Proctor and Gamble 2003 Annual Report Download - page 11

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P&G’s Fabric and Home Care business is focused on growing
global scale, market share and profit. Given its size and
importance to the Company, Fabric and Home Care’s goals
are the same as the Company’s goals. We’re delivering
broader, stronger volume and sales growth to strengthen
scale advantages and help ensure sustainable double-digit
profit growth.
This focus is paying off. We delivered record volume, sales
and profits in 2002/03 – our third straight year of double-
digit profit growth. Volume was up 9% – the highest in
over a decade. We grew market share in the majority of
categories and countries in which we compete.
Two strategies are driving these results:
Innovation. We’re growing our top-line with innovation
across a broad portfolio of brands. We have more than
doubled the success rate of new product initiatives on
the strength of industry-leading product and commercial
innovation. Tide and Downy Clean Breeze enable consumers
to get the same fresh scent in both their detergent and fabric
softener. Improved versions of Ariel and Tide have resulted
in our largest worldwide share gains in years. New Gain was
the fastest-growing brand in the U.S. Laundry detergent
category. Improved dishwashing liquids have broadened
P&G’s share leadership.
At the same time, we’re driving overall category growth.
Revolutionary products like Swiffer WetJet and Swiffer
Dusters are expanding the new surface cleaning systems
category. Febreze single-handedly created the new fabric
refresher category, creating a brand that generates over
$250 million in sales.
In addition, we’re expanding P&G’s portfolio of Fabric and
Home Care brands with Mr. Proper in Germany, Bold
in Japan and Gain Fabric Enhancer in North America.
Increasing Productivity. We are increasing productivity
to sustain double-digit profit growth. This is an equally
important strategy that leverages P&G’s global scale in
the Fabric and Home Care business. We’ve built this scale
through P&G’s portfolio of market-leading brands, as
well as the size of our worldwide business. This leads to
increased productivity, which enables better value and
growing profits. In the past year, we have significantly
reduced cost of goods sold and have set the industry
benchmark for capital spending as a percentage of sales.
We have strengthened decision-planning capabilities,
reduced overheads as a percentage of sales and improved
the way we allocate financial and human resources. Our
target benchmarks are the companies that are best-in-class
in each area.
Innovation and productivity are critical. When Fabric and
Home Care grows, P&G grows. In 2002/03, Fabric and
Home Care added $941 million in sales and $228 million
in Company profit – nearly the same as adding a very
profitable, new billion-dollar brand to P&G.
P&G’s biggest and oldest business is still one of its most
important engines of growth.
We’re P&G’s oldest business and still one of its most
important engines of growth. This past year, the
growth we generated was nearly the same as adding
a very profitable, new billion-dollar brand to P&G.
Robert A. McDonald
President