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Products: The Procter & Gamble Company (PG)

Fabric Care & Home Care(Fabric Care & Home Care)
Baby & Family Care(Baby & Family Care)
Beauty(Beauty)
Health Care(Health Care)
Grooming(Grooming)

Fabric Care & Home Care

What is being offered?

This segment is comprised of a variety of fabric care products, including laundry detergents, additives andfabric enhancers as well as home care products, including dish washing liquids and detergents, surface cleaners and air fresheners.

In fabric care, P&G generally occupies the number one or number two market share positions in the markets in which it competes, with more than 25% share in the global fabric care market.

Laundry detergents and additives

  • Tide & Gain: These are the leading laundry detergent brands in the U.S., each with over a billion dollar in annual sales.
  • Ariel: A leading international detergent brand in Europe and other regions, with over a billion dollar in annual sales.
  • Downy: A fabric softener brand sold in the U.S., with over a billion dollar in annual sales.
  • Other fabric care products: These include the brands: Bounce, Bold, Cheer, Era and Dreft Laundry.

Dish washing detergents & household cleaning products

  • Dawn & Cascade: Leading dish washing brands in North America. Dawn & Cascade each have over a billion and over half-a-billion dollar in annual sales, respectively.
  • Mr. Clean & Swiffer: Leading household cleaning brands each with over half- a-billion dollar in annual sales.
  • Febreze: This is a fabric and air freshener brand with over half-a-billion dollar in sales.
  • Other products include dish washing detergents under the Ariel brand.

Who is buying?

Primary Customers: Supermarkets (Walmart is the biggest customer), club membership stores, grocery stores, neighborhood stores and laundry services.

Primary Consumers: Households in the U.S. and international markets.

What buyers care about:

  • Cleansing properties
  • After effects on machine, hands or skin
  • Safe to use, low toxicity of chemicals used in cleaners
  • Fragrance
  • Price
  • Brand recognition

Competitors:

Competitors to Tide, Ariel, Downy and others

  • Unilever (Wisk, All, Surf, Radiant)
  • Oxiclean
  • Phoenix Brands (Fab, Dynamo, Ajax)
  • Private labels and domestic brands in international markets

Competitors to P&G's Household cleaners

  • Clorox (Clorox, Greenworks)
  • Reckitt Benckiser (Lysol, Wizard, Resolve, Mr Sheen, Harpic)
  • Fuller Brush Company

Top selling points:

  • Leading market share: Tide has a near monopoly in the U.S. laundry care market. P&G has a leading market share of close to 25% of the global laundry care market, providing it significant advantage in terms of brand recognition, popularity and value sales.
  • Strong marketing and advertising capabilities: P&G has been spending heavily on advertising and promotion of its brands, supported by its huge size. The most recent example includes a $60 million marketing campaign for the promotion of Tide and Downy brands in laundry care and its Dawn and Cascade brands in household cleaning.
  • Product innovation: P&G has sustained its leading position in the global laundry care and household cleaning market by constantly introducing advanced and innovative products as a result of its strong R&D program.
  • Latest examples of innovation in laundry detergents by P&G include Ariel Actilift and Ariel / Dash Stain remover.
  • Recent examples of innovation in laundry detergents by P&G include Dawn Hand Renewal with Olay Beauty.
  • P&G's Swiffer brand, with its innovative products such as CarpetFlick, WetJet, created a new quick cleaning category of which it now has a 75% market share.
  • Strong presence in international markets: In rapidly growing emerging markets, P&G's laundry detergents are leveraging existing retail channels of P&G's other product segments. This enables it to find an easy route to the end consumer as its products are found to be more conspicuous and accessible (easily available shelf-space to P&G by virtue of retailer relations and strong brand equity).

Baby & Family Care

What is being offered?

This division represents the following baby care brands manufactured and marketed by Procter & Gamble.

P&G's baby diapers, wipes and training pants

  • Pampers: A leading brand with over a billion dollars in annual sales. P&G sells baby diapers, baby wipes and training pants under this brand.
  • Luvs: A low priced brand with baby diapers and baby diapers marketed under its name.

Feminine Care

  • Always: A leading brand with over a billion dollars in annual sales. P&G has female hygiene products such as sanitary napkins and pads under this brand.
  • Other Female Hygiene Products: Other female hygiene brands include Naturella and Tampax.

P&G's paper towels and toilet tissue

  • Bounty: Leading paper towel brand generating over a billion dollars in annual sales.
  • Charmin: Popular toilet tissue brand generating over a billion dollars in annual sales.

Who is buying?

Primary Customers: Supermarkets (Wal-mart is the biggest customer), drug stores, grocery shops & neighborhood stores.

Primary Consumers: Households in the U.S. and international markets.

What buyers care about:

  • Absorbent properties of diapers, sanitary pads and tissue paper
  • Texture or material softness
  • Longevity
  • Comfort
  • Price

Competitors:

Competitors to Pampers

  • Kimberley-Clark (Huggies)
  • SCA (Libero in Europe)
  • Seventh Generation

Competitors to Always and Tampax

  • Stayfree
  • Kimberley-Clark(Kotex)
  • Seventh Generation
  • Maxim

Competitors to Bounty & Charmin

  • Georgia Pacific Corp (Brawny, Sparkle, Angel Soft, Quilted Northern)
  • Kleenex & Scott

Top selling points:

Top selling points of Pampers

  • Leading market share: P&G has a more than 20% market share of the global baby diapers market.
  • Product innovation: P&G's R&D capabilities have led to continuous improvement in its existing products and the introduction of new products such as Pampers Swaddlers, Cruiser with Dry Max, Pampers Underjams. These innovations have helped it expand into the premium segment and obtain higher prices for its products.
  • Expansion of Pampers brand into value segment: P&G introduced Pampers Simply Dry priced 15% lower than the usual Pampers Baby Dry and has been expanding Pampers Simply Dry into other segments, leading to an increase in its market share in mature markets.

Top selling points of Always and Tampax

  • Leading market share: P&G has a 28% market share of the global feminine hygiene care market.
  • New product launch to support brand expansion and sustain popularity: P&G has constantly improved its products through innovation, which has helped its feminine hygiene care products maintain market leadership in mature markets and gain market share in developing markets. The latest example is P&G's economy product, Naturella which has been specially developed for low income consumers in North America.
  • Strong presence in international markets: P&G's products are sold in over 180 countries giving it a strong established distribution network through mass merchandisers, grocery stores, drug stores and neighborhood stores in emerging markets. By leveraging existing retail channels, P&G products are easily available to end consumers as they are more conspicuous (easily available shelf-space to P&G by virtue of retailer relations and strong brand equity).

Top selling points of Charmin & Bounty

  • Large market share: Bounty paper towels have a 45% market share of paper towels and Charmin has a 25% share of the toilet tissue market in North America. Having a leading market share position offers P&G economies of scale to reduce prices for bulk buyers.
  • Strong marketing and advertising capabilities: P&G's huge size and marketing synergies among existing brands offer capabilities to promote brand awareness by sponsoring TV shows.
  • Product innovation through R&D: P&G has improved its paper towels by constantly upgrading paper quality. Extensive research & development resources for continuous innovation and product enhancement are supported by P&G's accessibility to capital resources and several cash-generating businesses.

Beauty

What is being offered?

This division represents the skin care, makeup, hair care and deodorant brands manufactured and marketed by Procter & Gamble.

Skin Care & Makeup

  • Olay: A leading facial skin care brand with over billion dollar in annual sales. It has several products under facial cleansing, facial moisturizing, sunless tanners, and specialty treatments.
  • SK-II: A skin care brand with over half-a-billion dollar in annual sales. It has similar product types as Olay.
  • Body soaps and body wash products marketed under the brands: Safeguard, Old Spice, Ivory and Olay.

Hair Care

  • Head & Shoulders: A leading brand with over a billion dollar in annual sales. P&G has several variants of shampoo and hair conditioner products under this brand.
  • Pantene: Another popular shampoo and hair conditioner brand with over a billion dollar in annual sales.
  • Other hair care products such as Rejoice, Herbal Essences and Aussie.

Deodorants

  • Deodorants: These are sold under the brands: Secret, Old Spice and Gillette (deodorants are part of beauty and not grooming)

Who is buying?

Primary Customers: Supermarkets (Walmart biggest customer), Club membership stores, grocery stores, neighborhood stores, salon shops, make-up artists.

Primary Consumers: Men and Women in the U.S. and international markets.

What buyers care about:

Skin Care & Makeup

  • Regenerative effects on skin.
  • Wide variety of cosmetic colors

Hair Care, Deodorants

  • After effects on hair of shampoos & conditioners
  • Brand recognition
  • Wider variety in products
  • Price

Competitors:

Competitors to P&G's skin care & makeup products

  • L'Oreal
  • Revlon
  • Neutrogena

Competitors to P&G's hair care products

  • Unilever (Dove, Sunsilk)
  • L'Oreal (Everpure, StudioLine)
  • Neutrogena
  • Avalon

Competitors to P&G's deodorants

  • Coty (Calvin Kliene, Chloe)
  • L'Oreal
  • Adidas
  • Swiss Army
  • Mont Blanc

Top selling points:

Skin Care & Makeup

  • Strong brand equity: Olay is a leading skin care and cosmetic brands in the U.S. that is very popular among women consumers. These brands are increasingly gaining market share in international markets.
  • Strong marketing and advertising capabilities: Olay has grown sales substantially on the back of solid direct to consumer advertising for several years. P&G's huge business size and marketing synergies among existing brands offer capabilities to promote brand awareness by hiring leading celebrities and obtaining sponsorship of popular television events.
  • Product innovation through R&D: Olay recently launched Olay Pro-X. New Olay products, Regenerist and Definity are already gaining market share. Extensive research & development resources for continuous innovation and product enhancement are supported by P&G's accessibility to capital resources and several cash-generating businesses.

Hair Care

  • Brand popularity: Head & Shoulders and Pantene are widely popular shampoo brands.
  • Product innovation through R&D: Hair care brands have seen increasing sales on the back of continuous innovation in the form of improved package design and introduction of new products such as Nice n Easy Perfect 10 hair colorant.
  • Innovative marketing efforts: P&G's Head & Shoulders has more than $2 billion dollar in sales, driven primarily by marketing innovations such as "Go-to-Market". In this initiative the P&G marketing team performed millions of scrap evaluations at or near retail stores to recommend the appropriate Head & Shoulders product.
  • Strong presence in international markets: P&G's products are sold in over 180 countries, giving it a strong established distribution network through mass merchandisers, grocery stores, drug stores and neighborhood stores in emerging markets. Leveraging existing retail channels, P&G products find an easy route to reach the end consumer as these products are more conspicuous (easily available shelf-space to P&G by virtue of retailer relations and strong brand equity).

Deodorants

  • Brand recognition: P&G's leading brands have a significant brand equity built upon the huge popularity of leading labels like Old Spice, Gillette and Secret.
  • High growth rates in Emerging Market: There has been a growing demand for deodorants from emerging markets like Brazil, India and China which have high levels of perspiration in summers. This has enabled P&G to become a key player in these markets with its leading deodorant brands.
  • Synergies from P&G's established retail channels: P&G's products are sold in over 180 countries, giving it a strong established distribution network through mass merchandisers, grocery stores, drug stores and neighborhood stores in emerging markets. This, along with its huge size offer significant leverage to P&G to acquire licenses for leading fashion labels.

Health Care

What is being offered?

This division represents following over the counter (OTC) pharmaceuticals brands, feminine care and oral care products manufactured and marketed by Procter & Gamble.

OTC DRUGS

  • Prilosec OTC: A leading nonprescription drug for the treatment of heartburn with over half-a-billion dollar in annual sales.
  • Vicks: A leading non prescription drug for the treatment of respiratory ailments associated with flu. It has over half-a-billion dollar in annual sales.
  • Other OTC drugs: Other non-prescription drugs produced and marketed by P&G include Pepto Bismol, Metamucil, and Align.

ORAL CARE

  • Crest: This is a toothpaste, mouth wash and other oral hygiene products brand, generating more than a billion dollars in annual sales.
  • Oral-B: Oral care brand sells more than a billion dollar worth of manual and electric razors annually.

Who is buying?

OTC DRUGS

Primary Customers: Drug & Pharmacy Stores

Primary Consumers: Families in North American & International markets.

ORAL CARE

Primary Customers: Supermarkets (Walmart biggest customer), grocery stores and neighborhood stores.

Primary Consumers: Men & Women in the U.S. and International markets.

What buyers care about:

OTC DRUGS

  • Treatment performance
  • Minimal side effects
  • Product safety
  • Price

ORAL CARE

  • Brand recall
  • Cleansing properties
  • Taste or sensation upon use
  • Price

Competitors:

OTC DRUGS

  • Pfizer(Zantac)
  • Pepcid
  • Johnson & Johnson( Tylenol)
  • Robitussen
  • Other generic OTC drugs

ORAL CARE

  • Colgate
  • Church & Dwight Co (Closeup, Pepsodent, Mentadent)
  • Philips SonicCare

Top selling points:

OTC DRUGS

  • Strong marketing and advertising capabilities: Leading OTC drugs of P&G, Prilosec OTC and Vicks, are widely popular among consumers on account of the large marketing and advertising campaigns. Prilosec OTC continues to enjoy massive promotion through online advertisements and NASCAR events.
  • Strong presence in International markets: P&G's Vicks OTC medicine has a strong presence in the rapidly growing emerging markets, providing it significant leverage to exploit growth in OTC drug demand.
  • Partnership with Teva: In July 2011, P&G entered into a partnership with Teva Pharmaceuticals in consumer health care to bring together both companies' existing OTC medicine businesses and complementary capabilities. The partnership is expected to have over $1 billion in annual sales, part of which will add to P&G's revenues.

ORAL CARE

  • Brand equity: Crest was the first toothpaste brand to be endorsed by the American Dental Association (ADA), thus creating a new category of therapeutic toothpastes. Even after several years of its launch, Crest continues to enjoy strong brand recognition among American consumers as a toothpaste with proven therapeutic benefits.
  • Strong marketing and advertising capabilities: Oral-B and Crest have grown sales substantially on the back of solid direct-to-consumer advertising for several years. P&G's huge size and marketing synergies among existing brands offer capabilities to promote brand awareness by hiring leading celebrities, obtaining sponsorship of popular television events etc.
  • Product innovation through R&D: P&G's innovations in oral care such as new products Crest Clinical Line, 3D white, Crest Pro-Health Night Paste & Rinse, Oral-B Cross-Action Pro-Health Brush have sustained its market share position in global oral care.
  • Leveraging existing distribution channels globally: P&G has been gaining market share in emerging markets by introducing new products in order to expand its oral care brands such as the introduction of Oral-B toothpaste in Brazil through the pharmacy channel.

Grooming

What is being offered?

This division represents following grooming brands manufactured and marketed by Procter & Gamble-

  • Gillette: A leading brand with several billion dollars in annual sales. It has a staggering 60% share of the manual razor and blades market. It also markets pre-shave and post shave products such as shaving gel, foam, and after shave lotions.
  • Braun: A leading small electrical appliances brand with over a billion dollar in annual sales. It markets electric shavers, power toothbrushes, epilators, and hair styling electrical devices.
  • Other Grooming Products: Other shaving products, male-specific skin care products marketed under brands such as Old Spice.

Who is buying?

Primary Customers: Supermarkets (Walmart is the biggest customer), club membership stores, grocery stores, neighborhood stores, and salon shops.

Primary Consumers: Men and women across the world.

What buyers care about:

  • Smooth operation
  • Product safety
  • Broader choice
  • Brand recognition
  • Price

Competitors:

  • Shick
  • Norelco
  • Neutrogena

Top selling points:

  • Strong brand equity: Mach-3, Fusion are leading razor and blades brands with a strong presence in developed markets. These are increasingly gaining market share in international markets.
  • Strong marketing and advertising capabilities: Gillette has built a strong brand recall through extensive marketing. Gillette was the leading sponsor of the Football World Cup from 1960-2006 and, in 2004, it initiated a new marketing campaign called "Young Guns", featuring top NASCAR drivers. P&G's huge size and marketing synergies among existing brands offer capabilities to promote brand awareness by hiring leading celebrities, obtaining sponsorship of popular television events etc.
  • Product innovation through R&D: Gillette recently launched Venus Embrace, the first 5 blade disposable razor for women. In 2005, Fusion with six blades was launched and became the fastest P&G brand to attain a billion dollar in sales. Extensive research & development resources for continuous innovation and product enhancement are supported by P&G's accessibility to capital resources and several cash-generating businesses.
  • Strong presence in international markets: Gillette has a staggering 60% global market share of razors and blades. P&G's products are sold in over 180 countries giving it a strong established distribution network through mass merchandisers, grocery stores, drug stores and neighborhood stores in emerging markets. Leveraging existing retail channels, P&G products find an easy route to reach the end consumer as they are more conspicuous (easily available shelf-space to P&G by virtue of retailer relations and strong brand equity).

Chart: Fabric Care & Home Care Revenue

Chart: Baby & Family Care Revenue

Chart: Beauty Revenue

Chart: Health Care Revenue

Chart: Grooming Revenue