Procter & Gamble vs. Gillette
Proctor & Gamble
1. What is Proctor & Gamble’s corporate strategy? Do the company’s businesses seem to be related or unrelated? Are Gillette’s businesses closely related to P&G’s businesses? How will a merger with Gillette provide a 1 + 1 = 3 effect for P&G?
Proctor and Gamble recently completed large restructuring, put new management in place, and cut capital spending needs. Since then they are now focused on increasing top and bottom line results after shifting business mix toward higher margin, less capital-intensive health and beauty care sectors and also gearing towards developing markets and lower-income consumers.
Most of the company’s products are closely related in the sense that they are household products such as Always, Bounty, Braun, Charmin, Gain and Tide. However, there are a few product lines that are completely unrelated like Actonel prescription medication, and newly acquired Duracell batteries and Iams Cat and dog food. They are all related by the fact that 23 brands of P&G and Gillette together make up more than a billion dollars in net annual sales and another 18 have sales between $500 million and $1 billion. Some of their top selling products include:
• Always is a brand of feminine hygiene products, including maxi pads, pantiliners (sometimes called Alldays), and feminine wipes, produced by Procter & Gamble.--See also Brand homepage; related trademarks: Ultra Thins; Flexi-Wing; Maxis; Alldays; CleanWeave.
• Ariel is a brand of washing powder/liquid, available in numerous forms and scents.
• Actonel A brand of Osteoporosis drug Risedronate.
• Bounty is a brand of paper towel sold in the United States, Canada. P&G sold the brand in the British Isles.
• Braun is a small-appliances manufacturer specializing in electric razors, coffeemakers, toasters, and blenders.
• Charmin is a brand of bathroom tissue and moist towelettes.
• Crest is a brand of toothpaste.
• Dawn is a brand of dishwashing detergent.
• Downy/Lenor is a
1. What is Proctor & Gamble’s corporate strategy? Do the company’s businesses seem to be related or unrelated? Are Gillette’s businesses closely related to P&G’s businesses? How will a merger with Gillette provide a 1 + 1 = 3 effect for P&G?
Proctor and Gamble recently completed large restructuring, put new management in place, and cut capital spending needs. Since then they are now focused on increasing top and bottom line results after shifting business mix toward higher margin, less capital-intensive health and beauty care sectors and also gearing towards developing markets and lower-income consumers.
Most of the company’s products are closely related in the sense that they are household products such as Always, Bounty, Braun, Charmin, Gain and Tide. However, there are a few product lines that are completely unrelated like Actonel prescription medication, and newly acquired Duracell batteries and Iams Cat and dog food. They are all related by the fact that 23 brands of P&G and Gillette together make up more than a billion dollars in net annual sales and another 18 have sales between $500 million and $1 billion. Some of their top selling products include:
• Always is a brand of feminine hygiene products, including maxi pads, pantiliners (sometimes called Alldays), and feminine wipes, produced by Procter & Gamble.--See also Brand homepage; related trademarks: Ultra Thins; Flexi-Wing; Maxis; Alldays; CleanWeave.
• Ariel is a brand of washing powder/liquid, available in numerous forms and scents.
• Actonel A brand of Osteoporosis drug Risedronate.
• Bounty is a brand of paper towel sold in the United States, Canada. P&G sold the brand in the British Isles.
• Braun is a small-appliances manufacturer specializing in electric razors, coffeemakers, toasters, and blenders.
• Charmin is a brand of bathroom tissue and moist towelettes.
• Crest is a brand of toothpaste.
• Dawn is a brand of dishwashing detergent.
• Downy/Lenor is a
Cited: "Creating Corporate Standards." Consumer Goods Technology. Mar 2008. 24 Mar 2008 <http://www.consumergoods.com/ME2/dirmod.asp?sid=&nm=&type=Publishing&mod=Publications%3A%3AArticle&mid=&tier=4&id=72D8B71A2F7F49EFAF09E6BE35D77432>. "Gillette Co. SEC filings." EDGAR Online. 06 Nov 20002. 24 Mar 2008 <http://sec.edgar-online.com/2002/11/06/0000041499-02-000018/Section6.asp>. Hannon, David. "P&G-Gillette: Blueprint for a merger." Purchasing.com. 17 Jan 2008. 24 Mar 2008 <http://www.purchasing.com/article/CA6518715.html>. Herron, Romi. "News & Information." Kellogg School of Management. 21 Sep 2006. 24 Mar 2008 <http://www.kellogg.northwestern.edu/news/whatsnew/ProcterGambleCEOLafley.htm>. "Procter & Gamble Co. (PG)." Yahoo Finance. 24 Mar 2008. 24 Mar 2008 <http://finance.yahoo.com/q?s=PG>. "Proctor & Gamble." Wikipedia. 24 Mar 2008. 24 Mar 2008 <http://en.wikipedia.org/wiki/Procter_&_Gamble>. Wines, Leslie. "Colgate-Palmolive Vs. Procter & Gamble ." Forbes.com Monday Match-up. 13 Oct 2003. Forbes. 24 Mar 2008 <http://www.forbes.com/2003/10/13/cx_lw_1013matchup.html>.