Proctor and Gamble 2003 Annual Report Download - page 13

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Our clear goal is to become the best Beauty Care company
in the world – for consumers, customers and shareholders –
and to lead the Company’s growth. We want to combine
the best of P&G with the best of “beauty” companies to
create something even better.
We’re well on our way to achieving this. With the addition
of Wella, Beauty Care will be one of the largest beauty care
companies in the world in sales and profits. We will have
more billion-dollar brands than any competitor and profit
margins among the highest in the industry.
Innovation is at the heart of our success. We’ve grown
Olay to billion-dollar sales behind continuous step-change
innovation that better meets women’s skin care needs.
Daily Facials is the #1 cleansing cloth in the U.S. market –
a novel breakthrough that removes makeup, cleanses the
skin, exfoliates and conditions in a simple, single step. Total
Effects, based on our proprietary VitaNiacin ingredient,
established Olay as the anti-aging leader in Skin Care.
Regenerist, our latest breakthrough in anti-aging, comes
out of wound-healing cellular science and is off to a
tremendous start – already the U.S. market leader only
three months after launch.
In Cosmetics, Cover Girl Outlast and Max Factor Lipfinity
products offer patented, longer-wearing lip color and have
been the most successful lipstick launches ever. Outlast is
now the single largest makeup product in the entire U.S.
market. In Feminine Care, we introduced Tampax Pearl. This
new plastic tampon was redesigned from top to bottom to
better meet consumer needs and wants. We’ve been very
pleased with results to date, and both shipments and share
continue to grow. Our two largest brands, Pantene – the
world’s leading hair care brand – and Head & Shoulders,
each grew sales in double digits over the last two-year
period behind a series of product and marketing initiatives.
Much of the success here reflects hair conditioning
technology unsurpassed in the world.
We’re complementing innovation with acquisitions.
We have successfully complemented internal innovation
with acquisitions. The Clairol acquisition moved P&G into
the faster-growing Hair Colorants segment. Colorants appeal
to both aging baby boomers and experimental teens. This
business is now fully integrated, and we’re launching our
first innovations – on Nice ‘n Easy and with Herbal Essences
Highlighting. At acquisition, Hugo Boss fragrance was a
small unknown brand with sales under $50 million. Hugo
Boss is now the largest male fine fragrance franchise in the
world. At acquisition, SK-II was another small, unknown
brand with sales of less than $50 million. SK-II is now the
leading prestige skin care brand in Asia.
The Wella acquisition will give us access to the large and
growing professional hair care market, provide a geographic
complement and a strong technology partner to Clairol’s
colorant business, give us a greater presence in hair styling
and a complementary fragrance portfolio.
We’re maintaining a strong cost focus. A strong cost
focus underpins all of our activity in Beauty Care, which
enables us to earn attractive margins while providing value
to consumers.
We’re excited about the growth Beauty Care will continue
to bring to the Company as we go forward.
We’re working to combine the best of P&G and
the best of beauty companies to create something
better. P&G is now one of the world’s largest
beauty companies.
Bruce L. Byrnes
President