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Proctor and Gamble looks for a Trade Reset
Despite a decrease in Trade spending, Proctor and Gamble saw another successful quarter fueled primarily by COVID-19 related buying patterns. Organic sales increased 8 percent, with all top 10 global categories seeing growth.
“We created strong momentum well before the COVID crisis.” COO Jon R. Moeller told investors. “We strengthened our position further during the crisis. And we believe P&G is well-positioned to serve the heightened needs and new behaviors of consumers and our retail and distributor partners post-crisis.”
Coronavirus impacted Proctor and Gamble’s Trade Promotion Strategy
Earlier in the year, I wrote about how National Beverage established the sparkling water category with LaCroix but lost the advantage with a poor trade promotion strategy. Trade is a tricky part of the consumer goods world. Retailers expect that manufacturers will pay for prime shelf placement and other advertising activities. Manufacturers pay because a) they don’t have a choice and b) the activities drive volume that is greater than the cost of the promotion itself.
