Chloe Popescu 

Which will include a panel from Procter and Gamble on using connected data to transform consumer behavior. The near will discuss collaborative driving and the future of trust in mobility. And the MPD group will outline just how 5g will and will not affect the future. All the presentations you see today will be live streamed and available online after the fact at CES dot tech slash livestream. For sessions with q&a segments, please use a standing mic in the center aisle. I'd now like to welcome Procter and Gamble's chairman of the board president and CEO David Taylor to the stage for opening session, transforming routine habits into meaningful consumer behaviors.

 
David Taylor 

Morning, everybody, morning. It's a pleasure to be here. And I want to welcome you to the research summit. We'll talk a little bit about how we're learning from consumers to develop innovation that really does touch and improve consumers lives. But let me start with just a couple seconds about P&G. Hopefully you all heard of us. Hundred 82 years old, based in Cincinnati, and interesting fact is almost 5 billion consumers. We use the p&g brand this year over half the world's population. My hope is many of these brands are in your homes. Many of you probably use this morning, crest or will be tied Pampers Don Gillette Vicks Swiffer, Sharman, a Les Brown and many others. Each one of these brands starts with a consumer insight a consumer product Dissolve that addresses tension in their lives that leads to an innovation, a job to be done that improves lives in meaningful ways. You can see some of these innovations in our life lab at the sands. This is our second year CES, and let's watch a short video highlighting some of the things that you'll see when you get there.

 
David Taylor 

You saw a lot of technology in there but in the age of technology is still critically important that we start with people. Nothing replaces the benefit of getting to know consumers on a human level. The way we do that one of the research methods that we still use is going in homes and shopping with consumers we do that we don't go as a P&G person or as an executive, we go as a researcher, I probably been in homes in more than 25 countries. When we do that, we learn about the consumer how our brands fit in with their lives. We understand their hopes and dreams. And in doing so they'll show us around their home, we go in the kitchen, we open the cabinet and pull out products. What is this for? How do you use it, we use show me and in doing so we really understand how it fits their life. And out of that we have empathy for the consumer we understand and then translate that into meaningful insights. And the insights then lead to really breakthroughs. There's a great example that I want to give on for Greece. For braces, their care brain was developed in the late 90s. In fact, we have in here one of the inventors or for Brees call run that brand grew in many countries and one of our biggest markets was in Japan. In Japan, the brand new flattened down and so we wanted to understand what it would take to accelerate growth with for Greece especially the Fabric Refresher part of it, which freshens up fast bricks. And what we did is we as researchers go in homes and these are p&g people. And they went around with some Japanese moms that were cleaning their house and they had a little caddy that they kept all their cleaning supplies. And she'd go in the bedroom, pull the sheets off, and then she'd spray the mattress with four breeze to clean around accounts, then spray the counts with this Reese fabric pressure. And what she was communicating this you wish he could watch these things, but can't and she was using the fabric professor to eliminate the owners and leave a scent. We took that insights and it generated a tremendous campaign. The campaign was called I wish I could wash. We ended up airing over 30 pieces of advertising. It traveled from Japan to ASEAN countries, and it became the best scoyne ad we had in the US and grew the whole category and grew the brand because it opened the mind of the consumer to consider different uses of the brand. But it was discovered because a couple people observed as researchers how the product was being used in homes it wasn't called Now through quantitative research, it was an observational in home. And it built the business. observing people in action is critical. Because what people say is often different than what they actually do. Behavioral Science helps us determine what is really driving that behavior. Now at PNG, we talk a lot about constructive disruption. We're disrupting almost everything we do in a constructive way to create value for all our stakeholders, constructively disrupting the way we innovate the way we build brands, but also the way we gather and use consumer data. Through analytics and machine learning. We can use technology now to capture much more accurate and granular data. In the past for doing a laundry study would ask the consumer to track their laundry routine, how often do you still wash clothes? What's the weight of the load the temperature of the water today with their permission, we can put cameras in the laundry room, and then actually observed the usage. And in doing so over time, we realized many things that gave us insights This data is much more accurate and precise. And we actually have the behavioral based data that allows us to change formulas for packaging to better delight consumers. We then can use artificial intelligence to analyze the data that we gather and identify patterns and insights that would not otherwise be accessible. We use technologies that many of you aware of Hadoop, Spark, Python, TensorFlow, to name a few. We also now use geo analytics to look at data at the neighborhood level, to find consumers who are similar in demographic, demographics and purchase behavior. This leads to better consumer understanding. And from that we can better optimize the distribution and merchandising and even the communication on a very local level, to talk to consumers when and where they're receptive. To the topic, we using crowdsourcing and AI to better analyze retail performance. Many years ago, I lived in Greater China spent three and a half years there with my family. One of the big challenges was understanding are we Retail performance. In many stores, there's probably 40,000 stores we're trying to keep track of, of the many million stores that are in China. But it was very difficult. We couldn't cover all those stores. Today, we have consumers and shoppers take pictures of the shelf and the end cap, we upload over a million photos every month, geo tagged and timestamp to make sure that are accurate. And from that we can analyze using image recognition software to get accurate pictures of the execution and our sales people can follow up with our distributors and partners. And we've seen a meaningful acceleration of our China business. We can use anonymized consumer behavioral data and advanced machine learning algorithms to do precision marketing. In the past, we may have a target of consumers or women 18 to 49 a broad target. Today we have 350 Smart audiences and they're very narrow cohorts that we can give precise messages to it may be first time Parents, first time washing machine owners, or people that just move. Several examples though, we're developing smart products that help us understand consumer usage behavior and provide personalized recommendations. One of the best examples is a lay, or skin advisor. Artificial Intelligence powered system enables you to take a selfie of your face, get the skin diagnosed to get your skin age versus your actual age. And then from that we can recommend a skincare regimen and give some advice to help you improve your skin. And the algorithm gets smarter with every selfie that we take up to a brand that you can see over the sands and our life lab, combined optics, proprietary algorithms, printing technology and superior skincare ingredients only one device it can scan, detect and correct hyperpigmentation with precision application applying peeker leaders of effective ingredients 200 images per second, precise amounts. masking perfections improves the quality of the skin over time. Please go check it out and sands it's really an amazing product. The real magic occurs when combined the two and in depth understanding of the consumers a person in their family, along with all the data that we have using advanced analytics machine learning. To bring it all together. It allows us to experiment test and learn faster, leading to better innovations that deliver meaningful consumer benefits. One last example I'll give is in the dishwashing category, cascade is the leading dishwashing detergent, automatic dishwashing detergent. It's grown but one of the issues is consumers still pre wash their dishes because they don't believe the dishwasher will get them clean. People would say they're not pre washing but again with their consent we put cameras in many kitchens and consumers just had the habit they read solve it and almost clean it before they put it the dishwasher. I see many nods in here. They don't trust the dishwashing detergent or it's just a habit. We use that insight, along with an interesting technique to communicate that the other change because the opportunity is tremendous one, it's slow, you're wasting 15 gallons of water. If you pre wise, if you take all the people that pre washed in the US it's 100 billion gallons of water. This wasted, it could say by using your dishwasher, so we improved the formula with cascade Platinum that you'll see an interesting spokesperson to communicate to mom about the need to change the behavior. What's this fruit please?

 
Video Audio

Okay, so my mom washes the dishes before she puts them in the dishwasher and the kind of gross she washes them again. So what does the dishwasher do? New cascais Platinum lets your dishwasher be the dishwasher. These new action packs pre wash soap and scrub top stuck on the first time. Wow, that's clean. less work for my mom. You cascade platinum, nothing cleans better.

 
David Taylor 

At a summit up through consumer insights, were able to develop better consumer experiences more effectively and efficiently meet consumers needs and meaningfully improves consumers lives. Now, there's a terrific example in our healthcare business and I'd like to invite Steve Bishop, the CEO of our healthcare business to share that with you. Thank you.

 
Steve Bishop 

I'd like to start by thanking all of you for coming and being with us today. So as David said, I lead our consumer healthcare business at P&G, which is a terrific round to work in. I love working at it because there's such an opportunity to make positive impacts in not only people's day to day habits, but the the quality of their life so they can do the things they want. As I'm sure you all relate, everybody in this room, all of us, we all want to live longer lives to Today, but we also want to live more vibrant lives things, so that we can do the things we want to do and do them much longer into our lives. Unfortunately, what people want and their day to day behaviors towards that don't always match and will. I'm going to talk a bit about that and come back to that in a minute. So let me start with just a few somewhat jarring facts about the state of people's oral health care. Around the world, there are two and a half billion people who are living with untreated tooth decay, two and a half billion people. In the US alone, over 50 million people have untreated tooth decay. And somewhat shockingly, in the US, about 25% of people will lose all of their teeth by the time they're 65. Now unfortunately, all of this starts in childhood. So among kids six to 11 in the US, about half have some kind of tooth decay. And what we know is that children that have tooth decay in their baby teeth are four times more likely To have decay in their adult teeth when they get older. Now, the impact of this is extremely significant in the US there are 34 million hours of school lost every year due to these issues. And in the UK, really unbelievably, the biggest cause of hospital admissions in the biggest hospital procedure amongst kids, six to 10 is tooth extraction, and nine of 10 of those could have been prevented. So our mission is to make a difference here now the these problems go beyond teeth, it also affects people's gums. gums is really a critical part of the health regimen because your tooth loss ends up starting because of gum disease. And there's a growing body of evidence that shows a clear link between your oral health and your overall body health. So there's a significant and compelling need here to make a big difference in people's oral health towards their overall well being. So what's behind all this? Why do so many people have such poor Oral habits and oral health? Well, we're using some of the methods David talked about today to have a better understanding of what people actually do versus what they think they do, and some of the whys behind it. And then we're putting all of that data and learning into our innovation program to make changes that can help them have a better quality of life. Now, historically, before the connected world we live in, we would have relied pretty much 100% on things like qualitative research, the sort of interviews that David talked about that a very important survey research so where we would ask consumers a certain set of questions, get a statistical sample, and then have the data and use it. And we would have used things like clinical studies when we developed a new product and and and felt good about it, we'd run clinicals to make sure it worked the way we thought and those were all great, they are still great. They're still very valuable and needed, and they've helped us build leadership brands like crest and r&b, but they left gaps and what we found is that, as David said, the gaps related to what people say. And what they do are often two different things. So today, we have a much richer data set and a much more real time approach to data to understand these things in much more detail. We started selling some connected products A few years ago, and our toothbrush and business and those connected products the consumer can opt in. And if they opt in, they can share their data with us, we take the privacy very seriously. We've worked very hard to gain their trust. So it's very clear what they're opting into. And we are very deliberate about how we handle their data. When we have that data, though, then what we can see is what exactly they are doing day to day versus what they think they're doing. And what we find is there are indeed several gaps. We find gaps and things like how much time they spend in the pressure they use, and whether or not they're even brushing the right amount of times in a day. Now while dentists record Men that we all brush two times a day for two minutes each session, what we find in the data, for example, is that the average consumer only brushes a little over one time a day, and only for 45 seconds. So there's a significant gap between what record is recommended by professionals and what we all actually do. Now beyond the time, we also find that up to almost 50% of the surfaces in people's mouths is often missed. So there's a big coverage gap and that causes a lot of the issues as well. We also find a lot of people missing around the gum line and that is protect is particularly critical, as I said, Because gum disease in the end causes you to lose your teeth. We saw people also struggle with pressure. People, a lot of people press too hard, but some people press too lightly, particularly in their lingual surfaces on the back of their teeth. Now when you put it all together, 70% of us believe that we brush correctly and we're doing what the dentist Mr. hydrogenous told us, in actuality, 20% of us are doing what we're, we've been told. So the 70 and 20, then you see the outcomes that I talked about when I began. Now when we follow up in one on one qualitative, we get some context and some texture of why why do these things happen? You find things like some people are actually afraid to brush too long. They they believe brushing too long will cause damage. And that's just not true. Brushing incorrectly. Scrubbing, for example, can cause damage, but brushing too long, the right amount of time is fine. We also hear a lot of consumers saying that really it's a bit of a mystery of whether they're performing what the way they should or not. They'll say things like, you know, really, I brush every day. I have no idea if I really did it right. I have to wait six months or a year and find out when I go to the dentist so they wish they knew today if they did it correctly. We also hear people saying things like they wish their brush and the things that go with They're brush was more counter where the in consumer language. And what they mean by that is more like things like their phone things that it's attractive, it's very functional, but it's attractive I like using it, I like interacting with it. I like having it out on my counter. Now when you put all this together, driving better compliance with recommended regimens is by far the most important thing that we can do and change to make better outcomes for consumers oral health. So that has been an is is the focus of our innovation program at PNG. Now to help us innovate better, we've also adapted our organization over the last several years. We first of all today we have a large set of data scientists that work with us every single day, they help us collect the data that I talked about, and analyze it and get it into the right format to put it into our innovation program. We've also paired that with all the historic strengths of our company. We have lots of chemists, a microbiologist engineer dentists, we actually have over 150 PhDs and just our consumer healthcare business at p&g. We've also got our master marketing organization that is well known. And we've paired all that with UI and UX experts as well. And we put all that together to really change how we innovate to make bigger leaps in our innovation for consumers. So this week here at CES, you may have seen we're very happy and proud to launch our latest innovation in toothbrushes, and that's the oral B IO. And oral B is by far the biggest leap in our electric toothbrush business we've ever made. It really changes everything about the brush, except for one thing and that is it starts with our foundational oscillating rotating head. So the round dentists inspired oscillating rotating head that is proven and third party research to clean better, particularly along the gum line we've kept everything else has changed. We've paired that with a linear magnetic drive motor, which is a totally different motor. What that does is beyond driving the oscillation and rotation, it drives the energy into each single bristle tip so that each single bristle tip has a micro vibration pattern and the oscillation rotation combined with that micro vibration, and with new bristles that are twisted and with the tufton tough design provide a leap in the coverage and the efficacy of removing plaque from the teeth. Now we've paired that with also a new pressure sensor system. Now, even our products today have pressure sensors, many of them, but they only tell you when you press too hard. And remember I told you that some people press too lightly, let's say on their lingual surfaces. So the brush coaches you in real time to get to just the right spot. If you're pressing too hard, it will give you a red light. If you're pressing too lightly, it gives you a white light. And if you're in just the right zone, you get a green so consumers know in real time if they're pressing correctly. And then we also paired all of this With a new app, this app is by far the most detailed app you can buy on the market. It has an AI algorithm built into it, that coaches you in 16 sub zones in your mouth in real time, if you are covering the right all the surfaces if you're using the right amount of time on those surfaces, and you're using the right pressure. So the degree of granularity is a leap and it helps consumers actually cover the mouth. Remember, I told you that's one of the things they miss about half the surfaces and with the right pressure. Now, the other thing we tried to do is really bring more human factors work into this and pair it with things that the the interface has a more familiar feel to them, and builds in some more human touches. So we've built in an OLED screen to the brush as well, and it springs to humanity and it tells the consumer things like Good morning or good evening, and then it gives them a smiley face when they have achieved the right brushing behaviors. And this has been To me one of the most interesting parts of this whole innovation exercise that we've worked on this for many years. And I was just in China a couple of weeks ago. And it was fascinating to talk to the people that had us the brushes the brushes, because by far, this is what they talked about the most. And one woman in particular talked about how much she wanted to get the smiley face, she did not get the smiley face the first time she used it. And that only happened one time, right. And so to the point, she changed her brushing behavior, she used the app, and she got to where she needs to be with her brushing regimen. So we've learned a lot about how to use interface and these kinds of things to really drive the compliance to get the better outcomes. Now, probably best what we're seeing is the clinical results are just outstanding with IO. We see that brushing time increased to two minutes and 55 seconds. Now remember, I said the average brushing session is 45 seconds. So instead of 45 seconds, two minutes and 50 Five seconds. Also with coverage, remembering that about half the services can get missed coverage. Consumers using IO are 20 times more likely to cover all the surfaces in their mouth driven by some of the things I've talked about. And probably best of all, gum disease is a big issue, as I said, and it's probably the most long term damaging thing because it can cause tooth loss. So what we found is in consumers that have swollen gums, Jinja vitus type conditions. For those that started using IOE. In just a matter of a few week usage period, almost 85% of those consumers went from unhealthy to healthy state. Now, by contrast, if a consumer stayed with a manual brush, only 20% of those people went from unhealthy to healthy. So a significant leap in outcomes that's going to change people's oral health for their life if they will keep with it. Now what's driving these results? They're fantastic, right? We're thrilled to see the impact. It's making for boomers and a few things we hear from consumers when we begin with them about what's behind it. First of all the instantaneous feedback. So remember I said they wish they knew right now today if they're doing what they should do, so they love the app and they love the granularity of the coaching and feedback they're getting and that helps them a lot. They just also like the kind of professional like clean feel the brush gives them and they like also the experience, they describe it as gliding over their teeth so they feel comfortable brushing longer, they're not afraid to brush they and they kind of enjoy brushing actually. And they enjoy how the brush looks. They liked the screen. They liked the visual aspect of the finishes and things like that. So we are just very excited about IO. It launches beginning this summer and fall across North America, Europe and China and we are very excited to get it out. Now very quickly before I wrap up, we are working on a few other areas that we're very excited about and innovation or will be since is our first white fi enabled brush base. And what this enables is that rather than the data needing to flow through the app, the data can go just directly to the consumers phone, or they can get an email, they can get a text, something like that. And it will tell them right away in that text. You brush this long and your last session, you overpressure this amount of time, and we recommend you do blank, where people particularly love this and our research so far is they love it with their kids, because they know they can, their kids data can come to their phone, so they'll know did they brush did they brush the right amount of time and so on. So it will be sense will be coming later in 2020. We're also learning about voice. So we have partnered with Amazon and we are launching or will be guide and it will have all the functionality of Alexa and combined with all the brushing feedback that I just talked about. So consumers can get to the right brushing behavior and at the same time, they can use all their time when they're in the bathroom as they want listen to a podcast or their favorite music or whatever. This is optimized for the bathroom as you would expect the speaker placement, the mic placement, the safety elements are all optimized for the bathroom. So we're very excited about this. And this will also launch later in 2020. So to wrap up, our mission is to help every single consumer in the world have a healthy and beautiful smile for the rest of their life. And that's why we innovate and create products like IO. And in doing things like this at p&g as a company, we're going to continually work to disrupt ourselves constructively to help consumers and to build value for all of our stakeholders. So we're very thrilled about these innovations, and we encourage you to go to the sands to check them out in our life lab booth. Now next, we're going to have a brief panel discussion where we're going to talk about some of these areas a little bit more deeply and more broadly on other parts of our business. The panel will be moderated by Dr. Mehmet Oz would like to welcome to the stage David and I will be speakers. Our other panelists are Mary Lynn Ferguson McHugh, who is the CEO of our family care and PNG ventures unit. And Lisa Ernst, who is our Vice President of Research and Development for healthcare.

 
Mehmet Oz 

That's wonderful. David, thank you. You know, I sit on this side of the stage that I do on my show. And you'll notice Ellen does it Dr. Phil, all the hosts, it was all because of Oprah. Because she would always sit on the far left because it was closest to the door. And she didn't like walking around in her shoes. But has this changed how we think about positioning. But there's many other things more important than that, that I learned from Oprah. Perhaps the most important message in this at some shows I made with her before I started my show was that people don't change based on what they know. They change based on how they feel. And when I see some of the data that you're sharing today, it highlights that you can mined data to assess how people are thinking about the world around them. I met p&g 20 years ago, through a very close friend. Who was working in innovation and he was a genius guy. He had the weirdest connections name is Craig Lynette. And somehow he they're all laughing when I mentioned his name, and I thought, What a strange person but I love them so much. His insights was so deep that I co wrote with him all of the you the owner, man owner's manual books, and we probably sold 25 million of them. That's how good he was. And I thought how lucky PNG was to have this crazy, insightful man working for them. But he wanted me to come out and meet with his friends. So I went out to Cincinnati never been to the big campus. This is again almost 20 years ago. And I realized there were actually thousands of Craig whites there. He wasn't the outlier, was a culture was a culture that had been built to harvest that. So I have been able and been blessed to look at some of the raw data, which is really the best thing that PNG does, I think is not your products, although they're fantastic. It's the data you share with us, they changes my mind how things work. My first insight was around hair, which I never thought much about until I'd learned from PNG data this years ago that when a woman has a bad hair day, it's the equivalent of making $10,000 less a year perceived. The data you're sharing on teeth is similarly see remarkably powerful and as a physician whose main job is to motivate folks to think differently about the world, I hammer often too hard the data without looking at the data in the way you are looking at it back dopers point the emotion has to shine. So let's go to keep you blessed. Thankfully, I didn't realize it wasn't out yet. I got the oral B IO device. Last night when I arrived in Las Vegas. I used it last night and flunked and I thought I was good at my teeth. I was pressing too hard, I miss spots. And this morning, I brushed for the full three minutes that you're allowed to which is even longer than 255 average. And I got a good score and I learned because all of us would want to do the best if you're motivated do such explained to us the deeper insights you're gaining about the inform the use of the oral B brush is the iOS version of it that gives you those insights and Lisa, Steve, you can take us off.

 
Lisa Ernst 

Yeah, so I think you're right. It drives from how people are feeling because the score you got this morning was a 98. Right?

 
Mehmet Oz 

Yes, I love getting it by flunked yesterday. 

 
Lisa Ernst 

Yes, but he only shared the 98 score with us to be clear. So one of the things that we've learned over the past couple of years because as Steve mentioned, we've had connected products on the market for a while. And that really allowed us to look at the inside of where we're consumers still missing. So even though the earlier app only chain only tracked six zones, and now we're tracking 16, we started to see it really is those surfaces deep talked about the lingual surfaces, those on the insides of your teeth that were really hard to get to. So that helped us as we thought about how do you design the next brush head? How do you design the next product? How do you make it feel for the consumer so it's much easier to get to the places where they needed to get to. The other thing we learned is that we needed to provide more positive feedback on going so we had read so we could tell you when you were doing your Wrong, we didn't have green to reinforce when you were doing it right. And we're finding that just putting those cues in the stars, the smiley faces the text to tell you how how you brush today, what you need to do next are really driving consumer habit change. And ultimately getting consumers to brush two minutes twice a day, is what's going to change some of the devastating statistics that Steve talked about at the beginning.

 
Steve Bishop 

I would just add to that, that I think we've learned so much about the delight aspect, bringing not just functionality but delight and the human factors. And so I mentioned the smiley face, I think those little things have been some of the most important parts of really wrapping up what's fantastic technology in a an interface that the consumer really likes using right and pairing that also with an experience they like they like how it looks. They like how it feels. And then they get that little affirmation when they finish and I think those are Some of the most compelling things we're learning

 
Lisa Ernst 

to make your brush Brown, I'm sorry, we don't want to make the brush Brown. Oh,

 
Lisa Ernst 

we don't want a frowny brush.

 
Mehmet Oz 

But it's the degree of technology changing something as fundamental as some such a part of our routine that we're just honest about is what's fascinating me it's expanded beyond the day Berlin, what other consumer insights are coloring, how you look at the marketplace, what products you're making, what you're aiming at, and now space?

 
Mary Lynn Ferguson-McHugh 

Well, a couple of examples from PG ventures is we find that a lot of consumers really don't want to make the trade offs for the benefit. They want to take care of getting rid of bugs in their home, but they don't want something that's harmful to their family or for their pets that inspired Zeebo and oktay. Which you can go and see over at the sands. Women don't like to trade off of either the expense of laser treatments or heavy pancake makeup such as I have on right now. Wallace looking skin and I'm Pay enables them to precisely correct the spots because our eye is trained to look for all the imperfections, but less than 10% of your face has an imperfection on it. So oktay precisely scans detects and then puts the exact right serum on the spot to give you a flawless looking skin without that overly head heavy made up look or the expense of it. So really balancing those trade offs something as pedestrian and private as toilet paper. And you can go see some Sharman fun executions over there is consumers never want to run out. Think of the experience that you might have when that happened. And really understanding that and what what today's kinds of research even in private areas like that we can understand how much consumers use how often they use it and What they do is often different than what they say, and that helps us don't deliver a better delightful experience. All these examples

 
David Taylor 

are really one key principle. And that is we're trying to understand how to delight the consumer and really make a difference in their lives. We talk about we take very seriously we want to touch and improve the lives of the world's consumers is small but meaningful ways. Each and every day, needs the products does that I can go through a whole list of I lived in China, we were trying to understand why some consumers wash their hair less often. But we look through the western eyes and we didn't see what was really happening. I went out on a trip two hours outside go on Joe, and we went to a small home and one light bulb with a wire hanging down. And I asked the consumer, you show me how you wash your hair. she proceeded to walk outside the water, had a bucket later and overhead and said it takes too long to rinse it in the winter the water is cold. And so if you have a formula that's hard to resolve, it's got a lot of surfactant got a lot of other The conditioning agents that you we may be very used to, in places that have hot running water. And so again, the idea is in service to empathize with the consumer across a wide range in the other thing that's really interesting and many times the consumer can't articulate what they need. They've got compensating behaviors. So they must say, you know, I want this. That's why to me, I'm not a fan of focus groups. I'd much rather go in homes and watch a consumer. If you watch the consumer to car, they have sometimes that little air freshener thing hanging from the mirror. When you ask him that is it worth he said, Yeah, he said, How long Well, if it's not hot or cold, they are to open up. We designed a product that works well across a wide range of temperatures for 30 days. We originally tested it was going to be a small idea 20 or 30 minutes and today it's over a quarter billion dollars because it's a product that works that meets a need that they wouldn't have said they need. But most of the climates there's a hot and a cold and a hot car you put to this old air fresh to sort of blow you away in a cold heart doesn't volatize. So if you have something that handles that, but again, it's in service to the consumers not trying to sell a brand is trying to understand the consumers need fall in love with the problem, develop solutions that really delight them. And then some of the examples, go further and give them a sense of achievement, build up the self esteem, given the smiley face or whatever it is that people feel that it really does make a difference in a small but meaningful way. Let's unwrap

 
Mehmet Oz 

this consumer research future. You know, I look at, for example, if I look at Olay you have that the tool it's a really cool app, based on a lot of science, that PG collected that assesses how your skin is aging. And it's a very sophisticated tool, because it also will tell you what you might want to do about it. Now, I'm if I'm interested in my skin, do the app, find that out? So I'm clearly motivated to pay attention to what you're teaching me. But there are many examples. You give it a couple over here where people don't know what they don't know. Yes, we think we're brushing, right? That data is not just about the slides about all of us, right? I bet most of us if we're honest about our brushing for less than a minute, and I hope most of us are brushing twice a day, but it's probably not true. And having a loss of teeth reduces people's perception of your IQ. So it actually does affect your job opportunities. Your incoming go things go way beyond the ginger vitus and heart disease is a heart surgeon I'll speak to that that are linked to ginger vitus because we aren't doing it right but we didn't know it. So what is the future of consumer research and how it affects you in particular, merrily? Can we start us off maybe Lisa, next AI, which I just met with a group this morning, you know, that is doing some really cool work as almost everybody is an AI. It blows my mind to think what might be out there but you guys are on the cutting edge.

 
Mary Lynn Ferguson-McHugh 

What we do just building on the example I said earlier about our precision skincare we have really use the consumers willingness to link in with us to understand how she's using it, and let her engage with someone to help her how to use it better to even get a better benefit, which is different Then here's a widget, go for it. This is developing a two way conversation with a consumer help, that enables them to do a better technique. And when she allows us to upload her data, we can tell whether she's doing it right. And how that links to the amount of products she's using, and is it dosed correctly, and whether she's getting the benefit that she wants. So it's a great way to establish a relationship in terms of enabling the consumer to get the flawless look that they want, each and every day.

 
Lisa Ernst 

And I would add with that relationship, we're getting real time data. And that's what's really exciting about it, because we get to see what's happening with that consumer in the moment. And frankly, we can start to aggregate some of the data that we're getting from the many people for example, who are using the brush app, and we can find out if there are better ways That we can be coaching people. So we can change things on the fly, in terms of real over the air updates in the future, so we can fix things for the consumer, much sooner than we'd ever be able to do before. And, you know, I think that that's going to be really exciting for a lot of our products. The one piece I would come back to, though is the artificial intelligence will always be just one piece of it, because what we've got to remember is we're designing products for the consumer in her context. And if we're not physically with her at times in real life, we're going to miss the whole, the wholeness of it.

 
Mehmet Oz 

David, see, how does that continuous feedback feedback loop that was mentioned by Lisa affect how you innovate? And is there a speed of light beyond what you can't go? Or is it actually better to continually micro presented with the with the IO brusha us this morning, you could push a notification on my app, you can upgrade the software like I you know, like would normally happen almost any other app so you could Do it all the time. Is that the right thing for p&g to do? In many ways? Yes.

 
David Taylor 

Research today, and frankly, even innovation more broadly, we're finding out, we do much better and much more successful when we have small teams fall in love with the problem, many different hypothesis and just start the learning. They can use many of the techniques, whether it's qualitative or quantitative. It allows them to understand develop the prototypes, and then learn and part of what's going on. And every one of our categories. You've heard some examples in oral care and certainly in our PNG ventures, but every one of our categories is doing that it's beyond, we've moved past big project teams in one idea that will go sell to you because we've invested a lot of money, we can put a big advertising campaign and go, we have over 150 different tests going on now. Little startups within our company, many of them will fail and that's fine. They'll pivot and try something else. But that speed of learning with today's ability to try something learn it tonight, change tomorrow and website changes, changes changes is very, very different. And it just it flips it from selling your product to learning how to delight the consumer. And as soon as you make that mind shift in service to, it opens up new possibilities, because in many of these cases, the total addressable market, if you could solve the problem is enormous. The issue is, it's hard to do it. And we want to take on the hard problems, the dilemma, the trade offs, because those open up billion dollar brand ideas that truly make a difference. And for us, it's not about just buying at once. We're a company that relies on repurchase we've been around 182 years. So it's not about fooling the consumer. It's about delighting the consumer. So they come back, and back and back. And if we really do it, right, they talk about it to others, and they become our next best spokespeople, using many of these brands, to me are making a difference. And we have so much more we can do. We're just scratching the surface of what's possible with the technology as well as the human, frankly, compassion that exists in our PNG organization culture.

 
Mary Lynn Ferguson-McHugh 

If I can build on that a little bit, even in very everyday household tasks, like cleaning your kitchen, counters or wiping up spills. If consumers agree to allow us to put a camera say in their kitchen, and we use sensors on the role holders, we're able to understand when she uses paper towels, how many she uses, and what are the tasks that she uses them for, which helps us then develop a better product to do that task. And many times she surprises us with what she uses, and when she uses it versus what she might have told us. And that gives us many ideas in some of what we call growth works, which are these small startup groups to create even new products that can do a better job at fulfilling a task that she might have been working harder at to get done.

 
Steve Bishop 

I think the other thing that's changed to your question about sort of constant update is how we market and how we engage consumers to use these things, is the other thing has changed radically. So if you start with Let's say electric toothbrushes, the penetration of those in the US is 15%. Okay, so it's very low. toothbrushes

 
Mehmet Oz 

like that. That's that right? Yeah. How many of you knew that electric toothbrushes are 15% of the market? I'm at shockingly low.

 
Steve Bishop 

So our biggest challenge is to get people to convert to electric toothbrushes and our electric ones that are the best. And what we do very different today, kind of to your question is we use performance marketing, we're on a daily basis, we're learning how to engage which people with which message that's different by person, right? And so we're running a B tests all the time every day of how we market these things. that's hugely different than what we were doing. Several years back sitting here on the stage. Do any of you think you could predict the A B testing results are you continually fooled by what you find? I don't know for full but I think we learn every day that we continue to see that you know what works for one consumer does not necessarily work. The other and the context, the ever changing context of the world around them also can change what is appealing to them

 
Mary Lynn Ferguson-McHugh 

did some work on this on Charmin. And we know there's the consumer inside of not running to run out. And so we said, you know, the biggest role we sell is called a mega role, broadly today, which is four times a regular roll, we said, well, through a B testing, and through some of this consumption testing, let's understand how far we could push the envelope. Maybe somebody might actually want to buy a roll. That's the size of 12. Right?

 
Mehmet Oz 

No, no, Gary,

 
Mary Lynn Ferguson-McHugh 

they wanted to buy a roll. That's the size of 24 rolls. So today, there's some of this AV testing. And we only saw it online because it's very complicated to make and we want to make sure we understand it. We are selling Charmin forever roll, which is the equivalent of 24 regular rolls on one roll, but it's the same quality. The same experience you would get was Sharman through this A B testing I would say it wasn't as though we were fooled. We were surprised that the consumer habit we understood, had actually, far more runway than even we realized.

 
Mehmet Oz 

So my wife's family there's a rural community in Pennsylvania and they're, they're there. They will do folks but they're frugal. So my mother a lot though we receive too much toilet paper. So if you put a roll on that would play Jingle Bells whenever you pull them, which had a chilling effect on toilet paper use. Okay, we're gonna go back. This is you. You mentioned several times 182 year old company. Yes. I mean, iconically. I think it's actually emblematic of what, what the private sector can do in America? Do you ever have a concern that we've already discovered all the big things I mean, there's a lot of years of smart people doing hard work. And you think they would have discovered all the important stuff

 
David Taylor 

now and it's probably one of the things we're very humbled when we think about this. When you approach a consumer and spend time in their homes, they can talk about all these delivery. There's some trade offs that they have the compensating behaviors that all of us have every day because we can't imagine a different outcome. And part of this is just continuing to strive to address that. I mean many of the products that have been invented the fact that we had over 180 tests going on, since people with identified a lot of really cool areas, some are new spaces for p&g, others a new forms of the product we have today that are much easier to use that you couldn't have imagined mean who would have imagined you need an in wash scent booster today that brand or that brand is 750 million and growing because it gives people freshness after you take it out of the dryer two or three weeks later. So there's many things that when you give them to go this is great, but there won't ask you for it. But again, you have to understand the consumer behavior,

 
Mary Lynn Ferguson-McHugh 

if you can also dialogue with the consumer and understand things that perhaps categories that don't exist today. Another area that we are innovating in in PG venture is this female menopause, which Dr. Know About but it's not a conversation broadly and if you go to Walgreens or any grocery store or Kroger any if there's not a category but when you dialogue with the consumers who are in this in this set, they can tell you what are the physical issues, the emotional issues and that enabled a huge amount of innovation for us that's a product that we call pepper and what's that is now Kendra brand which is for sale online our Kendra calm because we're trying to incubate and understand through a lot of a b testing techniques but talk to a consumer that today is not served.

 
Mehmet Oz 

What is what does Kendra deliver to women going through menopause

 
Mary Lynn Ferguson-McHugh 

Kendra? Its primary product is a vaginal moisturizer and an applicator that dramatically improves the dryness because as you know, some symptoms of menopause resolve themselves and some stay with a woman for the rest of her life. This is one of them. And it very much improves her intimate experience.

 
Mehmet Oz 

on the line. I'm curious what you think other companies might be missing when it comes to using data to shape product design research into whether the big needs things I would never have thought of asking. I would never have thought Steve asking half the questions you pointed out answers to on dental care would never have crossed my mind that that few people brush their teeth that was of a crisis was happening in the UK with the hospital admissions linked to dental procedures in kids and operating and kids under the age of 10. The single biggest mortality risk is the anesthesia. So pulling a tooth appendectomy gastrectomy, you know, the risks are primarily about the anesthesia. So it's a big deal.

 
Steve Bishop 

I mean, to me, the the applications of using the data and the world we live in are just truly endless. One thing the context keeps changing around the consumer. So the aging dynamic, for example, each year that people get older and older and that changes their needs. And so I think all of can better learn with consumers as they age through those life stages. The other thing I think that I see that is a very fertile ground that there's so much more room to learn in is the things I talked about interface. It's one thing to learn about the problems with a consumer or even the compliance. But then there's also the learning, which is driven by things like a B testing on okay, but if I try this, does that drive the compliance change? Or this and and how do things like those little interface things, the smiley or whatever, change those outcomes dramatically. And it can be applied to every single task we do today. And so I think it's endless for all of us

 
Lisa Ernst 

to add to that, and say the thing that I think we are doing much better today than when I started with the company as we look more holistically. So again, as I said earlier, and as we said repeatedly, here data is one thing, context is another and there's a lot of external data that we can gather to The hospital data for example, rather than being focused on one number, we look at it all together. And that's really where the insights come, the interfaces usually drive, the new insight that tells us where we need to be better. And what we're trying to deliver or where a new opportunity might be.

 
David Taylor 

There's a term we use that captures that is we want a body of evidence to move forward versus a single test, single product test, blind test, what you want a body of evidence, you want to understand the consumer, the emotional level, the behavioral level, and then the quantitative level and what they're actually doing. You can put it all together, and you can design products that truly delight you. What you really want is consumer that is just surprised. It's irresistibly good. You take it away, they want it back. One of the my favorite test is the deprivation test. You have a consumer product, and let them try it out and take it away and see what their reaction is, from rate their previous product. And if they rate the previous product lower than before, you've changed the expectation. They have an old category. That's when you know you start to innovate in a way that makes difference. To the consumer, they've raised their expectation because you've given something they didn't expect. And now they want it, they want more. And that's great. That's what we're about in all of our categories.

 
Mary Lynn Ferguson-McHugh 

We did such a test on the OPT a product in a large urban environment in the States. And the consumers drove in from the suburbs to participate in the test and we paid them and to really get this was early on in our learning to really understand how to get the mechanics to work right and and how to instruct the consumer to use it. And then we got the learning and the test was over. And consumers consistently, many of them came back to us and said, If I was willing to drive in here every day, you don't need to pay me. Could I still use this device? Oh my goodness. And that shows when you have started something where you are beginning to perhaps scratch the surface of really delighting the consumer. But if you go all the way back on oktay to the beginning, that less than 10% Your face perhaps has an imperfection. But we are trained to look forward and we are trying to cover it all up. We try to fall in love with the problem first. So the problem is 10% of my face might have spots. The solution may be very varied, or there may be multiple avenues to it. And by taking that approach that enables us, I believe, to develop better products that are more delightful and actually do a much better job of not only delighting the consumer, but ultimately resolving the problem

 
Mehmet Oz 

is a question I'm sure many in the audience are thinking now, which has to do with nimbleness how nimble is 182 year old company with how many employees are the David 97,000 97,000 capital, I made some big it's a big team. So how do you make sure that you stay entrepreneurial and it may miss an opportunity early and talk about the but the way you try to innovate that's different than what I would have expected from 108 two year old company with 97,000 employees

 
David Taylor 

get the advantage we have, I flipped it exactly the opposite way. We have tremendous depth and understanding the consumer and technologies. The challenge was to change our behavior. And, and understand some of the new techniques, lean innovation techniques, we've been trained by a lot of folks out in Silicon Valley, we want to take the best Tony from anywhere we learned from all over the world, leading entrepreneurs, we have an outward look, and then we want to bring it inside, but take advantage of what we're very good at. and recognize that there's so much we can learn. So today, PNG has said is over 150 hundred 80 different experiments going on. These are lean innovation, but what's different and one of the reasons that we have many of the startups we've purchased, we still have the founders with us, because they say we know what the consumer needs. We've got a great interface. But now I have access to all this technology and the supply chain that you're very good at. So we can get this. The founder may say I can get it from x to x men. You can then take it everywhere. And we want to bring the combination. We've even started a build studio where we now partner with outside innovators as part of our company. So we may have a technology will turn it over to an innovator, they will have part of the company will have part and we'll work together would be on the board. So these are different techniques. png is open to innovate and work with anybody that can help us better serve consumers and create value for the many stakeholders that we touch.

 
Mary Lynn Ferguson-McHugh 

And I think we're learning also to expose ideas and expose prototypes to consumers very early on, before we fully baked it before we think it's totally ready. Because by going back and forth, which is a different approach than I've got it totally perfect. Now I'm going to throw it out there with millions of dollars of advertising, testing it, perhaps online if online is not necessarily a destination point and largely isn't for most things that we are working on. But tested online, going back and forth, improving the product a little bit, getting it back out there and getting her results bonds to it. That is the nimbleness that enables us to develop better experiences for consumers and ultimately better benefits as opposed to perfection before we even expose it to

 
Mehmet Oz 

a consumer just to follow, David said, this idea of you went out to Silicon Valley picked up, so do you. I'm just curious how that works. You you go out and gain some insights from how Google's analyzing data and how they're able to expertly figure out how to solve solutions. We haven't thought of problems we haven't thought of, and then use PNG sensibilities layer on top of that,

 
David Taylor 

how does that process actually, actually, there's many things too, we have connections with innovators in Silicon Valley in Boston, in Israel and China and many places throughout the world. The idea is we have 97,000 people, we operate in over 100 countries. So do the best ideas can come from many different places, good ideas and capabilities. The idea is to be open to learn, and then apply in our categories. There's many startups that are entering our categories. We know we're gonna have to compete with people that are very fast, come up with new ideas. So we have to be faster and better to win over time, and we welcome competition because what it causes is to elevate the performance we have. So it to me part of what we have to develop is the capability to learn fast. One of the greatest capabilities I look for in leaders is the willingness to learn. If they think they know what that's a problem. When the Learning Mode learning fast, then p&g has tremendous advantages things like our supply chain, our brand building capability, the scale advantage you get from the company, but many companies the scale and the bureaucracy becomes a constraint. You can flip it and have a very agile, engaged and empowered organization and accomplish amazing things. And you've seen the growth rate of the company improve because we have tremendously capable people, the opportunities to unleash them, not manage them, empower them, and connect them with people that have ideas. And that culture to me, is what gives me a lot of confidence. The company's got a bright future hundred 82 years it's good start.

 
Mary Lynn Ferguson-McHugh 

I've mentioned the build studio which is a partnership with PG ventures and as And entrepreneurs out in Southern California. And what we're able to bring with that partnership is we have core technology, and core understanding and in building or creating a brand. But we're hiring entrepreneurs and founders and that have more of that startup mentality to take that brand to the first level before it's ready for scale. And it's enabling us to access people with different skills and different experiences than traditionally in PNG.

 
Steve Bishop 

We're very focused internally on how we organize to drive that focus. So when we start a project, you know, it may start with just a couple of three people. We even use terms like founder now and drive accountability and Stage Gate funding, so that we act like a startup I mean, these projects Now, what's different about us then versus others is we are quite large and we're able to industrialize probably bigger and with more precision, using some of our capabilities, right because of what we have learned from the past. So we try to be situational when it's right to have a very small group, and very entrepreneurial and Stage Gate funding, we organized that way with mastery. And then when it's time to industrialize, we industrialized. You guys, make me very proud.

 
Mehmet Oz 

What you're doing not just for the hundred 82 years exceeded you. But what you're doing today, congratulations. There's lots more to learn. By the way, if you can steal one of those IO buses to try to do it, even though it's like coming out for a few months, and you got one and you get one is better. You go to the PNG live life lab booth is over at the sands Expo Center to check out the booth which is worth doing. Thank you all very, very much. And I don't know if I need to read all this. But the there's a ton of information that Procter and Gamble has brought to bear and how we use data in in consumer facing spaces, including media, which I encourage you all take advantage of. So we'll pester them right after we're done. God bless y'all. Thank you.

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