Proctor and Gamble 2004 Annual Report Download - page 5

and฀a฀20%฀share฀of฀global฀Hair฀Care,฀each฀up฀one฀point฀or฀
more฀in฀three฀years.฀For฀perspective,฀a฀one-percentage-point฀
increase฀in฀market฀share฀across฀these฀four฀core฀businesses฀is฀
worth฀about฀$1฀billion฀in฀annual฀sales฀and฀more฀than฀$150฀
million฀in฀annual฀earnings.
฀
2.฀Grow฀leading฀brands,฀big฀countries,฀winning฀customers
I฀explained฀in฀2001฀that฀we฀intended฀to฀grow฀sales,฀market฀
shares฀and฀profits฀–฀at฀rates฀above฀total฀Company฀targets฀–฀
on฀our฀leading฀brands,฀in฀our฀biggest฀markets,฀in฀growing฀
distribution฀channels,฀at฀winning฀retailers.฀Again,฀we’ve฀
delivered฀and฀continue฀to฀build฀momentum.฀
P&G฀now฀has฀16฀billion-dollar฀brands,฀up฀from฀10฀just฀four฀
years฀ago.฀One฀of฀these,฀Pampers,฀is฀a฀$5฀billion฀brand.฀
Another,฀Tide,฀is฀a฀$3฀billion฀brand.฀And฀two฀others,฀Pantene฀
and฀Ariel,฀are฀$2฀billion฀brands.฀Eight฀of฀these฀billion-dollar฀
brands฀are฀leaders฀in฀their฀category฀or฀segment.฀The฀
portfolio฀of฀billion-dollar฀brands฀delivered฀compounded฀
strategies.฀We’ve฀executed฀well฀over฀the฀last฀three฀years.฀
Every฀strategy฀is฀delivering,฀and฀there’s฀plenty฀of฀room฀for฀
additional฀growth.฀
1.฀Build฀existing฀core฀businesses฀into฀stronger฀global฀leaders
P&G’s฀core฀businesses฀are฀Baby฀Care,฀Fabric฀Care,฀Feminine฀
Care฀and฀Hair฀Care.฀These฀are฀categories฀in฀which฀P&G฀is฀#1฀
in฀global฀sales฀and฀#1฀in฀global฀market฀share.฀Together,฀they฀
generate฀more฀than฀half฀of฀the฀Company’s฀total฀profits.฀
Most฀important,฀they฀are฀categories฀in฀which฀we฀believe฀we฀
can฀maintain฀and฀extend฀P&G฀leadership.฀
In฀fact,฀over฀the฀past฀three฀years,฀we฀have฀steadily฀expanded฀
P&G’s฀share฀in฀all฀these฀businesses.฀Baby฀Care฀now฀has฀a฀
36%฀global฀share฀–฀an฀increase฀of฀nearly฀four฀percentage฀
points฀over฀the฀past฀three฀years.฀P&G’s฀35%฀share฀of฀global฀
Feminine฀Care฀is฀up฀more฀than฀two฀percentage฀points฀in฀
three฀years.฀We฀have฀a฀31%฀share฀of฀global฀Fabric฀Care,฀฀
annual฀sales฀and฀profit฀growth฀of฀7%฀and฀16%,฀respectively,฀
over฀the฀past฀three฀years.฀
Ten฀more฀P&G฀brands฀have฀sales฀between฀$500฀million฀and฀
$1฀billion฀–฀with฀credible฀potential฀to฀pass฀the฀billion-dollar฀
mark฀in฀the฀years฀ahead.฀We฀don’t฀push฀brands฀to฀cross฀the฀
billion-dollar฀line.฀They฀must฀have฀clear฀strategies฀to฀achieve฀
and฀sustain฀the฀growth,฀a฀brand฀equity฀grounded฀in฀deep฀
consumer฀insight฀and฀a฀solid฀innovation฀pipeline.฀But,฀as฀
P&G฀brands฀join฀the฀billion-dollar฀club,฀the฀Company฀takes฀
important฀steps฀toward฀the฀strategic฀goal฀of฀having฀global฀
category฀leadership฀and฀the฀#1฀global฀brand฀in฀every฀major฀
category฀in฀which฀we฀compete.
All฀top฀10฀countries฀grew฀volume฀and฀sales.฀Over฀the฀past฀
three฀years,฀we’ve฀demonstrated฀we฀can฀keep฀growing฀฀
clear-cut฀leadership฀positions฀in฀core฀markets฀by฀being฀closer฀
to฀consumers฀and฀customers,฀leading฀innovation,฀delivering฀
superior฀value฀and฀building฀stronger฀local฀organizations.฀฀
For฀example,฀in฀the฀U.S.,฀P&G฀Feminine฀Care฀has฀added฀
seven฀percentage฀points฀to฀its฀share฀leadership฀margin,฀฀
and฀now฀has฀a฀22-share-point฀advantage฀versus฀the฀next-
best฀competitor.฀In฀the฀U.K.,฀Baby฀Care฀has฀added฀nearly฀฀
13฀points฀to฀its฀share฀leadership฀margin,฀and฀now฀has฀a฀฀
28-share-point฀advantage฀over฀the฀#2฀competitor.฀
P&G฀is฀growing฀volume฀and฀share฀at฀9฀of฀our฀top฀10฀฀
retail฀customers.฀Our฀strategy฀is฀to฀develop฀highly฀
collaborative฀partnerships฀with฀customers฀so฀we฀both฀฀
win฀when฀consumers฀choose฀where฀to฀shop฀and฀what฀to฀
buy.฀We฀do฀this฀by฀leveraging฀P&G฀strengths฀in฀shopper฀
understanding,฀innovation฀that฀drives฀category฀growth฀฀
and฀supply฀chain฀efficiency.฀
3.฀Develop฀faster-growing,฀higher-margin,฀more฀asset-efficient฀
businesses฀with฀global฀leadership฀potential
Health฀Care฀and฀Beauty฀Care฀businesses฀now฀represent฀
Free฀Cash฀Flow
(in฀billions฀of฀dollars)
  
 

Total฀Shareholder฀Return
(indexed฀versus฀June฀30,฀2001)








  



     
Organic฀Unit฀Volume฀Growth
(%฀increase฀versus฀previous฀year)
  

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
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