Unilever PLC

Unilever failed to acquire GlaxoSmithKline. Now, a Nelson Peltz-led activist fund wants to change things at the conglomerate. What changes might be coming?

The Procter & Gamble Company, or P&G, is the largest household and personal products company in the world. It was established in 1837 by William Procter and James Gamble.

Despite currency headwinds, Estée Lauder’s (EL) worldwide gross profit margin increased to 80.3% in fiscal 2014 from 80.1% in fiscal 2013.

According to the August 31 release by the ISTAT, the EU’s harmonized inflation rate in Italy rose to an impressive 0.50% in August on a YoY (year-over-year) basis.

Business intelligence firm eMarketer estimates that CPG brands spent more than $7.0 billion on digital advertising in 2017, compared with $6.0 billion in 2016.

According to the Tea Association of the USA, the specialty tea segment wholesale value increased to an estimated $1.9 billion in 2014, up 9.8% from 2013.

Colgate’s worldwide gross profit margin fell to 58.5% in 2014 from 58.6% in 2013.

Nonalcoholic beverage companies see tremendous opportunities in the better-for-you product categories.

In January 2016, Coca-Cola announced the acquisition of a minority stake in Chi Limited, Nigeria’s leading dairy, juice, and snacks company.

Colgate’s (CL) Asia segment’s net revenue decreased 2.3% to $0.6 billion in 1Q16.

Since December 2015, FX (foreign exchange) headwinds have increased $0.3 billion after tax. That includes devaluations in Argentina, Russia, and Mexico.

Colgate-Palmolive’s global market share is ~45%. It is the leading toothpaste compared to Oral-B and Close-up, especially in emerging markets like India.

Estée Lauder’s (EL) haircare segment’s revenue increased 8.7% in reported terms and 14% on a constant-currency basis to $0.15 billion in fiscal 2Q16.

P&G alleges that Dollar Shave Club is violating Gillette’s intellectual property by selling its razors.

Clorox (CLX) has a strong research and development (or R&D) team and devotes significant resources and attention to product development.

Clorox’s Lifestyle segment’s revenue increased 1.5% to $1 billion in fiscal 2015 compared to $0.9 billion in fiscal 2014. The increase was primarily due to higher shipments in natural personal care.

Clorox’s (CLX) SG&A expenses increased 5.3% in fiscal 2015 compared to fiscal 2014. The increase was primarily due to increased advertising and marketing programs.

Coty’s biggest licensed brand in the global mass skin and beauty care segment, Adidas maintains a significant presence in deodorants. It faces stiff global competition from Unilever’s Axe deodorants.

P&G’s Gillette, Fusion, and Venus are its largest male and female grooming brands. It has continued to grow with ProGlide and FlexBall in the US.

In order to attract consumers in retail stores, Colgate has increased its commercial investment in advertising, promotions, trade spending, and creative brand building.

Colgate faces stiff competition from large international and local players worldwide. However, the company aims to have a disciplined approach to pricing management.

Estée Lauder’s Aveda brand manufactures innovative plant-based hair care products. This helps to attract customers and adds to Estée Lauder’s brand value.

Colgate has the highest brand penetration in the world. At a brand penetration rate of 64.6%, Colgate reaches more than half the households in the world, more than even Coca-Cola.

Colgate estimated its share of the global toothpaste market and the global manual toothbrush market at 44.4% and 33.4%, respectively, in 2014.

In North America, innovations in the Colgate Optic White Franchise increased market share of toothpaste from 5.3% to 5.6% in 2014.

As the consumer staples (XLP) sector is highly competitive, Colgate faces local as well as global competition from various local and international players worldwide.

Colgate-Palmolive is a multinational consumer staples (XLP) firm, focused on the production, distribution, and provision of household products.

Procter & Gamble continues to look at large developing markets where it thinks it can win enough market share to take a leadership position.

Procter & Gamble aims to harness opportunities in developing countries like China, India, and Russia to enhance its market share as well as stabilize its top-line growth.

Procter & Gamble’s Beauty segment includes products such as deodorants, cosmetics, personal cleansing, skin care, and hair care.

In the six months ending December 31, 2014, P&G’s net sales stood at $40.3 billion. Of this, 9.6% came from the Grooming segment.

In 2001, P&G established an innovation strategy program called “Connect and Develop.” The program has allowed the company to better understand consumer behaviour.

Last August, P&G announced it was working on exit options for ~100 brands to improve sales and profitability. All of the brands contributing little to growth will be disposed of.

The emerging markets of Asia, Eastern Europe, and Latin America offer ample growth opportunities for the consumer staples sector.

P&G is one of the world’s biggest advertisers. The company has defined many of the marketing strategies used globally.

The Health Care segment is P&G’s smallest segment. The segment’s net revenue for the year ending June 30, 2014, was $7.8 billion, or 9.5% of the company’s total net revenue.

P&G’s Fabric Care and Home Care segment’s annual revenue was reported to be $26.1 billion in fiscal 2014. It contributed 31.7% of the company’s total net sales.

Of its five business segments, the majority of P&G’s sales and earnings are derived from its Fabric Care and Home Care business.

In examining Porter’s five forces at work at P&G, we find that three competitive forces are horizontal in nature and two are vertical.

Though the per capita consumption of tea in the US is low compared to other countries, the growth in tea consumption in recent years has been impressive.

According to Kantar World Panel’s Brand Footprint 2015 report, Procter & Gamble’s (PG) fabric softener Downy was the fastest-growing brand in 2014.