Group Members:Catina Claassen, Tyron Donte Javis, Bryant Filter, Jennifer Gaddy and Harvey Gibson

Introduction: An industry which envelops

practically every item an individual can purchase

Encompasses mainly areas of toiletries and cosmetics, appliances, beverages and food, and other household items

Divided into durable and non-durable products

Staple and less discretionary products

Contribution: Accounts for more than two-thirds of the total volume of

trade in the world economy. Plays an important role in the growth and development of

the global economy. Source of a significant portion of the gross domestic

product (GDP) of many countries. Acts as a driver for other industries, such as advertising

and retail.Source: globalEDGE. Consumer Products: Background.

Trends Modern technology for growth and expansion Utilization of interactive qualities of internet for:

Customer Relationship Management (CRM) Radio-Frequency Identification (RFID)

Mergers, acquisitions and alliances to increase the competitive advantage

American and European markets becoming increasing competitive

Manufacturers turning towards emerging markets There are risks involved with expanding internationally

Key players: Johnson & Johnson, Colgate-Palmolive, Eastman Kodak,

Whirlpool, Procter & Gamble, Nike, Gillette and Unilever.

Business sector: Household and personal care products.

Revenue: $83,503 million Profits: $11.13 Assets: $144.4 Market Value: $203.67 Merged with Gillette in 2005. Focuses on emerging markets

for growth and expansion.Source: PG 2008 Annual Report

Major segments: Oral, Personal, Home Care Products; and Pet Nutrition Products.

Net Sales: 3.7 billion Operating Profits: $ 0.8 billion

for FY2008 Assets: $10.11 Market Value: $38.79 Has a great business model and

better fundamentals than most of its competitors

Source: Colgate-Palmolive FY 2008

Business sector: Foods and Home & Personal Care.

Total Revenue: $58,085.9 M Revenue increase: 1.4% Operating Profit: $7,189.5

million in FY 2007(3% decrease).

0.5% profit margin decrease in 2007 due to higher raw materials prices and charges for restructuring.

Source: UL 2007 Annual Report

Company Revenue in $M

Net income $M

Operating margin %

R&D spending $M

R&D as % of total revenue

% revenue growth from 2006

P&G 83,503 12,075 20.46 2,226 2.67 9.00

Unilever 58,508 6,022 13.05 1,264 2.16 1.37

Colgate 13,790 1,737 19.24 247 1.79 12.68

Macroeconomic dynamics:◦ A flat and declining retail environment◦ Changing consumer behavior◦ Global economic recession

Key strategic imperatives:• Delivering Innovation Driven By Consumer Insight• Driving Profitable Growth Through Improved Value Chain Collaboration• Operating Responsibly and Profitably With Full Supply Chain Visibility• Building Brand Awareness and Loyalty

Grand strategies: Low Cost Leadership◦ Concentrated Growth and diversification◦ Market DevelopmentDifferentiation ◦ Product Development◦ Innovation

Colgate 2007 Annual Report Colgate Palmolive: http://www.colgate.com/nonflash.html Ezine Articles: A Financial Analysis of Colgate-Palmolive globalEDGE. Consumer Products: Background globalEDGE. Consumer products Corporations PG 2008 Annual Report Procter and Gamble: http://www.pg.com/main.jhtml UL 2007 Annual Report Unilever Homepage: http://www.unilever.com/home