Saturday, April 16, 2005


Oligopoly brief: Procter & Gamble

The upcoming acquisition of Gillette will push Procter & Gamble into the #1 spot in consumer products worldwide, ahead of Unilever. The Gillette acquisition is just another step in P &G's very long history to expanding from its base, mostly with packaged goods that go to supermarkets and large drug chains.

The company now has 12 "billion dollar brands", more than any other company by far. These are Pampers (disposable diapers), Tide and Ariel (detergent), Always (feminine protection), Pantene (Shampoo), Crest (toothpaste), Charmin (toilet tissue), Bounty (paper towels), Folgers (coffee), Pringles (snacks), Iams (dog food), and Downy (fabric softener). Needless to say, these brands are all #1 or $2 in their categories. In addition, Procter & Gamble has a number of subsidiary brands.

Founded in 1837 in the then frontier town of Cincinnati, Procter & Gamble started life as a soap and candle company. In 1879, the company had a major success with its Ivory brand bar soap. In the early 20th century the company expanded into food products and chemicals. The company was a leading in fair labor practices, direct sales to retailers, and market research. It was the discoverer of detergent in the 1930s, and was the first to market disposable diapers in a big way.

The company grew extensively through acquisitions through the second half of the 20th century, gaining such major brands as Folgers, Max Factor, Tampax, Old Spice, Noxzema, Pantene, Oil of Olay, among others. It expanded steadily worldwide, buying up German and Japanese care products companies. It went into pharmaceuticals. It also unloaded some brands, most notably Jif (peanut butter), Sunny Delight (beverage), and Crisco (shortening), and an unfortunate experience with its much-hyped Olestra, a low-fat shortening that never caught on.

In the 21st century, Procter & Gamble has kept up the pace. In 2001, it acquired Clairol products from Bristol-Myers Squibb and in 2003 Wella hair care products by buying that German company. The Gillette acquisition will put P&G into a dominant position in both men's and women's toiletries.

Nevertheless, P & G faces problems with future growth. It is being squeezed by large retail chains like Wal-Mart and the big drug store firms. For example, in-store brands are competing better than ever before. At least in the US and Europe, the industries it is in are not expanding. Its pharmaceutical and foods divisions are too small to gain an advantage from P&G marketing skills.


Procter & Gamble Brands (does not include Gillette brands)

Area Product Type Brands
Personal care Deodorant Old Spice, Secret, Sure
  Cologne/fragrances Giorigio, Helmut Lang, Hugo Boss, Old Spice, Selva de Alfazema (LA), Senior (LA)
  Cosmetics Cover Girl, Max Factor
  Feminine protection Aldays, Always, Ela (LA), Lines, Tampax, Whisper
  Oral care Ax (E), Blend-a-dent (E), Blend-a-ment (E) , Blendex (E), Crest, Fixodent, Gleem, Glide, Ipana, Scope
  Hair care Aussie, Clairol, Daily Defense, Head & Shoulders, Herbal Essences, Infusium 23, Inner Science, Pantene, Pert, Physique, Vidal Sassoon
  Hair color A Touch of Sun, Ascend(A), Balsam Color, Clairol, Miss Clairol, Frost & Tip, Hairpainting, Hydrience, Lasting Color, Loving Care, Men's Choice, Natural Instincts, Nice 'n Easy, Nuances, Rejoice (E), Rejoy (E), Textures & Tones, Ultress, XTremeFX
  Soap and Skin Care Camay, Excurso (LA), Ivory, Noxzema, Ohm, Olay, Safeguard. SK-II
Household Dishwashing Cascade, Cierto (LA), Dawn, Fairy (E), Ivory, Joy, Magistral (LA), Salvo, Yes (LA)
  Cleansers Lavan San (LA), Mr. Clean, Mr. Proper (E), Maestro Limpio (LA), Pop (LA)
  Paper products Bess (E), Bounty, Charmin, Puffs
  Miscellaneous Swiffer
  Fabric Care Ace [E], Ariel, Bold, Bonux (E), Bounce, Cheer, Dash (E), Daz (E), Downy, Dreft, Dryel, Era, Febreze, Gain, Ivory, Lenor (E), MAgia Blanca (L), Myth (E), Rindex(LA), Tide, Wash & Go (E)
Health and wellness Prescription drugs Actonel (osteoporosis), Asacol (colitis), Dentrium (spaciticity), Didronel (Paget's disease), Macroobid (Ctysitis), Macrodantion (Antibiotic)
  Over-the-counter products Metanucil (constipation), Nyquil (colds), Pepto-Bismol (antacid), Prilosec (antacid), Sinex (nasal cxongestion), Vicks (coughs)
  Incontenence aids Cerina (E), Linidor (E)
  Water purification Pur
  Other health Therma-care (heat wraps)
Baby care   Baby Wipes, Hipoglos (lotion, LA), Luvs (diapers), Pampers (diapers)
Food   Folgers (coffee), Millstone (coffee), Pringles (snacks), Torengos (snacks)
Pet care   Eukambia (dog and cat food), Iams (dog food)

E=Europe, LA= LAtin America, A = Asia


4:35:00 PM    
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