comparison between procter and gamble and unilever

Comparison between Procter and gamble and Unilever

Introduction • Formed in 1930 By the merger of Margarine

Unie (Dutch Company) & Lever Brothers (British Soap Company)

• Main Focus on it’s Foods, Personal care & Home Care Business.

• Second largest Consumer goods Company (After P&G)

• Third largest Food Firm after Nestle & Kraft Foods in the world.

Introduction • The Group operates through seven segments: a) Soaps and Detergents b) Personal Products c) Exports d) Beverages e) Foods f) Ice Creams and Other • Significant Business in US, Europe, Asia & Latin

America.

Introduction

• One of the Largest FMCG Companies in the world.• Number One maker & Marketer of Household

Products in U.S.• Five Business Segments includes Fabric & Home

Care, Baby, Feminine and family care, Beauty care, Health care, Food and Beverages

Introduction Ranked 31st among the Fortune 500

Companies in 2003. Operations in more than 80 countries world

wide Employee strength of more than 110,000

worldwide.

HISTORY

William Procter, a candle maker, and James Gamble,aSoap maker, immigrants from England and Ireland, respectively,who had settled earlier in Cincinnati, who met as they bothmarried sisters, Olivia and Elizabeth Norris formed thecompany initiallyAlexander Norris, their father-in law called a meeting in whichhe convinced his new so ns-in-law to become businesspartners.On October 31, 1837, as a result of the suggestion,Procter & Gamble was born.

History

In 1872, two Dutchmen, Jurgens and VanDer Bergh had ventured into the margarine business.In 1927, they decided to merge to form two companies, Margarine Unie NV, based in the Netherlands and Margarine Union Ltd, based in the UKWilliam Hesketh L ever founded L ever Brothers· in 1885 By 1887, introduced SUN LIGHT·, the world 1st packaged laundry soapL ever & Co. was making 450 tons of Sunlight soap a week.He expanded his business from UK to Australia, North America and other parts of EuropeIn 1890,L ever & Co became a limited company ²LEVER BROTHER LTD, by 1894, they went PU BLIC

MISSION

We will provide products and services of superior quality and value that improve the lives of the world's consumers.

As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders,

and the communities in which we live and work to prosper.

MISSION

Vitality is at the heart of everything we do. It's in our brands, our people and our

approach to business.

Goals

“TOUCHING LIVES IMPROVING LIVES”

provide branded productsand services of superior quality

value that improve the lives ofthe world’s consumers and As aresult, consumers will reward uswith leadership sales, profit andvalue

Goals

“TOUCHING HEARTS, CHANGING LIVES” add vitality to life meet everyday needs for nutrition,hygiene, and personal care withbrands that help people feel good,look good and get more out of life

Objective

Bring together transactional activities such as accounting and order management in a single organization to provide services to all p&g units at best in class.Remains on the cutting edge of the industry. To be a thought leader within each corporate function.To be the first consumer goods company in Pakistan.Be competitive with other high quality companies in order to help, attract, motivate and retain the talent needed to lead and grow P&G’s business.Strive to be best in all areas of strategic importance to the company.

Objective

Create and deliver an engaging and interactive online brand experience

Culture

• Integrity• Passion for Winning• Leadership• Trust• Ownership

Culture

• Clarity of goals• Trust • Leadership• Innovation & diversity• High aims & goal oriented approach

Shared principles

• respect for all individuals �• Inseparable interests • Strategically focused • Innovation- cornerstone of success• Externally focused• value personal mastery• Seek to be the best• Mutual interdependency

Competitor Comparison

Top Segment

Top Brand

CEO

Stock per share

Growth

Revenues

Revenue Growth

International

Business Segments

Employees

CG/Foods Consumer care Food Food

Dove Tide Mac & Cheese Kit Kat

A. Burgmans

$66.03

15.58%

42,942M

-11.93%

100+

A.G. Lafley

234000

$53.76

9.25%

28.2 BL

19%

42

5

110000

R. Deromedi

$30.70

P. Letmathe

8.2%

66.90

11.23%

$69 B$31,010 M

4.3%% -1.93%

150+ 86

5

10600

6

253000

3

Management

Board Of Directors

Management

• CEO USA

Management

Board Of Directors

Management

• Mr. Ehsan A Malik CEO Pakistan

Product Line

Product Line

Product of Focus

Product of Focus

Marketing strategy

Marketing strategy

direct contact Establish stalls in markets and mallsThey go schools and colleges free demos satisfy costumers on the spot policy that their commercials not executed right

before & after the commercial of competitors

--

Strengths•Largest producing company •Enjoying economies of scale•Good will in the market•Strong financial position•Market leader in tea industry with Lipton & Brook Bond•Capture 70 percent market share of ice cream industry•Highly sales brands in skin care i.e. Ponds and Fair & Lovely•Have Strong distribution channel in Pakistan•Wide product line in home wash

Weaknesses•High rates of skin care products•Ratio of success of new product is low•Huge inventory stocks of raw material and finished goods•Few new products are introduce in the market

Opportunities•Capturing food industry by acquiring Raffan Best Foods•Wide scope of confectionery business for LBPL•LBPL is looking to acquire Tapal tea

Threats•Facing tough competition in Ghee and Cooking Oil•Facing tough competition in ice cream.•LBPL is facing a very tough competition in personal care and detergents by P&G•There is very tough competition in detergents and soap markets•High inflation rate is increasing the cost of imported raw material day by day

Swot analysisStrengths•Social corporate image.•Strong financial position.•Concerned about the total quality management.•Direct contact with their costumers.•Good relation with suppliers.•Targets wives and children.•Enthusiastic sales team.•World wide research and manufacturing.•Well established and renowned distributors.•Has a larger share in the soap industry.

Weaknesses•Unwilling to serve the low income market.•Limited manufacturing facilities.

Opportunities•Promoting health care products.•Introducing newer product lines.•Increase in awareness.

Threats•Increasing market share of local Producers. •Threat of new entrants .•Increasing inflation in the country

Financial analysis

2000 2001 2002 200340,000

42,000

44,000

46,000

48,000

50,000

52,000

54,000Revenue

2000 2001 2002 20030

500

1000

1500

2000

2500

3000

3500Net Income

Financial Analysis (cont.)

0

0

0

0

0

0

0

0

2000 2001 2002 2003

Net ProfitMargin

210000

220000

230000

240000

250000

260000

270000

280000

2000 2001 2002 2003

Employees

Revenues: Product Segmentation

57%

43%

Foods Division

Home and Personal Care

Financial analysis

Net sales($billions)

Operating Cash Flow ($billions)

Net salesBy business segment By geographic region

P&G and Unilever

• Unilever entered the u.s market in late 19th cent. & Competed with the market leader P&G.

• P&G dominated the U.S household & personal care market while Unilever dominated the European market.

• Equal Dominance of P&G & Unilever in Asia.• Both Competed in every aspect of their

operations.

P&G and Unilever

• Fiercest Competition in Soaps (Body care & Fabric Care) & Shampoo (Hair care) segments.

• Both among the Heaviest users of CI.• Many instances since 1940 proving their

involvements in Corporate espionage.

Thank You

• Proctal & gambel • Unilever