Proctor and Gamble 2014 Annual Report Download - page 26

24 The Procter & Gamble Company
Fabric Care and Home Care: This segment is comprised of
a variety of fabric care products, including: laundry
detergents, additives and fabric enhancers; home care
products, including dishwashing liquids and detergents,
surface cleaners and air fresheners; and batteries. In fabric
care, we generally have the number one or number two share
position in the markets in which we compete and are the
global market leader, with over 25% global market share,
primarily behind our Tide, Ariel and Downy brands. Our
global home care market share is approximately 20% across
the categories in which we compete. In batteries, we have
over 25% global battery market share, behind our Duracell
brand.
Baby, Feminine and Family Care: In baby care, we
compete mainly in diapers, pants and baby wipes, with over
30% 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 more than
$10 billion. We are the global market leader in the feminine
care category with over 30% global market share, primarily
behind Always. Our family care business is predominantly a
North American business comprised largely of the Bounty
paper towel and Charmin toilet paper brands. U.S. market
shares are approximately 45% for Bounty and over 25% for
Charmin.
Global Operations
Global Operations is comprised of our Sales and Market
Operations (SMO), which is responsible for developing and
executing go-to-market plans at the local level. The SMO
includes dedicated retail customer, trade channel and
country-specific teams. Through June 30, 2014, it was
organized along five geographic regions: North America,
Western Europe, Central & Eastern Europe/Middle East/
Africa (CEEMEA), Latin America and Asia, which is
comprised of Japan, Greater China and ASEAN/Australia/
India/Korea (AAIK). Throughout MD&A, we reference
business results in developing markets, which we define as
the aggregate of CEEMEA, Latin America, AAIK and
Greater China, and developed markets, which are comprised
of North America, Western Europe and Japan. Effective July
1, 2014, our SMO reorganized under five revised regions,
comprised of North America, Europe, Latin America, Asia,
and India/Middle East/Africa (IMEA).
Global Business Services
GBS provides technology, processes and standard data tools
to enable the GBUs and the SMO to better understand the
business and better serve consumers and customers. The
GBS organization is responsible for providing world-class
solutions at a low cost and with minimal capital investment.
Corporate Functions
CF provides Company-level strategy and portfolio analysis,
corporate accounting, treasury, tax, external relations,
governance, human resources and legal, as well as other
centralized functional support.
STRATEGIC FOCUS
We are focused on strategies that we believe are right for the
long-term health of the Company with the objective of
delivering total shareholder return in the top one-third of our
peer group.
We are focusing our resources on our leading, most
profitable categories and markets:
• Strengthening core categories, such as baby care and
fabric care, and core markets, such as the U.S., to grow
these businesses.
• Investing in developing markets on the categories and
countries with the largest size of prize and highest
likelihood of winning.
• Narrowing and refocusing the Company's portfolio to
compete in categories and brands that are structurally
attractive and that play to P&G strengths and looking at
alternatives to partner, divest or discontinue the balance.
This will enable us to allocate resources to leading
brands - marketed in the right set of countries, channels,
and customers - where the size of the prize and
probability of winning is highest.
Innovation has always been - and continues to be - P&G's
lifeblood. To consistently win with consumers around the
world across price tiers and preferences and to consistently
win versus our best competitors, each P&G product category
needs a full portfolio of innovation, including a mix of
commercial programs, product improvements and game-
changing innovations.
Productivity is a core strength for P&G, which creates
flexibility to fund our growth efforts and deliver our
financial commitments. We have taken significant steps to
accelerate productivity and savings across all elements of
costs, including cost of goods sold, marketing expense and
non-manufacturing overhead.
Finally, we are focused on improving execution and
operating discipline in everything we do. Operating
discipline and execution have always been - and must
continue to be - core capabilities and competitive advantages
for P&G.
At current market growth rates, the Company expects the
consistent delivery of the following annual financial targets
will result in total shareholder returns in the top third of the
competitive peer group:
• Organic sales growth modestly above market
growth rates in the categories and geographies in
which we compete;
• Core EPS growth of high single digits; and
• Free cash flow productivity of 90% or greater.