Procter & Gamble prioritizes innovation and brand building over promotion, CEO says

Procter & Gamble, one of the leading companies in the consumer goods industry, reaffirms its commitment to innovation and brand building over promotional activity. At the Consumer Analyst Group of New York conference, CEO Jon Moeller shared the company’s philosophy, highlighting its focus on strategic investment to drive growth and competitiveness in the marketplace.

Procter & Gamble CEO Jon Moeller emphasized the company’s stance toward prioritizing investment in innovation and brand building over promotional activity. During his participation at the Consumer Analyst Group of New York (CAGNY) conference, Moeller noted “We would rather invest $1 in innovation or $1 in brand building any day of the week than invest in promotion.”

Despite acknowledging a slight increase in promotional activity to remain competitive, Moeller stressed that P&G’s promotional levels remain significantly below pre-pandemic levels. He stated that discussions with retailers are focused on how to work together to expand market size, with this approach being beneficial to both the company and its retail partners.

Moeller explained that P&G’s strategy to increase market size focuses on innovation, especially in “everyday” categories, where brand superiority is crucial. He stressed that innovations driven by deep consumer insights, combined with effective marketing strategies both in stores and online, are key to category and brand growth.

He also noted that technological advances, such as the use of artificial intelligence, are enabling P&G’s teams to innovate more efficiently. CFO Andre Schulten added that the company is focused on big ideas that generate significant results and expand markets and would combine price increases with innovation when warranted.