Business Analysis of P&G

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of P&G

Business Overview

The Procter & Gamble Company provides branded consumer packaged goods to consumers in the United States, Canada, Puerto Rico, Europe, the Asia Pacific, Greater China, Latin America, India, the Middle East, and Africa. The company's Beauty segment offers hair care products, including conditioners, shampoos, styling aids, and treatments; and skin and personal care products, such as antiperspirant and deodorant, personal cleansing, and skin care products. It markets its products under Head & Shoulders, Pantene, Rejoice, Olay, Old Spice, Safeguard, and SK-II brands. The company's Grooming segment provides shave care products comprising female and male blades and razors, pre- and post-shave products, and other shave care products; and appliances that include electric razors and epilators under the Braun, Fusion, Gillette, Mach3, Prestobarba, and Venus brands. Its Health Care segment offers toothbrushes, toothpastes, and other oral care products; and gastrointestinal, rapid diagnostics, respiratory, vitamin/mineral/supplement, and other personal health care products under the Crest, Oral-B, Prilosec, and Vicks brands. The company's Fabric & Home Care segment provides fabric enhancers, laundry additives, and laundry detergents; and air care, dish care, P&G professional, and surface care products under the Ariel, Downy, Gain, Tide, Cascade, Dawn, Febreze, Mr. Clean, and Swiffer brands. Its Baby, Feminine & Family Care segment offers baby wipes, diapers, and pants; adult incontinence and feminine care products; and paper towels, tissues, and toilet paper under the Luvs, Pampers, Always, Tampax, Bounty, and Charmin brands. The company sells its products through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores, and pharmacies. The Procter & Gamble Company was founded in 1837 and is based in Cincinnati, Ohio.

P&G

P&G


R&P Rank: 37
Sector: Consumer Goods
Industry:Personal Goods
H.Q Location:Ohio
Website: www.pg.com
Company Address:
ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Ph:513-983-1100

Business Analysis of P&G

The Consumer Goods Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how P&G compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by P&G to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of P&G with an interactive chart.

  1. Revenue Growth: P&G reported a revenue growth of -7.7% year-on-year during 2016. Personal Goods Industry grew at -0.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, P&G spent 50.4% of its total revenues on COGS. Personal Goods industry average (COGS share of revenue) in the same period was 50.6%
  3. R&D share of Revenues: P&G R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, P&G spent 29.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Personal Goods industry average SG&A spending in the same period was 33.7%
  5. Inventory share of Revenues: As a percentage of revenue, P&G spent 7.2% of its total revenues on Inventories. Personal Goods industry average Inventory spending in the same period was 12.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, P&G invested 14.3% of its total revenues on Accounts Payable (A/P) Personal Goods industry average Accounts Payable investment in the same period was 10.2%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, P&G invested 6.7% of its total revenues on Accounts Receivable (A/R). Personal Goods industry average Accounts Receivable investment in the same period was 9.5%
  8. PP&E share of Revenues: As a percentage of revenue, P&G invested 29.7% of its total revenues on Property, Plants, and Equipments (PP&E). Personal Goods industry average PPE investment in the same period was 19.5%
  9. Intangibles share of Revenues: As a percentage of revenue, P&G invested 105.5% of its total revenues on Intangibles. Personal Goods industry average Intangibles investment in the same period was 45.5%
  10. Net Margins: P&G Net Margins in the year 2016 were 16.1%. Personal Goods industry average Net Margins in the same period were 10.5%

Sector and Industry Association of P&G

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

P&G is associated with Consumer Goods Sector and Personal Goods Industry.

Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Tobacco; Toys and Games. The definitions for each of the industries is as follows:

  • Beverages industry consists of: Brewing Companies - manufacturers of cider or malt products such as beer, ale and stout; Distillers and Vintners Companies - blenders and shippers of wine and spirits such as whisky, brandy, rum, gin or liqueurs; and Soft Drinks Companies - manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
  • Personal Goods industry includes: Clothing & Accessories Companies - manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies - manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies - makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
  • Food Products industry includes: Farming & Fishing companies - companies that grow crops or raise livestock, operate sherries or own non-tobacco plantation; Food Products Companies - food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
  • Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
  • Household Goods & Home Construction industry includes companies that offer: Durable Household Products - Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products - Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings - Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction - constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
  • Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
  • Tobacco industry includes Manufacturers and distributors of cigarettes, cigars and other tobacco products. It also includes tobacco plantations.
  • Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.

Industry Ranking of P&G

With $65.3 billion revenues, P&G ranked number 1 of all the companies in the US Personal Goods industry. There were a total of 52 public companies in the US Personal Goods industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Personal Goods industry by revenues during 2016 were:

  1. P&G ($65.3 billion)
  2. Nike ($32.4 billion)
  3. Kimberly Clark ($18.2 billion)
  4. Colgate Palmolive ($15.2 billion)
  5. VF ($12 billion)
  6. Estee Lauder ($11.3 billion)
  7. PVH ($8 billion)
  8. Foot Locker ($7.4 billion)
  9. Ralph Lauren ($7.4 billion)
  10. Signet Jewelers ($6.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of P&Gand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of procter-gamble

Nike (NKE) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Nike Inc with $32 billion revenues in the year 2016 was the number 2 Personal Goods company. Read this report to know the top competitors of Nike and identify growth and cost optimization opportunities of Nike

Kimberly Clark (KMB) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Kimberly Clark Corp with $18 billion revenues in the year 2016 was the number 3 Personal Goods company. Read this report to know the top competitors of Kimberly Clark and identify growth and cost optimization opportunities of Kimberly Clark

Colgate Palmolive (CL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Colgate Palmolive Co with $15 billion revenues in the year 2016 was the number 4 Personal Goods company. Read this report to know the top competitors of Colgate Palmolive and identify growth and cost optimization opportunities of Colgate Palmolive

VF (VFC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

V F Corp with $12 billion revenues in the year 2016 was the number 5 Personal Goods company. Read this report to know the top competitors of VF and identify growth and cost optimization opportunities of VF

Estee Lauder (EL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Estee Lauder Companies Inc with $11 billion revenues in the year 2016 was the number 6 Personal Goods company. Read this report to know the top competitors of Estee Lauder and identify growth and cost optimization opportunities of Estee Lauder

PVH (PVH) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PVH Corp. with $8 billion revenues in the year 2016 was the number 7 Personal Goods company. Read this report to know the top competitors of PVH and identify growth and cost optimization opportunities of PVH

Revenues Analysis

P&G (PG) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Procter & Gamble Co (PG) from 2012 to 2016. P&G generated a total of $65.3 billion revenues during 2016. P&G reported a revenue growth of -7.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

P&G (PG) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Procter & Gamble Co (PG) from 2002 to 2016. P&G generated a total of $65.3 billion revenues during 2016. P&G reported a revenue growth of -7.7% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in June.

P&G (PG) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Procter & Gamble Co (PG) revenue growth with Personal Goods industry growth during the last five years from 2012 to 2016. P&G reported a revenue growth of -7.7% year-over-year during 2016. The Personal Goods industry growth was -0.4% year-over-year during 2016. P&G growth was slower than the industry during 2016.