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Related Diversification - Procter & Gamble
Haircare Pantene, Head & Shoulders, Clairol
Household cleaning/care Flash, Febreze, Fairy
Laundry Daz, Ariel, Fairy, Bounce
Paper Bounty, Pampers, Allways
Beauty Oil of Olay, Max Factor
Beverages Sunny Delight
Snacks Pringles Petfood Iams
Related Diversification through acquisition and internal start-ups
Fits/Synergies
Same wholesale distribution
Common retail settings & shoppers
Advertised & promoted the same way
Unrelated diversification - Virgin
Virgin Travel (& Virgin Holidays)
Virgin Retail (Music & Entertainment)
Virgin Investments (computer products,
promotional blimps, property development)
Virgin Hotels Group (clubs & hotels in UK, Spain
& Virgin Islands)
Virgin Communications (Virgin Interactive
Entertainment, Publishing, Radio, TV)
Diversification
Johnson & Johnson
Consumer - baby products (wipes, shampoos, cotton buds etc);
woundcare (bandaid); feminine hygiene (carefree, stayfree);
reach dental products
Medical - non-prescription drugs (Tylenol, Pepcid AC);
presecription durgs; surgical products; Accuvue contact lenses
Gillette
- Grooming (Mach 3, Venus)
- Oral Care (Oral B, Braun)
- Portable Power (Duracell)
Philip Morris
-Cigarettes (Marlboro, B&H…..)
- Miller Brewing co.
Kraft Foods (Maxwell hse, Birdseye..
Diversification
Diageo *United Distillers and Vintners (UDV)
- Guinness, Baileys, Johnie Walkers,
Hennessey, Moet & Chandon, Pimms, Smirnoff
*Pillsbury - Green Giant, Haagen Dazs, El Paso,
Burger King, Pillsbury
Exiting food business because of lack of fit & poor performance
Walt Disney
Theme Parks, Movie Production, Videos, Children’s apparel,
Toys, TV Broadcasting

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Diversification examples

  • 1. Related Diversification - Procter & Gamble Haircare Pantene, Head & Shoulders, Clairol Household cleaning/care Flash, Febreze, Fairy Laundry Daz, Ariel, Fairy, Bounce Paper Bounty, Pampers, Allways Beauty Oil of Olay, Max Factor Beverages Sunny Delight Snacks Pringles Petfood Iams Related Diversification through acquisition and internal start-ups Fits/Synergies Same wholesale distribution Common retail settings & shoppers Advertised & promoted the same way
  • 2. Unrelated diversification - Virgin Virgin Travel (& Virgin Holidays) Virgin Retail (Music & Entertainment) Virgin Investments (computer products, promotional blimps, property development) Virgin Hotels Group (clubs & hotels in UK, Spain & Virgin Islands) Virgin Communications (Virgin Interactive Entertainment, Publishing, Radio, TV)
  • 3. Diversification Johnson & Johnson Consumer - baby products (wipes, shampoos, cotton buds etc); woundcare (bandaid); feminine hygiene (carefree, stayfree); reach dental products Medical - non-prescription drugs (Tylenol, Pepcid AC); presecription durgs; surgical products; Accuvue contact lenses Gillette - Grooming (Mach 3, Venus) - Oral Care (Oral B, Braun) - Portable Power (Duracell) Philip Morris -Cigarettes (Marlboro, B&H…..) - Miller Brewing co. Kraft Foods (Maxwell hse, Birdseye..
  • 4. Diversification Diageo *United Distillers and Vintners (UDV) - Guinness, Baileys, Johnie Walkers, Hennessey, Moet & Chandon, Pimms, Smirnoff *Pillsbury - Green Giant, Haagen Dazs, El Paso, Burger King, Pillsbury Exiting food business because of lack of fit & poor performance Walt Disney Theme Parks, Movie Production, Videos, Children’s apparel, Toys, TV Broadcasting