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The Procter & Gamble Company 23
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 GBUs are aggregated into five reportable segments: Beauty; Grooming; Health Care; Fabric Care and
Home Care; and Baby, Feminine 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
and the key product categories and brand composition within each segment.
Reportable Segment
% of
Net Sales*
% of Net
Earnings* GBUs (Categories) Billion Dollar Brands
Beauty 24% 23% Beauty Care (Antiperspirant and Deodorant,
Cosmetics, Personal Cleansing, Skin Care); Hair
Care and Color; Prestige; Salon Professional
Head & Shoulders,
Olay, Pantene, SK-II,
Wella
Grooming 10% 17% Shave Care (Electronic Hair Removal, Female
Blades & Razors, Male Blades & Razors, Pre- and
Post-Shave Products, Other Shave Care)
Fusion, Gillette,
Mach3, Prestobarba
Health Care 9% 9% Personal Health Care (Gastrointestinal, Rapid
Diagnostics, Respiratory, Vitamins/Minerals/
Supplements, Other Personal Health Care); Oral
Care (Toothbrush, Toothpaste, Other Oral Care)
Crest, Oral-B, Vicks
Fabric Care and Home Care 32% 26% Fabric Care (Laundry Additives, Fabric
Enhancers, Laundry Detergents); Home Care (Air
Care, Dish Care, P&G Professional, Surface
Care); Personal Power (Batteries)
Ariel, Dawn, Downy,
Duracell, Febreze,
Gain, Tide
Baby, Feminine and Family
Care
25% 25% Baby Care (Baby Wipes, Diapers and Pants);
Feminine Care (Adult Incontinence, Feminine
Care); Family Care (Paper Towels, Tissues, Toilet
Paper)
Always, Bounty,
Charmin, Pampers
*Percent of net sales and net earnings from continuing operations for the year ended June 30, 2014 (excluding results held in Corporate).
Recent Developments: On July 31, 2014 the Company
completed the divestiture of its pet care operations in North
America, Latin America, and other selected countries to
Mars, Incorporated (Mars) for $2.9 billion in an all-cash
transaction. The gain or loss related to this transaction is not
expected to be material and will be included in fiscal 2015
results. The European Union countries are not included in
the agreement with Mars. The Company is pursuing
alternate plans to sell its Pet Care business in these markets.
In accordance with the applicable accounting guidance for
the disposal of long-lived assets, the results of our Pet Care
business are presented as discontinued operations and, as
such, have been excluded from continuing operations and
from segment results for all periods presented.
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 care, hair care and
color 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 over 8% global market share. In
hair care and color, we compete in both the retail and salon
professional channels. We are the global market leader in
the retail hair care and color market with over 20% global
market share primarily behind our Pantene and Head &
Shoulders brands. In the prestige channel, we compete
primarily with our prestige fragrances behind Dolce &
Gabbana, Gucci and Hugo Boss fragrance brands and the
SK-II brand.
Grooming: We are the global market leader in the blades
and razors market globally. Our global blades and razors
market share is approximately 70%, primarily behind the
Gillette franchise including Fusion, Mach3, Prestobarba and
Venus. 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 over
20% of the male shavers market and over 40% of the female
epilators market.
Health Care: We compete in oral care and personal health
care. In oral care, there are several global competitors in the
market and we have the number two market share position
with approximately 20% global market share. In personal
health care, we are a top ten competitor in a large, highly
fragmented industry behind respiratory treatments (Vicks
brand) and nonprescription heartburn medications (Prilosec
OTC brand). Nearly all of our sales outside the U.S in
personal health are generated through the PGT Healthcare
partnership with Teva Pharmaceuticals Ltd.