Coronavirus has adversely affected sales of many companies thus forcing them to redesign their marketing budget. On the other hand, FMCG major, Procter & Gamble has reiterated that they will increase their marketing spend. The company saw an organic sales increase of 5% year-on-year as the coronavirus boosted consumer demand for products in its healthcare, fabricare and homecare categories. Panic buying amid lockdown in various countries has provided boost to sales of FMCG companies.
Though the demand is circumstantial, but chief financial officer of the company Jon Moeller confirmed that the company would be putting its foot down on media spend, rather than taking it off in an effort to bank cash.
He noted that while reduced product availability worldwide may lead to greater consumer trial of P&G products, it can also lead consumers away from their brands.
He said “There are consumers that are trying products that they haven’t tried before – but they aren’t necessarily ours. We need to work hard to ensure that we maintain mental and physical availability to the greatest extent possible, so that those consumers return to their beloved and trusted brands – which are ours – as they’re more fully available. There’s a big upside here in terms of reminding consumers of the benefits that they’ve experienced with our brands and how they’ve [met] their family’s needs, which is why this is not a time to go off air.”
Moeller noted the worldwide increase in media consumption was an added opportunity in “doubling down” on brand visibility.
“This is not a time to retrench,” he said. “And really that’s all in service to our consumers and service to our retail partners, and – we believe – in service to our society.”
P&G’s Q3 marketing spend was up 1.9% year-on-year, driven by increases in the beauty healthcare, and baby, feminine and family categories