Proctor and Gamble 2004 Annual Report Download - page 29
Download and view the complete annual report
Please find page 29 of the 2004 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.FiscalYear2004Results
TheMDOisfocusedsolelyonwinningthe“FirstMoment
ofTruth”–whentheconsumerisshoppinginthestore.
OurMDOprofessionalsareonthegroundinover80
countries,andwehaveabout50dedicatedteamsworking
directlywithcustomersaroundtheworld.Theirchallenge
istobetheexpertsatunderstandinglocalconsumersand
customers,andtousethisknowledgetobuildcustomized
businessplansforourbrands.
Thisclearfocusagaindeliveredgreatresults.Infiscalyear
2004,P&G’sglobalvolumegrowthwas17%,includingthe
impactoftheWellaacquisition.Organicvolumegrowth,
excludingacquisitionanddivestitureimpacts,was10%for
theyear,andeachofP&G’smarketdevelopmentregions
deliveredorganicvolumegrowthof6%orhigher.
Developingmarkets,whichaccountedforabout20%of
P&G’ssalesinfiscal2004,grewvolumebynearly20%
versusthepreviousyear.
Thegrowthstrengthwasalsobroad-basedacrossP&G’s
biggestbrands,countriesandcustomers.P&Ggrewvolume
at9ofourtop10customers,onallofourtop10global
brands,andinallofourtop10countries.Thisestablished
asolidfoundationtogrowP&G’ssmallerbrandsand
markets.Infact,thebalanceofourtopbrands,countries
andcustomerseachgrewvolumeatadouble-digitrate–
trulyoutstandingperformance.
MarketDevelopmentOrganization(MDO)
What’sWorking
TheMDOisdevelopingnewcapabilitiesthataremakingus
betterandstrongerthaneverbefore–allowingP&Gtowin
theFirstMomentofTruthmoreoften.Weare:
•partneringwithwinningretailerstojointlycreatevalue
throughbetterunderstandingshopperhabits,providing
solutionsthatmeettheretailers’marketingstrategies
anddrivingoutnon-value-addedcosts;
•improvingtheavailabilityofourproductsonstoreshelves
withsupplysysteminnovationsthatreduceout-of-stocks
whilereducingcostsandinventoriesforP&Gandretailers;
•reachingmoreoftheworld’sconsumersbybroadening
thedistributionofourbrandsthroughnewchannelsin
developedmarketsandincreasingpenetrationofsmaller
storesindevelopingmarkets;
•ensuringthatourbrandsarepricedtoprovideexcellent
consumervaluebycloselymonitoringourpricingstrategy
versusallcompetitors,includingprivatelabels,andacting
quicklytokeepourflagshipbrandspricedright;
•improvingthein-storepresenceofP&Gbrandsthrough
betterpackaging,shelflayoutsanduniquecustomer
merchandisingevents;
•improvingtheimpactandsuccessrateofP&Ginitiatives
throughholisticin-storemarketingandlocalmedia
relationsprograms.
Afteronlyfiveyearsinourneworganizationstructure,
wehavemadegoodprogressbuildingourskillstobetter
markettoshoppersandjointlycreatevaluewithretailers.
However,truetoP&G’sculture,weareneversatisfiedand
willkeepbuildingonthisfoundationtoensuretheMDO
isasustainablecompetitiveadvantagethatwillcontinue
togetstronger.
TopTenBrands
(VolumeGrowth)
TopTenCountries
(VolumeGrowth)
TopTenCustomers
(VolumeGrowth)
GeographicSalesSplit
(Fiscal�ear2004NetSales)
27