1 / 0

Procter and Gamble

November 10, 2009 By: Ron Sivick. Procter and Gamble . Current price: $61.94 52 week range: $43.93 - 66.82 Market cap: 180B Large Core, Classic Growth Sector: Consumer Goods Industry: Personal Products Rating: Beta: 0.55. Company Overview . Founded in 1837

eugene
Download Presentation

Procter and Gamble

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. November 10, 2009 By: Ron Sivick

    Procter and Gamble

  2. Current price: $61.94 52 week range: $43.93 - 66.82 Market cap: 180B Large Core, Classic Growth Sector: Consumer Goods Industry: Personal Products Rating: Beta: 0.55
  3. Company Overview Founded in 1837 Headquarters: Cincinnati, Ohio engages in the manufacture and sale of consumer goods worldwide Offers products to mass merchandisers, grocery stores, drug stores, and membership club stores Operates in three global business units Beauty Health and Well-Being Household Care
  4. Company Overview Cont’d Largest consumer product manufacturer Offers multiple products in a category and often more than one brand, in order to reach the most possible shoppers Continually improving products to increase brand loyalty Has 23 brands which generate more than $1 billion in sales annually and another 20 brands that generate more than $500 million in sale Focuses marketing and product development on its beauty-care and health-care segments as well as on developing markets
  5. Overview cont’d Continuing to expand to countries where they have no presence Has doubled the sales it derives from developing markets, acquired and integrated Wella and Gillette, and divested a number of lower-margin brands Beat EPS estimates for fourth quarter and year
  6. Categories of Products Shaving Skin Care Small Appliances Snacks Paper Products Oral Care Laundry & Fabric Care Cosmetics Dish Washing Feminine Care Body Wash & Soap Air Fresheners Antiperspirants & Deodorants Baby and Child Care Hair Care Hair Color Health Care Pet Nutrition Prescription Drugs Prestige Fragrances Batteries Household Cleaners
  7. Global Presence
  8. Net Sales Change
  9. Net Income 2000-2009
  10. Sales by Business Segments
  11. Cross Sectional Analysis
  12. SWOT Analysis Strengths Strong focus on Research and development Leading market position Diversified product portfolio Strong brand portfolio
  13. SWOT Analysis Weaknesses Increasing instances of product Dependent on Wal-Mart Stores for majority of its revenue
  14. SWOT Analysis Opportunities Expansion in developing markets Future growth plans Growing Indian FMCG market
  15. SWOT Analysis Threats Regulatory Environment Global Economic Conditions Counterfeit goods
  16. Valuation Morningstar Fair Value $77.00 Consider buying $61.60 My Estimate $80.36
  17. Recommendation Investment rationale Focus on disciplined cash and cost management along with investing in capacity, innovation and consumer value to sustain market share during the recession Continuing to utilize their billion-dollar brands in growing markets Have turned their focus to the business segments that will derive the most profit growth Extended the availability and affordability of P&G brands to more low-income consumers
  18. Recommendation Have chosen to focus on five core strengths that are required to win in the consumer products industry: Consumer understanding Interact with more than five million consumers each year in nearly 60 countries Brand-building Built the strongest portfolio of brands in the industry with 23 billion- dollar brands and 20 half-billion-dollar brands Innovation Leader in the industry Go-to-market capability Scale Knowledge sharing, common systems and processes, and best practices as it is by size and scope
More Related