Proctor and Gamble 2004 Annual Report Download - page 29

Fiscal฀Year฀2004฀Results
The฀MDO฀is฀focused฀solely฀on฀winning฀the฀“First฀Moment฀฀
of฀Truth”฀–฀when฀the฀consumer฀is฀shopping฀in฀the฀store.฀฀
Our฀MDO฀professionals฀are฀on฀the฀ground฀in฀over฀80฀
countries,฀and฀we฀have฀about฀50฀dedicated฀teams฀working฀
directly฀with฀customers฀around฀the฀world.฀Their฀challenge฀฀
is฀to฀be฀the฀experts฀at฀understanding฀local฀consumers฀and฀
customers,฀and฀to฀use฀this฀knowledge฀to฀build฀customized฀
business฀plans฀for฀our฀brands.฀
This฀clear฀focus฀again฀delivered฀great฀results.฀In฀fiscal฀year฀
2004,฀P&G’s฀global฀volume฀growth฀was฀17%,฀including฀the฀
impact฀of฀the฀Wella฀acquisition.฀Organic฀volume฀growth,฀
excluding฀acquisition฀and฀divestiture฀impacts,฀was฀10%฀for฀
the฀year,฀and฀each฀of฀P&G’s฀market฀development฀regions฀
delivered฀organic฀volume฀growth฀of฀6%฀or฀higher.฀
Developing฀markets,฀which฀accounted฀for฀about฀20%฀of฀
P&G’s฀sales฀in฀fiscal฀2004,฀grew฀volume฀by฀nearly฀20%฀
versus฀the฀previous฀year.฀
The฀growth฀strength฀was฀also฀broad-based฀across฀P&G’s฀
biggest฀brands,฀countries฀and฀customers.฀P&G฀grew฀volume฀
at฀9฀of฀our฀top฀10฀customers,฀on฀all฀of฀our฀top฀10฀global฀
brands,฀and฀in฀all฀of฀our฀top฀10฀countries.฀This฀established฀฀
a฀solid฀foundation฀to฀grow฀P&G’s฀smaller฀brands฀and฀
markets.฀In฀fact,฀the฀balance฀of฀our฀top฀brands,฀countries฀
and฀customers฀each฀grew฀volume฀at฀a฀double-digit฀rate฀–฀
truly฀outstanding฀performance.
Market฀Development฀Organization฀(MDO)
What’s฀Working
The฀MDO฀is฀developing฀new฀capabilities฀that฀are฀making฀us฀
better฀and฀stronger฀than฀ever฀before฀–฀allowing฀P&G฀to฀win฀
the฀First฀Moment฀of฀Truth฀more฀often.฀We฀are:
•฀฀partnering฀with฀winning฀retailers฀to฀jointly฀create฀value฀
through฀better฀understanding฀shopper฀habits,฀providing฀
solutions฀that฀meet฀the฀retailers’฀marketing฀strategies฀฀
and฀driving฀out฀non-value-added฀costs;
•฀฀improving฀the฀availability฀of฀our฀products฀on฀store฀shelves฀
with฀supply฀system฀innovations฀that฀reduce฀out-of-stocks฀
while฀reducing฀costs฀and฀inventories฀for฀P&G฀and฀retailers;
•฀฀reaching฀more฀of฀the฀world’s฀consumers฀by฀broadening฀฀
the฀distribution฀of฀our฀brands฀through฀new฀channels฀in฀
developed฀markets฀and฀increasing฀penetration฀of฀smaller฀
stores฀in฀developing฀markets;
•฀฀ensuring฀that฀our฀brands฀are฀priced฀to฀provide฀excellent฀
consumer฀value฀by฀closely฀monitoring฀our฀pricing฀strategy฀
versus฀all฀competitors,฀including฀private฀labels,฀and฀acting฀
quickly฀to฀keep฀our฀flagship฀brands฀priced฀right;฀
•฀฀improving฀the฀in-store฀presence฀of฀P&G฀brands฀through฀
better฀packaging,฀shelf฀layouts฀and฀unique฀customer฀
merchandising฀events;
•฀฀improving฀the฀impact฀and฀success฀rate฀of฀P&G฀initiatives฀
through฀holistic฀in-store฀marketing฀and฀local฀media฀
relations฀programs.
After฀only฀five฀years฀in฀our฀new฀organization฀structure,฀฀
we฀have฀made฀good฀progress฀building฀our฀skills฀to฀better฀
market฀to฀shoppers฀and฀jointly฀create฀value฀with฀retailers.฀
However,฀true฀to฀P&G’s฀culture,฀we฀are฀never฀satisfied฀and฀
will฀keep฀building฀on฀this฀foundation฀to฀ensure฀the฀MDO฀฀
is฀a฀sustainable฀competitive฀advantage฀that฀will฀continue฀฀
to฀get฀stronger.
Top฀Ten฀Brands฀
(Volume฀Growth)
  



Top฀Ten฀Countries฀
(Volume฀Growth)
  
 

Top฀Ten฀Customers฀
(Volume฀Growth)
  





Geographic฀Sales฀Split
(Fiscal฀�ear฀2004฀Net฀Sales)


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