Proctor and Gamble 2000 Annual Report Download - page 7

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5
Up-front with A.G.
A.G. Lafley, President and Chief Executive
Q: Will P&G’s growth strategy change under the
new leadership?
A: No. The basic building blocks of our growth
strategy remain unchanged:
>Building our established and most
profitable brands
>Introducing new brands and entering
new categories
>Acquiring brands that can help us strengthen
existing businesses or enter new businesses
and markets
>Improving the mix of our brand portfolio
with more premium-performance,
higher-priced products
In any given year, the contribution from each of
these elements will vary. But taken together, these
building blocks provide the basis for balanced
growth in top-line sales and bottom-line profits.
Q: How will you balance investment in big,
established brands and new brands?
A: Our biggest flagship brands are popular with
consumers, often are the leader in their product
category and are the greatest, sustainable source
of profits and cash flow. Consequently, we must
always ensure that these brands are strong and
growing. At the same time, our future depends
on our ability to continually create tomorrow’s
big brands. To do that, we will judiciously invest
in new brands that we believe have global leader-
ship potential.
The key is striking the right balance. We did it in
our fabric & home care business in North America
this past year, where we delivered double-digit
sales growth, with gains on big brands like Tide
and Downy, and we increased profits, while making
significant investments in new brands like Febreze
and Swiffer.
ON JUNE 8, A.G. LAFLEY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF P&G.
HERE HE ANSWERS SOME OF THE QUESTIONS HE’S BEEN ASKED SINCE THEN
ABOUT THE STATE OF P&G’S BUSINESS AND HIS PLANS FOR THE FUTURE.