Proctor and Gamble 2012 Annual Report Download - page 28
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ORGANIZATIONAL STRUCTURE
Our organizational structure is comprised of Global Business Units (GBUs), Global Operations, Global Business Services
(GBS) and Corporate Functions (CF).
Global Business Units
Under U.S. GAAP, the business units comprising the GBUs are aggregated into five reportable segments: Beauty; Grooming;
Health Care; Fabric Care and Home Care; and Baby Care and Family Care. The GBUs are responsible for developing overall
brand strategy, new product upgrades and innovations and marketing plans. The following provides additional detail on our
reportable segments, businesses and the key product and brand composition within each.
Reportable Segment
% of
Net Sales*
%ofNet
Earnings* Categories Billion Dollar Brands
Beauty 24% 22% Antiperspirant and Deodorant, Cosmetics, Hair
Care, Hair Color, Personal Cleansing, Prestige
Products, Salon Professional, Skin Care
Head & Shoulders,
Olay, Pantene, SK-II,
Wella
Grooming 10% 16% Blades and Razors, Electronic Hair Removal
Devices, Hair Care Appliances, Pre and Post
Shave Products
Braun, Fusion,
Gillette, Mach3
Health Care 15% 17% Feminine Care, Gastrointestinal, Incontinence,
Rapid Diagnostics, Respiratory, Toothbrush,
Toothpaste, Other Oral Care, Other Personal
Health Care, Vitamins/Minerals/Supplements
Always, Crest, Oral-
B, Vicks
Fabric Care and Home Care 32% 26% Bleach and Laundry Additives, Air Care,
Batteries, Dish Care, Fabric Enhancers, Laundry
Detergents, Pet Care, Professional, Surface Care
Ace, Ariel, Dawn,
Downy, Duracell,
Febreze, Gain, Iams,
Tide
Baby Care and Family Care 19% 19% Baby Wipes, Diapers and Pants, Paper Towels,
Tissues, Toilet Paper
Bounty, Charmin,
Pampers
*Percent of net sales and net earnings from continuing operations for the year ended June 30, 2012 (excluding results held in Corporate).
Recent Developments: In May 2012, we completed the
divestiture of our snacks business to The Kellogg Company.
In accordance with the applicable accounting guidance for
the disposal of long-lived assets, the results of our snacks
business are presented as discontinued operations and, as
such, have been excluded from continuing operations and
from segment results for all periods presented. As a result of
this change, the pet care business is now included in the
Fabric Care and Home Care segment.
Effective during the quarter ending December 31, 2011, we
implemented a number of changes to our organization
structure within the Beauty and Grooming Global Business
Unit (GBU), which resulted in changes to the components of
the Beauty reportable segment and the Grooming reportable
segment. We now manage these businesses based on the
nature of the product rather than the consumer of the
product. As a result, female blades and razors transitioned
from Beauty to Grooming, while male personal care
products, such as Old Spice and Gillette, moved from
Grooming to Beauty. The GBU and segment discussions in
MD&A and the accompanying Consolidated Financial
Statements have been retrospectively revised to reflect the
new organizational structure.
Beauty: We are a global market leader in the beauty
category. Most of the beauty markets in which we compete
are highly fragmented with a large number of global and
local competitors. We compete in beauty, hair care and
prestige. In beauty care, we offer a wide variety of products,
ranging from deodorants to cosmetics to skin care, such as
our Olay brand, which is the top facial skin care brand in the
world with approximately 10% of the global market share.
In hair care, we compete in both the retail and salon
professional channels. We are the global market leader in the
retail hair care market with over 20% of the global market
share behind our Pantene and Head & Shoulders brands. In
the prestige channel, we compete primarily with our prestige
fragrances and the SK-II brand. We are one of the global
market leaders in prestige fragrances, primarily behind our
Dolce & Gabbana, Gucci and Hugo Boss fragrance brands.
Grooming: We are the global market leader in the blades
and razors market and in nearly all of the geographies in
which we compete. Our global blades and razors market
share is approximately 70%, primarily behind the Gillette
franchise including Fusion and Mach3. Our electronic hair
removal devices, such as electric razors and epilators, are
sold under the Braun brand in a number of markets around
the world where we compete against both global and
regional competitors. We hold approximately 30% of the
male shavers market and over 40% of the female epilators
market.