Proctor and Gamble 2010 Annual Report Download - page 35

Management’s Discussion and Analysis The Procter & Gamble Company 33
Snacks and Pet Care: In snacks, we compete against both global and
local competitors and have a global market share of approximately
10% in the potato chips market behind our Pringles brand. In pet care,
we compete in several markets around the globe in the premium pet
care segment, with the Iams and Eukanuba brands. The vast majority
of our pet care business is in North America, where we have approxi-
mately a 10% share of the market.
Household Care
Fabric Care and Home Care: This segment is comprised of a variety
of fabric care products, including laundry detergents, additives and
fabric enhancers; home care products, including dishwashing liquids
and detergents, surface cleaners and air fresheners; and batteries. In
fabric care, we generally have the number one or number two share
position in the markets in which we compete and are the global
market leader, with about 30% of the global market share. Our global
home care market share is over 15% across the categories in which
we compete. In batteries, we compete primarily behind the Duracell
brand and have approximately 25% of the global battery market share.
Baby Care and Family Care: In baby care, we compete primarily in
diapers and baby wipes, with approximately 35% of the global market
share. We are the number one or number two baby care competitor
in most of the key markets in which we compete, primarily behind
Pampers, the Company’s largest brand, with annual net sales of
approximately $9billion. Our family care business is predominantly a
North American business comprised primarily of the Bounty paper towel
and Charmin toilet paper brands. U.S. market shares are approximately
45% for Bounty and over 25% for Charmin.
GLOBAL OPERATIONS
Global Operations is comprised of our Market Development
Organization (MDO), which is responsible for developing go-to-market
plans at the local level. The MDO includes dedicated retail customer,
trade channel and country-specific teams. It is organized along five
geographic units: North America, Western Europe, Central & Eastern
Europe/Middle East/Africa (CEEMEA), Latin America and Asia, which is
comprised of Japan, Greater China and ASEAN/Australia/India/Korea
(AAIK). Throughout MD&A, we reference business results in develop-
ing markets, which we define as the aggregate of CEEMEA, Latin
America, AAIK and Greater China, and developed markets, which are
comprised of North America, Western Europe and Japan.
GLOBAL BUSINESS SERVICES
GBS provides technology, processes and standard data tools to enable
the GBUs and the MDO to better understand the business and better
serve consumers and customers. The GBS organization is responsible
for providing world-class solutions at a low cost and with minimal
capital investment.
CORPORATE FUNCTIONS
CF provides Company-level strategy and portfolio analysis, corporate
accounting, treasury, external relations, governance, human resources
and legal, as well as other centralized functional support.
Strategic Focus
We are focused on strategies that we believe are right for the long-
term health of the Company and will deliver total shareholder return
in the top one-third of our peer group. The Company’s long-term
financial targets are:
• Grow organic sales 1% to 2% faster than market growth in the
categories and geographies in which we compete,
• Deliver earnings per share (EPS) growth of high single digits to low
double digits, and
• Generate free cash flow productivity of 90% or greater.
In order to achieve these targets, we have created one over-arching
strategy, inspired by our Purpose. At the heart of this strategy is
innovating to win by touching and improving the lives of:
• More Consumers. We are improving more consumers’ lives by
innovating and expanding our product portfolio vertically, up and
down value tiers. We continue to successfully develop and launch
premium innovations focused on improving consumer value
through enhanced performance. We are also serving consumers
who are more price conscious through lower-priced offerings with
superior performance versus other mid-tier and value-tier
alternatives.
• In More Parts of the World. We are improving lives in more parts
of the world by innovating and expanding our existing product
portfolio geographically into new markets. We are increasing our
presence in developing markets and increasing the amount of sales
from these markets by focusing on affordability, accessibility and
awareness of our brands.
• More Completely. We are improving lives more completely by
innovating to improve existing products and creating or entering
adjacent categories. We are driving regimen use that broadens
the occasions for which our brands can serve the needs of each
consumer. By attracting new consumers into our existing brand
franchises and broadening the products used by our current con-
sumers, we are able to build scale, reduce costs and profitably
grow market share.
To achieve our targets, we will also leverage P&G’s core strengths
that create competitive advantages and are critical to winning in the
consumer products industry: consumer knowledge; innovation; brand-
building; go-to-market capabilities and scale. We are coordinating
our activities across categories and markets, acting more intentionally
as one Company. We are placing particular emphasis on execution,
simplification and scale as key improvement areas that will enable
P&G to create the greatest value and competitive advantage. Finally,
we are strengthening the depth, breadth and quality of leadership at
all levels of the Company to make P&G a more demand-driven, real-
time, future-focused organization.