Bob McDonald, President and Chief Executive Officer
P&G has a solid foundation for growth. Our strategies are working. Our billion-dollar and half-billion-dollar brands are among the strongest in the world. P&G’s core strengths are those that matter most to winning in our industry. Our relationships with retailers, suppliers and innovation partners are enormous sources of competitive advantage. And the leadership team now in place has been carefully groomed through experience and coaching to lead P&G in the decade ahead. We are building on a rock-solid foundation of continuity. This is one of P&G’s greatest advantages.
The Power of Purpose
In fact, leading change on a foundation of continuity has been at the heart of P&G’s success throughout its history. P&G will be 172 years old this October. We have grown through multiple economic cycles: boom years, recessions, the Great Depression. We’ve also grown in the face of unrelenting change: two world wars, economic crises, massive technological change, significant demographic shifts and continuously changing consumer expectations. Despite all this, P&G’s total shareholder return has outperformed the industry and broader markets over the long term. Why?
I believe it comes down to one simple and remarkably constant factor: the clarity and constancy of P&G’s Purpose. Since the Company was founded, we’ve been in the business of providing daily essentials that improve the quality of people’s lives. We help people care for their babies, pets and homes. We make everyday chores easier to do. We help people look and feel better. We’ve stayed true to the inspiring Purpose of touching and improving people’s lives in meaningful ways.
It’s at times like we’re living in today — when change is volatile and unsettling, when norms we’re accustomed to no longer seem certain — that clarity of Purpose matters more than ever.
More than a year ago, A.G. and I, along with the vice chairs and other senior leaders, began the effort to renew P&G’s strategies. We began this work with P&G’s Purpose in mind. We have now updated the Company’s growth strategies and identified a few critical interventions needed to strengthen our businesses — fully acknowledging the economic crisis in front of us but equally focused on the longer-term growth of our Company. I want to use this, my first letter to shareholders as CEO, to explain our choices and decisions. This will help you to clearly see P&G’s vision for growth in the decade ahead.
P&G Growth Strategy: Touching and improving more consumers’ lives in more parts of the world more completely
Where to Play:
- Grow leading, global brands and core categories
- Build business and underserved and unserved consumers
- Continue to grow and develop faster-growing, structurally attractive businesses with global leadership potential
How to Win:
- Drive Core P&G Strengths in consumer understanding, brand building, innovation and go to market
- Simplify, Scale and Execute for competitive advantage
- Lead change to win consumers and customers