Proctor and Gamble 2005 Annual Report Download - page 6
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Please find page 6 of the 2005 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.Beauty
Health
Baby
Family
Household
Wehaveauniquelybalancedcombinationofbusinessesand
brands.WiththeplannedacquisitionofGillette,roughlyhalf
ofP&GsaleswillcomefromBaby,Family,andHousehold,
andhalfwillcomefromBeautyandHealth.P&G’slineupof
billion-dollarbrandsiswellbalanced.WhentheGillette
acquisitioniscomplete,wewillhave10billion-dollarbrands
inBeautyandHealth,and12billion-dollarbrandsinBaby,
Family,andHousehold.
Wehaveabalancedgeographicpresence.Abouthalfof
P&GsalescomefromNorthAmericaandhalffrom
internationalmarkets.Tenofthetop16countriesarebillion-
dollarmarkets–countriesinwhichwegenerateabillion
dollarsormoreinP&Gsaleseachyear.Eightofthetop16
countriesaredevelopingmarkets–countriesthatweexpect
tobecomealargerpartofourmix,addingabouta
percentagepointofgrowtheachyear.
Wehaveabalancedmixofcustomers.NearlyhalfofP&G’s
top10retailcustomerssellabilliondollarsormoreeach
yearinP&Gproducts.Wehavegrownvolume9%ayearon
averageoverthepastthreeyearswiththesebillion-dollar
customers,and9%withthetop10customersworldwide.
Inaddition,wehavedeliveredhigh-teensvolumegrowthon
averageinhigh-frequencystorescommonindeveloping
countries.Iftheywereasingleretailer,thesehigh-frequency
storeswouldbeP&G’ssinglelargestvolumecustomer.P&G’s
growthisnotdependentonanyonechannelorcustomer.
Ourobjectiveistoserveallconsumersandtogrowwith
allcustomers.
Ourexperiencethispastyearisagoodillustrationofwhy
balancematters.Wefacedsometoughchallengesinfiscal
2005–andyetwestillachievedourlong-termgoals.
Risingcommoditycostsputsignificantpressureonglobal
FabricCare.OralCarefacedincreasedcompetitivespending.
Competitivepricediscountingandtradepromotion
spendingwasparticularlyintenseinNorthAmericaand
WesternEurope.WithoutP&G’sbalance,wemighthave
beentemptedtoreducestrategicinvestmentsinbrandingor
innovationtodelivershort-termgoals.Instead,wesustained
theseimportantinvestmentsandstilldeliveredaheadof
salesandearningsgrowthgoals.Wewereabletodothis
becauseothermajorbusinesses,includingBeauty,Babyand
FamilyCare,CoffeeandSnacks,andfast-growing
developingmarketsdeliveredwellaheadofgoals.
4
P&Ghasbecome
amorebalanced
company.Withthe
acquisitionofGillette,
roughlyhalfofP&G
saleswillcomefrom
Baby,Family,and
Householdcategories,
andhalfwillcome
fromBeautyand
Healthbusinesses.