Constructive Disruption Across the Value Chain

Success in our highly competitive industry requires agility that comes with a mindset of constructive disruption — a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future.

Constructive is a carefully chosen word. It’s one thing to disrupt and destroy value. It’s another thing to disrupt in a constructive way that drives market growth and creates value for retailers, investors, employees and consumers alike.

We must lead the constructive disruption of our industry across all areas of the value chain, including but not limited to how we innovate, how we build brands, how we run our supply chain, and how we use digitization and data analytics.

This mindset of constructive disruption has been particularly important to overcome the challenges of working during the pandemic. Here are a few examples.

The foundation of everything we do is the consumer, and we’ve increased the use of virtual consumer research — doing customized research with more than 250,000 consumers virtually since early February to sense and understand shifting consumer needs.

We’ve advanced our supply network capabilities to support consumption surges to serve consumers for an extended period of time. Some of the changes we made will be built into how we work in the future, including shipping directly to customers when needed and accelerating the use of data platforms and machine learning capabilities to better understand consumer consumption and raw material availability.

We’ve developed innovative new ways to create consumer communications with smaller teams, with more internal and external collaboration, and at fractions of the time and costs of traditional methods.

We’ve accelerated digital capability and learning, and we’re using the power of technology to enable faster business decisions and results. Decisions that used to take weeks now take days, and decisions that used to take days now take hours.

Constructive disruption is important in any environment and even more so in the environment we’re currently operating in — requiring an ongoing mindset of constructive disruption and disruptive possibility.

CONSTRUCTIVE DISRUPTION AT P&G

In a world with a rapidly changing retail environment, quickly evolving consumer needs, media ecosystem transformation and revolutionary changes in technology, we’re leading the constructive disruption of our industry. Here are just a few examples:

INNOVATION

INNOVATION

P&G is embracing lean innovation, acting with the speed and agility of a startup to create the future. We combine robust, consumer-based insights with breakthrough science that is inspired by how people live, work and play — both in our core business and in new areas. One such innovation is OPTE, a handheld beauty device from our P&G Ventures startup studio, which digitally scans your skin, detects age spots, sunspots and hyperpigmentation and precisely corrects them by immediately camouflaging them and fading their appearance over time.

BRAND BUILDING

We’re reinventing media using precision tools like propensity modeling that help us understand where a consumer is on their path to purchase, letting us reduce spend while increasing our reach. And we’re reinventing advertising by bringing some advertising creation and media planning in-house — such as on our Secret brand — providing complete control and flexibility for as little as 1/10 the cost and less than 1/3 the time of traditional executions.

SUPPLY CHAIN

We’ve advanced our supply network capabilities in the face of the COVID-19 crisis, and we’ll build some of these changes into how we work in the future. This includes shipping directly to customers when needed, and accelerating the use of data platforms and machine learning to better understand consumer consumption and raw material availability.

Digitization

Digitization icon

DIGITIZATION &
DATA ANALYTICS

In the U.S., Europe, Latin America and Asia, we’re using data and analytics to better ensure we’re in precisely the right stores — down to the neighborhood level — with the right shelf sets, placement, sampling and marketing — resulting in a better consumer experience and category growth.