Proctor and Gamble 2009 Annual Report Download - page 8

We will focus on growing market share profitably across all
these businesses. As economies recover, I am confident we will
be positioned to extend our leading market share positions.
2) Winning with underserved and unserved consumers
The second growth strategy is new — to build our business with
underserved and unserved consumers. We’ll do this in three ways.
We are increasing our presence in developing markets.
The opportunities here are boundless. Eighty-six percent of the
world’s population is in developing markets and we have
strong share positions in the most important of these markets.
In Blades and Razors, we’re #1 in the Central & Eastern Europe,
Middle East and Africa region, Latin America, Greater China
and developing Asia. In Shampoo and Diapers, we’re #1 or #2.
And in Laundry, Feminine Care and Oral Care, we are ranked
#1, #2 or #3 in market share.
We will continue to increase the percentage of total company
sales from these markets by building consumers’ awareness of
the performance, quality and value of our brands and making
our products more accessible and affordable for consumers.
We are extending our distribution systems to reach
more consumers through underserved retail channels.
We’re pursuing opportunities in four priority areas:
Drug, Pharmacy and Perfumery: This is a significant opportunity
across many parts of our business, and a strategic focus for
Beauty & Grooming.
High Frequency Stores: Already, high frequency stores would be
our single largest customer if they were a single retailer. They
are growing at rates equal to the modern retail trade and are
the main source of our products for the majority of developing-
market consumers.
Export Operations: This is another underdeveloped channel
with meaningful potential. It’s the primary way P&G reaches
consumers in newly emerging markets where P&G does not yet
have on-the-ground operations. This channel sets the stage for
more aggressive portfolio expansion as new economies develop.
E-commerce: Our “Consumer is boss” focus means we must be
available to consumers when and where they seek to research
or purchase P&G products. Increasingly, that’s online. We do
less than a billion dollars in online sales today, and we believe
we can increase that substantially over the next few years.
We see e-commerce as part of a broader effort to establish
online connections with consumers that build our brands and
our business with retail partners.
We are expanding brand and product portfolios.
A third action we are taking to serve more consumers is to
create broader and deeper product portfolios.
To do this, we will expand our categories vertically into the
premium end of our markets as we have done successfully
with Tide Total Care, Clairol Perfect 10, Gillette Fusion, Venus
Embrace, Olay Pro-X, Dawn Hand Renewal, Secret Clinical
Strength and Cascade Action Pacs. By bringing better-
performing, specially targeted products to market, we will
increase consumer value and drive category sales for retailers.
We will simultaneously expand our portfolio into the value-
priced segment. The successful launches of Mach3 disposable
razors in the U.S., Pampers Simply Dry diapers in Germany and
Naturella feminine care pads into the Arabian Peninsula are
three recent examples.
We will also expand our core brands horizontally into adjacent
product segments. Febreze Candles, Bounce Dryer Bar and Tide
Stain Release are recent examples of how we have done this.
As we stretch our portfolio vertically and horizontally, we will
touch more consumers’ lives and offer more opportunities to
improve each consumer’s life.
3) Develop faster-growing, structurally attractive
businesses with global leadership potential
Our third growth strategy for the decade ahead is to continue
to grow and develop faster-growing, structurally attractive
businesses. We’re concentrating on opportunity areas in the
beauty and health market segments and several household care
categories. With this strategy, we will continue to shift P&G’s
business portfolio toward these advantaged categories.
WHERE TO PLAY:
1. Grow leading, global brands and core categories
2. Build business with underserved and unserved consumers
3. Continue to grow and develop faster-growing, structurally
attractive businesses with global leadership potential
HOW TO WIN:
1. Drive Core P&G Strengths in consumer understanding,
brand building, innovation and go to market
2. Simplify, Scale and Execute for competitive advantage
3. Lead change to win with consumers and customers
P&G Growth Strategy: Touching and improving more consumers’ lives in more parts of the world more completely
6The Procter & Gamble Company