Shailesh Jejurikar, who became Procter & Gamble's chief executive in January, discussed the challenges of maintaining brand loyalty as prices climb. In an interview at the company's Cincinnati headquarters, he highlighted three major changes: media fragmentation, evolving retail landscapes, and inflation affecting consumer value perceptions.
P&G's sales growth has slowed as lower-income households turn to cheaper store brands. To counter this, the company has raised prices and cut 7,000 jobs. Jejurikar emphasized that innovation is key, including using A.I. to develop new product formulas faster.
On pricing, he said increases will be nuanced, going brand by brand and item by item. He noted that lower-income consumers often value performance highly, as failure isn't an option for them. Loyalty must be earned daily through superior performance.
Jejurikar stressed absorbing costs where possible through productivity gains, such as optimizing truck routes and manufacturing efficiency. He also mentioned improved scenario planning for volatile oil prices, preparing for both $70 and $110 per barrel scenarios.
Source: New York Times Business · Summarized by HeadlinesBriefing