Proctor and Gamble 2014 Annual Report Download - page 5

Gillette* is once again changing the face of shaving with
Gillette Fusion ProGlide* with FlexBall* Technology, which allows
each cartridge to make maximum contact over contours† and get virtually
every hair
— addressing a top shaving need mentioned by 8 out of 10 men.
†vs. Fusion
Pampers* continues to upgrade the comfort, absorbency and
design of its line-up. Pampers Swaddlers
— the #1 choice† of
hospitals
— recently expanded into sizes 4, 5 and 6, and now
holds a 10% value share of the U.S. diaper category.
†Based on sales of newborn hospital diapers
customers from many different points — as if they were coming
from different companies
— to consolidating shipping into fewer
distribution centers. These centers are located strategically closer
to customers and key population centers in the U.S., enabling
about % of the business to be within one day or less of the
store shelf and the shopper. This will allow both P&G and our
customers to optimize inventory levels while improving service
and product availability for consumers.
To manage and operate this simpler brand portfolio, we have
made several important organization design choices
— four
industry-based sectors; streamlining business units and selling
operations; recombining four brand building functions into one;
and reducing hierarchy, with all of the business unit and selling
operations leaders reporting to the CEO. Each of these changes
reduces complexity, and creates clearer accountability for
performance and results. We’re just beginning to benefi t from
the productivity opportunities that these organization changes
create. We’ve reduced roles by %
— more than % above the
original objective, and two years sooner than planned. This is
strong progress, and we see more opportunity ahead.
We’re starting to improve marketing effi ciency and effectiveness
through an optimized media mix with more digital, mobile,
search and social presence, improved message clarity and
greater savings in non-media spending. We believe we have
more opportunity to improve marketing effi ciency
— in both
media and non-media areas
— while increasing overall marketing
effectiveness and improving sales growth.
A Company Driven by Innovation
When we get brand and product innovation right, source and
sell brands and products effectively and effi ciently, we grow and
drive meaningful value creation. We generate higher sales and
profi t per unit, which enables us to capture a greater share of
the value
— profi t and cash — where we choose to compete.
It is this share of value
— the share of profi t generated in a
category
— that we want to capture. We have about a % share
of U.S. laundry market sales, but earn approximately % of the
profi t and cash generated in the category. We have a nearly %
share of blades and razors sales globally
— and a % share of
value or profi t. We earn a higher share of profi t as a direct result
of our innovation-focused business strategy and business models.
We see signifi cant
savings potential ahead
across all spending
elements
— cost of goods
sold, marketing spending,
and overhead
— for the
next several years.
The Procter & Gamble Company 3