Proctor and Gamble 2004 Annual Report Download - page 19

Fiscal฀Year฀2004฀Results
The฀Fabric฀and฀Home฀Care฀business฀unit฀delivered฀another฀
year฀of฀solid฀results.฀Volume฀increased฀9%,฀sales฀grew฀฀
10%฀and฀net฀earnings฀grew฀7%.฀The฀growth฀in฀fiscal฀2004฀
came฀from฀strengthening฀leadership฀positions฀in฀existing฀
categories,฀growing฀rapidly฀in฀developing฀markets฀and฀฀
with฀lower-income฀consumers,฀and฀launching฀and฀leveraging฀
new฀products฀that฀have฀created฀entirely฀new฀categories.฀฀
In฀addition,฀we฀supported฀this฀exceptional฀top-line฀growth฀
with฀increased฀investments฀in฀marketing฀and฀supply฀systems.฀
P&G฀grew฀its฀leadership฀share฀in฀the฀mature฀Fabric฀Care฀
market฀to฀more฀than฀31%฀of฀this฀$40฀billion฀category.฀
Innovations฀like฀Tide฀Clean฀White฀in฀China,฀Downy฀One฀
Rinse฀in฀Latin฀America฀and฀Gain฀Fabric฀Enhancer฀in฀North฀
America฀are฀great฀examples฀of฀new฀products฀that฀helped฀
Fabric฀Care฀grow฀market฀share฀globally.฀
In฀addition,฀Home฀Care฀products฀such฀as฀Swiffer,฀Febreze,฀
Mr.฀Clean฀Magic฀Eraser฀and฀Mr.฀Clean฀AutoDry฀Carwash฀
have฀created฀entirely฀new฀product฀categories฀for฀P&G฀฀
and฀our฀customers.฀These฀products฀led฀P&G฀Home฀Care฀฀
to฀12%฀unit฀volume฀growth.
What’s฀Working
P&G’s฀Fabric฀and฀Home฀Care฀business฀has฀accelerated฀
profitable฀market฀share฀and฀sales฀growth฀by฀improving฀
fundamentals,฀strengthening฀innovation฀and฀developing฀฀
low-cost฀activity฀systems฀to฀reach฀more฀consumers฀more฀
profitably.฀Our฀business฀fundamentals฀are฀sound.฀Nearly฀฀
all฀of฀our฀products฀test฀superior฀to฀the฀best฀competitive฀
products฀and฀are฀supported฀by฀business-building฀marketing฀
and฀advertising฀programs.฀
We฀have฀more฀than฀doubled฀our฀innovation฀success฀rate฀฀
and฀more฀than฀doubled฀the฀future฀value฀potential฀of฀the฀
innovations฀in฀our฀pipeline.฀Importantly,฀we฀are฀introducing฀
new-to-the-world฀products฀that฀are฀making฀consumers’฀lives฀
easier฀and฀building฀business฀for฀our฀trade฀customers.฀
We฀are฀satisfying฀more฀lower-income฀consumers฀with฀unique฀
product฀designs฀and฀marketing฀programs.฀We฀are฀building฀
unique฀activity฀systems฀that฀integrate฀product฀design,฀
manufacturing฀supply฀chain฀and฀customer฀distribution฀
systems฀to฀keep฀our฀costs฀competitive฀with฀local,฀low-cost฀
competition.฀The฀Tide฀Clean฀White฀initiative฀is฀an฀excellent฀
example฀of฀a฀locally฀tailored฀product฀using฀a฀low-cost฀activity฀
system฀to฀significantly฀grow฀our฀share฀in฀China.
Over฀the฀past฀year฀we฀have฀profitably฀built฀global฀market฀
share฀in฀all฀of฀our฀categories฀(detergents,฀fabric฀conditioners,฀
dishwashing฀and฀surface฀care),฀and฀we฀begin฀fiscal฀year฀
2005฀with฀strong฀momentum฀and฀a฀full฀innovation฀pipeline.฀฀
Fabric฀and฀Home฀Care฀continues฀to฀be฀an฀important฀engine฀
of฀growth฀for฀P&G.
Mr.฀Clean
Mr.฀Clean฀Magic฀Eraser฀and฀AutoDry฀
Carwash,฀two฀very฀successful฀new฀
product฀innovations,฀spurred฀this฀
well-known฀brand฀to฀volume฀growth฀
of฀nearly฀20%฀in฀fiscal฀year฀2004.
Gain฀Fabric฀Enhancer
The฀Gain฀brand฀delivered฀volume฀
growth฀of฀over฀20%฀in฀the฀U.S.฀฀
A฀steady฀stream฀of฀new฀scents฀฀
on฀Gain฀laundry฀detergent฀and฀฀
the฀launch฀of฀Gain฀Fabric฀Enhancer฀
in฀early฀2003฀have฀driven฀the฀฀
strong฀performance.
Swiffer฀Duster
The฀Swiffer฀household฀cleaning฀
system฀franchise฀grew฀volume฀฀
by฀more฀than฀20%฀versus฀the฀prior฀
year.฀New฀versions,฀such฀as฀Swiffer฀
Duster฀with฀Extendable฀Handle,฀
continue฀to฀attract฀new฀consumers฀
to฀the฀brand.
Tide฀Clean฀White
Tide฀Clean฀White฀has฀led฀China’s฀
laundry฀business฀to฀a฀50%฀market฀
share฀increase฀in฀12฀months.฀P&G฀
now฀holds฀over฀16%฀value฀share฀of฀
the฀China฀laundry฀detergent฀market.
Fabric฀and฀Home฀Care
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Net฀Sales
(in฀billions฀of฀dollars)
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Net฀Earnings
(in฀billions฀of฀dollars)
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