1. Procter & Gamble
Cincinnati, OH
www.pg.com
Beauty sales: $23.0 billion
Corporate sales: $76 billion
Key Personnel:
Corporate—A.G. Lafley, chairman of the board and chief executive officer; Susan E. Arnold, president-global business units; Robert A. McDonald, chief operating officer; Clayton C. Daley, Jr., vice chairman and chief financial officer; Richard L. Antoine, global human resources officer;
A.G. Lafley
|
G.Gilbert Cloyd, chief technology officer; R. Keith Harrison, Jr., global product supply officer; James J. Johnson, chief legal officer and secretary; Mariano Martin, global customer business development officer; Charlotte R. Otto, global external relations officer; Fillipo Passerini, chief information & global services officer; Marc S. Pritchard, president-strategy, productivity & growth; James R. Stengel, global marketing officer, Steven W. Jemison, deputy general counsel; Jon R. Moeller, vice president and treasurer; Valarie L. Sheppard, vice president and comptroller.
Global Beauty:
Charles V. Bergh, group president, global personal care; Christopher de Lapuente, group president, global hair care; Bracken Darrell, president, Braun; Virginia C. Drosos, president, global personal beauty; Robert Jongstra, president, global professional care; Hartwig Langer, president, global
Susan Arnold
|
prestige products.
Global Operations:
Werner Geissler, vice chairman, global operations; Deborah A. Henretta, group president, Asia; Laurent L. Phillippe, group president, Central & Eastern Europe, Middle East & Africa; Edward D. Shirley, group president, North America; Stephen D. Bishop, president, North America market operations; Ravi Chaturvedi, president, Northeast Asia; Giovanni Ciserani, president, Western Europe; Daniela Riccardi president, Greater China; Jeffrey K. Schomburger, president, global Wal-Mart team; Jorge A. Uribe, president, Latin America.
Products/Brands:
Aussie, Head & Shoulders, Olay, Pantene, Wella, Cover Girl, Camay, Ivory, Max Factor, Noxema, Gillette Series, Herbal Essences, Hugo Boss, Lacoste, Nice ’n Easy, Old Spice, Safeguard, Secret, Zest.
New Products:
Olay Complete Night Fortifying Cream; Olay Definity Eye Illuminator.
Nice'n easy is a key brand for P&G.
|
Comments:
Procter & Gamble’s performance in fiscal 2007 was once again impressive, and the company earned a place among the top 10 in Fortune’s “America’s Most Admired Companies, 2007.” In a demanding year of rising costs, competition and the work required to integrate Gillette, the company’s net sales increased 12% to $76 billion, with an organic sales increase of 5%.
P&G’s beauty net sales were $23 billion, up 9% over the prior year. Net earnings were up 12% to $3.5 billion. Volume growth was driven by initiative activity across categories and continued expansion in developing regions, where volume increased by double-digits. Billion-dollar brands Olay and Head & Shoulders each grew sales double-digits for the year. A global market leader in hair care, P&G says it holds about one quarter of the market and says Head & Shoulders has nearly doubled its annual sales in just four years, making it the second largest shampoo brand in the world. Global annual sales of Herbal Essences have grown 40% since P&G acquired the brand in fiscal year 2002. Olay has become the world’s leading retail skin care brand, largely due to its range of anti-aging products.
Volume jumped double-digits on prestige fragrances, behind The One, Boss Selection and Boss Femme, and the addition of Dolce & Gabbana. Skin care volume was up high single digits due to Olay Definity and Regenerist product initiatives. Hair care volume grew mid-single digits due to continued expansion of Pantene, Herbal Essences and Head & Shoulders in developing regions.
Pantene is just one of P&G's billion dollar brands.
|
Beauty sales benefited from a 1% positive mix impact primarily due to disproportionate growth in prestige fragrances, which has a higher-than-segment average unit selling price. Favorable foreign exchange contributed an additional 3% to sales. Organic sales were up 5%, including a negative 1% impact from the sales disruption in Asia that resulted from the voluntary temporary suspension of SK-II shipments in China early in the fiscal year.
With all its success, P&G still holds less than 10% of the $360 billion beauty and health care market—a segment that’s projected to grow 3% to 4% for the balance of the decade. And with baby boomers increasingly concerned with their less-than-youthful skin, P&G is focusing on the dermatologist skin care segment as a key growth category. Early in the year, the corporate giant acquired HDS Cosmetics Lab, Inc., the company that manufactures and markets Doctor’s Dermatologic Formula skin care. Marketed as “skin care without a prescription,” and sold in specialty retail and department stores and spas throughout the U.S. and in other countries, the line features products for acne, sensitive skin and hyperpigmentation, as well as anti-aging care.
In line with its innovative leadership programs, P&G announced a new management structure effective July 1. Three new global business units (GBUs) were established: Beauty; Global Health & Well-Being; and Household Care. All three will report directly to Susan Arnold, president of global business units. Arnold reports to P&G’s A.G. Lafley, chairman of the board and chief executive officer. The position of chief operating officer was also added, with Robert McDonald elected to fill that slot. The company has also developed a strong leadership program for its top-level managers.
|
