Superiority To Win with Consumers

Within our 10 categories we’re creating superior, science-based products delivered with superior packaging, consumer communication, retail execution and value in all price tiers where we compete. This is the basis for competitive advantage — meaningful and noticeable superiority across all elements of our consumer proposition. Superior offerings drive market growth, creating a winning proposition for all concerned.

Superiority is a high bar. Our products must be so good that consumers recognize the difference. Our packages must be attractive, convey brand equity and close the sale. Our communications must create awareness, demonstrate superior performance, and create the desire to purchase. In stores, our retail execution must include the right product forms, sizes, price points, shelving and merchandising execution. Online, our retail execution must include the right content, assortment, ratings, reviews, search and subscription offerings. Finally, our consumer value equations must represent a good value of the total proposition, and for customers, include important items like market growth, penny profit and margin.

We continue to raise the bar on all five vectors of superiority because when we’re superior on at least four of five, we more consistently drive market growth, sales, profit, household penetration and value share.

P&G recently received two honors that recognize the progress we’ve made. The Cannes Lions Festival of Creativity named us the #1 Brand Marketer of the Decade, and Target recognized us as their supplier of the year, across all product categories.

We’ve made investments to strengthen the superiority of our brands, and we’ll continue to invest to extend our margin of advantage and quality of execution, improving options for consumers around the world.

Together, these five elements drive category growth, help prevent commoditization and provide the basis to build sustainable competitive advantage.

SUPERIOR PRODUCTS

Products so good, consumers recognize the difference. Superior products raise expectations for performance in the category.

NOTICEABLE SUPERIORITY TO WIN WITH CONSUMERS

In 2017, we raised the bar on all aspects of superiority, in all 10 of our categories. With this new standard in place, we assessed our portfolio and found only 30% to be superior across all dimensions. Today, more than 70% of our portfolio is judged as superior — and we’re making continuous improvements to respond to consumer needs, improving options for consumers around the world.

Let’s look at how this comes to life in Home Care, where since fiscal 2018 we’ve driven about 60% of global category market growth and step-changed organic sales growth from low single digits, to high single digits, to double digits in fiscal 2020.

Click on the arrows to the right to see more examples of P&G’s superiority across categories.

SUPERIOR PRODUCTS

DAWN POWERWASH

The unique spray technology and superior formula of Dawn Powerwash provide powerful suds that cut grease on contact. Priced at a premium to regular Dawn, Powerwash is driving growth in the Hand Dish market category and contributed to the 1.5 points of share growth of Dawn in the U.S. in fiscal 2020.

SUPERIOR PACKAGING

FEBREZE SMALL SPACES

Febreze Small Spaces is activated with the click of a button and eliminates odors for up to 45 days. The sleek packaging blends into the décor of any room in the house. First launched in Japan and now in the U.S., it has helped drive fiscal 2020 share growth for the Febreze brand of more than two points in Japan and one point in the U.S.

SUPERIOR BRAND COMMUNICATION

CASCADE

Superior brand communication can drive sustainability and grow markets. Cascade launched a campaign with hard-hitting facts that tackle the top myths limiting dishwasher use. The campaign helped the Cascade brand grow organic sales in the mid-teens in fiscal 2020 — and is helping consumers save water.

SUPERIOR RETAIL EXECUTION

SWIFFER

Swiffer gave more visibility to the product and established clear vertical blocks on shelf for Swiffer Sweeper, Wet Jet, Dusters, Heavy Duty and Pet — differentiated by color and signage to help the consumer choose the right product for them. First in the U.S. and most recently in Europe, this strategy helped increase fiscal 2020 sales by double digits in markets where executed.

Microban

SUPERIOR CONSUMER
& CUSTOMER VALUE

MICROBAN 24

In February we launched Microban 24, with antimicrobial technology that keeps killing bacteria for up to 24 hours when used as directed. It helps keep homes clean and sanitized — providing value with a new benefit for consumers and a new addition to the category for retailers.

Microban 24 is effective for 24 hours against Staphylococcus aureus and Enterobacter aerogenes bacteria. Microban 24 does not provide 24-hour residual virus protection.

VARIOUS STATEMENTS IN THIS ANNUAL REPORT, including estimates, projections, objectives and expected results, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are generally identified by the words “believe,” “expect,” “anticipate,” “intend,” “opportunity,” “plan,” “project,” “will,” “should,” “could,” “would,” “likely” and similar expressions. Forward-looking statements are based on current assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from the forward-looking statements, including the risks and uncertainties discussed in Item 1A – Risk Factors of the Form 10-K/A included in this Annual Report. Such forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise publicly any forward-looking statements, except as required by law.