The giant’s results are impressive – the period from January to March 2020 brought a 6% increase in sales. e-Commerce has grown globally by 35% and currently represents 10% of the business (some categories in e-commerce have risen by up to 50%). 9 out of 10 categories recorded an increase – only the Grooming category recorded a decrease. It is clear that in uncertain times of fluctuating demand, strength is diversity – better performing categories help to “patch holes” caused by declines in others. Companies with a rich portfolio, like P&G, are better prepared for a recession.
Of course, each category requires a different approach and flexible responses for example, P&G sales in the Family Care category are growing, but market shares are falling. Conclusion: competitors daily serving industrial and individual clients can quickly increase supply for individual clients when the industrial client is inactive, which is why the role of advertising communication is growing. P&G’s approach to the crisis means: facing it head-on, not cutting the budgets, reacting and strengthening those sectors for which there is natural demand. A primary focus is on “cleanliness” and “hygiene”: in communication and in operations across the company. Promotion dynamics are changing – an essential thing in the current situation is to ensure continuity of supply and product presence on the shelf, promotions will be less relevant. Innovations, such as washing machines that provide information on detergent consumption and help the consumer to make adequate supplies, and the company – plan supply, will become increasingly important.