Sustaining Growth through Innovation

This is strong performance, but the challenge of sustaining growth is greater today than at any time in the past 50 years. Commodity and energy costs continue to rise for companies. Consumers are facing higher food and gas prices, declining home values, and rising levels of unemployment. The question shareholders and prospective investors are asking is: “How will P&G sustain growth in today’s challenging and uncertain economic environment?”

The answer is clear to all of us at P&G: we will continue to innovate in every part of our business. Innovation is at the heart of P&G’s business model. It is the primary way we delight consumers, create value with retail partners, and create new business models to deliver consistent, sustainable growth at or ahead of the Company’s goals.

A lot of companies talk about innovation, but P&G has demonstrated the capability — over decades — to innovate consistently, reliably and successfully. We have a long list of innovation firsts in our industry:

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  Tide was the first heavy-duty laundry detergent
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  Crest, the first fluoride toothpaste clinically proven to prevent tooth decay
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  Downy, the first ultra-concentrated rinse-add fabric softener
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  Pert Plus, the first 2-in-1 shampoo and conditioner
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  Head & Shoulders, the first pleasant-to-use shampoo effective against dandruff
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  Pampers, the first affordable, mass-marketed disposable diaper
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  Bounty, the first three-dimensional paper towel
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  Always, the first feminine protection pad with an innovative, dry-weave topsheet
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  Febreze, the first fabric and air care products that actually remove odors from fabrics and the air
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  Crest White Strips, the first patented in-home teeth whitening technology

P&G continues to be one of the few companies in our industry that creates new categories and brands, new performance standards, and new definitions of consumer value. Swiffer and Febreze created entirely new product categories. Crest Pro-Health, Olay Regenerist and Definity, Pampers Baby Stages of Development, and Tide with Bleach redefined high performance in their categories. Olay innovation has created new consumer experiences that are as good as — or better than — several-hundred-dollar department and specialty store brands.

We innovate so consistently across our diverse portfolio of businesses, and so consistently over time, because we’ve created a unique design for innovation at P&G.

1. We define innovation broadly.

2. We invest in innovation at industry-leading levels.

3. We manage innovation with discipline.

4. We deliver innovation that builds consumer trust and loyalty over time.

5. We lead innovation with global brands and an outstanding team of innovation leaders.

This integrated, end-to-end approach is complemented by P&G’s global scale and scope, which is unrivaled in our industry.

The result is an innovation design that enables P&G to win with consumers and retail customers and to generate sustainable long-term growth and shareholder value.