Jean Foster
Good morning everybody and welcome to day two of ces 2020 Welcome to our next session on the CES storyteller stage. And for those of you who came to the sessions this morning, welcome back. My name is Jean Foster. I'm the Senior Vice President of Marketing and Communications here at CTA, the organization that puts on this little party called CES. As part of our remit and the organization, we really focus on how we drive the tech industry forward. And one of the exciting announcements that we made yesterday on our CES keynote stage was a partnership with the World Bank, we've issued a global Tech Challenge to address key issues and challenges in the world. The first one that we announced yesterday was a challenge on healthcare and finding solutions for health care in East Africa. We're also going to be focusing on another challenge on gender gender disadvantaged. And finally, we're focusing on another one on climate change. So I encourage you all to look out for those in the coming weeks and months. Encourage your technology partners to participate in this and we'll be announcing the winners on Stage next year at CES 2021, which is just around the corner for us. But for me today I'm very excited to announce our next speaker. Mark Pritchard is my brand guru. I've been following him for many years, I got the chance to meet with them and introduce them last year on stage when P. p&g were here as a as an exhibitor there back again as an exhibitor this year, I encourage everybody to go and see their exhibit in the sands is getting great media coverage for all the very cool products that they've got. And I'm thrilled now to welcome Mark back on to stage Mark today is going to be talking about reinventing and the brand and how you focus on the consumer experience. So please join me in welcoming Mark Pritchard, the chief brand Officer of Procter and Gamble company.
Marc Pritchard
All right, well, good morning, everyone. Thank you. You just got a little bit of a glimpse of several p&g brands that are leading constructive disruption by reinventing superior consumer experiences to drive growth. And there's a lot more that happening at p&g these days. Because we know we operate in a perpetual state of disruption. Thousands of startups form every day. Digital Media keeps growing, but trust is eroding. TV reach keeps declining. But over the top streaming services are expanding. Retail is transforming through e commerce. While Omni retailers create new services, including media and entertainment ecosystems, our workplace is getting an overhaul with data analytics and technology dominating how we do business. And think about it. We're still in the very nascent stages of AI, voice IoT blockchain, edge computing 5g in virtual, augmented and mixed reality. If we thought the last decade was transformative, get ready for the exponential disruption coming in the next 10 years. So how do we deal with disruption lead it but a PNG what we're trying to do is to lead constructive disruption. And constructive is a carefully chosen word. Because it's one thing to disrupt and destroy value. And the last decade is littered with value destructive disruptions. But the harder task and we view our job as market leaders is to disrupt In a way that drives growth, and creates value for the consumers we serve, and then the categories in which we compete. See, we compete in household and personal care categories with daily use products, like shampoo and laundry detergent, where performance drives brand choice. And when performance matters, we better perform. So we focus on building leadership brands through superiority on our products, packaging, brand communication, retail execution, and value. We constantly innovate in every element. And we bring them together into an irresistibly superior consumer experience so irresistible, that when consumers try it, they don't want to go back to what they were using before. And when brands do that, they then achieve the highest level of results. growing the market, new users, market share, sales and profit. Note the importance of growing market, that's the highest bar. Superior offerings drive market growth, because they increase consumption, create additional usage occasions bring more spending into a category. This creates sales growth that is typical, more sustainable than taking business from a competitor, which we've all been taught to do for the last hundred years. It creates a positive proposition for retailers, expanding the pie versus a zero sum game. And when a brand grows the market, it grows market share. That's how the math works. That's the definition of constructive disruption. And the reality is what is required to grow stays the same superiority, but how to do so constantly changes. And we intend to be the ones that are leading that change. That's why we're here at CES, which we like to think of as the consumer experience show. We're looking for new ideas, technologies partners, to help us get unstuck. And to lead by reinventing innovation and brand building to reinvent superior consumer experiences. And here's our roadmap, and I'm sharing it openly for your consideration. Because if we all focus on constructive disruption, we can all better serve consumers, and drive sustained market growth for the coming decade. And we're reinventing innovation. Moving from a siloed and sequential approach, focused narrowly on functional superiority to an integrated and lean approach that raises the bar to deliver irresistibly superior consumer experiences. We wanted to light people from the moment they see the brand other phone to when they use it every day. And we're doing this by innovating, how we innovate, innovating faster by combining 182 years of capability with the spirit of a lean startup. In fact, we have more than 180 lean seed stage experiments that are running right now. In fact, many of the innovations that she was See here this year at CES that we brought that are over in the sands that are PNG life lab came through this approach. This approach led to innovations like update, which is inventing a new category of at home precision skincare solutions. This is a sleek, interactive and portable handheld beauty device that scans your skin and through 200 photographs a second detects even small, tonal imperfections, and then applies a precise amount of camouflaging optimizing serum to correct uneven skin tone, and reduce the appearance of spots over time. led to Lumi by Pampers, which is reinventing the baby care experience with the world's first all in one connected care system. Its state of the art video monitor has an activity sensor that gives parents a complete view of their babies sleep feeding and diapering patterns all in one place. 24 seven Lumi transport forum's this data then into personalized insights and tips to support parents as their baby grows and develops. So parents can blend their intuition with real time tracking data so they can see at a glance how their baby's doing, and anticipate the baby's needs while establishing their family routines. An oral B IO toothbrush is reinventing the oral care experience leaving to an entirely new level of superiority by combining the best ever clinical performance with a linear magnetic drive system that efficiently directs more of the cleaning energy to the point of the brushing all the way to every individual bristle. It integrates oral B's unique, oscillating and rotating round brush with these gentle micro vibrations for better plaque removal. So you're 20 times more likely to cover all the surfaces on your mouth. And it has a whisper quiet brushing experience. It combines 3d tracking technology so it learns how you brush and together with the oral reality. guides you across six brushings zones, and 16 different cleaning services to get the best clean that is truly a wow. Go over to the sands life lab right next door, there's a place that you can try it yourself. I guarantee you'll love it. And innovating how we innovate also help solve consumer problems with future tech concepts like in Sherman's go lab that reinvents the bathroom experience. Yes, I know car companies have concepts cars, but PNG has concept bathrooms. For example, you've probably seen the Sharman robot concept that'll bring you a toilet paper roll when you're stuck. So now while this is fun, the important point is that it's inspired by a real consumer problem. Who here has ever been stranded with an empty toilet paper rolling, no help in sight. If you didn't raise your hand you're lying.
Marc Pritchard
The key insight is nobody ever wants to run out. So Well, robot is a concept and a fun one. This lean integration approach that we've taken has already led to a solution that we do have available today to make sure you don't run out, called Sharman forever role, where you can literally go up to one month without changing the role. It's got the equivalent of 24 roles in one role. And you can buy it right now on shop.com. Buy one today. Now there are many more in every category because PNG is reinventing innovation so we can create irresistibly superior consumer experiences for innovating faster, with 182 years of know how, and reimagining the future to create new sources of market growth. Now at the same time, we're also leading constructive disruption by reinventing brand building, from wasteful mass marketing, to precision one to one brand building on a mass scale. We're reinventing media, moving from mass blasting with a lot of waste Mass reach with one to one precision through data analytics and digital technology. Now we started by taking more control. After years of higher media spending with little visibility we had had enough. So we call for industry wide digital media transparency, demanding transparent third party verified data on ad viewability. Audience reach measurement agency contracts and ad fraud prevention, along with brand safety. Now, this first step exposed a substantial amount of waste. So we reduced wasteful spending and reinvested it into better performing media. But we're not done. We're raising expectations again, calling for control over content quality, to avoid violent, unsafe, and even illegally funded content from being seen. or calling for moderation of editorial comments, to eliminate toxic speech that can highlight that can hijack conversation. Common Sense privacy standards that can apply to all industries and data transparency across media platforms to stop excess ad frequency that only annoys consumers and wastes all of our money. As we look to the next decade, we want to create a responsible media supply chain with quality, civility, transparency, and respect for consumer data built in from the very start. We want a media supply chain that's good for consumers, and good for business. We're doing our part by building our own consumer privacy centric and legally compliant database that follows the standards that serve the best interests of consumers. We're developing data choices that are simple, consistently worded and completely understandable. So each person knows exactly what permission they're granting us and what control they have over there data. We like the idea of a nutrition privacy label something that's Simple, understandable and common that everybody can understand. We're looking for a world where consumers trust that all media providers and all advertisers are responsibly handling their data, and offering ways to better engage people in a way they prefer. For example, our current database enables advanced programmatic media buying the finest people with the highest likelihood to buy and then reaches them without annoying ad frequency. China's our most sophisticated market, we have 80% of our digital media bought this way, and 80% of our media is already digital. And because of less frequency, they reduce digital media waste. We're also moving to smart audiences that identify people based on permission based demographic and behavioral characteristics such as those who purchased or sample the product. So we can reach people with one to one precision who are more likely to be interested. For example, last year in the US, la use audiences and they were able to reach 65 million high potential users who are interested, which is more than the generic audience that we've all been using women 18 to 54, which is a very broad audience. And we spent 10% less. And data is also helping us get greater TV effectiveness and efficiency. By analyzing set top box data us tied found they're reaching the same household as many as 22 times a month. That's annoying. So they cut off the excess. And they're now able to place ads with more precision into programs to avoid that annoying experience of seeing the same ad over and over and over again. We're reinventing media to make the consumer experience better, starting with just eliminating excess ad frequency.
Marc Pritchard
The result is better consumers experiences and substantial savings and efficiencies. We're disrupting the definition of the world's largest advertiser. It's not who spends the most, it's who reaches the most people, effectively and efficiently in a way that they want to be engaged. Now reinventing media also leads to reinventing advertising, moving from mass clutter with too many annoying messages to add experiences that are more superior, more useful and more interesting, all the way to the point where consumers actually look forward to seeing them. We're strengthening our core superiority campaigns so we can increase awareness of our brands, product superiority. This is still where more most of our ad dollars are spent. So we're doubling down to communicate how our products and more superior with informative demonstrations of the superior benefits for consumers. People want to see how products work. Like what you see with bounty, the quicker picker upper. we're innovating to make advertising more useful. Believe it or not, even though we have daily use products, many people don't know how to use some of our products to get the best benefit. So we're running educational infomercials. Yes, I said infomercials that communicate what the product is how to use it correctly to get the best benefit and why it's better like this ad for Mr. Clean.
(video audio)
Tired of wrestling with seemingly impossible cleaning tasks using wipes in the kitchen and sprays in the bathroom can be an effective try Mr. Clean Magic Eraser simply add water and use in your kitchen for burnt on food in your bathroom to remove soap scum and on walls to remove scuffs and marks it erases four times more permanent marker per swipe for ineffective multi surface clean use Mr. Clean Magic Eraser brand power helping you buy better.
Marc Pritchard
Okay, now what you're thinking that probably is not going to win any awards that can. That's okay. Because here's the US sales growth showing the lift when this ad aired. There you see it over on the right. And here's the results when I use the same approach with Swiffer and for Brees when they did an infomercial This works. So more brands are doing more infomercials. We're also making ads more interesting by reimagining creativity to merge the ad world with other creative worlds like music and comedy. sk two which is our prestige skincare product, created an entertainment web series where comic genius James Corden, Japan comic namely autonomy. And China actress Tang Wei developed these vignettes that extolled the virtues of patera, which is SK tues key ingredient that delivers superior skin benefits of crystal clear skin this spot, you're going to see the minutes but feature john legend, who wrote a song about patera which he audition for James, Naomi and Tang
(video audio)
Once again, it's never been smooth over to you the magical miracle thing that you do your mandu obsession, my new collection, the powerful absence from SK two. And it's crystal clear. Tara Tara Oh, I like to know, the secret potion. Where did you go? And what did you do with that fermentation that sweet sensation every day, bring something new. And it's crystal clear. This is exactly should be Tara. I don't know. I'm not sure I don't know if it's enough about its era I felt like patera was hardly mentioned in that. I think we need something a bit more on brand. You know, it says K to not SKU game, you know? Sorry, john. It's a good try. It was a nice moment we'll find a better how come up with something
Marc Pritchard
this series achieves 661 million views in six months. led to a 27% increase in search for SK two and double digit new user growth. SKU is also created an immersive augmented reality experience for shopping. It's called future x is an AI supported shopping experience with personalized recommendations based on smart scans of your skin, browsing on virtual shelves, and shopping through the wave of a hand. And when you get SK to home, it has smart packaging with IoT technology embedded in the cap, along with a companion app for personal, personal skin cut Care Tips every day. Why do I show you this? Because with immersive experiences like this, we can see a future where technology replaces ads all together. We're on the edge of a great creative revolution, where we can imagine a world without ads as we know them today, through the intersection of multiple genres that create useful and interesting experiences. While still reinforcing superiority. reinventing advertising means also reinventing partnerships. Moving from brand people outsourcing too much of their work to brand entrepreneurs with their hands on the keyboard. We're reinventing agency partnerships, discerning where work should be done. For example, PNG people are already doing more media planning. With nearly 30% of our media spending already planned in house. We're also implementing what we call a fixed and flow creative agency model with a fixed amount of work at a trusted core partner with experienced creatives, supplemented with a flow to the work approach through flexible sourcing from smaller, more agile shops. And this has also led to our core agency partners reinventing themselves. For example, gray Midwest, and publicist. Angeline are building their own small shops and their co locating with our brand teams so they can work in real time. This is collaboration Creativity from months to hours. And we've created an entirely new model that brings multiple agencies together into one integrated team called wolven. We're also bringing more creative and production in house. Secret, for example, has no agency of record. They're now creating a producing as for as little as a 10th of the cost and in one month versus five. Here's one example. case you forgot
Marc Pritchard
Now that was shot in Cincinnati, the opening scene was in PNGs home office, the producers, the associate brand director, the brand managers, creative director, but most importantly, it's winning in market. Secret sales have consistently grown mid single digits since they started in sourcing their creative work. We're also reimagining creativity through new creative partnerships with the film, music, comedy, sports, tech and journalism worlds. For example, Katie Couric media has produced several programs with PNG leveraging her tremendous journalistic credibility. We partner with Queen Latifah and Tribeca studios to create the Queen collective that highlights important social issues, while also building a pipeline of multicultural women directors. We launched a series called activate, which is a unique partnership with National Geographic and global citizen that tells inspiring stories of efforts to eliminate extreme poverty with the actions of our brains. organically integrated and stay tuned for some breakthroughs in 2020. Starting with the Super Bowl, and about a month, reinventing partnerships has not only helped us save a billion dollars over the last five years, it's leading to transforming our culture with more creativity, agility, and entrepreneurship. Now, finally, brands have a responsibility to society. So we're reinventing brand citizenship, by moving from brands that are all about themselves to brands that are a force for good and a force for growth. consumers want to know more about what brands believe in these days, they will know their values and their views, and their buying on the basis of shared beliefs. That's why we use our voice in advertising to promote equality. equality is limited by bias. And the portrayals of people on advertising embed memories into our brains that form bias. So we strive first and foremost, to accurately portray all people Cross gender, race and ethnicity, sexual and gender identity, ability, spirituality and age, and accurate portrayals not only helped mitigate bias, it's also been proven to improve our effectiveness. We also periodically take stands on brand relevant issues. For example, after literally changing the meaning of the phrase like a girl always is now focused on ending period poverty in 10 countries where Believe it or not between 10 and 20% of young women miss school during their period because they can't afford adequate period protection.
(video audio)
School is full of lessons and when you miss a day because you can't afford protection, when you're worried leaks will show and tissues overflow. So much more than mass is missed. Its friendship missed keeping up Missed confidence messed self respect missed discovering you could be anything you want to be missed. Learn the failure is just a bump in the road missed. You love missed not being afraid of your body as it goes up missed. Girls who can't afford protection should never have to give this up because school is full of lessons and they shouldn't be mixed.
(video audio)
Together we can help end period poverty. Now when you buy always protection, we get product to help keep girls in school. He's got me always,
(video audio)
always already donated 50 million pads and just committed to donate another hundred million pads in the next two years and they're just getting started. Now in addition to always, Oles face anything shatters gender myths. Ariel inspires men to share the load by doing laundry. Gillette role models the best man can be for the next generation and PNG promotional conversations about racial bias. First with the talk. And now with the look that shines the light on the bias that black men face every day in America, yet still rise to overcome
Marc Pritchard
Why don't we do this work? We're the world's largest advertiser, we reach 5 billion people on the planet every day with our advertising. We have both an opportunity and a responsibility to use our voice responsibly. And work like this creates conversations and conversations leads to understanding. Understanding leads to empathy, and empathy leads to attitude change and ultimately action to eliminate bias. We're also using our brands to promote environmental sustainability through innovations like tide cold water cleaning that reduces energy usage bottles made from recycled beach plastic and recycled materials to help end plastic waste, and products mais to use entirely without water to help end the water crisis, all designed to promote responsible consumption just by using them. But accelerating progress in the next decade requires collective action. And that's why we're part of the hashtag see her movement to promote the accurate portrayal of women and girls in advertising and media. The hashtag see all multicultural movement to promote the accurate portrayal race ethnicity, sexual and gender identity, ability, spirituality and age, free the work. So we can get women and underrepresented voices behind the camera to achieve equality in the creative supply chain. Hashtag brands for goods promotes sustainable behavior and lifestyles and innovation, and the Global Alliance for Responsible media. So we can eliminate toxic content online, please join. Because these industry wide efforts bring all of our voices together. And that has a greater impact. And they also make citizenship good for society and good for business. For us, we spend a small amount of money on brand citizenship, but it's amplified because it's creative and it's relevant. And most important, multiple brands have delivered growth Bitcoin behind a quality and sustainability initiatives, demonstrating that they can be both a force for good and a force for growth. So there you P G's roadmap to leading constructive disruption by reinventing innovation and reinventing brand building to reinvent superior consumer experiences to drive growth and value creation. disruption is everywhere. And the next decade will bring exponential changes in innovation and the greatest leap forward and creativity that the world has ever seen. We welcome it. We're looking for ideas. We're looking for technologies. We're looking for partners. And most of all, we're looking forward to leading constructive disruption with all of you. Thank you.
Jean Foster
Thank you, Mark. That was a great session. I told Mark earlier backstage that whenever I see him speak or he runs any of those ads always makes me cry. So I'm glad he didn't make us cry too much today. We're going to be just taking a short break and we'll be starting the next station with Pinterest and HP in about five or so minutes. So please please stick around and keep your seats and we'll be back on stage in a few minutes.