Proctor and Gamble 2010 Annual Report Download - page 34

32 The Procter & Gamble Company Management’s Discussion and Analysis
Our market environment is highly competitive with global, regional
and local competitors. In many of the markets and industry segments
in which we sell our products, we compete against other branded
products as well as retailers’ private-label brands. Additionally, many of
the product segments in which we compete are differentiated by price
(referred to as super-premium, premium, mid-tier value and low-tier
economy products). Generally speaking, we compete with super-
premium, premium and mid-tier value products and are well positioned
in the industry segments and markets in which we operate — often
holding a leadership or significant market share position.
Organizational Structure
Our organizational structure is comprised of three Global Business
Units (GBUs), along with Global Operations, Global Business Services
(GBS) and Corporate Functions (CF).
GLOBAL BUSINESS UNITS
Our three GBUs are Beauty and Grooming, Health and Well-Being
and Household Care. The primary responsibility of the GBUs is to
develop the overall strategy for our brands. They identify common
consumer needs, develop new product innovations and upgrades and
build our brands through effective commercial innovations and
marketing plans.
Under U.S. GAAP, the business units comprising the GBUs are aggre-
gated into six reportable segments: Beauty; Grooming; Health Care;
Snacks and Pet Care; Fabric Care and Home Care; and Baby Care and
Family Care. The following provides additional detail on our GBUs
and reportable segments and the key product and brand composition
within each.
Beauty and Grooming
Beauty: We are a global market leader in the beauty category. Most
of the beauty markets in which we compete are highly fragmented
with a large number of global and local competitors. In female
beauty, we compete with a wide variety of products, ranging from
cosmetics to female blades and razors to skin care. Our largest female
beauty brand is Olay, which is the top facial skin care brand in the
world with approximately 10% of the global market share. In hair
care, we compete in both the retail and salon professional channels.
We are the global market leader in the retail hair care market with
over 20% of the global market share behind Pantene and Head &
Shoulders. In the prestige channel, we compete primarily with prestige
fragrances and the SK-II brand. We are one of the global market
leaders in prestige fragrances, primarily behind the Dolce & Gabbana,
Gucci and Hugo Boss fragrance brands.
Grooming: We hold leadership market share in the male blades and
razors market on a global basis and in nearly all of the geographies in
which we compete. Our global male blades and razors market share
is approximately 70%, primarily behind the Gillette franchise including
Fusion and Mach3. We also compete in male personal care with
deodorants, face and shave preparation, hair and skin care and
personal cleansing products. Our beauty electronics and small home
appliances are sold under the Braun brand in a number of markets
around the world, where we compete against both global and
regional competitors. Our primary focus in this area is electric hair
removal devices, such as electric razors and epilators, where we hold
approximately 30% of the male shavers market and 50% of the
female epilators market.
Health and Well-Being
Health Care: We compete in oral care, feminine care and personal
health. In oral care, there are several global competitors in the market,
and we have the number two market share position with approximately
20% of the global market. We are the global market leader in the
feminine care category with about 35% of the global market share.
In personal health, we are the market leader in nonprescription
heartburn medications behind Prilosec OTC and in respiratory treat-
ments with Vicks.
GBU Reportable Segment
% of
Net Sales*
% of Net
Earnings* Categories Billion Dollar Brands
BEAUTY AND GROOMING Beauty 24% 23% Cosmetics, Female Antiperspirant and
Deodorant, Female Personal Cleansing,
Female Shave Care, Hair Care, Hair Color,
Hair Styling, Pharmacy Channel, Prestige
Products, Salon Professional, Skin Care
Head & Shoulders, Olay,
Pantene, Wella
Grooming 10% 13% Beauty Electronics, Home Small
Appliances, Male Blades and Razors,
Male Personal Care
Braun, Fusion, Gillette,
Mach3
HEALTH AND WELL-BEING Health Care 14% 16% Feminine Care, Gastrointestinal,
Incontinence, Rapid Diagnostics,
Respiratory, Toothbrush, Toothpaste,
Water Filtration, Other Oral Care
Always, Crest, Oral-B
Snacks and Pet Care 4% 3% Pet Care, Snacks Iams, Pringles
HOUSEHOLD CARE Fabric Care and
Home Care
30% 28% Additives, Air Care, Batteries, Dish Care,
Fabric Enhancers, Laundry, Surface Care
Ace, Ariel, Dawn, Downy,
Duracell, Gain, Tide
Baby Care and
Family Care
18% 17% Baby Wipes, Diapers, Paper Towels,
Tissues, Toilet Paper
Bounty, Charmin,
Pampers
* Percent of net sales and net earnings from continuing operations for the year ended June30, 2010 (excluding results held in Corporate).