Procter & Gamble, the consumer packaged goods manufacturer, believes that a variety of habits that have taken root during the COVID-19 pandemic will have long-term staying power.
Why it matters
The COVID-19 pandemic has boosted demand for household, health and hygiene goods, but marketers in these sectors need to understand which behaviors might endure, and those which are temporary in nature.The key insight
Several months of lockdowns, anxiety surrounding personal health, and occasional product shortages have led to a demand spike in a variety of P&G’s major categories, providing a boost to offerings from Tide laundry detergent and Ivory soap to Gain dishwashing liquid and Febreze air fresheners. (For more, read WARC's in-depth report: Procter & Gamble outlines new consumer habits that will survive the pandemic.)
“Those increased levels of consumption are accompanied in many cases by new habit formation or habit strengthening,” Jon Moeller, P&G’s chief operating officer and chief financial officer, explained on a quarterly earnings call.
”Unfortunately, we've not been at this for four weeks or eight weeks where … behavior might snap back to pre-crisis levels. We've been at this on a global basis, even in the US, for a year. And that does tend to form habits, which means some higher level of consumption should continue to occur post-crisis.”
- While people will revel in freedom from lockdowns, the comforts of home are set to have an even greater importance than before the crisis.
- Health and hygiene is an area where consumers have necessarily placed greater focus due to the spread of Coronavirus, and this habit can be expected to outlast the pandemic.
- For a house of brands like P&G, categories that have struggled during the peaks of COVID-19 could be critical to driving post-crisis growth, when pent-up demand is unlocked.
Sourced from WARC