Marketing Objective Size Market Positioning The markets in which Tide products are sold are highly competitive.

Tide products compete against similar products of many large and small companies, including well-known global competitors. In many of the markets and industry segments in which it sell our products, Tide compete against other branded products as well as retailers' private-label brands. Tide supports its products with advertising, promotions and other vehicles to build awareness of our brands in conjunction with an extensive sales force. Product quality, performance, value and packaging are also important competitive factors. Innovation/increase in product range Tides ability to meet our growth targets depends on successful product and operations innovation and its ability to successfully respond to competitive innovation. Achieving the business results depends, in part, on the successful development, introduction and marketing of new products and improvements to our equipment and manufacturing processes. Successful innovation depends on our ability to correctly anticipate customer and consumer acceptance, to obtain and maintain necessary intellectual property protections, and to avoid infringing the intellectual property rights of others. It must also be able to successfully respond to technological advances by and intellectual property rights granted to competition, and failure to do so could compromise its competitive position and impact our results. Research and development expenditures enable us to develop technologies and obtain patents across all categories in order to meet the needs and improve the lives of our consumers. Total research and development expenses were $2.0 billion in 2012 and 2011, and $1.9 billion in 2010.

Creation of brand loyalty/goodwill If the reputation of the Company or one or more of its brands erodes significantly, it could have a material impact on our financial results. The Company's reputation is the foundation of our relationships with key stakeholders and other constituencies, such as customers and suppliers. In addition, many of Tides brands have worldwide recognition. This recognition is the result of the large investments it has made in its products over many years. The quality and safety of Tides products is critical to its business. The company account for acquired businesses using the acquisition method of accounting. The assets acquired and liabilities assumed are recorded at the date of acquisition at their respective estimated fair values, with any excess of the purchase price over the estimated fair values of the net assets acquired recorded as goodwill. Significant judgment is required in estimating the fair value of intangible assets and in assigning their respective useful lives. Survival Detergent businesses face cost fluctuations and pressures which could affect the business results. The costs are subject to fluctuations, particularly due to changes in commodity prices, raw materials, labor costs, energy costs, pension and healthcare costs, foreign exchange and interest rates. Therefore, the success is dependent, in part, on the companys continued ability to forecast and manage these fluctuations through pricing actions, cost savings projects (including outsourcing projects) and sourcing decisions, while maintaining and improving

margins and market share. In addition, companys financial projections include cost savings described in our announced productivity plan. Failure to deliver these savings could adversely impact our results.

Corporate objectives Finance Human resources (HR) Operational issues The key metrics included in the discussion of companys consolidated results of operations include net sales, gross margin, selling, general and administrative expenses (SG&A), other non-operating items and income taxes. The primary factors driving year over year changes in net sales include overall market growth in the categories in which it compete, product initiatives and geographic expansion, all of which drive changes in our underlying unit volume, as well as pricing actions (which can also indirectly impact volume), changes in product mix and foreign currency impacts on sales outside the Unation. Most of the cost of products sold and SG&A expenses are to some extent variable in nature. Accordingly, the discussion of these operating costs focus primarily on relative margins rather than the absolute year over year changes in total costs. The primary drivers of changes in gross margin are input costs (energy and other commodities), pricing impacts, product and geographic mix (for example, gross margins in developed markets are generally higher than in developing markets for similar products), the impacts of manufacturing savings projects and to a lesser extent scale impacts (for costs that are fixed or less variable in nature). The primary drivers of SG&A are marketing-related costs and overhead costs. Marketing related costs are primarily variable in nature, although company do achieve some level of scale benefit over time due to overall growth and other marketing efficiencies. Overhead costs are also variable in nature, but on a relative basis, less so than marketing costs due to organisations ability to leverage it and systems infrastructures to support business growth. Resources available Maintaining the strong growth momentum organisation have established in developing markets is critical to delivering its near- and long-term growth objectives. Company is focusing resources first on the markets that offer the greatest growth opportunity. It will assess the potential for further portfolio expansions beyond the top 10 developing markets based on the top and bottom-line growth progress of the core business.

The nature of the product A material change in consumer demand for the products could have a significant impact on the business. The consumer products company rely on continued global demand for our brands and products. To achieve business goals, it must develop and sell products that appeal to consumers. This is dependent on a number of factors including the ability to develop effective sales, advertising and marketing programs. Company expect to achieve its financial targets, in part, by shifting our portfolio towards faster growing, higher margin businesses and by focusing on the most profitable businesses, biggest innovations and most important emerging markets.