Proctor and Gamble 2007 Annual Report Download - page 34

The Procter & Gamble Company
32 Management’s Discussion and Analysis
Beauty and Health
Beauty: We are a global market leader in beauty and compete in
markets which comprise over $230 billion in global retail sales. We are
the global market leader in hair care with approximately one-fourth of
the global market share. We are also the global market leader in the
feminine care category with over one-third of the global market share.
Health Care: We compete in oral care, pharmaceuticals and personal
health. In oral care, there are several global competitors in the market
and we have the number two share position. In pharmaceuticals
and personal health, we have approximately one-third of the global
bisphosphonates market for the treatment of osteoporosis under the
Actonel brand. We are the market leader in nonprescription heartburn
medications and in respiratory treatments behind Prilosec OTC and
Vicks, respectively.
Household Care
Fabric Care and Home Care: This segment is comprised of a variety
of products including laundry products, fabric conditioners, dish care,
air fresheners and household cleaners. We generally have the number
one or number two share position in the markets in which we compete
and are the global market leader in fabric care, with over one-third of
the global market share. Our global home care market share is over
20% across the categories in which we compete.
Baby Care and Family Care: In baby care, we compete primarily in
diapers, training pants and baby wipes, with over one-third of the
global market share. We are the number one or number two baby
care competitor in most of the key markets in which we compete,
primarily behind Pampers, the Company’s largest brand, with annual
net sales of approximately $7 billion. Our family care business is
predominantly a North American business comprised primarily of the
Bounty paper towel and Charmin toilet tissue brands, with U.S. market
shares of over 40% and over 25%, respectively.
Snacks, Coffee and Pet Care: In snacks, we compete against both
global and local competitors and have a global market share of over
10% in the potato chips market behind our Pringles brand. Our coffee
business competes almost solely in North America, where we hold a
leadership position with approximately one-third of the U.S. market,
primarily behind our Folgers brand. In pet care, we compete in several
markets around the globe, primarily in the premium pet care segment,
behind the Iams and Eukanuba brands. The vast majority of our pet
care business is in North America, where we have about a 12% share
of the market.
Gillette GBU
The Gillette GBU was added on October 1, 2005, as a result of the
acquisition of The Gillette Company. This GBU is comprised of the
Blades and Razors and the Duracell and Braun reportable segments.
Blades and Razors: We hold leadership market share in the blades and
razors market on a global basis and in almost all of the geographies
in which we compete. Our global market share is over 70%, primarily
behind Mach3, Fusion, Venus and the Gillette franchise.
Duracell and Braun: In the batteries category, we have approximately
45% of the global alkaline battery market share. We generally have
the number one or number two market share position in the markets
in which we compete behind the Duracell brand. Our Braun brand
spans across electric razors and small electrical appliances. Our products
are sold in a number of markets around the world, and we compete
against both global and regional competitors.

We recently announced a number of changes to our organization
structure and certain of our key leadership positions, which resulted in
changes to our GBU and segment structure. Specically, our new structure
is comprised of three GBUs with a total of six reportable segments:
Global Business Units Reportable Segments
Beauty Beauty
Grooming
Health and Well-Being Health Care
Snacks, Coffee and Pet Care
Household Care Fabric Care and Home Care
Baby Care and Family Care
Reportable % of % of Net
GBU Segment Net Sales* Earnings* Key Products Billion-Dollar Brands
 Beauty 30% 31% Cosmetics, Deodorants, Feminine Care, Always, Head & Shoulders,
Fine Fragrances, Hair Care, Personal Cleansing, Olay, Pantene, Wella
Skin Care
Health Care 12% 13% Oral Care, Personal Health Care, Pharmaceuticals Actonel, Crest, Oral-B
 Fabric Care and 24% 25% Fabric Care, Air Care, Dish Care, Surface Care Ariel, Dawn, Downy, Gain, Tide
Home Care
Baby Care and 16% 13% Diapers, Baby Wipes, Bath Tissue, Facial Tissue, Bounty, Charmin, Pampers
Family Care Paper Towels
Snacks, Coffee 6% 4% Coffee, Pet Food, Snacks Folgers, Iams, Pringles
and Pet Care
 Blades and Razors 7% 11% Men’s and Women’s Blades and Razors Gillette, Mach3
Duracell and Braun 5% 3% Batteries, Electric Razors, Small Appliances Braun, Duracell
* Percent of net sales and net earnings for the year ended June 30, 2007 (excluding results held in Corporate).