Unilever Versus P&G

In: Business and Management

Submitted By anagavalli1
Words 1685
Pages 7
As the two leading consumer goods companies in the world, both P&G and Unilever have been extremely successful in building highly recognized brands that meet consumer needs and drive sustainable value to its shareholders. Currently, P&G operates in two unique segments: Beauty/Grooming and Household Care. It has completely exited the foods segment with the latest divestiture of Pringles. In comparison, Unilever operates in three different segments: Personal Care, Foods, and Homecare. In the past five years, Unilever has re-aligned its foods portfolio (with the divestitures of Lawry’s & Bertolli) while making major acquisitions in the Personal Care space (TIGI & Alberto Culver). For both companies, growth is the name of the game. P&G has committed to growing organics sales 1%-2% faster than the market while Unilever set a goal to double the size of its business in 10 years while reducing its environmental impact. To achieve their ambitions, both companies have articulated their corporate strategy within their annual reports (P&G Shareholder Report 2011, Unilever 2010 Annual Report). Today P&G’s strategy revolves around market development through innovation. Their process starts at identifying a consumer need and developing a product that solves the problem. Once the product and design are finalized, they leverage their complimentary assets such as marketing and distribution to launch. (Anthony, Video) Although a CPG’s value chain is more complicated and involved, P&G is extremely efficient from points A to Z. These synergies allow P&G to expand into related industries with relative ease. Historically, P&G grew to be the number one CPG firm through horizontal expansion. They started off selling bar soap (i.e. Ivory) and slowly expanded into Tide after WW2. This started off an acquisition spree in the 1950s where they horizontally diversified into many different…...

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