Proctor and Gamble 2016 Annual Report Download - page 27

The Procter & Gamble Company 13
Morris Trust split-off transaction in which P&G shareholders
could elect to participate in an exchange offer to exchange their
P&G shares for Coty shares. The Company expects to
complete this transaction in October 2016. The results of the
Beauty Brands are now presented as discontinued operations
and, as such, are excluded from both continuing operations and
segment results for all periods presented. Additionally, the
Beauty Brands' balance sheet positions as of June 30, 2016 and
June 30, 2015 are presented as held for sale in the Consolidated
Balance Sheets.
During fiscal 2015, the Company completed the divestiture of
its Pet Care business. The gain on the transaction was not
material. The results of the Pet Care business are presented as
discontinued operations and, as such, are excluded from both
continuing operations and segment results for all periods
presented.
With these transactions and other recent minor brand
divestitures, the Company will have substantially completed
the strategic portfolio reshaping program.
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 skin and personal care and in hair
care. In skin and personal care, we offer a wide variety of
products, ranging from deodorants to personal cleansing to skin
care, such as our Olay brand, which is one of the top facial skin
care brands in the world with over 7% global market share. In
hair care, we compete in the retail channel. We are the global
market leader in the retail hair care market with over 20%
global market share primarily behind our Pantene and Head &
Shoulders brands.
Grooming: We compete in Shave Care and Appliances. In
Shave Care, we are the global market leader in the blades and
razors market. Our global blades and razors market share is
nearly 65%, primarily behind the Gillette franchise including
Fusion, Mach3, Prestobarba and Venus. Our appliances, 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 nearly 45% 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
nearly 20% global market share behind our Oral-B and Crest
brands. In personal health care, we are a top ten competitor in
a large, highly fragmented industry, primarily behind
respiratory treatments (Vicks brand), nonprescription
heartburn medications (Prilosec OTC brand) and digestive
wellness products (Metamucil, Pepto Bismol, and Align
brands). Nearly all of our sales outside the U.S. in personal
health care are generated through the PGT Healthcare
partnership with Teva Pharmaceuticals Ltd.
Fabric & Home Care: This segment is comprised of a variety
of fabric care products including laundry detergents, additives
and fabric enhancers; and home care products including
dishwashing liquids and detergents, surface cleaners and air
fresheners. In fabric care, we generally have the number one
or number two market share position in the markets in which
we compete and are the global market leader with nearly 30%
global market share, primarily behind our Tide, Ariel and
Downy brands. Our global home care market share is nearly
25% across the categories in which we compete.
Baby, Feminine & Family Care: In baby care, we compete
mainly in diapers, pants and baby wipes with nearly 30% 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 nearly $9 billion. We are the global market
leader in the feminine care category with over 25% global
market share, primarily behind Always. We also compete in
the adult incontinence category in certain markets, achieving
over 10% market share in the markets where we compete. Our
family care business is predominantly a North American
business comprised largely of the Bounty paper towel and
Charmin toilet paper brands. U.S. market shares are over 40%
for Bounty and over 25% for Charmin.
Selling and Market Operations
Our SMOs are responsible for developing and executing go-
to-market plans at the local level. The SMOs include dedicated
retail customer, trade channel and country-specific teams. Our
SMOs are organized under six regions comprised of North
America, Europe, Latin America, Asia Pacific, Greater China
and India, Middle East and Africa (IMEA). Throughout the
MD&A, we reference business results in developed markets,
which are comprised of North America, Western Europe and
Japan, and developing markets which are all other markets not
included in developed.
Global Business Services
GBS provides technology, processes and standard data tools
to enable the GBUs and the SMOs 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, tax, external relations,
governance, human resources and legal, as well as other
centralized functional support.
STRATEGIC FOCUS
P&G aspires to serve the world’s consumers better than our
best competitors in every category and in every country in
which we compete, and, as a result, deliver total shareholder
return in the top one-third of our peer group. Delivering and
sustaining leadership levels of shareholder value creation
requires balanced top-line growth, bottom-line growth and
strong cash generation.
Our strategic choices are focused on winning with consumers.
The consumers who purchase and use our products are at the
center of everything we do. We increase the number of users
- and the usage - of our brands when we win at the zero, first
and second moments of truth: when consumers research our