P&G believes that the COVID-19 outbreak is the opportunity for FMCG (Fast Moving Consumer Goods) Industry to “remind” consumers of the benefits brands can give them so that now is not the time to reduce marketing investment.
Jon Moeller, the chief financial officer of P&G, had a conference call with their analysts after reporting P&G 2020 third-quarter performance. He said that some industries are trying to cut marketing spending. However, P&G is even doubling their effort.
P&G has spent more to advertise product categories such as beauty products, healthcare products and baby items, and the marketing investment in the latest quarter has grown 1.9%.
P&G has spent more to advertise product categories such as beauty products, healthcare products and baby items, and the marketing investment in the latest quarter has grown 1.9%, reaching £280 million.
‘There is more spending on advertising than ever before. It is the time to provide a wider range of services to our consumers, our retail partners and the broader community, not the time to consider job cuts.’ Moeller said.
Net sales reached about £14 billion in the third quarter of 2020, up 5% from the same period last year, according to the company’s fiscal third-quarter results. Excluding the net impact of foreign exchange, acquisitions and divestitures, organic sales rose 6%.
P&G has found a 20% increase in demand for some brands as consumers continue to buy products such as cough pills, cleaning products and long-storable foods. Also, in some healthcare advice, men need to shave to get the better result of using facial masks, which even caused shaving markets, has been promoted.
The rise in demand has led P&G, which operates brands including Gillette, Ariel and Vicks, to “concentrate” on its product series and markets where the need is most significant and need to meet it. Sales of a range of P&G’s well-known brands, such as Bounty tissue, Tampax tampon, Charmin toilet paper and Pampers diapers, has risen 6% to 8%. Moeller presumed that there would be more consumer use of P&G products as more people do more laundry and cleaning works at home.
EMarketer, a market-research company, predicted in a revised report published on March 6th that the current virus outbreak would bring advertisers £16.6 billion less over the world than previously estimated. Media spending is expected to grow by 7.4% to almost £584 billion in 2020, compared with a revised 7% increase to £567 billion.