief executive officer, global fabric and home care, and executive sponsor global sustainability; R. Alexandra Keith, chief executive officer, beauty
Major products
Fabric Care: Tide, Ariel, Bounce, Cheer, Downy, Dreft, Era, Gain, Ace, Rindex. Grooming: Gillette, Venus, Art of Shaving. Hair Care: Head & Shoulders, Aussie, Herbal Essences, Pantene. Home Care: Cascade, Dawn, Febreze, Gain, Joy, Mr. Clean, Swiffer, Salvo, Ambi Pur, Comet. Microban, Swiffer, Zevo. Oral Care: Crest, Fixodent, Oral-B, Scope. Skin & Personal Care: Gillette, Ivory, Olay, Old Spice, Safeguard, Secret, Native, Snowberry, SK-II
New products
Fabric Care: Tide Power Pods, Gain Ultra Flings, Tide Hygienic Clean Heavy Duty 10X Power Pods Spring Meadow, Tide Pods Free and Gentle, Tide One Wash Miracle Solution, Bounce Mega dryer sheets, Dreft plant-based formulas. Skin Care: Olay Cleansing & Renewing Body Care Duo with Retinol, Olay Premium Exfoliating Body Wash Collection, and the Olay Dermatologist Designed Collection. Grooming: Pure by Gillette shave cream. Hair Care: Head & Shoulders Clinical, Royal Oils and Supreme; Pantene Nutrient Blend. Air Care: Febreze Light; Home Care: Mr. Clean Magic Eraser Sheets, Dawn Powerwash, Febreze Small Spaces. P&G Ventures: Opte beauty device
Comments: Even during a global pandemic, Procter & Gamble flourished. Its lineup of detergents, cleaners and personal care products proved to be essential as consumers stayed home and cared for themselves and their families. Organic sales rose 6% for the year ended June 30, 2020 and corporate sales rose 5%. Unit volume rose 4%. E-commerce organic sales soared 40% and accounted for more than 10% of P&G’s sales. Walmart represented 15% of sales. The company said volume increased mid-single digits in fabric and home care and increased low single digits in beauty. Volume decreased low single digits in grooming.
P&G expects sales to remain strong in an environment focused on health, hygiene and cleaning. The company notes that back in 2017, it assessed its entire portfolio and found that 30% to be superior across all measures. Today, that percentage is 70%. Kathy Fish retired a year ago as chief research, development and innovation officer. During her six years at the helm of RD&I, Fish launched GrowthWorks, an initiative to bring lean innovation to scale. The business unit-led, corporately-supported idea eventually produced more than 130 projects. Fish was replaced by Victor Aguilar in October. Aguilar has spent more than 20 years at P&G. Most recently, he served as VP-corporate innovation and open innovation.
NPD and new technology may drive innovation, but marketing drives sales.
A Marketing Titan
P&G practically invented modern-day marketing and last year, The Cannes Lions Festival of Creativity named it the Brand Marketer of the Decade. In the past year, P&G began using propensity modeling to help understand where the consumer is on her path to purchase, letting Procter reduce spending while increasing its reach. In a nutshell, propensity marketing looks specifically at the variables that drive consumers to take certain actions or hold specific opinion; i.e., become followers of a specific brand or product. Of course, to successfully build propensity models, a brand needs robust first party data, as well as access to second- or third-party data.
In an advertising move, P&G brought some creative and media planning in-house for Secret and other brands. The company said in-sourcing of certain media planning and other services, along with business growth added 2% to the employee roster, which was about 99,000 at the end of fiscal 2020. CEO David Taylor proudly noted that P&G employees stepped up in the early days of the pandemic by producing PPE and hand sanitizer. Since then, P&G donated significant amounts of products, cash and PPE to families and communities around the world through relief partners such as International Federation of the Red Cross, Feeding America and Matthew 25: Ministries. This year, P&G launched Lead with Love, a program to commit 2,021 acts of good for communities, each other and the planet.
No promises, of course, but good deeds often lead to good things. That was certainly the case for P&G in fiscal 2020. Fabric and home care sales rose 7% to more than $23.7 billion on a 6% increase in unit volume. P&G maintains that, since 2018, it has driven about 60% of global category market growth and raised organic sales growth to double digits last year. Fabric care volume increased mid-single digits as volume grew double digits in North America and Latin America, grew mid-single digits in Greater China, and grew low single digits in Europe. Home care volume increased double digits. Volume increased in all regions, led by double digit growth in North America and Europe, high single digits growth in Asia-Pacific, mid-single digits growth in Latin America and low single digits growth in IMEA.
Beauty sales increased 4% to $13.4 billion on a 3% increase in unit volume. P&G credited the gain to disproportionate growth of the skin and personal care category, including Olay, which had higher than segment average selling prices. Hair care volume increased low single digits, and volume in skin and personal care increased mid-single digits.
Grooming sales declined 2% about $6.1 billion. Shave care volume fell low single digits, but appliance volume increased low single digits.
Oral care volume increased low single digits. Gains in IMEA, Latin America, North America and Asia Pacific were partially offset by volume declines in Europe and Greater China.
By region, North America accounted for 47% of sales, with Europe far behind at 22%. Elsewhere, Asia-Pacific represented 10% of sales, followed by Greater China (9%), and Latin America and India, Middle East and Africa (IMEA), each with 6%.
For the nine months of fiscal 2021, sales increased 7% to $57.2 billion, driven by a double-digit increase in fabric and home care, high single-digit increases in beauty and health care and mid-single digit increases in grooming. Specifically, beauty care sales rose 7% to nearly $11 billion. Grooming sales increased 5% to $4.7 billion, and fabric and home care sales jumped 12.5% to $19.4 billion.
In April, Olay launched three new premium body care collections, including two new wash-off formulations featuring retinol. The new launches—Olay Cleansing & Renewing Body Care Duo with Retinol, Olay Premium Exfoliating Body Wash Collection, and the Olay Dermatologist Designed Collection—were designed by dermatologists with dermatologist-recommended ingredients to address specific dry skin concerns.
As parts of the world begin to emerge from the pandemic, P&G executives insist the company is well positioned to overcome any headwinds.
Last month, Vice Chairman and COO Jon Moeller took part in Deutsche Bank’s dBAccess Global Consumer Conference. He noted that in the six quarters proceeding COVID, P&G grew its top line an average of 5%, which was ahead of market growth. That momentum continued during the past five quarters with plus 7% organic sales growth, despite significant challenges, including the lockdown in China, closure of the travel, retail, specialty beauty and away-from-home channels. Moreover, growth is broad-based.
“Nine of 10 categories are growing organic sales through Q3,” observed Moeller.