""I don't think we've lost pricing power. I think pricing power has to be earned—and the way to earn it is to combine pricing with a truly delightful experience for the consumer.""
""Consumers respond well if we give them a truly better proposition in the categories we are in because they see there is upside.""
""For Tide, P&G recently introduced what it described as the biggest formula upgrade in 25 years, holding the price steady while improving performance.""
""Either pick the innovation with a bit of pricing and the promise of better performance, or stick with what they know.""
Procter & Gamble has historically promised premium products based on superior performance. However, rising inflation has made consumers more price-sensitive and less loyal. CFO Andre Schulten emphasized that pricing power must be earned through delivering delightful consumer experiences. The company is shifting from broad price increases to innovation, exemplified by Tide's significant formula upgrade, which maintained price while enhancing performance. This strategy aims to balance protecting margins with consumer retention, offering options between innovative products and familiar choices.
Read at Fortune
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