Proctor and Gamble 2005 Annual Report Download - page 9
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Please find page 9 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.OpportunitiestoGrow
Gillette,ofcourse,isoneofourbiggestgrowth
opportunities.WehaveincreasedP&G’sannualsalesgrowth
goalbyapointthrough2010,from4–6%to5–7%,7given
Gillette’sleadershipinfaster-growingcategoriesandthe
growthsynergiesweexpecttocreateoncetheintegration
iscomplete.
BeyondGillette,thereareopportunitiestokeepgrowingin
allofP&G’sbusinesses.Ourgrowthmodelcallsfor2–3%
frommarketexpansion,roughlyinlinewithGrossDomestic
Product(GDP)growth.Asourbusinessmixshiftstoward
faster-growingcategoriesandmarkets,weexpecttoget
closerto3%marketgrowth,whichhasbeenourexperience
overthepasttwoyears.Thebalanceoforganicgrowthwill
comefromacombinationofcontinuedsharegrowth,white
spaceexpansion,andnewbusinesscreation.
We’veprovenovertimethatwecanbuildshareconsistently.
Ourtopfivecategorieshavegrowntoanaverageglobal
valueshareofabout30%.Wehaveachieved50%to60%
sharesinWesternEuropeBabyCareandFeminineCare,and
NorthAmericaFabricCare–andthesebusinessesarestill
growingsharetoday.Thenext20categoriesareonly
halfwaytothe30%sharemark–representingsignificant
growthpotential.
Whitespaceexpansionisanopportunitythatexistsinboth
developinganddevelopedmarkets.Westillhavenumerous
opportunitiestoexpandourtopcategoriesintothe50
largestcountries.EveninglobalcategoriessuchasFabric
Care,FeminineCare,HairCare,BabyCare,SkinCare,and
OralCare,westillhavea$15billionwhitespaceopportunity.
Themajorityofwhitespaceopportunityexistsindeveloping
markets.Thesecountriesrepresent23%ofP&Gsales
currently,buttheyhave86%oftheworld’spopulation,
accountfor25%ofglobalGDPtoday,andwillapproach
30%bytheendofthedecade.Thisisparticularlyimportant
forP&Gbecauseincreasesinhouseholdformationand
incomedrivethegrowthanddevelopmentofconsumer
productscategories.
Newbusinesscreationisanothersourceoftop-linegrowth.
P&Ghasaproventrackrecordofbuildingnewcategories
andcreatingnewbrands.Nootherconsumerproducts
companyiscreatingentirelynewbusinessesattheratewe
are.Wehavegeneratednearly$5billionofretailsalesin
7
7 Excludingtheimpactofforeignexchange.
P&G’sorganicgrowth
willcomefrom
continuedshare
growth,white
spaceexpansion,
andnewbusiness
creation.