Proctor and Gamble 2008 Annual Report Download - page 11
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Please find page 11 of the 2008 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.P&G’sglobalscaleallowsustoquicklyowinnovationacross
developingcountries.Wecreateinnovationtomeetconsumer
needsinaparticularregionandthenquicklyowthattechnology
acrossmultiplecountriesfasterthancompetition.Forexample,
consumerswhowashclothingbyhandneedimprovedrinsing
withlesswater.Thisisacommonneedinmanydeveloping
countries.WelaunchedDownySingleRinseinMexico,and
havesinceexpandeditinto12countries,includingChina,
thePhilippines,andPeru.WedidthesamewithNaturella,an
innovativefeminineprotectionproductcreatedspecicallyfor
low-incomeconsumersinLatinAmerica;we’renowexpanding
NaturellathroughoutEasternEurope.We’vecreatedhighly
cost-effectivelaundrydetergentformulationsthatwe’ve
expandedrapidlyacrossdevelopingmarkets.We’vecreated
a“betterandcheaper”dentifriceformulationforCrestthat
wasrstintroducedinChinaandhasnowbeenexpandedinto
EasternEuropeanmarkets—andhasalsobeenintroducedas
animportantcostinnovationinseveraldevelopedmarkets.
We’reabletodoallthisbecausewe’vebuiltthesystemsand
go-to-marketscalethatallowustomoveanentireinnovation—
concept,brand,productformulation,package,marketing,and
in-storepresence—tomultiplemarketsalmostsimultaneously.
Withthisgeographicreachandcapability,indevelopedand
developingmarketsalike,wecanexpandinnovationaroundthe
worldandintomillionsofhomesveryquickly.
We’vebuiltP&G’sbusinessmodelaroundinnovationbecause
it’stheprimarydriverofsuperiorconsumervalueandprotable
organicsalesgrowthintheconsumerproductsindustry.The
companiesthatleadinnovationaregrowthcatalystsandgenerally
captureasubstantialportionofthegrowththeystimulate.
Idon’tknowofacompanythathassustainedgrowthand
industryleadershipoverthelongtermthathasnotalsobeen
theinnovationleader.
Innovationisespeciallyimportantintougheconomicperiods.
Consumerswillcontinuetobuypremium-pricedproductsas
longasthey’recondentthey’regettingvaluefortheirmoney.
Thisiswhyinnovationissoimportant.Priceisanelementof
value,buttherealdriverofvalueperceptionisrelativepricing,
notabsolutepricing,combinedwithproductperformanceand
brandequity.Innovationdrivesvalue.Itdifferentiatesour
brandsintheheartsandmindsofconsumers.Itenablescategory
leadership.Itstimulatesgrowthandpreventscommoditization
ofthecategoriesinwhichwecompete.Itdrivespremium
pricingandhighergrossandoperatingmargins.
ThisrealityplaystoP&Gstrengthsasaninnovator.Weinnovate
morebroadlythananyothercompanyinourindustry.Weinvest
moreininnovationandmarketingsupport.Webringaricher
mixofinnovationtomarketwithgreaterdisciplineandstrong
leadership.We’vedesignedaninnovationcapabilitythatis
unmatchedintheconsumerproductsindustry.
Mostimportantofall,P&Gersaroundtheworldseeinnovation
astheirjob.Theylookforopportunitiestoinnovateinevery
partofthebusiness.Consumerresearchersaredeveloping
innovativenewwaystolearnfromconsumers.Marketersare
ndingnewwaysandnewplacestoengageconsumers.
TechniciansoperatinglinesinP&Gplantsarecreatinginnovative
ideasformakingproductsbetter,fasterandcheaper.Innovation
hasalwaysbeenattheheartofP&G’sbusinessmodel,but
todayit’snottheprovinceofonlyoneortwofunctionswithin
theCompany.Innovationisthefocusofourentireorganization.
P&G’sinnovationcapabilityisstrongerandmorerobusttoday
thanatanytimeintheCompany’shistory—andthisiswhyI’m
condentinnovationwillcontinuetobetheprimarydriverof
sustainablesalesandearnings-per-sharegrowthatoraheadof
P&G’slong-termtargets.
P&Gisdesignedtoinnovate,andtogrow.
ChairmanoftheBoard
andChiefExecutiveOfcer
August12,2008
TheProcter&GambleCompany 9