P&G leverages digital to drive sales

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Consumer packaged goods (CPG) companies now face many challenges beyond their control, from supply chain challenges to soaring inflation. In this difficult environment, it is all the more important for them to optimize the areas under their control.

To that end, Cincinnati, Ohio-based CPG giant Procter & Gamble, parent company of a wide range of hygiene and home care products, among others, is leveraging digital technologies to empower both its internal efficiency and its ability to attract consumers, according to the company’s chairman, president and CEO Jon Moeller.

“Increasing our digital acumen to drive consumer preferences, reduce costs and enable fast and efficient decision making, increased digitization of manufacturing lines, increased use of AI and increased use of blockchain are not not ends in themselves,” Moeller said in a call with analysts on Friday. (July 29) discussing the company’s fourth quarter and fiscal year 2022 financial results. “These are tools that we can use for light consumers and customers at the most reasonable cost possible.”

In fact, digital capabilities are both an opportunity and a potential risk. In outlining the risks and uncertainties facing the company’s vision for the future, Procter & Gamble raised the possibility that it may not be able to stay “at the forefront of innovation”, noting that it is possible that competitors evolve their digital marketing faster and achieve technological breakthroughs (and obtain corresponding patents) first.

Additionally, P&G Chief Financial Officer Andre Schulten noted that more than half of Procter & Gamble’s advertising is through digital channels, a shift that may benefit the company given the growing preference consumers for e-commerce.

Research from this month’s edition of PYMNTS’ ConnectedEconomy™ study, “The ConnectedEconomy™ Monthly Report: The Rise Of The Smart Home”, which is based on a May survey of a balanced panel of more than 2,600 American adults, reveals that 36% of millennials make digital transactions every day.

See also: New data shows convenience drove smart home upgrades for 83 million consumers in 2022

Additionally, many consumers purchase their CPG products at physical or virtual grocery stores, and online grocery shopping is on the rise. The study found that 4 in 10 consumers had ordered groceries online for home delivery in the past month, and almost as many said the same about curbside pickup. Additionally, 16% of consumers said they order groceries online through these channels every week.

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