Why Procter & Gamble Is Succeeding (Hint: Advertising!)
Procter & Gamble has exploded analyst predictions for the company’s just-concluded fiscal first quarter. Organic sales are up to $19.3 billion, a jump of nine percent; net earnings have risen 19 percent; and there’s no indication that, as the pandemic grinds on, people are trading down to cheaper products. Why is P&G succeeding? It’s not just because it’s selling the right products at the right time. Read on to learn more about how:
P&G Is Prepared for the Moment
According to statista.com, P&G ranked as one of the Top 5 advertisers in 2019 based on the company’s ad spend. This is important to recognize because, even before COVID-19 was a glimmer on the horizon, the company was keeping in the forefront of consumer’s minds. P&G’s strategy was sound, predicated on the fact that during flu season, people naturally want to stock up on cleaning products. And although the company had no idea a pandemic would soon eclipse the flu in severity, its strategy and preparation mentality, rooted in strong advertising, served P&G well. When COVID-19 hit and consumers rushed to purchase cleaning products, P&G product name awareness was already high.
P&G Never Wavers from Creativity
The company’s advertising isn’t just timely, it’s creative. P&G consistently rolls out innovative, culturally relevant campaigns with digital at the center. For example:
- During a year when the pandemic has left many older Americans feeling isolated, P&G’s Ivory brand launched an Acts of Gentle Kindness initiative to support and uplift seniors through distribution of “Ivory gentle care packs.” The packs, which included an assortment of Ivory products, cozy accessories like socks, and puzzles/brain games, celebrated World Kindness Day by focusing “on spreading positivity.” For the initiative, Ivory partnered with TV personality Catherine (Giudici) Lowe and Cavanaugh Bell, the seven-year-old Chief Positivity Creator at nonprofit organization Cool & Dope. Both encouraged families to get involved and create care packs for their own communities; the resulting stories could be shared on Instagram, Facebook, or Pinterest with the hashtag #IvoryKindness.
- P&G’s Skinclusive Summer Line by Venus celebrated the many skins we’re in by partnering with the popular Animal Crossing video game series. During a summer when going to the beach wasn’t necessarily a slam dunk due to COVID-19, Animal Crossing became a way to hit the beach virtually. And the game, which is especially popular among women aged 19-24, took self-expression to a new level: Gillette Venus partnered with digital designer Nicole Cuddihy to co-create new “skin-clusive” avatar designs. The game, which originally offered just a few representative skin types for its avatars, now gives players a choice of 250+ designs encompassing 19 different skin types and eight in-game skin tones. Notably, common skin features such as acne, cellulite, vitiligo, and tattoos are represented. Cuddihy notes, “While momentum for diversity in design is building, there are many areas where progress feels slow. The fact that I could add scars and wrinkles to warriors or outlaws, but not characters in less combat-driven games felt discouraging. With these designs, I hope that all women in Animal Crossing can find comfort and representation in this carefully developed collection. I drew inspiration from those in my own life to ensure the designs I was creating accurately represented their skin stories in a way that feels real, celebratory and beautiful.”
P&G Is Preparing for the Future
Per Ad Age, P&G does not seem inclined to tighten the purse strings when it comes to marketing: marketing spending for P&G grew at least $100 million last quarter. As Vice Chairman and Chief Financial Officer Jon Moeller said, “We view this as a time to spend forward in terms of our advertising levels, not to spend back. First, there’s never been more media consumed than there is currently, as we all try to entertain ourselves and our families and survive. And two there’s a heightened need to spend on hygiene and health.”
The message is clear: P&G isn’t afraid to invest in advertising. And as we recently blogged, it’s important that all businesses keep their eyes on the ball by maintaining brand awareness with advertising: now, and going forward.
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