comparison between procter and gamble and unilever
TRANSCRIPT
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