Procter & Gamble, a leading consumer packaged goods company, is observing a shift in consumer shopping habits. Some consumers are buying the company’s products in bulk, while others are seeking to spend only a small amount at a time. To address this trend, Procter & Gamble aims to serve customers in the channels they prefer and at the price points they seek. According to Chief Financial Officer Andre Schulten, the company has built strong price ladders across different pack sizes to cater to diverse consumer needs.
The company has identified two distinct groups of consumers: those who buy in bulk, often shopping online or in mass and club stores, and those who are living paycheck to paycheck and seeking low, promoted prices. To meet the needs of both groups, Procter & Gamble is optimizing its product offerings and pricing strategies. The company is also focusing on providing competitive options for customers who want to trade up or trade down within its product categories, such as laundry detergent and cosmetics.
In addition to adapting to changing consumer habits, Procter & Gamble is undergoing a restructuring effort to enhance its agility and efficiency. The company plans to eliminate 7,000 non-manufacturing roles, which represents 15% of its current non-manufacturing workforce, and equip the remaining staff with new technology and data. This effort aims to enable a more agile and accountable organization, reduce internal work processes, and increase capacity to deliver superior propositions to customers.
Procter & Gamble is also preparing for the emergence of agentic commerce, a technology that enables companies to understand consumer behavior and preferences. Schulten views this development as an opportunity for the company to leverage its data infrastructure, consumer understanding, and collaboration with retail partners to communicate its brand proposition effectively. With its 187-year history of adapting to changes in consumer behavior and technology, Procter & Gamble is well-positioned to navigate the evolving retail landscape and capitalize on new opportunities.
Overall, Procter & Gamble is committed to serving its customers in the channels they prefer, at the price points they seek, and with the products they want. By optimizing its product offerings, pricing strategies, and organizational structure, the company is poised to thrive in a rapidly changing retail environment. As Schulten noted, “I think the right answer to the environment we’re in is to serve the consumer where they want to shop and with the cash outlay and the value tier that they are prepared to go after.”