“ touching lives, improving lives” SUBMITTED BY VENI SEHGAL
Introductiono A Fortune 500 American
multinational corporation headquartered in Downtown Cincinnati, Ohio. It is 6th in Fortune's Most Admired Companies 2010 list.
Headquarters , Ohio
P&G CompanyArea served WorldwideKey people Bob McDonald(President) &
(CEO)Revenue increase US$78.9 billion Operating income increase $16.13 billion Net income increase $12.74 billion Total assets increase $134.83 billion Total equity increase $63.099 billion employees 127,000 (2010)Website pg.com
Company’s Operations As of July 1, 2007, the company's operations are
categorized into three "Global Business Units" with each Global Business Unit divided into "Business Segments" according to the company's March 2009 earnings release.
beauty segment
grooming segment
baby care and family care segment
fabric care and home care segment
health care
segment snacks
and pet care segment
Beauty & grooming
Household care
Health & well being
Products at a glanceBeauty & Grooming- gucci
fragrances,head&shoulders,olay,mach3,wella
Health&Well Being- vicks, pringles,
oral-b, crest, align ,fixodent, tampaxHousehold Care - ariel,
duracell,joy,tide,bounty,dawn,mr.clean, pampers.
Pillars of success We market nearly 300 brands in more than
160 countries. We are global leaders in seven of the 12
different product categories in which we compete. Our closest competitor leads in only two.
We have 23 billion-dollar global brands. We spend more than $5 million a day on
research and development. Our sales total more than $75 billion
worldwide.
Recipe of successBrands tied to product technology.
Product innovation cornerstone of success.
Marketing as key catalyst quality at minimum prices.
Ability to achieve business plans.
Ability to maintain customer relationship.
Successful implementation of cost improvement.
vision Accelerates its commitment to long-term
environmental sustainability vision. :Powering its plants with 100% renewable energyUsing 100% renewable or recycled materials for
all products and packagingHaving zero consumer and manufacturing waste
go to landfillsDesigning products that delight consumers while
maximizing the conservation of resourcesThe new vision provides P&G with a long-term
framework to guide all sustainability decisions and goal-setting within the organization.
category goals2020
ProductsReplace petroleum-based materials with sustainably sourced renewable materials
25%*
Cold Water Washing 70% of total washing machine loads
Packaging Reduction 20% (per consumer use)*
Consumer Solid Waste
Pilot studies in both developed and developing markets to understand how to eliminate landfilled/dumped consumer solid waste
OperationsRenewable Energy Powering our Plants 30%
Manufacturing waste <0.5% (disposed)Truck Transportation Reduction 20% (km/unit of volume)*
Mission Our
mission to add
vitality to life.
We are leaders in
our area of
responsibility
with a deep
commitment to
deliver leadership
results.
We have
a clear
vision of
where we
are going.
We focus are
resources to achieve
leadership strategies and
objectives.
We promise to deliver our best and eliminate organizational barriers.
Financial growthProcter & Gamble Ticker:
Market Cap: $156.4 billionP/E Ratio: 15Earnings Growth: 10%Dividend Yield: 3.3%
Growth of different segments in current financial year as follows:
Beauty & grooming
Beauty (34.0% of 2010 sales, 38% of 2010 net income)Proctor & Gamble's global market share in blades and razors is 70%, primarily centered around its Mach3, Fusion, Venus, and Gillette brands.
Acquisitions in 2009: expanded market share by
acquiring “the art of shaving” and men’s skin care line ZIRH.
HEALTH & WELL-BEINGHealth and Well-Being (18.3%
of 2010 sales, 20% of 2010 net income)
In oral care, the company has the number two market share position at 20% globally. In potato chips, the company's Pringles brand holds a market share of approximately 10%.
HOUSEHOLD CAREHousehold Care (48.4% of
2010 sales, 50% of 2010 net income)
The Household Care GBU manufactures a wide range of products from laundry detergent to diapers. The company's baby care market share in 2008 was 29%.
Analysis (last updated end of FY08
Sales
beauty groominghealth care
snacks
home care family care
Salesusintl de-veloping 30intl de-veloped 30
Revenue by geography Revenue by segment
Global competitors
unileverUnilever is an Anglo-Dutch
multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products
Turnover increased 6.7% to €10.1 billion (roughly $12 billion).
Underlying sales growth grew 4.1% with the most growth in the Asia/Africa region (7.6%) and the ice cream & beverages and personal care segments, which had 7.4% and 7.9% growth respectively.
Net income grew 31% to €1 billion (roughly $12 billion).
products Unilever products are sold in more than
170 countries like Africa, Asia, Latin America, the Middle East, North America, and Western Europe.
Unilever's vast portfolio includes 11 brands that ring up more than $1 billion each annually. The best sellers include Hellmann's (mayonnaise), Knorr (soups), Lipton (tea), Dove and Lux (soaps), and Sure and Degree (antiperspirants).
brand portfolioVarious segments of product
category: Food ,homecare, personal
care, water, nutrition, health &
hygiene The best sellers include
Hellmann's (mayonnaise), Knorr (soups), Lipton (tea), Dove and Lux (soaps), and Sure and Degree (antiperspirants). Sunsilk ,lux ,brook bond ,surf ,axe, ponds.
Marketing strategies
Engaging with consumers to understand there needs
and preferences
Brand development- communication innovation renovation
Brand building-translate
mission into plans and practical activity
Also strong distribution network and high level of
brand experience
positioning-culture to win
Consistent winning
organisation
Consumer & customer focus
Bias for action
Accountability & responsibility
Kimberly- clarkNobody knows noses and diapering babies better than
Kimberly-Clark, the world's top maker of personal paper products. The company operates through four business segments:
personal care, consumer tissue, K-C Professional, and health care.
With $19.1 billion in sales for FY 2009net income of $1.88 billionRevenue US$19.1 Billion (FY 2009)
Operating income US$2.67 Billion (FY 2009) Net income US$1.88 Billion (FY 2009)
Total assets US$19.2 Billion (FY 2009) Total equity US$5.41 Billion (FY 2009) Employees 56,000 (July 2010)
productsKimberly-Clark's largest unit, personal care, makes products such as diapers (Huggies, Pull-Ups), feminine care items (Kotex), and incontinence care products (Poise, Depend).other products are: Kleenex Depend Huggies Kim wipes Scott kleenguard
Financial growth Personal Care (43.7% of net sales,
61.6% of operating profit).The Consumer Tissue segment
manufactures and markets facial and bathroom tissue, paper (33.5% of net sales, 26.1% of operating profit).
Professional & Other (15.7% of net sales, 16.4% of operating profit).
Health Care (8.7% of net sales, 8.6% of operating profit ).
strategiesInnovation summits and top-to-top
meetings with its strategic customers
K-C obtain insights and early support from new products to category
development strategies.
The relationships and supply chain management that K-C has developed
with retailers and suppliers has been a win/win situation.
K-C has taken over markets through acquisitions and mergers as well as building new plants in
new locales “In the last 8 years the company has made 40 acquisitions to achieve leading market
shares.
Johnson & johnson
It's nearly impossible to get well without Johnson & Johnson (J&J). The diversified health care giant operates in three segments through more than 250 operating companies located in some 60 countries.
Pharmaceuticals Medical devices Health care Toiletries Soaps shampoos
Product categoryPharmaceuticals division makes drugs like neurological conditions, blood disorders, autoimmune diseases and pain. psoriasis drug ,Remicade and schizophrenia medication Risperdal.Medical Devices and Diagnostics division surgical equipment, monitoring devices, orthopedic products, and contact lenses, among other things.
Consumer segment makes over-the-counter drugs and products for baby, skin, and oral care, as well as first aid and women's health.
Facts & figuresRevenue US$61.9 Billion (FY
2009) Operating income US$15.7 Billion (FY 2009).
Net income US$12.3 Billion (FY 2009) Total assets US$94.7 Billion (FY 2009) Total equity US$50.6 Billion (FY 2009) Employees 118,700 (2009).
Startegies Expand total market –new userspenetrate markets-offer low
prices and free samples and give away’s
More usage-more per use-more no. of times use-eg refill packs
Product innovation as per needsProduct extension for all the age
groups
positioningJohnson & Johnson is
called a virtual health-care mutual fund for good reason; it has a passion and proficiency for all things healthcare. The consumer goods division is the smallest of three health-related segments-- the other two being pharmaceuticals (39% of profits) and medical devices (46% of profits).
Colgate-palmoliveColgate-Palmolive is one of the world's largest
Consumer Products companies by market share with commercial presence on six continents.
Known for its toothpaste and oral hygiene products with a $15.3 billion in net sales and $2.3 billion in net income for fiscal year 2009.
As of the end of 2009, the company holds a staggering 44.4% global market share with its flagship toothpaste line.
global presence: over 82% of the company's 2009 revenues came from outside the United States.
45% of sales came from rapidly growing emerging markets, with Latin America representing Colgate's single largest source of revenue in 2009.
brand portfolio
Colgate Palmolive hurricane dynamo Handi wipes
Financial growthEarning results- In the third quarter
ending September 2010, Colgate's net income rose 4.9% Net income increased to $619 million, or $1.21 per share, compared to analyst expectations of $1.19.
CEO Ian Cook said he expects "mid-single digit earnings per share growth" for the next year as the company attempts to boost volume and market share.
Global overviewglobal presence: over 82% of the company's
2009 revenues came from outside the United States.
45% of sales came from rapidly growing emerging markets, with Latin America representing Colgate's single largest source of revenue in 2009.
Region wise salesNorth america-19% of net salesLatin america-27%of net salesAsia /africa-17% of net salesEurope-sales grew by 6%
Pictorial analysis
Sales
asia/pacific africa 14%
us
western hemi-sphere 8%
europe
Sales
con-sumer goods 24%pharma-ceuticals 40%medical devices 36%
Revenue by region Revenue by segment
strategiesSegmentation- on
demograhic ,geographic behavourial basis.
Targeting—serving customer through differentiated marketing.
Positioning-matching of companies strengths and market oppournities.
Competing products Love the skin you are
in
Olay
Olay (known until 1999 as Oil of Olay in South Africa and North America, Oil of Ulay in the United Kingdom and Oil of Olaz in some European countries) is the top skin care retail brands in the world, except for Japan.
For the 2009 fiscal year ended June 30, Olay accounted for an estimated $2.8 billion of P&G's $79 billion in revenue. With a global audience in almost 70 countries.
strategyOlay has pushed aggressively
into the upper end of the market with a series of premium-priced anti-aging and regenerating products.
The segment from rivals Dove, Neutrogena and Nivea, each of which has rolled out a similar host of brands.
stpSegmentation – on
demographic basis like age, income level, Social status.
Targeting- on geographical basis like in Canada, China, Europe ,Uk, North America, South Africa.
Positioning-on meaningful differences by applying strategies for the target market.
rivalsAvon Revlon J&j
neutrojenaNiveaDoveponds
arielLaundry Detergent Owner Procter & Gamble Country United Kingdom Related Brands Joy Markets Europe, Mexico, Japan,
Brazil, Peru, Turkey, Colombia, Venezuela, Pakistan, Philippines, India, Panama, Middle East
Product depthAriel Biological, biological with bleach for whitesAriel Colour and Style, a biological bleach free
product to protect coloursAriel Sensitive (formerly known as Ariel Non Bio,
without enzymes supposedly protecting sensitive skin):
Ariel Biological with Febreze: as Ariel biological but with the added freshness of Febreze
Ariel Stain Pen: a stain pre-treatment product.Ariel Handwash: twin-tub powder; also refers to a
high-suds version of liquid sold in smaller bottle.
stpSegmentation-Demographic-family sizeNiche marketingUrban & semi urban areaUser status-regular, potential ,non usersTargeting-General consumersColor sensitiveness of clotheswomen
positioning
Premium brand against competitors
Superior technologyEnvironmental friendlyRemove tough stainsFragrance oriented
Competitors NirmaHenkelSurf
excelGhari
Future strategiesAdopting penetration strategyMore aggressive promotion in
rural areasDifference in launching i.e in rs.5
and rs.10 sachetsStrengthening the marketing
channelsThus creating desirability and
availability of the product Ariel.
Future prospects -p&gProcter & Gamble, already the world’s largest
consumer goods company, says it is making progress towards its ambitious goal of adding another one billion consumers to its global business by 2015, driven largely by growth in emerging markets.
New lower cost version of its Tide detergent in India, called Tide Naturals, that is priced 30 per cent below the regular Tide product, aimed at lower-income households.
It also launched a mid-priced version of its Mach3 men’s triple-blade razor aimed at increasingly affluent middle class customers in Asia and Latin America.
A new men’s skin-care product in China.
Contd.Other efforts have included expanding its
Latin American Ace brand detergent to Colombia
Further expansion of distribution of its Oral-B tooth care brand in Brazil, where it was introduced earlier in the year in pharmacies.
P&G said it has also stepped up efforts “to dramatically increase” its presence in East Africa.
It also highlighted its “10,000 Villages” programme with the Chinese government, which is aimed at creating distribution networks for household products in rural areas. The project, McDonald said, allows P&G to “expand the distribution of our products into rural areas of china to reach more Chinese consumers and to create economies where economies never existed”.
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