Procter & Gamble Executive Insights Cheat Sheet
Christopher Ferrara – Bank of America Merrill Lynch: I guess the question is about the sales acceleration, and so obviously the sheer number of new products you guys are launching is much higher than what we’ve seen more recently, and that alone is going to drive better sales and market share. But I guess, can you give us a sense for why specifically you think that we’re truly seeing the impact of higher quality innovation that might lead to more sustainable sales growth, and why it’s not just the result of – you just accelerated activity that isn’t necessarily sustainable?
Bob McDonald – Chairman, President and CEO: Well, I think, Chris, Tide PODS is a great example of that. We introduced Tide PODS which is a very discontinuous innovation. It’s taken about three quarters of the unit dose category in the United States. When we look at the consumers that it’s gaining, it’s gaining consumers from up and down the income spectrum. So, even though it might be priced as a premium on a per wash basis, you’ve got consumers who would buy lower-priced brands trading up to that innovation. And as Jon said in his remarks, we expect by the end of the year this will be $0.5 business. So, you take $0.5 billion of new business on one innovation – one discontinuous innovation, one country, one brand, and as John said, we’ve already built the plan, we’re expanding in Western Europe in the April to June quarter. So, you can just imagine the sales and earnings potential of just that one discontinuous innovation as we expanded around the world. I think that’s probably the best example.
Jon R. Moeller – CFO: And you’ll also remember, Chris, I think, in our Analyst Day discussion and Bruce Brown’s presentation on innovation, we talked about an acceleration we’re expecting and what we refer to as, change innovation, which goes beyond the commercial activity that’s truly changed the consumer experience and the dynamics of a category. So, we do think we’re on a much stronger innovation footing as we go forward.
Bob McDonald – Chairman, President and CEO: And, of course, there are new categories we’ve entered too. Jon mentioned ZzzQuil and sleep-aid. We entered the auto care fragrance category, and as we also talked, we’ve bolstered our new category innovation as well and we fully expect some of those innovations to come to market over the next year or so.
Reacceleration of Emerging Markets
Dara Mohsenian – Morgan Stanley: So the increase in the low end of the organic sales growth guidance for the full year, can you discuss where you’ve come in better than expected on a geographic basis and what’s driving that confidence in general? Then it looks like in emerging markets, the sales growth is slow to more like the 7% range in last couple of quarters versus 10% over the past couple of years. So is that more of just the category growth issue with macro slowing a bit or is it a market share issue and can you talk about if you expect emerging markets to reaccelerate in the back half of the year?
Bob McDonald – Chairman, President and CEO: Relative to geography, there we’re really seeing growth both in developed markets and developing markets. Recall, our – two of our focus areas are maintaining our momentum in developing markets and developing markets were up 7% this quarter. They were up 11% in the BRIC countries. And if you look at two major countries like China or like India and Brazil, they were up 20%. So, we are continuing to grow in developing markets, we are continuing to enter new category country combinations, we’ll enter 20 this year, we are continuing to build new factories in developing markets, roughly 20 that are on the drawing board now. So, we are growing in developing markets and a lot of that is the expansion of categories like Jon talked, Oral Care, a lot of that also is our growing market share. We are also growing in developed markets.
We are strengthening our developing market business as Jon said, we’ve held of built share in businesses representing nearly 60% of the sales in the quarter in the U.S. and the interventions that we’ve put in place like in U.S. laundry, U.S. auto dish, U.S. males blades and razors or Oral Care as Jon covered are helping us get our shares back to the point that we think they should be. So, it’s really broad based. I think we said in our remarks, every segment of business grew organic sales at least 2% or more.
Jon R. Moeller – CFO: I would just one thing and then I will answer the next part of your question. If you look at everything that Bob just said is spot on. If you look at – versus expectation, what part of the business is exceeding the most? Encouragingly that’s North America and the reason that’s encouraging is one, that’s one of our strategic priorities and second it’s our most profitable business. So we’re very encouraged by that. Two you – to the question of developing market growth rates for P&G, and what we should expect going forward, we’re still expecting 8% or higher growth, so an acceleration of growth on the back half for the full fiscal year. Part of the 40/20/10 plans as Bob mentioned, January is the first month when those are out fully in market. And those have a big developing market component as well. So, our plans will be strengthening in the back half in developing markets and we expect to accelerate the rate of sales growth even beyond what we’ve done so far.
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