The Merger Between Gillette and Procter and Gamble Essay

The Merger Between Gillette and Procter and Gamble Essay

Length: 2264 words (6.5 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

"This merger is going to create the greatest consumer-products company
in the world … It's a dream deal." Warren Buffett

"This was two companies with great products, strong management and
terrific business models coming together to create arguably the best
consumer product company in the world" Michael Barbaro, Washington
Post[1]

Introduction:

The merger between Gillette and Procter and Gamble is indeed a
strategic move on the part of both parties. It is a corporate
marriage creating a union between male and female product lines; a
contract valued at more than $55 billion dollars. [2] Commanding
virtually the entire market, Gillette has been the world leader in the
production of razors and other shaving products. In 2004, their
global share of the razor market was 71.5%, nearly five times that of
their nearest competitor. However, Gillette’s depth runs much deeper
than simply shaving accessories; oral care products, cosmetics, and
domestic appliances are a significant party of their sales arsenal.
With the acquisition of Duracell Batteries in 1995, Gillette then
became a major sales force in the battery market. In fiscal year
2004, their net sales were $10.47 million, a 13% increase from the
2003 figure.

Meanwhile, Procter and Gamble is the biggest manufacturer of domestic
products, with over 270 brands that are categorized in 6 different
marketing sectors: laundry and cleaning (detergents), paper goods
(toilet paper), beauty care (cosmetics, shampoos), food and beverages
(coffee and snacks), feminine care (personal hygiene products) and
healthcare (toothpaste, medicine). Like Gillette, P&G also exceeded
their 2004 financial expectations exceeding their sales target by
19.6%.[3] Both companies share a culture of innovation and a
history of cooperation and is a marriage that will most likely lead to
prosperous financial returns in the years to come.

Background:

The history of the Gillette Company is incredibly interesting, dating
back to 1894 when it founder, King Camp Gillette, invented the safety
razor. Gillette developed the idea of a disposable razor while
working as a salesman. In his travels and interaction with males of
all walks of life, Gillette stumbled upon the idea of the ‘disposable
safety razor’ that men shaving on their own would find much more
convenient and user friendly. Before the adve...


... middle of paper ...


...tivity Drove Deal,” The
Washington Post, January 29, 2005.

[2] Editor, “The Latest Mergers: Why some will fly and others
won’t,” Knowledge Wharton, March 30, 2005 [online]:
http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_March_1/ai_n11835282

[3] P&G 2004 proxy report:
http://www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf

[4] “William Nickerson: Inventor of the Week,”
http://web.mit.edu/invent/iow/gillette.html

[5] ICFAI Knowledge center

[6] Ibid.

[7] www.pg.com/company/who_we_are/ourhistory.jhtm

[8] Ibid.

[9] www.mind-advertising.com/us/pg_us.htm

[10] “The Rise of the Superbrands,” The Economist, Feb5th, 205, p.63.

[11] http://www.agribusinessaccountability.org/pdfs/140_Procter%20Gamble.pdf

[12] http://www.fumento.com/bomis21.html “Procter & Gamble's Non-
Neither Satan Nor (Sigh) Savior’.”

[13] Environmental Research Foundation, http://www.ejnet.org/rachel/rhwn349.htm

[14] http://www.pandgkills.com/shareholder.html

[15] http://knowledge.wharton.upenn.edu/

[16] Batchelor, Charles, “Dealmakers eye repatriated funds,” The
Financial Times, Tuesday, March 29th, 19.

[17] Ibid.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Procter & Gamble Vs. Gillette Essay

- Proctor & Gamble 1. What is Proctor & Gamble’s corporate strategy. Do the company’s businesses seem to be related or unrelated. Are Gillette’s businesses closely related to P&G’s businesses. How will a merger with Gillette provide a 1 + 1 = 3 effect for P&G. Proctor and Gamble recently completed large restructuring, put new management in place, and cut capital spending needs. Since then they are now focused on increasing top and bottom line results after shifting business mix toward higher margin, less capital-intensive health and beauty care sectors and also gearing towards developing markets and lower-income consumers....   [tags: Business Strategy]

Term Papers
1679 words (4.8 pages)

Essay on Analysis Of John Gamble And William Procter

- COMPANY DESCRIPTION In 1837, James Gamble and William Procter, formerly of the UK, started a family-run soap and candle company after they married sisters. The company they formed so long ago grew to be an American multinational consumer goods company. This company is Procter & Gamble Co, better known as P&G.Its headquarters is located in Downtown Cincinnati, Ohio. Although it started out as a candle and soap manufacturer, today it offers a wide range of products in fabric and home care, health and grooming, beauty and baby, feminine and family care....   [tags: Toothpaste, Procter & Gamble, Marketing]

Term Papers
1531 words (4.4 pages)

Procter & Gamble : Case Study Essay

- Procter & Gamble has many household brands that range from detergent to cologne, with one goal in mind – improving the lives of the world’s customers. The company is in business to provide branded products of superior, consistent quality for many parts of your life where consistency and value are important – from razors to tampons –creating a relationship with their customers in the process. With a market capitalization of over $190 billion, Procter & Gamble operates in countries around the world and owns a range of strong brands such as Head & Shoulders, Olay, Pantene, Gillette, Crest, Dawn, Tide and Febreze....   [tags: Procter & Gamble, Brand, Brand management, Better]

Term Papers
929 words (2.7 pages)

Business Analysis : Procter & Gamble Essay

- I have chosen my website based on my future profession which deals with wholesale, imports, and exports on a national and international level. The website I have chosen is http://us.pg.com, or Procter & Gamble’s United States website. People are very familiar with Procter & Gamble’s brands, just not with the company itself. P&G’s more well known brands, to name a few, include Swiffer, Bounty, Charmin, Dawn, Febreeze, Gillette, Head & Shoulders, Old Spice, and Tide. P&G’s website contains many useful sections that a customer will find useful when looking more into the company that makes his or her products of choice....   [tags: Color, Green, Procter & Gamble, Color wheel]

Term Papers
1179 words (3.4 pages)

Swot Analysis Of Procter And Gamble Essay

- Introduction Through innovation and consistency, Procter and Gamble (P&G) has created some of the most dominant brands across several markets. They have been fully committed to their mission of improving lives in small, but meaningful ways for several years, and have been rewarded for their excellence with loyal customers and high brand recognition. No other company has been able to produce as many top quality products as P&G with as high a success rate. Therefore, investing in Procter and Gamble is a sound decision with potential for great return....   [tags: Procter & Gamble, Diaper, Brand, Pampers]

Term Papers
1198 words (3.4 pages)

The Market Competition Of Unilever And Gamble Essay

- The existing and potential market competition would be companies such as Unilever, who make such soaps as Dove and Axe. Another company that would be competition is Proctor and Gamble, who make such soaps as Olay and Old Spice. Other big name competitors include L’Oreeal and Johnson and Johnson. However, these well-known companies would not be my only competition. Other people who make handcrafted soap as a hobby, or who try to sell it from their homes would be considered competition as well. Unilever has been around since the 1890s....   [tags: Procter & Gamble, Marketing]

Term Papers
1480 words (4.2 pages)

Essay on The Effective Video Marketing Of Procter And Gamble

- Procter and Gamble has produced one of the most successful and award winning advertising campaigns in history. The effective video marketing of “Thank You Mom” created powerful emotions in viewers, which resulted in increased market share for the organization. Procter and Gamble research revealed that women, once become mothers, had increased appreciation for their own mothers, specifically 48% with appreciation for empathy and 52% with appreciation for her emotional strength (Procter and Gamble 2016 Fiscal Highlights)....   [tags: Olympic Games, Summer Olympic Games, Marketing]

Term Papers
1099 words (3.1 pages)

Procter & Gamble Essay

- Procurement: Recently, Procter & Gamble has made a number of important decisions regarding how they handle procurement and purchasing for different raw materials and components. One very important decision that has radically changed the P&G organization is their implementation of a Supplier Environmental Sustainability Scorecard in mid 2010. (Greenconomist) This Sustainability Scorecard was a precursor to a larger sustainability initiative in late 2010, and had the goal of encouraging suppliers to improve across the board....   [tags: Business Analysis ]

Term Papers
1355 words (3.9 pages)

Essay on Proctor & Gamble

- Proctor & Gamble The alarm sounds bright and early at 7:30 am, you fall out of bed, stumble down the hall Crest toothpaste in hand, brush your teeth, grab your school bag and your off to class. Fast forward to 12:00 pm—lunch. You get a scrumptious Italian hoagie—hold the mayo, extra oil—from Joegies and a can of Sour Cream and Onion Pringles. Later that night you notice a nice big oil stain on your Abercrombie & Fitch shirt from your delicious hoagie you had for lunch—time to do the laundry....   [tags: Proctor Gamble Business Papers]

Term Papers
2002 words (5.7 pages)

Essay on Analysis of Procter & Gamble

- Founded in 1807, Procter & Gamble is a world renowned company because of their quality brands and their long standing rapport with their consumers. William Procter and James Gamble were two different individuals who met by chance through their marriage of two sisters in Cincinnati Ohio. William Procter was a candle maker while James Gamble was a soap maker. They were prompted into a business partnership by their father-in-law and thus in 1837, Procter & Gamble was born. Despite the economic hardships is the United States in 1837 Procter & Gamble had their eyes set on the future....   [tags: SWOT Analysis P&G]

Term Papers
1447 words (4.1 pages)