fbpx

FMCG

Global FMCG giant says it faces significant supply chain pressures

By our News Team | 2021

Proctor & Gamble, one of the world’s biggest advertisers, is increasing product prices to help offset rising costs but won’t cut its adspend.

Global FMCG giant Proctor & Gamble (P&G) says it is facing heavy pressure on its global supply chains and, as a result, is trying to offset the increased costs in various ways.

These include increasing product prices to consumers and re-evaluating its advertising strategies. While it won’t cut is adspend, the company intends to prioritise different advertising channels.

FMCG

Procter & Gamble via Wikimedia Commons

Discussing its first quarter earnings this week, P&G said inflation and higher costs for producing and shipping goods had impacted profits. Although revenue for the quarter was ahead of expectations, it warned supply chain pressures would weigh heavy on its performance in the year ahead.

The company has already raised prices in some product categories, such as baby care, but confirmed more were on the way in its beauty, oral care and grooming categories as it struggles with rising commodity costs.

Marketing strategy will be adjusted

These negative pressures will ill also impact its advertising and marketing strategy for the immediate future.

P&G is said to be the biggest FMCG advertising spender in the world, and while other brands cut or halted spend through the pandemic, it maintained its investment into brands. In the year to June 2021, spend was up 12% to $8.2bn. In this first quarter, marketing spend was up another $130m.

The company’s Chief Financial Officer, Andre Schulten, justified the ongoing costs by saying consumers were turning to trusted brands and premium products, and with hefty marketing efforts it has been able to capitalise on that shift in behaviour and cement its superior positioning to ensure its products are still in demand as prices creep up post-pandemic.

Schulten emphasised that P&G will continue to invest in marketing and promotions. “As long as we create good ROI we will continue to invest,” he said.

View all articles »

PUBLICATIONS

Strategic Marketing for Africa Magazine

CONTACT INFORMATION

info@africanmarketingconfederation.org

Upcoming Events

AMC CONFERENCE

Dr Kin Kariisa

Group CEO - Next Media

Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

  • Other current and previous roles played by Dr Kin Kariisa:
  • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
  • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
  • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
  • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
  • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.