Marketer of the Year: A interview with P&G's Deb Henretta

Henretta was selected in recognition of her dynamic leadership and vision at P&G. The division pulled in US14 billion in revenues last year. Here, she talks about the challenges of the past year and her expectations for 2010. 

What for you was the biggest business challenge in 2009?
Maintaining steady growth despite shrinking markets sizes and declining consumer confidence. I believe the key to “winning in tough times” is to focus on the fundamentals — stay the course strategically, focus energies on winning the consumer value equation though the right combination of price and performance and find smart, cost effective ways to continue investment in innovation. While it is easy to cut innovation investment in tough times, it has an impact on the future and in fact is probably the most important thing needed to ensure future growth.

How did P&G overcome this challenge?
We got to terms with the recession very early on, looked back at the 1997 financial crisis learnings and then charted the course that would get us through the downturn. We focused strongly on our basic strategic direction, redoubled our efforts to get the consumer value equation right through balance of performance and right price. We were also incredibly transparent with our employees. We kept them motivated through the downturn with regular town hall meetings and consistent and principle-based communication. We celebrated success stories from across our business in Asia despite the challenging conditions. All of this had a very positive effect on our people and they came up with even more outstanding marketing and communication programmes and interventions to ensure success for us in Asia.

How has this recession changed the P&G consumer in Asia?
Throughout last year, we found consumers lost a bit of confidence in spending and this caused some of our markets to contract a bit. On occasion, this caused consumers to trade down to lower priced products or stop buying some products all together. The good news is that we are already seeing a rebounding of market growth in Asia. That is good for the consumers, and good for business and good for the country economies.
How has the downturn affected P&G’s approach to branding and marketing?
We have a proven brand building model that has served us very well in good times and in bad. It has helped us grow a successful 172-year old, US$80 billion-plus dollar company that houses 23 billion-dollar brands. We do, however, find that in tough economic times, we have to shift a bit more focus in the consumer value equation, particularly making sure that we have the right price for the performance we are offering. We are finding that, regardless of the economic times, we need to be adapting our brand-building model to move with changing times and changing consumers. This is particularly important as Gen Y becomes a growing part of the workforce and consuming public. We are also placing more attention and investment on interactive and social media.

How has the downturn affected your expectations of business partners such as advertising and media agencies?
I have always been a big believer in strong and active agency partnerships — in good times and in bad times. I think our partnerships must evolve to reflect the changing times and changing consumers. Our agencies are also our ambassadors. What I am looking to the agencies for is to help us ensure our marketing efforts are purpose inspired and are addressing all the new media channels and avenues consumers have at their disposal today.

I believe strongly that it is through these strong agency partnerships that brilliant breakthrough marketing is born. I have very high expectations for the kind of breakthrough business that can result from these partnerships. I am watching Vick’s build business build behind our ‘Unmissable moments’ campaign. I am seeing similar results behind the ‘Biker’ campaign for Herbal Essences in Australia and the Gillette ‘To shave or not to shave’ campaign in India. I want even more of this, more consistently across our core brands in Asia.

What has been your greatest achievement in the last 12 months?
Professionally, my greatest achievement in the past 12 months has been ensuring continued growth for P&G’s Asia business despite the economic downturn and seeing how this positively affects the lives of several thousand employees in Asia. I am also very proud that our purpose-driven brands are truly touching and improving consumer lives. The PuR powder and Downy Single Rinse are great examples of this.
Another important achievement for me was receiving the US Government appointment to the APEC business advisory council where I am able offer my business perspective and influence government direction on significant world issues ranging from trade facilitation to food and energy security to climate change.

What are your expectations for 2010?
I am hoping to see continued positive growth trends emerging in Asia, which will allow the region to become a growth engine for the world. There is so much incredible possibility and potential in Asia. We just need to continue working to leverage this potential with consumer relevant, sustainable innovation and consumer-inspired brand building. And we need to do this in a way that continues the P&G legacy of touching and improving lives now and for generations to come.