Proctor and Gamble 2002 Annual Report Download - page 15

The third “new” reality is the emerging importance of operating as an interconnected
company. A recent report by industry consultant Booz Allen Hamilton noted “’Vertical’
thinking (i.e., own or control every link in the supply chain) has given way to ‘virtual’ thinking
(i.e., create a flexible web of supply relationships and focus exclusively on what one does best).”
At P&G, we see this as an enormous opportunity – in part, because that’s where the market-
place is headed and, even more so, because P&G has a strong history of developing partner-
ships that bring out the best in us and our partners. We’ve done it for years with advertising
agencies, customers, joint venture partners and technology suppliers.
When Dr. John’s, the maker of SpinBrush toothbrushes, approached us about licensing the
Crest name, we recognized the opportunity. Within five months of that first contact, we
bought the company and then brought Crest’s new, powered SpinBrush to market in record
time. Crest SpinBrush, now in 20 markets, has a 50% volume share of the growing powered-
brush category in the U.S. and has quadrupled the sales of the original Dr. John’s product.
When we developed the bisphosphonate technology in Actonel, we increased marketing
capability by partnering with Aventis, whose field sales force had broad access to and
credibility with doctors. The partnership worked well, and today Actonel is a nearly $400
million brand and growing.
Our vision is that P&G will be the best company in the world at spotting, developing and
leveraging partnerships in every area of the business. In fact, I want P&G to be a magnet
for best-in-class partners who want to build significant new business together.
Crest SpinBrush
Now in 20 markets, Crest SpinBrush
has a 50% volume share of the
growing powered-brush category in
the U.S.
Actonel
In partnership with Aventis, P&G
has built Actonel into a nearly
$400 million brand.
The New “Interconnected” Organization
3
13
The third “new reality” is the emerging importance of operating as an interconnected
company. A recent report by industry consultant Booz Allen Hamilton noted “’Vertical’
thinking (i.e., own or control every link in the supply chain) has given way to ‘virtual’ thinking
(i.e., create a flexible web of supply relationships and focus exclusively on what one does best).”
At P&G, we see this as an enormous opportunity – in part, because that’s where the market-
place is headed and, even more so, because P&G has a strong history of developing partner-
ships that bring out the best in us and our partners. We’ve done it for years with advertising
agencies, customers, joint venture partners and technology suppliers.
When Dr. John’s, the maker of SpinBrush toothbrushes, approached us about licensing the
Crest name, we recognized the opportunity. Within five months of that first contact, we
bought the company and then brought Crest’s new, powered SpinBrush to market in record
time. Crest SpinBrush, now in 20 markets, has a 50% volume share of the growing powered-
brush category in the U.S. and has quadrupled the sales of the original Dr. John’s product.
When we developed the bisphosphonate technology in Actonel, we increased marketing
capability by partnering with Aventis, whose field sales force had broad access to and
credibility with doctors. The partnership worked well, and today Actonel is a nearly $400
million brand and growing.
Our vision is that P&G will be the best company in the world at spotting, developing and
leveraging partnerships in every area of the business. In fact, I want P&G to be a magnet
for best-in-class partners who want to build significant new business together.
Crest SpinBrush
Now in 20 markets, Crest SpinBrush
has a 50% volume share of the
growing powered-brush category in
the U.S.
Actonel
In partnership with Aventis, P&G
has built Actonel into a nearly
$400 million brand.
The New “Interconnected” Organization
3
13