Client: Procter & Gamble

Establishing sustainable consumption as the new industry norm

Developing solutions for evolving consumer trends with Procter & Gamble

The Fast-Moving Consumer Goods (FMCG) industry is a thriving and highly competitive sector. With rapidly changing consumer preferences and behaviors that vary across diverse demographic segments, succeeding in the FMCG industry require a strategic understanding of key consumer trends, competitive forces, and growth opportunities.
The FMCG market encompasses a wide range of products, including food and beverages, personal care items, household goods, and over-the-counter pharmaceuticals. In 2023, the Beauty & Personal Care market is expected to generate over $500 billion in revenue alone, with an annual growth rate of 3,80% between 2023 and 2027. Despite contradicting trends in other consumer markets, physical store sales are still expected to account for more than 70% of the total revenue in the Beauty & Personal Care market in 2023, compared to online sales.

Striking a balance between consumer demands and value propositions

One of the primary drivers shaping the strategic landscape of the FMCG industry is the evolving consumer demand for convenience, quality, and value. Time-constrained consumers seek products that offer convenience in terms of accessibility, packaging, and usage. They increasingly prioritize the quality and health benefits of the products they purchase, demanding transparency in ingredient sourcing, sustainable practices, and ethical manufacturing processes. Consumers are also growing more concerned about the environmental impact of their purchases and expect companies to adopt sustainable practices throughout the value chain. Balancing these consumer demands while delivering compelling value propositions poses a significant strategic challenge for global FMCG companies.
At Procter & Gamble, environmental sustainability is deeply ingrained in their business model, as they are committed to improving the lives of the people and the planet. In September 2021, Procter & Gamble announced an ambitious goal to achieve net-zero greenhouse gas (GHG) emissions across its operations and supply chain by 2040. Their Climate Transition Action Plan encompasses the entire lifecycle emissions of P&G products and packaging, including operations, consumer use, and product end-of-life.
P&G partnered with Krukow to develop new industry standards for package designs as well as in-store point of sale (POS) materials, space management, and digital prompts, with the intent of increasing consumer conversion to refillable personal care products.
P&G’s pursuit of the development of industry standards for refillable personal care products revolved around three main in-store interventions
Creating in-store point of sale materials
Engage and drive consumer behavior
Optimizing space management
Create visibility and consumer awareness
Utilizing digital prompts
Help consumers adapt to sustainable behaviors

Industry standards driving conversion and revenue growth

The introduction of new industry standards, specifically in the form of effective package designs like refillable personal care products, has significant impacts on both conversion rates and revenue. By investing in innovative and user-friendly refill systems, P&G is taking a leading role in reducing greenhouse gas emissions associated with packaging waste. Additionally, these refillable products enhance customer satisfaction by providing convenience and sustainable options, which in turn foster long-term brand loyalty. P&G’s commitment to sustainability not only aligns with consumer values but also positions the company as a pioneer in reducing environmental impact while meeting customer needs.
The solutions in the project created impact in 3 different ways
Long-term brand loyalty
By actively addressing environmental concerns and simultaneously creating value for their customers, P&G build trust and loyalty among eco-conscious consumers

“The behavior change solutions developed by Krukow created a foundation upon which we can increase conversion and increase sales to sustainable products moving forward”

Emily Overton, R&D Vice President Hair Care at Procter & Gamble
The project exemplifies the dynamic nature of the Fast-Moving Consumer Goods market. As the industry continues to evolve with shifting consumer preferences and increasing demands for sustainability, it is crucial for FMCG companies to adapt and innovate. Aligned with the rising consumer awareness and demand for eco-friendly choices, P&G is dedicated to inspiring consumers to adopt to sustainable alternatives. In the ever-evolving FMCG landscape, companies that embrace sustainability, prioritize consumer preferences, and pioneer innovative solutions are poised for success.

Niels Ebbesens Vej 19

1911 Frederiksberg C