touching & improving lives in asia · pantene clinicare was launched in japan in 2007 in...
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Printed in 2010
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Touching & Improving Lives in Asia
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P&G serves over 4 billion people
in the world today. And P&G
people work to make sure that
the Company’s brands live up to
their promise to make everyday life
just a little bit better, now and for
generations to come.
P&G’s single, unifying growth
strategy is rooted in our enduring
Purpose: We will grow by touching
and improving more consumers’
lives in more parts of the world…
more completely.
This strategy is working. We
are carrying it out across all of
our businesses, and around the
world. It guides our decisions, our
innovations, our investments and
our everyday actions.
Our Global PurposeWe will provide branded products and services of
superior quality and value that improve the lives of
the world’s consumers, now and for generations to
come.
As a result, consumers will reward us with leadership
sales, profit and value creation, allowing our people,
our shareholders, and the communities in which we
live and work to prosper.
Our Global PrinciplesWe show respect for all individuals. The interests of
the Company and the individual are inseparable. We
are strategically focused in our work. Innovation is
the cornerstone of our success. We are externally
focused. We value personal mastery. We seek to be
the best. Mutual interdependency is a way of life.
Our Values
P&G ValuesIntegrity
LeadershipOwnership
Passion for WinningTrust
P&G Brands
P&G People
Consumers
P&G Brands and P&G People are the foundation for P&G’s success. P&G People bring the values to life as we focus on improving the lives of the world’s consumers,
including those in Asia.
P&G’s Purpose – to touch and improve lives, now and for generations to come – is our vision, guiding principle, and growth strategy, all rolled into one. Our Purpose inspires our strategic choices; it leads us to bigger and better innovations; it drives brilliant execution and it compels us to make a meaningful difference to the world we live in.
In Asia, this Purpose takes on even greater meaning. An overwhelming number of people living in Asia earn less than $1 a day. Yet, some of the world’s richest people also live in this region. The demographics of Asia are also the most unique. Home to more youths than any other continent in the world, it also accommodates more than half the world’s population of adults aged 50 and above.
To meet the needs of all the people on this continent, P&G has committed to an overarching growth strategy, inspired by our Purpose: Touching and Improving Lives of More Consumers in More Parts of Asia, More Completely.
Touching and Improving Lives of More Consumers
There are 3.3 billion people in Asia, of whom P&G serves 2 billion today. We want to serve More Consumers by bringing innovations that help us meet the needs of low income consumers seeking superior performance at great value, affluent consumers looking for distinctive, premium experiences, and other consumers in between.
We did this last year by introducing Tide Naturals in India, a great variant of our iconic Tide brand at never-before price points to reach low income consumers. We complement that with high end innovations like Pantene Clinicare, Olay ProX, Safeguard Professional and liquid laundry detergents to meet the needs of higher income consumers.
We have also launched a partnership with the Singapore Polytechnic and University of Cincinnati to conduct early phase research for products that improve the lives of consumers aged 50 and above in Asia, an important and large consumer segment.
...in More Parts of Asia
We will also expand our presence to deeper reaches of Asia, particularly into rural homes, where a large percentage of Asia’s population live. In the long run, we will be present everywhere our consumers need us to be.
...More Completely
We will serve our consumers more completely by providing them with superior products in all their need categories. For example, last year, we went beyond our traditional offerings for men – Gillette blades & razors – to add Olay Men’s Solution and Gillette Skin Care in China.
…Now and for Generations to Come
As we grow the business, we will ensure that we grow responsibly and sustainably through Social Responsibility and Environmental Sustainability initiatives.
Leadership PerspectiveIn Asia, our various P&G Live, Learn and Thrive programs that are focused primarily on children’s education reached 19 million children in 2009/10 and 57 million in the past three years.
Separately, through our Disaster Relief Program leveraging our global P&G Children’s Safe Drinking Water Program, we have delivered 134 million liters of clean drinking water to date with our PUR Purifier of Water. Our newly-announced Singapore PUR plant set to open in 2012 is targeted to produce 200 million sachets of PUR each year to help save even more lives in Asia and around the world.
Our long term environmental sustainability vision is to power our plants with 100% renewable energy; using 100% renewable and recyclable materials for all products and packaging; adding zero consumer and manufacturing waste to landfills; and designing products that delight consumers while maximizing the conservation of resources.
We are on track to meet, if not exceed, all our environmental sustainability goals. We have successfully delivered products like Downy Single Rinse and packaging innovations on Pantene and Olay Total Effects that have significantly reduced environmental impact. Our plants continue to make significant year-on-year reductions in energy and water consumption, solid waste and carbon emissions.
We believe this Purpose-inspired growth strategy is intrinsically rewarding and motivating. It unleashes creativity, commitment and peak performance in our people. It forces an unrelenting focus on innovation, and it inspires us to build our business with unserved and underserved consumers.
This is a great time to be in Asia and P&G is proud to be touching and improving more consumers’ lives, in more parts of Asia…more completely, now and for generations to come.
P&G in Asia 1
Deb HenrettaGroup President, Asia
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2 P&G in Asia
P&G’s single, unifying growth strategy is rooted in our enduring Purpose: We will grow by touching and improving more consumers’ lives in more parts of the world…more completely.
This strategy is working. We are carrying it out across all of our businesses, and around the world. From a rural village in India, to the fast-developing cities of China, to the bustling urban centers of Japan, P&G’s global growth strategy guides our decisions, our innovations, our investments and our everyday actions.
It is best told by the people who are touched by this strategy — consumers across Asia, whose everyday lives have become a little better through the innovation and ingenuity of P&G brands and P&G people.
Here are just some of the stories.
more consumers
more partsof asia
more completely
Reaching More Laundry Consumers in India
Reaching more consumers in India’s laundry market meant developing a detergent with just the right balance of cleaning performance and mildness, at affordable prices.
About 80% of consumers in India — 200 million households — hand wash their laundry. P&G launched Tide Naturals in India in December 2009. With unique ingredients developed at our Beijing Innovation Center, Tide Naturals balances cleaning and mildness at a price that is 30% lower than regular Tide.
With Tide Naturals, P&G now offers laundry detergents at three distinct performance and pricing levels, delivering a solid value now affordable for more than 70% of Indian consumers.
Tide Naturals is an innovation that is helping P&G improve the lives of more consumers, like Sandhya.
More consumers in AsiaWe are touching and improving the lives of more consumers with innovative products that expand our category portfolios vertically up and down value tiers — delivering the right combination of performance and value to every consumer.
“Tide Naturals powder is very nice — I really like it! I can use less of it than my previous powder. Its granules have no harshness, yet it cleans better. And it has a very nice scent that helps keep my hands smelling fresh, clean and soft. I don’t feel it’s a chore anymore to wash clothes. I want to share my experience with everyone. If they use it once, they will use it for life.”
SANDHYA, INDIA
P&G in Asia 3
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“I recently started using Pantene Clinicare Frizz Defense
shampoo and conditioner. In just 10 days, I was surprised
by the improvement in my hair condition — it’s now
silky-looking and smooth to touch. I also like the scent of
the products and will continue to use Pantene Clinicare
every day!”
N.M., JAPAN
Expanding Premium Hair Care in Asia
Pantene Clinicare was launched in Japan in 2007 in response
to consumer research that showed that there was an older
group of consumers who have increased hair needs due to
accumulated damage to thinning and aging hair.
Developed in partnership with leading salon brand, Wella, the
Clinicare series is a super premium line offering the latest in
hair care technology to provide intensive treatment while
providing an indulgent experience.
Based on its success in Japan, we next expanded to Greater
China, targeting a group of consumers with severely
damaged hair. The launch was preceded by consumer
education on damaged hair, leveraging key opinion leaders
and endorsement from beauty magazines.
Pantene Clinicare has been equally successful in Greater China
and will continue to be expanded across Asia through 2011.
More parts of AsiaWe are touching and improving lives in more parts of Asia, by innovating and expanding our business into new geographies.
4 P&G in Asia
Growing Male Grooming Beyond Shaving in China
P&G has traditionally reached male consumers via shaving products
such as Gillette or Braun.
However, men’s skin care in China is today one of the fastest growing
categories, particularly among urban Chinese males. They are
growing increasingly conscious of their looks and are quickly adding
skin care products to their regimen.
Olay, the number one facial skin care brand in the world and in Asia,
saw an opportunity to reach out to this group of consumers in China
— a segment ripe for Olay’s unique blend of superior benefit and
value over other facial skin care brands.
To capitalize on this opportunity, we leveraged our knowledge and
understanding of men’s skin concerns from existing work on Gillette
and combined it with Olay’s expertise in developing world class
skincare products.
Tapping into a key consumer insight that oily skin is the top concern
for men, a new range, the Olay Men Solutions, was formulated to
effectively hydrate skin and reduce sebum.
Launched in China in March 2010, Olay Men Solutions is already on
track to win with men as we improve their lives more completely
beyond blades and razors.
More completelyWe are touching and improving lives more completely in Asia by innovating to enhance the performance of existing products, by creating or entering adjacent categories and by driving regimen use that broadens our product portfolios and improves consumers’ experiences with our brands.
“I have been taking care of my skin for years, but
have never found a suitable product designed for
men… until I discovered OLAY MEN Solutions. The
benefits of OLAY MEN are exactly what I need. It
feels really good on me: light and smooth, not
greasy at all, and most importantly, very simple to
use, with a great user experience! I would
recommend OLAY MEN to all my friends!”
JUSTIN, CHINA
P&G in Asia 5
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Key recognitions
Innovation
#1 Most InnovativeRecognized by SymphonyIRI Group as the most innovative manufacturer in the consumer packaged goods industry for the last decade with its “Outstanding Achievement in Innovation” award.
World’s Most Innovative CompaniesRanked by BusinessWeek as one of the world’s most innovative companies for five consecutive years from 2006 to 2010.
Winner, 2010 New TechnologyAwarded by Cosmetics & Toiletries magazine for Oli-Vityl® technology used in SK-II Skin Signature Series, and also for P&G’s research that led to the discovery of the theory of Skin Tipping Point.
Outstanding Employee Practices, AsiaRecognized by Singapore’s Ministry of Manpower, INSEAD and CNBC Asia Pacific for establishing innovative and impactful people practices in Asia with the “2010 Human Capital Award”.
#1 in Diversity, JapanAwarded the Grand Prize of the “2010 Diversity Management Prize Award” by leading publisher Toyo Keizai Inc for clear vision and robust organizational structure created to leverage diversity.
Top Graduate Employer, AustraliaRated #1 by graduate hires for three consecutive years from 2008 to 2010 through a survey conducted by the Australian Association of Graduate Employers.
#1 for Live Learn and Thrive, KoreaAwarded the Forbes Korea CSR Grand Prize in the Children’s Welfare category for its Live, Learn and Thrive corporate social responsibility program.
Outstanding Corporate Citizen, PhilippinesAwarded the 2010 Outstanding Corporate Citizen Award from the City of Makati, Philippines, on the occasion of the city’s 340th Foundation Day.
#1 in Sustainability, ChinaRanked among FMCG companies as a leader in sustainability with the Green Gold Platinum Award for Sustainability. Awarded by Sohu Green Channel, a major internet portal, and AT Kearney, and supported by the WWF and the Climate Group.
Talent Development Sustainability
Number of P&G brands – of P&G’s 50 leadership brands – that each generates more than USD 1 billion in annual sales. Asia is home to 19 of these billion dollar brands.
23 brandsNumber of years that P&G brands will have helped to make everyday life a little better in 2010. In Asia, P&G has been touching consumers’ lives for 75 years, starting with our first operations in the Philippines.
173 years
Leadership brands
Innovation is at the heart of our success. In fiscal 2010, we invested nearly USD 2 billion globally in Research and Development. In fact, we invest about 50% more than our closest competitor and more than most of our closest competitors combined. Four of our global innovation centers are based here in Asia – Beijing, Kobe, Singapore and Bangalore.
A measure of the strength of our innovation program is demonstrated through the portfolio of our 50 global leadership brands, some of the most well-known household names in the world, and in Asia.
6 P&G in Asia P&G in Asia 7 P&G in Asia 8
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Products
Downy Single Rinse:This is a product borne from the understanding that in many Asian countries, the multiple steps of “wash-rinse-rinse, add softener-rinse-rinse” in laundry require huge amount of water. Downy Single Rinse was developed to reduce the process from six to just three: “wash-add softener-rinse”. Since its launch in January 2008, Downy Single Rinse has saved nearly 25 billionliters of water – more than half the water needed to fill theSan Roque Dam, the largest dam in the Philippines.
Pantene Pro-V:Launched in February 2009 in Greater China, Pantene Pro-V has reduced 350 tons of packaging material. This is made possible by a new technology that enables scientists to identify the optimal weight of a bottle so that it can withstand the pressure of production, shipping and usage. From July 2010, the initiative started rolling out to the rest of Asia.
Employees
Through various programs like getting employees to “Think Twice Before Your Print”, “Double-Sided Printing” and “Managed Print Services”, the white paper usage per person has reduced by 67% in just two years. This translates to 5.8 million sheets of paper saved. When stacked up, the papers saved should reach 522 meters, taller than Taipei 101, one of the tallest buildings in the world.
Manufacturing Plants
Making Measurable Progress
P&G Asia is on track to meet its 2012 sustainability goals, and will move towards fulfilling the
2020 environmental goals announced in September 2010. Sustainability at P&G is not achieved
overnight, but through a series of measurable successes. These are some examples.
Now and for generations to comeP&G focuses its sustainability efforts on improvements that matter so that we can make the most meaningful impacts possible, while growing responsibly. Sustainability is embedded in our business growth and strategy as we continue to grow in Asia.
Today, P&G has in place a long-term environmental sustainability vision:• Power our plants with 100% renewable energy• Use 100% renewable or recycled materials for all products and packaging• Have zero consumer and manufacturing waste go to landfills• Design products that delight customers while maximizing the
conservation of resources
To meet this vision, P&G has developed new 10-year environmental goals, the first of which will be reached by 2020, to help make measurable progress. These 2020 goals are in addition to P&G’s existing 2012 sustainability goals.
(1) Sustainable Innovation Products are included if they have launched in market since July 1, 2007, and have a >10% reduction in one or more of the following indicators without negatively impacting the overall sustainability profile of the product: A. Energy, B. Water, C. Transportation, D. Amount of material used in packaging or products, E. Substitution of nonrenewable energy or materials with renewable sources.
(2) Live, Learn and Thrive (LLT) is P&G’s global cause that focuses our social investments on efforts that improve the lives of children in need aged 0 – 13.
10 P&G in Asia9 P&G in Asia
2012 GOALDevelop and market at least USD 2 billion in cumulative sales of “sustainable innovation products”, which are products that have an improved environmental profile.
2020 GOAL• Replace 25% of our petroleum-based
raw materials with sustainably- sourced renewable materials
• Deliver a 20% reduction (per consumer use) in our packaging
• Pilot studies in both developed and developing markets to understand how to eliminate land-filled / dumped consumer solid waste
2012 GOALReduce carbon dioxide emissions, energy and water consumption by an additional 20%, contributing to a 50% reduction.
2020 GOAL• Increase use of renewable energy in
our operations to 30% • Reduce waste in our plants to
below 0.5% • Reduce truck transportation by 20%
(km/unit of volume)
Strategy 1: ProductsDelight the consumer with sustainable innovations that improve the environ-mental profile of our products.
Strategy 2: OperationsImprove the environmental profile of P&G’s own operations.
Strategy 3: Social ResponsibilityEnable at least 75 million children to Live, Learn and Thrive. Deliver cumulatively 200 million liters of clean water to prevent diseases and save lives.
Strategy 4: EmployeesEngage and equip all P&G employees to build sustainability thinking and practices into their everyday work.
Strategy 5: StakeholdersShape the future by working transparently with our stakeholders to enable continued freedom to innovate in a responsible way.
Huang Pu Plant, Guangzhou, China:Plant equipment and piping systems have been modified, and compressed air used to clean up residues in between batch productions of shampoos to reduce water consumption. Residues from each batch are also collected and sent to an external company to produce floor cleaners and hand-wash products. In the last two years, the water saved is equivalent to the water consumption of 1,000 families in Guangzhou for 7.5 years. Meanwhile, waste generated has been reduced by 42%. This program has won major recognition from the government of Guangzhou, China.
Kuantan Plant, Malaysia:This oleo-chemical factory integrated sustainability into the site master plan in 2009, with a focus on improving energy efficiency to reduce electricity and natural gas usage. In 2009, the plant has reduced 1.23 million KwH of electricity and 105,175 GJ of natural gas. The electricity saved is enough to power a hybrid car for 3.6 million miles, while the amount of gas saved can support the lives of more than 2,000 people in Malaysia for a year.
Project Hope, China
In China, P&G partners with the China Youth Development Foundation to provide children in poverty-stricken areas with better access to education. P&G has donated nearly USD 9 million dollars to build 200 schools, benefiting over 100,000 children. P&G’s customers and suppliers have also participated, with 50 schools built jointly with them. 16 schools were also jointly built by the company and employees, with support matched 1:1 by P&G. These P&G Employee Hope Schools are now the centers of employee volunteer work.
Helping Children in Need to Live, Learn and Thrive
P&G is committed to focusing social investments and employee engagement on our global corporate cause: P&G Live, Learn and Thrive. This helps us to focus our energy on helping children in need, from birth to age 13, wherever they are. In Asia, P&G focuses primarily on ‘learn’ to provide educational opportunities for children in the region. As a result, in 2009, P&G helped 19.5 million children in need across over 10 countries in Asia. Over the last three years, we have touched the lives of nearly 57 million children in Asia.
Shiksha, India
In 2004, ‘Shiksha’, which means “education”, was launched with local NGO Child Relief & You to educate marginalized children in rural India. Shiksha also works with the State Education Department to review existing education policies, and creates awareness towards building more schools with better infrastructure and basic amenities. In 2009, P&G raised a record-breaking contribution of USD 777,000 and a pledge of support by India’s leading celebrities, sportsmen and education leaders to benefit over 96,000 children across 500 communities.
P&G in Asia 11
3-Pid Handog Edukasyon, Philippines
In the Philippines, one in every four children at the elementary level drops out due to poverty. This is why P&G Philippines and GMA Kapuso Foundation partnered to launch the 3-Pid Handog Edukasyon (Gift of Education) Program to help keep over 30,000 in school by providing them with much-needed school supplies. This program enabled consumers to directly and simply participate in the program as P&G donates a full set of supplies for every purchase of specially marked products.
Open Minds, Malaysia
Established in 1999, the Open Minds Malaysia program aims to improve the lives of children with developmental disabilities like cerebral palsy and autism. P&G has since contributed more than USD 2 million to this program, benefiting 7,000 special children. For the program’s 10th anniversary in 2009, P&G pledged another USD 320,000 to build multi-sensory therapy rooms at 40 community-based child rehabilitation centers in partnership with the Social Welfare Department and endorsed by the Ministry of Women, Family and Community Development (WFCD). Another 1,000 children are expected to benefit from this program.
Dreaming Together for the Future, Korea
This program was initiated in Korea by P&G with the Community Chest to teach, alongside P&G employees, handicapped children self-confidence and equip them with vocational training and social skills to give them a path to independence. The program benefited 10,000 children in 2009, a 5-fold increase since its establishment in 2005.
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P&G and the International Olympic Committee are creating the most far-reaching partnership of the Olympic Games
for the next 10 years to touch and improve lives.
The breadth of P&G’s portfolio, which includes 22 brands each generating USD 1 billion or more in annual sales, and
the depth of P&G’s reach to 4 billion people worldwide, make this the most far-reaching Olympic partnership. Some
of P&G’s most iconic brands participating in the partnership include Pampers®, Tide®, Ariel®, Whisper®, Crest®,
Pantene® and Olay®.
Within the context of this partnership, P&G will sponsor the next five Olympic Games, including London 2012, Sochi
2014, Rio 2016 as well as the 2018 and 2020 Olympic Games.
Additionally on a corporate level, P&G will support mothers and families of Olympians through the “Proud Sponsor of
Moms” and produce a documentary video series “Raising an Olympian: The P&G Momumentary Project” to celebrate
the dedication and sacrifice of mothers, families and their Olympians.
P&G recently started its first in a series of global ‘Thank You Mom’ initiatives — part of the ‘Proud Sponsor of Moms’
campaign — by sponsoring 25 mothers from all over the world to see their children compete at the inaugural 2010
Youth Olympic Games in Singapore. This included mothers from our Asian markets — Australia, Indonesia, Korea,
Malaysia, the Philippines and Singapore. In addition to the sponsorship, P&G also mobilized employees to host these
mothers during their time in Singapore. These volunteer employees were matched to mothers based on nationality
and language abilities, to provide mothers with a higher level of comfort, familiarity and assistance to navigate around
the country.
P&G will continue to expand our ‘Proud Sponsor of Moms’ campaign into a powerful global movement, to continue
to touch and improve lives.
12 P&G in Asia
*P&G employees with athletes’ mothers
P&G in Asia 13
Grooming leadersin AsiaIn Asia, as in the rest of the world, P&G is recognized as a leader in developing talent and grooming world class leaders. A key driver for our emphasis on attracting, developing and retaining the finest talent is our long standing philosophy of “Build From Within”. We have chosen to grow leaders over their entire careers, over decades, to fill our leadership positions instead of looking outside. This means that our very future depends on the quality of our people.
To develop a strong pipeline of Asian leaders and retain talent to support the growing needs of the business, P&G has designed an employee proposition that goes beyond the traditional compensation and benefits.
Called the Employee Value Proposition (EVP), P&G Asia sets out a promise to employees of the work environment that will be created for them, to motivate peak performance leading to retention of the best talent.
What makes P&G’s EVP unique is that it is truly holistic, incorporating six pillars that are deemed as the most important drivers of employee satisfaction.
Taking into account the diverse markets of Asia, strategies, programs and indicators comprising a blend of global, regional and local tools are used to fulfill these pillars in a locally relevant manner that is still consistent with the regional framework. The objective is to be as common as possible and as different as needed.
P&G not only sets out a promise, we measure our progress. Measure metrics are set in place for individual programs, and tracked via an annual employee survey. Local Human Resources functions also set 5-year targets working towards fulfilling the EVP.
P&G’s annual survey among its employees confirm that this approach is working. Our focus on the EVP has led to significant improvement in employee satisfaction and employee morale.
Pride in Company
Meaningful Work and
Career
Work-Life Effectiveness
Learningand
Development
Competitive and Fair Package
Healthy Relationship
with Manager
EmployeeValue
Proposition
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Beijing Innovation CenterChina
Kobe Innovation Center
Singapore Innovation Center
GBU
2010 Net Sales by GBU(1) (in US billions) Reportable Segment Categories Billion Dollar Brands
Beauty and GroominG $27.1 Beauty Cosmetics, Female Antiperspirant and Deodorant, Female Personal Cleansing, Female Shave Care, Hair Care, Hair Color, Hair Styling, Pharmacy Channel, Prestige Products, Salon Professional, Skin Care
Head & Shoulders, Olay, Pantene, Wella
Grooming Beauty Electronics, Home Small Appliances, Male Blades and Razors, Male Personal Care
Braun, Fusion, Gillette, Mach3
HealtH and Well-BeinG $14.6 Health Care Feminine Care, Gastrointestinal, Incontinence, Rapid Diagnostics, Respiratory, Toothbrush, Toothpaste, Water Filtration, Other Oral Care
Always, Crest, Oral-B
Snacks and Pet Care Pet Care, Snacks Iams, Pringles HouseHold Care $38.5 Fabric Care and
Home CareAdditives, Air Care, Batteries, Dish Care, Fabric Enhancers, Laundry, Surface Care
Ace, Ariel, Dawn, Downy, Duracell, Gain, Tide
Baby Care and Family Care
Baby Wipes, Diapers, Paper Towels, Tissues, Toilet Paper
Bounty, Charmin, Pampers
Global Financial information
2010 net sales
Beauty & GroomingHealth and Well-BeingHousehold Care
By business segment(% of total business segments)
These results exclude netsales in Corporate.
34%
48%
18%
North AmericaWestern Europe Central & Eastern Europe, Middle East & AfricaLatin America Asia
By geographic region
42%
21%
9%
15%
13%
DevelopedDeveloping
By market maturity
66%
34%
(1)These results exclude net sales in Corporate.
The P&G Asia Organization is designed for long-term sustainable growth
With core strengths and a diversified business portfolio, we are well-positioned to grow with
the robust economy in Asia and to win in our industry. We have designed strategic operational
and financial processes to deliver. And we have designed a management team and organization
to lead. With clear choices, smart and sufficient investments and an unwavering focus on
the sustainable development of our business, we have designed P&G to exceed consumers’
expectations and to consistently meet our growth objectives year after year.
Designed to growDriving innovation to accelerate growth in Asia
14 P&G in Asia