Proctor and Gamble 2008 Annual Report Download - page 6
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Please find page 6 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.OnJune4,2008,weannouncedouragreementtomergeP&G’s
coffeebusinesswithTheJ.M.SmuckerCompany.Theagreement
maximizestheafter-taxvalueofthecoffeebusinessforP&G
shareholdersandminimizesearnings-per-sharedilutionversus
otheralternatives.Weexpecttocompletethetransactionduring
thesecondquarterofscal2009.
Thisisstrongperformance,butthechallengeofsustaining
growthisgreatertodaythanatanytimeinthepast50years.
Commodityandenergycostscontinuetoriseforcompanies.
Consumersarefacinghigherfoodandgasprices,declining
homevalues,andrisinglevelsofunemployment.Thequestion
shareholdersandprospectiveinvestorsareaskingis:”Howwill
P&Gsustaingrowthintoday’schallenginganduncertain
economicenvironment?”
&
Innovationisat
theheartofP&G’sbusinessmodel.Itistheprimarywaywe
delightconsumers,createvaluewithretailpartners,andcreate
newbusinessmodelstodeliverconsistent,sustainablegrowthat
oraheadoftheCompany’sgoals.
Alotofcompaniestalkaboutinnovation,butP&Ghas
demonstratedthecapability—overdecades—toinnovate
consistently,reliablyandsuccessfully.Wehavealonglistof
innovationrstsinourindustry:
Tidewastherstheavy-dutylaundrydetergent
•
Crest,therstuoridetoothpasteclinicallyproventoprevent•
toothdecay
Downy,therstultra-concentratedrinse-addfabricsoftener
•
PertPlus,therst2-in-1shampooandconditioner•
Head• &Shoulders,therstpleasant-to-useshampooeffective
againstdandruff
Pampers,therstaffordable,mass-marketeddisposablediaper
•
Bounty,therstthree-dimensionalpapertowel•
Always,therstfeminineprotectionpadwithaninnovative,•
dry-weavetopsheet.
Febreze,therstfabricandaircareproductsthatactually
•
removeodorsfromfabricsandtheair
CrestWhiteStrips,therstpatentedin-hometeethwhitening
•
technology
P&Gcontinuestobeoneofthefewcompaniesinourindustry
thatcreatesnewcategoriesandbrands,newperformance
standards,andnewdenitionsofconsumervalue.Swifferand
Febrezecreatedentirelynewproductcategories.CrestPro-Health,
OlayRegeneristandDenity,PampersBabyStagesof
Development,andTidewithBleachredenedhighperformance
intheircategories.Olayinnovationhascreatednewconsumer
experiencesthatareasgoodas—orbetterthan—several-
hundred-dollardepartmentandspecialtystorebrands.
Weinnovatesoconsistentlyacrossourdiverseportfolioof
businesses,andsoconsistentlyovertime,becausewe’ve
createdauniquedesignforinnovationatP&G.
1.Webroadly.
2.Weatindustry-leadinglevels.
3.Wewithdiscipline.
4.Wethatbuildsconsumertrust
andloyaltyovertime.
5.Wewithglobalbrandsandan
outstandingteamofinnovationleaders.
Thisintegrated,end-to-endapproachiscomplementedby
P&G’sglobalscaleandscope,whichisunrivaledinourindustry.
TheresultisaninnovationdesignthatenablesP&Gtowinwith
consumersandretailcustomersandtogeneratesustainable
long-termgrowthandshareholdervalue.
Wedeneinnovationbroadly.Weinnovateineveryareawhere
ourbrandstouchconsumers’lives:thepackageandproduct,
theshoppingexperience,thein-homeproductusageexperience,
andeveryaspectofcommunication.Wealsocreateinnovative
newbusinessmodelsandorganizationalstructures.Byinnovating
sobroadly,wegettoseemoreinnovationopportunitiesandto
leveragemoreinnovationresourcesthanmorenarrowlyfocused
competitors.
OurFamilyCarebusinessisagoodexample.Twentyyearsago,
wecreatedaproprietarypaper-makingprocessthatenablesusto
producethestrongest,softest,mostabsorbentpapertowelsand
tissuesonthemarket.ButourapproachtoinnovationinTissues
andTowelsisdrivenbyconsumers,notbythetechnology.
4 TheProcter&GambleCompany