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Publication Date: 30 Jun 2011
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The Procter & Gamble Company
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The Procter & Gamble Company © Datamonitor
The Procter & Gamble Company
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview..............................................................................................4 Key Facts...............................................................................................................4 Business Description...........................................................................................5 History...................................................................................................................6 Key Employees...................................................................................................10 Key Employee Biographies................................................................................12 Major Products and Services............................................................................18 Revenue Analysis...............................................................................................21 SWOT Analysis...................................................................................................23 Top Competitors.................................................................................................30 Company View.....................................................................................................31 Locations and Subsidiaries...............................................................................39
The Procter & Gamble Company © Datamonitor
The Procter & Gamble Company
The Procter & Gamble Company (P&G or ‘the company’) is one of the world's largest consumer goods companies. It markets branded products in the beauty, health, fabric, home, baby, family, and personal care product categories. The company operates in the Americas, Europe and Asia. It is headquartered in Cincinnati, Ohio, and employs about 127,000 people. The company recorded revenues of $78,938 million during the financial year ended June 2010 (FY2010), an increase of 2.9% over 2009. The operating profit of the company was $16,021 million in FY2010, an increase of 4.2% over 2009. The net profit was $12,736 million in FY2010, a decrease of 5.2% over 2009.
Head Office The Procter & Gamble Company One Procter & Gamble Plaza Cincinnati Ohio 45202 USA 1 513 983 1100 1 513 983 9369 http://www.pg.com
Phone Fax Web Address
Revenue / turnover 78,938.0 (USD Mn) Financial Year End Employees New York Ticker June 127,000 PG
The Procter & Gamble Company © Datamonitor
trade channel and country-specific teams. personal cleansing and skin care. The MDO includes dedicated retail customer. deodorants. It is organized along five geographic units: North America. The Beauty GBU includes the beauty and the grooming businesses. It is further organized into three sub-units. external relations. The baby care and family care business includes baby wipes. oral care and personal health care. the company's organizational structure is comprised of four divisions. The fabric care and home care business includes air care. health care. facial tissue and paper towels. The snacks and pet care business includes pet food and snacks. Beauty. governance. batteries. face and shave products. fabric care and surface care. bath tissue. and Asian region. hair care. corporate accounting. grooming. Greater China and ASEAN/Australia/India/ Korea (AAIK). Additionally. Central & Eastern Europe/Middle East/Africa (CEEMEA). Western Europe.The grooming business includes blades and razors. The Procter & Gamble Company © Datamonitor Page 5 . GBUs of P&G mainly focus on consumers. Health and Well-Being. Europe. CF provides the company-level strategy and portfolio analysis. and Household Care. Latin America and Asia which comprises Japan. GBS provides technology. snacks and pet care. and the snacks and pet care businesses. dish care. beauty electronics. The Health and Well-Being GBU includes the health care. MDO is responsible for developing go-to-market plans at the local level. The Household Care GBU includes the fabric care and home care. fabric care and home care. Global Operations is comprised of P&G's Market Development Organization (MDO). Global Business Units (GBUs). Global Business Services (GBS) and Corporate Functions (CF). prestige fragrances. the Middle East and Africa (EMEA). and baby care and family care. and the baby care and family care businesses.The Procter & Gamble Company Business Description BUSINESS DESCRIPTION The Procter & Gamble Company (P&G or ‘the company’) is a global manufacturer and marketer of branded consumer products. human resources and legal. The company’s reportable segments are classified into six divisions. namely: beauty. Global Operations. The beauty business is comprised of cosmetics. The health care business includes feminine care. The company markets its products in over 180 countries spanning Americas. and small home appliances. brands and innovations around the world. diapers. treasury. processes and standard data tools to enable the GBUs and the MDO to better understand the business and better serve consumers and customers. as well as other centralized functional support.
Always/Whisper. to sell its growing line of toilet goods in 1943. In the following year. In the same year. Ohio. a detergent manufacturer in 1954.The company introduced Dreft. a manufacturer of toilet tissue. P&G created its first division. towels and napkins in 1957. In 1988. the first synthetic detergent developed for household use. in 1983. which marked the company's foray into the largest consumer market in the world. the company established an overseas division to manage its growing international business. in 1933. P&G entered the consumer paper products business with the acquisition of Charmin Paper Mills. During 1917-1918. In the following year. the drug products division. the company entered the cosmetics and fragrances category with the acquisition of Noxell and its CoverGirl. P&G began operating in Mexico.The Procter & Gamble Company History HISTORY William Procter and James Gamble established The Procter & Gamble Company (P&G or ‘the company’) in 1837 as a soap and candle company in Cincinnati. P&G was selling more than 30 different types of soap. The new company was called Procter & Gamble Sunhome Company. In 1915. in 1930. The company began operations in Europe by leasing a small plant in France from the Fournier-Ferrier Company. the company's first operations in the Far East. The company introduced feminine protection product. liquid Tide was launched. It entered the coffee business with the acquisition of Folgers Coffee in 1963. In the following year. the company established the chemicals division to formalize research procedures and develop new products. P&G increased its presence in the European personal care category with the acquisition of the Blendax line of products. Manufacturing and sales of the company's products in Japan began through the acquisition of the Nippon Sunhome Company in 1973. the first detergent-based shampoo. P&G created a market research department in 1924 to study consumer preferences and purchasing habits. The company expanded its international presence with the acquisition of the Philippine Manufacturing Company. including Ivory. P&G announced a joint venture to manufacture products in China. Two years later. owners of Vicks respiratory care and Oil of Olay product lines in 1985. P&G expanded its over-the-counter and personal health care business with the acquisition of Richardson-Vicks. P&G built a manufacturing facility in Canada. Two years later. P&G discontinued candle manufacturing in the 1920s. Tide was introduced in 1946. P&G's health and personal care business grew with the introduction of Prell shampoo. its first subsidiary in Latin America. Noxzema. and Clarion products. P&G also expanded its presence in the male personal care market with the acquisition of Shulton's Old Spice product line in 1990. By 1890. including Blend-a-Med and Blendax toothpastes. its first outside the US. the company introduced Camay in response to the growing popularity of perfumed beauty soaps. The Procter & Gamble Company © Datamonitor Page 6 . P&G established its first overseas subsidiary with the purchase of Thomas Hedley & Sons Company. In 1948. the UK. P&G entered the hair care business with Drene.
P&G reorganized its operations internally. a leader in male grooming products. outside the cardiology. In 2007.The Procter & Gamble Company History The company entered the European tissue and towel market with the acquisition of the Germany-based company. the company divested its Western European tissue/towel business to SCA. This provided P&G with strong commercial capabilities in Spain. a private US based manufacturer and marketer of lighting products in 2006. In 2003. Inverness contributed its related consumer diagnostic assets. manufacturing. Latin America. The proposed merger with the Gillette Company was later cleared by the European Commission and was finalized later the same year. a leader in premium pet foods in 1999. and Europe/Middle East/Africa.The acquisition of Clairol from Bristol-Myers Squibb. In 2007. diabetes and oral care fields. Dunkin' Brands and P&G signed an agreement to launch Dunkin' Donuts coffee at retail. P&G acquired controlling interest in a leading professional hair care company. other than its manufacturing and core intellectual property The Procter & Gamble Company © Datamonitor Page 7 . The company announced its agreement to acquire the commercial business of Grupo Vita in Spain in 2004. During the same year. In the same year. Wella. Later in the year. P&G Coffee was responsible for distributing Dunkin' Donuts packaged coffee to grocery stores. Further. part of P&G. Schickedanz in 1994. North America. HDS Cosmetics Lab manufactures and markets Doctor's Dermatologic Formula (DDF) skin care products. In the same year. a global consumer goods and paper company. P&G added Giorgio Beverly Hills to its fine fragrance business and also re-entered the South African market following the lifting of US sanctions against investment in South Africa. The company entered the global pet health and nutrition business by acquiring Lams Company. the company acquired HDS Cosmetics Lab from North Castle Partners. During the same year. P&G finalized the sale of its juice drink brands. marketing and sale of existing and to-be-developed consumer diagnostic products. Inverness Medical Innovations and P&G announced the completion of the 50/50 joint venture for the development. in which the Gillette Blade and Razor and Braun businesses became part of P&G Beauty and Health. Sunny Delight and Punica. P&G realigned its business units into three global business units (GBUs): Beauty Care. The company opened its largest Gillette blades and razors operations facility in Poland in 2006. Asia. Global Health & Well Being. later in 2003. In the following year. a private equity firm. mass merchandisers. Duracell launched new rechargeable cells designed to meet the growing demands of high-drain devices like digital cameras. and Household Care. a private equity company. It added dental floss to its product portfolio by purchasing the Glide floss business from W L Gore & Associates. club stores and other consumer retail channels across the US. provided the company with a number of established hair color and hair care brands. in 2001. In early 2005. acquired Garrity Industries. and the Duracell battery business joined P&G Household Care. Duracell. P&G gained Food and Drug Administration (FDA) approval for Actonel (risedronate sodium tablets) for the prevention and treatment of postmenopausal osteoporosis (PMO) and glucocorticoid-induced osteoporosis (GIO). to JW Childs Associates. In the same year. P&G started managing its business through four geographic regions. In the following year. the company entered into an agreement to acquire the Gillette Company.
Also in 2008. Towards the end of 2008. P&G voluntarily recalled its Pringles Restaurant Cravers Cheeseburger potato crisps and Pringles Family Faves Taco Night potato crisps to protect consumers from potential Salmonella exposure. During the same year. for the infringement of its Herbal Essences trade dress. P&G reached a settlement with Kraft Foods regarding P&G patents to plastic packaging for roast and ground coffee. a leading specialty pharmaceutical company. voluntarily recalled three lots of its Vicks Sinex nasal spray in the US. in response to a recommendation from the Food & Drug Administration (FDA) to the food industry. P&G filed a patent lawsuit against Kraft Foods. alleging that P&G's advertisement for its Pulsonic line of electric shavers is false and misleading. P&G. P&G completed the sale of its Folgers coffee business to the JM Smucker Company. Germany and the UK.1 billion. Zirh. The financial terms and the details of this settlement were not disclosed. the company acquired the high-end male grooming brand. which includes high-end hair care products and salons. In the following month. Later in the year. P&G and Fruit of the Earth reached a settlement in the lawsuit P&G filed in December 2007 against Fruit of the Earth for trade dress and patent infringement on its Olay Regenerist brand. Also in the year. Fruit of the Earth recognized the validity of P&G's rights in the Olay Regenerist Trade Dress and certain of P&G's patent rights identified in the lawsuit. Hindustan Unilever Limited filed a suit against P&G in the Calcutta High Court for the alleged infringement of trademark of its product Sunlight by Tide of P&G. In 2009. P&G sold its global pharmaceuticals business to Warner Chilcott.The Procter & Gamble Company History assets. for an up-front cash payment of $3. P&G filed a lawsuit against Blue Cross Laboratories of California. The settlement covered pending cases related to this matter between P&G and Kraft Foods. P&G and Palomar Medical Technologies (Palomar). to the joint venture. won a patent infringement lawsuit filed against Teva Pharmaceuticals for osteoporosis therapy. In the same year. way back in 2003. in 2009. and P&G acquired its interest in the joint venture for a cash payment of approximately $325 million. This new agreement will replace the Development and License Agreement entered into by Palomar and the Gillette Company. Actonel. In March 2010. P&G voluntarily recalled its Vicks DayQuil Cold & Flu 24-Count LiquiCaps Bonus Pack in the US. Koninklijke Philips Electronics (Philips) filed a lawsuit against P&G. entered into a non exclusive License Agreement to exploit home use light based hair removal devices for women. Later in the year. manufacturer of the Maxwell House Coffee brand. The Procter & Gamble Company © Datamonitor Page 8 . P&G filed a lawsuit against Fruit of the Earth for the infringement of various patents of its Olay Regenerist trade dress. In 2008. Further in 2009. a wholly owned subsidiary of P&G. Fruit of the Earth also agreed to revise its product offerings. In the same month. The company. P&G acquired Frederic Fekkai & Co. The remaining terms of the agreement were not disclosed. Further. In the same year. The lawsuit alleged that the new plastic container for Maxwell House coffee directly infringes key P&G patents on Folgers Coffee.
In March 2011. Also in the month. P&G filed a lawsuit against Vi-Jon. High Ridge Brands purchased the rights to the Zest brand in the US. after which the payments return to $1. a complete product lineup of floor care solutions. The company announced a Joint Development Agreement (JDA) with Pursuit Dynamics in November 2010 for developing specific applications using the PDX reactor technology in a wide range of production processes at P&G. Palomar Medical Technologies announced the amendment to its non-exclusive license agreement with P&G. the company voluntarily recalled a small percentage of 1-liter bottles of Scope Original Mint and Scope Peppermint mouthwash with malfunctioning child-resistant caps in the US and Canada. eStore. During the same month. acquired Zest brand from P&G in January 2011.The Procter & Gamble Company History P&G launched a new online shopping site.25 million per calendar quarter if no product has been launched. During the same month. P&G opened its new Box Elder. The company made a voluntary recall of 12 shades of Clairol Natural Instincts in the US. a private-label manufacturer and distributor of mouthwash. to characterize the systems biology of various skin conditions including skin aging. Utah Family Care plant. Germany. Under the amended license agreement. Canada and Puerto Rico. the company entered into a research partnership with the Institute for Systems Biology. P&G announced the expansion of its renewable energy portfolio by unveiling a wind turbine at pet care plant in Coevorden. In the following month. P&G completed the acquisition of the Ambi Pur Brand from Sara Lee Corporation in July 2010. the company entered into an agreement to acquire Natura Pet Products. the company entered into a co-promotion agreement with Somaxon Pharmaceuticals for Silenor (doxepin) drug. for the US consumers in May 2010. Procter & Gamble Professional launched the P&G ProLine Floor Care System. the company recalled specific lots of its Iams canned cat food in North America. In the following month.25 million to $1 million for the quarter ending December 2010 and thereafter to $2 million per year for an agreed period. In June 2010. High Ridge Brands. a privately-held pet food business. a portfolio company of Brynwood Partners. In August 2010. Furthermore. During the same month. The lawsuit alleges that Vi-Jon was violating P&G's intellectual property by manufacturing and selling its private label mouthwash product to retailers. P&G recalled its 4-Hour Decongestant Nasal Spray distributed in the US. P&G and Palomar agreed to reduce pre-commercial launch calendar quarterly payments from $1. in April 2011. the company announced the introduction of a new line-up of one-click faucet mount filtration systems. Diamond Foods and P&G signed a definitive agreement to merge the P&G’s Pringles business into Diamond Foods. In the following month. new approved drug for insomnia treatment. Canada and the Caribbean markets. Netherlands and extending its commitment to solar energy with the installation of solar panels at its beauty and grooming plant in Cologne. in the US District Court for the Southern District of Ohio. The Procter & Gamble Company © Datamonitor Page 9 . In February 2011. in April 2011.
Global Operations Vice Chairman. Mesquita Charles E. Global Home Care Senior Management Group President. Woertz Ernesto Zedillo Werner Geissler E. Braly Kenneth I. Moeller Bruce Brown Charles V. Bishop Giovanni Ciserani Job Title Chairman. Whitman Mary Agnes Wilderotter Patricia A. Western Europe and Global Discounter and Pharmaceutical Channels Group President. James McNerney Johnathan A. Pierce Senior Management Group President. Global Beauty and Senior Management Grooming Vice Chairman. Rodgers Margaret C. Chenault Scott D. Taylor Jorge S. Global Family Care The Procter & Gamble Company © Datamonitor Page 10 .The Procter & Gamble Company Key Employees KEY EMPLOYEES Name Robert A. Steele Jon R. Global Feminine Care Group President. Global Female Beauty Senior Management Senior Management Senior Management Senior Management Senior Management Senior Management Virginia Drosos David S. Global Oral Care Senior Management Senior Management Mary Lynn Ferguson-McHugh Group President. Bergh Steven D. Shirley Robert A. Global Male Grooming. Cook Susan Desmond-Hellmann W. Dimitri Panayotopoulos Edward D. President and Chief Executive Officer Director Director Director Director Director Director Director Director Director Director Vice Chairman. Global Fabric Care Senior Management Group President. McDonald Angela F. Global Household Care Board Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board Senior Management Senior Management Compensation 13115228 USD 82261 USD 251256 USD 258446 USD 259334 USD 245158 USD 247800 USD 270808 USD 258714 USD 5679308 USD 6343477 USD 5011454 USD 4690344 USD 3257561 USD Vice Chairman. Beauty and Grooming Group President. Health Care Strategy Chief Financial Officer Chief Technology Officer Group President.
Global Female Beauty. Beauty and Grooming Global Product Supply Officer Global Human Resources Officer Board Senior Management Senior Management Compensation Colleen E. Asia Group President. Keith Harrison Moheet Nagrath Filippo Passerini Senior Management Senior Management Senior Management President.The Procter & Gamble Company Key Employees Name Deborah A. CEEMEA and Global High Frequency Store Channel President . Jay R. Global Business Services Senior Management and Chief Information Officer The Procter & Gamble Company © Datamonitor Page 11 . Henretta Laurent L. Philippe Job Title Group President.
She also serves as the Chairman. Chenault Board: Non Executive Board Job Title: Director Since: 2008 Age: 59 Mr. Chenault has been a Director at P&G since 2008. He is currently the Chairman and Chief Executive Officer of the American Express Company. President and Chief Executive Officer at P&G. President and Chief Executive Officer Since: 2010 Age: 57 Mr. Mr. He is also a Director of Xerox Corporation. Braly Board: Non Executive Board Job Title: Director Since: 2009 Age: 49 Ms. Scott D.The Procter & Gamble Company Key Employee Biographies KEY EMPLOYEE BIOGRAPHIES Robert A. Braly has been a Director at P&G since 2009. McDonald is the Chairman. Cook Board: Non Executive Board Job Title: Director Since: 2000 Age: 58 The Procter & Gamble Company © Datamonitor Page 12 . President and Chief Executive Officer at Wellpoint. Chenault is also a Director of International Business Machines Corporation. McDonald Board: Executive Board Job Title: Chairman. McDonald has nearly 30 years of brand-building. Mr. global business unit and global operations leadership experience across P&G. Kenneth I. market development. Angela F.
Cook has been a Director at P&G since 2000. Rodgers is also a Director of Nike. James McNerney Board: Non Executive Board Job Title: Director Since: 2003 Age: 61 Mr. Cook is also a Director at eBay. Mr. McNerney also serves on the board of International Business Machines Corporation Johnathan A. Margaret C. He is the President and Chief Executive Officer of TV One. Whitman has been a Director at P&G since 2011. The Procter & Gamble Company © Datamonitor Page 13 . She is the former President and Chief Executive Officer of eBay. President and Chief Executive Officer of the Boeing Company. She is the Chancellor and Arthur and Toni Rembe Rock Distinguished Professor at University of California. He is the Chairman. Rodgers Board: Non Executive Board Job Title: Director Since: 2001 Age: 64 Mr. Whitman also serves on the board of Hewlett Packard Company. McNerney has been a Director at P&G since 2003. Whitman Board: Non Executive Board Job Title: Director Since: 2011 Age: 54 Ms. Ms. Susan Desmond-Hellmann Board: Non Executive Board Job Title: Director Since: 2010 Age: 53 Ms. W.The Procter & Gamble Company Key Employee Biographies Mr. Desmond-Hellmann has been a Director at P&G since 2000. Rodgers has been a Director at P&G since 2001. Mr. Mr. He is the Chairman of the Executive Committee at Intuit.
Geissler held positions of increasing responsibility in Brand and General Management. Patricia A. During his 30 years with the P&G.The Procter & Gamble Company Key Employee Biographies Mary Agnes Wilderotter Board: Non Executive Board Job Title: Director Since: 2009 Age: 55 Ms. Chief Executive Officer and President of Archer Daniels Midland Company. and Professor in the field of International Economics and Politics at Yale University. She is the Chairman. Global Operations Since: 2007 Age: 57 Mr. Global Operations at P&G since 2007. Woertz Board: Non Executive Board Job Title: Director Since: 2008 Age: 57 Ms. President and Chief Executive Officer of Frontier Communications Corporation. Wilderotter is also a Director of Xerox Corporation. Zedillo is also a Director of Alcoa and Citigroup. She is the Chairman. The Procter & Gamble Company © Datamonitor Page 14 . Werner Geissler Board: Senior Management Job Title: Vice Chairman. Geissler has been the Vice Chairman. Ernesto Zedillo Board: Non Executive Board Job Title: Director Since: 2001 Age: 58 Dr. Dr. Director of the Center for the Study of Globalization. He joined the company in 1979 as Brand Assistant in the Marketing department. Wilderotter has been a Director at P&G since 2009. Woertz has been a Director at P&G since 2008. He is the former President of Mexico. Ms. Mr. Zedillo has been a Director at P&G since 2001.
Prior to the acquisition. Shirley Board: Senior Management Job Title: Vice Chairman. Moeller Board: Senior Management Job Title: Chief Financial Officer Since: 2009 Age: 46 Mr. Robert A.The Procter & Gamble Company Key Employee Biographies E. Health Care Strategy at P&G since 2011. He joined P&G in 1976 as a Sales Representative. The Procter & Gamble Company © Datamonitor Page 15 . Jon R. Global Beauty and Grooming at P&G since 2008. He joined the company with the acquisition of Gillette. Moeller has been the Chief Financial Officer at P&G since 2009. Global Household Care Since: 2007 Age: 58 Mr. Presently. He began his career with P&G in 1977 as a Salesman in the UK. Mr. Mr. Germany and Hong Kong. Panayotopoulos has been the Vice Chairman. Health Care Strategy Since: 2011 Age: 55 Mr. Mr. Steele Board: Senior Management Job Title: Vice Chairman. Steele serves on the Boards of the Kellogg Company. the United Negro College Fund and the St. Global Beauty and Grooming Since: 2008 Age: 53 Mr. Panayotopoulos also serves as a member of various school Boards in Switzerland. Shirley led Gillette’s International Commercial Operations. Joseph’s Home for Handicapped Children. Edward D. Steele has been the Vice Chairman. Global Household Care at P&G since 2007. Dimitri Panayotopoulos Board: Senior Management Job Title: Vice Chairman. Presently. He joined P&G in 1988 as Cost analyst Food products after completing his MBA from Cornell University. Shirley has been the Vice Chairman.
Bergh also serves on the Boards of VF Corporation. Foods Division in 1986. Global Feminine Care at P&G since 2009. ECR Europe (Efficient Consumer Response).The Procter & Gamble Company Key Employee Biographies Bruce Brown Board: Senior Management Job Title: Chief Technology Officer Since: 2008 Age: 52 Mr. Charles V. Bishop has been the President. Ciserani has been the Group President. Brown has been the Chief Technology Officer at P&G since 2008. Beauty and Grooming Since: 2009 Age: 54 Mr. Beauty and Grooming at P&G since 2009. He joined the company as the Assistant Purchasing Manager. Giovanni Ciserani Board: Senior Management Job Title: Group President. Western Europe and Global Discounter and Pharmaceutical Channels at P&G since 2010. He joined the company in 1980 and has nearly has nearly 30 years experience in both developed and developing markets. Bergh Board: Senior Management Job Title: Group President. Bergh has been the Group President. Western Europe and Global Discounter and Pharmaceutical Channels Since: 2010 Age: 49 Mr. The Procter & Gamble Company © Datamonitor Page 16 . He joined the company in 1983. Steven D. Bishop Board: Senior Management Job Title: Group President. Global Male Grooming. He joined the company in 1987. Presently. Presently. United way and Economic Development Board-Singapore. Global Male Grooming. and American Chamber of Commerce. Ciserani also serves as the Board member of AIM (Association des Industries de Marque / European Brands Association). Mr. Zurich. Mr. Global Feminine Care Since: 2010 Age: 45 Mr.
The Procter & Gamble Company © Datamonitor Page 17 . She joined the company in 1987 and has served at various capacities in the company since then. Drosos has been the Group President. Global Female Beauty Since: 2010 Age: 48 Mr.The Procter & Gamble Company Key Employee Biographies Virginia Drosos Board: Senior Management Job Title: Group President. Global Female Beauty at P&G since 2010.
baby. health. family. fabric. The company's key products include the following: Products: Beauty: Cosmetics Deodorants Hair care Personal cleansing Prestige fragrances Skin care Grooming: Blades and razors Electric hair removal devices Face and shaving products Home appliances Health Care: Feminine care Oral care Personal health care Pharmaceuticals Snacks and pet care: Snacks Pet food Fabric Care and home care: Air care Batteries Dish care Fabric care Surface care The Procter & Gamble Company © Datamonitor Page 18 . home. and personal care product categories.The Procter & Gamble Company Major Products and Services MAJOR PRODUCTS AND SERVICES The Procter & Gamble Company (P&G or ‘the company’) is one of the world's largest consumer goods companies. It markets branded products in the beauty.
The Procter & Gamble Company Major Products and Services Baby Care and Family care: Baby wipes Bath tissue Diapers Facial tissue Paper towels Brands: Beauty: Head & Shoulders Olay Pantene Wella Grooming: Braun Fusion Gillette Mach3 Health Care: Actonel Always Crest Oral-B Snacks and pet care: Iams Pringles Fabric Care and home care: Ariel Dawn Downy Duracell Gain Tide Baby Care and Family care: The Procter & Gamble Company © Datamonitor Page 19 .
The Procter & Gamble Company Major Products and Services Bounty Charmin Pampers The Procter & Gamble Company © Datamonitor Page 20 .
an increase of 4.3%).736 million in FY2010. beauty (24.491 million. grooming (9. Asia accounted for 15% of the total revenues in FY2010. Revenues by Division* In FY2010.577 million in 2010. For FY2010.3%).9%).135 million in FY2010.805 million in FY2010. baby care and family care (18.4%).6% of the total revenues during FY2010. accounted for 42% of the total revenues in FY2010. and snacks and pet care (3. an increase of 1. The grooming division recorded revenues of $7. accounted for 42% of the total revenues. an increase of 10.631 million in FY2010. Revenues from North America reached $33. Revenues by Geography** North America. The health care division recorded revenues of $11.7% over 2009. Health and Well-Being GBU and Household Care GBU. an increase of 3% over 2009. an increase of 3% over 2009.938 million during the financial year ended June 2010 (FY2010). P&G's largest geographical market. an increase of 2.5% over 2009. an increase of 2.840. Western Europe accounted for 21% of the total revenues in FY2010. an increase of 2.3% over 2009. Revenues from Asia reached $11.The Procter & Gamble Company Revenue Analysis REVENUE ANALYSIS The company recorded revenues of $78. Revenues from Western Europe reached $16.The three GBUs operate under six reportable segments: fabric care and home care (29.9% over 2009. The baby care and family care division recorded revenues of $14. the company's largest geographic market. The snacks and pet care division recorded revenues of $3.8% over 2009. The Procter & Gamble Company © Datamonitor Page 21 . the fabric care and home care division recorded revenues of $23.7% over 2009.9% over 2009.5%). *Percentages are calculated including eliminations and are rounded-off.9% over 2009. North America. health care (14.154 million in 2010.493 million in FY2010. an increase of 0.7 million in 2010. The beauty division recorded revenues of $19. an increase of 2. The company is organized into three Global Business Units (GBUs): Beauty GBU.
Middle East and Africa.The Procter & Gamble Company Revenue Analysis CEEMEA accounted for 13% of the total revenues in FY2010. Latin America accounted for 9% of the total revenues in FY2010. ** CEEMEA includes Central and Eastern Europe. a decrease of 4.104.4 million in 2010.261.9 million in 2010. ***Percentages as reported by the company The Procter & Gamble Company © Datamonitor Page 22 . an increase of 2.9% over 2009.4% over 2009. Revenues from Latin America reached $7. Revenues from CEEMEA reached $10.
With revenues of $78. the earnings and cash flow. P&G holds leading global market shares in a variety of categories. feminine care (35%). Leading market position and strong brand portfolio provides P&G with significant competitive advantage as well as stabilizes the company's financial growth. blades and razors (70%). In addition. with its products reaching 4.2 billion as of March 2011 far exceeds the $46 billion book value of the company’s tangible assets. Strengths Leading market position garnered on a strong brand portfolio Significant R&D and marketing investments Robust cash productivity Opportunities Future growth plans with focus on increasing concentration on its core attractive businesses and enhancing its customer base Increased investment in manufacturing capacity in developing countries Acquisitions to expand portfolio Weaknesses Increasing instances of product recalls Threats Competitive industry landscape pose challenges for profitability Rising inflation could cause substantial rise in the operating cost Counterfeit goods Volatility in currency exchange rates Strengths Leading market position garnered on a strong brand portfolio With revenues of $78. P&G has the largest lineup of leading brands in its industry. including baby care (35%). and fabric care (30%).The Procter & Gamble Company SWOT Analysis SWOT ANALYSIS The Procter & Gamble Company (P&G or ‘the company’) is one of the world's largest consumer goods companies. P&G is the world's largest consumer products manufacturer. and another 20 brands generating about $500 million or more in annual sales. with 23 brands with over $1 billion in annual sales. which reflects the higher value placed on the company’s brands. However. In addition. P&G was the 22nd largest company in terms of sales and the 4th largest company in profits among the Fortune 500 list of 2009.938 million.2 billion people worldwide. competitive environment could impact the company’s profitability and margins in the future.938 million. P&G is the world's largest consumer products manufacturer. The company's The Procter & Gamble Company © Datamonitor Page 23 . with its products reaching 4.2 billion people worldwide. The company's market capitalization of roughly $175.
an approach it calls 'Connect and Develop. As part of its R&D efforts. leading market position provides P&G with significant competitive advantage as well as stabilizes the company's financial growth.2 billion). the company’s brands held five of the top 10 most successful non-food innovations as reported by SymphonyIRI in 2009. IRI Pacesetters study (which tracks and ranks the most successful new consumer products introduced in the US) recognized P&G as the most innovative manufacturer in the consumer packaged goods industry for the last decade. the company has made significant investments in R&D and marketing. which boosts customer loyalty and revenue growth. with 23 brands with over $1 billion in annual sales. P&G's strong R&D capabilities and consumer-based innovations are backed by significant marketing investments. whose average R&D expense rounds up around $1 billion-$1. The company’s brand strength is demonstrated by the fact that its brands are market leaders in 15 of the 21 major consumer categories in which it operates globally. Additionally. P&G’s continued focus on product innovation has enabled the company to further enhance its market position through additional revenue streams. Furthermore. Unilever. Robust cash productivity The Procter & Gamble Company © Datamonitor Page 24 . Leading market position based on a strong brand portfolio enables the company to achieve economies of scale in distribution and retain a strong bargaining position with retailers. Strong focus on research and development allows P&G to renew its product line at regular intervals. P&G also involves external innovation partners to boost its internal innovative capability. For instance. Over the last decade. P&G has invested nearly $2 billion in consumer and market research (nearly twice that of its closest competitor. all the organic sales growth delivered by P&G in the past ten years has come from new brands and new or improved product innovation. Virtually. P&G has the largest lineup of leading brands in its industry. Besides. As a result. more than its six largest competitors combined. P&G relies heavily on innovation and continued marketing investments in order to establish a significant competitive advantage. more than half of all product innovation coming from P&G includes at least one major component from an external partner. Significant R&D and marketing investments Being a consumer products company. P&G has had 114 top 25 Pacesetters.The Procter & Gamble Company SWOT Analysis leadership position is built on its strong brand portfolio. The company invests nearly $8 billion in advertising annually. consistently making P&G one of the world's largest advertisers. Furthermore. P&G conducts over 15. Significant marketing investments to support its brands and a broad product portfolio help P&G to remain at forefront in a competitive market. and another 20 brands generating about $500 million or more in annual sales.000 research studies every year and invests more than $350 million annually in studies focused on consumer understanding. the study by SymphonyIRI revealed the fact that over the past 14 years.' Currently. the company interacts with more than five million consumers each year in nearly 60 countries around the world.
in November 2009. consistently among the very best in the industry. the company recalled specific lots of its Iams canned cat food in North America as the diagnostic testing indicated that the product contained insufficient levels of thiamine (Vitamin B1). Recurrent product recalls like these not only negatively affects the brand image of the company but also impacts its financial performance in terms of ad hoc expenses. Germany. the company voluntarily recalled three lots of its Vicks Sinex nasal spray in the US. P&G is equally rigorous about managing costs. This is primarily due to P&G's strong focus on productivity. working-capital management and cost reduction. and to have the flexibility to invest in the business organically or through mergers and acquisitions. operating more efficiently with fewer days of receivables outstanding than any consumer products competitor. The product was recalled as it did not contain a child-resistant backing for the blister packs in the box. Furthermore. to pay strong dividends. P&G voluntarily recalled a small percentage of 1-liter bottles of Scope Original Mint and Scope Peppermint mouthwash with malfunctioning child-resistant caps in the US and Canada. Germany and the UK. Furthermore. cepacia in a small amount of product made at its plant in Gross Gerau. Therefore. The cash productivity allows P&G to maintain the company's strong credit rating. P&G recalled its 4-Hour Decongestant Nasal Spray distributed in the US. The recall was a precautionary step after finding the bacteria B. The company has reduced overhead costs as a percentage of sales by more than 300 basis points since 2001. Weaknesses Increasing instances of product recalls P&G has been registering increasing instance of product recalls recently. robust cash productivity ensures that P&G has the flexibility and the resources to invest in growth even in the most challenging environments. Most recently in June 2010. During the same month. despite label statements that the product is in child-resistant packaging. For example. P&G is the receivables leader of the industry. P&G voluntarily recalled its Vicks DayQuil Cold & Flu 24-Count LiquiCaps Bonus Pack in the US. has averaged over 100% since 2001. Opportunities Future growth plans with focus on increasing concentration on its core attractive businesses and enhancing its customer base The Procter & Gamble Company © Datamonitor Page 25 . The product was recalled as the product formulation did not meet the expiration dates on the package. Later in March 2010. P&G voluntarily recalled its Pringles Restaurant Cravers Cheeseburger potato crisps and Pringles Family Faves Taco Night potato crisps in response to a recommendation from the Food & Drug Administration (FDA) to the food industry to protect consumers from potential Salmonella exposure.The Procter & Gamble Company SWOT Analysis P&G's cash productivity. In the following month. For instance. the percentage of earnings converted into cash.
601. In addition. extending its distribution systems. and horizontally into adjacent categories.7 billion in 2008-09 to $30 billion in 2012. the importance of emerging markets such as China. and almost all will be multi-product category facilities. the company expanded its Tide (the leading laundry detergent brand in the US) and Ariel (the leading laundry detergent brand in Western Europe) brands horizontally into the laundry additives segment with the introduction of Tide Stain Release and Ariel Professional.1 million in 2009. P&G will add 20 new manufacturing facilities. As per Datamonitor estimates. Almost all of these facilities are in developing markets. the Chinese FMCG market returned to double digit growth rate and recorded 15% growth rate year-on-year in 2010. The company plans to invest approximately 4% of sales in capital spending. Over the next five years. In addition. For instance. By focusing on developing markets. in order to tap new customers. The rising GDP and disposable income and a growing middle class in these countries augur well for the demand of cosmetics and personal care products.4 million by 2014.4 million at a CAGR of 4% during 2009-14 period. the company is targeting developing markets.817. and expanding its brand and product portfolio. On an aggregate basis. priced about 15% below the Pampers Baby Dry. The Procter & Gamble Company © Datamonitor Page 26 . P&G had a 19% share in developing markets as of 2009 and is growing steadily by about half a share point a year. Driven by the increasing disposable incomes and awareness. including funding for new manufacturing capacity to support future growth.5 million in 2009 and is estimated to grow to the value of $209. Similarly. P&G is also extending its distribution systems. Furthermore. The market is projected to grow at a compounded annual growth rate (CAGR) of 4% to the value of $565. according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM). Increased investment in manufacturing capacity in developing countries P&G is planning increase in its manufacturing capacity in order to expand into categories and countries where it doesn't have a brand presence. The twin focus on deriving growth from emerging markets as well as lucrative product categories will put P&G in a stronger position and will drive the company's profitability in the long term. the global household care market was valued by Datamonitor at $175.234.The Procter & Gamble Company SWOT Analysis In order to grow in a highly competitive environment. to serve more consumers at more price points. the global market for personal care products was worth $469. P&G also expanded its portfolio into the value priced segment by introducing a new line of diapers in Germany called Pampers Simply Dry. the company would reduce the cost of serving these markets while also being closer to regions with the greatest long-term growth potential. In line with this.514. In addition. For instance. The company is sharply focusing on its core attractive businesses (the beauty and health market segments and several household care categories) as these are fast-growing businesses. P&G intends to increase its customer base in growth markets. P&G is pursuing a clearly drafted strategy with focus on two areas: increasing concentration on its core attractive businesses and enhancing its customer base. India. the company expanded its portfolio both vertically. and Brazil is on the rise. the Indian FMCG sector is expected to double from $14.
Acquisitions such as these will strengthen P&G's presence across various categories and in turn enhance its topline and bottomline growth. Additionally. the company completed its acquisition of the Ambi Pur Brand from Sara Lee Corporation. Later in May 2010. the company acquired the Zirh skincare brand. A survey conducted on 834 consumers in 2010 reported that nearly two-thirds of US consumers switched to a cheaper substitute for at least one basic household product. The company’s twin challenge witnessed during 2008-10 period reflected on its revenues when it posted its first annual sales decline since 2001. Mother Nature and Karma.The Procter & Gamble Company SWOT Analysis Acquisitions to expand portfolio P&G has made significant acquisitions in the recent past. liquid laundry detergents by 5.4%. for the 12 weeks ending period of July 2010. India and other African nations posed challenges for the company during recession. Most recently. more than three-quarters said they believe less expensive products were as good as or better than their costly counterparts. P&G entered into an agreement to acquire Natura Pet Products. Zirh enjoys unique positioning as a high-end "male only" brand and has one of the most comprehensive skin and shave care lines in the male grooming market. a decline of 3. including reduction in the prices of batteries by 13. shampoos by 5.8%. The Procter & Gamble Company © Datamonitor Page 27 . Zirh is a leading super-premium.6%.2% to $76.938 million in 2010. mainly in the US and Canada. a privately-held pet food business. and sanitary napkins by 2. The company’s products compete against similar products of many large and small companies. in turn.3%.9% to $78. and marginal growth of 2. fabric softeners by 5. These brands are sold in a limited number of pet specialty stores and through veterinarians. P&G’s price reduction strategy to stem market share. the company had to face stiff competition from established players like Unilever in emerging markets from where it expected growth potential. Besides. hampered its profitability in an inflationary environment. Traditionally. California Natural. Ambi Pur is a leading global air care brand with presence in 80 countries. and also has several toilet care products. in June 2009. As per estimates.1%. food or beverage. the company reduced the prices of its several products categories.7%. Healthwise. For instance. a trend more evident in the consumer goods space in which P&G operates. the company relied on the North American and European markets for majority of its revenues. specialty outlets and online. The company had to face shift in consumer preference towards relatively inexpensive products in developed markets. Natura's brands include Innova. in July 2010. Threats Competitive industry landscape pose challenges for profitability P&G's products are sold in a highly competitive global marketplace which is experiencing an increased trade concentration and the growing presence of large-format retailers and discounters. including well-known global competitors like Unilever and Colgate-Palmolive as well as retailers' private-label brands. with strong presence in Western Europe and Asia. its limited market share in countries like Brazil. However. male grooming brand available in high-end department stores. Evo. conditioners by 6.694 million in 2009.
Subsequently. or soaps are effected the most by counterfeiting and pass-offs.736 million in 2010. Counterfeit goods Trade of counterfeits and pass-offs products is negatively affecting the growth of FMCG companies like P&G. Low quality counterfeits reduce consumer confidence in branded products. In November 2009. higher commodity and energy costs negatively impacted gross margin by about 250 basis points. counterfeits and pass-offs also affect the company's brand as they are unsafe. the company would have to roll back price reduction initiatives aimed at improving its sales growth and market share. Also. The increased commodity costs contributed 160 basis points decline to gross margin. Besides. P&G depends heavily on a wide basket of global commodities for manufacturing its goods. with the advent of digital channels there has been a surge in the sale of counterfeit products and online sales of these products increased by 9% in 2009. in addition to the $1 billion in FY2008. widespread counterfeits reduce this exclusivity. the US Immigration and Customs Enforcement (ICE) agents seized more than 17.5 billion). the competitive pressure from established players in developing markets and from private labels in developed markets hampered the company’s sales and profit growth plans. compared to previous fiscal.000 counterfeit items worth an estimated $643. Nearly half of the company's cost of goods is directly related to commodity goods. the prices for which have risen substantially in recent years. increased advertising expenses.5% of net sales in 2009.The Procter & Gamble Company SWOT Analysis Besides. Volatility in currency exchange rates The Procter & Gamble Company © Datamonitor Page 28 . what differentiates the offerings of companies such as P&G from its competitors is exclusivity. This resulted in a gross margin declined by 100 basis points to 49.524 bottles of perfume. The company estimates additional $1 billion expenses in commodities for 2011 fiscal. It is estimated that the loss due to counterfeit products convert into around E6 billion ($8. Overall. and discount offerings. detergents. after posting gross margin growth of 250 basis points in FY2010 to 52. could have eventual impact on the company’s profitability and margins in the future. Rising inflation could cause substantial rise in the operating cost As a diversified consumer products manufacturer. Furthermore. If input cost inflation persists. Counterfeits not only deprive revenues for P&G but also dilute its brand image. such as price reduction. Furthermore. the increase in commodity prices have negative implications for the operating costs and hence the profitability of the company. P&G incurred roughly $2 billion in net commodity and energy costs in FY2009.0% of net sales. Similar competitive environment and subsequent efforts of the company to combat competition. Besides revenue losses. Wal-Mart implemented a 22% price cut on P&G’s Tide laundry detergents. The top two brands within any category be it cosmetics.2% decline in profits to $12. the company reported decline in gross margins in the second quarter of 2011. the company registered 5. Of the several factors.000 from 21 businesses in the Minneapolis-Saint Paul twin cities region in the US and the consignment included 3.
The unfavorable impact was primarily due to a stronger US dollar compared to most foreign currencies.The Procter & Gamble Company SWOT Analysis Currency exchange rate volatility places tremendous pressure on P&G's operations which span across 180 countries. such as the recent devaluation of the Venezuelan Bolivar. In addition. pay expenses. As a result. operating income and the value of balance sheet items denominated in foreign currencies. or approximately $789. it earns revenues. The unfavorable impact of currency fluctuations decreased revenues by about one percentage points. increases or decreases in the value of the US dollar against other major currencies will affect the company's net operating revenues. and of the assets located in. The Procter & Gamble Company © Datamonitor Page 29 . could negatively affect the value of the company's earnings from. Although P&G is based in the US. own assets and incur liabilities in countries using currencies other than the US dollar. unexpected and dramatic devaluations of currencies in developing or emerging markets.4 million in 2010. the said markets.
A. The Procter & Gamble Company © Datamonitor Page 30 . Inc.The Procter & Gamble Company Top Competitors TOP COMPETITORS The following companies are the major competitors of The Procter & Gamble Company Avon Products. Colgate-Palmolive Company Henkel KGaA Kimberly-Clark Corporation Unilever Reckitt Benckiser PLC Energizer Holdings L'Oreal S.
now and for generations to come-is inspiring and pervasive. The Company’s performance in the 2010 fiscal year. in so doing. Last year. higher-margin businesses with global leadership potential.The Procter & Gamble Company Company View COMPANY VIEW A statement by Robert A. Our Purpose is tightly and deliberately linked to our business and financial goals: P&G’s Purpose inspires our strategic choices. The Procter & Gamble Company © Datamonitor Page 31 . MORE COMPLETELY. It unleashes creativity. We’ve made this the centerpiece of our leadership agenda because we believe a Purpose-inspired growth strategy is intrinsically rewarding and motivating. we measure our progress through a combination of consumer and financial goals. It builds goodwill with external stakeholders. and it compels us to make a difference in areas such as sustainability and social responsibility not merely to be a good citizen. It attracts talent and partners. We focused on three specific choices: to grow P&G’s core brands and categories with an unrelenting focus on innovation. These strategic choices are unified by one simple. • Core earnings per share grew 6%. to keep our Company growing. In addition. Our fundamental objective is the creation of value for shareholders at industry leadership levels on a consistent basis. but more importantly. Chairman. and to continue to grow and develop faster-growing. More specifically. President and Chief Executive Officer at P&G is given below. to build our business with unserved and underserved consumers. over-arching growth strategy: to touch and improve the lives of MORE CONSUMERS in MORE PARTS OF THE WORLD. McDonald. in line with Company expectations. commitment and peak performance in P&G people. we updated P&G’s growth strategy to connect it explicitly to our Company’s Purpose. demonstrate that our Purpose-inspired growth strategy is working. to create future opportunities to touch and improve lives-and. The statement has been taken from the company's 2010 annual report. it leads us to bigger and better innovation. roughly double our going-in objective for the year. and the strength with which we have entered the 2011 fiscal year. P&G’s Purpose-to touch and improve lives. We are executing across all three dimensions of this growth strategy on all of our businesses around the world. We made substantial progress in fiscal 2010: • Organic sales grew 3%. it drives brilliant execution. Substantial Progress toward Growth Goals We also renewed our growth goals last year. our goal is to deliver total shareholder return that consistently ranks P&G among the top-third of our peers-the best performing consumer products companies in the world.
Based on this track record. for the fourth consecutive year. which leads to an effective investment in innovation that far exceeds the reported spending. We are innovating to win in every P&G category. Based on our current market capitalization. well above our target level. 125 P&G innovations have earned a spot on the Top 25 Pacesetters list-more than our six largest competitors combined. we were building market share in businesses accounting for only about 33% of sales. This leadership level of investment is multiplied by our global network of external innovation partners. we are investing behind these innovations to build profitable market share and we are continually increasing productivity that funds our investments in future growth. our global market share is up nearly half a point and accelerating. In fiscal 2010. dividends and share repurchases provide shareholders with an effective cash yield of more than 6%. bringing the total served to 4. Innovating to Win Innovation has been-and will continue to be-at the heart of our success. In fact. with additional potential for capital appreciation. global household penetration-the percentage of households using at least one P&G products-increased nearly two percentage points. we paid approximately $5. a key priority. as I write this.The Procter & Gamble Company Company View • Adjusted free cash flow was 125% of net earnings. • We also made substantial progress toward profitable share growth. we are building share in brands and countries accounting for about 66% of sales and P&G’s market share is growing in 14 of our top 17 countries. On the strength of these results. our global market share was down about half a point versus prior-year levels. Over the past 15 years. multiyear innovation program. In addition. inspired by the Purpose that motivates our people and partners and driven primarily by our strong.5%. we invested nearly $2 billion in Research & Development. And. today. SymphonyIRI recognized P&G as the most innovative manufacturer in the consumer packaged goods industry for the last decade-presenting the Company with its The Procter & Gamble Company © Datamonitor Page 32 . the dividend has increased at an annual compound average rate of approximately 9. Average per capita spending on P&G products increased in 70% of our top countries.2 billion-on track toward our goal of reaching 5 billion consumers by fiscal 2015. This is encouraging performance. One measure of the strength of our innovation program is the SymphonyIRI Group New Product Pacesetters report-the annual list of the biggest innovations in our industry as measured by sales. we increased our quarterly dividend by 9.5%. we invest about 50% more than our closest competitor and more than most of our closest competitors combined.5 billion in dividends and returned $6 billion to shareholders through the repurchase of P&G stock. today. In April. A year ago. we reached an additional 200 million consumers. Last year. This investment allows us to continually replenish our multiyear innovation pipeline. to 61%. making this the 120th consecutive year that P&G has paid a dividend and the 54th consecutive year that the dividend has increased. Over those 54 years. up from 60% in fiscal 2009.
a new-to-the-world gel that is consumer preferred by a margin of 2 to 1. Brazil and India. The impact of this innovation program is already evident. Bounty Extra Soft. we launched a complete line of Gillette male grooming solutions in Brazil. our newest laundry brand. We are also expanding vertically and into geographic white space. we are innovating in the premium tier with Ariel Excel Gel. is priced at a 15% premium versus the category average and is designed for consumers who want a laundry detergent that cleans well. but also provides natural and gentle benefits. into new white spaces where we haven’t been competing. In the middle tier. but I want to share perspective here as well to give you a sense of both the strength and breadth of innovation coming from P&G.The Procter & Gamble Company Company View “Outstanding Achievement in Innovation” award. Fabric Care We’re expanding our portfolio horizontally with Tide Stain Release and Ariel Professional in laundry additives. enabling us to reach a much The Procter & Gamble Company © Datamonitor Page 33 . • We are touching and improving consumers’ lives MORE COMPLETELY by innovating to improve existing products. We have featured six examples in the editorial section that follows this letter. and Bounce Dryer Bar in the fabric enhancer category. In Japan. we recently launched a new Mach3 razor specifically designed to better meet the needs of emerging-market consumers. we introduced Gillette Fusion ProSeries in North America. Sarasa. As a result. and we recently launched Gillette Fusion ProGlide. In 2009. up and down value tiers. P&G launched 5 of the top 10 most successful non-food innovations as judged by SymphonyIRI: Tide Total Care. by creating or entering adjacent categories and by driving regimen use that broadens our product portfolios. Gillette Venus Embrace. Male Grooming Fusion has now grown share for 18 consecutive quarters. In March. In Western Europe. and are now expanding in several Latin American countries. We introduced Ace in Colombia during the September quarter and Tide Naturals in India during the December quarter. we introduced a scientific face care regimen under the Gillette name in China. In June. We have a strong multiyear pipeline that will continue to drive growth in the future. Consumer testing shows that men prefer the Fusion ProGlide family at a ratio of up to 2-to-1 over Gillette Fusion. Mach3 shares are at record levels in Argentina. • We are touching and improving lives in MORE PARTS OF THE WORLD by innovating and expanding geographically. Our innovation program is guided by the Company's Purpose-inspired growth strategy: • We are touching and improving MORE CONSUMERS’ lives by innovating and expanding vertically. I’ll highlight just three representative businesses to illustrate. Always Infinity and Secret Flawless. Tide Naturals is priced 30% lower than regular Tide. In February.
Crest Clinical will start shipping in North America in August. And. Based on our in-market success. whiten and protect teeth while providing health benefits expected from Crest and Oral-B. More specifically: • Pampers with Dry Max will expand across Western Europe this year. helping to drive Oral Care shipments in China up high single digits in the final quarter of the fiscal year. Oral Care Oral-B toothpaste and toothbrush shares in Brazil continue to exceed expectations. • Gillette Fusion ProGlide will roll out to more than 40 countries over the next two years. 3D White is a new regimen comprised of toothpaste. Ace has become P&G’s 23rd billion-dollar brand. They will have a much bigger impact on fiscal 2011 than they had this past year as we continue to leverage them in North America and to expand them to additional markets. • The new Pantene formulations will expand globally over the next two years. Crest Pro-Health is off to a strong start in China. Looking Ahead Many of our most significant innovations just launched in North America between March and June 2010. • We are aggressively working to merge the product innovation and geographic expansion plans of Ambi Pur with the Febreze franchise. rinse and Professional Effects whitestrips that work in combination to clean. we will bring new innovations to market. In March. Our air care business now spans 84 countries. The Oral-B toothpaste launch in Belgium and the Netherlands is also going well-with Oral-B toothpaste approaching double-digit shares and driving P&G to overall Oral Care market share leadership in both countries since being launched in February 2009. we have initiated the second wave of our toothpaste expansion plan which will take us beyond the pharmacy channel. following the close of the Ambi Pur acquisition in early July. • Oral Care is introducing a new Crest Clinical line of products to treat two of the most common oral care problems: gingivitis and tooth sensitivity. of course. Ace is a mid-tier laundry brand that complements Ariel’s stain removal equity and Bold’s softness equity. The Crest Pro-Health formula is being expanded to other markets around the world. as well.The Procter & Gamble Company Company View broader spectrum of Indian households. The Procter & Gamble Company © Datamonitor Page 34 . we launched Crest 3D White in North America. The Crest Clinical Sensitivity toothpaste provides the maximum strength available over the counter. brush.
For example. One of the most important ways we fuel investments in innovation and brand building is through cost savings and productivity improvements. particularly given the breadth of our business and brand portfolios. we expect to reduce the number of formulas and package specifications by 30% and to reduce the number of colors we use by 50-75%. we are equally pleased with the quality of our pipeline going forward. There are examples in every P&G category. We are strengthening this discipline with a culture that continually simplifies the way we work and increases productivity. Over the next two years. Color simplification alone has the potential to generate up to $50 million in annual savings. This objective is driving clear. Decades of experience have demonstrated that making people aware of our innovation and motivating them to try our new products is the key to long-term success. Another good example of how we’re becoming more productive is the “digitization” of P&G. as a total Company. but we are not present in all these categories in all of our priority markets. And as strong as the program has been during this past fiscal year. With digitization. which in turn drives repurchase and sustainable share growth. For example. with most of the increase in the second half of the fiscal year behind many of the innovations I just described. we compete in less than 50% of potential country/category combinations in our top 50 markets. our goal is to standardize. This is the foundation of brand building. and P&G is committed to investing sufficiently and consistently to support innovation and build brands that thrive for decades. It’s full of innovations that are sure to touch and improve the lives of consumers for years to come. I cite these few just to provide perspective on the strength and breadth of our innovation program. P&G competes in 38 product categories globally. We have simplification projects underway throughout the Company. strategic choices about where to innovate and expand to ensure our total-Company lineup is reaching more consumers in more parts of the world. This presents a tremendous growth opportunity. When people experience the innovation we bring to market. automate and integrate systems and data so we can create The Procter & Gamble Company © Datamonitor Page 35 . we have more than 16. This will remain an ongoing priority for us.000 product formulas and use more than 4. Investing to Grow. they are frequently delighted.The Procter & Gamble Company Company View In total. We delivered a 20% increase in consumer impressions-the number of times consumers hear about our brands and new products-this fiscal year. Our objective is to fill out our product portfolio in every category and then expand to the most relevant geographic markets. Simplification is a significant opportunity for us. P&G is very disciplined about cash management and cost reduction. Changing to Lead We are supporting our innovation program with strong levels of marketing investment. more completely. We currently have the strongest multiyear innovation program I’ve seen in my 30-year career at P&G. led by line management and managed with the same discipline and integration that we use for global product launches. This investment is critical.000 colors in our product labels and plastic packaging.
Mom program will continue in conjunction with the IOC’s inaugural Youth Olympic Games to be held in Singapore in August 2010. A good illustration is logistics. We think increasing the capacity utilization of trucks can save more than $200 million annually. we are increasingly competing as one Company. including what we call our “Control Tower. we’re on track to reduce the number of “deadhead legs”-or. The real-time information this system provides allows us to coordinate scheduling and truck movement for all inbound and outbound transportation. The breadth of P&G’s portfolio and the depth of our reach make this the most far-reaching Olympic partnership. The combination of the individual components is greater together as one Company than the sum of the parts-and we are focused on maximizing this total value.” Think of this as an “air traffic control system” for ground transportation. Another way we are increasing productivity is by turning the Company’s size into scale and our scale into growth. We will build upon the success of our Team USA partnership at the Vancouver 2010 Olympic Winter Games. The Procter & Gamble Company © Datamonitor Page 36 . To do this. A good example is the global sponsorship agreement we signed in July with the International Olympic Committee (IOC). By getting the right data to the right decision makers at the right time. We are targeting a 20-25% reduction in some spending areas and we are looking for a sevenfold increase in real-time data. But at the total-Company level. countries and functions are all critical and each has unique value to add. We currently have control tower approaches in place covering about one-quarter of our business in both developing and developed markets. which resulted in increased favorability ratings for P&G and our brands. enabling the Company to take the Games to the more than 4 billion consumers worldwide served by P&G brands today. we can create scale advantages by allocating resources more strategically and efficiently than any individual business can do on its own. We want P&G to be the most technology-enabled company in the world. from London 2012 through the 2020 Olympic Games. our Thank You. • As part of the Proud Sponsor of Moms campaign. reapplying on-site activities from the Vancouver 2010 Olympic Winter Games. We are working across our businesses and markets to leverage P&G scale. brands. The partnership gives P&G global sponsorship rights for the next five Olympic Games. P&G will leverage the IOC partnership to deliver on our growth strategy and to help improve the lives of athletes. Our individual categories. So far. No other consumer products company could create a comparable partnership with the IOC. We are digitizing our Transportation Management systems. we also announced the global expansion of our Proud Sponsor of Moms campaign. As part of this sponsorship. moms and their families around the world in several ways: • We will continue to support families of Olympians.The Procter & Gamble Company Company View a real-time operating and decision-making environment. we can become increasingly efficient and productive. It demonstrates the powerful appeal of our brand portfolio and its tremendous global scale. greater market share and nearly $100 million in incremental sales. empty truck shipments-by more than 15%.
“What does it take to raise an Olympian?” By leveraging P&G scale and competing more effectively as one Company-rather than as individual businesses and brands alone-we are able to touch and improve more lives while creating meaningful competitive advantage. The video series will tell the stories of Olympians as seen through the eyes of their moms. but we still have some significant opportunities for improvement. I don’t want to imply that we are satisfied. big ideas and innovation that drive growth. We also need to continue our disciplined cost reduction and cash management efforts. leads to insights. We are not yet growing share on every business but we have robust innovation and marketing plans in place to accelerate share growth across the portfolio. It will be shown leading up to and during the London 2012 Olympic Games and will aim to answer the question. Our purpose as individuals inspires our performance as professionals. It focuses us on the consumers we serve and inspires empathy for them that. If we build on our successes. It is potentially a game-changing growth strategy because it unleashes creativity and capability. address our shortfalls and implement our strategy with excellence-which is precisely what we are focused on doing-we will continue to accelerate growth on both the topand bottom-line. I believe that to my core. Inspired to Perform As I wrote at the beginning of this letter. Simply put: Touching and improving people’s lives motivates peak performance. The congruence of our Company Purpose and our personal purpose captures our imagination and passion.The Procter & Gamble Company Company View helping 25 moms of Youth Olympians from around the world with their travel and lodging costs so they can be in Singapore with their children as they compete. Our results on some big brands and in some big categories have been soft. Our results were ahead of our going-in expectations in nearly every area. The P&G Momumentary Project” to celebrate the dedication and sacrifice of moms. Fulfilling P&G’s Purpose is not merely a noble ideal. Work to Do While we are encouraged by the Company’s recent performance. and we expect this to be reflected in stronger market share trends. We need to take even more cost out because there are still more investments we need to put in to keep driving profitable market share growth. The Procter & Gamble Company © Datamonitor Page 37 . we have placed significant emphasis on P&G’s Purpose because we believe it inspires people to perform at their peak. families and their Olympians. • We will produce a documentary video series called “Raising an Olympian. in turn.
It is a privilege to work with such outstanding people and I thank them for all they are doing to touch and improve lives and to grow our business. taken together. They tell me that they are inspired by the thought of what we can accomplish if we can infuse the work of our entire organization-all 127. We have all the elements of a high-performing organization in place at P&G: passionate leaders at every level and in every part of our business. Values and Principles that constitute the core of P&G. and a culture that enables. The Procter & Gamble Company © Datamonitor Page 38 . We’re inspired to create new innovations. sound strategies that continue to provide abundant opportunities to grow. It is all this. robust systems that enable us to operate with discipline and to collaborate inside and outside the Company. and perhaps touching and improving the lives of nearly every person on the planet in our lifetimes. I am honored to stand alongside Purpose-inspired leaders in every part of our organization who ensure that P&G touches and improves lives every day. ideas.000 of us-with the meaning that comes from our Purpose. P&G people and our partners tell me they are inspired by what we can accomplish together. services and products that improve people’s lives in ways we’ve not yet foreseen. demands and rewards high performance. We’re inspired by the thought of serving five billion people by the middle of this decade. that drives my confidence in P&G’s future. These pillars stand on a foundation of technical competence and the bedrock strength of our Purpose.The Procter & Gamble Company Company View Everywhere I travel.
com Other Locations and Subsidiaries P&G Guangzhou 27-33/F Centre Plaza 161 Lin He Xi Heng Road Guangzhou 510620 CHN Procter & Gamble Japan K. Ltd.pg. Level 4 1 Innovation Road Macquairie Park North Ryde Sydney NSW 2113 AUS Procter & Gamble Oy Lars Sonckin kaari 10 02601 Espoo FIN Procter & Gamble Nordic Inc. 17 Koyo-cho Naka 1-chome Higashinada-ku Kobe Hyogo 658 0032 JPN Procter & Gamble UK The Heights Brooklands Weybridge KT16 0XP GBR P&G (Singapore) 238A Thomson Road 21-01/10 Novena Square Tower A Singapore 307684 SGP P&G France 163 quai Aulagnier 92600 Asnieres-sur-Seine FRA P&G Australia Pty.K.The Procter & Gamble Company Locations and Subsidiaries LOCATIONS AND SUBSIDIARIES Head Office The Procter & Gamble Company One Procter & Gamble Plaza Cincinnati Ohio 45202 USA P:1 513 983 1100 F:1 513 983 9369 http://www. Hangovagen 20 10254 Stockholm SWE The Procter & Gamble Company © Datamonitor Page 39 .
A.The Procter & Gamble Company Locations and Subsidiaries P&G Srl via Cesare Pavese 385 00144 Rome ITA P&G Espana S. 28108 Alcobendas Madrid ESP The Procter & Gamble Company © Datamonitor Page 40 . de Bruselas 24. Av.