To succeed during Covid-19 we must ‘push forward not back’
P&G is aiming to use the pandemic to build on a strategy that increases productivity and builds long-term success for its brands.
To succeed during the Covid-19 pandemic, companies need to “push forward not push back”, according to Procter & Gamble’s CFO Jon Moeller.
Speaking at the Deutsche Bank Global Consumer Conference yesterday (11 June), Moeller explained: “The best way to deal with the challenge today is to push forward not to push back, which is exactly what we are doing.”
Moeller said the company’s strategy was “unwavering” and that P&G had a “bright future” despite the difficulties of coronavirus. He noted that P&G products “play an essential role” during Covid-19 as people spend more on cleaning products, among other things.
Moeller said the company is constantly asking “what needs must we meet in what new ways?”
To do that, P&G is focusing on “constructive disruption”, prioritising disruption across the entire business, including marketing and supply chains, as it seeks to be more productive.
He explained: “The short term need to balance this crisis and the long-term need to invest in top and bottom line growth underscore the importance of productivity.
“Success in our industry comes with a mindset of constructive disruption, a willingness to change, adapt and invest in long term technologies.”
He added that P&G want to “make productivity as integral as innovation” as it looks to drive brand choice.
The FMCG giant is discovering new ways to be productive daily as it adapts and streamlines its business due to coronavirus. However, Moeller was quick to point out that these changes will lead to positive long-term effects on the company.
“Today’s necessity is birthing the productivity of tomorrow,” he said.
He added that “a willingness to change, adapt and create new trends and tech to shape the future” was vital prior to coronavirus but is even more important given the new landscape companies are now trying to navigate.
P&G, like many companies, had been adapting its business to online for some time and Moeller noted that the current system has “been flawless” if “not without challenges”.
Moeller believes that the pandemic has led people’s attitude to health and hygiene may be “forever changed” by Covid-19.
This includes not only a rise in use of cleaning products but also home products as people spend increased times at home, which will lead to “superior performances” for many brands. He added that P&G is”stepping forward not back” and “doubling down to serve both our communities and our own interests”.
However, despite this confidence he admitted that the short to mid-term results are “frankly anyone’s guess”.
He added: “Our strategy was good and effective prior to this environment but is perfect in the current one. We are very well positioned.”