1 / 18

Fundamentals

Fundamentals. Bender Trust Project Little Investment Bankers of Rutgers Rutgers University Josselinne Rodriguez, Michael Kornblum, & Dor Alaluf Dec. 2011. Procter & Gamble Company Overview.

lysa
Download Presentation

Fundamentals

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. Fundamentals Bender Trust Project Little Investment Bankers of Rutgers Rutgers University Josselinne Rodriguez, Michael Kornblum, & Dor Alaluf Dec. 2011

  2. Procter & GambleCompany Overview • A Fortune 500 American multinational corporation manufactures of a wide range of consumer goods • Headquartered in downtown Cincinnati, Ohio • Serves approximately 4.4 billion consumers around the world with strong portfolio of trusted, quality, leading brands. • Known globally for its household and personal goods in the following categories: • Beauty products (e.g. Gillette, Old Spice, CoverGirl) • Health & Well-Being (e.g. Crest, Oral-B) • Household Care (e.g. Ace, Tide, Duracell) • Continuously expands its products offering through in-house development and acquisitions

  3. Procter & GambleCompany Overview

  4. Value Trends

  5. Symbol (NYSE): PG • Current Price (11/25/2011): $61.00 • Volume (11/25/2011): 4,734,711 • 52 Week Range: 57.56 - 67.72 • S&P 500: 1,257.81 Procter & GambleStock Information

  6. Procter & GambleStock Behavior Chart

  7. Procter & GamblePorter’s 5 Forces Analysis

  8. Procter & GambleBuyers • Mass merchandisers • Grocery stores • Membership club stores • Drug stores • Neighborhood stores Average consumer Problem: High dependency on mass consumers

  9. Procter & GambleSuppliers • Suppliers: 6 of the top 80,000 are: • Havpak Inc. • Hayco Ltd. • Nelson Packaging Company Inc. • Nippon Shokubai Company Ltd. • Novozymes • PegasNonwovens • Strong codependent supplier relationship

  10. Barriers to EntryEntrance • Brand-building • Large and diverse product range • Consumer confidence and loyalty in brand • Understanding of consumer needs as a point for innovation • more production  more consumption  more profits

  11. Threats to Market Share • Niche market firms Example: Mac vs. Cover girl • Lack of presence in emerging markets (i.e. BRIC nations) • Due to economic downturns, consumer spending has decreased globally.

  12. Procter & GambleSubstitutes • Large number of substitutes • Unilever (UL) • L’Oreal • Kimberly-Clarke • Clorox Company (CLX) However • Continuing product differentiation • Strong research & development division • Go-to market capabilities always looking to expand & develop with consumer needs as a guide

  13. Leading Household ProductsRanked by sales

  14. Procter & GambleIndustry Competition

  15. Procter & GambleIndustry Competition Significant competition in 3 Industries where P&G offers products and services in: • Advantages: • Strong consumer presence and confidence • Strong relations with suppliers • i.e. Target, Walmart • Diverse product range in all 3 sectors • Large market share • Disadvantages: • Needs international expansion • No strong online presence • Loss of local jobs, outsourcing manufacturing and back-office operations work overseas  cheap labor

  16. Stock Recommendation: BUY

More Related