Documentos de Académico
Documentos de Profesional
Documentos de Cultura
October 2012
Scope
All values expressed in this report are in US dollar terms, using a fixed exchange rate (2011). 2011 figures are based on part-year estimates. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. Oral Care US$39.7 bn
Microwaves Refrigeration Home 60,669 Appliances Laundry Large Cooking Home Laundry Confectionary 144,010 121,107 Appliances Appliances 132,745 121,107 US$185,477 mn
Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies opinions, reader discretion is advised.
Microwaves 60,669
Deodorants US$20.4 bn
Bath and Shower US$37 bn Baby Care US$13.6 bn Hair Care US$73.7 bn
Procter & Gamble is the global leader in beauty and personal care. Its key brands here include Olay, Gillette and Pantene. The company has however underperformed some of its rivals including Unilever and LOral, which have made significant gains in the Chinese market to Procter & Gambles detriment. Procter & Gamble may suffer from being too mid range for premium-focused China, while too premium for lesser developed emerging markets such as India.
Euromonitor International
PASSPORT 2
STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
STRATEGIC EVALUATION
Regional involvement:
Category involvement:
Global
Hair care, mens grooming, oral care, skin care
World BPC value share 11.5% (2011): World BPC value growth (2011): 5%
Euromonitor International
PASSPORT 4
STRATEGIC EVALUATION
Price increases help to drive net sales but hit volumes in 2012
Procter & Gambles beauty sales increased 2%, while grooming increased 1% between 2012 and 2011 financial years, mainly on the back of volume growth and price increases. Although a positive growth trend, sales growth was partly dampened by unfavourable geographic and product mix. This was more prominent in Q4, when these segments reported negative growth rates over Q4 2011.
Despite economic recession, the company has been initiating price increases on the back of value addition contributing to its overall annual sales growth in 2012. Although price increases enabled the company to overcome the impact of unfavourable geographic and product mix during the financial year, it was unable to do so in Q4, which could indicate the company needs to increase its focus on innovation to justify its premium pricing strategy and/or increase its coverage in the economy price range to boost volume sales growth.
Procter & Gambles objective to invest in the 20 most profitable innovations is a move in the right direction in light of its financial results.
Euromonitor International
PASSPORT 5
STRATEGIC EVALUATION
Leading brands
Global exposure
Mature market reliance The company continues to rely heavily on mature markets. The emerging markets will outperform mature markets over the forecast period putting Procter & Gamble in a vulnerable position.
THREATS
Market share erosion The company has seen its market share eroded in a number of key categories. Unilever in particular has been pulling ahead in bath and shower and deodorants. This trend will need to be reversed.
Procter & Gamble has Procter & Gamble has strong brands to its wide global exposure. name. The company Its products are sold in boasts 24 billion dollar 180 countries through brands. It also claims 50 wide-ranging distribution leadership brands that channels including mass contribute 90% to its merchandisers and overall sales and profit. grocery stores.
OPPORTUNITIES
Emerging markets
High-growth markets
Global/local competition Unilever remains a significant threat in the developing markets in some categories such as bath and shower. Local players will also compete fiercely with Procter & Gamble.
Emerging markets are Procter & Gamble is well positioned to take expected to produce strong growth in beauty advantage of growth in hair care and skin care and personal care. where it has a strong Procter & Gamble can position and which will benefit from the shift of lead growth in absolute consumption to the value terms. emerging markets.
Euromonitor International
PASSPORT 6
STRATEGIC EVALUATION
Instead of launching new brands or making acquisitions, the company focuses on extending existing brands into sub-ranges, eg Gillette Fusion as part of its billion dollar brand strategy. It has discontinued Max Factor in the US market. This rationalisation may save on costs but may limit the company from pursuing opportunities at both the premium and economy ends as the company crowds into the mid-range price segment.
Euromonitor International
PASSPORT 7
STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
COMPETITIVE POSITIONING
Beauty and Personal Care: Top Global Companies by Value 2006-2011 % company share 2011 11.5 9.7 7.8 3.8 3.2 3.1 2.9 2.8 2.5
2009
2006
2007
2008
2010
Company
Procter & Gamble Co, The L'Oral Groupe Unilever Group Colgate-Palmolive Co Avon Products Inc Beiersdorf AG Este Lauder Cos Inc Johnson & Johnson Inc Shiseido Co Ltd
1 1 1 1 1 1
2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 6 7 7 5 5 5 7 6 5 6 6 6 5 5 6 7 7 7 9 9 8 8 8 8 8 8 9 9 9 9 1 1 1 1 1 1 0 0 0 0 0 0
Kao Corp
2011
2.1
PASSPORT 9
COMPETITIVE POSITIONING
A: Procter & Gamble marginally underperforms the global market for beauty and personal care owing to its relative reliance on the mature markets, notably North America where its sales in 2008/2009 contract by almost 2%.
B: As the economy starts to show signs of recovery, Procter & Gambles sales begin to rebound. The company focuses on highmargin oral care, skin care and razors and blades to drive growth. Procter & Gamble is also driving strong sales growth in Latin America. .
C: Procter & Gambles global share of beauty and personal care declines in 2011 across most of its key categories. In mature markets, consumers trade down, while increasing competition in emerging markets means the company benefits less from growth here than some of its competitors.
Euromonitor International
PASSPORT 10
STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
MARKET ASSESSMENT
Opportunity Zone
Euromonitor International
PASSPORT 12
MARKET ASSESSMENT
Euromonitor International
PASSPORT 13
STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
Euromonitor International
PASSPORT 16
Positioning/ Emerging Market Exposure Premium-Mid/High in Latin America and Asia Pacific only Economy/High
Economy/High
Procter & Positioning/ Gamble Emerging Market Brand Exposure Premium-Mid/Low with exception of Gillette Latin America Pantene Premium-Mid/High Premium-Mid/High in Olay Asia Pacific only
Oral-B Premium-Mid/Low
Procter & Gambles closest competitor Unilever is clearly stronger at the economy end of the price spectrum, which gives it a broader reach into emerging markets. Among Unilevers top 10 brands, a number are economy hair care and bath and shower brands including Rexona, Lux and Sunsilk. Procter & Gamble meanwhile has continued to focus on driving consumers farther up the value chain with premium launches such as Pantene Nature Fusion in 2011.
Euromonitor International BEAUTY AND PERSONAL CARE: PROCTER & GAMBLE PASSPORT 17
Euromonitor International
PASSPORT 18
Euromonitor International
PASSPORT 19
Euromonitor International
PASSPORT 20
Euromonitor International
PASSPORT 21
Euromonitor International
PASSPORT 22
Euromonitor International
PASSPORT 23
Euromonitor International
PASSPORT 25
Euromonitor International
PASSPORT 26
Euromonitor International
PASSPORT 28
Euromonitor International
PASSPORT 29
STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
BRAND STRATEGY
Euromonitor International
PASSPORT 31
BRAND STRATEGY
Procter & Gamble aims for more premium image for Pantene
Pantene is Procter & Gambles leading hair care brand and the worlds number two hair care label. It is one of the companys billion dollar brands, with sales of US$5.2 billion in 2011. Pantene has been something of a problematic brand for Procter & Gamble of late, thanks in part to an overweight portfolio and confusion over its positioning. Moves to push the mass brand upmarket have been undermined by significant price cuts in core markets. However, Procter & Gamble has relaunched the brand with improved formulation and packaging, which drove growth in shampoos. The Nature Fusion range has been rolled out in 2011 and 2012 to new markets including Thailand. The brand relies heavily on celebrity brand ambassadors including most recently US actress Zooey Deschanel. In keeping with Procter & Gambles global aspirations however it has enlisted Indian personalities such as Padma Lakshmi. In 2011, Procter & Gamble switched to plant-based PET for its Pantene Nature Fusion bottles to maintain a consistent natural image for the brand.
Euromonitor International
PASSPORT 32
BRAND STRATEGY
Euromonitor International
PASSPORT 33
STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS
OPERATIONS
OPERATIONS
Western Europe: Turkey Eastern Europe: Russia, Czech Republic, Romania Asia Pacific: China, India, Philippines, Vietnam Middle East & Africa: Egypt, Lebanon, Morocco, Saudi Arabia Latin America: Argentina, Colombia, Mexico, Brazil, Guatemala, Peru, Venezuela
Euromonitor International
PASSPORT 36
STRATEGIC EVALUATION
COMPETITIVE POSITIONING CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS
RECOMMENDATIONS
RECOMMENDATIONS
Procter & Gamble is at risk of allowing L'Oral to topple its skin care brand Olay from the leading position in skin care in China. This is a strategic market as it will be the leading market to drive growth in beauty and personal care. In addition, Shiseido is also increasing the pressure. Both L'Oral and Shiseido are developing a presence across different distribution channels and Procter & Gamble could consider doing the same.
Products to match affordability in emerging markets In order to succeed in emerging markets, Procter & Gamble will need to adopt successful strategies employed by its competitors including Unilever. Procter & Gambles current focus may be too premium to gain a broad presence in markets such as India. The company has already begun to offer sachets to keep prices down in this market. However, further work will be required to build a distribution network. Procter & Gamble remains overly reliant on conventional retailers and has not gained sufficient penetration in rural areas.
Euromonitor International
Colour cosmetics is one of its smaller operations, but needs immense resources as competition is driven by companies with a dedicated focus. Investing resources in colour cosmetics can divert resources from its larger categories where it holds industry-leading positions. Alternatively it will need to consider expanding the Cover Girl and/or Max Factor brand to the emerging markets, eg India. However this will require considerable financial resources and commitment.
Expand into new categories in emerging markets Procter & Gamble has scope to expand into new product categories. While present in hair care it is absent from colourants and conditioners in India. It should also launch its Gillette Fusion range more fully in Brazil and attempt to build a market for mens skin care. Its Gillette brand has the potential to overcome male reluctance to use these products.
PASSPORT 38
Experience more...
This research from Euromonitor International is part of a global strategic intelligence system which offers a complete picture of the commercial environment. Also available from Euromonitor International: Global Briefings Timely, relevant insight published every month on the state of the market , emerging trends and pressing industry issues. Interactive Statistical Database Complete market analysis at a levels of detail beyond any other source. Market sizes, market shares, distribution channels and forecasts. Strategy Briefings Executive debate on the global trends changing the consumer markets of the future. Global Company Profiles The competitive positioning and strategic direction of leading companies including uniquely sector-specific sales and share data. Country Market Insight Reports The key drivers influencing the industry in each country; comprehensive coverage of supply-side and demand trends and how they shape the future outlook.
Euromonitor International BEAUTY AND PERSONAL CARE: PROCTER & GAMBLE
Learn More To find out more about Euromonitor International's complete range of business intelligence on industries, countries and consumers please visit www.euromonitor.com or contact your local Euromonitor International office: London +44 (0)20 7251 8024 Chicago +1 312 922 1115 Singapore +65 6429 0590 Shanghai +86 21 6372 6288 Vilnius +370 5 243 1577 Dubai +971 4 372 4363 Cape Town +27 21 552 0037 Santiago +56 2 915 7200 Sydney +61 2 9275 8869 Tokyo +81 3 5403 4790 Bangalore +91 80 49040500
PASSPORT 39