Simon Gwynn
Apr 21, 2020

P&G promises not to 'pull back' on marketing as coronavirus boosts sales

FMCG giant saw increase in organic sales in first quarter.

Daz: P&G says consumers are using more laundry products than before
Daz: P&G says consumers are using more laundry products than before

Procter & Gamble said that now was a time for "doubling down" on its existing media plans, as it reported better-than-expected organic sales growth for the first quarter of the year as a result of changing consumer behaviour in the coronavirus pandemic.

The FMCG giant’s organic sales for the quarter grew 6%, compared with what chief financial officer Jon Moeller said was a projected 2% growth. Speaking on a call to investors, Moeller said that not only had buying levels gone up, but consumers were actually using more products—because, for example, they are cleaning their homes more frequently and doing laundry more often.

"It’s trite and overused, but we really do expect to come out of this stronger than we went into it," he said, while acknowledging the crisis posed complex challenges to P&G, like all businesses.

Unlike many other companies, Moeller said P&G would not "pull back" on its marketing. "There’s more media consumption occurring right now than in the last three to four years, so changing that model doesn’t really make sense," he said.

"There is a big upside here in terms of reminding consumers of the benefits they’ve experienced on our brands and how they have helped them meet their families’ needs—that’s why it’s not the time to go off air."

P&G’s total sales for the three months were up 5% to $17.2 billion. Net earnings were up 7% to $2.96 billion.

Source:
Campaign UK

Related Articles

Just Published

2 days ago

Purpose, laughs, and boppable tunes: Spikes jury ...

SPIKES ASIA X CAMPAIGN: Presidents and members of several Spikes Asia juries share the top trends they spotted in the jury Zoom rooms, with video examples.

2 days ago

Crash Course: How to tell engaging short-form stories

To round off a week of creativity-themed content during Spikes Asia X Campaign festival, this Crash Course provides useful tips on how to build story arcs and create thumb-stopping campaigns for short-form.

2 days ago

Lessons from Tesla, Apple and yoga (yes, yoga) in ...

SPIKES ASIA X CAMPAIGN: Creatives need to drive relevance for sustainable options, instead of virtue-signalling about sustainability, argues Gulshan Singh of FCB Interface.

2 days ago

Spikes Asia Awards 2021: Campaign's contenders 3

As the juries make their final selections ahead of the March 1 winners announcement, Campaign Asia-Pacific's editorial team has once again scoured through the 2021 shortlist to pick out the work we expect to win.