Company Strategy

Company Strategy

Company Strategy

"In fiscal year 2019, P&G met or exceeded each of our core financial goals—organic sales growth, core earnings per share growth and adjusted free cash flow productivity—all while improving market share and generating leadership levels of shareholder value creation.

We are focused on winning with consumers and shoppers through superiority, fueled by productivity, and delivered by an empowered, agile and accountable organization that is driving constructive disruption across the entire value chain in our industry.”

DAVID S. TAYLOR
Chairman of the Board, President and Chief Executive Officer

ACCELERATING NOTICEABLE BRAND SUPERIORITY

P&G is creating and extending competitive advantage through superior product performance, packaging, brand communication, retail execution, and consumer and customer value.

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Products

Superiority starts with superior products - products so good, consumers recognize the difference.

Packaging

These products are delivered in superior packaging - packaging that attracts consumers, conveys the brand equity and closes the sale.

Brand Communication

Product and packaging benefits need to be communicated with exceptional brand messaging.

Retail Execution

We work collaboratively with our customers to deliver superior retail execution - in-store and online.

Consumer & Customer Value Equations

We’re focused on delivering superior value to consumers and our retailer customers, in each price tier where we compete.

SUPERIORITY LEADS TO GROWTH AND VALUE CREATION

When we excel across these measures of noticeable superiority, we deliver on key business success metrics:

  • Sales

  • Profit

  • Market Share

  • Household Penetration

  • Market Size

Where we achieve noticeable superiority on at least four of the five superiority measures, we deliver on the business success metrics 80% of the time.

Where we achieve three or fewer superiority measures, we do not deliver on our desired business outcomes.

DELIVERING PRODUCTIVITY TO FUEL INVESTMENTS

Productivity provides fuel for innovation and investment to accelerate and sustain faster top- and bottom-line growth.

WE’RE DELIVERING PRODUCTIVITY ACROSS THE P&G SUPPLY CHAIN

Digitized Planning

  • We can now support a new request from a customer for an incremental order in less than one hour, which once required 24 hours or more

Supplier Integration

  • Co-locating suppliers in plants reduces truck traffic and distribution cost
  • Increased synchronization of P&G’s operations with our suppliers leads to lower inventory and other costs

Multi-Category Manufacturing Sites

  • Plants supply several categories vs. only one
  • Production on demand
  • Globally scalable technology

Customer Collaboration

  • With new U.S. mixing centers, 80% of shipments are within 24 hours of retailers
  • Leads to higher in-stock levels and lower cost of goods

WE’RE DELIVERING PRODUCTIVITY BY REINVENTING MARKETING

  • Reinventing media from wasteful mass blasting to mass reach with one-to-one precision, enabled by data and technology.

  • Reinventing advertising from mass clutter to less doing more.

  • Reinventing agency partnerships from outsourcing too much of our work to getting our hands on the keyboard.

  • Reinventing brands to be a force for good and a force for growth - people want to know what brands and companies believe in.

IMPROVING OUR ORGANIZATION AND CULTURE TO WIN

Simplifying our structure and clarifying responsibility and accountability
Driving deeper mastery and depth in each category
Strengthening compensation and incentive programs