Business Analysis 226 Business Analysis ReportLaundry Detergent Industry
[BUSINESS ANALYSIS REPORT                                                     LAUNDRY DETERGENT                           ...
[BUSINESS ANALYSIS REPORT                                                     LAUNDRY DETERGENT                           ...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT              LAUNDRY DETERGENT                                                   INDUSTRY] Busin...
[BUSINESS ANALYSIS REPORT                       LAUNDRY DETERGENT                                                         ...
[BUSINESS ANALYSIS REPORT                      LAUNDRY DETERGENT                                                          ...
[BUSINESS ANALYSIS REPORT                      LAUNDRY DETERGENT                                                          ...
[BUSINESS ANALYSIS REPORT                   LAUNDRY DETERGENT                                                        INDUS...
[BUSINESS ANALYSIS REPORT                   LAUNDRY DETERGENT                                                        INDUS...
[BUSINESS ANALYSIS REPORT                   LAUNDRY DETERGENT                                                        INDUS...
[BUSINESS ANALYSIS REPORT                         LAUNDRY DETERGENT                                                       ...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                         INDUS...
[BUSINESS ANALYSIS REPORT                LAUNDRY DETERGENT                                                     INDUSTRY] B...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                LAUNDRY DETERGENT                                                     INDUSTRY] B...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                LAUNDRY DETERGENT                                                     INDUSTRY] B...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                   LAUNDRY DETERGENT                                                        INDUS...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                   LAUNDRY DETERGENT                                                        INDUS...
[BUSINESS ANALYSIS REPORT                       LAUNDRY DETERGENT                                                         ...
[BUSINESS ANALYSIS REPORT                LAUNDRY DETERGENT                                                     INDUSTRY] B...
[BUSINESS ANALYSIS REPORT                            LAUNDRY DETERGENT                                                    ...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                  LAUNDRY DETERGENT                                                       INDUSTR...
[BUSINESS ANALYSIS REPORT                 LAUNDRY DETERGENT                                                      INDUSTRY]...
[BUSINESS ANALYSIS REPORT                    LAUNDRY DETERGENT                                                         IND...
Business Analysis on Laundry Detergent Companies
Business Analysis on Laundry Detergent Companies
Business Analysis on Laundry Detergent Companies
Business Analysis on Laundry Detergent Companies
Business Analysis on Laundry Detergent Companies
Business Analysis on Laundry Detergent Companies
Business Analysis on Laundry Detergent Companies
Business Analysis on Laundry Detergent Companies
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Business Analysis on Laundry Detergent Companies

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  • please send it at gladyssantos_07@yahoo.com
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  • good day sir. I want to have a copy of this report. thank you.
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  • respected sir can you send it to me. maryshms@yahoo.com
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  • nice report
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  • Dear Sir,
    I want to download this report . Please advise
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    Rouzbeh Famili
    famili.rouzbeh@topsalesco.com
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  1. 1. Business Analysis 226 Business Analysis ReportLaundry Detergent Industry
  2. 2. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Table of ContentsEXECUTIVE SUMMARY ................................................................................................................................................ 4INTRODUCTION .......................................................................................................................................................... 5COMPETITIVE POSITIONING ANALYSIS........................................................................................................................ 6 MARKET SHARE AND PIE CHART ............................................................................................................................................. 6 PERCEPTUAL MAP OF COMPETITOR BRANDS BY PRICE TO QUALITY ................................................................................................ 8 PERCEPTUAL MAP OF COMPETITOR BRANDS BY TARGET MARKETS ................................................................................................. 9 SPREADSHEETS, SCATTER PLOTS AND CORRELATION COEFFICIENT ............................................................................................... 10 REVENUE AND NET INCOME OF THE COMPETITORS FOR THE THREE FISCAL YEARS ........................................................................... 10 Proctor and Gamble ................................................................................................................................................. 11 Henkel ...................................................................................................................................................................... 12 Unilever .................................................................................................................................................................... 13 Church and Dwight Corporation ............................................................................................................................... 14 CONCLUSION .................................................................................................................................................................... 15 PRODUCT AND MARKET MATRIX .......................................................................................................................................... 16BUSINESS MODEL ANALYSIS ..................................................................................................................................... 17 UNLIEVER ........................................................................................................................................................................ 17 Value Proposition ..................................................................................................................................................... 17 Market Segment....................................................................................................................................................... 18 Value chain & cost models ....................................................................................................................................... 19 Revenue Models ....................................................................................................................................................... 19 Value network .......................................................................................................................................................... 20 Competitive Strategy ................................................................................................................................................ 20 HENKEL ........................................................................................................................................................................... 21 Value Proposition ..................................................................................................................................................... 21 Market Segment....................................................................................................................................................... 21 Value chain & cost models ....................................................................................................................................... 22 Revenue Models ....................................................................................................................................................... 22 Value network .......................................................................................................................................................... 22 Competitive Strategy ................................................................................................................................................ 22 CONCLUSION: ................................................................................................................................................................... 23 ARM AND HAMMER ........................................................................................................................................................... 24 Value Proposition ..................................................................................................................................................... 24 Market Segment....................................................................................................................................................... 24 Value chain & cost models ....................................................................................................................................... 25 Revenue Models ....................................................................................................................................................... 25 Value network .......................................................................................................................................................... 26 Competitive Strategy ................................................................................................................................................ 26 PROCTOR AND GAMBLE ...................................................................................................................................................... 27 Value Proposition ..................................................................................................................................................... 27 Market Segment....................................................................................................................................................... 27 Value chain & cost models ....................................................................................................................................... 28 Revenue Models ....................................................................................................................................................... 29 Value network .......................................................................................................................................................... 29 Competitive Strategy ................................................................................................................................................ 30 CONCLUSION .................................................................................................................................................................... 31MCKINSEY’S 7S ANALYSIS ......................................................................................................................................... 32 Page 2 of 55
  3. 3. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis UNILEVER ........................................................................................................................................................................ 32 Structure ................................................................................................................................................................... 32 Strategy .................................................................................................................................................................... 32 System ...................................................................................................................................................................... 34 Style .......................................................................................................................................................................... 35 Staff .......................................................................................................................................................................... 36 Skills.......................................................................................................................................................................... 36 Shared Values ........................................................................................................................................................... 36 PROCTER & GAMBLE.......................................................................................................................................................... 37 Structure ................................................................................................................................................................... 37 Strategy .................................................................................................................................................................... 37 System ...................................................................................................................................................................... 39 Style .......................................................................................................................................................................... 39 Staff .......................................................................................................................................................................... 39 Skills.......................................................................................................................................................................... 41 Shared Values ........................................................................................................................................................... 41 CONCLUSION: ................................................................................................................................................................... 42 CHURCH AND DWIGHT CO. ................................................................................................................................................. 43 Church and Dwight Hierarchical Organisational Structure ...................................................................................... 43 Strategy .................................................................................................................................................................... 43 System .................................................................................................................................................................... 44 Style .......................................................................................................................................................................... 44 Staff .......................................................................................................................................................................... 45 Skills.......................................................................................................................................................................... 45 Shared Values ........................................................................................................................................................... 46 CONCLUSION .................................................................................................................................................................... 46 HENKEL ........................................................................................................................................................................... 47 Henkel Hierarchical Organisation Structure ............................................................................................................. 47 Strategy .................................................................................................................................................................... 47 System ...................................................................................................................................................................... 48 Style .......................................................................................................................................................................... 49 Staff .......................................................................................................................................................................... 49 Skills.......................................................................................................................................................................... 50 Shared Values ........................................................................................................................................................... 50 CONCLUSION .................................................................................................................................................................... 50CONCLUSION ............................................................................................................................................................ 51BIBLIOGRAPHY .......................................................................................................................................................... 53 Page 3 of 55
  4. 4. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Executive SummaryThis report discusses the 4 main competitors in the laundry detergent industry – Unilever,Procter and Gamble, Henkel and Church % Dwight Co. The first part is a CompetitivePositioning Analysis which includes a Pie Chart that represents the market shares in thelaundry detergent industry; perceptual maps that has 1) price and quality relationship and, 2)by target markets. It also includes excel spreadsheets that reflects the revenues and netincomes of each company for the last three years. It also shows the correlation coefficientcalculations. There is also a table that shows the product lines and product mixes of eachcompany.The second part is composed of an extensive Business Model analysis of each competitor.Each company was examined based on their 1) value proposition, 2) Market segments, 3)value chain and cost models, 4) Revenue models, 5) Value network and, 6) Competitivestrategy.Finally there is an examination of the four companies based on Mckinsey’s 7S frameworkmodel, which are: 1) Structure, 2) Strategy, 3) System, 4) Style, 5) Staff, 6) Skills and, 7)Shared Values. Page 4 of 55
  5. 5. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Introduction In this report, we have identified and analysed the laundry detergent industry. There are fourmajor leading players in this industry and they are Proctor and Gamble, Unilever, Henkel andChurch and Dwight. P&G are the proud owners of Tide, Unilever is associated with Surf, while Henkel are the holders of Purex and Church and Dwight are the manufacturers of Arm andHammer.P&G is a fortune 500 global company and their revenue for the year 2009 is $79,029 (in million dollars) stated in their annual report. On the basis of correlation coefficient (0.65) it can beseen that they have a slight positive growth in the future. Unilever is a multinational enterprise and has a presence all over the world and their revenue for the year 2009 is €39,823 (inmillion Euros) and a correlation coefficient of 0.80 indicates a strong positive growth. Henkel is an international company with its existence in five continents and has revenue of $13,573 (in million dollars). From its correlation coefficient (0.51) it’s on the mid way and it has a positiveratio of revenue to growth. Church and Dwight is a major American manufactures of householdproducts with revenue of $2,520,922 (in thousands of dollars). The correlation coefficient is at 0.93 which is very high compared to its competitors in the North American market.In this report the four major giants have been compared. With the help of Competitive position analysis, Business model analysis and Mckinsey’s 7S analysis their strength, weakness, market share and revenue to growth have been identified. Page 5 of 55
  6. 6. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Competitive Positioning AnalysisThe following section of this report will provide a more visual understanding of this industry. Apie chart has been shown that demonstrates relative market share in the laundry detergentindustry. Secondly a perceptual map has been provided in order to get a better understandingof competitor positioning in the view of the customers perceptions. Followed by an excelspread sheet that displays annual revenue, scatter plots shows the competitor profit, revenueand correlation coefficient. Finally a product matrix has been shown. This enables the readerto have clear and comprehensive understanding of the competitive positioning of laundrydetergent industry.Market Share and Pie Chart Top laundry detergent vendors Market Share 2010 Tide 28% Purex 12.5% Surf 12% Arm and Hammer 8.25% Others 39.25% Laundry Detergents by Market Share as of 2010 Tide 28% Others 39.25% Tide Purex Surf Arm and Hammer Purex Others 12.5% Surf 12% Arm and Hammer 8.25 %"Laundry detergent brands." Consumer Reports, 2010. Web. 05 April 2010. Page 6 of 55
  7. 7. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis<http://www.consumerreports.org/cro/app liances/laundry-and-cleaning/laundry-detergents/laundry-detergent-buying-advice/laundry-detergent-brands/laundry-detergent-brands.htm>. Page 7 of 55
  8. 8. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisPerceptual Map of Competitor Brands by price to quality High Price 22 $21.55 (P&G) 20 $19.50 (Henkel) 18 16 14 12 $11.99 (P&G)Very Low Quality Low Average High Very High Quality 10 (Unilever) $8.99(Henkel) $8.50 8 6 $6.49 (Church and Dwight) $4.35 (Henkel) 4 $3.50 (P&G) 2 0 Page 8 of 55
  9. 9. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Low PricePerceptual Map of Competitor brands by target markets Expensive 24 $21.55 (P&G) $21.55 (P&G) 21 18 15 12 $11.99 (P&G) MediumChildren Women Family Men Students Seniors 9 $8.99(Henkel) 6.49 (Church and Dwight) 6 $3.50 (P&G) 3 Page 9 of 55
  10. 10. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis 0 Inexpensive Spreadsheets, Scatter Plots and Correlation Coefficient Revenue and Net Income of the Competitors for the three fiscal yearsYear Proctor & Henkel Unilever Church and Dwight Gamble Corporation (In millions of Dollars) (In millions of Dollars) (In millions of Euro) (In thousands of Dollars) Revenue Net Revenue Net Revenue Net Revenue Net Income Income Income Income2007 $74,832 $10,340 $13,074 $941 €40,187 €5,020 $2,220,940 $169,0252008 $81,748 $12,075 $14,131 $1,233 €40,523 €7,167 $2,422,398 $195,1742009 $79,029 $13,436 $13,573 $628 €39,823 €5,245 $2,520,922 $243,533 Page 10 of 55
  11. 11. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Proctor and Gamble $90,000 $80,000 $81,748 $79,029 $74,832 $70,000 $60,000 $50,000 $40,000 Revenue Profit $30,000 $20,000 $12,075 $13,436 $10,000 $10,340 $0 2007 2008 2009 (Dollar in Millions) Year 2007 2008 2009 Revenue $74,832 $81,748 $79,029 Profit $10,340 $12,075 $13,436 Correlation Coefficient 0.656367702 The correlation coefficient is just above 0.5 it is slightly in a positive ratio of revenue and profit. Proctor and Gamble will have a slight positive growth in the future.P&G 2009 AR Audited Statements of Earnings: Income, Share, Net." PG.com. N.p., n.d. Web. 14 Mar.2010. <http://annualreport.pg.com/annualreport2009/financials/acfs-cse.shtml>. Page 11 of 55
  12. 12. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Henkel $16,000 $14,000 $14,131 $13,573 $13,074 $12,000 $10,000 $8,000 Revenue $6,000 Profit $4,000 $2,000 $941 $1,233 $628 $0 2007 2008 2009 ( Dollar in Millions) Year 2007 2008 2009 Revenue $13,074 $14,131 $13,573 Profit $941 $1,233 $628 Correlation Coefficient 0.510509136The correlation coefficient is in the mid way and it has a positive ratio of revenue to growth.Henkel is falling behind all the competitors Proctor Gamble, Unilever and church and DwightCorporation in its growth.“Henkel AG & Co. KGaA Five Year Summary." Annual Report 2009. N.p., 25 Feb. 2010. Web. 14Mar. 2010.<http://www.henkel.com/com/content_data/165334_2010.02.25_FY_2009_annualreport_EN.pdf> Page 12 of 55
  13. 13. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Unilever € 45,000 € 40,000 € 40,187 € 40,523 € 39,823 € 35,000 € 30,000 € 25,000 € 20,000 Revenue Profit € 15,000 € 10,000 € 7,167 € 5,000 € 5,020 € 5,245 €0 2007 2008 2009 (Euro in millions) Year 2007 2008 2009 Revenue €40,187 €40,523 €39,823 Profit €5,020 €7,167 €5,245 Correlation Coefficient 0.800796064The correlation coefficient clearly indicates that they have a positive growth. Since it isapproaching closer to 1, its performance is better than its rivals Proctor and Gamble andHenkel."Unilever ." Consolidated Balance Sheet. N.p., 2 Mar. 2010. Web. 14 Mar. 2010.<http://www.unilever.com/images/ir_7_Financial_statements_AR09_tcm13-208078.pdf> Page 13 of 55
  14. 14. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Church and Dwight Corporation $3,000,000 $2,500,000 $2,520,922 $2,422,398 $2,220,940 $2,000,000 $1,500,000 Revenue Profit $1,000,000 $500,000 $195,174 $243,533 $169,025 $0 2007 2008 2009 (Dollars in Thousand) Year 2007 2008 2009 Revenue $2,220,940 $2,422,398 $2,520,922 Profit $169,025 $195,174 $243,533 Correlation Coefficient 0.93376342From the correlation coefficient it can be clearly seen that Church and Dwight Corporation hasa strong positive growth, since it is almost near 1."CHURCH & DWIGHT CO., INC. - News Release." CHURCH & DWIGHT CO., INC. - Investor RelationsHome. N.p., n.d. Web. 14 Mar. 2010. <http://investor.churchdwight.com/phoenix.zhtml?c=110737&p=irol-newsArticle&t=Regular&id=13853> Page 14 of 55
  15. 15. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisConclusionFrom the chart it is clearly seen that the four major players control the laundry detergentindustry. From the perceptual map it can be said that Proctor and Gamble (Tide), Henkel(Purex) and Unilever (Surf) cater to low, middle and high income group while Church andDwight (Arm and Hammer) is concentrating more in the low end category.Each company is strong in some of it speciality products in specific markets. Family andseniors prefer Tide, while women segment of the market stick to Arm and Hammer brand.From correlation coefficient it can be noted that Church and Dwight is at 0.93 in comparison toP&G 0.65, Unilever 0.80, and Henkel 0.51. This shows that Church and Dwight has astrongest growth rate in comparison to other competitors. While it has to eminent that totalsales volume of Church and Dwight is comparatively far lower than its competitors. Page 15 of 55
  16. 16. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis Product and Market MatrixCompanies Product Lines Geographic Segments Beauty and Albania, Algeria, Argentina, Bosnia, Brazil, Bulgaria, Canada, China, grooming Costa Rica, Czech Republic, Denmark, Egypt, Estonia, Finland, France,Proctor and segment, baby Germany, Hong Kong, Ireland, Israel, Italy, Japan, Korea, Latvia,Gamble and family care Lithuania, Mexico, Moldova, Montenegro, Morocco, Nederland, Norway, segment, fabric and home care Pakistan, Philippines, Republic of Macedonia, Romania, Russia, Serbia, and health care Spain, Sweden, Switzerland, Taiwan, Turkey, Ukraine, United Kingdom segments and United States.Henkel The company North America: United States, Canada, Puerto Rico, operates in three business areas South America: Argentina, Chile, Costa Rica, Guatemala, Mexico, home care like Venezuela, Brazil, Colombia, Ecuador, Jamaica, Peru laundry detergents and Europe: Austria, Belarus, Belgium, Bulgaria, Croatia, Czech Republic, dishwashing liquid. Personal Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, care products Italy, Kazakhstan, Latvia, Lithuania, Netherland, Norway, Poland, such beauty and Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, oral care products Switzerland, Turkey, Ukraine and United Kingdom. and adhesives, sealants and Africa and Middle East: Algeria, Egypt, Israel, Kenya, Lebanon, Saudi surface Arabia, South Africa, Tunisia and United Arab Emirates treatments for consumer and Asia Pacific: Australia, China, Hong Kong, India, Indonesia, Japan, industrial Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Taiwan purposes and VietnamUnilever The company India, Ireland, South Africa, United States and United Kingdom manufactures consumer care products, cleaning agents and personal care productsChurch and The company Australia, Canada, France, Japan, Korea, Mexico, Middle East UnitedDwight specialises in States, and United Kingdom, developingCorporation sodium bicarbonate products and markets household and personal care Page 16 of 55
  17. 17. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis products Business Model AnalysisUnileverElementUnilever is a company that covers many different products everyone uses! Some of theproducts they are famous for are Dove (beauty and personal), Becel, Ragu, and Red Rose tea(food and beverage).The information sought for Unilever is basically the success of the company. How their profitsare, how their sales are, compared to others in the market. They also carry Vim (home careproducts). More specifically what brands bring in the most revenue for Unilever.Value PropositionThe following has been taken from the Unilever web site to indicate what they plan on doing tomake themselves better for the sake of their customer. Our mission: Unilever’s mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Corporate responsibility To succeed also requires, we believe, the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact. Page 17 of 55
  18. 18. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisFrom these statements, it is concluded that Unilever intends to serve the needs of theircustomers in all areas of their lives that they can possible. Also it is acknowledged that theyunderstand they must have respect and build corporate relations with all of the lives theytouch.Using Henkel as a direct competition for Unilever, and comparing their offerings to society,Unilever does off more types of brands and products, such as food, beauty and personal care,cleaning, nutrition and more, Henkel only offers Home Care, Beauty and personal, adhesives,sealants, and surface treatments. So clearly with Unilever there is more selection.Letter from the Chairman (Michael Treschow)According to the Chairman of Unilever, Michael Treschow, during the 2008 downturn in theeconomy, Unilever was still able to do well due to Paul Polman’s leadership. “He hassharpened the strategy, improved execution in the market place, sharpened the emphasis oninnovation and injected a new sense of energy and urgency into the Group. Our investorshave recognised this.” The company has proven to do well through new strategies, andinnovative ideas, even when other companies were calling quits.Annual ReportThe following financial record was taken from Unilever’s Annual report, indicating how they didthroughout the years, from 2005 to 2009. From this report, it is clear to see that 2009 was notone of the best years, but kept up closely with the previous years, especially for a year thathad had an economic downturn.Market SegmentUnilever targets all types of people, all around the world. Every brand has their target group.For instance on the Unilever website the quote “160 million times a day, someone somewherechooses a Unilever product. From feeding your family to keeping your home clean and fresh, Page 18 of 55
  19. 19. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysisour brands are part of everyday life,” is used as a slogan to attract customers. The customerthis quote is used to target is mothers and any other domestic engineer. They do this byindicating what the products could do for a family.Another quote taken from Unilever.ca is “We developed the Dove® Self-Esteem Fund to makea real change in the way women and young girls perceive and embrace beauty.” Clearly fromthis statement it shows that the Dove product is made for women and girls, which means thisis the target group for this product. Also the Dove product also has an ongoing Self-EsteemFund for females. This shows that Unilever is committed to satisfying their customers.Value chain & cost modelsUnilever is one the oldest, most used brands around. They continue to splurge with new ideasevery day, from the Dove beauty bar, to the less sodium Side Kicks, the company is alwaysfinding new innovative ways to satisfy their changing customers. This research anddevelopment sector costs show in the operating margin expense of 12.6%. Unilever sells itsproducts in over 170 countries, employees. By the end of 2009 the company spent €891m onR&D worldwide 163,000 employees. Also the company spent €89m in community programsworldwide. So obviously this company gives back as well. For the end of 2009 net profit wasapproximately €3,659m.The budget for research and development for Unilever in €900 million and employ around6,000 people in six research facilities across three continents: two in the UK and one each inthe Netherlands, US, China and India.Revenue ModelsIn the annual report for Unilever it states that the top 25 products bring in nearly 75% of thesales for Unilever. The top thirteen brands are Axe/Lynx, Blue Band, Dove, Flora/Becel, andHeartbrand ice creams, Hellmann’s, Knorr, Lipton, Lux, Omo, Rexona, Sunsilk and Surf. Page 19 of 55
  20. 20. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisValue networkUnilever follows a Business Partner Code when assigning new suppliers, which enables themto make certain that their suppliers match company values. Pulled from the article onUnilever’s website, “this specifies our responsible sourcing requirements on the key areas ofhealth and safety at work, business ethics, labor standards, consumer safety and theenvironment,” pertaining to the Business Partner Code.Competitive StrategyAccording to the letter from the Chief Executive Officer’s (Paul Polman) review, the company’sstrategy is to forever be innovative and to send out new products to as much markets aspossible. It says that the company’s innovations are getting bigger and better. “The OneUnilever structure allows for faster roll-out across multiple geographies.” Instead of hitting oneplace at a time, the company hits up to 50 markets at a time.Another part of the company’s strategy is also how they have different programs for things thatpeople seek interest in. Such as the Dove Self Esteem program, this takes a lot of money fromthe company, but in return the company promotes its products.Unilever pays attention to what’s going on around the globe, for instance they made agenerous donation to Haiti just recently. The company is a low cost provider in differentproducts, some products are relatively easy to afford and bring maximum satisfactory to itscustomers.Unilever differentiates its products by selling products that are healthy compared to othercompanies producing similar products. Such as the less sodium Side Kicks. The type of boxedmeal is sold by other brands, like Selection, but does not carry any other choice for the healthconscious customers. Page 20 of 55
  21. 21. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisHenkelValue PropositionHenkel has been around in our stores and drug stores for 133 years. Recently it hasdeveloped to be one the most popular brand makers worldwide.According to the 2009 annual report, one statement made was, “Henkel promises to conductits worldwide business in a sustainable and socially responsible manner. Our brands fulfill thispromise by combining top brand quality with contributions to sustainable development. Thecommon focus on central challenges and market-specific implementation strengthens trust inour brands and technologies and therefore in our company.” This means that whatever thecompany does, they promise to do it in a way that does not affect the environment and thecommunities around their factories, and businesses. In their success factor model, also foundin the annual report, it shows the concern they have for all the things at hand, such as waterand wastewater. The company strives to become more positive to the world, and to reach theirgoals in this way.One advantage that the company has over its competitor Unilever is that they also carryindustrial products, such as surface treatments, sealants and more.Market SegmentHenkel’s market segments are more narrowed that Unilever as they carry fewer products.However Henkel targets both men and women, as they carry products everyone uses. They Page 21 of 55
  22. 22. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysishave their home care products, such as Purex, they have the beauty products, such as Softand Dry, and then they have the Adhesives, Sealants & Surface Treatments, such as Lepage.Henkel’s products are sold all over the world, so it basically is targeted everyonegeographically.Value chain & cost modelsWith Henkel, what adds the most value (cost) would be their advertising, research anddevelopment and their employees which are located all around the globe. In 2009, Henkelemployed about 2,800 people and invested 396 million Euros in research and development.Revenue ModelsThe products that pull in a great deal of revenue for Henkel is the craftsmen and the cleaningitems. However in 2009, the economic downfall also took down the net income for Henkel.“Henkel Group sales in 2009 amounted to 13,573 million Euros, a fall of 3.9 percent comparedto prior year. After adjusting for foreign exchange, the decline in sales was1.5 percent.” Statedin the annual report. This shows that the company did not do as well as it had before, and ontop of that, they also had to let some employees go.Value networkWhen creating relations with suppliers, the company makes certain that the suppliers anddistributors follow the same guidelines they follow, such as where they would be getting theirmaterial from, they must not be endangering the environment and communities. Theseguidelines were made in 1997 and has been followed though since.Competitive StrategyHenkel has been around a long time, and has therefore already made a reputation with itsname, however how they intend to keep the reputation entails what they do with their newproducts and how they react with the changing world and customers. For example the 2009 Page 22 of 55
  23. 23. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysisannual report states that in 2008. Henkel declared the main framework of a worldwideefficiency enhancement program under the heading “Global Excellence.” This program isnecessary for the changing market conditions. This program holds in it all different sectors ofbusiness worldwide. With the downturn of the economy in 2009, the program was accelerated.The program “Global Excellence” was completed by the end of 2009 due to the provisionsmade in 2008, of 504 million Euros. This program helps the company to survive in economicalissues and the entire changing market.Conclusion:To conclude, both Unilever and Henkel are both productive companies that survived the 2009economic downturn, both dealt with it in their own way. Unfortunately both companies haddone better in previous years, and Henkel was even provoked to let employees go. Comparingthe two, Unilever seems like the better company. Not only does it have more selection, it alsohas programs for everyone, such as the Dove Self-Esteem program. Also they carry healthierproducts, like their less sodium Side Kicks. Unilever seems that it reaches the customers morethan Henkel, and it shows in their profit revenue. Both companies seem to be involved withcreating an environment friendly organization. As for as their suppliers go, they both seem tobe on the idea of making relations with suppliers who would hold as much respect for theenvironment and society as they do. In this manner they show that they are not only aboutrevenue. Page 23 of 55
  24. 24. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisArm and HammerValue PropositionConsumer purchasing trends that they predicted 2 years ago is now happening. Arm &Hammer have started the trend in the Retail Sector, Eco Labs in the Janitorial. Chemicalconcentrates, reusable bottles and hand held sprayers, are the wave of the future for the retailand Industrial markets. Wal-Mart and Arm & Hammer have launched, with huge success, theEssential range. Wal-Mart claims that this will result in savings of 225 million lbs of plasticwhen 200 million shoppers using 7 refill cartridges. ProSprayer claims: 200 million shoppersusing 35 refill cartridges before replacing bottle and sprayer will save 1.1 BILLION lbs ofplasticThe value proposition to retailers such as Arm & Hammer is the cost of a Standard Triggermechanism of $9.50 when equating it to the cost of a ProSprayer.Market SegmentThe “Secret” master brand campaign has been a huge success for ARM & HAMMER, meetingall of the campaign objectives. Copy test performance for the campaign’s launch commercial,ARM & HAMMER Fridge Fresh, was within the top 3% of commercials ever tested by ASI. Thecampaign was successfully translated across all categories. Overall, the ARM & HAMMERbrand achieved organic growth, up +6% in 2007 vs. year-ago. Importantly the campaign didnot limit the individual ARM & HAMMER sub-brands from telling their unique product story anddriving sales. The “Secret” campaign is successfully building and extending brand equity anddriving Sales. “Secret” moves equity perceptions in the short term helping build and extendequity for the longterm. ASI Brand Equity Index numbers are significantly above average for all Page 24 of 55
  25. 25. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisTV executions within the campaign except toothpaste which is at the top end of the average.The Brand Equity Index consists of uniqueness, relevance, familiarity, popularity and quality.The “Secret” campaign has delivered highly effective copy, generating very strong purchaseinterest across the portfolio. The Copy Effect Index combines related recall and persuasion.The campaign has provided a winning platform to successfully launch both new and existingLaundry detergent formulated productsValue chain & cost modelsIt’s one of the world’s most recognizable trademarks, the arm and hammer, and just abouteveryone associates it with the number-one maker of baking soda. Distribution accounts for arelatively high percentage of sales, when compared with mega-competitors like Unilever andProcter & Gamble. Church & Dwight’s products carry lower margins than premium-priceditems like Procter & Gamble’s Tide. So transportation expense became a major focus in thecompany’s efforts to overhaul its supply chain. Retailer demands can be intense. Oftenproduct must be individualized, by size or packaging, for each major customer. To meet thosedemands while optimizing inventory, the company had to do a better job of planning andforecasting .Church & Dwight’s plans to increase sales over the half-billion dollars. Sales todayare around $1.5 billion.Revenue ModelsThe full year media budget for the launch of the Arm & Hammer master brand campaign wasapproximately $30MM .This budget supported the entire Arm & Hammer portfolio that includedfive categories: baking soda, toothpaste, laundry detergent, cat litter and carpet deodorizer. Page 25 of 55
  26. 26. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisValue network1970 ARM & HAMMER introduced its first baking soda formulated product. ARM & HAMMERLaundry Detergent. Following this successful launch, ARM & HAMMER over the next 30years, introduced a continuous stream of baking soda formulated products in the oral care, catlitter and household cleaning products categories. By 2005 the ARM & HAMMER franchisehad grown to almost $700MM.Competitive StrategyBut as the franchise grew, the ARM & HAMMER brand became more fragmented. There wasnot a singular brand voice for ARM & HAMMER and there was a wide variety of creativecampaigns for individual sub-brands. The role of ARM & HAMMER baking soda incommunications was inconsistent and not working to build brand equity. Although consumersgave ARM & HAMMER strong ratings on trust, the brand was very strongly perceived as “oldfashioned,” “not contemporary” and not strongly delivering product efficacy. Overall the ARM &HAMMER brand was becoming less relevant to consumers. And sales were declining inseveral key segments including oral care, laundry detergent, and baking soda, the foundationof the ARM & HAMMER franchise. The brand was also being very inefficient by having somany silo campaigns running at relatively low budget levels. ARM & HAMMER faced muchlarger competitors and was significantly outspent in almost all of the categories it competedlike Crest and Colgate in oral care and Tide in laundry detergent. For perspective, Crestspends eight times the amount ARM & HAMMER spends in the toothpaste category. The goalwas to develop a unified master brand campaign that would support the breadth of the ARM&HAMMER portfolio behind a common look and feel to, build and extend brand equity in aconsistent way, drive sales, make ARM & HAMMER baking soda solutions relevant to today’sconsumer and generate greater portfolio impact. ARM & HAMMER is a master brand like noother. Whereas a master brand like Dove competes in many categories but all within personalcare, ARM & HAMMER competes in numerous categories within household and personal Page 26 of 55
  27. 27. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysiscare. This made the potential research a challenging assignment to identify the core insightsthat would translate across the breadth of the portfolio and ultimately guide the development ofa meaningful master brand campaign.Proctor and GambleValue PropositionProcter & Gamble is a uniquely diversified consumer products company with a strong globalpresence. Three billion times a day, P&G brands touch the lives of people around the world.The company has one of the strongest portfolios of trusted, quality, leadership brands.Improving the lives of consumers worldwide is about more than just great products. Its aboutcorporate responsibility through positive contributions to environmental quality and to thecommunities in which we live and operate our business. P&G is the leading consumerproducts company in Canada with over $2.7 billion in annual sales. In Canada, P&Gs headoffice is located in Toronto, Ontario. There are 2 manufacturing sites located in Belleville &Brockville and a distribution warehouse located in Brantford, OntarioMarket SegmentMarketers at P&G are talented, skilled, innovative thinkers and leaders with a drive forexcellence and a passion for winning. There Global Marketing leaders identify the targetconsumers for P&G brands and determines how to reach them. Procter & Gamble is a giant inhousehold products, and the company which defined many marketing strategies we now takefor granted. It was the first company to advertise nationally direct to consumers and it literallycreated the concept of "soap opera" by sponsoring radio and television dramas targetingwomen. Other inventions included the first Fluoride-based toothpaste, the revolutionary Page 27 of 55
  28. 28. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysissynthetic detergent Tide, and the first disposable nappy, Pampers. P&G found life in the firstyears of 21st century more difficult than it may have expected, with earnings belowexpectations and a series of management shake-ups as a result of under-performance.Following dynamic performance in 2003 and 2004, P&G demonstrated the strength of itsrecovery with the announcement in 2005 that it had agreed a deal to acquire legendarypersonal care products rival Gillette. Advertising Age estimated global measured advertisingexpenditure of $9.7bn in 2008, making P&G the worlds #1 advertiser.Value chain & cost modelsP&G’s supplier diversity network is comprised of over 1,250 minority- and women-ownedbusinesses. The company first established a minority supplier development program in 1972.In the past ten years, minority purchasing at P&G grew almost ten-fold from $115 million in1989-1990 to almost $1.0 billion in fiscal 2001-2002. During the decade of the 1990’s, P&G’sspending with minority and women-owned businesses exceeded $4 billion dollars for theperiod.Like many companies, P&G is linked with numerous organizations. But, it is P&G’s activedevelopment of minority-owned businesses that stands out. For example, P&G made loans inthe 1980s to several minority businesses and start-up companies, based on ideas loanrecipients had and the needs of P&G. Today, Adhesive Systems Inc. in Detroit manufacturespackaging glue for P&G and other packaged goods companies. Atlanta Thermoplasticsmanufactures a significant amount of the detergent scoops P&G needs in North America. P&Gassisted Specialized Packaging Group (SPG; Hamden, CT) in acquiring two manufacturingcompanies. These acquisitions allow SPG to manufacture cartons for Tide, Swiffer and Crest.Finally, P&G just announced in April 2003 a $30 million, 3-year contract to a minority businessto manufacture body shampoo for P&G. This business is a built-from-the-ground-up facility inCincinnati’s Empowerment Zone. It will generate up to 200 jobs when fully operational. Page 28 of 55
  29. 29. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisRevenue ModelsProcter & Gamble is the worlds largest producer of household and personal products byrevenue, with its products reaching 4 billion people worldwide. P&Gs product line includes 23brands across beauty, healthcare, and food including Tide detergent, Pampers diapers, andGillette razors, that generate over $1 billion in revenue annually, with the companys totalrevenue at $79 billion in fiscal 2009. In 2005, P&G expanded its portfolio to include razors andblades as well as batteries with its acquisition of the Gillette Company. The companys 2010second quarter net income for the period ending December 31, 2009, fell to $4.46 billion($1.49 per share) from $5 billion in the previous year. Analysts had expected earnings of $1.42a share. Revenue rose 6.4% to $21.03 billion from $19.76 billion, falling short of analystexpectations of $21.07 billion. Both organic sales and volume of goods sold, which excludeforeign currency fluctuations, rose 5% in the quarter. One of the key areas of growth for thecompany is in emerging markets worldwide. Sales in developing nations have increasedsteadily from 20% of total revenue in 2002 to 32% in 2009. P&G already owns large andgrowing market share in countries including China and Russia. P&G has created productssuch as Downy Single Rinse, low-water volume detergent, and Naturella, a low-incomefeminine protection product, specifically for developing nations. In light of the global economicdownturn, P&G has announced it will focus its growth strategy on emerging markets, openingalmost all of its 20 new manufacturing facilities outside its established marketsValue networkThe 165-year-old Procter and Gamble Company (P&G) is a recognized leader in thedevelopment, distribution and marketing of products in nearly 50 categories—from laundryproducts and toothpaste, to diapers and bone disease therapies. P&G products consist ofnearly 300 individual brands used by customers in over 160 countries.In 2001, P&G announced its commitment to spend $1.5 billion with minority- and women- Page 29 of 55
  30. 30. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysisowned suppliers annually. This represents approximately 11% of the company’s annualpurchasing budget in the United States. "With minority populations of today quickly becomingthe majority of the population tomorrow, we see a competitive advantage in increasing ourbusiness with entities that reflect our country’s diverse consumers," says Daryl Hodnett, GroupManager, Corporate Supplier Diversity Development, Product Supply – North America."Supplier diversity is an important plank in P&G’s efforts to build our brands’ business with thecountry’s diverse consumer base, helping P&G and America’s minority communities grow andprosper."Competitive StrategyP&G has an edge over there competition, the advantage thats hardest to duplicate, is P&Gpeople. When they are inspired and at their best, when they are growing as individuals,collaborating as teams or leading as owners of their business, they are unstoppable. This levelof inspired performance is crucial to P&Gs ability to consistently sustain growth over time andis the key reason we strive to hire the best, investing in talented people and developing themto their maximum potential. Procter and Gamble is a global consumer products brand withmarket leadership in several segments ranging from beauty to household products. As aleading Consumer Products organization, Procter and Gamble continues to impress with solidgrowth from core businesses as well as constant diversification through acquisitions and deeppenetration into emerging markets. Procter & Gamble attempts to maintain its competitiveedge by focusing on product innovation. To this end, P&G spends almost twice as much onresearch and development spending ($2.0 billion in 2009) as its closest competitor. (Its biggestcompetitor, Unilever, spent about $1.3 billion USD in 2008.) Through its "Connect + Develop"initiative, P&G looks to bring in new product ideas from outside the company. Connect +Develop has led to the development of 42% of new P&G products in recent years. In February2010, the company said it will launch a "flurry" of new products globally, using innovation toboost sales in fiscal 2010 coming out of the global recession. In fiscal 2009, P&Gs net sales Page 30 of 55
  31. 31. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysisfell 3% to $79.0 billion driven by a 3% decline in unit volume and a 4% decline in net salesfrom the rising US dollar. Organic sales, a closely watched figure which excludes the impact ofacquisitions, divestitures, and foreign exchange, increased 2%, which is below its targetorganic sales range of 4-6%. Earnings for fiscal 2009 increased 11% to $13.4 billion.ConclusionIn conclusion Church & Dwight Co is the leading U.S. producer of sodium bicarbonate,popularly known as a natural product that cleans, deodorizes, leavens and buffers. TheCompany’s ARM & HAMMER brand is one of the nation’s most trusted trademarks for a broadrange of consumer and specialty products developed from the base of bicarbonate and relatedtechnologies. They are doing very well and are continuing to make a lot of moves in thelaundry department. P&G is the innovation leader in the laundry industry. Virtually all theorganic sales growth they have delivered in the past nine years has come from new brandsand new or improved product innovation. They have continually strengthened their innovationcapability and pipeline by investing two times more, on average, than their major competitors.In addition, they multiply our internal innovation capability with a global network of innovationpartners outside P&G. Page 31 of 55
  32. 32. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis McKinsey’s 7S AnalysisUnileverStructure Group chief Executive: Categories P. Cescau Functions Foods: Finance: V. Banga R. Markham Europe: Americas: Asia/Africa K. van der M. Polk H. Manwani Graaf HPC: HR: R. Kugler S. Ogg RegionsStrategyIn July 2004 Unilever announced its new strategy for the period 2005-2010. It adopted a moreconservativeapproach. The main headlines of the strategy for the new 5-year period were:  Stay within the top position of the major fast moving Consumer Goods Companies  Average sales growth of 3-5%  Free cash flow generation of about € 30 billion (in the period 2000-2004 this was € 20 billion). This has to result in an increase in return on invested capital from 12.5% in 2003 to at least 17% by 2010.  Improvement of the capital efficiency. In other words, ongoing restructuring, but now not in the first place in production. The emphasis will now be laid upon restructuring in overheads and indirect functions. Page 32 of 55
  33. 33. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisThe first measures in the new restructuring policy have already been announced. In November2004 Unilever announced in many countries that it would merge the two main divisions Foodsand HPC into one operating company in each country. This implies the reduction of thenumbers of managers with many hundreds worldwide. First of all one operational company willbe formed in each country. And in this company there will be separate marketing operationsfor the specific core products. Probably this will also have repercussions for the productionfactories in the coming years. But they will only be released when the new managementstructures are formed and have had time to prepare further efficiency measures in the supplychain.Other important methods to reduce costs are:  More intra regional sourcing: what has been started in the EU will be introduced now in other regions in the world. It means the reduction of production locations per region and the concentration of production in fewer selected sites. For example, Indonesia has been selected as the major production base for South East Asia. This led already to the shift of production from Australia and the Philippines to Indonesia and the closure of factories in those countries. Similar operations will follow in the Mercosur region and others.  Outsourcing of production will go up from 15% to 25%  In some countries the levels of outsourcing are probably already higher, as is the case in India. These figures relate to the overall pattern for the whole company worldwide.  Selective cross-regional sourcing. This goes one step further. For specific products it could be possible to source for example for the EU market in Asia or vice versa, dependant on various factors. The result is in any case the reduction of the number of production sites involved. Page 33 of 55
  34. 34. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis  Raise the level of world wide buying from 50 to 60%. A higher level of centralized buying will reduce costs and will make live for suppliers tougher. They will start restructurings to as an answer to this policy.SystemWithin the core activities, Unilever introduced new management techniques. The combinationof higher levels of mechanisation and automation meant higher levels of training and skills forits employees. In the early 1990’s, Unilever introduced its TQM (Total Quality Management)programmes in a few of its subsidiaries. At that time, new management techniques concerningwork organisation, industrial relations, team building, TPM, etc. were usually tested insubsidiaries of the Personal Products division (later the Home & Personal Care division).Later, these trial runs were set up in the Detergents group and Foods activities subsidiaries.Currently, all product groups start more or less simultaneously with new work strategies. Intypical Unilever fashion, these developments were initiated in all the relevant regionsworldwide. Forerunners include the Gessy Lever plant in Valinhos, Brazil; the Lever Brothersplant in Utsonomiya, Japan; the Rungkit factory in Surabaya, Indonesia; and the Elida Gibbsplant in Buxtehude, Germany.In 1997, Unilever initiated a new corporate management structure called the Manufacturingand Supply Chain Technology (MAST) Council. All of Unilever’s business groups, sectors, andcorporate management employees are actively involved. MAST’s aim is to survey andpromote best-practice procedures regarding the purchasing, production, and distributionaspects company-wide. One result has been that TPM (Total Productive Maintenance:engineering and maintenance are progressively integrated into the job description of process-operators who are retrained as multi skilled operators) is operational in 155-160 factories ofUnilever worldwide. One of the core issues of TPM is to raise the levels of efficiency of Page 34 of 55
  35. 35. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysismachine and production line utilization from low levels of some 50-60% to highs of some 85-95%.Unilever operates as a single business entity. NV and PLC are the two parent companies ofthe Unilever Group, having separate legal identities and separate stock exchange listings fortheir shares. To ensure unity of governance and management, they have the same Directorsand are linked by agreements. The Equalisation Agreement regulates the mutual rights of thetwo sets of shareholders, including dividends. There is a one-for-one equivalence between theshares. Lever general office in Mumbai was the first office operation worldwide to receive theTQM award from the Japanese institute that audits companies on TQM. The other offices ofUnilever worldwide will follow the coming years.StyleUnilever’s deep roots in local cultures and markets around the world give them their strongrelationship with customers and are the foundation for their future growth. They will bring theirwealth of knowledge and international expertise to the service of local consumers – a trulymulti-local multinational.Unilever’s long term success requires a total commitment to exceptional standards ofperformance and productivity, to working together effectively, to a willingness to embrace newideas and learn continuously.To succeed also requires, Unilever believes, the highest standards of corporate behaviourtowards everyone they work with, the communities they touch, and the environment on whichthey have an impact. Page 35 of 55
  36. 36. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisStaffUnilever is one of the world’s most culturally diverse companies, with top leadership from 24different nations.Presented at the table below are the Employment per region (per year) of Unilever(Per year in 1998 1999 2000 2001 2002 2003thousands)Europe 81 74 80 71 60 55North America 23 22 39 22 21 20Africa & Middle 60 50 48 49 52 52eastAsia & Pacific 73 71 84 85 82 77Latin America 30 29 44 38 32 30 Total: 267 246 295 265 247 235Nothing embodies our business as much as our employees. We grow as a company by growing our peopleand are committed to their personal vitality.SkillsAs a business, Unilever consistently rank among the worlds most admired employers andhave a reputation for putting people first. That’s because they provide opportunities for all theirpeople to pursue their careers goals, develop professionally and maintain a healthy balancebetween their professional and personal lives.They are committed to their people because they recognise that their strength comes from thepeople’s energy and passion. And they believe that diversity makes them stronger, throughindividuals working together to deliver outstanding results.Shared ValuesUnilever’s mission is to add Vitality to life. “We meet everyday needs for nutrition, hygiene andpersonal care with brands that help people feel good, look good and get more out of life.” Page 36 of 55
  37. 37. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisProcter & GambleStructure Chairman of the board, President and CEO: Bob McDonald Vice Chairman, Vice Chairman, Vice Chairman, Vice Chairman, Global Household Global Beauty and Global Health & Global Care: Operations: Grooming: Well-Being: Dimitri Werner Geissler Ed Shirley Robert A. Steele PanayotopolousStrategyThe following are strategies originally set in 2007 and were increased in March 2009:Strategy 1: ProductsDelight the consumer with sustainable innovations that improve the environmental profile ofour products. The goal is to develop and market at least $50 billion in cumulative sales of“sustainable innovation products,” which are products with a significantly reduced (>10%)environmental footprint versus previous or alternative products.Strategy 2: OperationsImprove the environmental profile of P&G’s own operations. The goal is to deliver an additional20% reduction (per unit of production) in CO2 emissions, energy consumption, water Page 37 of 55
  38. 38. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysisconsumption and disposed waste from P&G plants, leading to a total reduction over thedecade of at least 50%.Progress: Reductions since July 2007: Energy Usage -11%, CO2 Emissions -10%, WasteDisposal -30%, Water Usage -13%.Reductions since July 2002: Energy Usage -48%, CO2 Emissions -52%, Waste Disposal -53%, Water Usage -52%.Strategy 3: Social ResponsibilityImprove children’s lives through P&G’s social responsibility programs. The goal is to enable300 million children to Live, Learn and Thrive. Prevent 160 million days of disease and save20,000 lives by delivering 3 billion liters of clean water in our Children’s Safe Drinking Waterprogram.Progress:135 million children reached; 930 million liters of clean water delivered; 39 million days ofdisease prevented; >5200 lives saved.Strategy 4: EmployeesEngage and equip all P&G to build sustainability thinking and practices into their everydaywork.Strategy 5: StakeholdersShape the future by working transparently with our stakeholders to enable continued freedomto innovate in a responsible way. Page 38 of 55
  39. 39. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisSystemP&G continues to drive conservation efforts in manufacturing and they have applied smart ecodesigns to reduce our operational footprint. Beyond that, they also have expanded their effortsacross the entire supply chain, taking a holistic end-to-end view of opportunities. They initiatedprojects in transportation that created significant energy savings and they chartered a SupplierSustainability Board to guide the development of supplier related strategies.StyleAt P&G, it’s about integrity and character. It’s about building trust by being open, honest,straightforward and candid with each other, our customers, consumers and business partners.They do what they say, and they say what they mean. This is what sets P&G and P&G peopleapart.As a “build from within” organization, they see 95% of their people start at entry level and thenprogress and prosper throughout the organization. This not only creates many wonderfulopportunities to grow and advance, it creates a special camaraderie among fellow P&G, manyof whom came up through the ranks together.StaffHuman Resources ensure that P&G has the employees, organizational design, and workculture to deliver business productivity and to continually improve consumer, employee, andshareholder value. They provide recruiting, training, development, diversity, benefits, andcompensation coordination for the Company. It is the Company’s intent to develop allemployees to their full potential. To achieve this goal, the following support systems are inplace: Page 39 of 55
  40. 40. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysis • Career discussions, performance appraisals, assignment plans, transfer and promotion plans. • Informal network support groups • Mentoring to provide informal support and guidance, in addition to coaching and training provided by each employee’s direct manager.Employee PrivacyP&G respects employee privacy and dignity. We will only collect and retain personalinformation from employees that is required for the effective operation of the Company or asrequired by law. We will keep that information confidential and release it only to those whohave a legitimate need to know.Harassment PolicyP&G is committed to providing a harassment free work environment. This is the right thing todo not only from a social perspective, but also from a business perspective. It enables ourdiverse work force to contribute to their highest potential. We will not tolerate harassment ofanyone by anyone — including employees, suppliers, customers, contractors, and agencies.Every employee is expected to be proactive in ensuring that the work environment is free fromharassment of any kind. Managers of others are responsible for setting clear expectations foracceptable behaviour in the workplace.WagesP&G supports paying employees a competitive wage, as benchmarked against other leadingcompanies. Consistent with our principle of valuing personal mastery, we reward employeesfor improving their skills and capabilities. Page 40 of 55
  41. 41. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisBenefitsP&G is a recognized leader in employee benefits. The Company’s benefits have beendeveloped to help protect the financial security of employees. These benefits includecomprehensive coverage for health care, generous vacation and holiday time, and otherwork/family balance benefits, including flextime, child care leave, and less-than full- timeschedules.SkillsDue to the fact that Procter & Gamble is one of the largest organizations in the world and oneof the most distinguished, it attracts a large pool of job applicants. From fresh Universitygraduates to veterans with PhD’s and MBA’s. Because of that, P&G possesses the mosttalented people – from IT specialists to technicians, scientists to financial analysts. To be ableto be a part of such a prestigious company, one has to have the exceptional skills and qualitiesthat the company is looking for.Shared ValuesP&G’s purpose is to provide branded products and services of superior quality and value thatimprove the lives of the world’s consumers, now and for generations to come.“As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people,our shareholders, and the communities in which we live and work to prosper.” Page 41 of 55
  42. 42. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisConclusion:Unilever and P&G are one of the most recognizable multinational companies in the world.They employ the most talented and skilled people. These companies, because of their size,have the most complex systems. They own majority of the shares in the market. Even thoughthe structure is vast and very diverse, these companies still operate based on each of theirvalues and missions. Page 42 of 55
  43. 43. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisChurch and Dwight Co.Church and Dwight Hierarchical Organisational Structure James R. Craigie - CEO Matthew T. Joseph A. Sipia, Farrell - CFO Jr. - President Steven J. Katz - Susan E. Goldy - Adrian J. Huns - Chief Accounting General Counsel Executive VP Officer & Secretary Arthur B. Bradley C. Irwin - Mr. Jeffrey A. T. Rosie Albright - Robert K. Winkleblack - Director Levick - Director Director Shearer - Director DirectorStrategyChurch and Dwight consumer product business is organised into two segments consumerdomestic which consist of household and personal care products and consumer internationalwhich consist of personal care products.Even though Church and Dwight Co were founded in 1846, they started expanding only fromthe year 2001. With the changes in global economic scenario, Church and Dwight decided thatit will not be viable to continue with the same products forever. They decided to expand and Page 43 of 55
  44. 44. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysisacquire loss making concerns cheaply. In 2001 they acquired laundry brands XTRA andNICE’N FLUFFY from USA detergents Inc. “Later that year, Church & Dwight acquired theconsumer products business of Carter-Wallace, Inc., purchasing the ARRID Antiperspirant andLAMBERT KAY Pet Care brands outright, and the remainder of the business, including suchbrands as TROJAN Condoms, NAIR Depilatories and FIRST RESPONSE Home Pregnancyand Ovulation Test Kits, through Armkel LLC, a 50/50 joint venture with a private equitycompany.” (Church and Dwight 2010)There acquisition spree continued and in 2003 they acquired Unilever oral business in USAand Canada. “In August 2006, the Company expanded its household brand portfolio with theacquisition in the net assets of Orange Glo International, which included such brands as OXICLEAN, a premium-priced leader in the fast-growing laundry pre-wash category” (Church andDwight 2010).SystemChurch and Dwight believe in selecting the right raw materials and manufacturing the finishedproducts in a closed and dedicated system which is free of plants or animal products. Theymeet the highest standards for regulatory and environmental compliance. They subject theirfacilities to regular third party audits like ISO 9001, FPA-Safe, NSF and Kocher certification.They have a strong technical service and research and development team which are availableround the clock to solve trouble shooting problems and continuously create new formulations.StyleChurch and Dwight strongly believe in giving back to society in their own style.” They havecontributed approximately $285000 in cash to charitable organization. It has also donated$70,000 in cash and roughly $1 million of Arm & Hammer(R) products including laundrydetergent, toothpaste and toothbrushes to the American Red Cross, The Salvation Army,Second Harvest and other charitable organizations working in areas affected by HurricanesKatrina and Rita” (Church and Dwight 2010). They also have an employee giving fund which Page 44 of 55
  45. 45. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysisassists those who are less fortunate and participate in contributing to not for profitorganisation. The Company matches employee contributions to the Employee Giving Funddollar for dollar.StaffChurch & Dwight employs 2,617 persons in North America.Statistics on employee numbers from 2006 to 2008 are shown in the table below. Church & Dwight Employee Statistics 2006-2008 2006 2007 2008Employee count 2595 2615 2617Hourly 1465 1553 1267Salaried 1130 1062 1350Additionally, Church & Dwight employs approximately 1000 people outside North America inforeign subsidiaries. The Company attracts and retains employees by offering them an action-oriented environment that values accomplishment. “The Company also offers competitivesalaries, excellent health and wellness benefits, 401(k), profit sharing a generous vacationpolicy, educational assistance, and many other benefits” (Church and Dwight 2010).SkillsChurch and Dwight have designed an online training program to offer its employees the skillsneeded to succeed in the workplace. By training online, Church & Dwight can reach employeeswherever they are and at lower cost than classroom training. Employees taking advantage of thisopportunity can enhance their knowledge and are able meet their development plans forprofessional growth. In addition the Company also provides its employees with performance Page 45 of 55
  46. 46. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business Analysismanagement training, harassment policy and prevention training, code of conduct training,employee orientation programs, safety hazard training, and supervisory development programs.Shared ValuesChurch & Dwight Company recognizes that employees are the most valuable resource and thekey to continued growth into the 21st century. They strongly believe in respecting itsconsumers, employees, customers and the environment. “The company devotes significantresources to product innovation and process technology so we can develop differentiatedproducts that are better for our customers, better for the environment and provide highperformance and value, or simply put, “products for a healthier and more sustainable living”(Church and Dwight 2010).ConclusionChurch and Dwight have adopted a hierarchical organisation structure. They were veryconservative in their approach from the year 1846 till the year 2000. But the change in globaleconomic scenario forced them to change their business tactics and they started becomingaggressive by acquiring loss making laundry brands. They believe in doing the things rightfrom the very beginning, which is clear from their raw material procurement policy. In their ownstyle they give back to society by donating generously to various charitable institutions. Theytake care of their employees very well by offering them number of benefits in addition to theirsalary. They motivate their employees by offering various training programs. They stronglybelieve in respecting its consumers, employees, customers and the environment. Page 46 of 55
  47. 47. [BUSINESS ANALYSIS REPORT LAUNDRY DETERGENT INDUSTRY] Business AnalysisHenkelHenkel Hierarchical Organisation Structure Kasper Rorsted Chief Executive Officer Dr. Lothar Thomas Geitner Hans Van Bylen Dr. Friedrich Stara Steinebach Executive Vice Executive Vice Executive Vice Executive Vice President Adhesive President President Laundry President Finance Technologies Cosmetics & Home CareStrategyHenkel operates in three business segments Home Care, Personal Care, and AdhesiveTechnologies and is ranked among the Fortune 500 global companies. “More than 60 percentof Henkel’s sales are in consumer goods, while the industrial business accounts for almost 40percent of the company’s total sales” (Henkel 2010).Henkel with its three growth strategic areas of competence are already occupying a leadingposition in both mature markets and growth regions and they have a strong confidence ofgenerating a profitable growth in the future. Page 47 of 55

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